Updated December 24, 2009
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Program No. 707
“Schiller Conference,
Rebuilding Civilization”
The outcome of the presently
accelerating world-wide crisis is not yet decided; but the alternatives can and
must be politically clear. It is certain that the kind of global
monetary-economic system which has evolved in the aftermath of the
crisis-events of 1968, will not survive the presently onrushing calamities.
On Sept. 15-16, 2007, the Schiller
Institute held an amazing two-day conference in
The agenda featured prominent
speakers from around the world, including Russian scholars and political
leaders; an American consulting engineer; an Italian economist; and an American
civil rights pioneer. The conference concluded with a report on the work of the
LaRouche Youth Movement, with presentations by leading LYM members from around
the world.
The LaRouche Connection began its
coverage of this historic conference (Program 704) with the Schiller
Institute’s founder and chairwoman Helga Zepp-LaRouche’s welcoming
remarks and introduction of the keynote speaker, her husband, Lyndon LaRouche,
who spoke on “This Present World Financial Crisis: Credit vs. Monetarist
Usury.”
This week’s edition features
the following presentations, from Panel IV, which convened on Sept. 16:
·
Amelia Boynton Robinson, 96 year
old Vice Chairwoman of the Schiller Institute, and heroine of the
·
Jacque Cheminade, leader of
Solidarité et Progrês, the
LaRouche movement in
·
Daniel Buchman, a leader of the LaRouche
Youth Movement in
·
Lyndon LaRouche: “Liberate Man from the
Shackles on the Mind: On the Difference Between Man and the Animals.”
[All presentations have been
somewhat abridged in order to comply with Public Access time limitations. For a
full transcript of the entire conference, see EIR magazine, Vol. 34, No.
38, Sept. 28, 2007. pp. 4-51; No. 39, Oct. 5, pp. 4-31; No. 40, Oct. 12, pp.
48-71; No. 41, Oct. 19, pp. 58-71. Or, visit www.schillerinstitute.com, and
click on “Eurasian Land-Bridge Conference: Transcripts & Audio
Files.”]
Release Date: Jan. 7, 2008
Program No. 708
“Six Months Into the
Greatest Financial Crash Ever,” Pt. 1
January 17 saw three events which clearly define the battle lines
in a showdown over how to respond to the accelerating disintegration of the
On that afternoon, Federal Reserve Board Chairman Ben Bernanke
appeared before the House of Representatives Budget Committee, and joined the
chorus calling for a “fiscal and monetary stimulus,” to try to
inject some life into an already moribund system.
On that same afternoon, Lyndon
LaRouche addressed an international webcast from
Two of those measures were the subject of the third Jan. 17 event,
which took place in Copenhagen, Denmark, where Schiller Institute Chairman Tom Gillesberg presented testimony to a parliamentary
committee, urging adoption of Mr. LaRouche’s New Bretton Woods proposal,
and informed committee members of the groundswell of support rising in the U.S.
for Mr. LaRouche’s Homeowners and Bank Protection Act.
The choice before us is clear: Continue the plunge into the worst
human catastrophe since the 14th Century New Dark Age, or adopt
LaRouche’s policies now!
This edition of The LaRouche
Connection features Mr. LaRouche’s opening remarks to the webcast.
The event was moderated by LaRouche’s national spokeswoman, Debra Freeman.
[For a complete transcript of the webcast, including the discussion
session, see EIR magazine, Vol. 35, No. 4, Jan. 25, 2008. Pp.
4-29. Or, visit www.larouchepub.com, click on
“LaRouche’s Writings,” and search for the January 17 Webcast
listing. ]
Release Date: Feb. 4, 2008
Program No. 709
“Six Months Into the
Greatest Financial Crash Ever,” Pt.2
January 17 saw three events which clearly define the battle lines
in a showdown over how to respond to the accelerating disintegration of the
On that afternoon, Federal Reserve Board Chairman Ben Bernanke
appeared before the House of Representatives Budget Committee, and joined the
chorus calling for a “fiscal and monetary stimulus,” to try to
inject some life into an already moribund system.
On that same afternoon, Lyndon
LaRouche addressed an international webcast from
Two of those measures were the subject of the third Jan. 17 event,
which took place in Copenhagen, Denmark, where Schiller Institute Chairman Tom Gillesberg presented testimony to a parliamentary
committee, urging adoption of Mr. LaRouche’s New Bretton Woods proposal,
and informed committee members of the groundswell of support rising in the U.S.
for Mr. LaRouche’s Homeowners and Bank Protection Act (HBPA).
This edition of The LaRouche
Connection features first the conclusion of Mr. LaRouche’s opening
remarks to the Webcast, in which he discusses his famous “Triple
Curve,” first presented in 2000, showing the U.S. economy reaching a
critical point of instability; the fact that the human mind is not digital,
that creativity does not exist in any digital system; that the time has come
when the technological and scientific requirements of maintaining humanity are
such that humanity can no longer exist without committing ourselves to the
entirety of the human race—a new, global
“Peace of Westphalia.” The remainder of the program is a
portion from the discussion session. The entire event was moderated by LaRouche’s
national spokeswoman, Debra Freeman.
From the Webcast Discussion
Session:
Homeowners
and Bank Protection Act
From State Rep. Joe Almeda of
Stimulus
Package or Sex Clinic?
From someone previously associated with the Hamilton Group, and who
is now with the Congressional Budget Office: “Given the nature of this
crisis, there are two potential approaches: One is President Lyndon
Johnson’s, and I believe Hillary Clinton’s misnamed economic
stimulus proposal falls into this one (which I support). The other is the one
President John Kennedy took with his Moon Mission. Can one lead to the other?
Do you think we still have the capability to launch a JFK-style approach?
Infrastructure
Plus Stimulation?
From someone with responsibility for one of the Congressional
committees that deals with economic issues: “While infrastructure
spending is among the initiatives under consideration in Congress, there are
concerns that legislation providing additional spending through infrastructural
development would simply take too long to enter the economy. So, from this standpoint,
do you think that ‘stimulus legislation’ is appropriate, and should
additional investment in infrastructure be included in any stimulus package, or
should it be separate?”
A Plausible
Pitch?
From the Hispanic Caucus on Capitol Hill: “What would you
think about dividing your legislation into two pieces? I think we’ve got
the votes for a moratorium on foreclosures. What if we were to put that first,
and then bring up separately, the bank protection? And, if we were to do it
that way, how much time would we have, after a moratorium on foreclosures, to
deal with the banks?”
After the
HBPA: Reactivate Industry
From someone involved with a national campaign: “You’ve built into the HBPA a
firewall to protect what I assume you mean to be the chartered banks? Why do
you call it a firewall? How would it function? It won’t really stop the
collapse. I don’t understand how you could separate banks’ exposure
to hedge funds and vice versa. Why does Wall Street have such a violent
reaction to your HBPA? From the standpoint of domestic policy, how would you
immediately follow up on the HBPA?
[For a complete transcript of the webcast, including the discussion
session, see EIR magazine, Vol. 35, No. 4, Jan. 25, 2008. Pp.
4-29. Or, visit www.larouchepub.com, click on
“LaRouche’s Writings,” and search for the January 17 Webcast
listing.]
Release Date: Feb. 11, 2008
Program No. 710
“Six Months Into the
Greatest Financial Crash Ever,” Pt. 3
January 17 saw three events which clearly define the battle lines
in a showdown over how to respond to the accelerating disintegration of the
On that afternoon, Federal Reserve Board Chairman Ben Bernanke
appeared before the House of Representatives Budget Committee, and joined the
chorus calling for a “fiscal and monetary stimulus,” to try to
inject some life into an already moribund system.
On that same afternoon, Lyndon
LaRouche addressed an international webcast from
Two of those measures were the subject of the third Jan. 17 event,
which took place in Copenhagen, Denmark, where Schiller Institute Chairman Tom Gillesberg presented testimony to a parliamentary
committee, urging adoption of Mr. LaRouche’s New Bretton Woods proposal,
and informed committee members of the groundswell of support rising in the U.S.
for Mr. LaRouche’s Homeowners and Bank Protection Act (HBPA).
The LaRouche
Connection covered this event in three parts. Part I featured the bulk of Mr.
LaRouche’s opening remarks to the webcast. Part II featured his
conclusion and the first five questions from the Discussion session. Part III
features all but the last question, which, unfortunately, had to be omitted for
Public Access time limitations. The entire event was moderated by
LaRouche’s national spokeswoman, Debra
Freeman.
From the Webcast Discussion
Session:
From a
Ted Weill (Chairman of
the Mississippi Reform Party): “If the Venezuelan government can set up oil-cracking
plants to make gasoline for their people, we should be able to do the same
thing. What do you think?”
From John Jeffries, a
machinist in
From Ruby Nelson (
From José Villar, an economist for more than 29 years (in
From a Presidential campaign: “Does Barak Obama know what
he’s doing? Is he a witting player, or just a throw-away?”
From the Freshman Congressional Caucus: “Can we still build
our way out of this crisis, or is it just too late for that? Waiting for a
massive public works program to kick in, just does not seem to be sufficient to
address the problem.”
From Mr. Temba (in
John Bosnitch (consultant, and former Executive
Director of the Serbian Unity Congress): “Were you in the situation of
[For a complete transcript of the webcast, including the discussion
session, see EIR magazine, Vol. 35, No. 4, Jan. 25, 2008. Pp.
4-29. Or, visit www.larouchepub.com, click on
“LaRouche’s Writings,” and search for the January 17 Webcast
listing.]
Release Date: Feb. 24, 2008
Program No. 711
“Averting Doom,”
Pt.1
On March 12, Lyndon LaRouche
conducted an international video webcast from
LaRouche: “First of all, Felix Rohatyn is guilty of something
tantamount to high treason against the
Mr. LaRouche immediately takes his audience back to the FDR
Legacy—to March 1933, the day Franklin Roosevelt entered the White House
as President—the same day he began to dictate the outlines of action
which saved the Untied States from the Great Depression, and prepared the
country for war to defeat British-installed fascism. And how Harry Truman
worked for the ideas of British Prime Minister Winston Churchill, to reverse
Between 1969 and 1981 we saw the take-down of the 1944 Bretton Woods
fixed-exchange-rate system, wrecking the dollar (Aug. 15, 1971); the
destruction of the physical economy, via massive deregulation of the FDR-era
structure of the economy; a halting of nuclear power; and a change in our
culture.
LaRouche: “The time has come, when we’re now at the end
of the rope. You have a great conspiracy, by the same people, on both sides of
the Atlantic: one destroying the Untied States with the fascist Michael
Bloomberg for President campaign; the other in
LaRouche: “This is not necessary. If we go back to our
Constitutional foundations. In order to have a representative form of
government, you must have nations, which are sovereign, which represent the
culture of that people. Not globalization.”
The crisis we face today is a collapse of the World System.
“We are not in a depression; we’re in a general breakdown crisis,
comparable in form to what happened in
Mr. LaRouche urges his listeners to use our nation’s uniquely
Constitutional powers to get things moving again: “Protect the household.
Keep people in their homes and communities. But you can’t save the
homeowners, if you don’t save the banks! You have to save the local
banks—the real ones that take deposits and loan money, and are vehicles
of the Federal government and state governments to conduit funds through them,
for local purposes or state purposes, and thus stimulate the growth of the
economy. In this way you put people back
to work, exactly the way
[For a complete transcript of the webcast, including the discussion
session, see EIR magazine, Vol. 35, No. 12, March 21, 2008. Pp.
4-33. Or, visit www.larouchepub.com, click on
“LaRouche’s Writings,” and search for the March 12 Webcast
listing.]
Release Date: March 28, 2008
Program No. 712
“Averting Doom,”
Pt. 2
On March 12, Lyndon LaRouche
conducted an international video webcast from
At the end of Part One of our coverage of this event, Mr. LaRouche
was urging his listeners to use our nation’s uniquely Constitutional
powers to get the
He then proposes setting up a two-level credit system. Loans for
authorized programs could receive Federal created credit, through the local,
State, and Federal chartered banks at 1-2%. Loans for all other purposes would
carry a floating (higher) rate. In this way, the banks are protected, by
putting them through bankruptcy protection, and so are the people, and local
communities, by keeping folks in their homes.
Also required is an economic driver program, involving large
projects, especially nuclear power, which would “break the world free of
petroleum slavery.”
LaRouche: “What we need is a revolt of the patriots: people
who see what patriotism really means. Are you committed to some practical
benefit for your nation, and the world?”
“We must overcome the stupidity which seems to control most
members of the Congress and many citizens who prefer to be ignorant, because
they like desperation better than solutions, in order to accept these three
simple steps:”
1. Enact the
Homeowners and Bank Protection Act, protecting legitimate banking functions,
and homeowners.
2. Establish a
two-tier credit system: 1-2% for government-authorized credit, letting the
interest rate float, to 7-8-9% for other things. No stimulus package.
3. Bring
together an alliance of the
“Under these conditions, we can mobilize most of the world to
get the Hell out of this thing and come back to a system where human beings can
decently live again.”
From the Discussion Session:
·
From someone associated with writing policy for one of the
Presidential campaigns: “Sen.
Clinton has refined her housing proposal to adopt policies that forcibly reduce
the amounts of money owed by homeowners…. Can this be done without the
establishment of a separate and new Federal institution?”
·
From a Democrat member of the Senate, with close historic ties to
the military: “Vice President Dick Cheney has recently called for an
anti-missile defense system. You are repeatedly identified as the intellectual
author of the Strategic Defense Initiative. Has Cheney finally come around to
your point of view? Or, has your advocacy of an SDI changed?”
·
From a group at the Hamilton Group: “We are grappling with
the issue of economic vs. fiscal stimulus. Please address the question of a
strong dollar. How would you defend the dollar in this framework?”
·
From a member of the Black Congressional Caucus: Do you actually
believe that Barack Obama is a fascist, or is he just being used? Isn’t
it possible that he’s smarter than those who think they’re using
him, and that he’s really using them?”
·
From someone holding statewide office in
·
From someone associated with a Presidential campaign: “Talk a
bit more about what specifically corporativism is, and how it differs from what
we know as the American System.”
·
Composite question (from several sources): “Felix Rohatyn
openly refers to himself as a follower of John Maynard Keynes, but recently
tried to reverse his previous public hostility to Franklin Roosevelt, by saying
he supported the New Deal. There are many ill-informed or lying authorities,
who would insist that FDR and his Bretton Woods system were essentially
Keynesian. Please address this.”
[For a complete transcript of the webcast, including the discussion
session, see EIR magazine, Vol. 35, No. 12, March 21, 2008. Pp.
4-33. Or, visit www.larouchepub.com, click on
“LaRouche’s Writings,” and search for the March 12 Webcast
listing.]
Release Date: April 9, 2008
Program No. 713
“Interview: M.J. Mapuranga, Zimbabwe
Ambassador to the
AUDIO (Scroll to April 12)
On April 12, Dr. Machivenyika J. Mapuranga,
the Zimbabwean Ambassador the
In a world in the throws of a melt-down of the global financial
system, where City of London financiers are looking for control, looking to
save their system, while instigating destabilizations, potentially leading to
wars, certainly including Africa, host Freeman begins the discussion with a
question to Dr. Mapuranga on the status of the recent
elections for President and Parliament in Zimbabwe.
Ambassador Mapuranga discusses the
elections as a “culmination of the process started in March 2007, when
the heads of state and government of the Southern African Development Community
(SADC) met, and issued a communiqué in which they
requested the President of South Africa, Thabo Mbeki, to play the part of
facilitator—some say even mediator—in talks between the ruling
party, ZANU-PF, and the opposition Movement for
Democratic Change (MDC).”
The talks resulted in Amendment 18 to the Zimbabwean Constitution,
which cut the Presidential term from six to five years, and stipulates a
maximum of two terms. It also created Zimbabwe Electoral Commission (ZEC), with two members each nominated by the opposition
party and by the ruling party.
Amb. Mapuranga, after outlining the course of the recent
elections, held according to ZEC rules, details a lot
of interference by British, who “if you listen to some of the debates that
go on in the House of Lords, you would in fact get convinced that as far as
they’re concerned, Zimbabwe is not yet an independent sovereign
state.”
There follows a discussion of the history of colonial Africa, going
back to 1890, up through 14-year War of Liberation, and the continuing scramble
for the “treasure trove” of raw materials in Zimbabwe.
Portia Tarumbwa Strid
intervenes at this point, on President Robert Mugabe’s land reform
policy, and similar policies to redress the disgusting British policies of
forced starvation, wars, and disease: “Any government that tries to go
against globalization, or against the IMF, or against the
This allowed the Ambassador to elaborate. “The economy we
inherited was an integral part of the Anglo-American economy, and so, very
vulnerable to sanctions, including ‘regime change’”
There is a new determination of African countries, however, to take
their destiny into their own hands. The problem is, they are not getting any
help from the West.
Dr. Mapuranga: “As far as the
British are concerned—and
In answer to Ms. Tarumbwa Strid’s plea to help
[For a complete transcript of the interview, see EIR magazine, Vol. 35, No. 17, April 25, 2008. Pp. 48-56.]
Release Date: April 28, 2008
Program No. 714
“Averting Doom,”
Pt. 3
On March 12, Lyndon LaRouche
conducted an international video webcast from
From a Zimbabwean living abroad: “I would appreciate your
view on the current situation in
John Asher:
What’s going to have to be the transition here, out away from this
Eurodollar/petrodollar system, in terms of bringing in the Homeowners and Bank
Protection Act and New Bretton Woods?
From a Democratic staffer on a House Committee: If Hillary Clinton
were elected, would this mean fascism could not be imposed?”
From a director of one of the Presidential campaigns: “You
repeatedly refer to your Youth Movement, and the role they’re playing in
forwarding your political agenda. Yet, those under age 22 or 23 are voting
overwhelmingly for Barak Obama. Please explain.”
Alli Perebikovsky: What is the
historic and cultural background of those nations [which would constitute your
Four Power Agreement, i.e.,
Carlos Cano (president
of the Conseno world organization): “Why do you
persist in restructuring the old-neo-liberal model, when those tendencies keep
us from a new world order, to be able to save the Earth from climatic changes
through responsible consumption?”
From several EIR readers
and others: “Vice-President Dick Cheney is going to 5-6 countries in
Southwest Asia, and many people fear an Iran war, or other preventive war is
being set up. This is especially the case after the resignation of Admiral
Fallon. What is your assessment of this region, and how do you think the
Question from a male in the audience: “What is your idea of our future
educational system, based on morality and creativity?”
From a well-known Democratic consultant: “The current race
for the Democratic nomination is being orchestrated in such a way as to cause
bitter divisions among Democrats, and my fear is that those divisions may be
too bitter and too deep to be mended. If this continues, I’m afraid we
face the possibility of a GOP victory. Do you think there is some efficient way
to deal with this problem now?”
Composite question from six sources in
From someone who was a super-delegate to the 2004 Democratic
Convention in
Release Date: May 5, 2008
Program No. 715
“Firewall: In Defense of the
Nation-State”
Early in 2008, Lyndon LaRouche tasked a small team of young
associates to create a documentary which would present the true story of what
has become widely, but falsely, referred to as “The Sub-prime Mortgage
Crisis,” and what to do about it. On February 22, the Lyndon LaRouche
Political Action Committee (L-PAC) released 10,000 copies of an 84-minute DVD
called “Firewall: In Defense of the Nation-State,” and began
distributing them nationally. In this edition of The LaRouche Connection, we present a 60-minute version of
“Firewall,” edited for Public Access.
On July 25, 2007, before the crisis burst into the news, Lyndon
LaRouche delivered an address in
“Firewall” begins with a clip of Mr. LaRouche from that
webcast: “There is no possibility of a non-collapse of the present
financial system. None. It’s finished now. The present financial system
cannot continue to exist under any circumstances, under any presidency, under
any leadership, or any leadership of nations. Only a fundamental and sudden
change in the world monetary financial system will prevent a general immediate
chain reaction type of collapse. At what speed we don’t know, but it will
go on and it will be unstoppable. And the longer it goes on before coming to an
end, the worse things will get.”
While Mr. LaRouche spoke about the reality of a global collapse,
Presidential candidates, elected officials, and respected economists raced to
reveal various “stimulus packages,” thus perpetuating the hopeless
bailout of an already bankrupt system.
“Firewall” reveals the process by which we have come to
such a point in history, and how we might rise to regain
In the second half of the 19th Century, a new dynamic
began to express itself in the political landscape of the world. Previously
dominated by a system of empires, typified by the British Empire’s
commitment to thriving off the sheer brute labor power of uneducated, enslaved
populations, the post-colonial U.S.
Republic offered a better vision for the future, typified in the writings of
American System economist and adviser to President Lincoln, Henry C. Carey.
The international consequences of
“Firewall” goes through the horrendous terms of the
Today we are witnessing, once again, the threefold process of
feeding a ballooning financial bubble, using an expanding money supply, looted
from a collapsed physical economy—exactly what was imposed on defeated
Germany—represented as a single, collapse function. A shock front
develops rapidly, until it reaches a critical point of instability, where the
rate of
increase in the monetary aggregates surpasses that of the financial
aggregates. This singularity marks the transition between
two entirely distinct spaces, where the governing processes on the
one side no longer apply on the other.
After
Throughout the course of the 1970s, a series of operations were run
with the intention of replacing the
Among the major firewalls established by
But an increasing flow of money, looted from the collapsing
physical economy, was required to feed the ballooning bubble. Under
“globalization,”
After the blowout of the Y2K bubble, a critical discontinuity was
reached. Banks began appraising housing prices at higher and higher levels, and
new housing development took off. By this time, the electricity grid was
wrecked, the steel industry shut down, and the auto industry packaged up and
shipped out of the country. The average cost of housing began to exceed the
average income. With families unable to afford new homes, sales slowed.
“Sub-prime” lending came to the rescue! By offering
more and more risky loans to more and more people who could ill afford them,
the system managed to keep itself afloat. But not for long. In June 2007, the
largest sub–prime lender, Bear Stearns, found its paper no longer being
accepted at face value. This triggered a chain reaction, and over 80 mortgage
lenders disappeared. The U.S. Treasury and European Central Bank were buffaloed
by the City of
Today, as the world faces a crisis comparable to that of 1923, the
political solution proffered by some, including would-be President, billionaire
New York City Mayor Michael Bloomberg, and California Governator
Arnold Schwarzenegger, is massive cuts in social services, such as health care
and pensions. Like feudal barons, financial agencies are assuming control over
the nation’s infrastructure, restricting its usage to those rich enough
to pay the rising tolls. This time, the apparatus which would be used is
termed, misleadingly, a “Public-Private
Partnership”—otherwise known as Mussolini-style corporatism.
Once again, as in
Lyndon LaRouche: “Under our Constitution with a President and
with the backing of a Congress which supports him in this, the
By treaty arrangements with the three other major
powers—China, India, and Russia—it is possible to once again create
a fixed-exchange rate system in the world, putting a lid on inflation, and once
again issue long term credit, in two tiers, the first for productive
activities, such as developing higher and higher technologies, going to a
nuclear economy, maglev trains, and all sorts of new raw materials, at 1-2%;
and the other for everything else, at a floating rate. We can have a really
bright future if we just let this go!
[For a complete script of the program, go to www.larouchepub.com/tv.
Click on Program Summaries for 2008, and scroll down to Program No. 714.]
Release Date: May 15,
2008
“FIREWALL: IN DEFENSE OF THE
NATION-STATE”
RELEASED FEBRUARY 22, 2008 AS A DVD
BY THE
LYNDON LAROUCHE POLITICAL ACTION COMMITTEE
Following is a complete
transcript of the 84-minute version of the documentary.
INTRODUCTION
Narrator: In mid-2007, the global financial system exploded.
Newspaper headlines and television sets across the country resounded with reports of what was soon widely referred to as “The Sub-prime Mortgage Crisis.” The abysmal losses of Countywide Financial and American Home Mortgage became ‘the talk of the town’ almost overnight.
The failure was not of pieces of the system, however, but of the system itself.
This was not an unforeseen “event.”
Several days before the reports of crisis burst into the news, Economist Lyndon LaRouche delivered an international address, signifying the close of the post-FDR global financial and monetary system.
[Lyndon LaRouche (Time:1:01-1:43)
“There is no possibility of a non-collapse of the present financial system. None. It’s finished now. The present financial system can not continue to exist under any circumstances, under any presidency, under any leadership or any leadership of nations. Only a fundamental and sudden change in the world monetary financial system will prevent a general immediate chain reaction type of collapse. At what speed we don’t know but they will go on and it will be unstoppable, and the longer it goes on before coming to an end, the worse things will get.”]
In the ensuing period, though the media frenzy had appeared to dissipate, the terror in the financial world did not. Rather than following LaRouche’s initiative to break from the failing system and support his Homeowners and Bank Protection Act, federal leaders, under pressure from Wall Street, clung to measures which would only prolong the death-throes of the financial system until the end of the year, at the expense of the population.
Upon the arrival of the New Year, in the aftermath of
further unprecedented money-pumping measures taken by central banks around the
globe at the behest of City of
On January 17th, six months after his assessment of the end of the world financial system, LaRouche again spoke out above the clamor, identifying the full scope and implications of the crisis.
[Lyndon LaRouche (Time: 3:00-3:38)
“Each day now since Jan. 3rd the crisis has been expanding in magnitude at an accelerating rate. What you think is the extent of the crisis today if the measures I propose are not taken, will become much worse by an order of magnitude. On the next week and the week after that and the week after that until the whole system grinds into a collapse probably sometime during this year, and I’m talking about a global collapse not a collapse of just the trans-Atlantic English speaking community.”]
The following week ended in the last hurrah of the Federal
Reserve: a drastic cut in the interest rates—a clear move of utter
desperation. LaRouche identified this as
the culminating event of a commitment made by the trans-Atlantic
English-speaking world toward a new phase of crisis: a chain reaction of global
hyperinflationary collapse, comparable to that which struck
In this presentation, we shall unfold to the viewer the process by which we have come to such a point in history, and how we may rise to the occasion of regaining America’s proper role in the world, rather than shrinking into littleness and watching as the great experiment of our Founding Fathers is relegated to the dustbin of history, as the world enters a new Dark Age.
We urge the viewer to watch as if his future depended on it, because in a very real sense, it does.
PRE-WORLD WAR I
Narrator: In the
second half of the nineteenth century, a new dynamic was beginning to express
itself in the political landscape of the world.
Previous to this, the world had been dominated by a system of empires,
typified by the
In the name of free trade, the British East India Company
enforced an economic policy devised to maintain the dependence of its colonies
upon its control of maritime shipping throughout the world. By flooding foreign markets with cheap goods
they would force other countries to devalue their labor to the point where their
only recourse was either the employment of slave labor or the elimination of
manufacturing altogether. By these means
[John Hoefle (Time: 6:08-7:06)
“The
In the post-colonial
[Carey Reader: Two systems are before the world; …. One looks to underworking the Hindoo, and sinking the rest of the world to his level; the other to raising the standard of man throughout the world to our level. One looks to pauperism, ignorance, depopulation, and barbarism; the other in increasing wealth, comfort, intelligence,…and civilization. One looks towards universal war; the other towards universal peace. One is the English system; the other we may be proud to call the American System, for it is the only one ever devised the tendency of which was that of elevating while equalizing the condition of man throughout the world.
Such is the true mission of the people
of these
In 1865, the young nation--the
[John Hoefle (Time: 9:50-10:20)
“Now a nation is an entirely different thing. A nation, if you look at our constitution and declaration of independence, where it says clearly that the purpose of what we’re doing is to protect the general welfare of your population. That we’re all in this together. That everybody gets protected. That we want to build a nation according to a concept which promotes culture, which promotes the development of the individuals and the creative potential of the human mind, because that’s your real asset.” ]
The international consequences of
[John Hoefle (Time: 11:38-12:15)
“But if you promote the creative potential of the human mind, then you also destroy the world in which the Empire is operating, because anybody who’s got a brain, and can see a better way, is not going to tolerate these things. And when the United States, as you saw after the civil war, when we got the American System up and running and started exporting it to other countries around the world, we were transforming the world. And we were the greatest threat to this system on the planet, and they’ve been after us to take it down ever since.”]
[Text on screen only (12:24)
“If ‘Berlin-Baghdad’ were achieved, a huge block of territory producing every kind of economic wealth, and unassailable by sea-power would be united under German authority…” British Major Laffan (excerpt taken from “The Serbs: Guardians at the Gate”).]
Though
Earlier in the nineteenth century,
[Lyndon LaRouche (Time: 13:43-13:55)
“The British method is to get other people to fight a war and kill each other, and they then come in and pick up the pieces, after the people have exhausted themselves in killing each other.” ]
Once the British drew
[Lyndon LaRouche (Time: 14:50-15:24)
“So this is the way it happened, but the purpose was to destroy, geopolitically as they call it, to destroy continental Europe, continental Eurasia, to maintain it under the control of the British Empire, and using whatever lies, whatever excuses and so forth they could use, whatever motives they could cook up, to get this thing going. The essential thing is what is called geopolitics. To maintain the maritime power of the British system as the world Empire.”]
As World War I broke out in August 1914, and all the intentions were unveiled, Kaiser Wilhelm II bewailed:
[Stefan
Ossenkopp: (Time 15:37) “The world will be
engulfed in the most terrible of wars, the ultimate aim of which is the ruin of
POST-WORLD WAR I
In the aftermath of
On condition of the 1918 Armistice, the army and navy were
completely dismantled, and all of
The 1919 Peace conference in
As an initial installment, twenty billion gold marks were to be paid to the Allied victors in the form of German bonds--redeemable either in gold marks or physical goods.
Not only were
These were the terms of the
[Lyndon LaRouche (Time: 16:49-17:04)
“You want to destroy a nation, you blame it for something. It’s that simple. “This guy must be killed” Why? “Well, I’ll tell you this later, why, the reason, we gotta kill him now.”]
In
the period between 1919 and 1921,
In
May of 1921, the London-steered reparations committee unveiled their second set
of terms, declaring that
In
October, after the failed attempt of German Foreign minister Walter Rathenau to
rework debt agreements with
In
response to mounting economic pressures applied at the League of Nations
gathering in Genoa, Italy, Foreign Minister Rathenau met with Russian
representatives in nearby Rapallo, where a treaty was signed which would relieve Germany of the
portion of its reparation payments due to Russia, and improve relations between
the two countries. This positive turn offered an escape from the
ever-tightening British noose; however, such a promising agreement was not
tolerated. Two weeks after the signing of the
By the autumn of 1922, the ability to pay the financial debt was dwindling. In the face of collapsing wages and the continued need to service the debt, the Government was forced to rely on unrestrained money printing, and the Mark continued its fall. This dramatic increase in monetary aggregate required bills with higher face values than ever before.
In January 1923, despite breakthroughs by
First, the severing of the
Under these conditions, the concept of saving money became an impossibility for the German people. On the contrary, the more quickly it could be spent the better, so as not to be left with a handful of worthless Reichsmarks. Wheelbarrows became the common mode of transporting money to buy essential foodstuffs, which were becoming more expensive by the minute. In the face of such circumstances, many sought refuge in the wild frenzy of a culturally degenerate fantasy-world. Others, equally deluded, engaged in obsessive gambling and speculation, some attempting to make a profit by betting against the Reichsmark in the currency markets.
In the spring of 1923 inflation was in full bloom. By June,
nothing could stop the mark. Waves of
strikes broke out due to collapsing wages. Unemployment skyrocketed. All aspects of daily life became focused
solely upon survival, all savings disappeared, and nearly all income was
consumed in simply preventing starvation.
Printing presses were run day and night to keep up with the demands of
inflation. The hyperbolic expansion of
circulating Marks was mirrored in their devaluation. By the end of the year,
the Mark had lost all of its value. The
German population was drowned in a sea of money.
The magnitude and rapidity of this blowout of the German economy necessitated the invention of a new term: hyper-inflation.
HJALMAR SCHACHT
With a disintegrated monetary system,
The so called `solution' to the
As newly appointed currency commissioner, and soon-to-be
president of the Reichsbank, Schacht introduced a new currency, the Rentenmark,
which was fixed in value. At an exchange
rate of one trillion marks for one Rentenmark, citizens handed in their entire
money supply for a handful of Rentenmarks. Schacht's policies brought an end to the
hyperinflation, but only by means of imposing a severe hyper-deflation,
designed to further secure the payment of the
As any moderately sane people would
actively resist such inhumane policies,
Schacht searched for an entity that would have the stomach to adequately
enforce their execution. The remedy for
the inadequacy of the current police force to carry out Schacht’s purpose
finally came in 1933, when the
[Lyndon LaRouche (Time: 28:27-29:35)
“
THE TRIPLE CURVE
The process set into motion in
The threefold process of feeding a ballooning financial
bubble, using an expanding money supply looted from a collapsed physical
economy, represents a single, typical collapse function. Like the separation of the boundary layer
during transonic flight, the act of divorcing the money supply from the
physical economy generates a self-feeding shock front. This shock front develops rapidly until it
reaches a critical point of instability, where the rate of increase in the
monetary aggregates surpasses that of the financial aggregates. This singularity marks the transition between
two entirely distinct spaces, where the governing processes on one side no longer
apply on the other. As physicist and
mathematician Bernhard Riemann recognized, this type of discontinuity is
characteristic of all physical processes.
Significantly, it is the most characteristic feature of the
anti-entropic development of human physical economies.
All human modes of operation constitute what is called a
phase space: a constructive-geometric space of variable curvature and
dimensionality, representing the domain of all potential activity -- in short,
a set of physical laws.
In a human economy, the boundary conditions governing these
"laws" are represented by the degree of technological development,
typified here by available energy resources.
A wood burning civilization has a necessary upper limit, not only on
their total energy output, but on the possibility for that resource to sustain
a growing population. If Man were merely
an animal, the depletion of that resource base would result in periodic
fluctuations in the human population: a cycle of growth and collapse,
maintaining the human population at constant median value, like that of every
other living creature on Earth. On the
contrary, however, the characteristic of human economic development is to
surpass each encountered boundary by the introduction of newly discovered principles,
transitioning from resource base to resource base, forming, in effect, a
continuous curve of discontinuities.
This is the reflection in the large of the human creative capability which empire seeks to eliminate.
THE BOOMERS
[John Hoefle (Time: 32:36-34:01)
“They had an operation to destroy us going into World
War II where they wanted this global fascist movement, and there was an
attempt, they had the planned coup in the
Particularly during the period immediately following the
second World War, it would not have been possible to destroy the American
system militarily within the
To stop this, it was necessary for the British to
reestablish the influence of their agents within the
[Winston Churchill “Iron Curtain Speech” (Time:35:12)
“From Stettin in the Baltic to
With this, a project was launched to unleash in the
These police state conditions prepared the generation just
returning from the war to raise what has been, without question, the most
gullible generation the
[“Boys with Dad”
clip/Kennedy Assassination announcement:
"These boys greet their dad as though they are genuinely glad to see him;
as though had really missed being away from him during the day and are anxious
to talk to him. This is the time for pleasant discussion, in a thoroughly
relaxed mood. They don't pick this time of the day to spring unpleasant
surprises on Dad; if they have disagreeable news, they'll postpone the
discussion until another time. And this is no time to DUN your Father for a
raise in your allowance, new clothes, or argue about other financial
matters."
TV-Reporter:
„Good afternoon, Ladies and Gentlemen, you'll excuse the fact that I'm
out of breath, but, about 10 or 15 minutes ago, a tragic thing from all
indications at this point has happened in the City of
The Baby Boomers were less a generation than they were a
product of an extensive social manipulation.
As had been done in Europe, earlier, the shock trauma of a series of
traumatic events were used to create a broken and malleable generation, ripe
for the kinds of social engineering required to uproot the type of American
optimism which the global financial elites, centered in the City of
This created the conditions for the launching of the
rock-drugs-sex existentialist counterculture which dominated the Baby Boomer
generation. This time, unlike
[John Hoefle (Time: 38:37-40:36)
“So 1968 there is another event, a speech at the
Bilderberger Meeting in 1968 by a man named George Ball. And George Ball was a member of the steering
committee of the Bilderbergers, which was a primarily
European oligarchic fascist organization, Prince Bernhard, the Nazi from the
Even as some of the polymorphically
perverse hippies of the 60s transformed, throughout the seventies, into the
"greed is good" capitalists of the 80s, they never lost their utter
aversion to all things technological.
The real technological optimism of
The cultural willingness to accept the first phase of the triple curve collapse function had been established.
Upon accomplishing this, the financial establishment
launched a full scale takedown of the social and economic reforms created by
Franklin Roosevelt. Throughout the
course of the 1970s, a series of operations were run with the intention of
replacing the
In 1971, a grouping of financier interests, led by George
Schultz and Felix Rohatyn, made the decision to officially decouple the dollar
from gold. This marked the end of the
Bretton Woods system of international development, as it had been established
by
[Excerpt from Nixon Speech (Time: 42:03)
“We will press for the necessary reforms to set up an urgently needed new international monetary system.”]
The dollar was now officially detached from the physical economy, and free to be transformed entirely into an instrument of speculation. Currency exchange rates were permitted to fluctuate wildly, and long term investment into national development projects became an impossibility for the underdeveloped areas of the globe.
This was consolidated in the period between 1973 and 1974,
when a staged oil crisis was used to create the so-called "Euro dollar
market." Royal Dutch Shell and its
bankers, Rothschild and Felix Rohatyn’s Lazard,
set up the oil spot market and made the dollar the currency of the
international oil trade. This raised
the value of the dollar, while at the same time placing a huge pool of dollars
into the hands of speculators outside of the
Throughout the 1970s the very notion of a physically
productive enterprise was eaten up in a series of so-called "mergers and
acquisitions." In reality, this
represented a steady rebuilding of the kind of cartelization which
In 1975, Felix Rohatyn, playing the role of a modern day
Hjalmar Schacht, was appointed head of the Municipal Assistance Corporation --
Big MAC -- in charge of handling the financial crisis which
Finally, in 1979, Federal Reserve Chairman Paul Volcker
instituted a policy which the Council on Foreign Relations had dubbed the
"controlled disintegration of the
[John Hoefle (Time: 45:33-45:58)
“Basically in the 1980s you had all of these rules that were designed to protect the economy and protect citizens from these rapacious banking practices were dismantled and the policies were set just the other way to favor this sort of thing and encourage it. So this continued, by the end of the 1980s the whole system was bankrupt.”]
During this period, one of the major firewalls established
by Franklin Roosevelt to defend the American people was deliberately targeted
and destroyed. The Savings and Loan banks
-- barred from speculative activities by
The model for the modern stock market was established, nominally,
by Michael Milken, who used mafia money to build up
[John Hoefle (Time:46:40-48:12)
“The case of Michael Milken
illustrates how the system actually works because what Milken did in, I think
it was about 1978, was to set up in Beverly Hills, California an office of
Drexel Burnham Lambert the investment bank which was based in New York and the
Beverly Hills office was a place where he started to sell junk bonds, he
created the junk bond business. And a junk
bond is by definition a corporate security which has a credit rating of less
than investment grade, so it is commonly called a junk bond or a high yield
bond. Now to understand it you have to
take it out of the realm of a business story or a financial story, it’s
not really about bond ratings or things like that. What they would do is that Milken would go to
a company, let’s say a casino Stevewin’s
casino because he helped build
Milken's monsters, as they were known, became the model for stock market speculation, finally obliterating the already thin line between organized crime and Wall Street.
By the end of the 1980s the entire U.S. Economy was in a state of collapse. This collapse culminated with "Black Monday," in October of 1987, when the markets plunged twenty percent, setting the stage for the creation of the largest financial bubble in history by the new chairman of the Federal Reserve, Alan Greenspan, who had been installed shortly before the collapse.
[Lyndon LaRouche (48:58-49:24)
“At that point Greenspan said
‘I’m coming in, I’m coming in, I’m going to fix
everything! And he started this particular hyperinflationary system. He said we
can invent money, and it was based on Michael Milken. And Michael Milken’s kind of experiment
in
Again, an increasing flow of money, looted from the collapsing physical economy, was required to feed this ballooning bubble. This time, however, the money was not paper, but digital. And this time, the effects of hyperinflation were partially masked for the American population by the introduction of a policy of what was called, euphemistically, globalization.
Under globalization, the
[John Hoefle (50:40-51:32)
“The first thing you do is you
make sure that they don’t earn enough money to buy what they need without
taking on debt and that comes from killing the productive side of the
economy. So then instead of having high
paying manufacturing jobs and a lot of high paying jobs, you have these low
paying service jobs retail jobs, things like that. With globalization we’ve seen a
continuing downward push on wages under the theory that we have to be
competitive in wages with some country on the other side of the world. This method of using debt to control is very
important and it also gives you some insight considering how in debt the
Over the course of the 90’s, the mechanisms created by Greenspan for rolling over the debt continued to snowball. The derivatives market spread across the globe.
[Lyndon LaRouche (51:54-53:18)
“Every time they turn around
they will create a debt. They will
calculate the anticipated income on the debt that they just created, they will
then capitalize the income they just fictionalized, they will take a multiplier
effect let’s say 3% ratio to the corresponding figure so now you
capitalize a debt, an asset of that magnitude, there’s nothing behind it,
it’s only the imagination. So
it’s like what happened in
This carnival reached its limit in the autumn of 1998.
[John Hoefle (53:25-54:06)
“In 1998 you had the Russian government announce that it was postponing payments on some of its government bonds the GKO bonds. This sent shockwaves through the financial world not because the amount of money was significant because it really wasn’t that much money, but because here was a sovereign government telling the financial markets ‘no’. If a government says ‘no’ and can back that up, then the game is over.”]
In a desperate effort to re-inflate a collapsing system, the Y 2K scam was launched. Consumers were convinced that come January 1st, 2000, all functions run on the two digit date system would come to a screeching halt. Calendars would roll over from December 1999, straight to January 1900, unless new software was purchased to further inflate the tech bubble. Hotshots with no skills other than website design became millionaires overnight. The NASDAQ stock-market index soared, nearly tripling over the next 18 months.
[John Hoefle (54:48-56:01)
“The way they dealt with this was a thing that George Soros referred to as the wall of money. The central banks started lowering their interest rates and flooding the markets with liquidity trying to get people to buy. And then you had this scheme to create a tech bubble to pump up the high tech stocks, the internet stocks, computer stocks and that sort of thing as a way of getting things going again, so they started pumping a bunch of money into these things and actually created, going into the last half of 1999, a mania. So we went from ‘omigod the system just died!’ to a mania in a year. And in the mania, the tech bubble mania, everybody was buying stock, you know your cabby would give you stock tips that kind of stuff and everybody wanted in on it. People were using their credit cards to buy stock because the things were all going straight up and they just kept going up and up and up until it blew up and then it was all over. But the effect of it was to bring the system back. It restarted it.”]
After the blowout of the Y
2K bubble, the critical point of discontinuity was reached. The final phases of
looting the
[Lyndon LaRouche ((56:49-57:17)
“This is especially the Baby Boomers. ‘I want this, I want this. I need this. I need two houses. I’m going to go into debt through mortgage to have a house, a house that I like and I’m going to get a good deal. I’m going to swindle my neighbors’ whatever. ‘Then I’m going to buy a second house on the same terms, using the credit for my first house to get a second house then I’m going to rent this out to people. I’m going to get rich!”]
The income streams from
these new forms of money printing were used to inflate market values even
further, while at the same time vulture funds swept in to buy up the last
remnants of the
By this time, the
electricity grid was wrecked, the steel industry was shut down, and the
[John Hoefle (57:56-58:22)
“The system is geared towards producing more and more higher mortgages at higher prices. That what’s called a housing market is actually not about housing it’s about mortgages. It’s the selling of mortgages. It’s debt forming, it’s all about debt. You need a house in order to create the debt, so you build a house. But the purpose of all of this, what drives it is not houses, it’s mortgages.”]
With families unable to afford new homes, sales began to slow. A new means was needed to keep the bubble going. This came to be known by the name of sub-prime lending.
[John Hoefle (58:38-59:51)
“In 2005 the rate of increase of new money coming in as mortgages began to decline. And for a system like this, that’s deadly. So the rate of the rate of the money coming in began to slow, in part because they were pricing the houses out of reach of much of the population and as we have subsequently seen as this process stops, everything starts to blow up. So they didn’t want it to blow up so they started easing the terms of the loans to try to sell houses that people couldn’t afford to people anyway. The whole idea was to sell houses that people couldn’t afford because that was necessary to keep the system going. And that’s what the sub-prime loans were, that’s what these alt A loans, the low-documentation, no documentation, adjustable rate mortgages and all these things, this is all a response to the fact that they had priced themselves out of the market, the housing market was beginning to collapse and they were doing everything they could to keep it going.”]
By offering more and more risky loans to more and more people who could not afford them, the system managed to keep itself afloat, though it was clear to those in the know that, at this point, the party was already over.
[John Hoefle (01:00-01:01)
“And this was done from the top down, this was not the mortgage lenders, so called sub-prime lenders doing this, because they were merely creatures of the system. A sub-prime lender makes loans and then turns around and sells them to some bigger institution, if the bigger institutions don’t want them, then the sub-prime lender goes out of business. But they were just creatures intended as middle-men because they couldn’t survive this process, sooner or later it would blow up. So the big banks didn’t really want to do this thing on their own, so they had these middle men to do it. And that’s what blew up, that’s what became known as the sub-prime crisis.” ]
Finally, the banking establishment began to realize that the situation was untenable. Unable to stop the blowout, the bankers resorted to shaping how it would be perceived. In June of 2007, the largest sub-prime lender, Bear Stearns, found that its paper was no longer being accepted at face value.
[Jim Cramer on Bear Sterns Clip (01:01-01:02)
“When I go to Bear Sterns, I don’t want to create fear, I like Bear Sterns very much but I think at this stage this is not a good call, they shouldn’t have done it, and they should have just said ‘you know what we’re doing well’ and don’t say another thing, just don’t say it! Because it does not inspire confidence to have 10 headlines coming over about what to do, I don’t like it !! This is about Bernanke, he has to be on that call, forget the investors, the investors are going to do—if Bernanke, Bernanke needs to open the discount window, that’s how bad things are out there! Bernanke needs to focus on this! Alan Greenspan told everyone to take a teaser rate and then raised the rates 17 times, and Bernanke is being an academic, it is no time to be an academic, it is time to get on the Bear Sterns call! Listen! Open the door-fed window, he has no idea how bad it is out there!! He has no idea!! He has no idea!! I have talked to the heads of almost every single one of these firms in the last 72 hours, and he has NO IDEA what it’s like out there!! NONE!!”]
This triggered a chain reaction, and over eighty mortgage
lenders disappeared. The US Treasury and
European Central Bank were buffaloed by the City of
[John Hoefle (01:02-
“Now there is no financial solution to this because the financial system has in fact died. So the solution is in the political realm.”]
Today, as the world faces a crisis comparable to that of 1923, the political solution proffered by some is massive cuts in social services, such as health care and pensions. Like feudal barons, financial agencies are moving to assume control over the nation's infrastructure, restricting its usage to those rich enough to pay the rising tolls. This time, the apparatus which would be used is what is termed, misleadingly, a Public-Private Partnership.
[John Hoefle (01:03-01:04)
“A public-private partnership is a way in which a private corporation can take over infrastructure which was built by tax payer money and then charge tax payers to use it, is basically the simple answer in the context of the way these things are being used today. That the idea is since government is that since governments can’t afford to build all the infrastructure they need to build, that the private sector will help them out and that in return for helping build infrastructure the private sector gets to own it, or own some of the income stream from it.”]
In what is a sick irony: the very same people who have made it impossible to maintain infrastructure, now intend to enslave the nation by possessing what little of it remains. In true Mussolini fashion, the actual need for infrastructure development is being used as the sugar-coating for hoodwinking the population into swallowing the poisonous pill of corporativism.
[Schwarzenegger/Bloomberg Press Conference (01:04-01:06)
Bloomberg: “Make no mistake about it, we have an infrastructure crisis. Non-stop television showed us in New Orleans when the levees broke and in Minneapolis when the bridge collapsed, but the governors and the mayors of this country everyday see it at an operational level: Bridges that are rusting away, and tracks that can’t carry high speed trains and power transmission lines that can’t keep up with demand, and airports that need new runways, water lines that need back up systems, and sewerage plants that leak into the……
Q: This one is for Governor Schwarzenegger and Mayor Bloomberg, how do you answer those that given both of your records in killer fiscal austerity policies, would just say that this infrastructure initiative is another form of Mussolini corporativism?
Schwarzenegger: “First of all let me just say, whatever you call it, the bottom line is that we need to build the infrastructure because we have heard other arguments…”
Bloomberg: “Infrastructure is the most populist thing you can do.”
Schwarzenegger:
“We see now that there is more money in the private sector than in the
public sector, so I think it is common sense that we say here’s a way to
do it. I think more and more private
investors are interested in getting involved in those kinds of projects. I’ve used an example for instance up in
British Columbia where we have seen tremendous amounts of buildings going on
where there is a public private partnerships and the labor is happy, the
political leaders are happy, the people are happy, the workers are happy
because everyone is working. So I think
it’s great benefit and that’s what we want to do here in
Bloomberg: “I think another thing, with private capital you can do things that you can’t do with the public sector’s money.” ]
[John Hoefle (01:06)
“It’s always more expensive for private corporations to do these things than the government. The government is much more efficient at it and the government doesn’t have to make a profit out of it, whereas the private companies won’t do if they can’t make a profit, so it’s inherently more expensive, and it’s not really necessary if you have a proper government credit system.”]
In aerodynamics, the singularity of the shock front is generated as a result of the otherwise continuous functions of fluid flow. On the other side of this front, the usual laws of aerodynamics are altered. Actions which once caused an aircraft to gain altitude now lock it permanently into a fatal nosedive. The same is true of an economic shock-front. The "usual" economic measures of lowering interest rates, raising interest rates, or issuing stimulus packages, are all mere monetary measures which simply serve to contribute to the hyperinflationary collapse.
[John Hoefle (01:07)
“What they’re doing with all of these schemes, the Fed loans, the money pumping, the stimulus plan, all of these things, is basically hyperinflationary. They want to roll this whole thing over.”]
Once again, as in
[Lyndon LaRouche (01:07-01:08)
“We either go to this reform or we go to fascism, in that direction, and we have been drifting towards a fascist movement in policy, which was implicitly going toward hyperinflation.” ]
The American population and the world now face an
opportunity which was never given to
[Lyndon LaRouche (01:08)
“Under our constitution with a
President and with the backing of a Congress which supports him in this, the
Since August of 2007, the LaRouche Youth Movement has been
in a full scale mobilization to prevent the rise of fascism in the
[HBPA city council testimonials (01:10-
“I want to speak on an issue that has national and international implications…”
“I’d like to call attention to a
piece of emergency firewall legislation that is currently circulating the
“I am a full time political organizer for the LaRouche Political Action Committee”
“I also work for the LaRouche Political Action Committee”
“I am also with the LaRouche Political Action Committee organizing for the Homeowners and Bank Protection Act”
“We’re right now in the middle of a national mobilization”
“Right now the financial ash is falling on our heads...”
“Huge losses, billions of dollars…”
“We’re looking at nationwide, millions of homeowners being foreclosed on”
“People are typically unaware
that 60% of all the assets of the Banks of the
“The Federal Reserve, the European Central Bank and other central banks have thus far had a policy of providing whatever liquidity was necessary to plug the holes in bank’s balance sheets…”
“You know the exact same
process that was done in
“This is something which is systemic, it’s a global problem.”
“There is something that can be done about it.”
“The proposal that Lyndon LaRouche has made…”
“The Homeowner and Bank Protection Act”
“The Homeowners and Bank Protection Act”
“Take action by passing a resolution in support of the Homeowners and Bank Protection Act of 2007”
“So these are the three provisions in the act”
“the three main points of the legislation in terms of freezing foreclosures, setting up a system of rental payments, and a transition period where the banks can be recapitalized to actually begin to fund infrastructure projects and other productive investments.”
“for the Federal government to freeze foreclosures as we had done in 1933 under President Franklin Roosevelt.”
“re-write the mortgages, and this is the big one, re-write the mortgages to the fair value of the home not just changing the interest rate, change the principle in it.”
“One thing you have to do that is inevitable is to re-regulate the banking system.”
“Congress must establish a federal agency to place the federal and state chartered banks under protection…”
“State governments shall assume the administrative responsibilities for implementing the program, including the rental assessments to designated banks with the Federal Government providing the necessary credits and guarantees to assure the successful transition.”
“What we have proposed is not only a re-proposal of something that Mr. President Franklin Roosevelt did.”
“That’s the kind of policy and orientation that Lyndon LaRouche represents, that’s what the Homeowner and Bank Protection Act represents, it would be the first step declaring we’re in a crisis and declaring that the number one constitutional obligation the U.S. population, keep society stable in the face of an economic crisis, and then from there we need to move with a shift in policy nationally away from a system of globalization and cheap labor and back towards investment in making the United States a productive part of the world economy once again.”
“Send a message to Congress”
“Use the power of government to protect populations during a chaotic economic crisis.”
“I’ve recently returned
from
“to create a groundswell in the country”
“banding together to fight for the general welfare of the nation. That’s the principle of our constitution.”
“The reason why we are here is because we have created a lynch mob for the good and you guys are a key part of that”
“The good news is that we do have a capability. We do have a power which through cities and state legislatures we have a voice for the lower 80%”
“We’re organizers. We organize in the street 6 days a week, so we are very, we know a lot about what the population is thinking...”
“We find now, we’re in the midst of a presidential campaign, the issue of politics is on people’s minds…being able to speak truth in a time of crisis when most people aren’t willing to do it, that and nothing else qualifies one for leadership which is not a question of position, it’s not a question of influence or money but at the point that we’ve reached right now it is a question of who’s willing to tell the truth and act on it, and I think that’s something that’s going to give people inspiration and will give us a pathway out of the crisis.”]
[John Hoefle (01:14)
“You’re not going to lose your home just because the system is blowing up; we’re going to protect you. That’s step one. The other side of it, the bank protection act part is that we’re going to protect the banking system. Not that we’re going to protect institutions necessarily, but we are going to protect the essential banking functions upon which the economy depends. That you can’t have a functioning economy without some form of an effective banking system, but that this banking system should be a banking system and not a casino.”]
[Lyndon LaRouche (01:15)
“We must keep, what these idiots with their stimulation packages have no comprehension of, what we must do is we must keep the private chartered banks functioning as well as not evicting homeowners. So therefore you have to maintain the communities and the nation as physically functioning entities. You do that by taking federal credit which is provided largely into the chartered banking system so therefore there’s always enough money in the credit of the system to maintain the system and its physical functions, essential physical functions, people don’t die, the pensions are paid and so forth, that sort of thing. But the other thing, the other music we don’t dance to. That simple.”]
To buttress this, Lyndon LaRouche has stressed the necessity
of returning to a two-tiered interest rate, designed to promote the growth of
American manufacturing, and end the control of predatory speculation over
[Lyndon LaRouche (01:16)
“The government controls the credit. The government is a sovereign. The
government is the only one that is allowed to utter money, utter currency. The
government now puts control over its own money, that it creates. No other money
is allowed to be generated, except by treaty agreements with other nations. SO,
you control all the money, as government money, going into the system. So, that
money is loaned. Now all the money already in the system which goes into the
form of loans for banks, will also get the same kind of implicit benefit.
Because now you have a 1 to 2 percent rate throughout the entire banking
system, private and public. But the speculators are just sort of stuck out
there and they're just going to sort of dwindle on the vine; shaking, drying in
the wind. And so that's the way we maintain the system, by regulation and by
adjustments in these arrangements. And that will work instantly. The Federal
Government has to guarantee the private banks, that is, the chartered private
banks, it has to guarantee the householders living in their communities and living
in their homes. Those two things must be guaranteed, and some other things at
the same time. So you let the rest of this stuff work itself out. 'Folks,
interest rate's going up? Fine!' But you have to maintain an international
fixed exchange rate system among major nations, and you must maintain the
stability of your own internal physical economy.”
“So you're essentially going to dry out whole sections of the market, which are going to have to bankrupt themselves with being useless– we're going to get rid of them. But the concern is, you've got a population of a certain size, communities, so forth, you want to make sure that community, that population is stable. And you let the other things which are essentially parasitical die of their own logic. So you have a two credit system.”
--“By freeing government, the government operation and government credit from this high priced credit private credit, what you do is you have set essentially, creating a fixed-exchange rate system in the world. Now you create a system where nations, their currency values are fixed with respect to each other. So you put a lid on inflation. Now you can make long term credit and because if the rate of interest is fluctuating because of inflation you cannot engage in long term investments. We need a lot of long term investments, physical investments to save the world. So you need a two credit system.”]
[John Hoefle (01:17)
“The first tier is for productive activities. If we are, that the root of our problem is a physical economic collapse, that’s more important than the financial side of it. The fact that our industry has collapsed, that we don’t produce things anymore, that we’ve been living off of our infrastructure, we’ve been cannibalizing our economy. You know if you look at the triple curve the upper curves, the money curve can go up hundreds of percents, thousands of percents, the bottom curve can only fall a hundred percent, but that hundred percent is what kills you. And so you need to start rebuilding the productive end of your economy, you need to provide money to do this at low interest rates so that what you’re spending your money for is not the cost of borrowing money, but you’re spending your money to actually get the most productive boost you can, the most bang for the buck, out of your actual production, that’s what you want to spend your money on improving things. So you have directed government credit for specific projects, these are certain activities that we find necessary, and if you’re going to engage in these activities we’re going to provide you with loans to do them at low interest rates, one or two percent.”]
With the sovereignty of the
[Lyndon LaRouche (01:19)
“If you can say you yourself, this is bullshit, and then you can say it out loud to the people who believe in it, you’re making it, you’re doing fine, but if you can’t you’re going to cave in ‘well, I don’t want to say that you know I agree with you but I don’t want to say that publicly. I gotta go along with it though’, and that’s where the crap comes in.”]
[John Hoefle (01:19)
“It reminds me of the Malaysian monkey trap, where they catch monkeys by putting a nut in a jar with a narrow neck, and the neck of the jar is wide enough so that the monkey can reach in and grab the nut, but once he grabs the nut he can’t pull his hand out, and all the monkey has to do to get away is let the nut go and pull his hand out and then he’s free. But the monkey won’t do it. The monkey keeps holding on ‘this is mine, it’s mine, I won’t let it go’. Then whoever put the trap there comes along later and then they kill the monkey and eat it. And that’s essentially the dilemma we’re faced with. This paper has no value, this system is bankrupt. If we keep holding on to it we’re only going to destroy ourselves. So the solution is simple, we just have to let it go. And if you let it go, admit that it’s bankrupt, tell the truth, then we can turn our attention to what we should have been doing all along, which is building a productive side of our economy using the creative power of the human mind to develop higher and higher technologies, to go to a nuclear economy, maglev trains, all sorts of new raw materials, to free the world from a lot of the problems we have, existing shortages of raw materials (although a lot of that is not actually true), but still you move on and progress, and that’s what we can do. We can have a really bright future if we just let this go.”]
Program No. 716
“Tragedy and Hope,” Pt. 1
What we are facing in our nation today, is not simply the drama of
a long primary election campaign, but a war for the survival of American
forces, against those of the
Both as a former Presidential candidate, a statesman, an economist,
and as the chairman and founder of the LaRouche Political Action Committee,
Lyndon LaRouche has put those questions before us, repeatedly. It has been the
organizing of his movement that has largely shaped the issues in the ongoing
national election. But not enough of the American people yet understand what is
at stake. Not enough of our leaders, or would-be leaders, understand.
On May 7, Lyndon LaRouche
delivered an address in
This edition of The LaRouche
Connection features the first hour of Mr. LaRouche’s opening remarks.
The entire event, including two hours of discussion, was moderated by Debra Freeman.
LaRouche: “The issue is not the election. The election is a battle
in a war. It is not something unto itself. The result of this election, in
itself, is a matter of indifference. It’s a question of how the battle is
won and lost which is important.”
LaRouche: “The issue is World War III—between the
British Empire, better known as the Anglo-Dutch Liberal banking financial
system, and the principal nations of Eurasia—Russia, China, India.
[These] and other nations, are the targets of intended warfare by the
LaRouche: “If they control the
LaRouche: “We’re not dealing with an election.
We’re dealing with whether there is in the Untied States, in the top
layers of society, the moral fitness to survive! … If we allow this to
happen, we will get the same kind of treatment that the victims of Mussolini,
Hitler, and so forth, suffered. We have to win this war against that evil
empire!”
LaRouche: “[President] Franklin Roosevelt’s intention,
at the close of World War II, was to eliminate colonialism and all forms of
imperialism from this planet. Once peace had been secured, the power of the
LaRouche: “The white-collar children of Truman, the
‘68ers, gave us Nixon. And with the aid of the Trilateral Commission,
destroyed the
LaRouche: “So you have ‘colonies of
manufacturing’ in countries in Asia, Africa,
LaRouche: “We are now in a period, where the world as a
whole, is in the process of collapsing into a new dark age, similar to, but
worse than, potentially—unless we stop it—that which happened to
Europe in the middle of the 14th Century.”
In this circumstance, Mr. LaRouche has made a number of proposals,
in the tradition of the American System of political economy, to protect the
population and get production going again: the Homeowners and Bank Protection
Act; a two-tier credit system to channel funding for especially infrastructure;
a four-power international conference to fix currency exchange rates again; and
immediately doubling of world food production.
LaRouche: “Were now at a point, where a revolutionary
movement, or the makings of it, is building up around the food issue. And
therefore, those who triumphed yesterday, are not going to continue to triumph
for long: The result is, either we win, and restore the kind of government we
require, in various nations, and among nations, or this world is going into
Hell, because the crisis won’t quite. The people will die of hunger; they
will die in increasing numbers; they will kill for food. The structure of
society will be destroyed in the fight over food which is not there. And
therefore, either we win this fight against this evil, or there won’t be
anything to fight for.”
[For a complete transcript, see EIR
magazine, Vol. 35, No. 20 (May 16, 2008), pp 4-31.]
Release Date: June 2, 2008
Program No. 717
“
AUDIO (Scroll to June 7)
On the June 7 LaRouche
Show, the weekly internet radio program, EIR’s
Asia Desk Editor Michael Billington
interviewed Da Wei, Deputy Director of the Department
of American Studies at the China Institutes of Contemporary International
Relations (CICIR). Joining the discussion was
LaRouche Youth Movement member Liona Fan Chiang.
The program was videotaped for public access cable TV.
Host Billington began by setting the stage for the discussion, by
providing an overview of the current global political and financial breakdown
crisis, the worst in modern history. All attempts to bail out the world’s
bankrupt banking system, he said, are only increasing hyperinflation of the
sort seen back in 1923
Billington: “Lyndon LaRouche’s proposal for a
Four-Power Agreement between Russia, China, India, and the U.S.—the kind
of arrangement organized by President Franklin Roosevelt which made it possible
for us to defeat fascism in the 1930s and 40s—is today absolutely
essential, if we’re going to have the capacity to put together a new
world financial system, and to unleash the kind of economic renaissance required
to deal with the current breakdown crisis.”
Mr. Billington then touched on the May 14-16 meeting in
After going through the history of CICIR,
“the biggest thinktank in
Cross-Strait relations was the first topical issue to be discussed.
Da Wei:
“Though mainland
Liona Fan Chiang
then discussed the recently-released documentary, “Firewall: In Defense
of the Nation-State,” [see The
LaRouche Connection Program No. 715], which reveals the origin of Weimar
German monetary hyperinflation, in the destruction of
Da Wei answered
Ms. Fan Chaing’s question of how today’s
hyperinflation is affecting and being treated by the Chinese government, by
stating that indeed “the inflation problem is maybe the most important
task that the Chinese government is facing…. On the one hand is the
so-called new liberalism; on the other hand is, let the county, let the
government, the state play a more important role in the development. For
example, in the financial market, the government should play a more important
role as a stabilizer. In the food supply, the Chinese government has, since the
mid-1990s, already noticed that it could be a very severe problem for
Da Wei:
“We are quite dependent on the import of fuel—oil and gas—but
[we are] basically self-sufficient in food…. We have done some things,
like we built the Three Gorges Dam, and we also are trying to build more
nuclear plants. We depend heavily on coal. We don’t have a silver bullet
[to solve the food supply and environmental problems] very easily. [They] are
long-time problems, I think.”
As to the urgency of a Four-Power alliance to avoid another round
of British-instigated warfare and deal with the breakdown crisis, Da Wei stated that “the biggest problem is mutual
trust, and that in recent years the high level of relations between
On the
Da Wei then
referenced a poem, which expresses the feeling of frustration among many young
Chinese abroad (called the “April Youth” in
The May 12 earthquake in
Liona Fan Chiang
next introduced the question of “globalization,” the push for
so-called liberalization of trade, which is “pretty much freedom to loot
from anywhere you’d like.”
Agreeing with Fan Chiang’s characterization, Da Wei emphasized what is needed is a “fair process:
fair economic globalization, and that needs the cooperation, and collaboration
between the major countries.”
[For an edited transcript of
the interview, see EIR magazine, Vol.
35, No. 25, June 20, 2008, pp 48-53.]
Release Date: June 9, 2008
Program No. 718
“Tragedy and Hope,” Pt. 2
At the beginning of May, our nation was witnessing not simply the
drama of a long primary election campaign, but a war for the survival of
American forces, against those of the
Both as a former Presidential candidate, a statesman, an economist,
and as the chairman and founder of the LaRouche Political Action Committee,
Lyndon LaRouche has put those questions before us, repeatedly. It has been the
organizing of his movement that has largely shaped the issues in the ongoing
national election. But not enough of the American people yet understand what is
at stake. Not enough of our leaders, or would-be leaders, understand.
On May 7, Lyndon LaRouche
delivered an address in
Edition No. 716 of The
LaRouche Connection featured Mr. LaRouche’s opening remarks. This
edition presents seven questions from the Discussion Session. The entire event
was moderated by Debra Freeman.
·
From a woman working in one of the Presidential campaigns:
“[Polls are showing] that 90% of Democrats who voted for Obama in each of
the past primaries, have said they would vote for
·
From a state-wide office holder in
·
From a former female Secretary of Labor: “One of the most
pressing issues we face is the price of fuel. On the food issue, clearly one
way to address this problem is to increase food production. However, the
massive increases in the price of fuel are not a result of oil shortages per
se.
·
From some unidentified person: “If you were running
·
From a Democrat on the Senate Agricultural Committee: “Will you
be drafting something similar to the HBPA [Homeowners and Bank Protection Act],
on the food question? Regardless of whether you plan on submitting actual
legislation, what specifically would you recommend in the way of legislative
action, to immediately address the crisis?”
·
From a Clinton supporter: “If Obama is a fall-guy set up by
the British Empire, [then] why are you not backing Clinton 100%? I understand
that she is not perfect, but is without doubt, the only one that has a chance
of doing right by humanity.”
·
Composite question on Africa: “What is your solution to the
problem that you refer to in
[For a complete transcript, see EIR
magazine, Vol. 35, No. 20 (May 16, 2008), pp 4-31.]
Release Date: June 23, 2008
Program No. 719
“Tragedy and Hope,” Pt. 3
At the beginning of May, our nation was witnessing not simply the
drama of a long primary election campaign, but a war for the survival of
American forces, against those of the
Both as a former Presidential candidate, a statesman, an economist,
and as the chairman and founder of the LaRouche Political Action Committee,
Lyndon LaRouche has put those questions before us, repeatedly. It has been the
organizing of his movement that has largely shaped the issues in the ongoing
national election. But not enough of the American people yet understand what is
at stake. Not enough of our leaders, or would-be leaders, understand.
On May 7, Lyndon LaRouche
delivered an address in
Edition No. 716 of The
LaRouche Connection featured Mr. LaRouche’s opening remarks. Edition
No. 718 presented seven questions from the Discussion Session. This edition
completes the Discussion Session. The entire event was moderated by Debra Freeman.
· From a
Clinton supporter: “If Obama is a fall-guy set up by the British Empire,
[then] why are you not backing Clinton 100%? I understand that she is not
perfect, but is without doubt, the only one that has a chance of doing right by
humanity.”
· Rep. Priscilla Taylor (Florida House of
Representatives, Democrat-District 84): Two questions: “Hillary wants a
tax holiday [on the gas tax]; Obama opposes it. What do you think? What can we
do now, immediately, that will have some benefit for the population?”
“I know your Homeowners and Bank Protection Act (HBPA) has passed in many
cities and states. [Ms. Taylor introduced it into the Florida Legislature.]
Congress has refused to act on that measure, having their own bill, [and
President Bush has said he will veto the relief bill the Democrats have put
forward]. Does this give us a new opportunity for the HBPA, or are there other
more pressing questions?”
· Composite
question on Africa: “What is your solution to the problem that you refer
to in
· John Jeffries (Official with Local 400,
International Association of Machinists and Aerospace Workers):
“We’re making every effort to get the HBPA passed here in
· Dr. Luise Light (former Director of Dietary
Guidance, USDA): “According to the UN Global Policy Forum, the world
produces enough food to feed every person alive. So why are we seeing the
greatest worldwide hunger and starvation epidemic ever recorded, with one out
of every six people in the world at immediate risk for severe malnutrition and
death by starvation. This is not only immoral, but is breeding war and
revolution in every known country where this massive hunger exists. We know two
things: when people have the capacity to grow most of their own food and live
in stable communities, they are not malnourished, they don’t starve to
death ,and barring any unexpected catastrophe like war or weather-related
disaster, they’re okay. The second thing we know, is that this global
hunger catastrophe is man-made. It was created by the WTO [World Trade
Organization] and others who have globalized monoculture and restricted farming
by rules that favor the needs of the affluent, and ignore those of the poor.
Who has decided who will live and who will die, by dictating such stupid,
arrogant, and murderous world trade policies?”
· Sen. Joey Pendleton (Minority Whip, Kentucky
State Senate, and co-sponsor of SR-90, the Kentucky HBPA): “In addition
to my service in the legislature, I’m an active farmer, and I also serve
on the faculty of the Murray State University Agricultural Program…. How
can we feed the world, with the rising cost of production, and yet at the same
time, keep food cheap for the domestic market? What’s your idea on how to
keep farmers in American farming?”
· Composite
question from members of the LaRouche Youth Movement: [Considering the fact
that even if Hillary Clinton became President, in order to do that, she would
have to make so many rotten deals and compromises with really bad people, that
she wouldn’t be a very good President anyway] “is there maybe some
other way for us to affect the general future of civilization, other than
politics? … I want to maintain a sense of optimism about the future, but
looking at the political framework, I’m having trouble doing it.”
[For a complete transcript, see EIR
magazine, Vol. 35, No. 20 (May 16, 2008), pp 4-31.]
Release Date: July 7, 2008
Program No. 720
“One Year Later—But Still Not Too
Late!”
In a webcast one year ago (July 25,
2007. See The LaRouche Connection
Program Nos. 699, 700, 701: “The End of the F.D.R.
Era,” Parts 1-3) Lyndon LaRouche
declared that the collapse of the global financial system was not “about
to occur,” but was, in fact, ongoing.
Now, a year later, he told a
Mr. LaRouche emphasized: “The first thing to settle, is that
the present international monetary-financial system will die, and will never
recover. This system is finished. The only possibility that exists now, is to
create a replacement system, based on the principles of the founding of the
Now, as last July, Mr. LaRouche called for “three specific
remedies, which are not cures to the problem,” but without which
“there’s no future for the
1.
Congress must pass the “Homeowners and Bank Protection
Act.” Under this Act, all State and Federally chartered banks are to be
put into bankruptcy protection, by the Federal government, with restrictions on
which of their accounts will be paid; the rest to be frozen. And, there will be
no evictions of householders because of mortgage default. They will remain in
their homes under conditions which are acceptable conditions, and will continue
to function under bankruptcy protection.
2.
Under the Constitution, the
3.
The
We must have a Presidential candidate, in the
[For a complete transcript,
see EIR magazine, Vol. 35, No. 30
(Aug. 1, 2008), pp 4-31.]
Release Date: Aug. 11, 2008
Program No. 721
“1932,” Pt. 1
Commissioned by Lyndon
LaRouche to bring the importance of the Franklin Roosevelt presidency to
today’s world, a small team of his young associates went to work. On July
30, the LaRouche Political Action Committee (L-PAC) released 1932, and began distributing 10,000
copies of the 101-min. documentary on DVD all across the nation. With L-PAC’s permission, The LaRouche Connection presents Part 1 of “1932,”
edited for Public Access.
Beginning with Abraham Lincoln’s arrival in Washington, DC
for his first inaugural address, with the Union in mortal danger, narrator Robert Beltran reminds us of
America’s long and continuing-to-this-day struggle of the American System
of Economics, “which values the creative powers of the human individual
far above any other form of material wealth, recognizing these creative powers
as the source of that material wealth, against the British Empire’s lust
for control of the so-called “fixed” resources of the
environment…which treats the power of human insight as a threat to its
power.”
Three years after the American Centennial celebration,
In the
Through these and other Wall St. networks, and directed on the
ground by Reichsbank President Hjalmar Schacht, millions of dollars were
injected into the Nazi Party. Finally,
Back in the summer of 1932, the Democratic Party nominating
convention was confronted with selecting a candidate for the U.S. Presidency
who could deal with the economic crash which had snowballed into widespread
hunger, bankruptcy, foreclosures, and massive unemployment. Despite a clear
mandate of the American people for a Franklin Roosevelt nomination, the
Democratic National Committee, under John Raskob,
went to extraordinary lengths to stop him. Indeed, it was only on the fourth
ballot that
The fight at the Convention was not a simple internal Democratic
Party struggle, but rather a conflict over whether the
[Here ends
1932 continues
with details of Franklin Roosevelt’s biography, going back to 1901, when
as a young man of 19 at Harvard, wrote his thesis on Alexander Hamilton,
President Washington’s choice for our first Secretary of the
Treasury—“the greatest of the cabinet offices,” as against
British agent Aaron Burr, “who saw in [the nation’s] grater
financial security the banishment of his dream of establishing a Northern Confederacy.”
Between 1921 and 1924, Roosevelt and his family turned the period his polio
illness and convalescence into a constructive period of education into all
fields, becoming serious about politics. By 1928, the signs of total economic
collapse and control of all politics by a few on Wall Street became visible to
many Americans. He ran for and was elected Governor of New York and addressed
the 1928 Democratic Party Convention. As New York Governor, he began to reverse
the ongoing economic disintegration by implementing politics of Social
Security, unemployment insurance, major state infrastructure, job creation
projects, regulation over utilities, and initial regulation of Wall Street.
This prescription set a precedent of policy standards later and drew many
protests against him from the Hoover Administration.
By 1930, the Republican Party had become the party of financial
speculation and free trade.
Amidst the chaos of the convention, the Roosevelt apparatus
persisted,
The narrative then covers the infamous American Liberty League, organized
by Raskob, to propagandize against Roosevelt’s
policies, with the ultimate objective to organize a 500,000-man force to storm
the White House and overthrow
The battles of World War II are known. What is not, is the story of
the war between the American and British System, to determine the future of
civilization, which took place in discussions between the two individuals who
represented these outlooks: President Roosevelt and Prime Minister of Britain,
Winston Churchill. The narrative
presents this conflict in the form of a mini-drama, through the eyes of
It has now become our job to finish the work Franklin Roosevelt so
courageously advanced in his life!
Release Date: Aug. 11, 2008
Program No. 722
“One Year Later—But Still Not Too
Late!” Pt.2
In a webcast one year ago (July 25,
2007. See The LaRouche Connection
Program Nos. 699, 700, 701: “The End of the FDR Era,” Parts 1-3) Lyndon LaRouche declared that the
collapse of the global financial system was not “about to occur,”
but was, in fact, ongoing.
A year later, he told a
From the Discussion Session:
From a former cabinet member: “It would seem that we do have
to prepare for the possibility of an Obama candidacy. Our efforts to reach out
to the Obama campaign in shaping policy have been rebuffed. We are at a loss as
to how to proceed.”
From a current member of Congress: “We who backed Obama knew,
that if he became the Democratic nominee, he would have to make certain compromises,
but he’s doing things now that he is not under any pressure to do, which
are serving to completely alienate the base that has supported him from the
start, leaving them with a very deep sense of betrayal. Any insight? What do we
do?”
From a former member of Congress: “Despite Obama’s
arrogant confidence that black Americans will turn out in record numbers to
vote for him, a deep split is forming in the black community, with those of us
whose roots are in the Civil Rights movement on the one side, and those younger
black professionals, who’ve enjoyed the benefits of that movement, on the
other…. What do you recommend…to stop this from happening? Should
we just concentrate on getting the right people elected to the House and Senate?”
Unidentified: “Scores of grassroots organizations have sprung
up all over the
From Sam (a student in Yemen): “Here in Third World
countries, people are not fighting to defend a standard of living; we are
fighting to provide ourselves with the most basic necessities for surviving,
and we’re starving, and we are suffering to death from this economic
collapse…. What should we do? Is there any hope for us at all? Any hope
for use from the
Rep. Yusef
Abdul-Salaam (member of the Alabama House of Representatives, Selma):
“The nation is in the midst of a major economic crisis, and yet our
leaders – Mr. Paulson, Mr. Bernanke, and others—deny this and
insist “the fundamentals are sound, everything’s fine; we can
handle the current crisis, because the economy is fundamentally strong.”
Why are these men in denial? Are they really? Why won’t they grasp the
solution that is at hand?”
[For a complete transcript,
see EIR magazine, Vol. 35, No. 30
(Aug. 1, 2008), pp 4-31.]
Release Date: Sept. 1, 2008
Program No. 723
“LaRouche: The Planet Needs a New Financial
Architecture”
On September 17, twelve days before his scheduled international
webcast, Lyndon LaRouche videotaped some urgent remarks on the global
financial/economic crisis. This edition of The
LaRouche Connection features his opening statement, followed by a dialogue
with members of the LaRouche Youth Movement.
LaRouche: [Between now and Oct. 1] the
We’re now in a hyperinflationary process, caused largely by
the measures taken under this government. Back on the 25th of July
of last year, I warned that this was about to break out, and I expected it to
break out by the first of August. It broke out by the 28th of July,
instead. So I’m wrong sometimes, hmm?
We’re now in an aggravated mess. The recent series of
bailouts should never have occurred. These entities should have been put into
bankruptcy reorganization in a normal way. Many of the assets that are listed,
as the loss assets, were dubious. Some of this may have been criminal, and
should have been investigated for potential criminal action against those
involved.
The essential thing is to save the
I also proposed a minimum 4% basic interest rate—that was not
done. We’re now operating at 2%. Some idiots are trying to reduce it to
1.5%, which is hyperinflationary nonsense.
I also proposed that we approach
Therefore, we represent, for
[For a partial transcript,
see EIR magazine, Vol. 35, No. 38
(Sept. 26, 2008), pp 12-18.]
Release Date: Sept. 22, 2008
Program No. 724
“The Program for World Economic
Recovery,” Pt. 1
For years, Lyndon LaRouche
has warned us that the
LaRouche: “There’s been nothing like the crisis that
faces us today, since a comparable crisis in
The problem with our economy, is that “from 1967-68 until today,
measured in physical productive output—not money—the United States
has been declining in economic power, physically per capita, per square
kilometer, over every year, under every Presidency. There has been prosperity
for some, in terms of money, but there was no improvement in our
infrastructure; we’ve lost industries.”
What are the remedies?
1. Keep
homeowners in their houses. No evictions. Make arrangements to manage the
downsizing of the mortgage debt, most of which is fraudulent to begin with.
2. Keep
essential banking functions going. Restore Glass-Steagall.
Set 4% as the basic lending rate, except for government projects which are in
the national interest, certified by the Congress, which would have a lower
rate.
3. Approach
“We need a mobilization of the productive power of the United
States, which is largely machine-too-design and related things, to build our
infrastructure, to re-build our manufacturing,” so we can build our way
out of this collapse: transportation systems, especially magnetically-levitated
rail; water management systems, to replenish our dwindling fossil reserves, and
protect our cities; electrical power generation and distribution systems,
primarily nuclear. And we will use this new productivity to re-build the world.
Mr. LaRouche closed on “the danger that somebody in the White
House is going to think about calling the troops out to suppress the
population, if they don’t like the vote they think they’re going to
get from the second vote in the House of Representatives. People have to
understand that. You’ve got fascism in this country, right now. And the
center of fascism is right in the White House.” Only if the American
people make it clear, that they will not tolerate this, will Congress be made
to do what is right.
[For a complete transcript of the webcast, see EIR magazine, Vol. 35, No. 40 (Oct. 10, 2008), pp. 4-39.]
Release Date: Oct. 13, 2008
Program No. 725
“The Program for World Economic
Recovery,” Pt. 2
For years, Lyndon LaRouche
has warned us that the
From the Discussion Session:
Questioner #1: “People like former Treasury Secretary Robert
Rubin, Larry Summers, and others among us, have been engaged in international
discussions for a new financial architecture, precisely along the lines of what
you have proposed, [but] they all insist that this bailout must come first, in
order to give leaders time to act. Your comments?”
Questioner #2: “I know first hand you’re right, that
the Russians favor talks that would include the
From a Democrat member of the U.S. Senate: “In trying to
decide how I would vote tonight [on the stimulus package], I asked my friend
[former World Bank economist] Joe Stiglitz what he
recommended. He said there were a variety of reasons why the [Treasury
Secretary Henry] Paulson plan would not and could not work, but recommended I
vote yes, as essentially a very expensive way to buy the time needed for us to
reorganize and re-regulate. Clearly you disagree. If the measure passes, is it
true that we pass a point of no return?”
From another Democrat member of the U.S. Senate: “When FDR
addressed the banking crisis in the 1930s, he made no bones about the fact, that
building our way out of the Great Depression would carry with it hardship for
the population. I’m inclined to vote against the bailout, but I
don’t want to lie to my constituents and tell them I have a painless
solution, especially when we do not. What is the pain threshold of your
proposal?”
From 17 freshmen members of the U.S. House of Representatives:
“Taking direction from you, we’ve studied the period from 1932 on,
and it does seem that FDR’s approach would work [today]. Why is there so
much opposition to an FDR solution?”
From a staffer to a Democrat member of the House of
Representatives: Three questions: How would a two-tiered credit system prevent
runs on banks? What is the difference between bank liabilities and bank
credits, or assets? How would fixing exchange rates prevent speculative attacks
against national currencies?
[For a complete transcript of the webcast, see EIR magazine, Vol. 35, No. 40 (Oct. 10, 2008), pp. 4-39.]
Release Date: Oct. 20, 2008
Program No. 726
“The Program for World Economic
Recovery,” Pt. 3
With Congress’s betrayal to Wall Street, Mr. LaRouche has,
once again, repeated his warnings of a descent into the abyss of New Dark Age.
Program 724 featured all but 10 minutes of Mr. LaRouche’s opening remarks
to an event sponsored by the LaRouche Political Action Committee in
· From the
editor-in-chief of a major policy journal in Washington, formerly a columnist
for Business Week: How does the
Federal Reserve manage to pump trillions of dollars into Wall Street to prop up
the faltering investment banks, to the detriment of the taxpayer? How is what
the Federal Reserve Bank doing, by lending money to banks through repurchase
agreements, credit auctions, or other methods, different from what Treasury
Secretary Paulson is telling the public what he is doing?
· From a
political consultant and pollster: “A good number of House members voted
‘no’ on Monday because they feared what their constituents would do
to them if they didn’t. Couldn’t this lynch mob environment also be
dangerous?”
· From someone
in the audience: “When do we take to the streets?”
· From a black
State Senator: “Watching the way that the government is responding to the
current crisis, I’m beginning to wonder if black people shouldn’t
begin to worry about attempted genocide.”
· From a PRD Congressman in
· From another PRD Congressman in
· From an
· Composite
question from former Hillary Clinton campaign activists: “Where are the
real leaders of our Party? Why are they not speaking out? Surely, somebody
besides you has some idea of what to do.”
· From a
Democratic strategist: Please comment again on your statement after the
Democratic and Republican Conventions that the candidates of the moment were
not necessarily the candidate’s we’d have when we went to the polls
in November.
· Composite
question from members of the LaRouche Youth Movement: “Given the disaster
that the two leading candidates represent, how do we make policy through the
broader institution of the Presidency.”
[For a complete transcript of the webcast, see EIR magazine, Vol. 35, No. 40 (Oct. 10, 2008), pp. 4-39.]
Release Date: Nov. 10, 2008
Program No. 727
“The Last Chance for Civilization?”
Pt. 1
On Nov. 1, 2008 Lyndon
LaRouche issued what he called the “November 11 Resolution,” in
which he presented the indispensable measures to be taken in the face of the
now hopelessly bankrupt world monetary system. He issued this Resolution as a
discussion document for a private meeting to be held on that date, in
Featured in this edition of The
LaRouche Connection, are Mr. LaRouche’s opening remarks to the
international webcast event in
LaRouche: “What we’re involved in today, is a general
breakdown crisis of the world financial-monetary system. There is no possible
rescue of this system, as such. If you try to rescue it, you will lose the
planet. You have to choose: Replace the system, or get a new planet. I think
any sane person would say, ‘Keep the planet.’”
With the current system bogged down in more than a quadrillion dollars of speculative
currency—more wealth than the world contains—there is not enough
money to cover the demands of this currency. We’ve gotten to the point
where we’ve got to sacrifice the currency claims or sacrifice the real,
physical economy.
The
Mr. LaRouche then takes his world-wide audience (listening in via
the world-wide web), through what is required to be done at this point: put the
whole shebang through bankruptcy reorganization. The
[For a complete transcript
of the webcast, see EIR magazine,
Vol. 35, No. 47 (Nov. 28, 2008), pp. 4-39.]
Release Date: Dec. 8, 2008
Program No. 728
“The Last Chance for Civilization?”
Pt. 2
On Nov. 1, 2008 Lyndon
LaRouche issued what he called the “November 11 Resolution,” in
which he presented the indispensable measures to be taken in the face of the
now hopelessly bankrupt world monetary system. He issued this Resolution as a
discussion document for a private meeting to be held on that date, in
During this brief, but crucial time, Lyndon LaRouche shook the
world, as can be seen, in part, by the participation of members of
President-elect Obama’s transition team in the discussion following the
webcast, and by the questions and comments which poured in from across the
globe.
Featured in this edition of The
LaRouche Connection, is the conclusion of Mr. LaRouche’s opening
remarks to the international webcast event in
From the Discussion Session:
· From someone
at a well-known Washington, DC policy journal: Given that nothing positive was
going to come out of the G20 meeting, and the follow-up meeting is now
scheduled for way out in April, 2009, could the initiative for a four-power
agreement come from somewhere other than the U.S., such as Russia?
· From someone
with the Obama transition team: Please address both the bankruptcy vs. bailout
issue; and also indicate what you see is the viability of the American auto
industry.
· From another
person with the Obama transition team: “The first 100 days of
Obama’s Presidency: What would your order of battle be?”
· From an old
friend from
· From Manuel Frias,
a prominent engineer in
· From a group
of state legislators, who had introduced the Homeowners and Bank Protection Act
(HBPA) in their state legislatures: State Sen. Constance Johnson (Oklahoma City, OK); State Sen. Joey Pendelton
(Hopkinsville, KY); State Rep. Jameela Nashid (St. Louis, MO): What should we do in terms of
the HBPA, considering it has been blocked by Speaker of the House Nancy Pelosi;
what remedies are there for state governments, where you have growing
unemployment, and huge deficits?
[For a complete transcript
of the webcast, see EIR magazine,
Vol. 35, No. 47 (Nov. 28, 2008), pp. 4-39.]
Release Date: Dec. 15, 2008
Program No. 729
“The Last Chance for Civilization?”
Pt. 3
On Nov. 1, 2008 Lyndon
LaRouche issued what he called the “November 11 Resolution” for
a private meeting to take place on that date, in which he presented the
indispensable measures to be taken in the face of the now hopelessly bankrupt
world monetary system. He identified the period between Nov. 11-19, as decisive
for forcing a change in policy, at least among a leading group representing the
institution of the U.S. Presidency. During that 9-day period, in addition to
the Nov. 11 meeting, Mr. LaRouche gave an international webcast on Nov. 18, and
a second private meeting on Nov. 19.
Featured in this edition of The
LaRouche Connection, is the conclusion of the discussion session of the
international webcast event in
From the Discussion Session:
· From a group
of state legislators, who had introduced the Homeowners and Bank Protection Act
(HBPA) in their state legislatures: State Sen. Constance Johnson (Oklahoma City, OK); State Sen. Joey Pendelton
(Hopkinsville, KY); State Rep. Jameela Nashid (St. Louis, MO): What should we do in terms of
the HBPA, considering it has been blocked by Speaker of the House Nancy Pelosi;
what remedies are there for state governments, where you have growing
unemployment, and huge deficits?
· From someone
in
· From the Italian
Senate: Considering the fact of Mr. Obama’s election not being a solution
in itself, isn’t the best approach to try to influence him, so that it
will be possible to adopt the New Bretton Woods system?
· From a
Chinese scholar: “You say Chinese workers are underpaid, and that the
Chinese government has underpaid them to compete in the global labor market for
cheaper production costs. But, raising labor costs has already made many
companies bankrupt, so how do you take care of the unemployment issues of the
Chinese population?”
· From an
economist and a banker from the U.S. Southwest: “Is it still your view
that this bailout package, the pumping of money into the financial system, that
we’re still on the verge of a hyperinflationary explosion?”
· Feride Gillesberg (
· From a young
Classical artist in the heart of
[For a complete transcript
of the webcast, see EIR magazine,
Vol. 35, No. 47 (Nov. 28, 2008), pp. 4-39.]
Release Date: Dec. 22, 2008
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