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LAROUCHE WEBCAST
The State of theUnion: A.D. 2011Lyndon LaRouche delivered this webcast address, his first of the New Year,from Northern Virginia, on Jan. 22, 2011. Debra Freeman, LaRouche’s na-tional spokeswoman, was the moderator. (The webcast is archived at http://www.larouchepac.com/webcasts/20110122.html)Debra Freeman: Good afternoon Ladies and Gentlemen. On behalf of LaRouchePAC, I’d like to welcome all of you to this afternoon’s event. It is traditional in the United States, that around this time, the President deliv-ers a State of the Union address, and that address traditionally outlines the prospects for the nation, and because of the importance of the United States, very often, the prospects for the world, in the period immediately ahead.However, things being as they are, I don’t really think that we can expect that kind of an address from Barack Obama. Yet, given the depth of the crisis, both the crisis in our own nation, and the crisis internationally, it were imperative, that, in fact, a State of the Union be delivered. It’s neces-sary for the citizens of our country; it’s necessary for governments all over the world.And so, without any further ado, I’d like to introduce to you the person in the United States who’s best suited to give that address, Lyndon La-Rouche.Lyndon LaRouche:Thank you! Thank you. Thank you.We have now entered a period of hyperinflation, inside the United States. It’s also going on internationally, which means that people who are talking about adjustments in policy, during the coming months, or the coming weeks, months, whatever, are not in the real world. I happen to know that most of the Democratic Party leadership, which has been meet-ing and discussing things this past week, have no idea of what’s about to hit them, and therefore, are debating matters which are actually irrelevant. That the usual things, the assumption, for example, that this President can remain to be the incumbent President, for more than fairly short period of Feature EIR January 28, 2011
Lyndon H. LaRouche, Jr. delivers his State of theUnion webcast on Jan. 22. Below: The team of sixLaRouche Democratic Congressional candidatesjoins an ovation. They were introduced to theaudience later in the webcast. Left to right: KeshaRogers (Tex.), Bill Roberts (Mich.), Dave Christie(Wash.), Rachel Brown (Mass.), Diane Sare (N.J.),and Summer Shields (Calif.).
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time remaining, which is a very pop-ular belief among Democrats, even those who despise this President, is a gone bunny. Because if you’re going to have a United States, he’s going to be gone. If he’s not gone, you’re not going to have a United States. That’s where we are.So, we’ve come to a time, where this useless creature, or worse than useless creature, called the President, is about to leave office soon, be-cause we are now in a period of a rate of acceleration of international inflation, which is approaching that of what hit Germany in 1923. We’re in, already, a 1923 type of syndrome. Any government that continues the policy of this President, or policy under this President, is a doomedgovernment, this year!Now, we don’t have to have a doomed government. All we have to do, is get rid of this President. If you don’t get rid of this President, you’re not going to have a government. It’s that simple. The Democrats have to come to understand that. If they’ve got any interim plan for accommodating to this President, they’re wasting their time. Realitywill not allow that to happen.Just what do you think the Germans were thinking in Germany in 1923, during the Summer and Autumn of 1923? Something quite similar to what many Demo-crats, for example, are thinking out there, what many people are thinking wishfully out there, today. We do not have a long time to play around with this thing.January 28, 2011 EIR
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However, on the other hand, there is a narrow selec-tion of measures which are appropriate to this problem. It is possible, within a short period of time, to change this situation, beginning with the Glass-Steagall action; the actual, original Glass-Steagall being reenacted, at some time during the weeks, or so forth, ahead, would be sufficient to open the gates, for alternatives for re-covery, not only in the United States, but because of the United States, the planet.The other qualification is this. There are certain fea-tures of the United States, its system, its legacy, which is not replicated in any other part of the world. For ex-ample, if the United States were to go under, Europe is doomed, automatically. If the United States and Europe are doomed, the entire trans-Atlantic region is doomed; if the trans-Atlantic region is doomed, then Asia is doomed. And you’re talking about a long dark age, with a very deep-going depopulation of this planet.So, the time has come: You can no longer postpone, you can no longer make accommodations, and there-fore, the kind of State of the Union address that’s re-Feature
quired, has to deal with a very limitednumber, but cru-cial options, which will save this nation, and make possible the saving of civilization.Now, therefore, for this occasion, this is not the time for a discussion of options—one guy debates this, an-other guy debates this, another guy debates this. There’s no room for debate, in the ordinary sense of debating policy. There are certain policies that must be put through now, or the United States goes to Hell. And if the United States goes to Hell, the world goes to Hell.That’s reality. And this current President has no rel-evance in the future of this nation, or of this planet. There’s no way that this nation can survive under the continuation of this President in office, and I need not specify more than orally, here, that he should be thrown out of office, on the 2th Amendment, section . He’s eligible, he should have been thrown out of office, now! If he’s not thrown out of office—and he will have to be thrown out of office—there is no United States! The existence of the United States, and the role of Obama as President of the United States, have come to a screech-ing halt, now!Right now, you’re in a state, where any accident in the economy, can cause a general chain-reaction col-lapse of this world economy, starting in the United States—or someplace else. Brazil is ready to go! Rus-sia’s on the edge of going! You think the British are powerful? Yes, the British are controlling the planet, politically, through groups like the financial group, the Inter-Alpha Group. That group does control the inter-national financial system! But that financial system, itself, is what must be gone, if the world is to survive. So that’s the kind of situation we’re in.And therefore, on this occasion, I shall open my re-marks by reading—something I usually don’t do on an occasion like this—reading the text of my own draft statement. Because this is a period in which argument is irrelevant. There are certain specific things, which must be done in a specific way, and in a specific sequence, if we are to save this nation. Therefore, this must be pre-cise. This is not a matter of opening a discussion of a broad-ranging debate. This is layingdown exactly, as ifit were a military plan of operation, in warfare, a pre-cise program for getting the United States out of thisalive, and now!And therefore, I shall read this, shall we say, word for word, in order to put this on the record. Because the issues which I am presenting are not inherently debat-able. They are discussable, but the argument is not de- Feature
batable. The argument must be discussed, because it’s the only chance we have, to save this nation, and to save civilization.Okay, I shall read as follows:
I. The CrisisAt this present moment, we are now at the breaking-point at which civilization throughout our planet is wobbling at the brink of what could probably soon be, the greatest crisis of humanity since Europe’s Four-teenth-century plunge into an new dark age. At this moment, the cause of today’s crisis of civilization, is centered within the British Isles. But, the crisis itself reaches throughout Europe: from Portugal to, and throughout Russia. It is a crisis which has been steered, by the British empire’s often controlling political inter-ference into the functions of our government.Fortunately, there are still moments of opportunity for changing all this during the very short time ahead; but we can not wait longer than that. The brief opportu-nities to rescue our republic exist only if we find leaders who show both the needed wisdom and courage to act immediately.The needed current strategic reality is as follows.Right now. Since the beginning of 2011, the world as a whole has been now gripped by accelerating rates of price-inflation, in a pattern which is already, com-parable, as a pattern, to the Weimar Germany hyper-inflationary blow-out of 1923.A world-wide spread of a breakdown-crisis, is now accelerating. Nothing but our United States, if it comes to its senses, could stop this crash’s leading into a threat-ened, planet-wide “new dark age.”Simply said: Either the 1933 Glass-Steagall law is put into operation again now, without any change from the original, or our United States is doomed. In fact, the entirety of this planet would be taken down, chain-reaction-style, in the same process. No action but the immediate restoration of the 1933 Glass-Steagall law, and nothing different than that, will enable our republic to defeat the crisis of the immediate period ahead.There had been remedies for this crisis at some time earlier, but those options have been wasted by the Pres-ident and the Congress so far. Either that pattern of ob-struction of urgently needed measures, will be reversed now, or there will soon be no United States, nor much of the rest of the planet, either. This breakdown-crisis is EIR January 28, 2011
rapidly accelerating, now.I have never erred in any forecast which I have issued since my Summer 19 forecast of a major re-cession to strike somewhere in a short interval between late February and early March, 19. That 19 crisis came like an earthquake when it happened. That crisis came exactly on time, as I had forewarned. I had not made a “market forecast;” I had made a carefully crafted reading of inside technical information on the inner workings of the automobile marketing industry; statis-tical forecasting is for failures.That said, turn our attention to the present world crisis.To the extent that certain circles inside the United States had acted, since the Autumn of 200, in opposing my Homeowners and Bank Protection Act of 200, as that opposition to my action from inside the Congress itself, was led by such as Representative Barney Frank, all of whom were acting under the guidance provided to Presidents George W. Bush, Jr. and Barack Obama, it has been those two Presidents who have been chiefly responsible, however, together with their unconstitu-tional “signing statements,” for the actual launching of what is now rapidly becoming the greatest, and most worthless financial bubble in the known history of man-kind. Our United States, too, would be destroyed, in-evitably, were we to permit a continued support for the so-called “bail-out” policies which were wrongfully unleashed by the combination of those two failed choices of Presidents, as also by the role of the most recent two heads of the Federal Reserve System, Morgan stooge Alan Greenspan, and Ben Bernanke, and, now, the shameless Timothy Geithner.As a result of the bail-out, a world-wide, hyper-inflationary time-bomb is about to blow, now.If that “bail-out” policy is permitted to continue, it will blow out the nations of the world, probably the trans-Atlantic region first, and, barring exceptional new developments, Asia second, with the imminent disinte-gration of that hopelessly bankrupt British monetarist system, which is known variously, either as the “Inter-Alpha Group” or its doomed subsidiary, the “BRIC.” That British Inter-Alpha Group has been the chief causal factor, since 191, in the presently onrushing hyper-inflationary disintegration of the trans-Atlantic region, and, therefore, the principal source of the cur-rent threat to global civilization generally.Unfortunately, although the leading Asian nations, such as China and India, have been relatively compe-January 28, 2011 EIR
tent in the conduct of their own affairs, especially as compared to the trans-Atlantic sector, even the great Asian nations could not withstand the ricocheting ef-fects of a presently careening, general hyper-inflation-ary blow-out of the trans-Atlantic group of nations.That ultimate breakdown associated with the cre-ation of the Inter-Alpha Group is in progress now; so, it must be stopped now. Go back one crucial step earlier, to the crisis developments which led directly into the 191 crisis.
The Factor of the Kennedy AssassinationThe present condition of world-wide financial crisis, which has dominated this planet in the present form since the August 191 cancellation of the Bretton Woods system, was, in large part, made possible by the effect of the earlier assassination of President John F. Kennedy. That assassination had enabled the launching of a worthless and ruinous war in Indo-China. That war had been a war even more ruinous in its ugly effects on the citizenry and youth of the United States, than on the Southeast Asian field of battle.This war was not the fruit of an honest error. What had been done was according to a war-plan denounced by President Kennedy and General Douglas MacAr-thur, a war which ruined us, not only economically, but also morally. It was a war which could not have oc-curred without both the assassination of that President and the ensuing, frantic effort, in some leading circles, to prevent any serious public investigation of an assas-sination which coincided, in several respects, with what had been, already, the repeated efforts from Spain-based fascist operations against France’s great President Charles de Gaulle.The Warren Commission was, thus, the actual turn-ing-point, since which our United States has gone down, down, and down, even despite that great space achieve-ment which had been set into motion by that murdered President.Despite all that, still today, our U.S. Federal Consti-tution still equips us with a still lingering remedy for this present world economic crisis-situation; but, unless the original 1933 Glass-Steagall law is now immedi-ately restored by our United States, very soon, as the highest priority of our government’s actions now, there is no chance that our republic would now survive under its present Constitution; these United States could not outlive the presently accelerating hyper-inflationary bubble being orchestrated against us by London and Feature
London’s Wall Street appendages. In that case, no part of the planet will escape the full force of the greatest, British-led process of “creative destruc-tion”-orchestrated, hyper-inflationary collapse of civilization, in known modern history since the 18 Peace of Westphalia.What is inevitable is, in one way or another, the collapse of a presumed trillions of what are, essentially, financially fictitious U.S. dollars of debt attributed to “bail-out” operations, whichwill never be paid, simply because “play money”debts could never could be actually paid, how-ever willing, or powerful the fool who attempted to carry out such an intrinsically hyper-inflation-ary bail-out.The reason for that paradox is elementary.Those kinds of debts created by these so-called “bail-outs” could never be repaid since they are, intrinsically, fraudulent debts, intrinsi-cally unsecured debts which are represented by the proposed bail-outs of what are, at the end of the day, purely fictitious gambling debts; they are debts which represent no corresponding, intrinsi-cally physical form of either present or future, ac-tually physically efficient form of economic value.In this paradoxical situation, Glass-Steagall Kansas City Star/S.J.Raywould have two most notable effects. It will wipe President Roosevelt’s push for Glass-Steagall and other crucialout those fictitious debts, which are merely “gam-legislation, during the first 100 days of his Presidency, brought theblers’ debts;” the gambler has lost the nominal Constitution’s founding principles to bear to solve the emergencyvalue of a debt for which no present or future facing the nation.wealth would, or could be actually created. Glass-The British ArgumentSteagall would solve this paradox, as President Frank-It is necessary to emphasize here, that I acknowl-lin Roosevelt had overcome the lunacies of Presidents Coolidge and Hoover in 1933, which he did, by a single edge that any survival of the U.S. economy, would stroke of our Federal Constitution’s already existing, mean the general bankruptcy of that already hopelessly intrinsic law. Glass-Steagall now, as then, would thus bankrupt, so-called “Inter-Alpha Group,” aka “BRIC,” a grouping which forms the present financial-monetar-clear the way for refinancing the states and their princi-pal communities which had been looted under the poli-ist basis for the British monetarist empire-in-fact. This cies of Presidents Bush and Obama, and would serve as is a monetarist system which has ruled over Europe, the basis for the launching of the greatest physical-eco-during most of the periods since the formation of the nomic recovery program ever conceived by man, Roman Empire, the empire which was launched by the NAWAPA.concert of Octavian and the priests of the cult of Mithra, The hard fact remains, that either those mere gam-in their negotiations on the Isle of Capri.1 The British bling debts are to be written off for the purely fictitious “gambling debts” they are, or there will be no United 1. Notably, the order to his nominal son-in-law, Pontius Pilate, for the States, but a lot of very, very dead Americans. The crucifixion of Jesus Christ was uttered by the Emperor Tiberius from means to stop this are available; they are called “Glass Capri, a key to the mass murders of Christians by the Roman emperors into the time of Constantine.Steagall, or also named “NAWAPA.”8 Feature EIR January 28, 2011
empire of today still exists as of yore, as the present in-carnation of that legacy of the maritime system of fi-nancial empire established by Rome at Capri, as contin-ued through the reigns of the monetarist systems of Byzantium, of the old Venice system, and of the New Venetian system of those followers of what is properly known as the “New Venetian Liberalism” of Paolo Sarpi, a scheme which secured the turn of the English throne into what was turned a British empire with the invasion of England by the “New Venetian Party’s” William of Orange.It has been, chiefly, the threatening British objection to a U.S. re-enactment of Glass-Steagall, which has threatened to block the Obama White House’s willing-ness to give lackey-like elements in the U.S. Congress permission to vote up the otherwise popular demand for a restitution of the 1933 Glass-Steagall law. Therefore, it is necessary to state clearly the conditions under which not only the United States, but even the United Kingdom’s own economic survival will depend upon the great reform which depends on restoring Glass-Steagall conditions.
dent or a U.S. Congress of the United States. So, what if the leading financial speculators of the world go belly-up financially; the human species will have lost less than nothing, and might find consolation in a form of security provided by the honest employment which we will encourage be afforded as decent opportunities, instead of the international drug-trafficking and usury which the United Kingdom has maintained over now more than two centuries, as the British monarchy has shown such stubborn affinities up to present-day role in Afghanistan.
Glass-Steagall: How Our Constitution WorksTo understand our Federal Constitution’s economic provisions for a crisis of the present type, there are two most crucial points in our history which demand the leading attention of all among our actual patriots at this moment.The first is, that the precedent for our U.S. Federal Constitution, is to be located within the implementation of that originally uttered Royal Charter which launched the Massachusetts Bay Colony as a sovereign entity under the authority of the English Kingdom at that time. This charter was employed by the leaders of the Colony, such as the Winthrops and Mathers, as the authority for the creation of a credit system for the Massachusetts colony, rather than a monetarist system of the European type then, as now, still today.That constitutional principle is not a matter of merely ordinary law; it is the expression of a universal physical principle, a truly constitutional quality of prin-ciple on whose observance the continued existence of our republic now absolutely depends. To oppose that principle, is to attempt to destroy our republic by means which would be tantamount to treason; in this case, it would be submission to the will of a foreign power, the international drug-trafficking British Empire since the 190s, which is precisely the intention behind President Nixon’s cancellation of the Bretton Woods agreement at the urging of such as Arthur Burns, George Shultz, et al., acting under the failed President Richard Nixon, at that time.The historical evidence is, that the cancellation of the Massachusetts colony’s sovereign powers, essen-tially as by the New Venetian Party’s tyrant William of Orange, left the London-betrayed tradition of the eco-nomic policy of Massachusetts, one to be continued by successors such as the former Boston man, Benjamin Franklin, who presented the utterance of a paper cur-Feature 9
The British BankruptcyIf all the banks of Britain and its like were to be caused to vanish in a grand flop on the next morning, Britain would be better advised to learn its lesson, than to block a Glass-Steagall revival. We must suggest, most strongly, that the United Kingdom should now come to its senses in this matter.What if all the banks of the United Kingdom, and also the “BRIC” are wiped from the scene, would the United Kingdom itself need to die, too? Could it not survive, albeit in the more modest and much more ap-propriate role as a sovereign nation-state minding its own nation’s business, rather than its long-standing, but deplorable present habit, of meddling in the troubles of others (troubles which it did much to cause, as contrib-uted by the case of the unfortunate British lackey George Soros)? A salvaged set of U.S.A.-style com-mercial banks could be created, by international agree-ment, to protect and promote the general welfare of citizens of a republican United Kingdom just as Glass-Steagall protects our own United States. If not the United Kingdom, or, if so desired, a pair of neighboring sovereigns such as Scotland and England.The British influence on a problematic President such as Barack Obama, is not to be tolerated any longer as a legitimate expression of the functions of a Presi-January 28, 2011 EIR
fore, the essence of this crucial matter must be spelled out here, as follows. Our nation’s life,and perhaps your own, depends upon the citi-zens’ adopting the fact of this knowledge.It must be emphasized here and now, that there is a difference between a mere ordinary law, and a law premised upon a demonstrably truthful expression of a principle of nature, a de-monstrable principal of what is properly con-ceived to be constitutional law, rather than a merely customary principle of law, as the latter inferior, regrettable notion of law is typical of the parliamentary traditions of Europe thus far. The notion of the German constitutional court is a notable case of an implied attempt to maintain that distinction respecting ordinary law-making and a fundamental principle of law implicitly embedded in our own Federal Constitution. The argument presented by Alexander Hamilton, shows the meaning of that distinction of true principle from merely a more or less arbitrary caprice in legislating in law, a distinction from that which, quite clearly, corresponds to the proven virtues of actual historical experience of mankind’s best nature, such as that which in-spired the original colonists of Massachusetts, Alexander Hamilton and Benjamin Franklin confer at the signing of theprior to the invasion of the British Isles by the U.S. Constitution (detail of painting by Howard Chandler Christy). The20-by-30-foot work was commissioned during the FDR years, in 1939, inso-called “Liberalism” of the imperial New Ve-observance of the 150th anniversary of the Constitution. It is displayednetian Party’s William of Orange.in the U.S. Capitol.Hamilton’s argument for the existence of a Federal Constitution is fairly summarized in rency as the proposed instrument of a credit system, effect as follows.and the man who became the virtual author of our re-public.The Setting of Hamilton’s PrincipleThe victory of the United States over the British The second principal consideration, is that the im-mediate authority for the credit policy of our U.S. Fed-imperial tyrant, was accomplished with the aid of the eral Constitution, as opposed to a monetary policy, leading nations of continental Europe at that time. came into being through Hamilton’s initiative on this France was the leader in providing this assistance. The account, aninitiative which served as the cornerstonekingdom of Spain then joined France in the role as an for crafting the entirety of the design of our originalally of our United States. In addition, powerful forces, Federal Constitution.headed by the role of Russia’s Catherine the Great in Today, Hamilton’s role in the crafting of that Con-the League of Armed Neutrality, together with the stitution has become a rarely known story; yet, as a conscience of many in the British Isles, all joined in matter of practice, it is of cardinal importance for any aid of the cause of our struggle for liberty, which was U.S. citizen today, or, therefore, for any person intel-seen by them as their cause for freedom from the lectually competent to hold Federal office still today. rapine inherent in the outcome of that Seven Years Unfortunately, few elected officials of our republic have War which had been unleashed through the schemes competent knowledge of this central feature of princi-which that New Venetian Party of England, and the ple in the design of our constitutional republic. There-Netherlands, had already ensconced in England during 10 Feature EIR January 28, 2011
the reign of William of Orange.However, from the time of the role of the British East India Company’s Lord Shelburne in the launching of the British Foreign Office, from 182 onwards, Brit-ain was enabled to replay the kind of role in Europe which history witnessed in the run-up to the French Revolution and those Napoleonic wars which were or-chestrated as an echo of the model of the British East India Company’s orchestration of the so-called “Seven Years War” of 1-13.Once Napoleon had been chastised with the defeat of his attempted invasion of Egypt and the Levant, Na-poleon changed wives, dumping the Josephine associ-ated with the pro-Ottoman alliance against the Habsburgs, and was given a Habsburg princess as a wife instead. Napoleon, thus married to a new fate, then led the wars throughout Europe, which wrecked France and continental Europe, all done to the not exactly kindly intentions of that British monarchy and Prince Metternich who created the infamous peace which im-perial London and Metternich imposed at Vienna upon a defeated set of the nations of Europe. As former Chan-cellor Bismarck had foreseen on the verge of World War I, that war, would be, as Napoleon’s rape of conti-nental Europe had been, “a new Seven Years War.”Do not ridicule the French on account of King Louis XVI’s, and the Emperor Joseph II’s foolish reactions to the British Foreign Office-orchestrated affair of “the Queen’s Necklace.” We of the United States, sometimes repeated exactly the same mistake which most of Europe had made in the so-called “Seven Years War” of 1-3, and France in the Napoleonic wars. We did so in the regrettable Polk’s own Mexican war, and in our own lunatic plunge into a virtual decade of useless, bleeding war in Indo-China, following that assassina-tion of President John F. Kennedy which prepared the way for the U.S. entry into the prolonged Indo-China war against which both President Kennedy and General Douglas MacArthur had warned.The Soviet Union made the same mistake in its sucker’s move into Afghanistan, which became the downfall of the Soviet system, and we have made the same mistake, again and again, as under the corrupt in-fluence of Britain’s perennially lying Prime Minister Tony Blair in the 2003 launching of an Iraq War which has not really ended yet, but is merely on the road to a new war of British concoction, the war through which the United States would follow the former Soviet Union’s precedent, by defending the British opium traf-January 28, 2011 EIR
fickers in Afghanistan, with the prospect of a new re-gional war yet to be set off, with British instigation, and the Obama Administration’s convoluted consent, against Iran.So, the British empire uses such puppets as former Prime Minister Tony Blair’s nasty, current favorite, the narcissistic and vicious President Barack Obama!From the time of the fall of France into the Revolu-tion and the Napoleonic Wars, our United States’ very continued existence remained in peril until the surro-gate victory over the British enemy led by President Lincoln and both the Lincoln Administration’s end of the British system of slavery and the launching of our United States to its greatest accomplishments on a world scale. Under President Lincoln and his legacy, our United States emerged as the greatest, virtually continental nation which the world had seen since the qualified precedent of the work of Charlemagne in the development of the continent of Europe for as long as he had lived.So, there we were, when the decline of France over the interval 182-189, brought us from a state of cau-tious triumph as a republic, into the time of the peril which the French Revolution expressed. Our former hero, Thomas Jefferson, went essentially mad, during this time, as did other leaders who, like Jefferson, re-turned to their senses during the times of President Monroe’s and John Quincy Adams’ leadership of our republic. It was in this process of that interval, 182-189, that the genius of our great republic had showed itself, a genius expressed by the creative insight of Al-exander Hamilton in his own time, an insight which led into the principle used for the creation of our Federal Constitution.
Hamilton’s Principle as SuchThe once-victorious states of the United States, once the victory over the British had been secured, had found themselves buried in a war-debt incurred by the respec-tive former colonies. Hamilton’s genius saved the United States, as the same principle, expressed by the re-enacted Glass-Steagall law of 1933, would save our United States, again, today—if we acted to force through that reform, whatever that requires, immedi-ately, now.By creating a Federal Constitution, one designed under the great guiding, inviolable principle of the pres-ent Federal Constitution’s general welfare clause, all of those elected officials who oppose that constitutional Feature 11
principle affirmed as the Preamble of that Constitution, are morally obliged either to change their opinion, or leave office out of a desire not to pollute our govern-ment with their unwholesome, misguided opinions.Hamilton’s turning our United States to national banking under a credit system, rather than a European type of monetarist system, provided the solution, a unique solution which sometimes influenced both Eu-ropean and some American states, in particular, but which rose to a more outstanding degree of durable quality than other leading nations to the present date. On that account, since 1, the British empire has sought to subvert and destroy us, from that time to the present day of the anglophile corruption expressed by such putative protégés of the most regrettable, lying, former Prime Minister Tony Blair as President Barack Obama.That principle of a credit-system, emphasized by Hamilton, rather than a typically European monetarist system, is the credit principle, a principle directly coun-terposed to the monetarist principle which was estab-lished as that principle of usury of the Roman Empire which is continued by the present British empire, and tolerated, still, among most of the nations of Europe and elsewhere, still today.That principle is also a moral principle, enshrined against that principle of monetarist usury which has
been employed to wreck our republic, as has been espe-cially notable since President Nixon’s implicitly trea-sonous, great criminality of August 191.The principle is elementary. It is the principle of the Pine Tree Shilling of the original Massachusetts Bay Colony. Honest debt to the future can be paid onlythrough honest creation of future physical and equiva-lent wealth, including the development of the relevantcreative powers of the individual citizen and also thechildren and adolescents of those families.Such debts of a credit-system must be paid by thefruitfulness of future production, as this principle wasalready understood by the Winthrops and Mathers ofthe original Massachusetts colony. Such debts requirethat the government delimits such accumulations ofdebt to the efficient commitment to promote that pro-duction. Such debt can be lawfully incurred only by adecision premised on a reasonable expectation of therelevant creation of the increased physical wealth, andof the increased physical productivity of the nation.Debts incurred on the account of financial speculationare not legitimate debts of a government.This describes, in rather plain language, Alexander Hamilton’s great principle asembedded in the subsum-ing intent of the Preamble of our Federal Constitution.Debts are good, when they are designed to be made good, as by a credit system based on a commitment to eyed capital, and answer all the purposes of cash. A plan which will not only advance the interest of the lenders, secure the independence of their country, and in its progress have the most beneficial influ-ence upon its future commerce, but be a source of national strength and wealth. I mean the institution of a national bank. . . .Industry is increased, commodities are multiplied, agriculture and manufactures flourish, and herein consist the true wealth and prosperity of a state. . . .’Tis ina national bank alone that we can find theingredients to constitute a wholesome, solid, andbeneficial paper credit. . . .It has ever been my opinion, that congress ought to have complete sovereignty in all but the mere mu-nicipal law of each state, and I wish to see a conven-tion of all the states, with full power to alter and amend, finally and irrevocably, the present futile and senseless confederation. . . .EIR January 28, 2011
Hamilton’s Credit SystemHere are excerpts from Alexander Hamilton’s letterto Robert Morris of April 30, 1781, while the Revolu-tionary War was still ongoing, the public till wasempty, and a national government essentially did notexist. He proposes a national bank and the conveningof what later would become the Constitutional Con-vention. Emphasis is in the original.. . .To surmount [obstacles to securing domestic loans to the government], and give individuals abil-ity and inclination to lend, a plan might be devised which, by incorporating their means together, and uniting them with those of the public, will, on the foundation of that incorporation and union, erect a mass of credit that will supply the defect of mon-12 Feature
increase the creation of net wealth per capita, and per square kilometer of the territory of a nation. The famous Saugus Iron Works typifies the genius of successes which horrified the more backward, and often useless souls reigning jealously over England at that time.In practice, the success of the United States’ econ-omy has always lain, chiefly, in the production of those public works through which the increase of the physical productivity of the nation is effected, as it is measurable per capita and per square kilometer of territory. No true republic was ever a mere collection of parts; but is the summoning of diversity to the effect of an intended greater and better unity.Principal incidences of violations of that principle are notable for the case of the corrupt “environmental-ist” policies of the Confederacy-inspired President Theodore Roosevelt, the trained nephew of a Confeder-ate spy, James Bulloch, who had worked for Britain from London. There is the kindred corruption of fla-grant Ku Klux Klan backer and U.S. President Wood-row Wilson. There are kindred evidences against the similarly perverse views of Presidents Calvin Coolidge, Herbert Hoover, Harry S Truman, Richard M. Nixon, and Presidents George H.W. Bush, Vice-President Al Gore, and Presidents George W. Bush, Jr., and the virtu-ally would-be “Emperor Nero” of his time, Barack Obama.The entirety of the Federal Constitution rested upon that single conception which echoed the precedents set by such as the Winthrops and Mathers of the Seven-teenth-century Massachusetts Bay Colony, under the Pine Tree Shilling, as revived to be part of our Federal Constitution through the influence of Cotton Mather’s young protégé Benjamin Franklin and Franklin protégé Alexander Hamilton. Call it the legacy of President Franklin Roosevelt, who was the fully witting descen-dant of Alexander Hamilton’s ally, Isaac Roosevelt, who had been the founder of the Bank of New York es-tablished in opposition to the Manhattan Bank of the traitor and British agent of Lord Shelburne’s Foreign Office lackey Jeremy Bentham, the de facto traitor, as-sassin, and former U.S. Vice-President Aaron Burr.
at the Fed today, we will be doing nothing different re-specting principle of practice than President Franklin Roosevelt did in the 1933 promotion of that original Glass-Steagall law which saved the United States from Hell at that time, and which also served as the beacon of our national financial and related economic stability until the swindle of the Alan Greenspan-steered repeal of Glass-Steagall in 1999.That simple action of a Glass-Steagall revival now, will save the United States; any failure to resume that 1933 legislation will doom the United States to a very early general destruction. Those who choose one or the other option, earn the praise or hatred of the present citizens and their families of the United States accord-ingly.The debts known by such names as Alan Green-span’s concoction of “financial derivatives” are nothing different than “gambling debts.” They are to be treated as such. The assumption of such forms of debt is con-trary, pure and simple, to the clear intention of the Pre-amble of the Federal Constitution.Freeing the United States’ government of the grip of those essentially fictitious financial obligations to Wall Street, London, et al., immediately frees our Republic of that burden. The urgently needed recovery of the U.S. economy can, then, begin an initially slow and cautious, but accelerating rate of physical economic recovery to health and wealth, and to the halting of presently accel-erating, global entry into hyperinflation, all done from the moment the implementation of the original, 1933 Glass-Steagall law is put into operation.That return to the 1933 Glass-Steagall law, is the single decision on which even the mere continued exis-tence of these United States now depends, on which your own personal existence now depends, in fact. Any member of the legislature who has any different imme-diate intention, is being worse than a useless waste of time, and should, perhaps, either reform, or turn him-self, or herself in, for a more appropriate opportunity in employment.
The Remedy, Our RecoveryIf we simply cancel the mistakenly presumed obli-gation to pay the worthless debt represented by the op-erations led by former J.P. Morgan agent and later Chairman of the Federal Reserve System, Alan Greens-pan, and Greenspan’s muddled follower, Ben Bernanke, January 28, 2011 EIR
II. Glass-Steagall’s EffectsThe virtually instantaneous effect of the re-enact-ment of the original 1933 Glass-Steagall Act, is to rescue the Federal states of the United States from a presently accelerating slide down the chutes into other-wise virtually inevitable social-economic Hell. The Feature 13
“bail-out” of Wall Street and London ends, thus, with the restoration of the es-sential functions of the governments of the Federal states. We shall not sacrifice the citizens of our states on the altar of a Wall Street, or London’s Baal, as Presi-dent Barack Obama has done even far worse, thus far, than the wretched Presi-dent George W. Bush. Jr. before him.The ability to sustain the needed full measure of a recovery of each among the states, depends, in large part, on the “multiplier” effect of increasing the amount of Federally promoted employ-ment-incomes within the economy of each of the states. Every person so em-ployed, spends the income so promoted in expanding the market within the state’s President Roosevelt, Texas Gov. James Allred, and newly elected Rep. Lyndon B.economy, and in the freeing of our nation Johnson, in Galveston, Tex., May 12, 1937. In 1966, journalist Gordon Eliotof the direct and other, actually enor-White wrote of President Johnson’s interest in NAWAPA, in the Austin, Tex., likeAmerican Statesman:“. . . there are some signs that NAWAPA—or somethingmous costs of the breakdown of state and it—may be edging closer to serious study. President Johnson met Ralph Parsonslocal society under the wrongful, post-at a businessmen’s luncheon at the White House and has asked him back toAugust 200 policies of Presidents discuss the project. The President likes Texas-sized plans, and it is clearlyGeorge W. Bush, Jr., and Barack Obama, possible that he could recast NAWAPA as an administration project if and whenthe Viet Nam war is settled.”thus far.While all that is necessary must be Whereas, the brilliantly successful launching of the done, it not sufficient to repair the ability to sustain the benefits which must be returned to the Federal states. Tennessee Valley Authority (TVA) serves as a model of reference for the needed increase of the well-being The productivity of each of the states now depends des-perately upon a combination of Federal assistance and within and among the Federal states, we had, prior to the general increase of the productivity within each and and during the 19-19 U.S. warfare in Southeast all of the states. The ruin of the states by the Presiden-Asia, the avowed 19 intention, under President cies of George W. Bush, Jr., and Barack Obama repre-Lyndon Johnson then, to follow the intended conclu-sents a degree of incompetence by those Presidents sion of that war with the launching of what was known which is tantamount to treason in its effects. For the as NAWAPA, which would have solved all of the major, broader purpose, we require large-scale, long-term, sci-long-term power and water problems of not only the ence-driven and related investments in major public western states of the U.S.A., Mexico, and Canada, but works of long-term development, works which raise which would also have saved those territories from the the level of capital intensity and higher energy-flux-awful depletion and destruction of those and associated densities of applied sources of power across all of the regions of North America as a whole.states of the Union.President Johnson is not to be blamed over-much You need cuts? Cut the “bail out”! How? Simple! for his conceding to the pressures for the folly of Indo-Restore the original Glass-Steagall of President Frank-China warfare against former U.S. ally Ho Chi Minh.lin Roosevelt. Otherwise, our President is behaving as a Those policies which misled the United States into traitor, a mentally ill person, or, a lunatic, in effect. The its Indo-China war, had been launched by the British remedies for our distress exist in relevant changes in empire, in a moment of opportunity, following the death policy which begin with scrapping virtually everything of President Franklin Roosevelt. The British Foreign done by both the Bush and Obama administrations Office released the Japan soldiers then being held as since the end of August 200.prisoners of war, to resume their arms and to occupy 1 Feature EIR January 28, 2011
Indo-China until the time the British empire would bring French occupation forces back to take over the former colony.At the bottom of this business in Southeast Asia, the responsibility of the atrocity of sending our forces to die in the 190s and early 190s Indo-China war, lies with the role of those who composed, or merely sup-ported the notorious “Warren Commission” which cel-ebrated its British triumph over the assassination of President Kennedy. This deed was done in a way which must be marked down in history as the treasonous de-velopment which brought our republic into a state of ruin through a war which only the assassination of Pres-ident Kennedy had made possible.President Johnson was plainly terrified by the impli-cations of the Warren Commission “cover-up.”
Our Future: NAWAPAThis entirely feasible NAWAPA project will, among its numerous excellent effects, not only restore the presently endangered and increasingly wasted, west-ern states of the United States, but it will become the precedent for the remedying of the desertification and kindred waste-land effects of entire regions of the con-tinents of Eurasia, Africa, and South and Central Amer-ica. NAWAPA, for example, is fully designed in all its general features, to serve as a model for other great projects in Africa such as the Transaqua restoration of the region of Lake Chad, and for the realization of cer-tain developments of Siberia which are of strategically crucial importance for the future of large and other na-tions to the south of Russia, including China and India.Essentially, this prospect means that we are becom-ing the real United States, once more, as Franklin Roos-evelt had intended for a planetary group of respectively sovereign nations sharing a great common interest, once the so-called “Second World War” had been brought to its necessary close.Of this, there is much more to be said on this occa-sion.To realize the implementation of a great project such as NAWAPA, beginning now, compels us to put the Northeast region of our United States, also, back into full production, as much as the directly relevant west-ern part of the North American continent. The former automobile-industrial and related regions of the North-east and central states of the United States must build the systems needed to supply the great NAWAPA pro-January 28, 2011 EIR
gram with a great part of its own efforts. The skilled, but now unemployed machine-tool operatives, and others, who have been lately cast into the ruins of once great, productive states of the United States, must return to duty, to build the modern forms of rail, magnetic-levitation and other systems, needed in the eastern states of our region, to fulfill the great hunger of the NAWAPA and associated projects. That will be sufficient not merely to restore our national economy; we must launch leaps in progress of a type not seen since the death of President John F. Kennedy’s inspiration. NAWAPA provides us the largest chunk of the policy needed to do just that.It is fairly estimated, based on the original Parsons estimate for the mid-190s, that four millions jobs will be created in rapid pace for NAWAPA itself. However, the need to supply support for the installation of NAWAPA will demand an additional two millions or more new employment among such states as those from New England to St. Louis, in such forms as new railway systems, magnetic-levitation systems (especially for carrying heavy loads up to as much as five thousand feet), and the proliferation of productive employment in industries generally, all as stimulated by the markets created by NAWAPA.This will also reverse the drying out, presently in an advanced degree, of the watersheds of the Plains states and other grievous such shortfalls, through the increase of rainfall patterns across the continent, and will lead, in other respects, to the conquest of desert regions gen-erally, thus creating a more moderated climate, and an increase of the territory available for habitation and em-ployment.A short-term perspective for six millions new indus-trial and related jobs is a fair minimal prospect for the perspective based on NAWAPA. If we add return to an earlier nuclear power policy, the increased number of productive jobs caused by these measures, alone, would be seven millions.The urgently needed reform of our national econ-omy, away from Wall Street and kindred, purely waste-ful speculation, into forms of occupations less suited to the higher apes, and more to the stimulated, creative mental-powers of our productive citizens, is the only presently available alternative to what would be, imme-diately, a plunge of the planet in its entirety into a global dark age worse than that which Europe experienced, as a result of Wall Street-like, Venetian speculation, back during the latter part of Europe’s Fourteenth Century.Feature 1
III. TVA & NAWAPA: An AmericanTraditionIn certain crucial respects, the launching of the Ten-nessee Valley Authority (TVA) under President Franklin Roosevelt, typifies a principle which was reflected in the Parsons firm’s perfected design for NAWAPA. It re-verses the policy of economic waste and rot which that nephew-of-a-British-spy, President Theodore Roos-evelt, imposed upon the United States, a dirty duty done by that Roosevelt’s dirty British trick of forbidding any rational progress in the development of the U.S.A.’s western lands beyond the twenty-inch rainfall line.The most notable fact about this, is that Theodore Roosevelt was expressing the same treasonous inten-tion for the United States which is currently the official policy of Britain’s frankly pro-genocidal World Wild-life Fund.At that point, competent economic science inter-venes in protest against such mass-homicidal nonsense as that.The fact of the matter is, that human existence on this planet has depended upon drawing down a finite resource of mineral and other deposits left behind by, chiefly, forms of life from very long ago. As we deplete such relics of former types of life, the relative physical cost of employing that resource rises. This challenge, which is inherent in the role of life generally, has a particular sig-nificance for the case of human life. This means, in gen-eral, that the effective energy-flux density of human action, per capita and per square kilometer, must be in-creased, to more than offset the relative depletion of re-sources left behind by forms of life earlier. This means that the concentration of power, per capita and per square centimeter cross-sectional flow, must be increased con-stantly through scientific and related progress.This requirement can be satisfied, in a general way, only through increasing the relative energy-flux density of the sources of heat-power being utilized. So, man-kind had now reached the point in this process that na-tional economies can not continue to be maintained without increasing emphasis on nuclear-fission as a standard resource for power of nations per-capita and per square kilometer of territory. Indeed, we are pres-ently entering the phase at which increasing reliance on thermonuclear fusion must tend to predominate, as we see such trends in China now, and, also in India.In the meanwhile, we are now approaching the still-1 Feature
higher stage of cultures at which we must acquire and employ still higher forms of the equivalent of “heat-power.” Reducing the size of the population is not a solution; indeed, since the complexity of higher forms of power requires an increased number of the educated human population, there is no sane policy for mankind but that of rising to successively higher levels of the equivalent of energy-flux densities. Indeed, mankind is now nearing the stage at which the role of mankind in nearby Solar space will necessarily increase for scien-tific and other technological reasons.I mention this here, because the implications of the NAWAPA program include emphasis on mankind’s de-pendency, here, down on Earth itself, upon processes which we presently know to be associated with func-tions which are located essentially within not only our Solar System, but in effects on life on Earth which are governed directly by long-term processes of our galaxy. NAWAPA’s development brings us into many experi-mental matters which are of great significance, but which are also located essentially beyond the range of life on Earth as such.We have entered a time, now, when, for science today, human life is located functionally in such larger terms of reference. The processes which confront us in our achievements in the design of the NAWAPA proj-ect, will become the principal process of transition toward mankind’s adaptation to relevant actions of management of our planet’s nearby space.For example, the development of NAWAPA brings such nations sharing the polar region, as the United States, Canada, and Russia into sharing a common des-tiny in the need to explore the implications of the Arctic region to great advantage for the planet as a whole, that in a way which has been barely scratched so far. Simi-larly, the exploration of this region brings us to place a new degree of emphasis on the implications of cosmic radiation as a crucial aspect of life on Earth, including our own nation’s.In short, with the advent of NAWAPA, we are going far beyond the implications of the TVA into dealing at close range with cosmic challenges to science and economy beyond anything customarily considered in the world up to this present time. The discovery of a North America beyond Eurasia, has effects which share the experience of the John Quincy Adams, one-time Secretary of State, President, and senior member of Congress, who played a leading role in defining our re-public, from Atlantic to Pacific as a single continental EIR January 28, 2011
Once NAWAPA were developed so, no American child would ever dream of less than such achievements as those of mankind’s more notable entry upon the stage of nearby Solar space.Therefore, we share a great destiny so placed before us; let us resolve that from this advance in our human condition, we of the United States shall never again re-treat from a standard of progress and im-provement of the general welfare, as our nation had tended to do since the death of President Franklin Roosevelt.The first chapter of Genesis teaches that man and woman are made equally in the likeness of the Creator. Let it be so for all of us now. Let us never retreat from that devotion, from that image of the nature and sanctity of the purpose of the NASA/Tom Tschidalife of each human individual. Let it be No American child, said LaRouche, should ever dream of less than suchnow. We, as a nation, have a special dis-achievements of mankind’s exploration of space. Shown here are childrenvisiting the flight deck of NASA’s shuttle carrier.pensation to make it so for all throughout this world as a whole. Let us do the won-power reaching across the Pacific toward our naturally derful things we have been designed, as a species, to do. destined partnership with Asia as also “Old Europe.” Let the presently descending nightmare upon our repub-lic, and also the world, be taken away from us now, taken Today, the promotion of the development of those re-sources of Siberia needed for the development of such away by the power of willful choice awarded to us, es-pecially that which was intended, since the time of the populous nations as China and India, when taken to-gether with the natural partnership among sovereign Massachusetts’ Winthrops and Mathers, as our destined nation-states, across the Pacific among Russian Siberia special contribution to the future cause of that commu-and the United States and Canada, defines the future nity of sovereign nation-states known as humanity.destiny of our United States to an increasingly large degree. The tunnel through the Bering Strait into Russia, from Alaska, becomes inevitable, and, on this account Dialogue with LaRouchethe relations within Asia are changed in a related way.Freeman: The first question comes from Ireland, Together, we, China, Russia, and India, will be lead-ers among the nations rising from the Pacific partner-from one of the leaders of Sinn Féin, and he says, “Mr. ship for such common missions as those of the develop-LaRouche, let me first preface my remarks, by express-ment of the Moon.ing both my personal gratitude, and the gratitude of the We must define our national destiny as a commit-entire Sinn Féin organization, both here in the North ment to breed and educate the generations among these [Northern Ireland], and also in the South [Republic of nations which will find our cooperation in nearby space-Ireland], both to you and to Dr. Freeman, for not only ventures, as not merely cooperative, but inevitable. supporting us, as we’ve resisted the efforts of the Brit-NAWAPA unleashed, will represent a development of ish Empire to further enslave the Irish people, but also, for your continued wise advice. And I hope that I may such sheer power for development, that it will be the ful-crum that takes us, by inspiration, to the skies above. We impose upon you once again.must adopt this as nothing less than our natural destiny to “As you know, we had hoped for the successful be shared with our partners across the Pacific, and also defeat of the insistence that the Inter-Alpha Group among all of us here, and the future on the Moon.banks be saved, at the expense of the Irish people in the January 28, 2011 EIR Feature 1
Irish nation. And although that first battle was temporarily lost, I’m very confident that, in short order, this current government will fall, and the passage of that heinous ca-pitulation rescinded. Yes, of that we are most confident.“But, my question to you is this: Once that is done, what do we do next? We are not the United States: We have never had a sover-eign banking system; we barely have a sovereign republic, and we really do need some guidance as to how to proceed.”
Wither Ireland?
Creative Commons/Joe Higgins’ photostream
LaRouche: Well, as I think demonstration in April 2010 against the government bailout of Anglo Irish Bank. Sinnyou may have picked up, from my Féin has led the fight against the bailout policy.reading this material, which I put on the record for the obvious reason, in that way; now, Capri with this famous Octavian, who became known once we have assumed that we have gotten rid of this as Augustus Caesar, or “Disgusting Caesar,” or what-British problem, because, as I said, it’s the British ever—that since that time, Europe has been dominated Empire. We are dealing with, as people in Ireland, of by an imperial monetarist system, which was estab-course, tend to understand: We are a product, or had lished, originally as a Mediterranean system, under the been, until more recently, we had been originally a Caesars.Now, this empire went through crises, but the empire product of primarily the British Isles. We had been people who had come to what became the United States, persisted. The center of the empire shifted. Rome col-from across the waters, generally from Europe. We lapsed. Well what happened? Byzantium arose. Byzan-tium, about 1000 A.D., collapsed! But then, the Vene-brought with us a European culture.But we brought with us a mission given to us by tian power arose. In fact, what had happened is, with Nicholas of Cusa, the founder of modern science and the collapse of the Roman Empire, the Roman oligar-modern civilization, to go across the waters to get away chy, the aristocracy of Rome, had moved up to swamp from what was going on in Europe; not to destroy areas, which were more probably accommodating to their nature. But, they moved up there in the area which Europe, but to create an alternative, for European cul-ture, and others, in seas across the ocean. This had been we call Venice, today, because, being up there, with Cusa’s destiny, which had been picked up, specifically their wealth and treasures taken with them, they pre-sumed they would be reasonably secure, hidden and by Christopher Columbus.And so, between us and Europe, while we have protected by swamps, from people coming to steal their precious treasures.people from other parts of the world, from Asia in par-ticular, in increasing quantities inside the United States, So, they became a financial power. They were a the same thing holds true. When people go from one power, partly, inside the Byzantine system up there. climate to another climate, they don’t change the nature When they got a new status, they suddenly established of being people, they change the way they adapt to the themselves with greater authority. And when Byzan-tium began to disintegrate, Venice made itself indepen-climate. And this applies political climates as well.Europe, to the present day, from the time of the dent, and Venice used its own control over the monetar-founding of the Roman Empire, has been dominated by ist system of the Mediterranean and beyond, to dominate an empire. And as I indicated earlier today, the Roman Europe as an empire.That collapsed in the New Dark Age of the 1th Empire, which finally got itself together on the Isle of 18 Feature EIR January 28, 2011
A leader of Ireland’s Sinn Féin party asks LaRouche, “What do we do next?” Shown is a
Century. Out of that came a great struggle. You had a Renaissance, led by Cusa and people like that; but then we had a long period of religious war, from 192 to 18, in which Europe largely destroyed itself. And during this period, elements of the European Renais-sance, the 1th-Century Renaissance, moved across the water, according Cusa’s prescription, and they arrived in significant numbers in North America.Now, the southern part, in South America didn’t work out too well, because the Habsburgs were control-ling that part of the world; and the British system was, also. But we, in North America, as Europeans of that time, had a European cultural basis: Our language, our literature, our music and so forth, were all essentially European. But, when we crossed the water, and we hit freedom on the other shore, we began to behave differ-ently, and the Massachusetts Bay Colony was the center and origin of this process.So since that time, we have always had a trans-Pacific orientation. We believed that we must move and establish this entire continent, the North American con-tinent, as a continent divided between the Canadian border and the Mexican border—that’s been our policy all along. And our intention was to cross the Pacific, to establish cooperative relations with people on the other side of the Pacific. And so it goes.But in this process of change, as we have a greater part of the Pacific-oriented, Asian population in the United States, the same principle remains, too: We are a people who have our culture. We distinguish the politi-cal characteristics of our Constitutional system from the European systems, which have an inferior political culture, because they are the slaves, in a sense, of an empire. Which is today, the British Empire, and it is a British Empire! It’s not an empire, as most children think. It’s an empire of a monetary system. And who-ever controls the monetary system, and is able to deter-mine the relative monetary values, thus rules an empire!You see what’s happening now: The Inter-Alpha Group, which is a bankrupt organization—it’s the Brit-ish Empire—is a totally bankrupt institution, as—you know, Brazil is about to go down the toilet! If it’s lucky. It may go directly to the warmer place. But the point is, the whole system is coming down.Now, therefore, looking at Ireland: What’s the pros-pect for Ireland? Well, I’ve made a reference in these remarks to—Constitutional kinds of remarks—to the role of England; what would England do without the January 28, 2011 EIR
empire? Suppose we take every stinking bank in Eng-land, and we wipe it out? Or it wipes itself out? Which it’s pretty well on the road to doing. What do we do with the English people? What do we do with the Scots? What do you do with the Welsh? What do you do with the Irish? Well now, in charge of the United Kingdom, we can deal with that. If every bank in England goes bankrupt, that’s not a tragedy, that’s a triumph! But do we throw the British people into the sewer? Or, do we do something else? Why don’t we just give them a com-mercial banking system, like our own commercial banking system, and they can do just fine? They’ll do better.Now, what’s going to happen, presuming we get through this crisis, is, the world’s going to change. One thing that must happen, out of this process, the British Empire, as I’ve defined it here, and on other occasions, must be eliminated!Now, the problem with the British Empire, like all empires, is, empires have always, in the known history of mankind and civilizations and nations as such—this goes back to the melting of the great glaciation, and this went on. The glaciers melted, the waters of the oceans rose 00 feet. Now, you could get in through the Strait of Gibraltar into the Mediterranean; at a later point, you had a freshwater lake, which was a glacial melting lake, we call the Black Sea, today. It was on a lower level, and one day, the salt water of the Mediterranean broke through the Dardanelles, and put a layer of saltwater on top of the Black Sea. So, the seas rose by about 00 feet on the mean.Now, with the melting of the glaciers, the life of mankind on the planet changed. What had been the maritime areas, were the leading areas of civilization in this period. And so, in this process, as the Mediterra-nean waters rose, and the other waters rose, we had a change; people moved inland, away from the great gla-ciated areas. The character of the civilization of man-kind changed, with this change. And so, what happened is, you had a two-class system come out of this: One was the ruling class, they were called “the gods.” As in the Greek legends, they’re called “the gods.” Why? Be-cause they called themselves gods, and the others were the slaves.So the function, the history has been, which is the British Empire today, Prince Philip for example, with his World Wildlife Fund, still expresses this policy: that you must keep the mass of people down. Now, in order to keep the population reduced, you’ve got to lower Feature 19
technology, you’ve got to stupefy the people, you’ve got to limit the number of them. That’s called environ-mentalism. It’s evil! It’s hatred of human beings, of saying, “We, the rich and powerful, we run the planet, and we’ve got to keep the numbers of these people down. We keep their numbers down, and we keep them stupid! We don’t let them have nuclear power, we tell them to have wind power.”
Britain Delenda Est!So, now, we’re coming into a period, where presum-ably, coming out of this great crisis, in which the British Empire will be destroyed, what do we do with the planet? Well, we have ideas in China, which are very good ideas. You don’t have to get into all the details about whether you like it, or not, that’s not the point. But, China’s on the way up. China is going into nuclear, and thermonuclear power; it’s going into space, and so forth. India has a similar movement, with some differ-ent characteristics.You have other parts of the world: You have Africa, a whole continent which has been abused and destroyed! What are we going to do with this world, now that we’ve ended oligarchism? Now we’re going to have to get back to work! What’s the problem in India? Well, the Indian labor force is half as productive as the Chinese labor force. Why? Because of a long history of their social system—terrible poverty! They don’t have skills. It’s not that they can’t produce, they just don’t have the skills.So therefore, our job is going to be, to take areas of the world, which are underdeveloped, where people are underdeveloped, as in the continent of Africa, and else-where, as in the struggles in Asia, to better things. We’re going to have to organize, to bring mankind to a higher level of physical productivity, and standard of culture.Well, what do we do then? Now, put Ireland, Eire, in this situation, hmm? What are we talking about? Well, the Irish and the Americans tend to get along pretty well. We have a lot of Irish in the United States, Irish ancestry; I’ve got a bit myself, you know. A lot of people have Irish in them, especially in the Americas.So, what we’re going to do, is essentially, our job is to look at areas where nations and people of those na-tions have the ability to participate in a cooperative venture for improvement of the conditions of life, of the planet as a whole. Now, Ireland has no problem with that. And I have some Scottish ancestors, too; they would have a problem, but that’s all right.20 Feature
So therefore, what we need is, to set up, essentially, what the United States was intended to be, was to get out from under these slave systems, in which we di-vided people into the over-class and the under-class! Now, we’ve got to develop humanity, and there’s no other way you can develop this planet, and life on this planet. So now we’re going to have a division of labor, that every part of the world where we can find people who are qualified to do work of a certain skill level, and it’s the appropriate kind of work for them, it’s our inter-est to have an international system of the type that Ham-ilton projected for the United States, in national bank-ing.What we’re going to do, is, take a mercantile type of banking, which is the proper type of banking for any self-respecting nation; we’re going to organize the mer-cantile banking system, as under the protection and fa-cilitation of a national banking system for any country. In other words, we don’t have these outside imperial banks, these monetarist banks, we have credit-system-based banks, which the United States is designed to be.So, we’re going to have to do that now, in the United States. We’re going to have to reestablish the Third Na-tional Bank of the United States, to get out of this mess we’re in now! Other nations will want to do the same kind of thing, as having a national authority, which rep-resents the private interests, generally, with government cooperation, of what we call a commercial banking system. It’s going to be a credit system, as well as a commercial banking system.So now, what are we going to do? We’re going to put out the work, to those who are able to take it on. And, you know, Scotland will probably split from England, on the basis of this crisis. So, now you’ll have three na-tions up there—I don’t know what the Welsh will do, but there will be a little different arrangement, up there, in that vicinity of the world, than there is today.
Sovereign Credit SystemsAnd so, I think, if Ireland can be constituted as a se-cured republic, one which is not being abused in some way, then Ireland has a skilled population and a culture which can obviously produce things. And therefore, the answer is, to create that system of international coop-eration, which is what Roosevelt had intended for the United Nations, which we never got, because he died, and other people had a different idea. So, our view should be, the United Nations—not the way they’re EIR January 28, 2011
trying to do it now, but simply the idea that sovereign nations on this planet have to have a credit system, be-cause development involves several successive genera-tions.Anything we’re going to do in this century, on a ra-tional basis is going to take the better part of a century. We’re talking about three, four generations of people. So, that this four-generation interval is going to be in-volved in investments, which have maturities of 30, 0, 100 years! Look at even the changes in the 20th Cen-tury: Take the beginning of the 20th Century: flight by aircraft! Think of all the other technological changes, which occurred in the span of a century, in a very bad-behaving century!Now, we need the ability for long-term credit among nations. We’re going to have to develop all of Asia! That’s going to take more than a century! We’re going to have to develop Asia with sovereign nation-states! It’s going to require cooperation with the world as a whole: Weneed a system, of the type that Roosevelt in-tended for the postwar period. We need a League of Na-tions! A real one! We need a United Nations, in that form!So therefore, if we have a United Nations, we’re going to create an international system of credit, like a fixed-exchange-rate system among nations. Because nations are going to have to help each other, as in Asia—you have up to a century of development, to reach the level of true parity and security. You have credit that has to be extended from one part of the world to the other, so therefore, you have to have a stable, international credit-system, of the type that Roosevelt envisaged.This is coming now. We are either going to survive this thing, this year, early this year—or we’re not! And if we’re not going to survive it, you’re going to have damned few people on this planet. So therefore, we have to do it. We have to cut the mustard, now.And what’s the situation for Ireland? It’s fine. Fine. And especially what the Irish are doing now, in reas-serting their long-fought desire for sovereignty, is per-fect for it. So therefore, it will just have plenty of market for what Ireland can do, as its products. But there has to be a system, in which we can discuss exactly those things, and make it work. There are opportunities ev-erywhere.And I’ve got some ambitions of going to the next century beyond that—I won’t be around for it, but I still can have the ambition for that. So, that’s the point. Ob-viously, we’re going to come out of this thing, with a January 28, 2011 EIR
struggle to establish what Roosevelt had intended by his idea of what was a League of Nations: nations which are perfectly sovereign, respectively, of their own na-tional cultures, but are free of monetarism, which oper-ate on the basis of national credit-systems. And the na-tional credit-systems have to form, what Roosevelt did!—a fixed-exchange-rate system among national credit-systems.We’re going to talk about up to a century of devel-opment, to change this planet, do the repair job on this planet that imperialism has left. We’re going to do it with sovereign nation-states, with promoting language-cultures, the existing sovereign language-cultures, and so forth. And we already have enough experience to know how to do that.I see the prospects—well, the very fact that the Irish are fighting is, you know, it’s their greatest asset. Some-times it may be their greatest detriment, but in this case, I think it’s their greatest asset. Because the ties to the United States, the psychological ties of Ireland to the United States are sufficient to be very useful for this purpose. I see no great problem. I see a practical prob-lem, but it’s a practical problem that we and Ireland share together, as a common problem of nations around the world, today.
It’s Not a Tunisia Crisis: It’s GlobalFreeman: The next question comes from Russia, from a longtime supporter of ours there, who operates in various influential circles. And he says, “I know that Mr. LaRouche is a sincere friend of the Russians, and that he has been aware for a long time, of the hidden story behind perestroika, and that he both saw, and un-derstood, very early on, the disgusting essence of the so-called reforms under Gorbachov and Yeltsin.“While I have many background questions about that, today, I really want to ask something which is on the minds of people here, and I would imagine on the minds of people all over the world: I would like to ask about what is happening in Tunisia? Many people in Russia are drawing parallels between those events and what might very well occur in Russia and, perhaps, other nations, soon. The current events in Tunisia, what is being called their ‘Jasmine Revolution,’ in yet, an-other ‘colored revolution,’ in the series that has un-folded in the past Soviet era: My question is: Is it that? Was it inspired from the West? Or is it a natural reaction of the Tunisians, themselves, to the totality of events, including, not only the dictatorship there, but more im-Feature 21
NASA
There is no “Tunisia problem,” LaRouche said. We have acultural problem, and it’s international: an anti-progressculture, a greenie culture, which offers youth no future. Shown:Solar power in Tunisia. Tunisia is planning 40 projects from2010 to 2016 to increase solar energy use in the country.
portantly the economic crisis? Because there are reports that the current unrest began after a sharp rise of prices of basic necessities, and then, in response, the tighten-ing of the screws by the former head of state who has now fled. Obviously, in the midst of global hyperinfla-tion, this is an extremely important question, and I’d like to know your views on this?”LaRouche: Well, let’s take a step back, first. Don’t assume there’s such a thing as the Tunisian problem. There is a disease in Tunisia, but the bacillus is every-where.Take another case. The case in the state of Arizona: A young guy gets himself some weapons and kills some people, and to me there’s nothing mysterious about this. All I have to do, is look at our culture in the United States, and look at it in terms of generations. Probably, about one-third of the generation under 18, or under 20 perhaps, are a type which are like this young fellow, who pulled off this atrocity in Tucson. We have Tucson cases saturating about one-third, potentially, of the gen-eration of that age-group!So, you’re not looking at a “Tunisian problem.” You’re looking at a cultural problem, which is through-out the world, and with varying expressions, in which a younger generation is coming up, which is scarcely human, in terms of its culture. This is not Tunisia, it’s in every part of the world! And those parts of the world, which are more oriented to what you find in the trans-22 Feature
Atlantic community, or the trans-Mediterranean com-munity, are the worst.It’s where people believe in the values of these two generations, or we call them successive de-generations, from the Boomer generation on down. And they are successive de-generations, to a large degree. Young people around the world, especially the trans-Atlantic region, are much more demoralized than they are in some other parts of the world. And you see this spread-ing into Japan, you see it spreading into other countries, which once had a vigorous industrial-technological progress orientation, and the section of the population which still has that orientation is shrinking! And the youngest generation is born into a generation where they’re told that they’re in a green society! And those young people who have been conditioned to believe in a green society, are most demoralized, and demoralized in the sense of a lack of real morality!So, now, you take young people who have no sense of the meaning of life: Look at what they believe! Look at what their culture is! Look at their behavior! Would you want them in your backyard? Like this kid? If you take about one-third of the entire generation of that age-group in the United States today, and we don’t know what kind of monsters will come up in the next batch! Because we are that.See the tendency is, everybody likes to think of people as being like monkeys or something: Each indi-vidual monkey has its own culture or something, its own behavior. We’re influenced by the culture, we’re influenced by the culture we’re part of. Societies always have had generational characteristics of cultures. You know, a family is what? Four generations; at least three generations. And it’s the development of the culture, the orientation of the culture. We have an anti-work cul-ture! We have an anti-progress culture, we have a green-influenced culture! And a greenie is on the way to de-generacy! If you don’t believe, in developing—.
Mankind Creates His Own CultureLet me just take one step back: Look, mankind, as I said in this report, this statement—mankind’s nature is different than that of the animal, absolutely different. The animals have no voluntary capacity to develop a culture. All animal species have a fixed potential popu-lation-density, or relatively fixed, depending upon their circumstances. And they have a culture, an animal cul-ture. But they don’t have a voluntary culture, like human beings. They don’t have the voluntarily creative poten-EIR January 28, 2011
tial that human beings do.Now, the human being has expanded his population greatly on this planet, relative to any other species. This means that we are using raw materials. What are the raw materials we use? The raw materials we use arechiefly relics of living processes. We get iron because living processes, which had a living chemistry with iron in them, and these unicellular animals concentrated, and when they died, they would deposit the iron in their bodies. But they had gathered this iron. Many of them had been gathered by oceans, where the creatures had congregated in areas, in waters. And they died, as uni-cellular animals, or plants, and they concentrated cer-tain minerals in certain places.We come along, as human beings: We find an area like the Mesabi Range, in the United States; there’s a lot of iron there. Why is it there? Because dead animals left their bodies there. Now, what do we do? We go out and we extract the richest concentration of iron. We go where the iron ore is the richest; we ignore the others, at first. Then we find that we’re using up the richest iron ore concentrations, so we have to use poorer iron ore. Now, this requires more technology, it requires more development of power, more utilization of energy-flux density, as power.So therefore, for mankind to live, mankind becomes more complex, more interdependent, interactive skills. Man develops a culture. But man is above all volun-tary! Man invents discoveries of principle, on which mankind is able to live as man.So therefore, what happens, if you go to a “green” society, a green society, in effect, or to a fixed society, which is called the “oligarchical model”? In ancient so-ciety, where you keep the masses of the people stupid, give them limited skills, do not allow them to know these things; do not allow themselves to be educated, to develop; you keep them as cheap labor: The oligarchi-cal principle! Controlthe size of the population for thecomfort of the ruling class. That’s where this problem comes from.So, now what we’ve done, under the influence of Teddy Roosevelt, and others, British types—we have decided to go against power. Now, the only way the human race can survive, against resources, is to increase the energy flux-density of the technology used! That means, tear down every damned windmill and destroy every solar collector in the United States! Because, these technologies are lowenergy-flux-density technol-ogies! They’re wasteful! And if you want to maintain January 28, 2011 EIR
that technology, you must reducethe population of thehuman race: You must commit genocide! Like the World Wildlife Fund does. Genocide! Mass murder! Deprav-ity!Do these young people, like this poor fruitcake [Jared Loughner]: Do they have a sense of themselves, of moving upward, of learning skills, of developing technology? Do they have a sense of a mission in life? Of improving the power of the human race to exist, to sustain itself and care for itself? They don’t! So, what do you expect?!Look at the case of Tunisia: In this location, what was the problem? A decline in culture! Imposed by what? By prevailing policies, social policies, and eco-nomic policies! So wherever we see windmills, whether in the mouths of politicians or not, wherever we see these kinds of green policies, we’re seeing the destruc-tion of civilization! And the destruction of civilization means, that you want to reduce the amount of popula-tion, you want to reduce their role, their technology, in this development. Reduce their sense of a purposeinlife as a human being!Now, is that happening all over the world? Of course, it’s happening all over the world! And that’s why the British and Obama hate China. China is violating the rule. China is insisting on maintaining a stable econ-omy; they’re doing it roughshod, which is not difficult to understand; but they’re developing their society. And the British hate that!The United States is hated by the British, especially because we speak English, because we know how to hate each other! Their society, you know, the typical British citizen, from what I see on the screen, is wider than they are tall. It’s a cultural thing, it’s not biological, it’s cultural. It’s a population which has lost its sense of purpose in life. It’s just living out, and trying to vege-tate, shall we say.And that’s what our problem is. Our problem is not Tunis. The problem is global. And the problem is the British, the British Empire. The British Empire is dying. Let it die, in its present form. We can take it. We can take the “poor sods,” as they call them, of England and so forth, we can take the poor sods, and retool them. We’ll do a better, kinder thing for them than they will do for themselves. That is, to get them back to an Amer-ican standard of outlook, or what used to be an Ameri-can standard of outlook: Is to simply say, “We’re going to be a productive nation. We’re not going to be a par-liament empire, we’re going to be a productive nation, Feature 23
which has a sense of dignity and purpose in life, be-cause we’re doing something good for humanity, we’re making things better!” Which is what the Americans used to think.And the problem is these young kids out there, like this thing in Tucson: They’ve lost that! They’ve been thrown into the garbage pail! Don’t blame them! They were thrown into the garbage pail—by whom? Well, in this case, they were thrown into the garbage pail by two Presidents: George W. Bush, Jr. and Obama—and Al Gore, to the extent he was able to do it.We have been destroyed, we’ve been destroying our young people, and this is happening throughout the world. And this case in Tunisia, the story on this thing, where the thing broke out: It broke out in an area which had gone through the effects of adecline, a demoraliz-ing decline and a collapse of what had been earlier, a much more developed area.And you see allover the place, all around the planet! And what’s being done to Africa is typical of that, same thing. So, these are the problems. There is no “Tunisian problem.” There’s a disease, from London, which has been spread from London into Tunis.
The Issue Is Imperial GeopoliticsFreeman: The next question comes from the leader of the National Democratic Youth League and the Stu-dent Republic Movement in Ukraine. He says, “Mr. La-Rouche, it is clear that an ever-greater number of coun-tries are sliding into a new barbarism. And one of the key symptoms, is the lower and lower level of compe-tence of those who are running the governments.“At the same time, the public, and even well-in-formed experts are essentially barred from having any influence on important decisions. It seems that more and more countries, either explicitly or implicitly are going toward dictatorship, and in some cases, even bloody dictatorship.“Our question to you, is how can we carry out mobi-lization plans for economic development, while, at the same time, preserving civil rights, and preventing re-pression in an atmosphere of fear? I suspect that this is a question that relates not only to my own country, but perhaps also to your own, and also to many others across the globe.”LaRouche: It’s the same thing. It’s the same thing. Look, the prevalent culture, throughout this planet, for more than 100 years, and including the United States, is the same thing as the similar thing for us, in ancient 2 Feature
times, of the slave system. I mean, how is it possible, that in this republic, you could have the buildup of an organization, in the so-called Southern States, and beyond, actually, of this kind of racism? Absolutely brutal kind thing? We are living in a brutalized society.Look, I want to put a particular label on this: Go back to 18. In 18, the United States had emerged from a struggle against slavery, and out of a Civil War, and had made a revolution such as typified by the Trans-continental Railway system, by the great industries which surged and were celebrated in 18, in Philadel-phia; 18, the people from Russia, and China, and elsewhere around the world, came to the United States, to seek, “What is this miracle?”We had created a trans-American railway system, a transcontinental system. That, together with the indus-try development which went with that, had transformed the United States, in such a way, that we, in the United States had created a situation, where maritime power could no longer dominate the world! Because it was cheaper to use transcontinental railway systems to transport goods for trade, than it was water systems, maritime systems!The British called this, a geopolitical crisis! Be-cause suddenly the empire, which had been a maritime empire, was no longer assured of the ability to control the planet! Because no longer were long voyages on ships the efficient way to deliver goods back and forth in the process of international production. TheBritishwent to war, and we’ve been in a war since 1890, from the time the British Empire, the British monarchy, fired the Chancellor of Germany, Bismarck. The issue was geopolitics! Which is going to dominate the world economy: Is it going to be land transport, or ocean transport? Because if it’s not ocean transport, then the maritime system, which is what the British Empire was, could no longer control the planet.Since that time, since 18-1890, the British Empire has organized warfare, destructive warfare, throughout this planet, with two purposes: One, is to set major na-tions against one another, so no one nation or group of nations could be independent of the British Empire, to preserve the British Empire. And all of these wars that we’ve been fighting, including now, rightnow, in Af-ghanistan, is a continuation of what actually occurred as a product of the firing of Bismarck in 1890.All the wars we’ve fought—World War I, the decla-ration of war against Russia and China by Japan and Britain; the declaration of war against the United States, EIR January 28, 2011
the agreement on a war against many. The British put Hitler the United States by Britain into power, and the Wall Street and Japan, including the attack crowd was part of it.on Pearl Harbor in the 1920s. It This is the same thing! The took place in 191, but the same geopolitics! The same policy, the alliance was made issue that we’re fighting today. for the attack on Pearl Harbor It’s the same idea of the oligar-chical principle. The same in the early 1920s. Why? Geo-politics! What was the British damned thing. That’s what policy? British policy is: The we’re fighting against. You’ve naval power, the maritime got a bunch of nations in power of the United States, Europe and elsewhere in the must be destroyed. Not elimi-world, who think they under-nated, but destroyed. And so, stand what good is. They don’t. Japan was enlisted and devel-They have these illusions. And oped under British direction to so, we have to look at things in become the naval power to take that way.out the Pearl Harbor base. That We’re in a social crisis, yes. was in the early 1920s, about We’re in an economic crisis. the time I was born. That’s What I had to put on the record what the problem is.today, was that policy, because Brooklyn Times/S.S.Byck, 1933So now, you have a mari-that’s where we are. That’s an When Congress was “on a retreat” from thetime system, which comes out Depression in 1933, Roosevelt’s President RooseveltAmerican policy. It was al-ready the intention of our Con-of the same maritime system of called a special session of Congress, saying thatstitution, the real Constitution. the Mediterranean we associ-unemployment could only be solved “by directate with the Roman Empire, recruiting by the Government itself.” For the nextThe meaning of our existence. three months, Roosevelt proposed, and Congresswhich has continued to domi-The meaning of the Mayflower passed, Glass-Steagall and other key bills to dealnate this planet up to this time. with the crisis; this session became known as thelanding and development. The The United States, by being a Hundred Days.meaning of everything good United States, became the that’s been done by us, or any-major obstacle to the realization of a permanent Roman thing good, done by any other part of the world. We just Empire upon this planet. When the United States, by happen to have an advantage, because we took the better victory over the Confederacy, which was a British part of a continent, developed as a force of power for puppet. They killed Lincoln, and they set into motion a this cause, as opposed to Europe which was saturated plan to destroy the United States. And the plan was set with this crap.That’s what the answer is. That’s the thought that into motion, was organized against Bismarck. Because Bismarck was building the international anti-maritime you have to keep in mind.system.Glass-Steagall Will Rescue the StatesSo that’s what the problem has been. So we’re deal-Freeman: As you know, Lyn, the Congressional ing with an empire which says it cannot continue to be an empire, unless it can destroy the United States. That’s Democrats were caucusing, on what they have very why the British put Obama into the Presidency in the aptly referred to as a “retreat,” in Easton, Md. And the first question comes from one of the retreaters. He says: United States.Who is part of this? The Bush family. Prescott Bush, “Lyn, while it would appear that there’s little appetite the grandfather of the last piece of crap that we had of for Glass-Steagall, the fact of the matter is that most of that family in the Presidency, was a man working with us here do see it as inevitable, given the magnitude of the problem, and there’s little question that some time, the Bank of England through Brown Brothers Harri-man, and Prescott Bush was the guy who moved the over the course of the next days or weeks, that the op-portunity is going to present itself, and I do believe that money to put Hitler into a position of power in Ger-January 28, 2011 EIR Feature 2
Glass-Steagall will be reenacted.“However, as we learn more about what occurred and what is still occurring in the course of the great bank bailout of 2008, we learn that, in addition to the billions of dollars involved in TARP, the Federal Re-serve as well may have engaged in a far larger bailout, perhaps amounting to trillions, and that those trillions went to not only American, but also to foreign banks.“Now, in the midst of this great bailout, both by Congress and by the Federal Reserve, it is also the case, as I’m sure you know, that community banks received almost nothing. The argument at the time was made that we can’t help everyone, and that the community banks were not too big to fail, and fail they have. My question is this:“Glass-Steagall was crafted under very different circumstances. There is no question in my mind that it should be reenacted, and as I said from the beginning, that I believe it will be. But my question to you is, is it really enough, especially since the reach of Glass-Steagall does not extend to these kinds of covert activi-ties, if you will, by the Federal Reserve?”LaRouche: Well, actually they do reach to it, and they reach to it in a very efficient way. See, people get too much tied up in current legalisms, and fail to realize that they’re principled. You see, the problem is in our definition of democracy and the way it’s taught, and the way it’s talked about in Congress and so forth: The principle is far removed from the awareness of the usual politician these days, particularly, when it comes to Congress, matters of Congress, or the state.We live in a society which is largely influenced by British Liberalism. Now Liberalism is, of course, the system which was established under the new Venetian system, which became the British Empire. And out of the British Empire, Liberalism means that human beings respond to pleasure and pain, and the essence of belief is pleasure and pain. The essence of law, for them, is pleasure and pain. There’s a question of popular plea-sure and pain. It’s based on perception,not truth. Among our politicians, there is an absence of the idea of truthas a principle.In other words, when you had the Federal Reserve System doing what it did, whatit was doing was inher-ently untruthful! Bordered on treason!All of the evils we’ve had, especially since the as-sassination of Kennedy, have been of this character. For example, slavery. The United States for a long period of time put up with the institution of slavery, because Jef-2 Feature
ferson was pro-slavery, and he became more so when he got sick, and he had a traitor to the United States as his Vice President. So therefore, the idea of truth as a matter of principle, in the sense of scientific truth, truthcontrary to popular opinion. Now what’s going to happen? If you want to uphold popular opinion, as a standard of truth, then you’re going to lose the United States earlythis year, so you’ve got to get your conver-sation in quick because it’s not going to be around much longer.We’re now in a hyperinflationary mode. This whole United States, the whole world system, can go down in a matter of as soon as weeks or as long as months! You want to talk about policy, in terms of long-term trends in policy-shaping? We’ve had a system in which a com-petent President couldn’t be elected. Why? Because the popular standard wouldn’t elect a competent President. Or if he was competent, he had to make some adjust-ments, to hide his competence. I’ve seen that close up, how that works.So the problem is, we do not have a problem. And when the American people out there, who are getting very angry, begin to make a decision, they’re going to agree with me, not with you. Because they’re going to agree, that what was done to the Federal Reserve System under Greenspan—Volcker didn’t do a decent job either; at least, he meant well, he just wasn’t compe-tent—the Federal Reserve System went to criminality under Alan Greenspan. And it went beyond criminality, today. So everything the Federal Reserve System has done in this way, which is contrary to the intention of our Constitution as it was originally conceived, has been a fraud.And you’re going to find that once we put the Glass-Steagall through, the Glass-Steagall Act in its 1933 form, we’re going to find out that the American people are going to do something about this. Why? Look at the states; look at the immediate situation in the Federal states. You’ve got a bunch of Congressmen out there, talking about Federal government and how they’re going to manage the Federal government. What do the people of the states think about this? What’s happening to them? Do they have any belief in this stuff? Of course not! If they’re not intimidated, if they feel they have some clout, they’re going to act.And you’ve got a warning sign, in this little event in Tucson, because that’s not aproblem. That’s the prob-lem of a generation, about one-third of a generation under 21, which youhave destroyed, by consenting to EIR January 28, 2011
what has destroyed them. The consent to putting an Al Gore as Vice President was a tragedy for the nation, be-cause Gore is poison. His policy is poison, his thinking is poison, people who think like him are poison! They don’t belong in our political system, any more than the slave-owners belonged in our system back in the first half of the last century, or the century before then.So, there is no problem. What I’ve defined, in the statement I just delivered here—I wanted to get the exact thing on the record—is the only answer. That’s the truth. Anything else that doesn’t start from what I just gave, as a design of a policy, for a State of the Union policy, is a waste of time. If it doesn’t fit what I said, dump it.And you’re going to find that the people out there at the state level, intheir anxiety, they may not know what the solution is, but they know what their anxiety is: You’re killing ’em! You’re health-care policies are kill-ing them; they’re designed to kill! They’re designed to reduce the population. They’re murderous. They’re treasonous. And the problem with my friends in the Democratic Party, assembled, is they’re thinking too much about opinion and not enough about truth! In the long run, humanity is going to respond to truth. If you’re killing them, they’re going to respond to the fact that you’re killing them; and the fact that you said, “but we’ve voted for this law,” is not going to be an excuse! And that’s happening, now! The negligence, the ability to try to “go along to get along,” that infamous slogan of the Senate, of the Congress—“go along to get along”—thatis the beginning of the ascent of actualimmorality: “go along to get along.”And so, when we say Glass-Steagall, we mean Glass-Steagall. And the interpretation is that of 1933 Glass-Steagall, because we’re saying that the repeal of Glass-Steagall was a crime against the nation! And that the people who went along with that repeal of Glass-Steagall, or those who allowed Alan Greenspan to be put in charge of our Federal Reserve System, that swin-dler, were not thinking competently.And our people out there in the states, are now being subjected to something awful. You think you had some-thing in Tucson? You haven’t seen the beginning of it. You have a generation of people under 21, 22, of these young people, of whom probably one-third are of the Tucson variety, and you want to crush order in thestates, by crushing the states of these republics, and saythat you’re doing it on the authority of belonging to alofty club, of the U.S. Congress and the Presidential in-January 28, 2011 EIR
stitution, now? When the world is about to destroy itself,blow up, and you don’t want to change that, you want tocompromise, you want to “go along to get along”? Well, you know what you’re going to get to? It’s called Hell.The Democrats have got to get their guts up. You don’t have any time to fool around with this kind of nonsense! It’s coming on now. I can’t tell you the exact date, because I can’t anticipate on how foolish our people may become, our politicians may become! They show a great capacity for becoming very incompetent and doing very terrible things, and I can’t be held re-sponsible for that. But I can tell you: The time is nigh! We’re there.The states are disintegrating, the U.S. economy is disintegrating, the world economy is disintegrating. You’re on a global scale of something like what hap-pened in Germany in 1923. You’re already far advanced there. You want to fool around and make compromises? No. I told you what you’ve got to do. It’s what you’ve got to do. If you don’t do that, you’re a loser. If you don’t do that, you’re wasting your time. Wise up!I’ve been at this for a long time. I’ve watched it for a long time. You’re making the same stupid mistakes you’ve made over, and over, and over, again! You’re compromising. You’re compromising. You’re trying to compromise with this, compromise with that! People out there, our people, our citizens, out there, aregoingthrough Hell! And you’re letting it happen to them! We need leaders who have guts, who have the guts to stand up to this thing, and take it on. I’m giving you the chal-lenge. I’m taking it on! Let’s see what you can do.
The Attack on Social SecurityFreeman: The next question comes from a very senior Senate staffer, and this question did come from the Democratic retreat.For people who are not aware of it, President Obama travelled to the retreat yesterday afternoon to speak to the members of Congress. One of the things that this staffer pointed out to us is that, unlike any other session that took place, in the session with Obama, even senior staff were not permitted in the room—which gives you some idea of what probably went on in there!He says, “All of us are braced for President Obama’s State of the Union address, and very specifically, we are braced for what is broadly expected to be a wholesale attack on Social Security. That is likely, but also given the response that I understand that the President got, Feature 2
from those gathered here in “But the bottom line, and this Easton, and he may save it for a is what I’d really like Mr. La-Rouche to comment on, is that later date, but let there be no the financial industry in the doubt that there is going to be a United States knows a cash cow major attack on Social Security. when they see one. It would take, And whether or not Senate Ma-jority Leader Harry Reid can by my estimate, more than $10 keep up his spirited defense of trillion in private accounts to gen-erate the same amount of money Social Security, or whether he’s as Social Security pays out each going to end up buckling to the year in benefits. If the financial pressure, is still an open ques-tion.industry collected just 1% of this “For those people who missed sum in fees each year, it would it, Reid distinguished himself by mean another $100 billion a year saying the obvious on one of the into the coffers of Merrill Lynch Sunday talk shows a couple of and other such individuals. I think weeks ago, where he said that that if, in fact, there’s any hope of Social Security is not contribut-Senator Reid keeping the Demo-ing to the deficit, and that any crats together, in defending Social shortfall it faces is still very dis-Security, that this is a truth that is tant, and that in any case, it’s rela-going to have to be told. Mr. La-tively minor. . . .Rouche, do you agree that this is FDR Library“As I think everyone who’s part of the attack on Social Secu-An FDR-era poster publicizes the new Socialrity?”gathered in your audience knows, Security system, signed into law in 1935. ThisLaRouche: Of course it’s part Senator Reid was one of the lead-program, which has saved untold lives, is nowers of the fight against cuts in under fire from Republicans, Wall Street, andof the attack on Social Security. President Obama.Social Security at the beginning The purpose of the policy behind of George Bush’s second term. this attack on Social Security, and However, it is questionable whether or not he can keep otherwise, is mass murder. I mean, you know, the typi-all of the Democrats together to defend Social Security, cal problem with Democrats, who are decent Demo-crats, is when it comes up against the health-care bill, during this term. My thoughts on the matter, as some-one who is tasked with working on this, is that since and we raised the question of the moustache, and they what Senator Reid pointed out in defending Social Se-say “that’s over the top.” That’s not over the top; they’re curity was undoubtedly true, that we have to identify under the bottom.the reason why Social Security would be under such Look, there are two areas here: First of all it’s im-moral, simply immoral. There’s no question about constant attack. . . .“Obviously, for anti-government conservatives, Social Security. It’s a system that worked, it does work, there’s nothing wrong with it. There can be abuses of it, Social Security is the worst nightmare imaginable, be-cause it’s a government program that actually works. Its but there’s nothing wrong with it. And it’s better than administrative costs are less than one-tenth as high as the alternative; you better start from there. Just think of they are for the financial industry, there is no fraud, and the alternative; what is the alternative? See, the point is, the program does exactly what it’s supposed to do, in a society, which is consistent with the intention of which is provide a core retirement income, and protect our Constitution—remember, our Constitution was a workers and their families from disability and early conception, on which the existence of our nation de-death. . . . One element of this is that Wall Street really pended, at the time.In other words, as of 18, ifHamilton had not madehates the idea of government money going to anybody but them. And since the vast majority of Social Security the proposal he made, on which the entire Constitutionbenefits are going to low- and middle-income families, is premised—the entire Constitution is premised on Hamilton, Hamilton’s discovery! It was not unique to the program is an outrage to their sensibilities.28 Feature EIR January 28, 2011
him alone, but he made it clear, and proposed it in 18. That was the foundation of the U.S. Federal Constitu-tion. At that point, what Hamilton solved, was the basis for organization, under which the existence of theUnited States could be defended. So, the Constitution was based on the principle on which thevery existenceof the United States depended, entirely: And that was, acredit system, not a monetary system.So, when you’re talking about money, you’re talk-ing about equityin terms of money as money, you’re not in the American Constitutional orbit. Money, equityformoney is not the issue! I don’t give a damn about money! I just want an orderly credit system, and a money to match. But the value lies not in the money! The value lies in the productivity: It lies in the number of lives maintained, and productive lives, in particular. It lies in the education of our children. It lies in all of these things that make the nation work, in terms of physicalecon-omy.In other words, you have two things. You have a money system, which can be in one of two forms—a monetarist system, which is what all these damned pol-iticians talk about, is a monetarist conception of money! The United States Constitutional conception of money is a creditsystem, not a monetary system. It is credit for what? As in the case of the Massachusetts Bay Colony and the Pine Tree Shilling. It was credit for what? That you would go engage in a debt, a money debt, agree-ment to pay, with goods. And because you knew, that you would be able, to produce more value, by postpon-ing the payment than you would, by taking it now. The politicians talk in terms of money terms. They talk about monetary equity. The United States Constitution is not based on monetaryequity. It’s based on a credit system. That’s our Constitution. If you want to practice monetary equity, go to another country! Move your of-fices from Washington to some other country, where they do this kind of thing. And tell all the others who have the same view, to make the same move.The credit system does what? What’s the basis for economy? Stop all this technical nonsense; this stuff doesn’t mean anything. The question is the productive powers of labor. What do we mean by productive powers of labor? We mean the ability to maintain a pop-ulation, with a certain life expectancy, and with a cer-tain power to produce that which it needs for its own existence and for the improvement of society afterward. In other words, it’s a physical standard. So, we don’t assume there’s any value intrinsic to money. We assume January 28, 2011 EIR
that we need a credit system, which uses money as an instrument forthis purpose, of going into debt in order to produce physical wealth, or the equivalent of physi-cal wealth, and if we don’t materialize the obligation with physical wealth, or the equivalent, or that which produces physical wealth, like the human being, then it’s not worth anything.European systems are monetarist systems. The empire is a monetarist system. The American Constitu-tion is based on a credit system! The entire design of the Constitution, especially its Preamble, is based on this conception of a credit system. It’s spelled out very clearly, in detail by Hamilton, in his reports on, for ex-ample, OnManufactures; his Report on Public Credit. This is exactly what the Constitution means.And the problem is, our Democrats are talking about a monetarist system, and the monetarist system is the disease that’s killing us! Franklin Roosevelt’s intention, in terms of the Glass-Steagall Act, was a credit system; Roosevelt all the way through, was a credit system, not a monetarist system. And the problem with our Demo-crats, they’re not Americans. [laughter] They may be nice Europeans, but they’re not Americans.And we’ve got to get the Democratic Party back into the fold, of humanity, and decency, and things like that. And that means we are enforcing a credit system. We want to see the goods! Just like they did in Massa-chusetts: They wanted to see the goods, on the date that you’re supposed to pay the bill, you’re supposed to have delivered the goods! And the assumption is, that you can afford to pay more tomorrow, than you can today, by being given the opportunity over a period of time, to produce something which has greater value, relative value and usefulness to humanity, than if you had used up your expenditure right then. Like, you know, if you want make babies, you’ve got to grow them. If you want a population, you’ve got to grow babies. That’s the same thing—that’s a credit system. Give Mama the credit she deserves!So, don’t worry about this stuff; I’ve got this right!Now, I suggested to the kind gentleman in the Dem-ocratic Party, that if they just halt for one minute or two, and discover what I’ve said: They will get an ABC, and for the first time perhaps in their life, get a really com-petent understanding of what the word “economy” ought to mean! I mean physicaleconomy! A physical economy in which the idea of credit, a monetizable credit, is based on these considerations. Yes, we use money, but what does it represent, in reality? Paper? Feature 29
Monopoly money? Boardwalk, anybody? That’s the problem. We’ve got a Boardwalk mentality in the Dem-ocratic Party. They should take it back to Salt Lake City.
The Universe Operates on Universal PrinciplesFreeman: The next question comes from our poor, beleaguered Stanford group—they’re hanging in there, but, they’re having a rough time these days.Here’s the question: “Lyn, obviously, these days, everybody is talking about unemployment, and unem-ployment is undoubtedly a problem—it has reached record levels—but one of the things that we have been looking at, beyond unemployment, is the question of jobs. Because the jobs crisis—to our mind—is separate from unemployment. And we want to just discuss what we have been up to, and what your thinking is on this.“The jobs crisis started a long time before the bubble burst on Wall Street in 200-2008. And we began to pursue it, because it proves to us that something is very, very wrong. We put together a number of studies, in-cluding some studies that we were involved in, back at the time that some of us were in Washington, and es-sentially, here is the picture that we have: From 2000 to 2008, what’s referred to as GNP grew—paper. We also saw soaring corporate profit—also paper.“Now, here’s the rub: There was also relatively low unemployment; but when we then turned from unem-ployment to job creation, what we saw was that from between 2000 and 2008, job creation was lower than during any period of growth since World War II. Then we came to 2008; and between 2008 and 2010, every job that had been created in the previous eight years was wiped out. Now, even if the blowout of 2008 had not occurred, we would have entered 2010, with 1 mil-lion jobs less than every economist, of every stripe, says we should have had.“Now, here’s our view of things. Our economy in America, has always thrived on the principle of dyna-mism. We’ve shed jobs in outdated and less competi-tive industries, and we’ve replaced them by adding jobs in new fields. That essentially has stopped; and nobody seems to know why. Emerging technologies did, in fact, help send jobs abroad, and replaced workers with ma-chines. But that always happens. It should have also spawned domestic investment in innovative industries. But that never happened. There was no investment, and nobody can figure out why.“Now, some of us, back in the late 1990s, were in-30 Feature
volved in what was going on in Washington, and back when we were there—and we were part of this—we came up with a variety of studies that were essentially published by the Bureau of Labor Statistics, that fore-cast that as businesses reaped the gains of new trading markets, that they would most certainly invest in tech-nologies that would boost American productivity.“We forecast at the time, that there would be a sig-nificant growth in high-tech jobs, but also that the man-ufacturing sector would rebound, and that technology and science would drive that turnaround. That factory workers would be working on cutting-edge electrical and communication products, on semiconductors, on satellites, on various things that were germane to the space industry, and also their offshoots, like cable TV equipment, cell phones, etc.“But the fact is, that it didn’t happen. None of it hap-pened. The normal pattern of shipping off lower-skilled jobs, then reaping higher profits for industry, then lead-ing to investment in higher-value products that couldn’t be made elsewhere but in the United States, stopped. The pattern that we’ve always seen in America, of laid-off American workers then being re-employed in new, innovative jobs, stopped; none of it happened. In fact, the opposite occurred. And the question is, why?“Now, ultimately, our conclusion is that the answer to why this happened doesn’t lie in the realm of eco-nomics, but that it is essentially a cultural question. Be-cause it really does go to the question of the idea of progress. This is unfortunate, because economic prob-lems are easier to solve than cultural problems. We un-derstand that what you will say is that NAWAPA solves all of this, and probably you’re right, it does. But, we still want to know why this happened. We need an ex-planation for it, especially since some of us were in-volved in it. Would you share your thoughts with us?”LaRouche: Well, it’s easy. You used the wrong cri-teria. It’s not the number of jobs, or the so-called tech-nology attached to them, as named, that means any-thing. I’ve been measuring this thing all along, and I never made that mistake. I never had a problem; be-cause I used the right standard.What is required is the increase in the capital-inten-sity, and in the energy-flux density of production. This depends upon things like basic economic infrastructure. Now, for example, if you flood the United States with buses, and take away the railway station, or if you fill up the highways with trucks, and take away railway sys-tems, you’re an idiot! So, counting numbers of invest-EIR January 28, 2011
ments, and things you call high-tech, isn’t worth any-thing. Because we destroyed the railway system. We went to a trucking system rather than a railway system, and a trucking system is inherently inefficient, physi-cally, except for short-term deliveries. But for any long-term movement of goods, rail is still, if you include magnetic levitation, the most efficient. And otherwise, you have sometimes tubing systems, which if you’re going to get one, you can have potentially a 1,000 mile-an-hour equivalent of a train moving through an evacu-ated tube. That will tell an airplane pilot that he’s got a vacation coming to him. All you have to do is get in this tube and whoosh!, 1,000 miles an hour. It’s the only way you can do it, right now.
Liberalism, or Physical EconomySo, the question you have to look at, is the things I look at: How the entire economy functions, not on the basis of elements, the sale and purchase of elements. What happens, is, people get into this kind of mistake, who otherwise are too smart to fall for it, because they’re in a society which is Liberal, and they define a market in terms of Liberalism. And Liberalism is a question of what? Well, how you feel, or who you feel.So, therefore, Adam Smith, who is a follower of Sarpi, says there is no such thing as truth; mankind does not know the truth about anything. Mankind has an emotional reaction to pleasure or to pain, and people will prefer and value more highly, that which gives them more pleasure, and value less that which they find painful. It depends on how they define pleasure and pain. That’s Adam Smith; that is the entire system of marketing that we have. That is the controlling charac-teristic of behavior.How does the advertising business work? It condi-tions people into an opinion of what they look like; what they feel like; what their esteem is; their lack of esteem; the amount of sexual pleasure that they’re get-ting, or the amount of sexual denial they’re enjoying—which sometimes is a form of relief if you’ve overdone it the other way.So, the point is, the standard has to be correct. The standard is, the universe operates on universal laws, and if you don’t have a universal law that accounts for it, if you haven’t measured it by universal law, you don’t know what you’re talking about. So, you have to have a standard for knowing what is valuable for mankind.All right: How can you increase, what? The energy-flux density of the planet, of mankind to the planet? If January 28, 2011 EIR
you can not do that, consistent with the energy-flux density, applied to useful purposes on this planet, you don’t know what economics is.Therefore, the standards that you go by are pleasure standards. You have people who are buying more of this; buying more of that. What good is it? What does it do for the economy, for mankind? And therefore, the problem is, that people assume that the equivalent of monetary value, or pleasure/pain, Adam Smith, for ex-ample, that that’s the standard. And if you tell them that this thingamajig is a new gimmick, and they buy it, and you say the market has gone up for this, and the produc-tion of this is increasing, you find that the economy has collapsed. You find out what is going on with our edu-cational system, our university system, all these other things. We have been spending a great amount of money, on things which have very little value, or even negative value, for the economy.Go back to the time that Kennedy was assassinated. What was Kennedy doing, and what happened? Ken-nedy got us into the space program, and was going with a machine-tool-design development program, and was against the deindustrialization, which was already being launched then, by Wall Street. Then they killed him. We spent a lot money in Indo-China, from which we never really returned. We had a space program, developed under the initiative of Kennedy, which was producing wonderful things. But by the time that we launched the space program, especially the Moon landing, we were already destroying the space program more rapidlythan we were building it up. We had in our technology, developed by NASA and similar relations in technol-ogy, we were getting, for every penny spent on the space program, ten cents worth of increased productivity. What happened? The space program was being torn down already at the time the Moon landing had oc-curred.In other words, the point is, we were talking about buying high-technology things, or whole categories of what we call “good things,” but they weren’t good things! You didn’t have a railway system, you had a trucking system—a damned fool you were! Again and again. So what happened is, you had a culturalchange, in what was considered desirable. You had a cultural change in the things you thought were good things to do, good objects to have.And all the time, as I was there on the job, I can tell you, that from the time that Harry Truman took over the Presidency, we were on the way down. What we had, Feature 31
going into the 190s, was the resi-FIGURE 1due, the inertial residue of the pro-ductivity we had developed under Franklin Roosevelt—andwe wererunning the system down. Yes, we were buying objects. For example, the automobile industry, which I was a leading expert on back in the 190s. It was a fraud! The whole industry was a fraud. It had not been a fraud originally, but it was turned into a fraud.What was the automobile in-dustry? Forget the automobiles! It wasn’t just automobiles. It was called the automobile industry—what was it? It was the “make any-thing-and-everything” industry. It was the industry of engineering. We made airplanes; we made things that people had never dreamed of before, not just auto-mobiles. We cut down on automo-biles, private automobiles. You couldn’t get one after 192, unless you had a special li-cense, a special “in” someplace. We were running around with our old clunkers, and they weren’t so good.We had the productive facilities. We have destroyed the productive facilities. We said it was the “automobile industry.” It wasn’t the automobile industry that was the problem that collapsed it. We collapsed vast space; we destroyed the productive labor force of the United States, which was still left in the auto industry. You could have turned them around and produced almost anything! You want to produce railway systems? You want to produce aircraft systems? You want to produce anything? We had in the machine-tool capabilities in the automobile industry and the related aircraft indus-try, we had the “make anything-and-everything” indus-try, still, in terms of the machine-tool skills, engineer-ing, and so forth, despite all the failures.We have been on the way down as an economy, ever since Truman became President! It didn’t show up that clearly, because we were waiting to waste out our capi-tal resources, but we never replaced the capital re-sources we were running down. Here we had the space program: Do you realize what we could have done with the space program?Go back to NAWAPA, for example. NAWAPA was 32 Feature
LPAC
designed, fully designed and operational in design, in 19. It was suspended, in order to devote our resources to the Vietnam War. And it never returned. Right? Do you know what that means today? That was then, and would be now, million jobs. Four million high tech-nology jobs. Upgrade of everything. And we destroyed it. We never did it.The NAWAPA program today, probably means be-tween and . million jobs, starting very soon. Now, to get that job program going, and we can get it going, still, people who are a little bit younger than I am, or almost as old as I am, are still able to do things, at least when it comes to science-driver programs. We have the ability, still, to launch a program, a NAWAPA program, which, in three components alone, will create . mil-lion jobs. Jobs of the type you’ve never seen before, but we have the capability of doing. This will increase the rainfall incidence across the nation, by a factor esti-mated at about 2. times every drop of water we pull into the system. It would change the climate. We would create conditions beyond belief today. And we could do it. We didn’t do this. We destroyed our industries, we shut down our automobile industry, we shut down ev-erything approaching it. Now, we ship our industry overseas. Our people here are left unproductive, or left EIR January 28, 2011
FIGURE 1
Proposed Route of the Bering Strait Railroad and Tunnel
BeringStraitRailroadTunnel
Main railroad lineExisting railroad lineProposed future lineOther future rail lineThe proposed Bering Strait RailroadTunnel is 65 miles long between theportals, with 53 miles under water,and two islands, Big Diomede andLittle Diomede, in the central channel.
Hal Cooper, President, Cooper Consulting Company
The proposedBering StraitRailroad Tunnelwould link up withthe railroads built inNorth America aspart of the expandedNAWAPA program.As a result, Eurasiaand the Americaswould be connectedby a land route forthe first time inhistory—to thehorror of the BritishEmpire.
without the means to produce, to buy the things they need, to maintain the things their communities require.So, you can’t say that we’re buying good things. We’re buying this, we’re buying that. We’re on a buying spree. So what? Now the buying spree is off, the buying spree is over. Used it up.What we need now is, we need to have a much harsher standard of performance. And the problem is people who are not born in my generation, really, gen-erally, with a few exceptions of somewhat younger people, really don’t know what economic reality is any more, as we used to know it. We just have a shrinking number of people, a shrinking number of people who have an understanding of this, and we rely upon the leadership which they’re capable of providing, by get-ting some of these guys who were thrown out of work, out of the auto industry a few years back, getting them back into operation.We can rebuild this nation, but you’re not going to do it, by crunching numbers with this operation. You’ve got to have a fundamentalchange in the way our peoplethink about the economy, about economics in general, January 28, 2011 EIR
think about social policy, think about money.I’m at my age here, and I’m looking at the prospec-tive obliteration of civilization, even with the kinds of things that some of these good Democrats think are sane. They don’t know that what they’re proposing, their at-titude on this thing is clinically insane! The world is going to Hell, and nobody’s stopping it, to speak of.You’ve got an effort in China to overcome this thing. You’ve got an effort in India, which is a little more lag-gard, to try to do this. In Europe? Europe is being self-destroyed! The United States is being self-destroyed! Central America, South America, are being self-de-stroyed! Africa is being murdered! I don’t see any im-provements any place.And I was looking at all of these figures, back there, back in the ’0s and ’0s, and I saw exactly the oppo-site. I was talking about really doom and gloom, back then! And I was right, and others were wrong. And so therefore, you should look at some of these figures we’re using and realize what was systematically wrong about that method of thinking about value, and just ask yourself: Were you thinking about Adam Smith’s notion Feature 33
of value? Were you thinking of terms of Sarpi’s notion of value? Or were you thinking in terms of what I think of, as science?
Save the States; Shut Down Wall Street!Freeman: [This] question comes from the mid-At-lantic corridor:“Lyn, I’m sure you’re aware of the fact that there has been a great deal of discussion about state bank-ruptcy, and this really was thrown into high gear with a piece in the NewYork Times this week about a looming effort from House Republicans to allow states to enter into bankruptcy and basically screw public workers out of their pensions.Some of us feel particularly guilty about this, be-cause the fact is that the question of state bankruptcy was a question that we first took up back in 200-200 when we were talking about the HBPA [Homeowners and Bank Protection Act], and one of the things that we were addressing at the time was not state bankruptcy as such, but essentially the equivalent of, what I guess you would call debt moratoria (which we didn’t want to call debt moratoria.)“There are a couple of things about this whole dis-cussion that have occurred to me, and to some of the people that I have been working with, and that is, whether the Republicans actually are serious about bankruptcy for the states? Or, if just talking about bank-ruptcy for the states is the entire strategy?“Why do I say this? Well, I say it because all of the talk about state bankruptcy raises borrowing costs and will greatly enrich banks. As long as you keep a balance between talking about bankruptcy and actually follow-ing through on it, you create a premium that banks can collect on cash-strapped states. Even if they’re not doing the lending themselves, they run the instruments that deliver the debt in the form of bonds to institutional investors, or even individuals. Increasing those bor-rowing rates helps the banks get money, basically, off of pure rumor, and taxpayers in the states pay the price. It’s a pure subsidy to the banks.“The more I think about it, the more I think that Re-publicans have been told by the bank lobby and by Wall Street to just talk about bankruptcy for the states, to give them a little extra profit. I don’t think that they ac-tually want it to happen. I may be getting paranoid, but I’d really like you to comment on this.”LaRouche: They’re quite serious about state bank-ruptcy. Absolutely! They intend to destroy the United 3 Feature
States. That’s what they’re doing! I mean, why do we fall for this stuff? Of course they intend to go to state bankruptcy. What’s the alternative? The alternative is, shut down Wall Street.Why do we have a problem? Because of Wall Street! Look, you could wipe out every bank on Wall Street, and the United States would come out nice and safely alive. What we need is a credit system! How do you think we started in Massachusetts? With a credit system! The little state of Massachusetts, at that time, was out-producing England, in terms of quality of product and in terms of performance. The United States, back in these periods, was out-producing England in terms of produc-tivity of labor. Oh, you had a few industries there.The problem is: Get rid of this nonsense! If you bankrupt the states, once you start down the road of bankrupting the states, what are you back to? Go back to 18! What happened in 18? It’s when Hamilton devised a solutionfor the bankruptcy of the states! And this solution was called thePreamble of the U.S. Fed-eral Constitution. It’s still our Constitution. We don’t bankrupt the states. We bankrupt the bad banks. We bankrupt the swindlers.What is Wall Street doing, for example? What is the Federal Reserve System doing? It’s running a gambling house! With U.S. dollars. It’s printing U.S. dollars, as phony currency, as Monopoly money! Print more Mo-nopoly money, and spent it on what? On betting! On what? On odds, on margins! And that’s what the Fed-eral Reserve System is doing.That’s what has been done with Fannie Mae and Freddie Mac, which is what we were dealing with in 200: the bankruptcy of Freddie Mac and Fannie Mae. They were both bankrupt. Why were they bankrupt? Be-cause of big help from Alan Greenspan. What did we go into? Alan Greenspan went really into the gambling busi-ness. So we have gambling losses! Wall Street is suffer-ing from gambling losses! The states of the United States, the individual sovereign states, are suffering from being sucked into gambling games, which are not legitimate. And they use a monetarist system as a cover for this.I, as President, would be easily able, with the sup-port of all these angry people in the states, to put through the action, which would simply wipeall that money offthe books. By doing that, and by not obliging ourselves to bail out gambling debts, we would have the trillions of dollars needed, to get the United States economy moving again. And what I laid out in this thing is the solution: Glass-Steagall. What happens to the gambling EIR January 28, 2011
debts? Ha-ha-ha! (Gotta watch out for the mafia, they’ll get upset with me.)Just think about NAWAPA: Do you know what . million jobs, of a public works engineering capability, mean, for every part of the United States? Look, we have to build a modern high-technology rail system, to deliver product which is going into the mountains out there for NAWAPA. We have to haul this stuff. We’re hauling more weight, and building more height, in terms of dams, and everything else, than you ever heard Creative Commons/J. Kraemer’s photostreamof before! Seven and a half million The whole economy is built around gambling debts! The monetarists even went to thepeople building the nuclear industry, Indian reservations to set up gambling industries. Shown is a casino on the Tulalipbuilding all these systems, and build-Reservation in Washington State.ing NAWAPA, the greatest water knowledge, and know how to do this, to direct it. But system the planet has ever known!We’re taking the core of the U.S. labor force, what’s we have a lot of people still left from the auto industry and other things, who have engineering skills, who can still a labor force, and we’re putting it, suddenly, allbackto work. We’re cancelling all gambling debts. Do you carry out the job, and who can train the labor force for think we have to put states into bankruptcy? No! We have the rest of it.to put a lot of banks into bankruptcy, because what they We can take our young people, who are wasting on did was set up a gambling racket! And we’re indebted to the sidelines, young people who are going into the 18-Monopoly money, operated by gambling rackets!2 age group. We can put them to work, open up the What did they do? They went to various parts of the equivalent of CCC camps, we can train these people. place, and said, “We’re going to help set up gambling in We’ve got plenty of projects for them. Take them out of this state, gambling in that state. They went to Indian crime and slime, and put them back into dignity, again; reservations, and used the Indian reservations, as a ploy make life have a meaning for them.for setting up gambling industries. And the Shylocks We can easily—we still have the opportunity—if would come in there, run the gambling industry, loot we have the will to do so. If we can get the complicity the Indians—you know, rape them, practically, and of at least some people in our government to make sure move on to the next one! Gambling! Gambling debts!this happens. What I’ve laid out, as a draft in this state-No, there’s nothing here, nothing at all. That’s the ment today, is sufficient to solve the problem. If you want to solve the problem, do it. What I’m doing will way you have to look at it. We’re just a bunch of suck-ers, but we’re going to become un-suckers. And a lot of solve the problem. Put the other things to one side. people are going to get shocked, because—well, sup-They’re trash. Bad habits which the population has built pose we don’t win? Okay, a lot of people are going to be up over several generations, since Franklin Roosevelt. dead. Most of the people are going to be dead. You have And while my generation, some of it, is still alive, we no choice.can still save this nation, and save civilization. We just What I’ve indicated is the only choice, and NAWAPA have to decide we’re going to do it.is the key to it. Seven and a half million jobs, which is what I know, safely, we can guarantee, if the project is This Is Warfare: Get Obama Out!Freeman: Just to confirm what Lyn is saying, about launched. Seven and a half million jobs, including high-the fact that there are still people out there, who are ca-tech jobs beyond anything you’ve imagined. It will re-quire people in my age group, the retired age group so-pable of projects like NAWAPA, I have about a dozen called, because they’re the only people that have the e-mails here, from people who are saying, “You know, January 28, 2011 EIR Feature 3
NAWAPA’s a really big project floating away. In any case, if you and if you’re really serious about don’t get this guy out, my estima-tion is, you can’t save the United it, you’re going to need an archi-tectural design team, an engi-States. And my estimation is that neering management team,” and he was put into the United States, all these people are basically by a British operation which was asking for jobs. And I’m going intended to destroy the United to pass these on to the NAWAPA States. So supporting Obama is group, because I think they like supporting treason.should get jobs.And you have to take that se-riously. Because I can see, under This questions is from a this situation, with these signing senior state legislator, who says, statements and the other pieces “Lyn, there really is no way of corruption that have come in around it. Those of us in state here, I don’t think that other-government over these last years wise, without Glass-Steagall, have really screwed up, and and without action to get Obama screwed up badly. We couldn’t out on his mental condition, I figure out how to deal with don’t think you can save the budget deficits, so we got cre-ative and we cheated, and one of United States. You can lose it the results is the fact—and it this year.may be an ugly truth, but it is So if you’re a patriot, you White House photo/Pete Souzatrue—that the combined total of Asleep at the switch. “You have no chance ofwant Obama out.the underfunding of pension saving the nation if Obama remains President,”After all, what has Obama funds is about $2-3 trillion, and said LaRouche.given us? He’s given us the T- it’s something that we’re going policy of Adolf Hitler, which led to have to deal with.to the death camps. And the evidence is now, fully, that “My question to you, and it’s a question that legisla-the British view, by Donald Berwick and Tony Blair, tors all over the country are asking, is, do the states have who are the authors of the Hitler-type health-care policy, any leverage at all in dealing with their prospective the death-camp policy, for Britain, have imported this budget crises? Can they, for instance, take the approach into the United States: themurder of our citizens underthat FDR did when he was Governor of New York? these pretexts, just like Adolf Hitler did! And just as the Nuremberg Trials condemned doctors, German doc-Also, very importantly, what can we in the state legisla-tures and state governments do to accelerate the imple-tors, for complicity in this crime, and others. Adolf mentation of Glass-Steagall?”Hitler and Obama have a common trait, especially when LaRouche: Well, this is a warfare question—and I it comes to health-care policy. That’s a fact! And the mean warfare question. First of all, you have no chance, first problem we have: We have all these guys out here in my estimation, of saving the nation if Obama remains saying that when I say this guy’s comparable to Adolf President. Now, Obama is fully eligible to be discharged Hitler, they say I’m over the top. They’re under the top. from the Presidency under Section of the 2th Amend-They’re under something.ment. He’s a mental case. But he’s also a puppet of the So the problem is, that we’re not serious enough British Empire. The British Empire’s our enemy and about the need to save this republic and to save civiliza-he’s a puppet of theirs. He’s a mental case. You can’t tion. We want to be nicey-niceys. We want to get along. We want to, you know, go along to get along.expect decent behavior from him of any kind.And that’s our problem. We have to realize, face the If you get him out, it would mean putting Joe Biden in, but Biden’s human. That I know; Obama is not. It’s fact, that civilization as a whole is in a desperate state, in desperateperil, from, principally, the British Empire something floating that looks like a head and some leg-gings there. I don’t know what’s inside them, some shoes, and its effects, and from the ideas that go with that, such probably weights to keep the balloon in the head from as monetarism.3 Feature EIR January 28, 2011
If we want to survive—if I were President, now, I could guarantee we could survive, on the question of policy. With this guy in there as President, I can not. And neither can anyone else.So we’re going to have to ramrod policies through, which are consistent with our Constitution, in order to save the United States and contribute to saving civiliza-tion generally. If we do that—if we can do that, we can save civilization as a whole. If we are unwilling to take that challenge, to throw this bum out, put him some-place safe where a mental case like him can be kept safe, we don’t want any embarrassing things to happen to him, but get him out! And you’ll find that we’ll have no problem.Why? Because the people in the states, who are competent politicians, want this! They don’t know what they can get. I know what they can be given, and it would be sufficient.A lot of this debt is fake, so let’s not worry about it. We can also use the principle of the creditsystem, the 18 credit system which is the basis of our Constitu-tion—it’s our Federal Constitution, that’s the basis, that’s the law. We can use the credit system to create a category of credit, under Federal supervision at mar-ginal rent rates or loan rates, to handle the problems, the legitimate problems of the states and the state creditors. We will do this by taking the funds we use for the credit to build up the states and employment in the states.So, by the Federal government taking over what is its Constitutional responsibility, the states of the United States as a whole can solve the problem, under the prin-ciple of the 18 credit system rule, which is the same thing as that which is the Preamble to the Federal Con-stitution.There’s only one authority that can do that, and that is the Presidency of the United States, with the consent of the Congress. And that’s where the problem lies. But I don’t think you can get the consent of Obama! And the thing that may be the death of your family and neigh-bors may be Obama being in there. If Obama is out of the Presidency, he’s no longer a danger. If he’s in the Presidency, he’s a nut, he’s a dangerous case; he’s got the mentality of a Nero and an Adolf Hitler, both. That’s what his mentality is. That’swhy he is eligible for ex-pulsion from office under the 25th Amendment, Section4! He’s a Section case! Who has all the mental quali-fications of man to be taken someplace else, where he can do no harm to himself or others!If we do that, we can solve the problem. And it’s all January 28, 2011 EIR
these Democrats, whowill not face that reality, that this is a Section of the 2th Amendment case. You throw him out of office, and there immediately is a change. And then these policies can take over.But we have, under our Constituion, we are a credit system, not a monetary system. And under our Constitu-tion, as in 18, when the states of the United States were about to go bankrupt, at that point, the proposal was put through, on which theadoption of the FederalConstitution was based. The entirety of the Federal Con-stitution hangs on that keystone decision. That’s how a Federal government was created in the United States! It was on Hamilton’s prescription, on the question of bank-ing, of commercial banking. That’s our system.Now the British are saying we should use their system. We say, they can stick their system wherever it makes them most comfortable.But that is the solution, that is the answer! There is no other answer! There is no other solution, than ourFederal Constitution and the 18 rule, presented by Alexander Hamilton, which is the basis for the Federal Constitution. How do you think the Bill of Rights got in there? The Bill of Rights was a specification of the re-sponsibilities of a Federal republic! It’s not just some commentary. No, that’s the law! That is the one, un-changeable law in the Constitution, is that Preamble. And that’s the law. We enforce the law.You get another President—you know, if you need me for two days to be President, I’ll fix it.
What Should an Individual Citizen Do?Freeman: Lyn, I want to put one final question to you, and the reason why is because it is an identical question that has come, in one form or another, from literally every continent on the planet, and also from, by my count, about 19 states within the United States. And they’re all basically the same question. They all start out thanking you for all that you’ve done, and for all that you represent.But then, they go on to say, “As an individual citi-zen, I have only one question for you. What should an individual citizen do? That is, what concrete action can I take that will lead to a reversal of these policies, and a return to a path of progress?”LaRouche: All we have to do is unite, individually, around a common purpose, and that is to do this. That simple. Because if we are united to one single common purpose, and enough of us are united, and energetic well enough, among nations, and by nations, and so Feature 3
forth, and within nations, it will work. All we need, is what makes the difference between man and an animal. The human mind is capable of making a policy deci-sion, on which humanity can act with the force of being humanity. And that one decision, if made, and if supported, will solve all our problems—either by solving the problem itself, or by creating the circumstance in which the problem will, in a sense, solve itself.All we have to do is to return NASA, ESA, and the Hubble Heritage Teamto the intention which the Found-Man has unlimited creative powers to innovate, to make discoveries of universal physicalers of the United States Republic principles. LaRouche’s “Basement Team” is working on issues right now such as “Howcame to understand in the pro-do you manage the galaxy? How does the galaxy work?” Shown here is barred spiralcess of trying to craft a self-gov-galaxy NGC 1300.ernment, to correspond to their independence, ever since 18 on. And all we have to to our condition, to do what man can do. What can man do, is to create that same kind of society, where you had do? Do you realize what we can do? We’re having fun in the Basement with this, this kind of thing; what we a bunch of bankrupt states—then, totally bankrupt—with the banking systems, and by the introduction of can do—man’s power. We’re now looking at, how do you manage the galaxy? How does the galaxy work? the concept of the credit system, as opposed to the mon-etary system, Alexander Hamilton presented what was We’re looking beyond that toward other questions. recognized as the Massachusetts policy of a credit We’re looking at all kinds of matters. We have tremen-system.dous opportunities, intellectual opportunities, which If the members of the states realize that, and act in we can apply to these circumstances. NAWAPA is the concert on that; if the members of nations recognize best typification of that, because it is such—two things: that, and adopt the same policy, of the credit system, It’s feasible for us now, and it’s the greatest thing, that then we’re out of the woods. Because humanity will anyone can imagine, which can actually be done on this then work on that job, that task, rather than what they planet, right now.are doing now.So there, may be better things down the line, and But, we have to have in this—this implies a sense of certainly there are. But this is a good one to begin a federation of humanity, of the human species. We with.have a national government which, in our design, is an Freeman: And also, in terms of concrete actions excellent government—the best in the world, for that purpose—in terms of the relation of the states, and the that you can take as an individual citizen to insure that citizen, and the United States. What Roosevelt was this is done, is you can take measures to defend the con-working for was not for a one-world government, but tinued existence of this movement. And you can do that for a system of government among nations which are very concretely by making a financial contribution. respectively sovereign, but are united inthis principle, Whatever you can. We’re well aware of the fact that and are intended to cooperate, on this basis of this prin-these are extremely difficult times, and I know that ciple. And that is—what is it? The difference between some people, both here in the audience and who are lis-tening via the internet, have extended themselves. But man and the beast.at this moment, I would ask you to extend yourselves Man has creative powers to innovate, to make dis-coveries of universal physical principles, and related further. Because, clearly we have a job to do. We have a principles, and to use those principles by applying them very short period of time in which to do it.38 Feature EIR January 28, 2011