|10-09-2008, 09:46 PM||#1|
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Join Date: Sep 2008
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LaRouche calls for New Global Financial System
Transcript: The Planet Needs a New Financial Architecture
Increase Decrease12 Days Until Oct. 1
The Planet Needs a New Financial Architecture
Here is a transcript of Lyndon LaRouche's videotaped remarks on global financial/economic crisis, Sept. 17, 2008. The video can be viewed at www.larouchepac.com.
In 12 days from now, on Oct. 1, we're going to have an international webcast, as usual, but we're not quite sure that it's going to occur, because the U.S. economy may have entirely disintegrated, by that time. And, in a sense, I'm being witty, but not entirely, because that's actually a possibility, the way the government has been behaving recently, in dealing with these bailout situations.
We're now in a hyperinflationary process, caused largely by the measures taken under this government. Of course, as you know, back on the 25th of July of last year, I warned that this was about to break out, and I expected it to break out by the first of August. It broke out by the 28th of July instead of the 1st of August. So I'm wrong sometimes, hmm?
But, the system since that time has gone into a hyperinflationary mode, and it's accelerating. The measures which I proposed then, were, first of all, the Homeowners and Bank Protection Act. If that had been adopted, and it had a lot of support, in the cities, and counties, and states of the United States, it was never voted up because of the Pelosi problem in the Congress, and similar kinds of things prevented it from happening. A bunch of pieces of stupid legislation that were reckless were adopted in the meantime.
We're now in an aggravated mess. The recent series of bailouts, which never should have occurred—these entities should have been put into bankruptcy reorganization, in the normal way. Many of the assets that are listed, as the lost assets from these things, were dubious assets. Some of this may have been criminal, and should have been investigated for potential criminal action against those involved; we have a lot of bankruptcies, which there's a suspicion of criminality involved, recently, coming out of this kind of speculation, which has been going on recently.
But the essential thing is to save the United States. That involved, as I said last year, it involves, first of all, the Homeowners and Bank Protection Act. We must not shut down any essential bank, which is an essential institution of credit, within the chartered banking system, whether Federal or state. Even if these things are bankrupt, their doors must be kept open, their assets involved, their communities involved, they must continue to function.
I also proposed that we have a minimum of 4% basic interest rates—that was not done. We're now operating at 2%. Some idiots are trying to reduce it to 1 1/2%, which is a hyperinflationary nonsense.
We also proposed, and I proposed in particular, that we approach Russia, China, and India, as prospective partners of the United States, in initiating a new international monetary-financial system, based on the precedent of Franklin Roosevelt's Bretton Woods system. This would mean that we would, instead of relying on the present financial systems, which are hopelessly bankrupt, we would again create a credit system, which is only possible under the U.S. Constitution, because we are not a monetary economy; we are a credit system. That is, this country can not print money, except by authorization of the Congress, and by the Executive Branch, with the authorization of the Congress. We are a credit system. We are not a monetary system. We have an approximation of that under the Federal Reserve system. But essentially, our constitutional authority is that of a credit system. No other country in the world has this kind of system, that we have by our Constitution. We're completely different from Europe, the parliamentary systems and so forth.
Therefore, we represent, for Russia, for China, and India, which are directly, or indirectly, major trading partners of the United States, whether directly or indirectly. We represent something unique for the world, in reorganizing a new monetary-financial architecture for the whole planet. We together, if these four powers agree, and other countries would then join them, we can create, as if on a dime, a new international credit system, and begin to rebuild the world which is shattered now.
So, that is what we're going to discuss on the first of October, approximately 12 days from now. Am I clear?
Q: You're discussing the Four Powers—implementing this right now, with the prospective Presidential candidates, it doesn't seem too likely that either of them would be willing to adopt that kind of proposal, but in the U.S. there are more institutions than just the Presidency. But how, how do you see us...?
LaRouche: A thing like this happens only under one kind of condition: They're scared to death. And what is happening now is going to terrify nations, and it's going to terrify the people of the United States. They're going to be screaming for a solution, knowing that the present institutions and the present policies won't work. And frankly, the two candidacies now are both failures. As it stands now, there's little likelihood that Obama would win the election. He's lost his trust fund, so to speak, that he was relying upon. There are problems with McCain. I don't know if he can shoot caribou from the air or not. But anyway, there are problems there. Neither of them has addressed, so far, or even threatened to address, any of the real issues on which the continued existence of the United States depends.
So therefore, if something happens, it's not going to happen because of a Presidential candidate, these candidates. It's going to happen because the country is scared, and because people in Europe and elsewhere are scared, and see that there is no hope for them, unless the reform is made. Under those conditions, whichever dummy were elected in the United States, he would have to follow, carry out this kind of policy if it were adopted. That's reality, and we're now come to the area of reality.
Q: You mentioned in the very beginning, that we basically, within the next 12 days, you could see the complete disintegration of the entire economic system. Now, what does that mean? Because that means that we have a very short window of time in which to organize. How must we act now with the population?
LaRouche: Well, the issue is: The bailout, the AIG bailout, added to the previous bailouts, which I think, in many cases, are actually unconstitutional, and possibly involve potential criminality. But the question of investigation, to see if there is potential criminality under our Constitution, is there.
But apart from these considerations, these bailouts are insane! They are intrinsically hyperinflationary. What should have been done, is, these entities should have been put into bankruptcy reorganization, not liquidated, not bailed out. And so, we're at that point, where the whole system can be blown out by these kinds of measures, that brought us to this point. This AIG thing was one blow too many. I don't think the system can withstand it for long. One or two more such cases, and the entire system can blow out. We could find a situation, therefore, in which there would be no election because there would be a complete financial breakdown of the system, conditions under which you couldn't conduct an election. You'd have to postpone it for reasons of rain, like a baseball game.
So, we're in that kind of situation.
What's happening now, is, behind the scenes, not everybody in this country in power is stupid. We have actually people in some positions who are reasonably intelligent. They may be reluctant, but they're intelligent. They are capable of recognizing what I've just described. They see the facts correspond to it. People in the Congress, people in other institutions. And in this case, if they come out and say this, together, the changes will be made. Because everybody's ready to accept the fact that the President is an idiot, and nearly everybody in his administration is an idiot, and that what the two leading Presidential candidates are saying is totally incompetent and silly.
Under those conditions, the people who are threatened by this kind of situation, will tend to get, suddenly, very reasonable, and very demanding about it. And it has to happen now, not next January—now. If the United States is going to be saved, it's not going to happen in January. It has to happen now.
So, we are about at the limit, on Oct. 1. We're about at the limit for the United States: Either can we do something by approximately that time, or I'm not sure we can say we're going to have a United States. It will just go away, all by itself. It's that bad.
Q: Could this sort of bankruptcy reorganization happen with the current Democratic Party and Republican Party leadership right now?
LaRouche: If they're sufficiently terrified, yes. And I think they're about to become sufficiently terrified. I think in the next dozen days, we'll probably get some stroke of that kind of terror, screaming terror: "Save us! Save our butt! Save our butt!" Americans don't say, "Save my soul" anymore; they say, "Save my butt!"
[The rest of the approximately one-hour long dialogue between the youth and LaRouche will be transcribed tomorrow.
Last edited by Samarkis; 10-09-2008 at 09:51 PM.