Obama and Inter-Alpha must go:

GLOBAL 'GLASS-STEAGALL, NOW!'

Lyndon H. LaRouche, Jr.

March 2, 2010

At New York’s Queens College, on Dec. 2,1971, I subjected pro-Keynes Professor Abba Lerner to a richly deserved humiliation. Thus was done in a widely celebrated debate, one which centered on the implications of the specific issue of a proposed, fascist form of monetarist policy for Brazil. Lerner defeated himself, when had argued against me, that the German Social-Democrats’ failure to support (what was in fact) Hitler’s own fascist economic policy, was to be blamed for bringing Hitler into power. Since that same year, 1971, that policy is now represented by Lord Jacob Rothschild’s group’s present policy for Brazil. The outcome of those combined 1971 developments, is to be known today as the character of the operations of the Inter-Alpha Group. Today, the harvest of the launching of that very same policy of the Inter-Alpha Group, now over the 1971-2010 interval has brought the economy of the entire world to the brink of collapse into a world-wide crisis, one which is to be fairly compared to a presently onrushing, breakdown-crisis of the economy of the entire planet.

At this moment, the United States, in California and elsewhere, is hovering at the point of an already fully operational, generally, accelerating breakdown-crisis of not only the entirety of the U.S. economy, but is actually a currently accelerating, chain-reaction collapse of every part of the economy of the world. Any contrary estimate is either a product of wishful foolishness, or yet another Obama Administration lie. Consequently, the immediate security of every part of the planet now hangs upon the immediate ouster of President Barack Obama from the office of the U.S. President.

There is an available option for avoiding such a collapse.

If a significant portion among the present nations of the world, will join with the United States of America in subjecting every part of the planet, implicitly, to the only available remedy for this onrushing, planet-wide disaster, the imposition of what is known as a strict form of a “Glass Steagall” standard among the nations of the world, the presently onrushing general breakdown-crisis can be halted abruptly, and an infrastructure-building-based, physical-economic recovery, one which must be launched among a global set of nations organized as a fixed-exchange-rate system of long-term credit.

One must never overlook the fact, that the present crisis has that recent history. One must never forget that I forecast, on July 25, 2007 exactly what has happened since that date, to the present point in 2010. We are presently at the crumbling edge of the cliff for the worst, existential crisis of the economy in modern world history. Only hoaxsters or fools, among those in high places, have any view of that matter contrary to my own.

Following the June 2, 1987 appointment of Alan Greenspan as Chairman of the U.S. Federal Reserve System, Greenspan acted to “legalize” what had been, previously, an unlawful form of virtual “Monopoly play-money” version of alleged “securities” - - better identified as a soaring mass of “insecurities.” This was done in an action which has mushroomed into what is, effectively, the greatest monetarist fraud in all world history. The result of that today is the entire world is now menaced by the kind of breakdown-crisis of the world monetary-financial system comparable, on a global scale, by vastly worse than what struck Weimar Germany in the Autumn and Winter of 1923.

The worst phase of that presently global hyperinflation, had been launched by Greenspan during his initial term as Chairman. This bubble has since assumed the form of a threatened, rather immediate, general breakdown-crisis of the entire world economy, a turn which was made with the action by the U.S. House of Representative Barney Frank’s actions to destroy the U.S. economy, in opposition to my draft legislation known as a U.S. Homeowners and Bank Protection Act of 2007. The continued, desperately foolish such action by what as been clearly shown to have been the wretchedly incompetent Representative Frank and others, in this same direction, has resulted, today, in a hopeless state of bankruptcy of the present international financial system of the entire planet.

I will not say that Barney Frank did what he did of either innocence in either intent, or of knowledge, but, more likely, malice after his own liking. He was only a tool, and, ultimately, a nasty sort of fool. It was not so much what he, personally, did, as that for which he, the foolish child of perversity (not poetry), was used.

We must emphasize, that even when a particular nation is not bankrupt in itself, and there are a number of such cases, the world system itself, considered as a whole, is bankrupt: especially the Inter-Alpha group. If the world system collapses, every part of the world goes down in the same collapse for which it now teeters ominously where it attempts to stand.

The Remedy

The most relevant model of a remedy for this kind of menacing crisis today, is to found of the famous “Glass-Steagall Act of 1933.” This time, the policy expressed by that Act must be returned as a global reform. Without that specific, global reform, for which there is no feasible alternative, the entirety of the planet is already at the crumbling brink of global, probably generations-long, “new dark age” for all humanity.

On exactly what date that general collapse will occur, is not simply predictable in any mechanical fashion. “Predictions” are the follies of the sort committed by the always worse than impotent statisticians. The fact is, the world is presently in the grip of that collapse; without a Glass-Steagall type of more or less general global reform, the date for the breakdown is soon, perhaps as much as within a few months, even possibly weeks - - it could possible be as early as any tomorrow. In the meantime, the threat of a chain-reaction-style, global collapse, already exists; the threat is immediate, only date-certain remains to be determined by events yet to come, or to fail to come.

In the meantime, what can be exactly stated, is that only an early impeaching, or virtual impeaching of U.S. President Barack Obama, were likely to enable a selected group of nations to launch the beginning of the urgently needed reform in good time. His impeachment were the virtual descent of manna from Heaven!

Without joint action to that effect by no fewer than the four nations of the U.S.A., Russia, China, and India, no possible rescue of the entirety of the planet from an already onrushing, general breakdown-crisis of the entire planet. In other words, a “new dark age,” comparable to, but far wore than that of Europe’s medieval Fourteenth Century.

It must be plainly stated, that an emergency reform of that type would, and, in fact, must, without compromise, virtually wipe out the nominal, purely speculative claims associated with such financier complexes as the Inter-Alpha hyper-inflationary bubble. The time for the wipe-out of that Inter-Alpha has come, and now passed, over the course of the recent four decades. The time for the awesome, vengeful specter of President Franklin Roosevelt has returned. There is no other practical option but that, for humanity at large today.

To deal with this immediate crisis, we must first understand at least certain highlights of the way this present situation came about. First, I shall now state what must be done, and, then, I shall explain what this, and nothing contrary must be done, if the entire planet is not to he consumed by a generations-long “new dark age.”

The Reform's Intent

The intent of this emergency reform includes a commitment to rescue those banking and related institutions which can meet the Glass-Steagall standard, even if the relevant institutions remains under protection of bankruptcy law for an extended period of its reorganization. The points to be emphasized on that account, are the following.

The recovery of our otherwise doomed, planetary economy, now depends upon a fixed-exchange-rate system of long-term credit at rates below 2% per annum. The chief driver of the economic recovery and security of the nations of the planet, must come, presently, from emphasis on long-term investments in basic economic infrastructure in the categories of high-energy-flux density power systems, modern mass-transit systems, greatly expanded systems of enlarged capacities in water-management, emphasizing potable water, and expanded systems of general health-care and education in support of the development of populations designed in accord with very-high-energy-flux-density power-sources and modes of physical development of the economies of the world.

This requires the elimination of the present world monetary system, that by means of a method and precedent of President Franklin Roosevelt’s Glass-Steagall measures, measures to be applied on a global scale. Without the relatively immediate, and ruthless application of that specific remedy, the entire planetary civilization is already pre-doomed in short order.

What must be done is, simply said, the elimination from all accounts of creditor-claims which are not consistent with a President Franklin Roosevelt standard of practice for the sweeping enactment of a Glass-Steagall standard. There is no foreseeable hope for a continued survival of civilization on this planet, other than through that emergency measure. Those governments which have chosen to avoid such a Glass-Steagall precedent, have already doomed their nation to die for a generation or two to come.

The condition which such an application of a Glass-Steagall standard implies, is not well understood, yet, by most nations of the world; but, it is very clear to U.S. Constitutional law, and was usefully, if not fully understood by some in Germany in the launching of the post-World War II recovery, and, by some in France, under the reforms enacted by President Charles de Gaulle for the Fifth Republic.

The Global application of a Glass-Steagall reform now, means the immediate elimination of the present world monetarist system, and its immediate replacement by a “Hamiltonian” international, fixed-exchange-rate credit system based on long-term credit under a global, fixed-exchange-rate system of exchange of productive credit among the sovereign nation-states participating in this program of general physical-economic recovery and progress of the respective nations of the planet as a whole.

Therefore, the driver employed to halt the presently onrushing collapse of the physical economies and populations of the nations, per capita, must be led by use of such a fixed-exchange-rate credit-system, to implement the role of development of modern basic economic infrastructure as the origin of the market for the progressive development of agriculture and industry through the cooperative role of national governments and banking systems which meet the requirements for a Glass-Steagall standard.

The measures to be taken immediately, to this effect, are feasible and will be successful if there is the kind of aggressively pro-development orientation I have implied here.

Under such a reform, the world no longer as any need for gigantic schemes of the types associated with the Inter-Alpha organization. A prolonged period of deathly quiet in Wall Street and the City of London, will be no loss to present or future humanity. “Honest money” will be secure, under such a credit-system; other money is simply trash which silly people use to play the board-game called “Monopoly.”

What I have outlined, while immediately a summary, is, nonetheless, the only option for survival available for the United States of America, among others, during the duration of the present calendar years. The effort will succeed, provided we find the political leaders with the guts to launch and support the job to be done now.

The Science For Economy

In the process of making those crucial decisions which are needed for bringing the world back from the edge of a prolonged, planet-wide new dark age, we must identify the source of the guilt of nations for bringing this crisis upon us. The guilty truth of the matter is the belief in money as such.

I dealt with this matter during the discussion period of the most recent webcast, that on the subject of the Ides of March. I point to my reply to a question on the role of monetary policy in shaping the destiny of real economies.

In reply to that question, I pointed out the crucial role played by the world of Russia’s V. I, Vernadsky in defining the roles of the Lithosphere, Biosphere, and Noösphere, as these notions have been defined by the birth of modern physical chemistry, as defined by such as William Draper Harkins and Vernadsky since the onset of the Twentieth Century. Society’s existence depends, thus, largely, on the concentrations of those resources, such as the relatively richest iron deposits, which are therefore the most economical, and which, therefore, we tend to exhaust most rapidly.

It is by increasing the applied energy-flux-density of man’s productive activity, per capita, and per square kilometer of the Earth’s surface area, that we not only compensate for the lowering of the relative richness of resources, but increase the productive powers of labor of society, per capita and per square kilometer, that largely through modes which effectively increase the energy-flux density of the regions of human habitation as a whole. So, real economy depends on the upshifts in forms of power of low energy-flux-density, such as incident sunlight, to successively higher concentrations. Today, mankind’s survival as a culture depends upon rapidly expanding dependency on nuclear-fission and thermonuclear fusion as the priority of all sane nations.

We employ currency in the organization of production, but currency has no intrinsic value. Only physical values, especially as they are defined by today’s advances in available energy-flux densities of powering resources, which measure value of a currency. The value expressed in terms of a currency, is a social value which must be increased, per capita and per square kilometer, in units of energy-flux-density of effect.

Since the production of real wealth depends upon effective relations among sovereign nations defined according to this purpose, we have the following, interesting outcome.

We require a system of respectively sovereign nation-states: since productivity is dependent upon the development of the traditional language-cultures of a nation. Yet, we require a fixed-exchange-rate as a medium of economic cooperation among those sovereigns. We should speak, thus, of “the common aims of mankind.” This requires a credit-system, not a monetary system. The existence of monetary systems, rather than credit systems, is the mark of an imperialist system, rather than a system of sovereign nation-states.

Thus, the world requires liberation from that disease of the imperialism of the usurer, and his replacement by the common credit-system of a set of respective sovereigns.

To bring about that necessary condition of stability and progress, we must rid the planet of continued infection by the filthy disease of usury: a fixed-exchange-rate credit-system among respectively sovereign nations: what President Franklin Roosevelt, directly contrary to the imperialist John Maynard Keynes, had prescribed for a post-World War II international, fixed-exchange-rate credit-system.

To effect that needed result, we must establish what can be best identified today, as a Franklin Roosevelt notion of a global, fixed-exchange-rate, international credit system. To bring that about, we must cleanse the planet of those forms of use of currency which do not conform to the modern of a fixed-exchange-rate credit system. To do this, it were sufficient to wipe all financial claims which do not conform to such a reform, from the books of account, as President Franklin Roosevelt had intended.

Usury is crime. That crime must be removed from the system. Otherwise, the planet is doomed, rather immediately, to a prolonged new dark age.

Other Reports

Related Media