In reference to Lyndon LaRouche's
"New Bretton Woods"
The Fall of the Bretton Woods
Rolf A. F. Witzsche
The original Bretton Woods World-Monetary System was an created on an idea by U.S. President Franklin Delanor Roosevelt, who had envisioned a post-war world devoted to global economic development as a means for ending wars, eradicating poverty, backwardness, and colonial exploitation. To achieve this goal a stable global monetary system was required that provided for relatively fixed exchange rates between the national currencies of the world. Such a system was established by international agreement at a conference held in 1944 at the Bretton Woods hotel of the Mount Washington area in New Hampshire, USA., hence its name, the Bretton Woods system.
This system was collapsed on August 16, 1971 when President Richard Nixon decoupled the U.S. dollar from gold and made it a free floating currency, the value of which could be determined by the whims of the international currency speculators. Thus, the dollar and nearly all of the currencies of the world were converted to gambling chips in the greatest gambling casino ever created with a daily turnover volume equivalent to over four trillion dollars U.S.. Huge profits are drawn from the nation's currencies, by this game, which together with other factors has drained the life-blood out of the physical economies of the world, forcing a downward spiral of economic collapse. At the same time, the value of financial aggregates has been leveraged up at an ever increasing rate of growth which represents a bubble of wealth that has no longer any physical equivalent. Today's bubble is estimated to represent a $400 trillion dollar claim on a physical economy that can no longer sustain itself (is rapidly collapsing) much less produce profits that could be used to settle this claim. The size of the bubble is equal to app.. ten years of the Gross Domestic Product of the entire world combined. In other words, the bubble could be liquidated if not a single person in the world would eat for ten years or otherwise enjoy the fruits of human labor.
In real terms, the free floating, speculative financial system is bankrupt. Its aggregate values that fill its ledgers are bubbles of illusions. Lyndon LaRouche's proposal is, to put the entire bankrupt system through a bankruptcy reorganization, and replace it with a type of system that worked, the kind of system that gave the world its legendary rapidly developing prosperity that lasted till the mid 1950s. The Bretton Woods system was a part of this world, even a very essential component of it. Lyndon LaRouche's proposal for putting the bankrupt world-financial system through a bankruptcy reorganization and to replace it, involves re-establishing the Bretton Woods principles, including some form of fixed exchange rates between the national currencies. It also involves shutting down the kind of speculative monetarism that killed the Bretton Woods system in the first place. In interesting proposal for achieving stable equitable trade until the proper systems can be established is laid out in LaRouche's article, Trade Without Currencies.
The bottom line is, the present system is bankrupt and must be replaced. This was already understood to some small degree by U.S. President Clinton and his treasury secretary, but there existed no broad based political constituency to carry out such a reform.
The current world is shaped by two major forces that act in opposition to LaRouche's proposal. One of these forms of opposition is a general public denial that a problem even exists. This denial is nurtured by a constant stream of lies to the public, proclaiming that the "basics are sound." The other form of opposition is the financial oligarchy's determination to maintain the system that support's its welfare at all cost. This creates a very dangerous situation during the terminal phase of the collapse of the system, that has already begun. In order to prevent the public from realizing that the collapse of the system is the result of its systemic defect, and that brutal recovery measures can be forced, a high probability exists that major wars will be launched that are designed to overshadow the collapse of the financial system. This, too, has already begun. The September 11 event has been identified by Lyndon LaRouche as a provocation for such a war, and the subsequent anthrax terrorism events are identifies as stepping stones for a coup d'tate against the U.S. government itself for the purpose of launching the required wars. This type of escalation to ever greater types of terrible provocations will likely continue until the oligarchy's goal has been secured.
The only solution humanity has to rescue itself from the unfolding madness, is to implement the kind of reforms that are necessary to rebuild the financial system onto a secure footing without loosing civilization in the process, which the ongoing collapse virtually assures. Human has no other options for achieving that goal, but by implementing the policies that Lyndon LaRouche has proposed and urged for several years already. These are not personal policies, but policies founded on discovered and proven fundamental principles that one cannot mock with arrogant will or ignore without consequences.
What is at stake in this fight for the "New Bretton Woods" system is immensely huge. An example of this scale is the destruction of the World Trade Center in New York that could have been prevented by implementing the financial restructuring that Lyndon LaRouche has urged for years before the situation became critical. How much destruction lies still ahead until there is a willingness to implement the "New Bretton Woods" process so that the demanded big wars will not be fought, cannot be determined. What is at stake here, especially if one factors in nuclear weapons and other weapons of mass destruction, may be the survival of human civilization as a whole.
This briefly sums up what Lyndon LaRouche's "New Bretton Woods" proposal is all about. There exist no great issue, or anything more urgent, than the implementation of the proposed processes. Anything apart from this issue is rendered trivial by the horrendous weight of the unfolding crisis.
LaRouche's U.S. presidential campaign, "LaRouche 2004," must be seen in this context. His efforts to create an international and national constituency on this issue and the presidential campaign are interlocked, since his "New Bretton Woods" campaign is an integral element for assuring that there will be an election process in the year 2004. This occurrence is be no means guaranteed in the face of our rapidly disintegrating world.
Civilization is not something that can be taken for granted. It needs to be nurtured and be protected to remain alive. Dooms-day cults predicted the end of civilization based on prophesies, and psychics predict nuclear explosions according to whatever they see. Ultimately it must be said that the universe is too ordered to include such cataclysmic upsets by its own principles. Our actions and inactions, in response to its unifying and elevating principle, will determine our future.
LaRouche's policy proposal for the construction of the Eurasian Land Bridge and its extension into Africa and the American continents is a vital element for enriching humanity, its culture, its unity, and its security, with peace creating consequences that extend far beyond our immediate future. LaRouche's policy for creating a dialog of cultures to counteract the "clash of civilization" that is currently being promoted, are a part of the same policy platform that is designed to assure peace, security, and a richer civilization. LaRouche's "New Bretton Woods" policy proposal must be seen in this context, as an indispensable part of a necessary process for creating a new, human, renaissance.
The following presentations have been selected for the purpose of exploring Lyndon LaRouche's campaign for a new Bretton Woods system.
The articles and speeches presented below were published in the Executive Intelligence Review magazine, and are a part of a large collection of works and speeches by Lyndon H. LaRouche, Jr. and other contributors to the EIR magazine. They are presented in a large type format that is more easily readable with small screen computers and adaptable to projection systems for group meetings.
The articles and speeches presented below have been selected as a historical study, in order to provide an image of the historic developments that led up to Mr. LaRouche's announcement of his "New Bretton Woods" policy proposal that was formally presented at a March 18, 1998 conference in Washington D.C., and its continuing promotion as an integral element of the ongoing "LaRouche 2004" presidential campaign.
This page is being presented as a patriotic contribution in support of Mr. LaRouche's presidential campaign.
July 28, 1995
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The platform for the 1648 Peace of Westphalia was the principle of universal love.