to Lyndon LaRouche's "New Bretton Woods" policy proposal.
'Economic System Is Near Death'
In a commemorative meeting to honor Martin LutherKing, Jr.
sponsored in Washington, D.C., Jan. 16, 1996 by the EIR News Service,
Democratic presidential primary candidate Lyndon H. LaRouche, Jr. called
on Americans, to lead the world out of a doomed and dying global financial
system. His speech concentrated on three topics: 1) the insanity of the
so-called budget crisis--what he called the "attempt to balance the
budget by unbalanced minds"; 2) the nature of the crisis--"why
the system is dying, what the system is sick of, and not just Newt
Gingrich!"; and 3) the nature of an approach to the solution.
WASHINGTON, Jan. 16, 1996
(EIRNS)--Presidential candidate Lyndon LaRouche delivered a stirring call to Americans yesterday, to lead
the world out of a doomed and dying global financial system; he was
addressing 250 supporters here at a Martin Luther King birthday
commemoration sponsored by EIR News Service, of which he is founder and
contributing editor. The event, which included two hours of dialogue with
the audience, was videotaped and will form the basis of an upcoming
half-hour nationwide television broadcast by the candidate.
Dr. King, LaRouche said, was "one of the few authentic leaders of
the United States in the 20th century." He "presented
conceptions to lift the civil rights movement to a higher conceptual
level, to make the Constitution real for all people of the United States
and the world." Under King's vision, the U.S. had "a mission not
of victims but of leadership." This, LaRouche said, is what he and
those who work with him today must again achieve.
"We've come to a time," LaRouche said, "in which the
world civilization is about to disintegrate," and is very near its
death. "Nothing can prevent [its death] or prolong its life. The only
question is: Will nations go to disaster with it?" In order to
prevent that, LaRouche said, humanity requires, first, a clear conception
of what the problem is, and second, a clear conception of the solution.
The candidate presented, conceptually, "as Martin would have
wished," three crucial topics, to allow the audience to grasp the
problem and the solution: 1) the insanity of the so-called budget
crisis--what he called the "attempt to balance the budget by
unbalanced minds"; 2) the nature of the crisis--"why the system
is dying, what the system is sick of, and not just Newt Gingrich!";
and 3) the nature of an approach to the solution.
The ensuing presentation was crafted around a series of graphs,
projected overhead, which this news service has recently published (see
the Jan. 1 issue of Executive Intelligence Review). The graphs
document the real nature of the terminal economic and financial crisis
confronting the U.S. and the world, and obliterate the idea, recently
popularized by presidential candidate Phil Gramm, that the nation should
"balance the federal budget the way you balance your family
But, LaRouche noted, because what he has to say is "heavy,"
those who oppose him use his fraudulent 1988-89 conviction and subsequent
imprisonment as a pretext to dismiss his ideas. Therefore, he introduced
the economic discussion with a passionate account of the events which led
up to his and his associates' frame-up conviction and imprisonment, and an
urgent call to clean out the corrupt elements surrounding Henry Kissinger,
George Bush, and the Department of Justice, who perpetrated the injustice.
In the discussion period, he took up the theme again, stating that,
because he is a "potential folk hero," his exoneration
"could blow up the country. It would mean an end of Henry Kissinger's
influence." Kissinger and others tried to put him and his association
out of business, LaRouche said, but "We're not out of business; we're
Cuts Increase the Deficit
Every attempt to cut the federal budget since the Carter administration,
because it has decimated the tax revenue base, has led to increasing
deficits, LaRouche showed, in the dramatic first series of graphs. The
federal deficit, which had been negligible before Carter, began to zoom
upward with the implementation of Federal Reserve chairman Paul Volcker's
high-interest-rate regime, as businesses couldn't afford to stay open. The
1981 Kemp-Roth budget-balancing measure doubled the deficit, and the 1985
Gramm-Rudman bill, co-sponsored by Presidential candidate Phil Gramm,
doubled it again. It continued to grow under the "President in charge
of vice," George Bush, and has only begun to decline under Clinton,
LaRouche showed. "Now they want to get rid of Clinton to unbalance
LaRouche explained, using the next series of graphs, that the purpose
of government is to foster an increase in the wealth of the population,
and that government expenditures, particularly in technology-dense areas
like defense and aerospace, increase revenue far above their cost. But the
Republican "Red Guards" in Congress, he said, are determined to
shut down such spending in order to deliver tax-cut benefits to "idle
parasites" and speculators.
The candidate debunked the myth that the national debt is caused by the
federal deficit. In fact, he explained, the reverse is true: The deficit
is caused by the increase in debt. In the next series of graphs, he
demonstrated how, since 1966, the economy has moved out of the production
of tangible goods into the realm of "absolute speculation," with
the result that we are now in a "hyperbolic situation" which can
only lead to collapse.
LaRouche completed his presentation with a sweeping view of the last
550 years of history, showing how the nation-state founded in France by
Louis XI brought society out of barbarism. "Prior to this, every
culture was a moral failure," LaRouche said, with 95% of the
population subject to slavery, serfdom or worse. Under Louis XI, an
intelligentsia was created--what he called "the Martin Luther Kings
of the population"--which became "the force on which Louis XI
relied to subordinate the aristocracy. Those representatives of the
people, in the name of the people, then constituted a nation." That
new nation-state, and the positive role of the government, fostered the
growth of education, as a result of which the population began to grow
exponentially. And "the world as a whole benefited from European
This is the tradition that we in the U.S. represent, LaRouche said,
concluding with a broad challenge to the audience. After France was
destroyed, "It fell to the United States, under the Constitution, and
particularly the Preamble, which is the noblest act of law in history, to
be the bearers of hope for the planet.... But we have betrayed our great
calling as a nation and we have brought ourselves into the condition,
under British influence, where we are about to be destroyed." Now, he
said, we must abandon the errors we have made and realize that our destiny
is to make the blessings of the Constitution available to every part of
"I hope I have done, in my way, what Martin Luther King would have
done in his," said LaRouche, concluding his address.