Peace and Security in a Disintegrating Word

 Wednesday, October 3, 2001



On Tuesday evening, Lyndon LaRouche delivered a brilliant address before a large audience of members of the Society of Economic Engineers, EIR subscribers and others in Lima, Peru, via closed circuit television. LaRouche spoke for 35 minutes and then answered questions from the audience. Although a transcript of the entire dialogue will be made available over the next days, the import of LaRouche's opening remarks warrants summary here.


LaRouche started out by stating that we are in the final breakdown phase of the present world financial and monetary system, a breakdown that will reach the point of disintegration by the end of the year, whether or not the system limps along a bit longer. Under the present policies, the system cannot be preserved. Thus, we are in an extraordinarily dangerous period, as typified by the events of Sept. 11, which LaRouche characterized as a largely-internal attack, which may have drawn upon foreign assets. The operation has not yet been identified, and they are ready, therefore, to strike again. Such developments are not unusual for a period of such economic crisis.


LaRouche developed the parallel between the current crisis and the crisis centered in Germany in 1933, when an effort was underway inside Germany to stop Hitler, via the Von Schleicher government. Anglo-American forces, led by Montagu Norman, the Harriman interests (including the grandfather of the present President George W. Bush), and Hjalmar Schacht, overthrew Von Schleicher and installed Hitler in power. But Hitler's power was not consolidated until the Reichstag fire and the imposition of dictatorial rule. Less than a month later, Schacht was installed as head of the Reichsbank, and war preparations began.


We are in the same kind of period now, LaRouche emphasized, with coups, terrorism, chaos. It is a time of desperate men, clinging to power, blind to reality, committed to holding on to their power at all costs. Thus, we are in a struggle between these people and the interests of sovereign nations and peoples.


LaRouche said that two things must be done, urgently. First, international political forces must be rallied to end the danger. Next, there must be a reform of the international financial and monetary system. A bankruptcy reorganization of the world financial system is needed, similar to a bankruptcy reorganization of a firm that performs an essential function for a nation. National governments cannot be allowed to collapse. You cannot foreclose on a nation, lest you commit mass murder. All nations must survive together. Most of the debt will never be paid. Most of the debt is illegitimate anyway. The hundreds of trillions of dollars in global debt cannot be sustained by a total world product of approximately $42 trillion.


Banks must be kept open, governments must continue to function, pensions must continue to be paid. The 1933 FDR prescedent is known, as is the 1944 success of the Bretton Woods conference.


What is needed, once such a bankruptcy reorganization has been carried out, is a growth program. Large amounts of public credit must be generated to increase employment. Infrastructure projects must be launched on a large scale, along with the revival of industry. Fiscal austerity is murder! Basic infrastructure is needed: water, transportation, sanitation, public health. The Army Corps of Engineers model is appropriate. Joint projects of the Corps, with civilian entities. Create useful jobs, and allow communities to prosper again.


LaRouche continued: Two other things are needed, as well. The Eurasian Landbridge proposal of LaRouche is in the process of being adopted as a policy by Russia, China and other nations, for large-scale development projects, from the Atlantic to the Pacific. This is the way to access the vast resources of Central Asia. Japan and Western Europe can provide high-tech capital goods, and these areas of Eurasia, including China, represent vital markets for these goods. The Americas must participate in this Eurasian Landbridge project. It will extend into the Western Hemisphere, via tunnel and bridge connections from Siberia into Alaska, which will then run down the entire hemisphere all the way to Tierra del Fuego. South America lacks infrastructure, but has vast potential resources. Patagonia is exemplary.


The second thing is a science driver program. New technologies must be brought on line, employing higher density forms of energy. Universities once again must produce cadre capable of advancing these scientific and technological discoveries, creating new kinds of national economies.


LaRouche briefly developed the idea that man is unique, the only creature that can discover and transmit to others, universal physical principles.


What is required, LaRouche emphasized, is the political will to force the bankruptcy reorganization, and launch a recovery via massive public credits. Expand productive employment, in pursuit of the general welfare, then pioneer transcontinental infrastructure projects that unify the entire human race. Elevate nation-states to the status of true sovereign states. Realize the ideas of the Great 15th Century Renaissance.


We face the greatest danger in all known history. We face a new dark age that will engulf all countries. We face the danger of great wars, convulsions, chaos. This crisis may be what is needed to force our fellow citizens to become adults. You cannot behave like children any longer. What will we leave for those who come after us, a dark age? Or will we be remembered as giants in our time, who did something to make our ancestors smile with pride, along with those who shall come after us?


The crisis gives us an incentive to grow up, and imagine the solutions, so that, when we reach the moment that we are to die, we can say, ``We lived and it was good!''


LaRouche received an overwhelming ovation when he completed these remarks.


The Federal Reserve's FOMC announced another 0.50% rate cut for the overnight rates and the discount window, bringing those rates to their lowest point since 1962. Considering real inflation, these new rates--2.5% and 2% respectively--represent a zero interest rate. This is precisely the hyperinflationary policy Lyn warned about in Lima. The Fed issued a totally psychotic statement, announcing the decision, claiming the fundamentals are sound, but also advertising that economic weaknesses that existed prior to Sept. 11, now exacerbated by the events of Sept. 11 may necessitate further rate cuts.


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The platform for the 1648 Peace of Westphalia was the principle of universal love.