Executive Intelligence Review, Volume 46, Number 39, October 4, 2019

- Cover

- Masthead

- EDITORIAL Some Plain Facts Concerning the Coup Against President Trump by Barbara Boyd

- PDF edition Table of Contents — Volume 46, Number 39, October 4, 2019

- I. The Green Face of Treason

- Forget Greta: The Central Bankers Are the Real Eco-Fascists by Harley Schlanger and Paul Gallagher

- ZEPP-LAROUCHE WEBCAST This is an Unbelievable Historic Moment: We Must Change the Agenda Completely!

- ‘Climate Change’ Hoax Deflated at the UN and in Ibero-American Webcast by Dennis Small

- LETTER TO UN SECRETARY GENERAL Prominent Scientists and Professionals to UN: ‘There Is No Climate Emergency’

- II. Lyndon LaRouche’s Legacy for Today

- How to Regulate Credit-Expansion by Lyndon H. LaRouche, Jr. (1980)

Jail the Coup-Plotters for Treason!

Founder: Lyndon H. LaRouche, Jr. (1922–2019)

Editor-in-Chief: Helga Zepp-LaRouche

Co-Editors: Marcia Merry Baker, Paul Gallagher, Robert Ingraham, Tony Papert

Managing Editor: Stephanie Ezrol

Editorial Staff: David Cherry, Charles Notley

Technology: Marsha Freeman

Transcriptions: Katherine Notley

Ebooks: Richard Burden

Graphics: Alan Yue

Photos: Stuart Lewis

Circulation Manager: Stanley Ezrol

INTELLIGENCE DIRECTORS

Asia: Michael Billington

Economics: Marcia Merry Baker, Paul Gallagher

History: Anton Chaitkin

Ibero-America: Dennis Small

United States: Debra Freeman

INTERNATIONAL BUREAUS

Berlin: Rainer Apel

Copenhagen: Tom Gillesberg

Lima: Sara Madueño

Melbourne: Robert Barwick

Mexico City: Gerardo Castilleja Chávez

New Delhi: Ramtanu Maitra

Paris: Christine Bierre

Stockholm: Ulf Sandmark

United Nations, N.Y.C.: Richard Black, Leni Rubinstein

Washington, D.C.: William Jones

Wiesbaden: Göran Haglund

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EDITORIAL

Some Plain Facts Concerning the

Coup Against President Trump

by Barbara Boyd

The following are edited notes from Barbara Boyd’s September 26, 2019 presentation for the LaRouche PAC Fireside Chat. To watch the program, click here.

Sept. 26—U.S. Representative Devin Nunes opened today’s House Intelligence Committee circus—where Acting Director of National Intelligence Joseph Maguire testified—by saying, “Welcome to today’s ‘information warfare’ operation against the President.” That was a very accurate characterization, because that is what we are experiencing. The tools of military full-spectrum information warfare have been turned against the population of the United States in the continued effort to overturn the result of the 2016 election. I will talk a bit more about this information warfare later. But, as a result of this, the U.S. Congress is now in the process of impeaching the President. It’s our job to make this operation backfire and to recruit Americans to the perspective of Lyndon LaRouche, which is the route out of this mess.

Tonight, I will paint in broad strokes what is now emerging, and then we can discuss what we need to do about it, because it is, I assert, the responsibility of everyone on this call to ensure that this Republic survives. Think about the alternatives to Donald Trump and where they stand. Think about the sedition that we have experienced over the last three years. Now is the time when we can see Lyndon LaRouche, who passed away earlier this year, reaching down from where he resides to help us help this President, by getting significant individuals in the United States to think strategically, as he did. It is only that kind of thinking and the political programs which flow from it, not reacting to the daily news cycle, which will heal the divisive wounds now being inflicted on the American people.

What is upon us is a declaration by the House of Representatives, effectively controlled by the Democratic Party majority, that nothing in this nation will get done until the election in 2020, that is, unless the Democrats are forced by the population to back off. That includes NASA’s Artemis program—anything big or essential to the country. It is possibly the most seditious moment we have ever encountered in our storied history.

So, the facts, and their background:

Fact 1. The financial system, centered in the City of London and, to a lesser extent in Wall Street, is fatally flawed, as Lyndon LaRouche demonstrated repeatedly in his triple curve function. To maintain their power, the international oligarchy that benefits from this system, has decided to promulgate an outright myth, of a global warming crisis, to induce populations, like lemmings, to kill themselves by denying themselves the means to reproduce. This is not new. Their plans for an alternative to the U.S. dollar in the form of a worldwide digital currency, controlled in its issuance by the world’s central banks, are the same as the various Special Drawing Rights (SDR) basket-of-currency proposals made by the IMF for a very long time.

CC BY 2.0

Above: The trading room of the New York Stock Exchange. Below: The Davis-Besse Nuclear Power Plant, near Oak Harbor, Ohio. Lyndon LaRouche’s proposed Two-Tiered Credit System would dry up purely speculative use of money, and flow credit into productive wealth generation.

First Nuclear Operating Co.

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Trump: No Central Bankers’ Dictatorship

When LaRouche proposed an International Development Bank in answer to the fatal 1971 takedown of the Bretton Woods system, the City of London answered him directly with their SDR program. They told LaRouche then, in essence: “We have ample means, in addition, to corrupt Third World leaders, to prevent the massive physical development of the Earth and exploration of space you propose, even though we know that your proposals will work.” We are seeing now, internationally, simply new iterations of that fundamental fight.

LaRouche showed us how to counter them. If they seek to attack the dollar, the President needs to raise interest rates here, as Lyndon LaRouche outlined in his Two-Tier Credit System. We also need such a two-tiered system mechanism here to ensure that low interest, long-term credit is available for productive physical investment, as in infrastructure and space, and that speculative finance is dried out by making extensions of credit to it hugely expensive. That is what is implied by Glass-Steagall and the National Bank or similar mechanism.

When they talk about green and sustainable development, hit them back with Lyn’s crash program development of fusion power and space exploration, adopt the policies favoring advanced hard goods production and high technology and scientific training. Whatever brainwashing the banks have been able to do in the developing sector, there is no true market for this so-called sustainable development in the United States. For the most part, the insane Greta Thunberg is seen for what she is, an actress in a bad movie in which the Catholic priest, who was obtained to do the exorcism, has seemingly fled the scene. The public laughs at her and searches for yet another exorcist, while Obama’s Secretary of State John Kerry and similar oafs pretend to take her seriously.

White House/Shealah Craighead

President Trump addressing the UN General Assembly in New York City on September 24, 2019.

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Fact 2. Donald Trump’s September 24 speech at the UN launched a thorough attack on globalization and in favor of nation states and national sovereignty. Globalization is the means for implementing the intended new, criminal, central banker’s dictatorship. The President highlighted the essential role of the nation state in any true advance of human civilization. The President’s speech occurred in this strategic context that I have just outlined. Yes, he said some stupid things in addition, but this was his major theme and has been his major theme. He also accurately characterized Ukraine as the buffer state between Russia and the UK, which is both accurate and somewhat hilarious.

Left: CC/Project for Media & National Security; right: kremlin.ru

Left: Former Director of National Intelligence Dan Coats; right: former National Security Advisor John Bolton.

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Fact 3. Over the course of the summer, the President fired the Director of National Intelligence, Dan Coats, and his hyperactive assistant Sue Gordon, along with National Security Advisor John Bolton. The alarm about this was heralded by Politico on September 18-19, with stories saying the President was freeing himself to run his own foreign policy, that he was an Administration of One when it came to foreign affairs. Fundamentally, the President does differ with official Washington on war and peace. They have tried to get him into a war, endlessly, the last try being a war with Iran, and he has resisted.

Will Congress Run Our Foreign Policy?

Fact 4. Now, with it becoming clear to the population that Joe Biden’s brain is made of Swiss cheese and that after Biden, the field of Democrats campaigning for their party’s nomination for President are not going to cut it, the present Ukraine-centered impeachment scam was cooked up. Remember, the oligarchy’s spokesman, the British House of Lords, has already instructed their assets in the United States that under no circumstances can Donald Trump have a second term.

The story behind the scam involves Ukraine, but it more importantly involves a lot of the spies who were at the White House under John Bolton’s tutelage at the National Security Council. Both issues have huge boomerang potentials, as has been pointed out by many, but it’s up to us to make sure that the boomerang results in truly draining the swamp. Pulling the Ukraine string can and will result in felling all the trees in this proverbial forest but only if we focus and do our job. Specifically, Trump’s reference to Ukraine having access to the CrowdStrike computer server, or a copy of it, is what caused the intelligence community’s collective head to explode.

Today’s New York Times instructs us that the whistleblower pointing the finger at President Trump in this case is, indeed, a CIA agent and apparently active concerning Ukraine. He is, in other words, a witting participant in the ongoing attempted coup and has been for a long time. Former Technical Director at the NSA, Bill Binney, said tonight the whistleblower is a hearsay blower who is not a true whistleblower and is perverting the protections provided under the whistleblower law.

Fact 5. Before going to the specifics of what is before us, I want to exploit some ironies and add some reflections. President Trump, in his July 24 discussion with President Zelensky of Ukraine, spoke about the ridiculous graft of Joe Biden’s son in Ukraine. He said that what he had heard about the firing of the prosecutor on that case, would be interesting for the Ukrainians to explore. He also asked for help on the vast Ukrainian end of the criminal state actions, led by the UK, against his presidential campaign. In the conversation at issue, with the President of Ukraine, President Trump is almost quoting our dossier directly: The President says that the coup against him started with Ukraine. Now, I ask you, who else is saying this?

The House is alleging that the President is using his office for his own political benefit. Yet, the same House has been engaged, for three years, on the taxpayers’ dime, trying to reverse the results of the 2016 elections through knowingly bogus investigations of the President. The same House, in the name of the Constitution, says it is entitled to transcripts of the President’s conversations with foreign leaders, conversations which are privileged under Article II of the Constitution. What foreign leader is going to speak with Trump if everything said is going to be leaked?

Gage Skidmore

President Trump’s personal attorney, Rudy Giuliani.

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Full-Spectrum Information Warfare

Fact 6. The case at hand. Rudy Giuliani, the President’s lawyer, by his account, was approached by a very prominent investigator and was told details of the Ukrainian involvement in the coup against Trump. Again, we have covered this extensively in our dossiers. It involves the Chalupas: Alexandra, who worked for Hillary Clinton and the Democratic National Committee (DNC), Irene, a long time operative of the State Department’s propaganda bureaus, and Andrea, Alexandra’s sister, who works primarily on digital operations for the most vile anti-Russian and extremist portions of the Ukrainian diaspora. The two sisters worked with the U.S. Ambassador to Ukraine and the Ukrainian embassy to develop the smears of Paul Manafort which led to the opening of his criminal case, as part of the operation to get Trump.

Kristina Wong

Alexandra Chalupa, Ukrainian-American Democratic Party operative.

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That case, originally, involved a forged document, called the black ledger, allegedly showing cash payments received by Manafort from the deposed Yanukovych government. Nellie Ohr, in developing her profile for Russiagate, working for Fusion GPS, relied heavily on Ukrainian intelligence sources. Equally enticing, when the roll call for the people involved in the illegal foreign attack on Trump’s presidential campaign is made, you find a complete overlap with the main actors in the 2014 Ukraine regime change operation: Christopher Steele, Sir Richard Dearlove, Stefan Halper, very prominently George Soros, Dmitri Alperovitch, Victoria Nuland, Jon Winer, Andrew McCabe, James Comey, John McCain, David Kramer, Fusion GPS, Nellie Ohr, various London-based former Russian oligarchs, Bill Browder—-the whole crew—and the list could go on.

Now, who has previously identified this overlap? The LaRouche movement and only the LaRouche movement. We said it when we saw the Women’s March in January 2017 and wrote an EIR pamphlet about it; we said it way back in May 2017, when we wrote the longer piece called “The Insurrection Against the President, Or, Who Really is George Soros, Anyway?”

On top of that, there is a lot of information out there pointing to a Ukrainian role in the coverup of what actually happened in the alleged hack of the DNC server through a hacking group called Shaltai Boltai, or Humpty Dumpty, which played a significant role in the coup. Again, President Trump seems to be saying, in the call with the Ukrainian President that is at the heart of this uproar, that the actual DNC server content, the thing which the DNC told the FBI it could not have, was somehow copied to a Ukrainian oligarch. In the conversation, Volodymyr Zelensky, the new President of Ukraine, seems to know exactly what President Trump is talking about.

This is what Giuliani says he and the President are investigating. You can add to that, the reference to “full-spectrum information warfare” made by Rep. Nunes this morning. Ukraine was the first battleground in which “whole of country” approach to information warfare was employed: that is, denying its own citizens any information which does not fit narratives geared to profiles they will react to, and pounding them with those narratives over and over again in order, in the words of these brainwashers, “to control the psyche of the target.” As we have covered previously, National Defense Authorization Acts signed by President Obama resulted in the former ban on such propaganda activities against the U.S. population being lifted. That Ukrainian warfare method has now been turned against the American people because they elected Donald Trump.

CC/acaben

Hunter Biden

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The Impeachment:

Is Snow Black?

So, when you pull the Ukraine thread, you are endangering much of the crown jewels of the present Anglo-American intelligence community. That is why House Speaker Nancy Pelosi wrapped herself in the flag and said that she is the official representative of the intelligence community in the Congress, when she announced her apparently sudden decision to support impeachment. That is why she said, so directly, that the reason for impeachment was that this President thinks he can conduct his own foreign policy under Article II of the Constitution. Of course, Article II says the President conducts Foreign Policy with limited interventions by the Congress, something Pelosi and her friends have sought persistently to change.

Rudy Giuliani says that in the course of this investigation of Ukraine, he learned about Hunter Biden’s graft while Hunter’s father Joe Biden served as the Obama Administration’s point man on—guess what—the Ukraine regime-change operation and its aftermath. Giuliani has also portrayed this knowledge as messing up what he truly wants to investigate: the Ukrainian role in the coup against Trump.

As the result of Giuliani’s very public statements about his efforts to peel this onion, Sen. Chris Murphy told President Zelensky not to cooperate with Giuliani, lest aid to Ukraine cease. According to the whistleblower’s complaint, this threat was apparently echoed by members of the State Department. Previously, three Democratic Senators had threatened the Ukrainian government for alleged failures to cooperate with Robert Mueller’s witch hunt against the President. And we want to claim that an American President cannot explore this issue? That seems to be what is actually being said.

Fact 7. So, we had a President temporarily free to conduct his own foreign policy and we have a DOJ Inspector General’s report, about to drop, about the illegal surveillance conducted against the Presidential campaign of Donald Trump based on the bogus dossier of a British agent, Christopher Steele.

But as far as the actual enemies of the United States are concerned, it is imperative that Attorney General William Barr, Inspector General Michael Horowitz, and, just as significantly, U.S. Attorney John Durham be drowned out ahead of the release of Horowitz’s report. It also is imperative that Durham be exposed to massive political heat in order to discredit Giuliani’s investigation. According to the DOJ, Durham has spoken with four former Ukrainian officials about what Giuliani found and is evaluating the information. In short, this impeachment push is a huge operation to convince the public that snow is black, ahead of what is about to be revealed about massive operations in 2016-2017 to conduct a coup against the incoming president of the United States.

Organize Against this Insurrection!

Fact 8. John Solomon, who has been reporting all of this, said the following on Sean Hannity’s Fox News program on Tuesday:

Here’s the most important thing: Joe Biden has staked out a very specific story now and with impeachment proceedings, that story is fair game to investigate. He says when he fired the Ukraine general prosecutor. . . . He did so solely because he believed that prosecutor was corrupt and not because that prosecutor was investigating his son’s company and making plans to interview Hunter Biden at the very moment he was fired. That’s his story, that has to hold up.

Solomon says that he has over 450 pages of documents that he is beginning to release, which show this story is a lie. The Hunter Biden case was open when Joe Biden got the prosecutor fired and official documents tell a very different story than the one put out by Joe Biden.

C-SPAN

Former Deputy Attorney General Sally Yates.

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Fact 9. Michael T. Atkinson, Inspector General for the Office of the Director of National Intelligence (ODNI), who is handling the CIA whistleblower complaint against the President, previously worked for “coup central” at the Justice Department, National Security Division. This is where the 2016-2017 coup operations against the Trump Campaign were launched, during the time he worked there. This entire division of the DOJ was removed from the jurisdiction of DOJ Inspector General Horowitz by former Deputy Attorney General Sally Yates. Yet, it is at the center of the Foreign Intelligence Surveillance Act (FISA) abuse, which Inspector General Horowitz is now investigating.

Fact 10. The “whistleblower” is a client of lawyers associated with Compass Inc., which put out widespread ads on billboards and in leaflets in Washington, D.C., that they would represent intelligence community leakers (whistleblowers) against Trump for purposes of impeachment and would financially support them while doing so. As Bill Binney noted, the complaint is almost entirely hearsay. It is composed of secondhand gossip and news clips, strung together by lawyers. Inspector General Atkinson is forced to admit that there is some evidence that the man identified by the New York Times as a CIA officer, is politically biased.

So, what do we do about this? Members of Congress, over the next two weeks, will return to their districts. I propose that we use those two weeks to organize the population against the insurrection which the House of Representatives is presently attempting. I propose that this attack is so obviously warranted that we will get a huge response. But, that response also has to be informed by LaRouche’s Four Laws given that the international system is about to blow. Whether the United States has a President Trump—clearly disposed to humanity’s survival—is, right now, a life and death issue. We can, successfully, turn the flank here. I also propose a rapid growth of LaRouche’s Committees of Correspondence over the next two weeks as the means to do so.

EIR Contents

www.larouchepub.com — Volume 46, Number 39, October 4, 2019

Cover This Week

Gage Skidmore

Rudy Giuliani, former Mayor of New York City, former Associate Attorney General, and now President Trump’s personal lawyer.

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JAIL THE COUP-PLOTTERS

FOR TREASON!

2 EDITORIAL

Some Plain Facts Concerning the Coup Against President Trump

by Barbara Boyd

I. THE GREEN FACE OF TREASON

9 Forget Greta: The Central Bankers Are the Real Eco-Fascists

by Harley Schlanger and Paul Gallagher

13 ZEPP-LAROUCHE WEBCAST

This is an Unbelievable Historic Moment:

We Must Change the Agenda Completely!

20 ‘Climate Change’ Hoax Deflated at the UN and in Ibero-American Webcast

by Dennis Small

23 LETTER TO UN SECRETARY GENERAL

Prominent Scientists and Professionals to UN: ‘There Is No Climate Emergency’

II. LYNDON LAROUCHE’S LEGACY FOR TODAY

25 How to Regulate Credit-Expansion

by Lyndon H. LaRouche, Jr.

October 8, 1980

The Jan. 27, 1989 Jailing of Lyndon LaRouche

Defined an Era, Which Now Must End

Watch The LaRouche Case video

Watch the LaRouche Memorial video

Sign the Petition to Exonerate LaRouche

at lpac.co/exonerate

I. The Green Face of Treason

Forget Greta: The Central Bankers Are the Real Eco-Fascists

by Harley Schlanger and Paul Gallagher

Sept. 27—While most eyes watching events unfold at the UN Climate Action Summit were focused on the abused and rage-filled teen, Greta Thunberg, the truth about who is writing her script came out later that day, on September 23, when Bank of England Governor Mark Carney delivered his warning that, according to the largest banks in the world, no alternative to investments that shift industry “from brown to green” will be tolerated.

Carney opened his talk by stating, “A new, sustainable financial system is being built.” The key to this, he said, is bringing “climate risks and resilience into the heart of financial decision making,” as “sustainable investing must go mainstream.” As Carney and other speakers made clear during the course of the summit, by “sustainable” they mean phasing out the energy production that provides the largest percentage of power in today’s economy, including coal, oil and gas, and nuclear production, and replacing them with sources with ostensibly low or zero CO_2 output.

None of them spoke of what the result of such a transition would be, i.e., moving to an inefficient global power grid based on decreasing the energy-flux density of the system, incapable of sustaining the levels of manufacturing, transportation, construction, or agricultural production required to support seven-plus billion lives on the planet. The result will be not having a sufficient electricity supply for the developing and developed countries alike, increased global infant mortality, shortened lifespans, and depopulation.

On Sept. 22 in New York City, on the eve of the UN Climate Action Summit, under the auspices of the United Nations Environment Programme–Finance Initiative, executives of 130 global banks—led by 30 of the biggest—signed a “compact” called “Principles of Responsible Banking,” committing them to make the policy of the Paris Climate Accord, their own investment policy. That 2015 Paris Accord implicitly called for three-quarters of world coal power production to be eliminated by 2030. These 130 banks claim $47 trillion in assets.

While wielding fear-mongering language about the planet “boiling over” due to “man-made climate change”—which is based on Fake Science and the suppression of debate over the real sources of changes in climate—the financial powers behind Carney’s jihad against modern society care little about the conditions of life on Earth.

Bloomberg/Simon Dawson

Mark Carney, Governor of the Bank of England, is building “a new, sustainable financial system” of central bankers, outside the reach of elected national governments.

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Carney Pushes Bankers’ Dictatorship

Carney, in his UN speech, expanded on what he presented at the Federal Reserve’s annual outing in Jackson Hole, Wyoming, on August 22. In his remarks there titled, “The Growing Challenges for Monetary Policy in the Current International Monetary and Financial System,” Carney insisted that the era of the dollar has ended, and proposed replacing it with a virtual, digital currency, controlled by Central Banks. Specifying that nothing physical would back this new “synthetic hegemonic currency,” he said this new “financial architecture” would allow for the expansion of credit as needed.

Elaborating further, Carney added that he is proposing what former Fed Chair Ben Bernanke described as “helicopter money,” that is, distribution of funds produced by Central Banks, as though dropped from helicopters, to “stimulate” the economy. Left unsaid is the real policy: that this new currency would be directed, by the Central Banks, to flow into the endangered speculative bubble, and to create new bubbles, such as the Green Financial Initiative boondoggle he is promoting.

Carney’s Jackson Hole proposal, and a parallel one from the giant Wall Street firm, BlackRock, Inc., promoted by four prominent former central bankers, would far surpass the volume of funny money produced thus far by such gimmicks as Quantitative Easing and Zero or Negative Interest Rates. Such funds would not go to the real, physical economy, but into increasingly risky speculative ventures, to provide a short-term rate of return from trading to keep the bubbles from popping. Their supporters refer to these proposals as representing a “regime change in global finance.”

At the UN, Carney explicitly laid out the terms for this “regime change,” making clear that those who reject it will be targeted for extinction! Apart from the big banks, he identified the enforcers as asset managers, pension funds, insurers, credit rating agencies, accounting firms and shareholder advisory services. Carney initiated and co-chairs a Task Force on Climate-related Financial Disclosures (TCFD) among central banks and large European private banks, in order to “make these disclosures mandatory.”

Carney then proceeded to lay bare his threat against any business or enterprise that might consider rejecting this change in regime:

Firms that align their business models to the transition to a net zero[-carbon] world will be rewarded handsomely. Those that fail to adapt will cease to exist. (emphasis added)

In other words, minimally, non-compliant firms will be denied credit, making their survival impossible.

CC-BY-SA 3.0 de

Reich Chancellor Adolf Hitler (left) meeting with Reich Minister of Economics and Reichsbank President, Hjalmar Schacht (center) in 1936.

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A Crashing Sound Behind the Podium

Why have Wall Street’s and especially London’s, Frankfurt’s and Amsterdam’s bankers become “green” crusaders since 2015? Why and when, historically, do bankers become the drivers of extreme austerity on governments, and gin up movements of angry youth to shout down other views and break up others’ meetings? In other words, why and when do the biggest bankers become fascists—as Hjalmar Schacht said to his fellow bankers in reference to support for Hitler’s Nazis in 1932: “Gentlemen, open the cash boxes.”

Most of these bankers have not made any money—at least not remotely honestly—since 2015. Governor Carney and just about everyone else who spoke at the Jackson Hole bankers’ meeting admitted that the policies of zero interest rates and negative interest rates were failures, “traps,” and nothing they did could generate any growth or even any inflation.

Now, the Federal Reserve has had to make emergency liquidity loans to financial institutions totaling well more than $350 billion during the past three weeks, because those banks and funds needed short-term liquidity and the Fed’s “primary dealer” (Wall Street) banks would not, or could not, lend it to them. This is a major financial system problem and tracks very closely the ominous, early-2007 footsteps of the then approaching Global Financial Crash and Great Recession.

The Fed has not only had to extend its “day or two” emergency overnight lending from Sept. 16 through at least Oct. 10, but had to raise the daily injection to $100 billion, and add two-week liquidity loans in addition—first $30 billion of them on Sept. 24 and then $60 billion on each of Sept. 26 and 27—to carry banks past the third quarter’s end of September 30. These steadily rising liquidity injections nonetheless usually failed to meet the demand from the banks that were being refused loans from other banks, until Friday, Sept. 27.

Banks refuse liquidity loans to each other when they smell insolvency—if not of the borrowing bank itself, then of its corporate clients. They clearly are sensing the decay of the immense trans-Atlantic corporate debt bubble—whose “junk debt” parts alone total $3.5 trillion—and the securitized “everything bubble” around it including subprime auto loans, credit card debt, student debt, etc. Business capital investment is falling in Europe, and in the past two quarters, in the United States.

And we should not forget hundreds of super-indebted oil and gas drilling firms and their suppliers who make up a large chunk of very leveraged bank lending in the United States in particular, and are now losing more money than usual and facing a wave of defaults. This may be where Carney’s “those who don’t go green, will become extinct” intersects the financial crisis-sign of banks refusing to lend to other banks.

Whether that is the case yet or not, “green finance” is a desperate boondoggle, which these “responsible bankers”—so “responsible” that they include Deutsche Bank, Danske Bank, Lloyds, Barclays, Citigroup!—hope will let them loot their way, carbon taxes and tripled electricity prices and all, past the financial blowout they know is coming.

UN/Ariana Lindquist

City of London and Wall Street’s poster-child Greta Thunberg, performing at the UN Climate Action Summit in September, promoting de-industrialization and depopulation under the cover of “saving the planet.”

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The Iron Teeth Behind Greta’s Tears

Carney’s address, and similar threatening outbursts, such as that by U.S. billionaire Michael Bloomberg, received little media coverage, as the fawning media focused instead on the children of the Apocalypse, led by Greta Thunberg. Her short address was scripted to appeal to a hoped-for audience of confused and frightened youth, while also meant to instill shame in those believers in man-made climate change who hesitate to take down the global economy, and provoke fear among those scientists and others who know the science being touted behind this “regime change” is fake.

The opening of her act demonstrates that intent:

My message is that we’ll be watching you. This is all wrong. I shouldn’t be up here. I should be back in school. . . . Yet you all come to us young people for hope. How dare you!

You have stolen my dreams and my childhood with your empty words. And yet I’m one of the lucky ones. People are suffering. People are dying. Entire ecosystems are collapsing. We are in the beginning of a mass extinction, and all you can talk about is money and fairy tales of eternal economic growth. How dare you!

Given the state of delusion apparent in Greta Thunberg’s case, it may be that she believes what she is saying. However, there is no such excuse for those who produce the fake science while suppressing the work of real scientists who disagree, or those, such as Carney, who know or should know, that their dictates will produce mass misery and death among those already suffering from the terms of the unjust world order controlled by the City of London and Wall Street. There have been several commentators in the United States who have pointed out that denying electricity, in the name of climate protection, to more than 1 billion people who currently lack power, while taking away efficient levels of energy-flux density for future energy production, is a death sentence.

This was underscored by a disgusting scene of former U.S. President Barack Obama giving a fist-bump to Greta, when he hosted her in his home in northwest Washington, D.C., before the UN summit, saying “You and me, we’re a team.” Many young people in Africa may recall Obama’s stern comment during a 2013 town hall meeting with elite African youth at the University of Johannesburg’s Soweto campus in South Africa, in which he dismissed his audience’s desire for an “American-style living standard”:

Ultimately, if you think about all the youth that everybody has mentioned here in Africa, if everybody is raising living standards to the point where everybody has got a car and everybody has got air conditioning, and everybody has got a big house, well, the planet will boil over—unless we find new ways of producing energy.

All cars entering the campus for the June 29, 2013 event had to pass by large posters depicting Obama with a Hitler mustache, held proudly by a lively group of LaRouche South Africa organizers.

LaRouche PAC activists brought reality to the UN Action Summit in New York City, distributing the new Executive Intelligence Review report, “ ‘CO_2 Reduction’ Is a Mass Murder Policy, Designed by Wall Street and the City of London.” When LaRouche organizer Daniel Burke, a candidate for U.S. Senate in New Jersey, confronted Carney after his speech at the Bloomberg Global Forum, accusing him of pushing genocidal policies, Carney grunted “You’re quite wrong about that,” while dashing across the street to dive into his limo. As the pamphlet circulates, and the truth comes out about the murderous policies being promoted for a global bankers’ dictatorship, it will become increasingly difficult for Carney to dash off.

EIRNS/Sylvia Spaniolo

LaRouchePAC organizing against the Green New Deal in New York City on September 25, 2019. Daniel Burke, LaRouchePAC-endorsed candidate for U.S. Senate from New Jersey, is on the right.

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ZEPP-LAROUCHE WEBCAST

This is an Unbelievable Historic Moment:

We Must Change the Agenda Completely!

Presidential Office of Ukraine

President Trump and Ukrainian President Volodymyr Zelensky meeting on the sidelines of the United Nations General Assembly in New York City on September 25, 2019.

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This is the edited transcript of the Schiller Institute’s September 25, 2019 New Paradigm interview with the founder of the Schiller Institutes, Helga Zepp-LaRouche, by Harley Schlanger. A video of the webcast is available.

Harley Schlanger: Hello. I’m Harley Schlanger from the Schiller Institute. Welcome to our weekly webcast with our founder and President, Helga Zepp-LaRouche. Today is Sept. 25, 2019, and we’re in the midst of a phenomenal confluence of events: The system’s blowing up. We will look at several aspects of this in the course of the discussion.

I think we should probably start with the efforts of the Democrats, with the announcement by Speaker of the House Nancy Pelosi that they’re going to begin an impeachment inquiry on President Trump. Helga, this is a dramatic leap into the unknown for them, isn’t it?

Helga Zepp-LaRouche: I think you have to see all of the elements together: The unbelievable intervention by Greta Thunberg at the UN Climate Action Summit, which we should really talk about, because this is the unbelievable manipulation by the banks—it has very little to do with this poor little girl. The financial system is about to blow, and the Democrats clearly are being told by their financial backers that they have to get rid of Trump by all means, because they don’t want Trump in a position to act when the system is about to disintegrate.

What is happening right now is an unbelievable historical moment, and it really requires an intervention to change the agenda completely.

Democrats Take Steps to Impeach

The Democrats are trying to impeach Trump on a very flimsy pretext, namely, that the President leaned on the President of Ukraine, Volodymyr Zelensky, to investigate the activities of Hunter Biden, in order to knock out the rival presidential campaign of Hunter’s father, Joe Biden, in the 2020 election. Trump’s personal lawyer, Rudolph Giuliani, has already demanded from the present Ukrainian government that it turn over all of its information concerning the intervention of the previous U.S. government on behalf of the Hillary Clinton presidential campaign in the 2016 election. And we know that this is all closely related to the regime-change events of 2014 in Ukraine.

So, the Democrats are clearly on a suicide mission: They have no case. Pelosi clearly resisted this for a very long time, but they’re completely desperate now. Renowned constitutional and criminal lawyer Alan Dershowitz has said, if you go for impeachment, you must at least have the crime defined, but there is no crime.

This is causing complete chaos. Some reasonable Democrats, like Rep. Tulsi Gabbard, aren’t going along. In a CNN interview on September 24, Gabbard said she will not support this, because “impeachment would be terribly divisive for our very divided country. . . . Impeachment would further tear apart an already divided country.”

C-SPAN

Speaker of the House Nancy Pelosi (D-Calif.) has announced a formal impeachment inquiry of President Trump. Republican William Weld, the U.S. Attorney who oversaw the prosecution of Lyndon LaRouche and his associates, has accused Trump of treason.

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Even some Republicans are also out to get Trump. For example, William Weld—of all people—who wants to challenge Trump’s nomination in the upcoming Republican primaries. On MSNBC’s “Morning Joe” program, Weld accused Trump of treason. Weld alleged that Trump’s pressuring of President Zelensky to investigate the business dealings of Biden’s son Hunter in Ukraine, while his father, Joe Biden (now a Democratic Party presidential contender), as Vice President, was overseeing the Obama administration’s Ukraine policy, was “treason, pure and simple, and the penalty for treason under the U.S. code is death. That’s the only penalty.” This is unbelievable! Now, he says that Trump should rather accept removal from office than face the death penalty.

This is just beyond the beyond. People should just understand who William Weld is: He was the U.S. Attorney in Boston who was one of the key instigators in the entire case against my late husband, Lyndon LaRouche. He was the perpetrator of what former U.S. Attorney General and LaRouche attorney on appeal, Ramsey Clark, said involved “a broader range of deliberate and systematic misconduct and abuse of power over a longer period of time in an effort to destroy a political movement and leader, than any other federal prosecution in my time or to my knowledge.” And now William Weld is behind the attempt to oust Trump from office, one way or another.

I think all this can backfire, and it just brings up the necessity to really exonerate Lyndon LaRouche, because this thing will backfire. This can potentially bring the entire truth out of what has been going on in American politics for the last several decades. You should be tuned into it and help us to get this truth out.

Schlanger: I think one of the important things with the potential to backfire is Biden’s role in the Obama Administration, in running the coup in Ukraine in 2014. The Biden role in 2014 to run this neo-con, neo-Nazi coup in Ukraine is part of the whole picture that later evolved into Russiagate, isn’t it?

DoS/Public Domain

Victoria Nuland, Assistant Secretary of State for European and Eurasian Affairs, and U.S. Ambassador to Ukraine Geoffrey Pyatt greet Petro Poroshenko, the Ukrainian President they helped to elect. Warsaw, Poland, June 4, 2014.

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Zepp-LaRouche: Yes. Biden was Obama’s point man, he worked with Victoria Nuland, Obama’s Assistant Secretary of State for European and Eurasian Affairs. And this can completely backfire. The Democrats must know that now the whole story about Biden’s son will come out. Giuliani has already said that Hunter Biden pocketed $3 million for joining the board of Burisma Holdings, a Ukrainian natural gas company, and it probably means the Democrats know that Biden’s Democratic presidential race is finished.

DoS/Public Domain

Secretary of State John Kerry (left) with Jonathan Winer, Special Envoy for Libya and Senior Advisor for MEK Resettlement, in Rome on February 1, 2016.

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Schlanger: And it also intersects Russiagate, in that Christopher Steele was very much involved in the Ukraine operation, working through Secretary of State John Kerry’s assistant Jonathan Winer. So the potential for backfire is great.

Why the Banks Are Desperate

Also having backfire potential is the role of the banks in pushing the UN’s climate change agenda—the Paris Climate Accord, and so on. Let’s talk for a minute about the banking crisis: You’ve been talking about the importance of this “repo crisis” as a return to 2008, and worse. What’s going on with this?

Zepp-LaRouche: Right now there is a tremendous liquidity crisis. Last week, the U.S. Federal Reserve injected more than $300 billion into the banking system; this week, the Fed started by providing an additional $75 billion in overnight lending, which did not meet the demand. So we are clearly sitting on a powder keg, where all the parameters of 2008 are there, again.

Thomas Cook, the global travel firm in Great Britain, went belly up, shutting down 21,000 jobs overnight, and stranding 650,000 tourists. This is just a reflection of this crisis, because it’s now hitting firms having large debts, and while they have been used to rolling over this debt by going to the banks, now the banks are not taking the risk any more. Expect many more such bankruptcies like Thomas Cook. Another one is a large bus company, which means 1,300 jobs lost in Great Britain, and a small bank, called Metro Bank. And I think we are seeing just the tip of the iceberg. This may very well be the beginning of the disintegration of the financial system.

And this is why the banks are so absolutely desperate to impose this green financing, which obviously cannot function, but it’s a very serious effort to bamboozle the whole world into accepting a scheme which would have tremendous population reduction consequences. And this is what was just attempted at this UN Climate Action Summit in New York City.

Bankers Run Green Depopulation Agenda

Schlanger: One of the people who spoke at the UN Climate Action Summit was Bank of England Governor Mark Carney, who last month at the Jackson Hole summit called for a “regime change” in financing. Isn’t that pretty transparent that you have the bankers now out in front of the so-called green movement?

Zepp-LaRouche: Well, it was that all along. Because the Greta Thunberg phenomenon is relatively recent, as are FridaysForFuture, and Extinction Rebellion—these are all creations of the last year. But this all comes out of the Climate Agreement signed by 175 country parties at the 2015 United Nations Climate Change Conference, COP21 in Paris.

Article 2, Section 1(c) of that Agreement, for the first time, states that in order to strengthen the global response to the threat of climate change, it is agreed to “make finance flows consistent with a pathway towards low greenhouse gas emissions and climate-resilient development.” The only way to implement climate protection is by channeling the entire financial investment into “green” financing, by going out of all coal-fired power plants by 2030, or at least three-quarters of them.

WEF/Moritz Hager

Mark Carney, Governor of the Bank of England, speaking at the Annual Meeting of the World Economic Forum in Davos, Switzerland, January 24, 2015.

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Immediately after the COP21, the Green Finance Initiative was formed in Great Britain, with Governor of the Bank of England Mark Carney playing a prominent role. The intention was clearly stated to make the City of London the financial hub for all future green financing. In the meantime, attempts to impose legislation to enforce Article 2.1(c) are being made—this will happen in the EU, it’s already happening with the Climate Cabinet in Germany, and they’re clearly trying to now use this 2019 UN Climate Action Summit to impose 2.1(c) on a global scale.

Now, this is completely unworkable. On the eve of the 2019 UN Climate Action Summit, 130 banks, supposedly representing $47 trillion in assets, agreed to a set of six UN Environment Programme–Finance Initiative-sponsored Principles for Responsible Banking, in effect a compact for green financing. Were the world’s financial flows significantly shaped by the principles of this compact, the world economy would collapse.

There’s no way the world could function under such an arrangement. There might be short-term financial profits, but, by converting to power sources of relatively low energy-flux density, today’s population densities and absolute numbers cannot be sustained.

So, this green program is, in fact, a mass-depopulation program, and I think we are seeing the last gasps of it, because you cannot reduce the living standards, the life expectancy of hundreds of millions, and maybe billions of people around the globe, because that would be the effect of these policies.

This is a terrible crisis. And I think this UN show, this Climate Action Summit, was a gigantic effort to brainwash the population into accepting the Green agenda. And poor Greta Thunberg, who obviously went completely hysterical—people who watched her short clip saw that this young girl is really very close to a breakdown; she can’t take it.

Many young people are completely desperate. You have now psychological treatment for young people who are having traumatic breakdowns because they think the world is coming to an end in 18 months—that they’re all going to die. What’s happening here? With the support of the media, some of the world’s renowned political leaders are behaving so absolutely irresponsibly, that they’re driving a whole segment of the youth population into despair.

And it’s all based on a fraud! Changes in Earth’s climate are not caused primarily by human activities, but by processes which have to do with the Sun, the Solar System. What is happening right now is a complete fraud, it’s absolutely irresponsible, it’s almost criminal—it’s an effort to bamboozle the world into accepting a scheme actually designed to save the banking system when it is collapsing bigtime, more than 2008. This can only lead to a total catastrophe if we don’t intervene and change the agenda, dramatically. And the needed answer must be Glass-Steagall, and the Four Laws which were designed by my husband.

EIR: ‘CO_2 Reduction’ Is Mass Murder

Schlanger: Into this environment, we are intervening with a newly released pamphlet, “ ‘CO_2 Reduction’ Is a Mass Murder Policy—Designed by Wall Street and the City of London.” That’s a pamphlet that we’re getting out, and that our viewers should download, should get copies, should purchase copies, and should circulate.

Now, Helga, you mentioned something about the ultimate goal of this policy—depopulation, deindustrialization, by destroying the energy sector—this is what your husband wrote about prior to the 1971 decision by President Richard Nixon, to dismantle the Bretton Woods system. Can you give our audience a picture of what Lyn warned about at that time, and how accurate his forecasting was?

Zepp-LaRouche: My husband had developed his own economic-scientific method, based on the principles of physical economy of Gottfried Leibniz, of Bernhard Riemann, and from that standpoint, he criticized, as early as the beginning of the 1950s, the absolute idiocy of mathematics, of algorithms, of the information theory of John von Neumann, of Norbert Wiener, all of these theories, as being completely inadequate to describe processes in the real physical economy.

From that point of view, he recognized—the only person at the time to do so—the significance of the Nixon measures, the Aug. 15, 1971, decoupling of the dollar from gold as a reserve standard; ending the fixed exchange-rate system and replacing it with a floating exchange-rate system. At that point my husband said that this dismantling of the Bretton Woods system and the implementation of monetarist policies, would lead necessarily to a new depression and the danger of a new fascism, unless replaced with a new world economic order.

Now, I think this was absolutely prophetic. What we are seeing right now, is exactly that: The whole financial system of the trans-Atlantic sector is based entirely on algorithms, on mathematics; it has absolutely nothing to do any more with the real economy. The entire financial sector is completely separated from any relation to the real economy, and this system is now breaking down, into a modern version of what Germany’s Hjalmar Schacht and Governor of the Bank of England Montagu Norman did in the 1930s, in reaction to the financial crisis then.

What today’s bankers are trying to do right now, is to again implement fascist policies which would mean brutal austerity: Cutting down the living standard, which leads to cutting down the life expectancy in the so-called advanced sector, because it would make health services more expensive and so forth, but it would mean mass genocide in the developing countries, because if you deny these countries access to affordable energy, you just say “no development at all.”

What we see right now, is a gigantic effort to basically repeat fascist economics with modern characteristics. And the only remedy for that is exactly, in a certain sense what President Franklin Roosevelt did in 1933, because fascism at that time was only implemented in Europe, with Hitler, with Mussolini, with Franco, but Roosevelt went for a New Deal: He went for Glass-Steagall; he implemented the recommendations of the Pecora Commission—I think that’s something we should urgently revive right now, with respect to these bankers, because these 130 banks announced “Principles for Responsible Banking” at this summit. I mean, these banks—Deutsche Bank, Barclays—all of these banks have a long record of being involved in the London Inter-Bank Offered Rate (LIBOR) scandal, in their various manipulations; they have a long record of criminal activity, which we should have a Pecora Commission investigate today.

LaRouche’s Solution

But unlike Roosevelt, these banksters are talking about a Green New Deal, which is the opposite of what Roosevelt did, and what we need is exactly the entire package: Glass-Steagall, separate the banks; if they can’t get their books in order they should declare insolvency. We need to go to a system of National Banking; of a new international credit system, a New Bretton Woods system; and we have to increase the productivity of the failing economy, through a crash program for fusion and international space cooperation.

We are circulating right now a short petition to the effect that we have to answer this “coincidence” of the financial collapse and the attempt to impose green financing, which cannot function, with the Four Laws package of Lyndon LaRouche. I ask all of you, our viewers, to help us to circulate this petition, to change the agenda, because it’s a crisis—but it’s not a climate crisis, it’s a crisis that the financial system is coming down.

Schlanger: As your husband described it many, many years ago, what we’re talking about here is ecological fascism, or eco-fascism: it’s the absolutely appropriate term. Our viewers should note that our organizers are going to campuses all over the world, including all over the United States, and they should join us. You wrote a beautiful leaflet with the headline that the “Age of Reason Is in the Stars!” to inspire young people to look to the heavens, instead of walking around thinking that Armageddon is right around the corner.

Helga, one other thing I would like you to comment on, is the line that’s coming out from this climate summit, that almost all leaders of the world support the green agenda, and there are only a handful of “climate-deniers.” And that young people all over the world want this green agenda. We know that neither is the case. This is part of the insanity that’s being pushed. Why don’t you say something about that?

PIB

India’s Prime Minister Narendra Modi with President Donald Trump at the “Howdy Modi” event in Houston, Texas on September 22, 2019.

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‘There Is No Climate Emergency’

Zepp-LaRouche: There was just published a letter to António Guterres, the Secretary General of the United Nations, signed by 500 scientists and professionals from many countries, headlined, “There is no climate emergency.” There is no connection between anthropogenic CO_2 emissions and climate change. They appeal to the governments of the world not to implement measures which are extremely expensive, which will have dramatic effects on the life and even the existence of millions of people. And they appeal that these measures should not be implemented, but that there must be an honest, scientific debate about what is going on with the climate, which is a very complex question.

So, it is not true that there is a “consensus.”

Meanwhile, in an interview with CBS’s “Face the Nation” on September 27, John Kerry declared “World War Zero” on those who oppose the climate change agenda and, extending the metaphor, called climate-deniers and skeptics the “Axis.” He actually uses the word “Axis.” I mean, this has gone completely haywire.

We have to go back to reason and a discussion of the laws of the physical universe. This will lead us to discussing why we need, for example, international space cooperation to find out more about the real causes of climate change.

I think there is good hope, because, apart from many things we just don’t have time now to comment on, two of the better things Trump did recently are noteworthy. One was on the occasion of the visit of the Australian Prime Minister Scott Morrison to Washington. Trump spoke about international space cooperation, that the United States wants cooperation to go to the Moon as the launching pad to go to Mars.

And when Indian Prime Minister Narendra Modi came to Houston to address the large number of his supporters in Texas, which Trump also attended, they both talked about international space cooperation between the two countries.

The reason we counter this green insanity with the space orientation, is that once people start to look at the real universe, and start to look at science—because in space you can only exist if you follow the physical laws of the universe and not some ideology—you get out of this complete ideological brainwashing which is happening right now.

So, I would invite everyone to join our campaign, and have a real scientific discussion about all of these questions and not go for these hysterical outbursts.

EIRNS/Pat Holzer

Helga Zepp-LaRouche delivers the keynote address to the 2019 Euro-Asia Economic Forum Think-Tank Meeting in Xi’an, China on September 11, 2019.

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Zepp-LaRouche at China Economic Forum

Schlanger: I think there’s one other counterpoint—and you’re especially authoritative as a commentator on it—which is the difference between the view in China, and the apocalyptic view of limited resources and Thunberg’s attack on “endless growth.” You were just at a conference in China. The Chinese don’t buy this green stuff: They’re continuing to pursue legitimate goals, whether it’s in space or otherwise, relevant to the physical economy. Give us a little bit of a sense of what happened at this conference in Xi’an that you attended.

Zepp-LaRouche: This was a very interesting conference, the 2019 Euro-Asia Economic Forum, which has taken place every two years since 2005. I spoke there about the need for the West to better understand the motives of the Chinese. There is right now this absolutely anti-Chinese hysteria. For example, the Hong Kong color revolution attempt to destabilize China. The Chinese really don’t understand why all of this is happening, because, as I said in my presentation there, from the Chinese standpoint, the last 40 years of reform and opening-up has just transformed life for the majority of Chinese, from being a very poor, underdeveloped country, to now, when China is the second largest economy in the world—and in some categories I think they’re already taking the first place. They must be doing something right.

Rather than being so hysterical, and trying to contain the rise of China—and of all of Asia for that matter—which I don’t think is possible unless you go to World War III—people should rather ask themselves: What are the principles of the Chinese economic miracle? What are the Chinese doing right, and what is the West doing not right anymore?

One very interesting example I think illustrates the case, and that is that China has just announced that it has finished its second international airport in Beijing. China started the planning only four years ago, and completing it in less than four years at a cost of $11 billion. This new Beijing Daxing International Airport will soon transport 100 million passengers per year, and will probably be the largest, most modern airport in the world.

Compare that to the pitiful misery of the Berlin Brandenburg Airport (BER), which, after almost 15 years of planning, with a projected annual passenger traffic of only 34 million, and construction beginning in 2006, has yet to be completed. It is becoming the laughingstock of the whole world.

People should ask themselves: What is Germany doing wrong, and what is China doing right, that it is able to do what the Germans were perfectly capable of doing only a couple of decades ago? Since we can’t discuss this now in depth, I want to leave it as food for thought. We need more rationality in the discussion and less ideology: And that is what the Schiller Institute is for.

So get the pamphlet on what’s behind the green financing assault on the economy, join us in the campaign for Glass-Steagall and the implementation of the Four Laws, and otherwise be reasonable and don’t fall for hysteria.

Schlanger: And be happy, don’t be influenced by the sad-sack appearance of the young lady from Sweden.

Helga, that’s all we have time for today, so I’d like to thank you, and see you next week!

Zepp-LaRouche: Yes. Till next week.

‘Climate Change’ Hoax Deflated at the UN and in Ibero-American Webcast

by Dennis Small

EIRNS

Webcast to Ibero-America. Clockwise from upper left: Benjamin Deniston and Dennis Small; Mexico City, Mexico; Buenos Aires, Argentina; and Querétaro, Mexico.

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Sept. 30—“This is an excellent job, and I want to congratulate today’s speaker, Ben Deniston of the Schiller Institute’s scientific research team, and congratulate all of you for the work you are doing to shed light on the truth about this misleading ‘climate change’ story that has been intentionally introduced, and whose source comes from Great Britain, which always makes us suspicious about its origins and goals,” stated Air Commodore (ret.) Horacio Ricciardelli of Argentina, at the outset of the Q&A session of the Schiller Institute’s Sept. 26 Spanish-language webcast on Lyndon LaRouche’s Moon-Mars Mission. The webcast featured Ben Deniston of LaRouche’s scientific research team, speaking to some 200 people, over half of them students, gathered in four locations—Mexico City, Hermosillo and Querétaro in Mexico, and Buenos Aires, Argentina—to participate in a live dialogue.

Speaking from Buenos Aires after listening to Deniston’s presentation, Commodore Ricciardelli responded:

I was the deputy director of Argentina’s National Meteorological Service for a number of years. Beginning in 1979, I participated in various international gatherings in Geneva, which is where the World Meteorological Organization is based. I also have experience in the Air Force—I’m a Malvinas War veteran. . . . I want to corroborate [what Deniston said], that you cannot talk about temperature change over one year, ten years, or 100 years. You have to talk about hundreds of thousands of years.

He added that he had traveled across Antarctica many times, including to Argentine, American and other bases on that continent, and that he concurred not only with the science presented by Deniston, but also with his identification of the source of the lies being promoted:

As for the sensationalist and alarmist views [on global climate change], all you have to do is look at the people who are behind this policy of population reduction: Prince Philip of the United Kingdom, Prince Bernhard [of the Netherlands], and their Anglo-Dutch associates involved in running these attacks on life, including abortions and, soon enough, genocide against the elderly.

Left: EIRNS; right: public.flourish.studio

Left: Benjamin Deniston; right: Air Commodore (ret.) Horacio Ricciardelli

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Deniston’s speech—which will be published, along with excerpts of the Q&A, in the next issue of EIR—was titled “Climate Change or Creative Change: Mankind’s Next 50 Years in Space,” and it presented both the scientific fraud of the CO_2 climate change scare and its British imperial origins, as well as an optimistic scientific view of Man’s future, based on fusion-powered space exploration and colonization, beginning with a Moon-Mars mission as designed by Lyndon LaRouche and the great German-American space scientist, Krafft Ehricke. It triggered a lively discussion during the Q&A session which went on for more than an hour.

Dialogue Across Generations and Continents

What made the webcast a success, is that it was a dialogue about the future with the youth who will be instrumental in shaping it, based on the outstanding achievements of the past—all centered around the scientific breakthroughs of the recently deceased American statesman and physical economist, Lyndon LaRouche.

The history of Argentina’s National Meteorological Society is directly relevant on this point. It was founded in 1872 by Benjamin Apthorpe Gould, an American astronomer/physicist who settled in Argentina to found the National Astronomical Observatory in Córdoba in 1870. Gould, an American System scientist in the circles of Alexander Dallas Bache, had studied at Göttingen under Carl Gauss. Gould’s associate, Walter Davis, also an astronomer/meteorologist, became the director of the Meteorological Society in 1885 and ran it for thirty years, until Argentine associates took over. Gould reflected the coming together of the American System and Humboldt-Göttingen scientific traditions, which exist to this day in Argentina.

It is in significant part due to these overlapping Argentine and American historic traditions that Lyndon LaRouche’s scientific, strategic and economic work has always resonated so strongly among Argentine nationalists. When LaRouche visited Argentina in 1984, at the heart of the international battle for his Strategic Defense Initiative policy, which President Ronald Reagan had adopted in March 1983, LaRouche held extensive, in-depth discussions with Argentina’s leading nuclear and space scientists, top military leaders and strategic planners, and President Raúl Alfonsín.

In addition to the participation of scientists and engineers in the webcast, the second key feature was the presence of young people, who made up about half of all the participants. They were largely university students, and Deniston’s presentation had a major impact on them. By and large, young people in Ibero-America, like their American counterparts, have not fallen fully for the green propaganda, despite the massive media brainwashing campaign, and the participants were open and happy to discuss real science. The Q&A session reflected this process, and many of them asked for follow-up discussions, classes, and so on.

For example, in Mexico City a student of international relations told Deniston:

I’m sort of struck by this, because I’m one of those people who has a moral problem, because I don’t know whether or not to believe everything they tell me is true. I really thank Mr. Deniston for having enlightened us with this information. How can we fight against this fear? How can we unite to benefit all humanity?

An aeronautical engineering student in Mexico City asked:

How would you go about transporting helium-3 from the lunar surface to Earth? How do you make sure no one country controls all resources? Would an organization be created to regulate these kinds of projects?

A group of students in San Juan del Río, Querétaro, in Mexico, asked simply: “Why should we colonize space?”

And a student in Querétaro commented, after a follow-up discussion of LaRouche’s Moon-Mars project:

I really enjoyed the presentation; it was a first for me. I love LaRouche’s ideas, and will look into them further. I’d like more youth to join in this effort.

A second student in Querétaro added:

The way the discussion went addressed that gnawing doubt I’ve had, of how to build a new consciousness for the future, to improve our country and the world.

EIRNS/Eli Santiago

LaRouchePAC organizing at the UN in New York City on September 24, 2019.

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Wall Street Caught Red-Handed

The same week as the Ibero-American webcast, LaRouche activists in New York City also conducted a very high-profile exposure of the banksters’ green fraud at rallies outside the United Nations. Dozens of organizers were in the Dag Hammarskjöld Plaza on Sept. 24, the opening day of the UN General Assembly heads of state debate. They distributed thousands of copies of the press release on the new EIR dossier, ‘CO_2 Reduction’ Is a Mass Murder Policy by Wall Street and the City of London. Using a loudspeaker, they elaborated the message of their big banner: “The World Needs More CO_2! Green New Deal Is Genocide. Crush the British Empire.” Scores of ambassadors, and thousands of international visitors streamed by, attending the first day’s session, addressed by U.S. President Trump and others. One prominent poster stated, “A Good Relationship with Russia and China Is a Good Thing!”

The same day, across the street, was the bankers’ confab, the Bloomberg Global Forum, at the Plaza Hotel. Besides billionaire host Michael Bloomberg, who is the UN Special Envoy for Cities and Climate Change and director of “Beyond Carbon” to shut down coal plants, there were many bankers, including outgoing IMF Chairman Christine Lagarde and JPMorgan Chase Chairman Jamie Dimon. Demonstrators in front of the hotel spoke with many of the conferees directly. One Argentinian demonstrator told Lagarde personally, “Thank you. Thank you for destroying my country.”

When Bank of England Governor Mark Carney, who addressed Bloomberg’s Forum, came out of the event, he was shown the “Mass Murder” dossier and was read the full title by Daniel Burke, candidate for U.S. Senate from New Jersey. Carney snapped at Burke, “You’re quite wrong about that,” and attempted to quickly walk off to avoid any more contact. But Burke spoke out clearly, “Mark Carney’s policies are genocide! To prevent nations from building power plants is to condemn the people to death. Nazi bankers must be jailed!” Carney got into his car, and rode away stone-faced.

LETTER TO UN SECRETARY GENERAL

Prominent Scientists and Professionals to UN:

‘There Is No Climate Emergency’

UN Photo/Steven Bornholtz

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Sept. 30—“Your Excellencies, There is no climate emergency.” So opens a Sept. 23 letter sent by Prof. Guus Berkhout—on behalf of a global network of 500 leading scientists and professionals in climate and related fields—to UN Secretary-General António Guterres and to the Executive Secretary of the UN Framework Convention on Climate Change, Patricia Espinosa Cantellano.

It is a cover letter for an enclosed European Climate Declaration, that grew from the Petition on Anthropogenic Global Warming delivered to Italian government agencies by leading Italian scientists in June 2019, which then circulated throughout Europe, the United States, and some other nations.

“Names are still flooding in,” Berkhout tells EIR, referring to new signers of the Declaration.

The cover letter—signed by Berkhout and the designated national ambassadors of the European Climate Declaration—urges the Secretary-General “to follow a climate policy based on sound science, realistic economics and genuine concern for those harmed by costly but unnecessary attempts at mitigation.” The official presentation of the Declaration—including the release of the full list of signers—will take place in Oslo, Norway on October 18 at the Climate Realists’ “Natural Variability and Tolerance” conference. More press conferences will follow in Brussels and Rome.

The letter, dated September 23, reads:

The letter is signed by the designated “Ambassadors of the European Climate Declaration,” representing 13 nations:

Professor Guus Berkhout—Netherlands. Emeritus Professor of Geophysics, Delft University of Technology; Member of the Royal Netherlands Academy of Arts and Sciences

Professor Reynald Du Berger—French-speaking Canada. Emeritus Professor of Geophysics, Université du Québec à Chicoutimi

Terry Dunleavy—New Zealand. MBE; co-founder (2006) and honorary secretary, New Zealand Climate Science Coalition

Viv Forbes—Australia. Geologist with special interest in climate; Founder, Carbon Sense Coalition, Queensland

Professor Jeffrey Foss—English-speaking Canada. Professor of Philosophy of Science, University of Victoria

Morten Jøsdal—Norway. Biologist; former biologist and chemist, Norwegian Research Council; former general manager, Center for Development and the Environment, University of Oslo

Rob Lemeire—Belgium. Publicist on environmental and climate issues

Professor Richard Lindzen—U.S.A. Emeritus Professor, Department of Earth, Atmospheric and Planetary Sciences, MIT

Lord Christopher Monckton—U.K. Articles on climate for peer-reviewed and popular journals, and former Special Advisor to Prime Minister Margaret Thatcher

Professor Ingemar Nordin—Sweden. Emeritus Professor, Philosophy of Science, Linköping University

Jim O’Brien—Republic of Ireland. Chair, Irish Climate Science Forum; Expert Reviewer, Intergovernmental Panel on Climate Change Sixth Assessment Report (AR6)

Professor Alberto Prestininzi—Italy. Professor of Practical Geology, Università di Roma La Sapienza

Professor Benoît Rittaud—France. Associate Professor of Mathematics at the University of Paris-North; President, Association of Climate Realists

Professor Fritz Vahrenholt—Germany. Professor of Chemistry, Institute for Technical and Macromolecular Chemistry, University of Hamburg.

Your Excellencies,

There is no climate emergency.

A global network of more than 500 knowledgeable and experienced scientists and professionals in climate and related fields have the honor to address to Your Excellencies the attached European Climate Declaration, for which the signatories to this letter are the national ambassadors.

The general-circulation models of climate on which international policy is at present founded are unfit for their purpose. Therefore, it is cruel as well as imprudent to advocate the squandering of trillions of dollars on the basis of results from such immature models. Current climate policies pointlessly, grievously undermine the economic system, putting lives at risk in countries denied access to affordable, continuous electrical energy.

We urge you to follow a climate policy based on sound science, realistic economics and genuine concern for those harmed by costly but unnecessary attempts at mitigation.

We ask you to place the Declaration on the agenda of your imminent New York session.

We also invite you to organize with us a constructive high-level meeting between world-class scientists on both sides of the climate debate early in 2020. Such a meeting would be consistent with the historically proven principles of sound science and natural justice that both sides should be fully and fairly heard. Audiatur et altera pars! [Let the other side also be heard!]

Please let us know your thoughts how we bring about such a momentous joint meeting.

The full list of 506 signers, https://larouchepub.com/other/2019/4639-euro-climate-declaration.pdf as of September 26, includes European Union scientists and professionals from Belgium (19), Czech Republic (1), Denmark (4), France (56), Germany (13), Ireland (15), Italy (113), Netherlands (57), Norway (17), Poland (3), Sweden (18), Switzerland (2), and United Kingdom (22). And there are signers from nations beyond the European Union: Australia (75), Brazil (7), Canada (17), China (2), India (1), Japan (1), New Zealand (14), Russian Federation (1), South Africa (3), and United States (45).

II. Lyndon LaRouche’s Legacy for Today

October 8, 1980

How to Regulate Credit-Expansion

by Lyndon H. LaRouche, Jr.

USDA

Alternating strips of alfalfa and corn planted on the contour protects this field in northeast Iowa from soil erosion by wind and rain.

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The following article is a reprint of the third chapter of Lyndon LaRouche’s “A ‘Gaullist’ Solution For Italy’s Monetary Crisis,” first circulated (in Italian translation) in Italy and then soon after published in 1980 by his National Democratic Policy Committee. That 70-page pamphlet addressed the financial chaos then causing havoc in Italy and put forward possible options for the government of then Prime Minister Francesco Cossiga. The content of the work, however, particularly LaRouche’s discussion of credit, banking and taxation policy in the chapter, “How to Regulate Credit-Expansion,” reprinted here, is extremely relevant to the banking and credit crisis we face today. The full work, just reissued as a 175-page book by EIR, is now available.

“It is an abomination that one firm should seek advantage over others by any other means than better technology and better management.”

I have recently produced for publication an extended discussion-paper of the National Democratic Policy Committee. That earlier paper treats the subject of credit-expansion at some length, counterposing the facts of the matter both to currently influential fairy-tales and to commonly expressed questions on that and closely related matters. Therefore, I shall not duplicate that treatment here.

The task here is to stipulate the methods, policies, and practices required to complement the currency reform, and also to show the lawful interconnection of those credit and tax policies to the economic processes outlined earlier.

The presentation here has two aspects. We examine the principles of credit and tax policies. We do this by considering their operation in a normal, healthy Italian (or, other) national economy. We also examine the way those policies and practices must be adjusted to take into account the reality that the Italian economy to which reforms must be applied is initially by no means either normal or healthy.

We begin with the matter of credit-expansion proper.

1. Without the creation of fiat-credit a modern industrial (capitalist) economy will stagnate, rot, and die.

That is directly evident in the normal, healthy case. The summary proof is provided by focusing on the significance of the Net Operating Profit of national income, S′. This is a portion of national output which is, by definition, in excess of the sum of money issued in payments for C, V, and d. The task is to devise methods and procedures to increase money supply (in excess of C+V+d) by an amount not in excess of S′’s price, and to restrict the initial circulation of that additional money supply to the purchase of part or the entirety of S′ for either construction or technologically progressive productive capital investment—allowing for operating as well as fixed capital.

2. This is most directly accomplished through the creation and issuance, on capital, account only, of gold-reserve-denominated national-banking currency notes, which notes are lent chiefly as participation in mortgages or investment loans.

Since these currency notes are issued through either national banking institutions directly, or as participation in loans issued by private banks, the currency issue effected in this way cannot be inflationary—as long as the conditions stated summarily above are not violated. The amount actually placed into circulation will not exceed corresponding loans issued to creditworthy borrowers, with security, for the increase of national wealth. The question, whether or not S′ is fully realized is defined, on principle, by the loan-demand for mortgage and productive investments from creditworthy borrowers. [box: A Real Measure of Physical Profit]

The margin of increased money supply circulated in this way is put in general circulation as either purchase of product corresponding to capital-goods portions of S′ or as operating capital (earned wages) of S′. No excess of money supply is caused in the first issuance. Since the volume of output of the economy is expanded by the increase either by scale or in capital intensity of employment, the expanded money supply will be less than the required money supply in the next epoch of expansion in the production cycle.

In other words, this method and policy for issuance of increased volumes of currency notes contains inherent “feedback mechanisms.”

Under the prescribed conditions of technological progress and tendency for increasing capital intensity of productive investments, the long-wave effect of credit-expansion of this form is deflationary.

3. The principled problem of credit-expansion does not arise in consequence of national-banking credit-expansion, but in the credit-multiplication potentialities of the private banking system.

Every financial official of professional competence knows the analysis of the private-banking credit-multiplier process which has become classical since J. M. Keynes’s treatment of the topic. In short, we must avoid a “Keynesian” form of uncontrolled credit-expansion through the private banking system.

This included problem is attacked by (a) regulation of criteria for lending, by category, of the private-banking system; (b) administration of private-banking reserve requirements; (c) regulation of the separation of commercial banking, savings banks, and credit unions; (d) regulation of insurance companies; (e) tax policies. The first four procedures are well known. It is the principles which must regulate the use of such procedures which require focus of attention.

4. The power to create and regulate currency and credit must be reserved to national banking.

Private bank lending should be restricted to lending against capital plus deposits, to resale of national banking credit through loans, in which national banking credit participates as a supplementary element, to lend as a lending agent of other private banks, and to perform export-, import-, and investment-banking functions.

While restricting the categories of loans in which national banking credit participates, national banking provides adequate lendable margins of funds for productive investments, construction loans and permanent mortgages, industrial, agricultural, and commercial operating capital. It purchases mortgages and other high-grade assets from banks, as well as participating with banks in providing export and import credit.

By supplying national banking credit at low borrowing costs, and by permitting private banks a standard service charge for handling such national banking credit, an adequately liquid, and prosperous private banking system can be maintained within tight reserve requirements.

5. Tax policies must be coherent with credit policies.

What credit policies seek to inhibit, taxation should deplete at relatively higher rates. The investments and commerce which credit policies seek to encourage must be taxed at relatively much lower rates.

There are two principal categories of taxation: taxation of income, and taxation of real property. Preferably, taxation of income should be limited to the national government, with percentiles of receipts collected paid to local governments, except revenues from import and export tariffs. Preferably, taxation of real property should be governed by uniform national policies, but collected to the account of local governments.

Taxation of Income

6. There is a maximum, determinable household income below which no income-tax liability should exist for the household, except the duty to report income according to standard, legal procedures.

The proper determination of the household tax exemption should be a fixed amount per member of the household.

This encourages family formation (marriage), and excludes regressive forms of taxation of lower-income households.

These households pay state-insurance premiums, real property taxes, and service taxes. They pay income tax on no portion of their income except that portion in excess of the exempt amount.

7. The progressive income tax schedule, before adjusting for investment-incentive exemptions, should have high rates.

The principled function of the high rates is to create powerful relative incentives for using income in ways which earn relatively generous investment-incentive exemptions.

8. The first category of investment-incentive tax exemptions is for depreciation, amortization, and depletion allowances, for tangible-product investments in fixed-capital capacities and productive improvements in agricultural and industrial production.

There are two categories of rules for determining investment-incentive tax-credits to farms and firms. First, we must determine the gross amount to be depreciated. Second, we must determine the rate at which it is to be depreciated.

The price of the depreciable asset is determined as the price of the original purchase of the manufactured asset or improvement; no allowance is to be given for a higher resale price paid than previously depreciated value for a resold asset.

However, the historical purchase price for the depreciated asset is not necessarily the price used to determine depreciation. The true replacement price is not the price of a duplicate of the historical, physical asset; it is the price of the technologically improved equivalent of the original item, according to the standard technology of that and comparable industry’s current capital purchases at the time the replacement is made or the item fully depreciated as scrap.

The depreciation is also adjusted (indexed) for inflation or deflation, as is applicable.

The rate of apportion of the depreciation of an asset over its entire life is a declining exponential, or an easily approximated equivalent for each tax year.

9. The second category of investment-incentive is the investment tax credit.

This is an amount deducted directly from the taxpayer’s national income tax liability as otherwise calculated. It is awarded to taxpayers for stipulated categories of agricultural and industrial investments or other special categories of agricultural or business expenditure.

In the first case, for a capital-investment purchase, the taxpayer’s credit for depreciation, amortization, or depletion.

In the second case, it is awarded for expenditures other than income-producing investments, which are selected to be awarded bonuses because they are in the national interest.

In a typical case, investment tax-credit bonuses may be awarded to taxpayers’ expenditure for specified scientific and related developmental expenditures. In addition to deducting these expenditures as an ordinary business expense to determine taxable income, the taxpayer is credited with a tax credit bonus, which amount is a percentage of a designated category of that expense.

10. The third category of investment-incentive is a saver’s tax credit duplication.

This may appear slightly complicated at first, because it is an unusual procedure historically. It is most desirable, because of the powerful incentive it provides either to invest or save among all ranges of household-income brackets.

All farms and industries earning either of the two previously designated income tax exemptions make the following calculations.

They calculate the total amount of reduction of tax payment each year from combined, depreciation, amortization, depletion, and investment tax credits.

They total the combined paid-in equity plus unpaid loan balances represented by the taxpaying entity, the agricultural or industrial producer.

They apportion the amount of the total tax credit to each lira of combined paid-in equity plus unpaid loan balances. They issue a duplicate set of statements of the duplicate tax credit earned by each investor of paid-in equity and each lender according to unpaid balance of loans. This tax credit shall be applied to the tax liability of each investor of paid-in capital and to each lender, accordingly.

Banks receive their duplicate tax credits to the account of the bank, and should distribute half of that total tax credit so earned by the bank as tax-exempt dividends to their depositors, in proportion to average saving-deposit balances over the year.

If persons, farms, and firms concentrate investment of savings and reinvestment of profits in profitable investments in categories preferred by government tax incentive policies, they become, relatively speaking, the richest persons of the nation in respect of after-tax income.

Few citizens will apply the entirety of their potentially investible portions of income to highest-gain tax-benefit pathways of direct investment. Part of the potentially investible portions of income of everyone should be in the form of savings deposits. For some, all the potential savings of the household should be invested in the form of bank savings deposits. Since secure bank savings incur significantly less risk than equity paid in as investment in productive capital, the tax benefit to the risk-free savings deposit is correspondingly less.

In addition, we foster growing strength for the private banks of all varieties, guiding those banks, with aid of the bank’s share of the tax benefits available, to develop the bank’s policy-outlook and executive skills in directions of competence corresponding more perfectly to both the national interest and the tax advantages provided depositors.

Meanwhile, those firms and citizens that prefer to perpetuate the investment and spending habits of Babylon, of Sodom and Gomorrah, remain free to do so, within the limits of the criminal code, and the constraints of both credit and tax policies.

The citizen in entrepreneurial or professional ranges of income who spends some thousands of (new) lira of his direct income foolishly, or who invests that in enterprises of a less desirable variety or management policies, will weep tears of regret over his folly—while reading the tax statement prepared for him by his accountants.

His neighbor, which is to say a person in a comparable income bracket, spends his salary more frugally, and saves more prudently. If this neighbor invests successfully in technologically progressive, capital-intensive productive enterprises, the neighbor receives tax-exempt income in return for making such an investment. Or, that neighbor receives a more modest, but significant recompense with tax-exempt income for simply increasing the household’s or firm’s savings deposits.

Of the two neighbors so compared, over a few years, the first is, progressively, relatively poorer than the second. Justice has been done. As might be said as a malediction upon the imprudent libertine in Nassau County, New York: “May crabgrass flourish on your lawn!”

There is an implicit incomes policy in such an arrangement. Before continuing to the next topical area of our policy analysis, we clarify the relationship of such an incomes policy to proper actions of government.

Middle: Portrait by an unknown artist, 1505; right: Portrait by Claude Lefebvre, 1666

Left to right: King Louis XI of France; King Henry VII of England; Jean-Baptist Colbert.

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Why We Developed Capitalism

We republicans of the same school as Raphael created modern industrial capitalism over the course of the fifteenth and sixteenth centuries. The principles were shaped in Renaissance Italy, first successfully brought to fruition, in establishing the first modern nation-state republic, under France’s Louis XI, and later brought into play as the Erasmian-led political revolution under Tudor Henry VII in England. The rudiments were also fostered by Agricola’s heirs in the formerly rich industrial development of regions of Bavaria which have devolved to a bucolic notoriety.

From the outset, the state directed and otherwise controlled the national economy. This was correct then, and has always been the feature of any capitalist economy whose success was secured by means other than the sort of looting of others we associate with the British colonialist, semi-feudalist “model” of political economy.

“Free trade” does not and could not exist as Adam Smith and charlatans such as Friedman and von Hayek falsely portray such policy as one of “freedom.” The essential point of British “free trade” policy is to keep agriculture and industry poor relative to rentier interest, and also to prohibit the state from revolting against enslavement of both the state and national commerce by a rentier interest which has insolently placed itself in power above sovereign nations.

True freedom in a capitalist republic occurs in a modern capitalist state on the historical premises we, of the same school as Raphael, developed capitalism, in opposition to Genoa, Venice, and the British oligarchy, into the period of the establishment of the United States as the first successful consolidation of the form of capitalist constitutional republic fulfilling the conceptions of Louis XI, Colbert, and Leibniz.

What the state cannot do is to substitute itself for the potential creative-mental powers of individual citizens. The state must foster the development and fruitful exercise of such powers, through technologically directed compulsory, free public education, and other relevant matters of social and economic public policy.

What the state cannot do, it must not permit itself to be led by folly in attempting.

The key to the private-ownership institutions of republican forms of industrial capitalism is a properly industrialist view of the patent.

Under republican policy, the patent, a power and creation of the state, is a privilege extended to the inventor of useful inventions and also to the collaborators of that inventor for specified conditions and period of time. This privilege takes the form of a right which may be invaded by no agency but the state itself: a right in ownership of means of production. The inventor and his collaborators are granted the right, respecting all competitors, to produce and conduct profitable commerce in articles based on the advantages of that patent.

The combination of the inventor and competent management of the firm effects the happy condition of executive capability which Clausewitz associates with Entschlossenheit. This combination combines discovery of technological advantages to society, with the entrepreneurial capacity to realize those discoveries in the form of the fruitful practice society requires for its benefit.

All law of the capitalist republic pertaining to matters of commerce, and to related matters of property-right in means of production and distribution, is properly interpreted from the standpoint of reference we have just summarily identified.

Society—the republic—through its instrument of self-government, the state, alienates to specified persons a power which originates in society as a whole, and whose realization society mediates through the state. This alienation of state power, extended as a privilege by the state, becomes the right of the patent-holder relative to all others.

The exercise of this privilege extended to become a relative right, is constrained by public policy concerning minimum wages and working conditions of productive labor, and otherwise by the combined effects of tariffs, credit, banking, and tax policies of the state.

However, although the case of the single, simple industrial-capitalist patent illustrates the underlying principle involved, that simple case contains the germ of a more elaborated, coherent area of public policy.

An industrial firm does not exist, properly speaking, on the basis of executive and productive capabilities associated with merely a single patent. Effective industrial management is subsumed by a process of continuing innovations. This process expresses the fruits of science, technology, and general culture of the nation continually brought to bear on the development of the productive powers mediated through the industrial firm.

So, the principle of the patent is properly extended indefinitely to such a firm as a whole.

This point is generalized for better comprehension by comparing the industrial firm’s case with that of property-right of farmers.

USDA/Joel McNee

A wheel-line irrigation system in Idaho.

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It is not in the interest of the state (society as represented by the state) that a farm based on backward agricultural practices should enjoy the same degree of permanence of property-right as the farm which develops the fertility of the soil and the productive powers of agricultural production more generally. It is desirable that the economic environment be shaped in such a way as to drive the former into extinction, to the advantage of farmers of the latter category.

Examining a concrete example, agriculture in the United States, we have massive empirical proof of performance in support of the industrial-capitalist principles we have identified up to this point.

It should not be surprising that the most successful mode of agriculture in the United States, from all considerations of vital national interest, is that associated with technologically progressive farmer-owned farms. This independent farmer is an innovative technologist, a farmer with Entschlossenheit. He is inventor, highly-skilled laborer, entrepreneur, and a production and marketing executive with qualities sometimes converging manifestly upon those of a successful field marshal. Such employees cannot be hired, except from among the ranks of farmers whose special capabilities have been matured in circumstances of technologically progressive independent agriculture.

This appears to be contradicted by some situations in emerging nations. A brief examination of the most common reasons for such apparent contradictions reinforces the point just previously made.

USDA/Tim McCabe

A Natural Resources Conservation Service technician adjusts an irrigation flow-rate meter.

Chad Douglas

A modern grain harvesting combine fitted with a 12-row corn header.

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U.S. agriculture (in particular) is an organic body of technology. Within agricultural production and development as such, this technology is represented by the unity of science and technology of practice mediated in exemplary fashion by normal functioning of the Agricultural Extension Service and institutions performing similar functions. That unifies agronomists, agricultural education, and research institutions, with (especially) the technologically innovative individual farmer. This aspect of agriculture is intersected massively by research, development, and production of industries which supply agriculture. Agriculture is the largest single category of consumer of industrial output.

In this way, U.S. agriculture represents a level of agricultural technology, far above the level of technology represented by “peasant agriculture” in emerging nations. The gap between the first and latter levels of technology is so large that the introduction of U.S. levels of technology, already perfected, to emerging nations’ agriculture, results in quantum leaps upward in output per hectare and per capita.

If the peasants of those nations were developed along lines of independent U.S. agricultural producers, the large “family-owned” farm in such nations would come to be significantly more productive than the alternative of the absentee-owned farm employing the same range of technology.

So, the relative success of certain industrial-agricultural absentee-owned enterprises in emerging nations is not truly an exception to the principles adducible from U.S. agriculture. Rather, it is the development of agricultural technology extended to emerging nations, out of the development of independent high-technology agriculture in OECD nations, which makes the apparent contradiction possible.

Therefore, the extension, and tariff-protection of the indefinite patent of ownership for the independent, technologically progressive farmer, is public policy of properly informed capitalist republics.

In all matters bearing on relationships between the state and technologically progressive forms of private ownership, the principles underlying the development of this form of the patent must not be forgotten. “Existence is not a predicate.” That principle, otherwise applicable to the highest levels of scientific discovery-practice, does not lose its proper force of applicability as we descend the scale of importance to principles of public commercial policy. “Existence” in this instance of application is the underlying purpose behind the development of the industrial-capitalist patent. The traditions of secondary public policy developed around the established existence of that form of patent pertain to the mere “predicates” of that “existence.”

The application of “case law” to commercial matters becomes a properly unconstitutional obscenity whenever interpretation of such “case law” is stretched to adduce judgments conflicting with those underlying and determining principles directly associated with the principles of “existence” of this form of the patent.

The principles underlying this patent apply to incomes-policies of the contemporary state. Essentially, the essential purpose of the patent must be served: the purpose of the patent is to give expression of liberty to that individual creative-mental power which the state as such cannot and does not efficiently contain. Stated otherwise: the function of the state is to order the “environment” for the individual member of society such that the creative-mental potentialities of the individual flourish to the advantage of society as a whole.

Therefore, the state must not attempt to regulate innovations in practice of productive firms and their commerce in detail, since, in such a bureaucratic practice, the state violates the self-interest which society as a whole expresses through the medium of the patent.

The establishment of minimum wages and minimum standards of working conditions does not violate that principle. It is an abomination that one firm should seek advantage over others by any other means than better technology and better management. That constitutes a prima facie violation of the inalterable principles and conditions of the patent. The degradation and other injury to households of productive labor represented by exploitatively low wages and poor working conditions are such abominations, injuring not only the victimized households in particular, but generating a lowering of the cultural standards of household life which is a major injury to society as a whole.

It is also required of the state, by the same principles, that the state protect technologically progressive, competently managed agriculture and industry by tariff policies. No consideration must be permitted to force agricultural prices paid to farmers or incomes of industrial firms down to levels, at which exploitative wages and abusive working conditions become the only source of profits for technologically progressive, competently managed farms and industries.

In between, except for enterprises properly managed by the state, there should be no intervention by the state into the details of operation of the patent.

This has no relationship to the wicked doctrine of “free trade” advanced by such charlatans as Adam Smith and Milton Friedman.

The state, while avoiding bureaucratic intrusions in matters of detail, is obliged to shape the environment of business practices to encourage business to choose options which coincide in direction with the determinable general national economic interest.

The promotion of technologically progressive, capital-intensive productive investment, through tariff, credit, and taxation policies, is a very efficient shaping of incomes policy. Such a shaping of policy impels employers to employ relatively more skilled operatives, engineers, technicians. This requires improved cultural standards of households, and promotion of skills-development among employees. This means that rises in real wages tend to follow advances in technology, rises in real-wage levels of relatively more skilled labor which are readily dispersable, because of the gains in productivity associated with capital-intensive forms of technological progress.

The result is a lifting of the incomes of the population through a process of advancement in mean skill levels of employment.

State, protectionist tariff policies, combined with credit and taxation policies, shape the environment such that earned increases in skills levels of employment are payable in fact by such employers.

The state properly does determine recommended incomes policies as matters of the scientific-research and public-information functions of the state. The state applies such developed recommendations to its own employment practices. So, the state provides leadership by proper methods of direction. Its leadership action centers around informing employers of where those employers’ best interests lie in respect of a truly enlightened self-interest, respecting incomes policies.

USDA/Lance Cheung

A Computer Numerical Control machine operator inspects a high-pressure aluminum die-casting at Port City Casting Corp. in Muskegon, Michigan.

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This aids the proper relationship between trade unions and employers. The private relationship between the employers and trade unions helps to minimize the scope of required actions by the state. National trade unions provide the necessary social influence for promoting coherent incomes policies among employers. The state, by providing scientifically premised public information showing the reasons for preferring certain incomes policies, creates a climate of public belief in this matter among employers, employees and others, aiding in channeling trade-union negotiations into rational composition of economic and directly related issues.

The basis for incomes policies of the state is the same principle underlying the existence of the patent.

Irrational anarcho-syndicalists and bestial employers share the infantile delusion that productive labor is mere animal muscle deployed according to detailed instructions of management. Show me a management which practices such a policy as a matter of philosophy and I have shown you, in return, an incompetent management.

It is the development of the mind of the industrial operative, as reflected in his or her manifest or potential levels of productive skill, which is the wellspring of the productive powers of labor. It is that mind’s powers which enables labor to advance its mode of production from lower to higher levels of technology. It is that advancement, not the mere output-ratios associated with a fixed, routine mode of productive activity, which is the productive power of labor. It is that productive power of labor which is the only source of all of the wealth of society.

Consequently, we rightly assess a life devoted to fixed, routine levels of practice as expressing a tendency to degrade man to beast-like conditions. True, an industrial operative may toil at repetitive, routinized forms of labor year after year, to the effect that his or her nation may develop the economic potential for technological advances above such brutalizing routine. That industrial operative works, essentially, as a patriotic citizen—making a painful sacrifice of his or her life for the sake of the nation and its future generations. It is a submission to brutal circumstances which is to be honored as we properly honor sacrifice in war. While honoring such sacrifice, we must not obscure in the least the ugly truth of the arrangement. Routinized labor over large parts of a lifetime brutalizes the operative.

The most fundamental of all desirable working conditions of labor is progressive change from routine in the application and development of more advanced skills, always emphasizing, increasingly, the mental potentialities the operative can bring potentially to refinements and problem-solving in the technology of production.

It is such technological progress, and only such a process, which “humanizes” productive employment. All contrary or alternative views on this matter are dangerous frauds.

It is not only the inventor and his entrepreneurial collaborators whose mental-creative powers advance the condition of society. The potentials of such inventors and entrepreneurs depend upon the creative-mental potentialities of the productive operative, the employed scientist, engineer, technician, and ingenious production executive. It is the individual mental-creative potentials of all citizens which must be fostered for fruitful expression.

That is the principle which subsumes the patent’s existence. That higher principle is, correspondingly, the essential limitation, conditionality, to be imposed upon the continued holding of the patent’s privileges.

The industrial-capitalist republic is not premised on the self-evidence of individual property-right. The existence of individual property-right is premised, defined, and circumscribed, in terms of the interests of the republic which have prescribed the development of such individual property-right.

Credit & Taxation of Real Estate

11. All policies respecting real estate must be premised on rigorous projection of the principled antagonism between ground-rent and profits of produced improvements.

12. In practice, we dare not collapse presently the fictitious, but institutionalized valuations associated with the capitalization of ground-rent. We must, however, starve into extinction all future growth of ground-rent capitalization, by methods of credit and taxation policies of the state and state-regulated banking system.

These two principles are the crux of the success or failure of all efforts to bring a durable economic recovery out of the present slide toward a new dark age.

The essential cause of the present spiral of inflationary monetary crises is the shift of massive flows of nominal income and fiat-credit away from productive investment, into what is presently a John Law-type “bubble” of pyramided speculation in capital gains income from appreciations in ground-rent and capitalized ground-rent.

In many OECD and other countries, each small householder is drawn by individual desire for unearned riches into supporting greedily this form of collective insanity. In the myth-ridden United States, for example, professors of economics solemnly recited to their credulous students frightening accounts of the lemming-like stock-market hysteria which seized the United States during the late 1920s. The canting professor continued: Happily, my children, wise men of our nation have constructed rules and institutions which ensure that nothing like that can ever occur again. Meanwhile, outside that classroom, every citizen with the price of a down-payment for a mortgaged purchase was participating in the biggest and most lunatic, international gambling hysteria in all human history!

The crucial empirical point of reference for making the essential distinction between earned income and ground-rent is the development of agriculture.

Left picture: portrait by John Trumbull, 1806

Two great proponents of the American System of Political Economy, Treasury Secretary Alexander Hamilton (left) and Friedrich List.

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The classical examination of this point is the 1791 Report On The Subject of Manufactures to the U.S. Congress by Treasury Secretary Alexander Hamilton.

This document, not the writings of Karl Marx, is the first prominent statement of the principle that all wealth is derived from development of the productive powers of labor (“labor power”). Marx, in turn, learned the Hamiltonian notion of “labor power” from Friedrich List. Since Marx was induced by Apostles’ agent Friedrich Engels to commit himself publicly to a fraudulent attack on List, Engels, who knew and opposed List’s economics, was positioned to offer the lying report later, that it was Karl Marx who discovered the notion of “labor power!”

This same document is the first place in which the Hamiltonian notion of development of the productive powers of labor was rigorously demonstrated empirically, and employed, with aid of the crucial empirical evidence of the development of American agriculture up to 1790, to refute absolutely from this vantage-point the so-called French physiocratic doctrine, which latter had been imported to eighteenth-century France by British agents and agents-of-influence.

The general principle underlying the American System was not original to Hamilton.

Workshop of Agnolo Bronzino

Cosimo de Medici

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The conception was stated as the basis for proposed state economic strategy of the Paleologues by the great Platonist Plethon, the collaborator of the great Cosimo de Medici. The notion of technological progress as the basis for increasing national wealth had previously produced the great technological advances of the Hohenstaufen period of European history, permitting the population of early thirteenth-century France to enjoy a higher level of technology than was recovered fully and generally until the late eighteenth century, and thus to sustain a population not equaled until the eighteenth century. The immediate source of Hamilton’s scientific accomplishments in this matter was the mediated influence of the combined work of Jean-Baptiste Colbert and Gottfried Leibniz. It was Leibniz who first generalized the underlying principles of political economy.

Putting aside the indicated element of fraud in Karl Marx’s published work, it was otherwise the central formal achievement of Marx’s work in political economy to attack both Adam Smith and David Ricardo, as well as Malthus (and, implicitly as well as explicitly, Darwin), from the vantage-point of Marx’s own inadequate attack on the bestial fallacies of the physiocratic doctrine. Otherwise, Marx is superior to Ricardo, but inferior on essential points respecting analysis of capitalist development to Hamilton and List.

There is little inherent “fertility” in natural resources, and none beyond the proverbial “hunting and gathering” stage of human bestiality. The productivity of U.S. agriculture in 1790, the year of the first U.S. Census, was the fruit of the importation of the most advanced, pre-existing European technologies, to transform cruelly unfruitful wilderness into fertile, improved agricultural land.

Accordingly, the fertility of “natural real estate” in and of itself is zero with respect of the levels of productivity required to sustain modern potential levels of relative population-density.

Hence, the true economic value of all ground-rent (rent for the possession of land in and of itself) is zero, or less.

Hence, all money-capital poured into capitalization of ground-rent has the same economic merit as investment in prostitution, gambling, and illegal drug distribution. It is a pure waste, which can exact profit (rent) from society only parasitically.

Relative to the economy, the monetary consequences of investment in ground-rent capitalization are inherently depressive. If money supply is augmented in the effort to compensate for the diversion of growing portions of money-capital from the production-distribution cycle into ground-rent capitalization, the results consequent upon this are subsumed by an accelerating spiral of inflation.

The true value of real estate is the value of its manufactured improvements, depreciated in the same exact manner as investments in newly manufactured machinery for industrial production. This is true for agricultural improvements and their maintenance, as it is also for rental or other housing or industrial or commercial real estate improvements.

The two policy-principles set forth above in respect to real estate policies of the state subsume the following leading measures of state and banking-system policy.

For purposes of state and banking-system policy, the following supplementary policy-principles apply.

13. The ground-rent portion of real estate income is to be fully exposed, with no exemption on its own account, to the highest rate of income taxation.

It is made, thereby, the least desirable form of future money-capital investment.

The ground-rent portion of real estate income is calculated by deducting the earned portion of real estate total income from the total.

The calculation of the earned portion of real estate income is summarily this. The depreciated value of manufactured improvements of real estate is calculated, in the same manner as for purchase and maintenance of original purchase of machinery for industrial production. Real estate operating costs are added to depreciation, amortization, and depletion so determined. The average rate of profit on newly constructed real estate is applied to the cost-basis. The total so obtained is the earned portion of real estate income for national tax-accounting and credit policy.

There are readily anticipated kinds of technical objections to the outlined calculation. In response to the relatively more competent arguments posed in that way, the following statement of methodological principle constitutes adequate rebuttal.

In economic science, small margins of unavoidable error in respect to the scalar estimation of short-term money-values are functionally ephemeral. The proper focus is defined by the same approach exhibited earlier in this chapter, respecting “feedback control” principles functionally inherent in the specifications of national banking credit expansion on capital account. We require policies which, in effect, cause the social processes of economy to employ “negative feedback control” analog-varieties of self-adjustment, to maintain tendencies for convergence upon whatever right values might be calculated.

It is the implicit “physical geometry” of the process, not a momentary calculation of local estimates of value, which is decisive.

Moreover, to sacrifice the interests located in the process as a whole, for sake of considerations peculiar to a localized determination of price, is itself an elementary fallacy of composition.

The assessment of the calculations subsumed by policies is restricted, essentially, to the determination of whether or not the direction of decision making implicit in the calculation leads society cumulatively, over the span of “long-wave” phenomena, to the results specified in the adopted policy.

In other words, the proper method is directly opposite to the cited charlatan doctrine of method, proposed by Milton Friedman.

14. With respect to income associated with presently established levels of capitalization of ground-rent, credit and taxation policies must define the gradient of “investment choices” so that such income is forced, by relative punitive measures, to seek investments at the opposing extreme of after-tax investment-income opportunities.

15. However, real estate property-valuation should be applied to the combined market valuation of combined ground-rent capitalization and depreciated improvements.

The intended effect of such combined policy measures is to “dry out” the market for those sales of real estate which are premised upon speculations in appreciations of ground-rent. Real estate holdings will continue to derive present levels of nominal income from such ground-rent holdings, but will be able to retain relatively more competitive after-tax portions of that income only on condition that that income is invested in either real estate improvements or productive enterprises.

If the real estate holder resists the opportunities afforded to him within sheltered portions of the investment spectrum, the state and local governments will find appropriate, productive uses of that portion of his total income the real estate holder refuses so stubbornly to invest prudently.

In other words, the solution to the problem of ensuring the durability of the “heavy lira,” is to put Italy to work productively, to make Italy a new “Ruhr” of Europe’s southern flank.

The Process of Transformation

The combined credit reforms, banking reforms, and tax reforms outlined ensure that Italy is directed into durable growth. The practical questions posed by those outlined reforms are chiefly two.

First, there is the important matter of Italy’s relationship to the European Community, especially in matters of tariff and tax policies. It would be in the immediate, urgent self-interest of the EC nations to bring the community’s credit and taxation policies into congruence with those outlined here. The benefits to the community, so urgently needed, and so much favored by the proposed reforms, is the proper opportunity for emergency, provisional modification of EC agreements: To accommodate, at a minimum, the needed actions of reform immediately to be taken in Italy itself.

It is to be emphasized that there is potentially the broadest social base of support for such reforms in the rationally determined specific self-interests of trade unionists, industrialists, farmers, unemployed operatives, industrial bankers, and savings institutions, not only in Italy itself, but throughout Europe—and the United States as well. The only significant expressed opposition to such Italian reforms would be of an irrational variety, chiefly ideologically motivated attachment to cherished, counterproductive, mythological illusions.

Let us, for example, challenge Italy’s leading trade-union association, the CGIL, on this point. Do you not wish an adjustment of tax-burdens, increased skilled employment, a curb on the fungus of ground-rent-impelled inflation? Let us also challenge similarly the CISL, the Christian Democratic trade union association.

We could continue so to other constituency groups. The reader is to think out for himself or herself the rest along these same lines.

The second leading practical matter is already implied by our attention to implications of real estate taxation. There is not, properly a shortage of lira money-capital at this moment.

The subsumed practical question centers around estimates of how much of outstanding old lira will the “black economy” prefer to destroy, rather than expose the scale of and conduits used for tax-avoidance or outright tax-evasion?

The period preceding the conversion of currency will be most entertaining on this and related account.

The holders of “black lire” will be impelled to exchange these quickly for other currencies, but the prospective buyers may first wish to consult various experts, including attorneys, on the matter of conditions of registration for exchange of old lire for new.

The most obvious alternative to buying other currencies with such “old lire” is converting the holdings of black lira balances into resalable assets. The obvious feature of such purchases is to pay a large portion of the purchase price “under the table,” and to show the nominal, much lower price of the purchase of the asset “above the table.” Here, too, the auspices of caveat emptor apply to those who purchase old lire with resalable assets in that way.

In general, a properly managed currency reform drives the currency “black market” prices way below the nominal, legal prices.

For decades to come, books written on the subject of the rush to unload “black balances” of old lire will continue to be popular fictional themes, topics of university dissertations, the subject of solemn and frivolous books published on the event, and a recurring touch of naturalism inserted into the scenarios of roman-à-clef publications.

Italy as a whole has suffered already too much from that “submerged economy.” At the very least, the “black lira” people should repay Italy in part with entertainment.

It makes no difference whether the “black lira” people choose either to eat, or burn, or to pay back taxes due on the old lire. If they burn or eat the “black” old lire, the national bank will merely provide sufficient currency notes, on capital account, to ensure that no money-capital shortage develops.

The taxable real estate income, especially its ground-rent component, will otherwise provide a massive source of initial private money-capital for productive, employment-generating investment. In one way or another: either as private investment into tax-sheltered forms of private productive investment, or as a generously taxed source of capital funds for both the national and local governments. The ground-rent portion of this sector of income will be taxed at relatively higher rates in any case.

Correlation with the Economic Process

We cannot determine rigorously the longer-term consequences of the monetary and related forms without examining the effects of the new monetary ordering upon the underlying economic process.

There is no doubt, among persons who are both literate and sane in respect to the phenomena of monetary experience, that the reforms we have described in outline will succeed magnificently in comparison with the present ordering of Italy’s affairs. That is as to compare prosperity with the condition of a hungry orphan vagabond-child of the Mezzogiorno. How will the future compare with some standard of genuine prosperity?

Take, for example, the effects of the package of reforms on revenues and programs of the national government of Italy. That question will be associated with the more prominent initial objections offered from among most political parties!

To answer this question competently, we must first divide the budget of the Italian national government into categorical subsectors. The principal distinction to be made is to separate the category of governmental expenses caused by poverty and economic stagnation from other governmental expenditures. We must account for the effects on this segment of expenditures by progressive reductions in poverty. In that and other ways, we must determine the patterns of change in governmental budgets which will correlate with the results of the monetary and related reforms.

For example, tax relief for households in the lower-income range, combined with improved tax revenues for local government will reduce poverty.

We can also project increased employment per average 1,000,000 new lire invested in productive capacity.

Near to the conclusion of that list of considerations, we balance the increased governmental revenues of the program with the decreases caused by tax incentives, and reduction of burdens on lower-income portions of household income.

We add to this the question: In what categories can the benefits of a governmental operating-budget expenditure be accomplished equally or better by issue of national banking credit on capital account? This applies to the local governmental sector, to the state sector of the productive economy, and to the private sector. We should seek to reduce governmental expenditure to basic, traditional categories of services.

On condition that we have first established the economic linear equations needed for “econometric” projections in terms of the previously outlined principles of corrected national income accounting, the computer calculation of good approximations of responses to such questions can be, and should be made. The effort is large-scale, of course, but represents no qualitative problem.

Yet, even before that computer projection has been made for the next several years, we know on other ground why the reforms will succeed.

These grounds are located in the domain of “nonlinear” transformations for a developing economy.

The shift in outlook the reader must accomplish now is the same we discussed in the context of the Riemann-wave illustration.

Put aside ordinary accounting procedures. Let us move the focus of our perception to the process of transformations as a whole.

Let us focus on the national income accounting ratios stipulated earlier in this report. If S′/(C+V) not only rises, but rises more rapidly than d/(C+V), then we have solved in advance all the most essential questions which might otherwise be posed to accounting procedures. If the rate of S′/(C+V) is rising, and S′ is being realized in terms of allocations proportioned according to the requirement that S′/(C+V) must grow more rapidly than d/(C+V), the ratio S′/(C+V) corresponds in first approximation to the rate of growth of the economy.

In other words, once one has determined that a piece of wire is ten meters long, it is not necessary to verify this fact by counting off the same distance in individually counted angstrom units. If one has determined the relative magnitudes of variable quantities to one another, it is unnecessary to verify this by adding up the individual components of each magnitude to the purpose of determining their relative scales.

If we can, using the methods of physical geometry appropriate to study of “nonlinear” transformations in economic processes, predetermine the direction of change of relative values of categorical components of national income accounting ratios, one has proven all that can be proven respecting the success of an economic and related monetary policy.

There are two critical thermo-hydrodynamic features of an economic process. These are, first, the ratio, S′/(C+V), and the capital intensity ratio, C/V, or C/(C+V). These ratios are properly formulated in terms of the negentropic function which combines the thermodynamic and social-productive parameters into a phase-spatial function. The subsumed function, correlating the parameters C/V and S′/(C+V), each stated in those phase-spatial terms, is the critical-path function on which analysis must focus.

The correlation of C/V with S′/(C+V), as statements of thermohydrodynamic potential, subsumes the qualitative changes in state, which, in turn, subsume the changing characteristic ratios of national economic progress.

CC/BMW

A high-precision and highly automated BMW automobile plant in Leipzig, Germany.

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The increase of C/V, so defined, does correlate with increasing productivity. This subsumes a required rise in the average thermodynamic value of V, but with a rise in C/V and S′/(C+V) accompanying that. The necessary relationships subsumed determine that the required value for d/(C+V) will be less than the full-utilization value for S′/(C+V).

Those functional relationships are not speculative. They are relationships conclusively demonstrated by the empirical evidence available from all of human history.

The problem of maintaining those functions in the desired developmental ordering is, narrowly, a question of economic policy, and therefore also a question of the appropriateness of credit, banking, tax, and tariff policies for the economic policy. The additional problem is maintaining and developing the required technological environment for productive economic investment.

The technological environment is represented by several aspects. First, it depends upon the rate of basic scientific discovery. Second, that rate of discovery is nourished by the interconnection between scientific inquiry into basic principles and subsumed development of improved productive and related technologies. Third, the technological potential of the labor force. Fourth, a correlated rise in the energy flux density and free-energy ratios of basic sources of energy used for production. Today, that rise in the energy flux density means a leading emphasis on development and deployment of fission, hybrid and fusion energy technologies.

Of course, a good portion of that will be fixed capital investment of approximately a quarter-century life, but nonetheless, it indicates the need for a vast and rapid expansion of both the scale and productivity of national economies over the coming two decades and longer.

The function of science during this period and beyond will be that of both developing plasma and related technologies, and of developing new productive technologies coherent with the transition into the age of the plasma physics revolution in energy production and energy application technologies.

The requirements of these programs mean that we can no longer tolerate the use of public educational funds for training parasites such as sociologists and incompetent teachers. Except for a radically increased emphasis on return to classical traditions in literature, music, and visual arts, priorities for education throughout primary, secondary, and advanced institutions must aim at producing the maximum proportion of qualified plasma physics doctorates, engineers, technicians, skilled labor oriented to the technologies of the new age, and biologists, agronomists, and medical professionals.

Without accelerated deployment of nuclear energy technologies, to the worldwide equivalent of between 5,000 and 7,000 gigawatts of electrical output equivalent (plus “byproduct,” process-heat energy applications) by approximately the year 2,000 A.D., there must be an ecological crisis of world economy. If ultra-high energy flux density fusion technologies (ultra-high relative to fission energy processes today) are hot realized by early during the next century, then a second ecological crisis barrier will crush much of the world.

Therefore, those who oppose nuclear energy are, whether wittingly or not, the greatest mass murderers in all human history.

The projected global nuclear energy goals for the year 2,000 A.D. represent a capital investment equivalent to over 5 trillion 1979 U.S. dollars. This means that a massive expansion in advanced steel capacity, and other vendors of nuclear plant materials must occur. If we add the growing requirement for high-technology agricultural development worldwide, we are projecting about the year 2,000 A.D. perhaps in the order of 50 percent of world industrial output dedicated to development of these two sectors alone.

The included emphasis on classical literature, music, and visual arts is not a “concession” to liberal arts at the expense of science. For reasons we have elaborated earlier in this report, the method associated with Shakespeare, Schiller, Bach, Mozart, Beethoven, is a continuation and development of the methods of great Neoplatonics of the Augustinian current such as Dante Alighieri. The greatest literature and painting of the Italian Golden Renaissance, through the school of Raphael, is based on a method which shares with true science the principle of the hypothesis of the higher hypothesis. It is such classical literature, music, and visual arts which develop in the student the necessary integration of his or her mental life needed to discover and assimilate great new advances in perfecting our comprehension of the lawful ordering of the universe.

White House

Pope Paul VI receives President John F. Kennedy at the Vatican on July 2, 1963.

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The single child developed to maturity is the measure of all that each nation accomplishes or fails to accomplish in each ephemeral period of mortal life of each generation. To understand that in all its historical implications, within the context of Christendom’s great work, is to locate the proper basis for comprehending everything, including the management of economic and monetary policy.

The Second Best Form of Republic

Our emphasis on incentives designed for purgatorians appears, and does contrast with this writer’s own moral outlook. Unfortunately, the shepherd must lead the sheep to safety in sheep’s terms. Yet, we wish that our fellow citizens would cease to degrade themselves into purgatorian political sheep, into “silver souls” of Socrates’ “Phoenician lies” in the Politeia.

Yet, as long as the moral citizens of republics cling so obsessively to the second best in morality, we can achieve in practice nothing better than the second-best form of democratic republic. So, to devise workable monetary and related reforms, it is necessary for “Paradise” to put its hands into the realm of “Purgatory.”

With that, I glance over my shoulder to the beloved memory of Paul VI, and say to him: I have given this task before me of my best for today.

A Real Measure of

Physical Profit

Lyndon LaRouche presents here a rigorous metric for defining economic profit on a national, or international basis.

The categorical social distinctions among distinct applications of tangible-product output are chiefly as follows:

V — Consumption of tangible-product output by households of the productive portion of the labor force.

C — Consumption of tangible-product output as capital consumed in the productive process.

S — Gross Profit, after deducting (C+V) from total tangible-product output.

d — “Overhead” expenses to be deducted from S.

S′ — Net Operating Profit (S–d = S′).

These data define the following key linear relationships:

S/(C+V) — Rate of Gross Profit.

S′/(C+V) — Rate of (Net) Profit.

S/V — Labor Productivity.

C/V — Capital Intensity.

d/(C+V) — Overhead Ratio, or Expense Ratio.

In this configuration of key linear ratios, the most critical value is the Rate of Profit, S′/(C+V).

S′ is the portion of total tangible product available to the * “firm” to expand production in scale, or to increase the Capital Intensity of productive capacity. Since increases in Capital Intensity, under conditions of technological progress, correlate with increases in Labor Productivity, and thus with increases in the Rate of Profit, it is a combination, of investment of S′ in both expansion in scale and in intensification of capital investment, which is the necessary pathway of investment to effect an increase in the potential rate of growth, increased values of S′/(C+V) for an expanding productively-employed labor-force segment.

The outline we have just summarized is demonstrable to the “common sense” of any skilled farmer, skilled productive operative, engineer, scientist, or industrial entrepreneur. This is more or less the case invariably in practice, unless the person has been “brainwashed” by study of the superstition which generally passes for instruction in economic principles. Unless he or she has been so “brainwashed,” adult intelligence and experience of such literate persons makes the case we have outlined more or less self-evident. [back to text]