Lyndon LaRouche: Issue is Still The Physical Economy, Stupid!

From Volume 3, Issue Number 45 of EIR Online, Published Nov. 9, 2004

This Week You Need To Know

Lyndon LaRouche: Issue is Still The Physical Economy, Stupid!

"The U.S. and the world are facing the greatest financial crash in history," Lyndon LaRouche declared on Nov. 3, in the wake of Democratic Presidential contender John Kerry's concession speech to President George Bush. "By the inauguration date, the economic, financial, and security crises will be hitting this country and the world, full force, and the Bush Administration is thoroughly unprepared to deal with any of it. Had John Kerry been elected President, there would have been a possibility of stopping this onrushing series of crises. Those who voted for Bush and Cheney will now bear the consequences of what they did."

On Nov. 4, Lyndon LaRouche issued the following statement on the 2004 elections for New Federalist newspaper's election coverage:

"By the standards of the present world system, the U.S.A. under the just-reelected President George W. Bush, Jr., is bankrupt. Under his fanatically stubborn policies, it is hopelessly bankrupt, and will be plunged into the relevant deep, global, chain-reaction collapse very soon. There will soon be widespread grave doubts, even among U.S. "fundamentalists," that the voice which that President has said he has been hearing, is that of the Creator.

"However, President George W. Bush might soon have very painful reasons to wish he had not been elected. The next President of the U.S. may absolutely rely on the rapid arrival of a bankrupt economy, a virtually bankrupt U.S. government, and no signs of a let-up in the tidal waves of troubles he never thought were possible, hitting Washington, D.C., from all around the world.

"As I have emphasized, repeatedly, the present world monetary-financial system is now entering a terminal phase of general, global collapse, from which it will never recover in its present form. The desperate attempt to maintain that system beyond the point of its onrushing early date of demise, would plunge the world as a whole into a new dark age of mankind for one or more generations to come. What is summarized as a proposed mode of corrective action, in a report on the role of animations in economics which will appear in the upcoming issues of EIR magazine and EIR Online, represents the only practical approach to reforming national and world economic systems which will be accepted by literate and actually sane adult men and women.

"The general remedies required for this onrushing monetary-financial catastrophe, if they were adopted, would be viewed by contemporary historians as a return to the remedies tried by President Franklin D. Roosevelt. However, as I have already indicated in the cited report, the solution will not be quite that simple. As I have warned: What threatens us immediately now is far, far worse than the world crisis of 1929-33; the level of destruction to which the economies of Europe and the Americas have been subjected, during the recent four decades, vastly exceeds, in relative degree of destructiveness, anything experienced during the period of the U.S. Herbert Hoover Presidency.

"The remedies required do include putting the present world monetary-financial system, including the U.S. Federal Reserve System, into government receivership for reorganization-in-bankruptcy. However, however necessary that action shall be, it is not to be overestimated as a solution for the problem in and of itself. Rather, receivership-in-bankruptcy-reorganization must be considered as merely the appropriate legal form of action by which our Constitutional system of government brings the mess under sufficiently efficient control to permit the taking of the other measures which will actually generate the economic recovery on which the continued existence of our form of government now depends.

"To state the required quality of crucial difference in approach as succinctly as possible:

"Instead of attempting to manage a recovery of the physical economy through reforms of the monetary-financial system, we must recreate a national monetary-financial system through what are, Constitutionally, "typically American dirigist" measures in the domain of physical-economic policies. An insightful wit who has read the preceding sections of the cited report, might say: 'Our job is to reanimate the U.S. physical economy.' If we take the right approach to that task at home, we will be providing the matrix for our role of leadership in rescuing the world."

For more on the 2004 election, see this week's InDepth, by Nancy Spannaus.

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