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This article appears in the April 18, 2008 issue of Executive Intelligence Review.

How We Must Deal With
The Worst Crisis in History

by Lyndon H. LaRouche, Jr.

[PDF version of this article]

The following presentation was given to a group of diplomats in Washington, D.C., on April 10.

As most of you know aspects, at least, of the problem the world faces today, we're presently in the greatest crisis in modern history, globally. Some governments, of course, are more aware of aspects of this crisis than others, because they're involved at the wrong end of the stick, in some of these problems.

But there are two general characteristics of the situation. First of all, the entire world financial monetary system is in a hyperinflationary crisis, on a global scale, which is comparable in its dynamics, to what happened to Weimar Germany in 1923. There is no minor financial crisis in the United States. What there is, is a global crisis.

Now, to understand this more adequately, I'll make a few remarks which are longer than usual, but they're necessary in order to put this in focus, because this is an unusual situation. I think there is no comparison with what I've said before, with what I see here in the world today.

Genesis of the Crisis

What you're dealing with generally, is a crisis which started, essentially, in 1890, when Kaiser Wilhelm II fired his Chancellor, Otto von Bismarck. Now the significance of that was twofold. First of all, the victory of the United States over the British in the U.S. Civil War, had produced in Europe a recognition of the significance of the United States for the world system. The most significant thing which frightened the British, which threatened them the most, was the development of a continental railway system inside the United States, which was considered a geopolitical threat by the British Empire. Because, up until that time, in modern history and ancient history, the great power had lain not so much in land power, but in maritime power. And the British Empire, which was actually started as an empire, as a private company, in 1763—February, with the Peace of Paris—was dominating the world through a financial empire, with military features added. It's essentially a diplomatic empire.

So, when the United States developed a continental unity around the victory over the British in the U.S. Civil War, and on the unity of the United States through the development of a trans-national railway system, which integrated the territory of the United States, this evoked—especially after 1876—invitations and imitations of the same type in Europe.

For example, in Russia, the famous development of the Trans-Siberian Railroad, and the whole development of Russia under the great leaders of that time, was a reflection of that. The development of railways, the reforms of the German system under Bismarck in 1877 to 1880—these were all reflections of the impact of the success of the United States in defeating the British, in the British orchestration of the Civil War in the United States.

So, what prevented war from starting earlier, was Bismarck. Bismarck, as a leader of Germany, had frustrated the British, who had control over much of the German government, by negotiating simultaneously with Nicholas II of Russia, and with his own government, to prevent Russia and Germany from coming to loggerheads because of the Balkan crisis. So that the moment that Bismarck was ousted, by the orders of the Crown Prince of Britain, Edward the Prince of Wales, then the lid was off, and you had a whole series of events, including the assassination of the President of France, the Dreyfus case, the opening of the first British war against China, which was launched through Japan as an ally of Britain in 1895, and so forth. So, the entire period, from 1890 through 1945, was essentially a period of strategic conflict over so-called geopolitical issues.

The Crisis Today

Today, we have a similar kind of situation, which can be understood only by looking back to that period, because what we're seeing, as we saw with the Cold War, so-called, was a continuation of this process of geopolitical conflict, being managed by the British. And as the influence of Franklin Roosevelt declined in the United States under Truman and later on, especially after the assassination of Kennedy, then the whole world was going again, toward a new crisis. Now, since the crash of the U.S. dollar, but especially since the events of the so-called oil price crisis of the 1970s, at that point, first of all, in 1971, the U.S. dollar system was destroyed, destroyed under Nixon, by shutting down the Bretton Woods system. And that destroyed the U.S. dollar.

In the same period, the British organized the famous oil hoax of the early 1970s, and out of this, the Amsterdam, the Anglo-Dutch liberal banking institutions, set up what was called the petrodollar, and the U.S. dollar was no longer the stable currency of the world, but rather, since the oil price crisis, the control of the price of oil, and the control of the value of the U.S. dollar, lay in the hands of those who control the Amsterdam market.

So, since that time, the United States has been systematically destroyed, self-destroyed—destroyed by the policies of the Nixon Administration, in terms of foreign policy and economy, and destroyed internally, physically, under the Carter Administration, by the Trilateral Commission crowd. And we've been going down all the way through.

Then you had a period, beginning 1989, with the breakdown of the Polish crisis, and then the later breakup of the Soviet Union, which led into another period of great looting, and shift in character of politics worldwide.

We've now come to the point where the great inflationary process, which is a hyperinflationary process, is blowing out. Nothing will save the present world financial monetary system. Nothing can save it. It's doomed—it's gone. Only the creation of a new system represents a remedy.

The Edge of War

Also, we've had a new development, which is called the Lisbon Treaty organization, and the Lisbon Treaty organization now threatens the greatest threat of warfare since—probably greater than that of the 1930s—but the greatest certainly since the last century. In which, a breakdown of the world monetary and financial system, and the creation, around the Lisbon Treaty organization, of Europe up to the borders of Belarus and Russia, being under the control of a new dictatorship, if it goes through, called the Lisbon Treaty organization, under which no government of Europe, from the Atlantic to the borders of Belarus and Russia, will actually be a government. They will all be puppets of the British Empire, under this new arrangement, the new European treaty organization. If this is not stopped.

As a result of the formation of this development, combined with the beginning of the hyperinflationary blowout, which started at the end of July of this past year, we're now in a situation of the greatest threat of wars and similar crises globally in modern history. Certainly in all of modern history. We have a state of virtual warfare being organized by the British government against China. We have an instability in Pakistan, which is being advantaged. We have the tendency of China, India, and Russia, and other countries, to join together to find some form of resistance, cooperation and resistance, against the British effort.

You have an American Presidency which is a puppet.... The U.S. Congress is useless at this point, especially since the last Congressional election. A fascist group like Felix Rohatyn and George Soros, control the Democratic Party, financially, control the Speaker of the House. The U.S. Congress is impotent, both the Senate and the House of Representatives. Things happen which you would think would be impossible, up to two years ago.

We're now in a point of conflict, typified by what the British did, using their own Nazi asset, the Dalai Lama, who used to be an asset of the Nazi party, this Dalai Lama, and who remained a part of the Nazi organization even past that time. And what the British had created, with the development of the British Empire, in creating an area of conflict and management between India and China, through the Tibetan operation and the Uighur operation, is now fully on.

What is happening in Africa, where genocide—the attack on Zimbabwe is simply a part of a process of genocide, which is aimed also at South Africa, as well as other parts of the world.

We're in the worst crisis of humanity, in all modern history, now. And it's a crisis which is going toward the edge of war. And because of the conditions of warfare in modern terms today, you're talking about doomsday warfare, not orderly warfare. What we have going on in Southwest Asia, is simply typical of the whole process. The cockpit of the Iraq War, organized by the Tony Blair government, is now being used as a cockpit of war for the whole region.

So, we're in the worst crisis in history.

There Are Remedies

In my view, there are remedies. There are solutions. But you won't find much of anything presently in the U.S. government, to deal with this.

The U.S. election campaign is a crucial part of this. Probably the two focal points of the whole process are the U.S. Presidential election campaign, this year, and what is happening in terms of the Lisbon Treaty organization process. If the Lisbon Treaty organization is adopted, Europe, from the Atlantic to the borders of Belarus, will no longer be civilized. It will be simply a fascist regime, resembling in its organization, very much the Mussolini organization in Italy. That's the status of what we have.

There are forces in Europe which are resisting this. There are popular forces who are resisting it; they are significant. So far, they have not been successful. But if this treaty organization is adopted, there will not be a sovereign government between the Atlantic and Belarus, in all of Europe. None. Because there will be no parliament that has any power, no President that has any power. NATO will be integrated with this organization, and it will be a war organization, prepared to go to full-scale war, by bluff and by the kind of bluff that leads to war.

So we face today, the greatest crisis in all history of what's called modern civilization. A crisis which is comparable, in terms of its economic effects, to what happened to Europe in the middle of the Fourteenth Century, the so-called New Dark Age. And only by alertness, and by not being fooled into looking at particular issues, as if these were the problems, but seeing the issue as a whole, the global issue, only from that standpoint, can you formulate policies, and can nations group together, around policies of common interest to resist the great threat which is coming out of London, and out of those interests today.

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