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This presentation appears in the March 21, 2008 issue of Executive Intelligence Review.

LaRouche: Rohatyn Crimes
`Tantamount to High Treason'

by Lyndon H. LaRouche, Jr.

Lyndon H. LaRouche, Jr., delivered this international webcast on March 12, 2008, sponsored by the LaRouche Political Action Committee, in Washington, D.C. The webcast was moderated by LaRouche's national spokeswoman, Debra Freeman. Mr. LaRouche's address was followed by a question-and-answer session. A video archive of the webcast is available. The full transcript is also available in a PDF version.

What I'm going to present today, in order to be an effective presentation of what's important to be heard, is far-ranging in some respects. And therefore, with some precalculation, I have sorted out how much I will say here, pending the question period, to a number of topics which are essential. That leaves out many things, that many people do not know, which are pertinent to these subjects. However, much of what is needed to be known, which I will not introduce here in the opening remarks, is already available in several public sources, largely through the Internet; through EIR itself, a magazine, weekly; and also through the LPAC website, particularly the research features of it, more even than the current breaking developments. And my own work in these areas, in EIR, published on the website, as longer feature articles, do cover, in depth, the principal considerations which everyone must know, in order to competently address the subject before me.

Now, to indicate the nature of this, I start by saying something I shall qualify in the course of these remarks. First of all, Felix Rohatyn is guilty of something tantamount to high treason against the United States, in the fact that he is supposedly a citizen of the United States, but is working, to my knowledge, with sources which are intent on destroying the United States. And therefore, the man is a traitor, and should be regarded as such by any honest citizen who is not absolutely stupid. But to understand that, to call him a traitor—which I'm not calling him; I say what he's doing is tantamount to treason, because the conviction of treason requires the evidence of his actually being in cahoots with somebody. I have the evidence, but it's not in the form that the ordinary citizen would immediately understand without a lot of explanation. But the man is guilty of a crime of implicit treason, by virtue of the intention, which he has expressed, and by virtue of the international forces which he's operating with, in the attempt to destroy the United States, by his program.

With that, I shall proceed.

The FDR Legacy

In 1932, particularly in March 1933, on the day that President Franklin Roosevelt first entered his office, he found nary a pencil in the office with which to begin governing. And on that day, according to the historians' records, he called the two secretaries in from the outer office, and began to dictate the outlines of action which saved the United States. What he did, was, he worked against a party, whose leadership, then, as today, was working for fascism. That is, the Democratic Party leadership, of the period 1929 to 1932, despite Roosevelt's candidacy, was actually working to install a fascist program of government, in the United States, comparable to that which was then installed in Germany. Remember, just a few days before Franklin Roosevelt was inaugurated as President of the United States, Adolf Hitler, who had been put into power in Germany by the British, had been installed as the dictator, not just the Chancellor, but the dictator of Germany, given constitutional dictatorial powers, by an overthrow of the German constitution.

And under these conditions, Roosevelt entered office, on the day he actually occupied that office, when World War II had been made inevitable! And in response to that challenge, Franklin Roosevelt led not only in the recovery of the United States, but mobilized the United States as it never had been mobilized before, to become the greatest power this planet had ever known, in economics and in military power, and through that mobilization, he saved the nation, and he saved civilization from the virtually eternal persistence of fascism from abroad, which had been set up by the British.

Before the end of the war, when Roosevelt had died, he had a successor, Harry Truman, who came in. Harry Truman was working for the other side—not as a traitor, but actually working with the ideas of Winston Churchill. President Roosevelt's intentions for the post-war period had been expressed in several forms: number 1, the Bretton Woods fixed-exchange-rate system. The world economy was destroyed, as an economy. Only the United States represented power then, real economic power, as well as military power. Therefore, Roosevelt was committed to eliminate empire, including the British Empire, especially. And he said many times to Churchill and others during the course of the war [adopting FDR's tone of voice], "Winston! When this war has ended, your imperialist system is going to end. The colonies will be freed—we will free them! We will help them develop as independent states. We will organize a United Nations Organization, as a vehicle for bringing nations back together in cooperation, according to the Treaty of Westphalia, the Westphalian principle; and in order to eliminate imperialism entirely from this planet, and to have instead a planet which is composed of sovereign nation-states, each working in sovereignty, for common aims of mankind!"

When Roosevelt died, that ended.

No Truman, or no one else could suddenly reverse the effect of Roosevelt, even though the conservative tendency inside the United States had gone back to virtual fascism. Because after the breaking of the wall in Normandy, when U.S.-led troops had broken into France, then the British knew the game was up. And they mobilized the people who had put Hitler into power initially—Americans! Like the Harriman family! Leading Democrats, who had played a part in putting Hitler into power in Germany, directly from here; and the grandfather of the present President of the United States, who was a fascist: the guy who wrote the letter to the German bank which financed the Nazi Party to come into power! Harriman, the great Democrat, another fascist! And these people came back into power, over the corpse of Franklin Roosevelt.

But they couldn't change everything! Because what Roosevelt had evoked in my generation, among the American people, was a force which was not easily overcome—despite Truman, despite everything else—not easily overcome. They counted to have a generation pass, and then they would make their big move.

And so, beginning with the inauguration of a Kennedy, a real Kennedy, who was committed to the policies of Roosevelt, and avowed this from the time he campaigned, and throughout his period in office—John F. Kennedy—the world was faced with attempted coups against the peace. Adenauer in Germany was pushed out of government, under British orders. De Gaulle was subjected to about 100 different assassination attacks, organized by Britain, and organized in part from the fascist base in Franco's Spain. Similarly, coups, deaths, everything, happened. But even in that period, there was still strength.

Shock After Shock

Then: John F. Kennedy was assassinated. And if you recall—some of you are old enough to recall this—recall the shock waves that went through the American population when John F. Kennedy was assassinated—and it wasn't by some lone gunman! There were three other guys, and others involved, to kill the President of the United States—what did it do? First of all, it shocked the people, as 9/11 shocked the American people. It was a shock effect. Without 9/11, the Bush Administration would have disintegrated in its early years. It was only 9/11 that enabled Bush to stay in power. And it was done for his benefit—not his personal benefit, but for the benefit of the Presidency which he was going to assume nominal leadership of. Hmm?

Shocks of that type, assassinations of Presidents. The shock of killing of Bobby Kennedy was also crucial, like the killing of Martin Luther King was also crucial, in shaping the cowardice which took over our population, during the generation of the so-called Baby Boomers. This did a great deal to craft the attitudes of the Baby Boomers, why they're so impotent and useless today. They have never recovered from this effect of their young adulthood and late childhood.

And so it was with Kennedy. The killing of John F. Kennedy made possible the Vietnam War, which would never have happened, had he not been killed. He would have stopped it. He had the support and the advice of Douglas MacArthur, who was still alive then. He had the support and advice of Dwight Eisenhower, who was still very much alive then. It wouldn't have happened. And the Vietnam War was a fraud! Just like the fraud which Tony Blair of Britain foisted on the United States, the Iraq War, the same kind of thing. And these things happened.

Now, after the killing of Kennedy, and the attritional effects of the War in Indo-China, and the 68er phenomenon, the United States of the Franklin Roosevelt system, was essentially destroyed. And we began to destroy the economy.

Now, the 68er phenomenon split the social forces which had been the base of the Democratic Party, such that the 68ers, the youth—young 68ers—were against Roosevelt. They were against industry, they were against nuclear power, and I'll come to the significance of that a bit later. And therefore, the division of the Democratic Party, of blue collar against no-collar, or blue collar against no shirt—this division corrupted the Democratic Party and enabled Nixon to become President.

Now, Nixon was not important; that is, he was not a historical factor. He was a reflection of a historical factor, but he was not a historical factor. What the Nixon Administration did—which was controlled by certain outside forces—was the Nixon Administration proceeded to destroy the United States.

Destruction of the U.S. Economy

Now, there are three key steps in the destruction of the United States, between 1969 and 1981: The first was Aug. 15, 1971, the fixed-exchange-rate system of the world was taken down. By Nixon, nominally, under the direction of a fascist who's known as George Shultz, who orchestrated this as part of a process. The second phase was, once the U.S. dollar was no longer a Bretton Woods dollar, but was condemned to float on the international market, the second shoe was dropped, under Nixon. And this is the reason why, when the Saudis today pay $3 to produce a barrel of crude, loaded it onto tankers in the Gulf, you pay $4 a gallon for gasoline in the United States. We don't have a U.S. dollar any more! We have a Eurodollar, which is controlled by the oil spot market, based in Amsterdam. It's a part of the British system.

There is an empire, an empire based on this use of petroleum as a controlling device, to control the world economy. The United States dollar is not owned by the United States, it is controlled by this combination—the same thing as the BAE, the British BAE Systems. There is an empire, an empire which is not controlled by oil, but is pivoted on oil speculation, which was launched with the great petroleum hoax, the oil shortage hoax of the 1970s. There was never a shortage of petroleum at that time. Tankers were kept away from ports! Or stuck in harbors, moored off the coast, at that time. The world was flooded with petroleum—"We had an oil shortage."

The effect of the oil shortage was to create the spot market, and under the spot market, the U.S. dollar became a creature of petroleum: of European petroleum, of Anglo-Dutch Liberal petroleum! And the British enemy became openly the enemy of the United States. Not all at once, because they work from stabbing you in the back, not the front—that's British methods, backstabbing; or, getting somebody else to do it for them. Hmm? They orchestrate the politics.

So as a result of that, we lost control of our economy. And what did they do?

The second phase was the Brzezinski phase, the Carter Administration. Now, they had wrecked the U.S. dollar. They had wrecked the position of the United States in terms of world affairs. They had done that within the period, especially from the assassination of Kennedy, through 1971 and the oil-price crisis.

Now, what was their second move? The Trilateral Commission, under Carter, under Brzezinski, and the whole crowd from Wall Street—this crowd, the Council on Foreign Relations crowd. They put through a program, the Trilateral Commission program, which systematically destroyed the United States. It destroyed every element of the Franklin Roosevelt structure of the U.S. economy, with massive deregulation. Not only the destruction, the purging and halting of nuclear power—remember, with nuclear power, we would not have been prisoner to the spot market. And think of all the idiots who are against nuclear power! They don't intend to be traitors to the United States, but they are, in effect. Because only by not breaking the power of this oil monopoly in controlling the dollar on the world market, could these things have happened. They destroyed our physical economy! They destroyed our farmers! They destroyed our farms. They destroyed our industries. They destroyed our protected, mortgage-based security power—they destroyed the right of people to have homes. They destroyed those parts of the banking system. They drove the prime interest rate up to above 20%, under Carter.

And they made a cultural change in the United States. No longer were we the world's leading agro-industrial power. No longer were we the leading power in technology. Suddenly we were half-destroyed—not fully destroyed, but half-destroyed. And the measures which would have corrected this were prevented. We went into a recession, a deep one, in 1987, October of '87. That so-called "recession" was a depression! It was comparable in its immediate effects to what Hoover experienced! It was a Hoover depression!

And what happened then? Alan Greenspan came in! And what did Alan Greenspan do? Hmm? Alan Greenspan used fake money. In other words, we had a system before, under Roosevelt, which was consistent with the American tradition from the time of Alexander Hamilton, and even earlier. Our system was based on governmental control of our own currency, and a defense of that control, to give us a stable currency, and to give us an accountable one. What they did, by destroying the Bretton Woods system in the way they did, and going to a funny-money system, and then going to a hyperinflationary system, like that under Alan Greenspan—we now have obligations in the world in order of magnitude of hundreds of quadrillions of dollars of nominal claims. These claims will never be repaid! They could never be repaid.

Under the Alan Greenspan system, we destroyed the United States and destroyed the morals of people. You have whole parts of the labor force, who don't know what work is! They may have jobs, but they don't know what actual productive work is. They couldn't farm; they're no good in industry; they have no skills, no knowledge. People graduating with scientific degrees from universities who don't know what science is—but they get a degree in it, even an advanced degree in it. Such is the nature of things.

We have been destroyed.

So what has happened is, looking from the death of Roosevelt to the present, we've gone through a process, in which the greatest economic power for Good which ever existed on this planet, has been virtually destroyed by foreign influences on its domestic behavior.

Our problem is, to get the American people to realize: They have been screwed! But they did it, to themselves. But under influence. They had advisors. Like Booz Allen Hamilton, and so forth, their advisors. And that's how they were induced to screw themselves; they were told, "This is the smart thing to do." And they broke their back trying to screw themselves.

A Conspiracy for Fascism

So now, the time has come, we're now at the end of the rope. Probably by April or May of this year, it's as early as that, the decision on what's going to happen to the world as a whole will be made. This is not merely inside the United States, it's also inside Europe. You have now a great conspiracy, by the same people, on both sides of the Atlantic: one destroying the United States, with help of the election campaign-orchestration now; the other in Europe, by the introduction of what's called "a new European system." It's called the Lisbon Treaty system—wild-eyed globalization, and pure fascism. The policy of the British, who created this agreement, the Lisbon Treaty agreement, is fascism throughout Europe. Not only fascism, but war throughout the Eurasian continent. War against Russia! War against China! Destruction against Asia, generally! That is the policy. It's British policy.

And the complement is the British policy for the United States, which is expressed typically—only typically—by Felix Rohatyn. And Felix Rohatyn is a thorough fascist, in the same sense that Adolf Hitler was a fascist, and the same sense that Mussolini, before Hitler, was a fascist.

And the folly, the stupidity, of Americans in the Senate, in the House of Representatives, being controlled by Felix Rohatyn and others like him: This is stupidity beyond belief! You get the impression, that there's not a single committee in the House of Representatives, which is able—even those who want to—who is able to get anything through, which resembles a defense of U.S. interests. The Congress now is hopelessly corrupt, under the influence of Pelosi, who's under the influence of Rohatyn, the fascist. And she either is a fascist herself—or probably too dumb to be one, but she is at least intelligent enough to be his puppet. And the minute anybody tries to do anything useful in this Congress, she steps in on behalf of Felix Rohatyn to stamp it out.

We, for example—beginning at the end of 2004, I was a leading part of a process to try to defend Social Security against the Bush Administration. That policy was generally adopted, during the early part of 2005, by the leadership of the Democratic Party, with whom I cooperated, significantly, in the Congress and elsewhere. We saved Social Security. But! By about March to May of that same year, Felix Rohatyn had stepped in to prevent the next step. What I had recognized, was we were about to lose our automobile industry, so we would no longer have an American automobile industry; we might have a Japanese automobile industry inside the United States, but not a U.S. automobile industry. So, through this operation that was run internationally, the automobile industry was destroyed. Yes, the management was somewhat stupid, but they were stupid under British influence. And other influence which was radiated from Britain, under stupid policies.

We could have saved it. What I had proposed would have saved it. Simply by dividing the auto industry between producing autos on the one hand—which you could produce more than enough of—and on the other hand, taking the auto machine-tool capability and its associated employees for large-scale infrastructure, Federal infrastructure programs, to rebuild our highways—not the highways so much, as our railway systems, to have modern railway systems, power systems, river systems, and so forth; things we needed. And employ the labor force and the management, which was the most skilled management in the world, formerly, to producing this new infrastructure, under Federal credit, which is the only way it would ever get built.

You will never get any significant infrastructure program, in the United States, under the present system. Only with a change in the system will you get it. Anybody who says they're going to give you infrastructure, they're lying to you. And if you believe them, you're stupid. But that's Rohatyn's program: Take your street, put a "poll tax" on the street or something, and then collect taxes on it. You don't buy the street, you lease it. And the people pay to make the lessees happy! And the people are screwed. Some people call this an "infrastructure program." It's a pocket-picking program! And when you're traveling from, say, West Virginia to the Washington area, as a daily commuting operation, you're traveling at least two hours each way in traffic; you're paying about $8 on tolls on the way, and all these other things. And on top of this, this kind of life means that family life, in the people who are living out there, is ruined. If you're spending four hours a day in commuting, and you're paying more than you can afford, say up to $8 a toll, and $4 a gallon for gas, what's happened to your life?

People are being screwed.

Why has this happened? Well, we used to have a policy of balanced management. We used to say, we would take the whole territory of the United States—which is something we began to do on a design made by John Quincy Adams, when he was Secretary of State, when the idea of the unification of the United States between the Atlantic and Pacific, and the Canadian and Mexican border, was established as our policy: to take this entire territory of the United States, so defined, and develop it, in each part! And to settle it, in each part. So that you lived in communities, where you could get to work, or to school, within 15 minutes to a half an hour a day commuting. That was the idea. So you would have a distribution of places to work, which would provide opportunities for employment for all the members of the community. You would have the community specialize in things which were appropriately located in that area, with enough diversification so the community was not dependent upon any single industry.

We were against giant corporations. We were for cooperation among more closely held, community-related, high-technology industries, high-technology agriculture; locally controlled. Because, in this way, by decentralizing much of production, and life, you enable people to have a better life, more economically, and so forth.

Now, we have destroyed whole sections of the country, like Michigan, like Ohio, like whole sections of Pennsylvania, which was once the big industrial center of the United States. The Western farmlands are essentially destroyed. Oh, they grow things there, but it's still destroyed, essentially. The water systems of the United States—the Ogallala aquifer system is essentially destroyed. We're being destroyed totally, all by this system.

And thus, did Winston Churchill's heirs destroy the United States, over this period. We, who represented the greatest power on this planet, at the close of World War II. We, who were prepared and committed to free the people of colonized nations; we, who were committed for justice, a system of sovereign nation-states on this planet. An end of these managed imperialist wars, which is Roosevelt. We went from that! And we were corrupted—step, by step, by step, by step, as I have outlined this here today—until we're at the point, now, where, as early as May of this year, the United States may be doomed. And most people don't have the knowledge or guts to do anything about it.

What the Oligarchy Is Planning

What's the plan, now? Well, the plan is, they use Obama, the way they used Giuliani in New York. Remember what happened to Giuliani, the mayor of New York (maybe the stallion, I don't know)? They built him up as a Presidential candidate. At the same time, they took his organized-crime record, which was rather generously equipped, and they ran the two things together: Run him as a putative Republican Presidential shoo-in, and then build up an organized-crime story, exposing what his activities are, and destroy him.

They did the same with the Democratic Party. They came over; Hillary was the front runner. They took Obama, who was the next Giuliani, who was intended to be brought down by an organized-crime scandal, coming out of Britain with a guy called Auchi, who is the financial backing for a guy out in Chicago who is now on trial, Rezko. And the British have orchestrated this. First of all, they built up Obama, and then, they set into motion the trials and the scandals which are going to bring him down. And he was kept in there, to destroy Hillary Clinton. The idea, the minute that Hillary Clinton was destroyed, presumably, by the Obama operation, then they would turn around and destroy Obama! Which they're also doing. So they're still engaged in this game of trying to destroy both Hillary and Obama. And they prefer Obama, because they could destroy him more easily than they can Hillary. Hillary is a front runner, who'd be tougher to destroy. Obama's very vulnerable, they could destroy him very easily.

It would have the additional benefit of discouraging the American population. If you build up a candidate as a populist candidate, as Obama's been built up, then you bring him down, you demoralize a whole section of the voting population. And we have the greatest participation in campaigns, now, we ever had, in terms of the primary campaigns! You destroy the American people, just when they think they're going to get something good. And you give them a promise—tease them with a promise: Sex all night, you know? In the Obama campaign. Then you take it away from them. You demoralize them—and then you can do something else with them.

In the meantime, if you can use Obama to destroy Hillary, then you have no candidate, except McCain. Now, McCain has some interesting pedigree, in the fact that he comes from the Pacific-oriented Naval tradition of the United States military. And to the extent that we're operating, and that he listens to that influence, he's likely to do a number of good things, like junk the George Bush policies and so forth. Because only a traitor could support George Bush—you'd have to be stupid or be a traitor, one of the two. So therefore, that's interesting, but the point is, the guy has problems, and therefore he's vulnerable in various ways.

So, we are at a point where you would say, wait a minute! We don't have any Presidential candidates that're going to survive! If Hillary goes, we don't have anything! Oh-h-h! They have something! The mayor of New York—not the stallion, but the mayor—Bloomberg. Bloomberg is a pig; that's the kindest thing you can say about him. He is a complete fascist. He's controlled by people like Rohatyn, who is an absolute fascist, a Hitler/Mussolini type fascist.

Fascism, Bloomberg-Style

All right, what's this fascism, thing, then? Fascism is a medieval conception. It came into prominence as a system, after the Fourth Crusade, when the looting of the remains of the Byzantine Empire had occurred. There was still Constantinople, which called itself the Byzantine Empire, but that didn't really exist. The Byzantine Empire was destroyed. It was destroyed by the Fourth Crusade, organized by the Venetian bankers. As a result of this, what they did is they set up a system, where they based government, not on a central government, but on a league of cities. The league of cities, which in the middle of the 14th Century collapsed, when one of the cities, Lucca—the bank of that city, the Bardi bank—went bankrupt on its loans to England and to France, certain counties in France. These bankers had been engaged in financing wars and backing operations which were related to wars. They destroyed society, and the destruction that occurred, immediately triggered by the bankruptcy of the House of Bardi, resulted in a collapse of the European population by one-third, in a short period of time; and resulted in the elimination of half of the parishes of Europe. This is the great dark age, of that period.

Now, what they're proposing now—as Bloomberg is, as part of it, and all the people associated with him, all the people behind him, all the people behind Rohatyn, associated with this—is to set up the elimination of the sovereign nation-state as an institution, and its replacement by a league of cities. Which means, you take the entire territory of the countries involved, you just write off a whole part of the area, and concentrate on cities, or city areas, which become governments of themselves and the area around them. They're not really governments, because they're vulnerable. And you control them that way, as in the Middle Ages, as in what led into the great dark ages, of the 14th Century.

That is Bloomberg's policy! That is the policy of Rohatyn! He says so explicitly, but people don't understand it. They're not thinking clearly! Even leading politicians are not thinking clearly. What does this mean? Are we going to have to learn this after the fact, as people learned this after the fact in the case of the Middle Ages? Aren't we capable of seeing that this is now, this is coming now? That this is the end of civilization, if we allow it to happen?

This is not just happening in the United States, it is happening also in Europe: In Europe, the form of this action is called the Lisbon Treaty. Now, the Lisbon Treaty is a complicated mechanism. It is both fascism; it is the elimination of the sovereignty of every nation-state, Presidency, and Parliament in Europe. They haven't gotten to Russia yet, or Belarus, but they'll get there, if they can.

It also aims to be a permanent war organization, of a feudal type, where the power now resides in cities, and in the financial organization, the bankers who control these city operations. The purpose is then to use the power of a united imperial Europe, under British control, to destroy Russia, to destroy China, India, and so forth. And to destroy the world, and make the world malleable for the kind of things that Felix Rohatyn represents.

Felix Rohatyn is an enemy of the United States. He's a traitor to the United States. He's an agent of the British monarchy, those British monarchy interests which are behind this operation, which are running the same operation in Britain, under the name of the Lisbon Treaty organization, which is not yet official, but it's threatened. And at the same time in the United States, it's called the Bloomberg operation, which is run by not only Rohatyn, but George Shultz, etc., etc.—the known characters.

Wherever you hear this idea of "infrastructure," from that son of a Nazi, Schwarzenegger—his father was not only a Nazi, he was a killer! He was a police chief in a local region of Austria, who, when the Anschluss occurred, that is, the absorption of Austria into Germany occurred, under Hitler, became immediately appointed as a Nazi Party official, and during the war became part of a special police unit, which cleaned up the occupied territories of Eastern Europe. Not the SS, but a special police force.

It's the same mentality that's expressed by Schwarzenegger himself, in his public appearances. And therefore, he comes by the fascist policy which he adopted in California, in the embrace of Bloomberg, as his father's masters, the Nazis. He is, effectively, a Nazi. He comes by it by heredity, or by culture.

We have mayors who are stupid! We have governors who are stupid! Who think that turning your infrastructure over to private financiers, who then can set arbitrary prices on leases, that is, in fees you have to pay, to drive from one neighborhood to the next, or something similar; all public services taken over by private interests, under citywide organizations in a national network! Which is exactly what these guys have proposed. That is exactly what Bloomberg represents in New York City, already. That's what he's trying to do—that's why he has so many enemies on the elected Council. He's a fascist!

When they put this into effect in Italy, it was called corporatism. Exactly this policy. This was the policy of Mussolini! When Schacht consolidated Hitler's power in Germany, the same operation was done. The same kind of operation. The intention of the Nazi system, for its post-war policy, was the occupation of all Europe, under this kind of policy. Elimination of the nation-state for what was called "universal fascism."

So what we have, then, is we have the United States is being destroyed, from inside, by fools who don't recognize this threat to the United States; and by the instruction of people from London, such as Tony Blair, who set this policy into motion, when he was prime minister. This means the United States and Europe are both destroyed. And are turned into vehicles for destroying other parts of the world, as in South America, Central America, Eastern Europe, Asia generally. That's the policy. Do you want it? I can guarantee you, that I don't exaggerate in the least that that's what the policy is, and that's exactly what's in motion.

That's exactly what's behind the way the Obama campaign is being orchestrated, from London. London put Obama into his position. His money to support him, came in large part from Britain, from Auchi, who's an Iraqi-born asset of the British system. Auchi is the funder of the guy who's on trial in Chicago now, the guy whose funding went—Rezko didn't have the money! Auchi gave it to him. Auchi was the key seed money for this operation. That's what made Obama! That's why he behaves so peculiarly. He has no policy. He has no program. He says, "I'm going to do everything," but he doesn't say anything. "I'm going to make everything good."

"What is this good you're going to do?"

Well, that's not specified.

He's a tool they intend to bring down! And if they can get a lot of people to believe in him, they're going to bring them down, too. Because the suckers will just be demoralized, they won't fight any more. The stuffing will be taken out of them.

So that's the key question that faces us.

Defend the Nation-State

Now, this is not necessary. If we go back to the Constitution, which very few people in the Congress understand today, or in the Supreme Court either, for example—but if we go back to our constitutional foundations and look at the history of Europe, in which these constitutional foundations were laid. That is, European civilization was started somewhere between 700 and 600 B.C. It was started actually by an alliance among the Etruscans, together with the Egyptians, particularly in Northern Africa, who were a maritime part of Egypt; and the Ionians. And the collaboration against Tyre, by these three forces—in other words, the maritime power of these localities, against the maritime power controlled by Tyre. And this created a unification process, out of which you had the emergence of a united kind of European civilization.

That is, there is no such thing as a "European people." There are many people who have European historical characteristics biologically, but there's no such thing as "European people." There's a European culture. And, as we see in the United States, or as we see in some cases in Europe, or we see in Germany, for example—many Germans are not of German origin, in terms of ethnic origin. They're a product of a cultural process, into which their ancestors became assimilated, and they represent a certain cultural history which they share. As a matter of fact, the whole thing is composed of various cultural histories, among various kinds of European cultures.

In order to have a representative form of government, you must have nations, which are sovereign, which represent the culture of that people. Not globalization. Because you do not have representative government, unless the people are fully, consciously capable of recognizing their own interests in their own government. Therefore, you do not want globalization; you want sovereign government, of a sovereign people, which is governed by its culture, and that these cultures agree on a common purpose for humanity. They don't make war, because they have differences; they cooperate, because they have differences. And that was the intention.

The United States as a melting pot nation, is a perfect example of this. We were a melting pot nation! And apart from some racists and other damned fools among us, we are that, today. We don't care what the color of the skin is or anything else. Doesn't mean anything to us. Do they represent, are they part of this culture? Are they a contribution to this culture, making this culture or building it? If so, they're part of our people. And that's our sovereign system of government. Better than Europe, because we have a representative system of government here; we don't have that in Europe. We have parliamentary systems there, which come down easily any time they get into conflict with the financial powers that be.

But in our case, we have this, and this is what we should defend.

The Unique Advantage of the United States

Now, what's the solution? The power of the United States, under Franklin Roosevelt, as exhibited earlier, is this specific cultural factor. Europeans did not come here in a flight from poverty in Europe. Yes, some of them may have; but the settlements themselves did not come in that way. The settlements came, as a result of Europeans knowing that as long as the oligarchy's running Europe, this place is no place to be. So therefore, they said, we must go across the ocean, to this territory which had been discovered, and set up republics in this area, where the ideas of European culture can be freely expressed, without this damned oligarchy sitting on our necks! That was what the United States is. And therefore, we are a truly representative system of government, at least in our constitutional roots, with this intention: to bring the best of European culture here, away from Europe, away from the oligarchy, away from the nobility, the aristocracy! Away from the looters. Away from the predatory bankers. And to be able to express the values of European culture, in a land of opportunity for developing that expression.

That has always been our secret power as a nation, whenever we've accomplished something. We are a part of European civilization, with an affectionate feeling about other parts of world civilization; and believe that we must cooperate with other nations, by arguing and developing common interests for common purposes. And that we must deliberate on that process.

Now, this is what Roosevelt intended to do. Roosevelt is not an accident: He's more American than any other President since, because he understood this, and practiced this. His intention was to eliminate all imperialism, in the post-war period. To use the power of the United States to help nations which had been colonized, to build up, and become true nations, expressing their own culture, freely. And to bring these nations together as sovereign nations, in a unit, which he intended by his proposal for the United Nations Organization: to create a receptacle, in which you could take nations and build nations up, and bring them into an institution, where they would become sovereign powers, together with the other sovereign powers. And to eliminate all colonies, all empires, from this planet, forever! That was the purpose. And that's the natural, constitutional expression of what the intention of the United States' existence is, and always was, and should be now.

The Collapse of the World System

So therefore, the remedy for anything which we do, we're required to do, from the United States, must be an expression of that historical view of who we are, and what we are, and what our constitutional structure means. That means, how do we intervene in this present situation? Money is worthless. Money has no intrinsic value. What happened with the Carlyle Group and what the Carlyle Group's collapse triggered with other groups today, is a new acceleration of the crisis: The system is coming down.

We are not in a depression; we're in a general breakdown crisis. We are in a process of financial collapse, which is comparable in form, to what happened in Europe in the 14th Century, when the general dark age hit. We are in the middle of an onrushing dark age! The nearest comparison to what's happening to us now, inside the United States and worldwide, is seen in Germany in 1923. Germany was isolated, because it was under these conditions set by the Versailles Treaty organization. It had no power, and no ability to resist the Versailles Treaty forces. Therefore, it was compelled to inflate! And under these constrained conditions, it went through a form of hyperinflation, which led to the collapse of the German mark in 1923, in October-November 1923.

We are now going through a process of hyperinflation, which is very much like that which occurred to Germany under confined condition, especially between 1921 and the end of 1923. That's where we are now. There's no way that we can manage—the stimulus package. A "stimulus package"! That's what they did in Germany! In 1923, especially, '21 through '23, but especially '23. The stimulus package coined a phrase: hyperinflation!

What do we have now? We have a collapse of that nature; in this case, a collapse of the world system. We don't have some outside power that's controlling this, as such; the world just can not take this system any more. So therefore, what happened in a localized situation in Germany in 1923, is now happening globally, but hitting primarily in Europe and the United States, the transatlantic powers. But if the transatlantic powers go under, China will go down, India will go down, everything will go down! The world will go down in a dark age.

Now therefore, money, as defined by the Federal Reserve System, is no good! No damned good!

Use Constitutional Powers To Get Moving Again

So what do you do? Well, we have, under our Constitution, the constitutional powers of the U.S. government, which are unique in the history of constitutional law. These are the constitutional powers which were used by Franklin Roosevelt: to take the United States out of a deep depression, and make it, once again, a great power, the greatest power the world had ever seen, in terms of economic power. How'd we do that? We reformed the currency. We took measures of bankruptcy, and similar kinds of measures. We got things moving again. And by the end of the war, we had created the greatest economic power the world had ever seen—with the American Constitution.

Well, how can we do that again?

All right, now, the immediate thing: We don't have a "housing" crisis. We have a housing crisis in the sense that people may not find houses to live in, that they're allowed to live in. But the housing crisis, or the so-called subprime crisis, is merely the tail end of the real crisis. It's the weakest point in the system. It is not the source of the crisis. The source of the crisis begins at the highest level: It begins with the financial institutions. The bankruptcy is occurring in the leading financial institutions of the world, in every financial institution of the world—that is, especially in Europe, the transatlantic ones, immediately—are in the process of disintegrating. So the disintegration is coming from the top, but is reflected at the bottom. It's reflected in the impact on the weakest section of the people, in the economy.

So therefore, what do we do? We have to protect the household. We have to keep people in their homes and their communities. Number 1. We can do that: How? Well, the Federal government has the power of bankruptcy! We bankrupt the system! And we put the homeowners under protection. And we negotiate an arrangement under which they will continue to be homeowners, until we can sort this mess out, and then we'll sort it out for the final solution.

But you can't save the homeowners, if don't save the banks! You have to save the local banks—not the filthy banks, but the local ones, the ones that are real banks: that take deposits and loan money, and are vehicles for the Federal government and state governments to conduit funds through them, for local purposes or state purposes, and thus you stimulate the growth of the economy.

Now you put the banks into the business, with Federal help, of building up again, to make up for what they lost with all this foolishness, and now you have, without skipping a step, you have a continuity of the bank, yesterday, and today. No difference. On the outside, no difference. For the ordinary citizen, no difference. You go in, you make your deposits, you make withdrawals, it's your business. You get loans for your local business. You get loans for community purposes. But you also conduit Federal credit, created by the Federal government, which you put through, through various programs, through the private banks of these types, in order to rebuild the economy. You put people back to work—exactly the way Roosevelt did.

Then you have to set up another system. Second thing: You have to set up a two-level system, where you have one rate, 1-2% for loans, that's the Federal rate. And for programs that are authorized, they will get, through the banks—their local banks—or through the government directly, but preferably through the local banks—the Federal program will then be authorized to conduit money of this type, Federal created credit, through the local banks, the state banks and the national banks, in order to provide this credit for specified purposes for investments in the economy. And for employment, whatever the Federal government authorizes.

And so, now what you've done, is you've protected the banks, by putting them into bankruptcy protection, you've protected the people. So you now have protected the local communities. And that's your base of operation—that's what Roosevelt was allowed to do. The problem we have today is greater than Roosevelt faced, much more serious. But nonetheless, the same method will work—and it's the only method that'll work.

Then, you have to have a driver program, which is large projects. We need to free ourselves from this petroleum crisis. We need nuclear power. We have, in the third and fourth generation, so-called, with certain types, like the pebble bed reactor types, we can not only produce power, of greater power and cheaper, than you can get with any other means—and there is no cheaper power available than nuclear power, that's a matter of physical principle, not some economist gibbering. But not only is that true, but nuclear power, not merely in quantity is better, but it's better in quality. Why? Because it enables you to go to the higher levels of physical principles.

For example: With an 800 megawatt or a 900 MW fission reactor of the pebble bed type, you can not only produce many things, you can generate synthetic, hydrogen-based fuels, locally, from water! And the waste of the consumption of this fuel is—water! Not a bad investment. You create water; you use water for hydrogen-based fuel power. When the hydrogen-based fuel is consumed, it gives you back water! Not a bad deal, huh?

So by going to high-technology programs which shift the economy and its technology to a higher state, we can raise the level of productivity of nations, and solve problems we can't solve in this system.

The other thing we have to do, is we have to break the world free of petroleum slavery. We still would use petroleum, but basically we should be shifting away from using petroleum as a fuel, to using petroleum as a chemical feedstock for production, and there are many things that you can use petroleum for in that way. So then, you would, instead of shipping oil, as crude oil, from Saudi Arabia into the ocean, where it sits parked, while people bid it up to your $4-a-gallon rate for gas—instead of doing that, you take the petroleum where it's extracted, and you set up a chemical industry, which is based on the use of petroleum as a feedstock for producing various kinds of things. Then, when you ship something, the value of what you ship is, per pound, worth much more as a product, per pound, than petroleum. And therefore, the weight being about the same, the cost of production, the cost of shipping is now lower. So therefore, it's a better way to run the economy. And by those kinds of measures, we can make it.

What we have to essentially do, is to have the world awaken to the reality of these alternatives. We have only two ways to go: the way I've indicated, a Roosevelt kind of orientation toward dealing with a general breakdown crisis, as I've indicated; the other way to go, is to go to Hell. There is no other way. There is no middle ground, there is no compromise.

A Revolt of the Patriots

What we need is a revolt of the patriots: people who see what patriotism really means. It's not "I love my country." What're you going to do for your country? What're you going to do for the world? That's patriotism. Are you committed to some practical benefit for your nation, and the world? Are you committed to some necessary action, on behalf of the world or the nation? That's patriotism: The idea of acting in unity, for a nation to accomplish something to that purpose, is patriotism.

What we have to create is a world system, and a world system of nation-states, not a world system of globalization. We don't need the Tower of Babel: The Tower of Babel was a bad idea. We don't want it back again. It had a bad reputation in the Bible, that's a good reason.

What we need, therefore, is to have the United States do what it can do under its Constitution, which other nations, generally, can not do. They don't have the Constitution to do it with, and they don't have the tradition that goes with the Constitution needed. We, as the United States, must go to certain principal nations of the world, to create a nucleus of alliances of nations, which will do what? They will create a fixed-exchange-rate world monetary system, the equivalent in that sense, and functional sense, to the Bretton Woods system, as Roosevelt intended. And what we will do then—the United States, of course, has the Constitutional power to utter money, which is a unique authority of the U.S. government. But other nations don't have that kind of system. But when we enter into agreements, treaty agreements, with China, with Russia, with India, and with other countries, we now can enter into what are called "long-term trade agreements"—trade and investment agreements, at low interest rates, 1-2% again, and by this means, we're looking at 20-year, 40-year, 100-year kinds of advances of credit—which is what we need now; then, you now have a basis for organizing, by revitalizing international trade, by introducing a new factor of vitalization of productivity in international trade, you now have a way of getting out of the present debt structure, and similar kinds of things.

So therefore, these purposes, which are fairly elementary in history, to the historian, represent an understanding of the problem, and a solution to the problem—if only as I've sketched it. This is what we must do.

We must overcome the stupidity which seems to control the Congress, or most of the members of the Congress, and to control many citizens who prefer to be ignorant, because they like desperation better than solutions, in order to accept these three simple steps:

One: HBPA [Homeowners and Bank Protection Act]. We must provide for an indefinite period, until we can solve the problem, we must provide bankruptcy protection for the homeowner and for the banks, that is, for the legitimate banks for legitimate banking operations, not speculation.

Secondly, we must establish a two-tier credit system, between 1 and 2% for government-authorized credit, and let the interest rate float, to 7, or 8, or 9% for other things. No stimulation package. A stimulation package is called a "hyperinflationary package." Anybody who is for stimulation—like these sex freaks, like Paulson and Bernanke—they want "stimulation" all the time! Stimulation! Get 'em some Viagra, or whatever! But don't give them money. And don't float money out there. You've got to have a conservative view, to defeat inflation. You must have a regulated view, an expansive view, for construction, for the security of people, the security of communities, and for the normal functioning of the country, as it used to function. That these habits are built into our system! Normal banking, no more of this hyperinflationary stuff, no more golden parachutes. One to two percent basic rate. Rebuild the economy! People can understand that.

So, have a system of credit which is anti-inflationary: 1-2% for authorized use of the Federal government, as a means of generating credit. For distribution, primarily—when not by the government itself—primarily through state- and national-chartered banks, functioning in a normal way, pre-inflationary. Shall we say, pre-Volcker, pre-Greenspan ways. We need that.

We also need a factor of world expansion and cooperation, which means we have to go to create a partnership among a number of leading powers, which include Russia, China, and India. China is one of the biggest markets for the United States, and we're one of the biggest markets for China. If China goes down, we're in trouble. Therefore, we have to worry about China. And China has to worry about itself, and has to worry about us—as it does! The Chinese government now understands that this is a problem. India may be not quite as quick on this one, but they'll pick up on it. They understand it, too.

If we bring together an alliance of the United States, Russia, China, and India, and bring other countries into the same alliance, on economic policy, we can create a new international monetary-financial system—like the Franklin Roosevelt system. Under those conditions, with these three measures, and measures which are required to facilitate their implementation, we can mobilize most of the world to get the Hell out of this thing! And come back to a system where human beings can decently live again.

Thank you.

[Question-and-answer session]

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