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This article appears in the July 3, 2009 issue of Executive Intelligence Review.

Bank of China Official Takes British Bait

by Lyndon H. LaRouche, Jr.

LaRouche issued the following item on June 26, 2009, for widespread distribution. PDF version

A Friday, June 26th slug published by the BBC, credits the clearly misinformed People's Bank of China's Zhou Xiaochuan with proposing that "An international monetary system dominated by a single currency has intensified the concentration of risk and the spread of the crisis." The result of such an action would be the worst thing which China could do to itself and its people.

That terrible mistake, fortunately only proposed by the PBOC, but not yet implemented, is to be understood as a result of manipulation of relevant officials in China, Russia, and other nations by British sources. As a result of Eurasian and other nations' ignorance of the character of the present, London-centered imperial monetarist system, the present generation of leading relevant officials throughout most of the world has been misled into a scheme designed to bring about the ruin of those duped into supporting such a scheme.

Admittedly such a scheme of some nations for international mass-suicide in their own economies, would not have gained the degree of support it has gained recently, had the United States itself not discredited its economy, and its currency, by the virtual criminal stupidities of the policies under Presidents George W. Bush, Jr., and now, the worse policies of the pathetically incompetent President Barack Obama. However, the fact that the U.S. under those Presidents has virtually insane economic policies, still today, does not remove the fact that the policies of nations which are proposing a new world monetarist system, are entirely insane.

The Present World Empire

Since 1789, there have been only two leading financial-economic systems in the world. The one has been the European system, which has been dominated by the British Empire since the February 1763 Peace of Paris, and the challenger, the American System as designed under the leadership of Alexander Hamilton, an American System built into the relevant provisions of the U.S. Federal Constitution.

However, treasonous, post-Franklin Roosevelt developments within the U.S. political-economic system, prepared the way for the post-1968 developments since the catastrophic developments, led by the United Kingdom during the 1968-1973 interval. By March 1, 1968, the U.S. dollar was already degenerating, under the influence of the Trilateral Commission, into a mere auxiliary of the Anglo-Dutch-Saudi international monetarist system based on the long-standing role of the hegemonic, London-created petroleum spot market. The ensuing wrecking of the U.S. economy and dollar under David Rockefeller's Trilateral Commission sabotage of 1977-1981, as combined with the lunatic and ruinous "green" policies launched during the 1970s, destroyed the U.S.A. in its former role as a true sovereign nation-state, and turned it into an increasingly decadent role as a pawn of London, via London's Wall Street swindlers.

With the collapsing of the former Soviet Union, through concerted efforts of both internal and external political forces, western and central Europe were promptly placed under a dictatorship launched by Prime Minister Margaret Thatcher, with the complicity of France's President Fran├žois Mitterrand, and the instinctive corruption of an essentially more British than American Thatcher side-kick, U.S. President George H.W. Bush. The submissive role played by that President Bush, combined with the wrecking of the physical-economic potential of the fragments of the former Soviet Union, established the framework, through the European Union, of a British world-empire-in-fact.

The disorientation shown in leading political circles in Russia and China, among others, today, has been an outgrowth, chiefly, of these factors set into motion with the triadic agreements against Germany, Russia, and others, factors set into operation by the trio of Thatcher, Mitterrand, and Bush.

How the Economy Was Changed

The general, supranational trend, set into motion by the assassination of U.S. President Kennedy, used the lever of a "land war in Asia," the useless and ruinous war in Indo-China, to bring about the downfall of the U.S. economy, also setting the stage, in various other ways, for the characteristics of a so-called "post-industrial society" to replace the characteristics built into the U.S. economy's rebirth under President Franklin Roosevelt.

For example, 1968 was the turning-point at which the net of additions and shrinkage in U.S. basic economic infrastructure reached a zero-balance, and, since then, has undergone a decades-long disintegration in its net industrial and agricultural output, and physical standard of living, per capita, and per square kilometer of territory. The productive American was being transformed into a species now turning as dead as the dodo, like British married couples turned too fat to embrace efficiently for breeding purposes, each with more length in veins, arteries, and related ducts, than that of the entirety of the still-operating, railway system of the United Kingdom.

The essential form of the economic crisis of the world economy, and each of its parts, is not financial, but a collapse in the rate of net physical output of the economy, as measured per capita and per square kilometer. As I have pointed out, since 1996, in my "Triple Curve" pedagogical, the general rate of monetary and financial emission has zoomed at the same time that the net physical output, per capita and per square kilometer, has zoomed downward, each at accelerating rates of trend.

The remedy for the present economic situation, throughout the world, is to reverse these physical-economic trends, measured as both physical output per capita, and also capital-intensity, and energy-flux density of sources of power applied.

This requirement translates into a massive investment expressed as long-term investments, reaching into the range of half-century physical maturities, at fixed interest-rates between a net 1.5% and 2% over terms reaching a half-century. That program is required to raise the physical productivity of the nation and its labor-force, per capita and per square kilometer, at the same time as increase the intensity of physical-economic investment in production and its essential capital formation in both production and basic economic infrastructure.

This urgently needed reform can be effected only by eliminating entirely the existing world monetary system, and replacing it with a general agreement on partnership among sovereign nation-states operating through a credit-system, rather than a monetary system. The role of the U.S.A. as presently a net debtor nation, but with a Hamiltonian tradition and a very large debt to work off, is the essential platform on which to base both a global fixed-exchange-rate credit-system and half-century uttering of debt as credit for the crash-program type of re-energizing the world economy.

Without such a reform now, the situation for every nation of the world is presently imminently a hopeless one. Therefore, end the existence of the British empire, now.

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