This article appears in the November 8, 2019 issue of Executive Intelligence Review.
November 11, 2009
How the 2007-09 Blowout
Should Have Been Addressed
This article is the transcript of a national webcast delivered by Lyndon H. LaRouche, Jr., on Nov. 11, 2009. It was originally published under the title, “The Great Change of 2009,” in the Nov. 20, 2009 issue of EIR, Vol. 36, No. 45. We reprint it here because Mr. LaRouche’s rigorous scientific aproach to understanding the causes and cure of the 2007-09 banking and financial crisis is still of immediate relevance today, a decade later. We include selections from the questions and answers.
Lyndon LaRouche: Thank you.
Well, as you know, since July, the 25th-27th of July of 2007, I had warned that we were headed into a general breakdown crisis of the world financial-monetary system, and the economic system. Three days later, after that announcement, the beginning of the breakup of the world monetary-financial system occurred. It occurred in the form of the dropping out of the mortgage market in the United States, that is, the home mortgage market. And this spread quickly internationally. Now, another thing happened at the same time: There was a fundamental shift in the world economy, because, as you know by now, having seen the Triple Curve, you know that the world economy is governed presently, by a global, Triple Curve function. Forget all the forecasts by the Wall Street crowd, the statisticians: They’re all incompetent, and they’re always wrong. They have always been wrong, and will be wrong, because they use a wrong method. They use statistical forecasting based on accounting characteristics, and that does not determine the way economies function.
Economies—today, and in European civilization, off and on, largely, for several thousand years—have been determined by a threefold principle of economy. On the top, you have international monetary systems. Even before the fall of the Persian Empire, you had monetary systems controlling Asia, especially East Asia and South Asia. And the fall of monetary systems was usually the trick which tipped off the collapse of economies in those regions: physical collapses of those economies, as the result of the monetary processes, and the effects of monetary processes. With the collapse of the Persian Empire, and the Peloponnesian War, there was a change. And that change, which occurred with the Peloponnesian War or its aftermath, has determined the history of economy in European and broader civilization ever since that time.
The three characteristics are:
1. The monetary system; by that I mean a money system, which is privately controlled, or imperially controlled, over the price of money. Monetary systems. These are used to control trade and other things. All empires, all European empires, including the British Empire today, are not controlled by nation-state power, they’re controlled by imperial monetary power. And nation-states as such which play an imperial role, are simply victims of monetary systems. That’s number 1.
2. Within nations, you have financial systems, and in trade among nations, you have financial systems. These are systems in which money is used to buy and sell goods. This is a financial system, but it involves, at some points, the sale of services and/or goods.
3. You have a physical economy. The physical economy measures both the extent and the rate of growth or decline of physical consumption, produced physical consumption, which includes the role of services in those functions.
So you have three curves that, in past history, for more than 3,000 years to date, from Europe and beyond, have controlled the world economy: Monetary systems at the top, and they’re always imperialist. Secondly, financial systems of nations, and in trade between nations. This is the use of money for the purchase and sale of goods, where monetary systems are the sale of money for money, and by money. Thirdly, physical production and productivity per capita and per square kilometer of territory. These are the three factors of economy, and have been the three determining factors of economy, for over 3,000 years of European and extended European history. No change today.
Now we had in 1923, under very special conditions, in Weimar Germany, under the conditions imposed on Germany, reparations conditions—Germany as a whole was under reparations demands. The economy was squeezed, to cover reparations paid principally to France and Britain. But then, in that year of 1923, the French moved into the Rhineland, which resulted in a collapse of production in Germany. But nonetheless, the demand for reparations increased.
So, what happened: The German government printed money—just simply monetary aggregate. At the same time, there was a collapse in the economy, a collapse in the financial economy and the real economy, a collapse in employment, a collapse in production. So over the period from March of 1923, through November, Germany went through a cycle, in which monetary values, output, increased and went through the roof; the value of the currency decreased accordingly. There was a collapse in production and sales, and in financial transactions related to production and sales, and there was a physical collapse in the economy.
In November of 1923, the German economy disintegrated. What we are experiencing now, in the world, especially in Western and Central Europe and in North America, what we are experiencing is a general breakdown crisis, on a global scale, which is a virtual copy, but on a global scale, of what occurred on a national scale in 1923 Germany.
Now, that means, there never was, and there never will be an economic recovery of the United States under the Obama Administration. The Obama Administration is doomed to an early, general breakdown crisis of the U.S. economy, and a similar condition exists in Western and Central Europe. The situation in Western and Central Europe for the moment is hopeless, because it’s under a dictatorship; it’s under a British dictatorship, and they have so far submitted to that British dictatorship.
So, don’t ask yourself what the prospects for the U.S. economy are. Don’t ask a Wall Street stockbroker; don’t ask your wise man, here or there, or your weatherman. Don’t ask him! He doesn’t know. I do: This present world system, and immediately the U.S. economy, is doomed to an inevitable, early, total collapse, unless we change the policy now! There’s no way that the U.S. economy will continue to exist much longer, under President Obama. President Obama is the name of doom. He’s like a floating balloon with a face painted on it, and draperies in the form of trousers and a coat. And to keep the balloon from floating away, he has shoes, which sit on the floor. But this guy is not of any use, in the economy. He’s a puppet. He’s a puppet of foreign interests. But the key thing here is, under the Obama Administration, there is no chance for the continued existence of the U.S. economy, or even the U.S. nation.
And we’re talking about something already in motion, not something that “might” happen. It’s something which is already happening. And it’s increasing day by day: Under Obama and his present policy, there will never be a recovery, or even a survival of the United States. That’s a fact. That’s not a guess; that’s not a crystal ball picture; that’s not a statistical forecast. That is already a fact.
You have a zooming rate of bailout money. Bailout money is entirely monetary aggregate. Hyperinflationary bailout. Since the Summer of 2007, you have an escalating rate of collapse of the real economy in the United States, the goods and services, things which are bought and sold. And all our basic industry has been wiped out. The auto industry, all the kinds of industries related to that, are being wiped out. Food supply is being wiped out, by international food systems, food-control systems, cartels. The United States has been in a process of disintegration over this time.
A Long Process of Disintegration
This actually goes back to 1964-66-68, that period. The assassination of John F. Kennedy, as President, resulted in a change in fundamental direction in U.S. policy. As usual, as today in Afghanistan, the way the United States is broken, is by getting involved in some needless, useless war. Kennedy, as President, opposed going into a war in Indo-China. He did this with very great care, in shaping his policy, under the advice of Gen. Douglas MacArthur and Gen. Dwight Eisenhower, the former President. They agreed with him: no more long land wars in Asia for the United States!
Well, what happened of course, is, they got the war, by killing Kennedy. And having the Warren Commission cover it up. But it was not some poor idiot that did that—there were three other guys from France, by way of Mexico, who walked in, shot the President, and walked out, and the Warren Commission covered it up. But what they got that way, by killing Kennedy, and covering it up the way they did, is they got the land war in Asia, from 1964 to 1975. And under these conditions, whereas Kennedy had represented a resurgence of economic growth, a post-Truman trend back toward Roosevelt’s policy—we went the other way. In 1966-68, the United States lost its infrastructure: that is, the rate of change of infrastructure—we had a contraction of basic economic infrastructure in the U.S. economy, from 1964 to ‘66 on.
So, since that time, there has been no net resurgence of infrastructure in the United States economy. We did make a landing on the Moon in [six] cases. These were very successful, but we were already shutting down the economy of the space program before then! So we took what we had used to build up the Moon shots, and we shot it to the Moon. But we were shutting down the very capability upon which the Moon shot depended, from 1967 on. And the economic reason was, the Moon shot, the space program, gave the U.S. economy an estimated 10 cents increase in the economy for every penny spent. So it was not economic pressures, as such, which shut down the space program. The space program gave us 10 cents in return in technology for every penny spent on the program. It was a deliberate destruction of the United States, undermining it, decaying it.
And since that time, with the 68ers, which rendered a cultural change in the United States, and the 68er generation—the Baby Boomers, so-called, like the spoiled children from Columbia University and similar places—they destroyed the economy. They introduced this “post-industrial society.” That was their tick.
And these factors came together, so we have been decaying as a nation, as an economy, since 1966-1968, in the effects of the shutdown following the assassination of Kennedy, and the launching of the war in Indo-China. And since that time, we’ve been involved in other wars, other unnecessary wars. No war fought by the United States during this entire period since the death of Kennedy, has been necessary. Every war has been, essentially, a fraudulent war, conducted by the United States, especially land wars in Asia, and similar kinds of operations. These things have dragged us down, and down, and down.
We never improved. You look at the number of people—look at our factories. We don’t have a basic industry left in the United States to speak of. We have small businesses, small shops. What happened to the auto industry? The auto industry was sort of the last bastion, that and the aerospace industry, the last bastions of our high-technology industry. It’s shut down! And kept alive—General Motors only exists for looting and stealing purposes, not for production purposes.
We’re ruined, we’re broken. We’re wasted, and people are talking about, “Well, maybe there’s going to be a recovery of the economy.” Can a dead man recover? That’s what we’ve got.
So, the question of forecasting: Forget it. Anyone who told you that there’s any sign of recovery in the U.S. economy, is either an idiot, or a liar. Any newspaper that says there’s been a recovery, is a lying newspaper, or just a plain idiot. There is no prospect of a recovery of the United States under President Obama. Under President Obama, the United States is doomed. Even if we remove that mustache from his upper lip.
Bring the President Under Control!
And, it’s a fact. I mean, this man has got a Hitler-like policy. His policy is identical with his IMAC proposal, which is the integral part of his program, which he votes for, he supports, he’s fighting for. He’s blackmailing to try to get it through. The IMAC program is a Hitler program! That’s no exaggeration. It’s a program that was given to him by his protector, Tony Blair, who first introduced this Hitler-like program in England, when Blair was prime minister. And Blair’s program, of Hitler-like genocide against people, through manipulation of health care, is the policy of the Obama Administration. That’s what the health-care program is. There’s no other reason for it. It’s mass murder, and it’s Adolf Hitler.
That mustache stays on this President’s upper lip. It belongs there. He put it there, by adopting the Blair policy of genocide, which he specified. And people say, “No, he’s a good man, he’s a Democrat.” What are they, idiots?
This man’s a killer. And the only way—. You see we have a problem with this guy, because he happened to be elected, which shows you how bad public opinion has gotten lately. So therefore, we can’t just dump him peremptorily because we don’t like him. We’re not a British government, a European-style parliamentary government. We’re a constitutional government, a republic. And therefore we’re very serious about what we do with an elected President.
Well, we’ve got to do something about this President. We have to put him under control, or we have to throw him out. One of the two. If it’s between the nation and that President, guess what? What your choices are?
But, understand clearly: There is no chance of any recovery of the U.S. economy, under this President, as long as he remains in his present policies. His economic policies, his health-care policies, are not tolerable. Either those policies go, or he must go, because we don’t have a United States unless that change is made. There’s no choice.
Now, people are saying, “Yes, but . . . yes, but . . . yes, but. . . .” They’re fools. The record on my forecasting is clear: I’ve always been right, and the opposition has always been wrong. Because they depend upon statistical forecasting, based on market forecasting, financial market forecasting largely, and a few statistics which are largely faked, or “improved upon,” shall we say? There never will be a recovery. And any American who’s supporting this President and his policy, the current policies, the environmentalist policies, and these health-care policies, these military policies, is simply supporting the destruction of the United States.
And some time, perhaps, I may have to tell you: “I told you so.” And it won’t be far distant. We’re very close to the point, at which the breaking point occurs.
Now, one thing about breaking points: The conditions for a breaking point are objective. We have this plummeting U.S. economy. We have soaring monetary inflation, sometimes called “bailout.” We have soaring downward financial transactions, financial activity in the U.S. economy. We have a collapse of the physical economy, particularly in terms of employment. We are bankrupt—hopelessly bankrupt. We’re as bankrupt in form, as Germany was, Weimar Germany, in 1923, a very similar kind of process.
Anybody who tells you there’s a recovery, is either an idiot or a liar. This system is collapsing. This nation is on the verge of disintegration. And some of us have the guts to fight that. Some don’t. Some are hoping the Democratic Party will revive. Well, I’ve seen a dead man revive, I suppose, before.
But that’s where we stand, today.
We also have other considerations. Now, despite the fact that the United States is under such mismanagement as this, Europe is worse. Because the continent of Europe, that is Western and Central Europe, are under the control of the British euro system. And therefore, they no longer have effective sovereignty. Particular governments in Europe, Western and Central Europe, can not create their own credit: They’re subject to an international institution, controlled from London, under this new euro system, which has gotten tighter, and tighter, and tighter, all the way. So therefore, we’re not going to get anything from there.
Developing a Solution
What I’ve been involved in, recently, has been the development of a solution. The solution, and it’s the only shot you’ve got, is a Four-Power agreement, prospectively, among the United States (with a change in the current Administration’s policy), Russia, China, India, and some smaller countries which would be willing to participate in this. This would represent governments of the world which account for about half or more of the population of the world. So that, if an initiative is made—this includes the United States, Russia, China, India, and other countries—if an alliance of these four and other countries occurs, that is sufficient power to bring down the present world system, and at the same time, institute a new one.
The first step in that direction was implemented recently, in negotiations between Russia and China. They agreed that China, using its credit, which is largely the debt of the United States to China, to use that as a resource of credit, and capital, for cooperation with Russia in developing the essential systems, centered on transportation systems and power systems, in that part of the world, that part of Asia. There are now negotiations going on, supplementing what has already been agreed to by Russia and China, with India. There is a potentiality of the United States.
Because if, the United States, which is in a disastrous condition, which has a vast debt to China and other countries, because of the mismanagement of this place—if we cooperate with Russia, China, and India, which is a great part of the population of this planet, and include other nations of Asia, such as Korea, Japan, Mongolia, and others, which are eager to cooperate in such a venture; and if you take into account Pakistan, which is totally unstable, and rendered unstable by what’s going on in Afghanistan and other parts of that region, and the fact that India’s aware that the very existence of India depends upon the security of Pakistan, in dealing with this problem which the British are trying to build up in Afghanistan and elsewhere—you’ll find that nations, out of desperation and awareness of their threats, and awareness of their interests, are beginning to move in a direction toward collaboration in changing this system—if the United States comes to its senses. And it’s up to Americans here, to a large degree; Americans have got to stand up on their hind legs.
Don’t pay any attention to what Democratic Party leaders tell you. Don’t pay any attention to these other factors. Don’t pay any attention to the press. As I’ve told you—and it’s a fact—this system is coming down. It has been coming down since July-August of 2007. We’re now at a breakdown phase; you can not predict the exact date of breakdown, but you know we’re in a breakdown phase; we’re at a point where there’s no way up, and you’re already sliding down! And one little mistake, by the Obama Administration or something like that, would be sufficient to blow the system out. It would have that little trigger event.
But we’re not waiting for a trigger event, which says, we either have a depression or we don’t have a depression. We already have a depression. And whatever happens on whatever date, this system is doomed, under its present policies. There’s nothing that can save the United States, under its present policies now. That is foregone. There’s nothing awaiting the American people out there, except doom, right now!
We could reverse that! And how will we do that? Simple! Use our Constitution.
What do we do? We go back to Glass-Steagall. We say that all banks which are commercial banks, or which used to be commercial banks, will now be put through bankruptcy reorganization, of the type that Franklin Roosevelt specified back in 1933. That would mean, that we would look at all the accounts in these banks, and those that conform to a Glass-Steagall standard will be protected, under bankruptcy protection by the U.S. government. Those parts which do not conform to a Glass-Steagall standard are—whissskk! Gone! “Look, Ma! No more money. It’s gone!” These banks are gone. This system is gone.
We now have a shrunken financial system. Many billions, even trillions, of dollars have been wiped off the books, in a great bankruptcy reorganization, which does have certain similarities to what happened in Weimar Germany, in November-December of 1923: Suddenly, all the worthless paper was—whhhsk! gone! Except, they didn’t have a good system to handle it. We do. Our system. Under those conditions, we can then use our Federal system to create new credit to rebuild an economy. But it means wiping out most of the loose-money people, who have control of our financial system today. We’re talking about tens of trillions of dollars being wiped off the books. That’s the price that has to be paid, if we’re going to get an economy that can survive. That’s where we stand. That’s what has to happen.
And only if people recognize, that we have to get to that point now, is there any chance for any future for this country. This is reality! Don’t ask your forecaster; they don’t know anything, they’re always wrong. This is a fact. Look in every neighborhood, look at the conditions of life. Look at where industries used to exist. Look where the agricultural sector is collapsing. Look at the tent cities that are being shut down. Look at the condition of health care.
And then look at the financial situation. This system is finished. This nation, in this form, is finished.
However, if we have the guts to put the system through bankruptcy reorganization, this nation can survive. It will survive on the condition that we make an alliance to break the power of the British Empire, and the British interests internationally. That means, making a partnership with Russia, China, India, and other countries, to eliminate the present world monetary system; eliminate the present monetary system, and go to a credit system, which is the system adopted by the United States, before our Constitution was actually formed, under Alexander Hamilton, in dealing with the war debt of the United States in the early 1780s; it then became an integral part of the foundation of our Federal Constitution, at a later point. So, if we go back to our Constitutional standard of a credit system, and join with Russia, China, India, and other countries, and also get a bloc of a credit system, we have the power then, with the support of other nations who are looking for a solution, to eliminate the imperial system, the monetarist system, which runs the planet today. That’s our only chance.
If we don’t have the guts to do that, we have nobody else but ourselves to blame for not doing it. And that’s where we stand.
So that’s what my function is, and my function is here.
Look at what we have to do, look at how this system works: We require large-scale infrastructure; we don’t have industry any more. We have some of the elements, the rudiments of what used to be industry. But the auto industry is gone! The aircraft industry is going. The machine-tool capabilities of the United States population are disappearing. There are some places that are still providing work, but they’re diminishing in number and less in character. Look at areas where there are store systems, we had whole sets of stores in cities, and so forth, that were functioning—they’re closing down, they’re vanishing. A similar process is occurring in Europe. We have a worldwide collapse of the system.
Defeat the British Empire!
And there is a factor behind this; this is willful. This was the struggle of the American Revolution. In 1763, you had the conclusion of a Seven Years’ War. The Seven Years’ War was organized by the British East India Company, which was a private company, and it got the nations of continental Europe—minus the Dutch, who were in on it, with the British—to organize seven years of warfare among the leading nations of Europe. A peace was reached in February of 1763, after Europe had been essentially ruined. And out of this war, the British Empire emerged, not as an empire of a British nation, but as the empire of a British company, the British East India Company. Out of this, Canada was surrendered to the British. The naval power was surrendered to the British; India was surrendered to the British; and in the process, other parts were surrendered to the British. And this went on, until the East India Company was dissolved in bankruptcy, and Queen Victoria took over.
And so, we’ve had an empire on this planet, the British Empire, ever since. The only effective opposition to the British Empire—there have been nations which had effective resistance, but the only real opposition has been the United States. A key case is Germany, and it’s important to look at Germany today, to understand the kind of situation we’re in. That Bismarck, the leader in Germany, the Chancellor, was a bit of a genius. He had problems in terms of the German royal family and its British connection, but he was a smart fellow, a very capable person, who led Germany in the right way, even though his government sometimes went the wrong way. And he was the fellow who worked with the United States to introduce the U.S. system, the same U.S. system associated with our tradition and with the government of Abraham Lincoln. He used the model of our economic development, for Germany. And from 1877 on, until 1890, there were great reforms in Germany which were all based on the introduction of some of the social reforms and other models of the United States, and the initiative of Bismarck.
The British, however, at that time, who were pained by the fact that we had defeated them, by our victory over the Confederacy, which was a British puppet, were again trying to get back their imperial power. And the way they intended to do that, was to get Germany in a war with Russia, and in some degree, Austria, but mainly with Russia.
The problem they had at that time—because in order to have a war with Russia and Germany, they had to have France in as a tool for the war against Germany. But they couldn’t do that, as long as Bismarck was Chancellor. Because Bismarck as Chancellor sabotaged the efforts of the British monarchy to start a war, with Russia, a way of getting this war started. Because Bismarck, among other things, had made an agreement with the Tsar of Russia, that he would sabotage any attempt to get Germany into a war with Austria in the Balkans, which would trigger a war with Russia. So the British solved the problem, in part, by getting Bismarck dumped, by Wilhelm II, who was the nephew of the Prince of Wales, Edward Albert, the later King Edward VII, who was starting the war.
So, Bismarck said later: This is a new Seven Years’ War.
Because the way in which the empire, the British Empire, like empires before, had controlled the world, was by getting other nations to make wars against each other. And by getting other nations to fight each other over issues, then the imperial force could come in and take over, on the ruined combines of a nation—the way we were ruined in Indo-China!
We were a powerful nation, still, under Kennedy. We were dragged into a long war, technically from 1964 on to 1975, which ruined us! This was the way we were ruined! And we’re still suffering that effect. That’s the way Johnson became President; that’s the way that Carter became President, a Presidency which ruined us. We’ve been ruined ever since, by playing into land wars in Asia, and other kinds of conflicts derived from that, by which we destroyed ourselves.
Take the classic case, the so-called Middle East war. What’s the Middle East war? The Middle East war was organized by the British! When was it organized? It was organized at the end of the 19th Century. It was organized on the anticipation of the collapse of Turkey, of the Ottoman Empire. So they organized a thing which they called the Young Turk movement, which was run out of London, and used various people from various kinds of operations; and the intention was, to take the Ottoman Empire, dismember it, and turn the whole region, including Iran, and other parts there, as well as Palestine and so forth, the Arab world, and turn it into an area of permanent warfare. And this was called the Sykes-Picot agreement, which was instituted at the end of World War I. We are fighting wars, or watching wars, in Palestine and elsewhere, today—and everyone wants to try to find peace with the Israelis and Arabs, and they’re never going to find it! Because the war is being run from London! Every time there’s a threat of peace breaking out in the Middle East, London organizes new warfare between Arabs and Israelis. The war with Iraq was a case of this; the attempt to get a war with Iran is a case of this! What happens in parts of Africa is a case of this.
We are subjected by the British Empire to this kind of policy of warfare as a way of inducing us to destroy ourselves, and to destroy our power. And the same method is used, that was used against Bismarck.
What happened with that? Go back to 1890: Bismarck’s fired. Next thing, the President of France, Sadi Carnot, is assassinated. After that, the Mikado and the British emperor—the Prince of Wales—agree to start a long war. The agreement was, that Japan would undertake a war against two enemies. First, against China, and Russia. Second, at a later point, in the beginning of the 1920s, the British and Japan agreed on a naval conflict against the United States, to reduce U.S. naval power. At this time, in the 1920s, the Mikado of Japan agreed to build up the Japanese Navy for an attack on Pearl Harbor, as part of this British-Japanese alliance against the United States. This war of Japan against China and other parts of that region, continued until 1945. The war in Indo-China, in the post-war period, was the same thing. Ho Chi Minh was an ally of the United States. I was in military service not far from there at the time, in northern Burma; and we were operating out of Myitkyina—it was the most advanced airport, or set of airports in northern Burma, which was not only supplying, jumping “across the Hump” into China, but also from there, we were also operating in Thailand and operating in Indo-China. And the OSS [Office of Strategic Services] was operating in Indo-China and Ho Chi Minh was an ally of the United States.
So, what happened? Franklin Roosevelt died on the 12th of April, and shortly after that, Truman, under the influence of Churchill, moved in, to have the Japanese reoccupy Indo-China, under British protection! And this led, through a long series of things, to a permanent state of warfare in Southeast Asia, that area. And we got ourselves into a war in 1964 to 1975, in Indo-China, as a continuation of this process. And we were bled, by that war! Morally, spiritually, otherwise—we were bled. That’s how the game is played.
And we say, “Who’s our enemy? Who’s the guy we don’t like? Who’s the guy we gotta beat?” We’re idiots! We get ourselves into wars with people who are not really our enemies, but who can be made into enemies if you annoy them enough! And we fight those wars, and long wars, especially long wars in Asia. They do the same thing in South America and Central America. These wars are not caused really by conflicts, endemic conflicts among peoples in these countries! They’re organized! They’re provoked, they’re orchestrated. And it’s the British system that does it.
So, we’ve come to the point, that the British have decided to eliminate this problem. And the one problem that was in their way—because Europe was destroyed again and again by wars; Asia was destroyed again and again, by these wars, orchestrated wars, orchestrated in the interests of the British Empire; but we still remained, despite the damage done to us, and the bad influence. And the decision finally came to destroy the United States. And that was done, beginning systematically, on the day that Franklin Roosevelt died. We have been played, as our ever-loving British monarchy, monarchical friends, since that time, to get us involved in ways in which they conquer us, by inducing us to destroy ourselves. By weakening and destroying ourselves.
The British ‘Green Policy’
Where do you think we got this idea of the “green policy,” of the environmentalist policy, where do you think it came from? It came from London. What has it done to the United States? What has the environmentalist policy done—it’s a fraud! There’s no truth to it whatsoever. There is no phenomenon of global warming! It doesn’t exist! But how many people believe in global warming? It doesn’t exist—they’re told to believe it. Who tells them? Prince Philip, the British interests, and their sympathizers in the United States. Who tells us we shouldn’t have nuclear power, which is what we need?
We’re in a situation, now—let me just go through this:
The way an economy works, is that we rely upon developing increased power. We start, as mankind, with things like burning wood. Now remember, mankind is different from all animals, in several respects (except some people, who qualify as animals, hmm?). Mankind is a fire-bringer. Mankind is the only living creature which uses fire as a method of existence. For example, you go to ancient sites in Asia and elsewhere, and you find, a million years ago, or so forth, and you find sites, where evidence of something that looks like man, in remnants, existed, and the interesting thing is, you find there are signs of human ancestors having lived there, and also the use of fireplaces, the use of fire by man. The only creature on this planet that uses fire as a means of existence, is mankind. And that has something to do with the human intellect.
Now, we depend, for a living, on what nature provides us to take. And thus, we go to higher and higher standards of combustion: We go from charcoal and things like that; we go up through coal, to coke, to natural gas, to petroleum, and so forth. But we’ve reached the point, that we can no longer rely upon these sources of power, because they’re not sufficient. Because the way we live is, we use power; we use things like ore, wood, for example, but especially things like ores. And the ores we take are from the upper surface of the planet, and they are effectively the dead bodies of plants and animals that lived a long time ago. And the way it works is, we had different parts of the planet that were under water. And in these different parts of the planet, you had forms of life, that grew in these watery areas. Take the case of iron: You get iron ore from areas where there was once a lot of water! And in this water, these microorganisms and other organisms grew, and they died. And when they died, things happened. Now in some of the most important areas, these little animals or plants, lived on iron, iron as a metal. Now iron is distributed throughout the surface of the planet. But how do we get iron? We get iron, because plants and animals use iron, what they pick up from their watery environment, and when they die, they have collected iron, and created an area of deposit, where there’s iron. And that’s how we get iron.
So then, we come along, and we find where the iron is most heavily concentrated, as in the case of other ores, other mineral deposits. We mine that, by the use of power, to use that material as a rich—shall we say, a rich lode of some raw material. And our society depends upon the relatively richer kinds of raw materials of this type that we use.
Now, what happens if we draw down the richest stores of these kinds of ores, which are left there kindly by deceased plants and animals? What happens, if we want to have some of the same ore? We’ve used up the richest ores. You have to get more power; you have to go up-scale, to what is called higher energy-flux density. We’re now at the scale, where we can not really maintain the civilization on this planet, without nuclear power. If you don’t have nuclear power, you can’t make up for the fact that you have to use relatively marginal resources. It’s not that we’re running out of iron. There’s still as much iron in the world as ever before, unless we take spaceships out there from them. That’s not the problem. The problem is, we’ve dispersed it, we’ve used it up in a certain way, and we have to recover it, or we have to find new sources of this ore. And therefore we have to have nuclear power.
We have come to the point—you can not have a planet, maintain a population of this type, of 6.7 billion people, you can not do it without nuclear power! And that’s not enough! Because we’re going to have to use thermonuclear fusion power, which is a higher energy-flux density, in order to be able to supply our needs, with at least the same quality of life that we’ve tried in the past with lesser means.
So therefore, for mankind to exist, mankind requires an increase in the energy-flux density of sources of power available. Which means going from burning of wood, or charcoal, or waste, up through other things, including petroleum and natural gas. And you find that you have to go to a qualitative level beyond that, for mankind to survive: And that is, nuclear fission is your first step. But you have to go three orders of magnitude or higher than that, which is thermonuclear fusion. And we have some possibility for thermonuclear fusion now, on the Moon, in the form of helium-3 deposits from the Sun, in that source. But, we’re going, of necessity, into a thermonuclear fusion economy.
What do the British do? The British say, “You shouldn’t have nuclear power. Nuclear power’s dangerous. You should use solar power.” Now, solar power is idiocy. Take an example I was referring to again yesterday: Take the case of sunlight, solar power. Solar power will destroy mankind—why? And how?
Life on this planet—again, come back to it: chlorophyll. And chlorophyll is one of three general modes on which life on this planet generally depends. If we use sunlight, directly, as it impinges upon the surface of the land, we will destroy the world. The way we use sunlight intelligently, is by chlorophyll. There are two other modes of use, also, but let’s take the case of chlorophyll.
Chlorophyll is the major way in which mankind is able to make the planet habitable. Because the little chlorophyll molecule, which looks like a polliwog, and has a little head like a polliwog’s head, and has a tail—it collects the power from the Sun through a tail. And in the head, a marvelous little process occurs, in which the energy-flux density of the sunlight power, is now converted into a much higher form of power, relatively speaking. And this conversion to a higher form of power, not only enables us to develop the land, in terms of other plant life, and the effects of plant life—for example, the sunlight applied to chlorophyll will generally give us a 1% benefit in grasses, from all the sunlight radiation; and in trees up to 10%. So that the ability to inhabit this planet with plant life—and this is true of the oceans as well—depends upon these kinds of processes, which take sunlight, and convert it into a higher form of power, with chlorophyll. That, therefore, creates the conditions of life which humanity requires.
What do they tell us to do? Go to solar power! If you cover this planet with solar power, in terms of an area capable of sustaining some semblance of life, you are going to destroy the planet. Who tells us we have to do this? The British monarchy: Prince Philip’s World Wildlife Fund! These characters.
We are the target of an intentional destruction of our nation and of civilization, by a kind of culture which comes out of a kind of a relatively dark age of imperialism, back in ancient times. And they’re turning us back to ancient times! And we’re like fools—we say, “We believe in green”! We become greenies. We’re idiots! We’re destroying ourselves.
And that’s how the enemy operates. It’s sort of like the Satan principle. Satan is out there to induce us to destroy ourselves, right? And who is Satan? It’s called Prince Philip. Or people like that. And that’s our folly here.
A Global Strategic Threat
So, what I did recently, in this connection: There are some gentlemen, Russians, who are known to me—scientists, they’re in their seventies and eighties, which for me, it’s good. Seventies and eighties are good; my best memories come from the seventies and eighties. I took steps to try to solve this threat to our existence. And I have dealt for some time with efforts to get Russia, particularly, and China, but Russia in particular, and India, and I’ve been doing that for some decades, to enter into forms of cooperation with the United States, where I knew that our people in the United States, when rightly advised, would want this kind of cooperation.
And this becomes particularly important, now, because countries which technically should be viable partners of the United States, such as Germany and France, are presently not, really, at this time. They used to be more so; they’re less so now. And unfortunately, they are presently under the control of the British, which means that they don’t have real freedom. They’re not independent powers any more. They would like to be powers again, and can become powers again, but the trick is, first of all, we’ve got to break the system. And my concentration is: Okay, the United States, Russia, China, and India, and other relevant countries, if they band together, can change this system. And I’ve been working at that for a long time. And I’ve gotten into troubles with various people because I did it. But I knew I was right.
Now we come to the point that there’s no chance of saving this planet, with the British system, or with a United States under British influence, which is what the Obama problem is. Obama is a puppet of London. He’s not an American! I don’t know where he was born, exactly; that’s been debated all over the place; I will presume that he was born in Honolulu, or some place like that. But I don’t know it; I’ve just heard it, and some people have told me it’s official. But that’s not the point. He’s a puppet of Tony Blair. That’s how he came into existence. He’s from the Chicago mob, through Tony Blair. He’s utterly incompetent; his policies are evil; his intentions, as expressed now, are evil. But if you have a powerful government, well organized, you can take even a slug like him, with his problem, his balloon head, and his draperies, and his shoes, and you can make something out of him, by putting him in the White House and having him surrounded by the right influences. It’s easier than shooting him, and it’s much more humane. And it’s much nicer to have him credited with having accomplished something which he hates—which his owners hate.
So, the point is, now, we have to get the United States free of the Obama problem. If we don’t get the United States free of the Obama problem: “Look, Mom, no more United States. And no more Europe, either.” So this issue of the United States, Russia, China, India, and some other countries, as a cooperative bloc to destroy, once and for all, the British Empire, and what it represents, is the only chance for humanity now. Otherwise, you are headed, inevitably now, for a permanent dark age, for a long period of time, maybe two or three generations. We now have 6.7 billion people estimated; we will go down to 2 or less, in a fairly short, rapid rate, unless we do this. So this is a very strong incentive. And some countries have realized that they’re in danger.
For example, as I mentioned before, you have the case of India: India has had a long, well-orchestrated conflict with Pakistan, which is organized by the British Empire, by the British monarchy itself. But now India recognizes that Pakistan is not its great enemy! That the breakup of Pakistan would mean that the entire region, the so-called Islamic region, would be destroyed. And if that were destroyed, then India would be destroyed. India is now smart enough to recognize that it needs to have a cooperative relationship with Pakistan, and some other countries, and influences in that region, to defend itself! And therefore, to do that, it must have cooperation with Russia, China, Mongolia, and so forth.
And therefore, in that part of the world, there is a very strong tendency for recognizing these problems and these possible solutions. It is also recognized, that this type of solution is not possible without the participation of the United States. And that’s what I’m up to. And I’ve been dealing with Russian circles, and talking with Chinese circles and so forth, and Indian circles for some time, off and on, and recently, more seriously. And we’re now at that point: Were I President, there would be no problem with this. The United States, Russia, China, and India, and other countries in the region, will and can cooperate, if allowed to do so. It’s in their interest to do so! All we have to do, is have the right interest in the United States, and we can pull it off. We can save ourselves from this mess.
Mobilize the American People
If we don’t, if we start to say, “Well, maybe Obama will work out,” kiss your—something—goodbye. If you think that these policies can be tolerated, kiss it goodbye. If you think you can adopt Hitler’s health-care policy through Obama, and survive, die! It’ll be more merciful than the alternative.
And therefore, we have to recognize that we have to mobilize the people of the United States around the idea of bringing this Presidency under control, and bringing it under control through a partnership with the United States, Russia, China, India, and other relevant countries. If we do that, I can practically guarantee, that Germany and France will tend to join. They have the strength to be able to join, under those conditions; they will kick the British out, then. They won’t like it, but they’ll do it.
So therefore, we can save the planet. But it’s up to us in the United States, to deal with this Obama problem, to recognize the Hitler mustache on his upper lip. And if you can’t recognize the mustache, the Hitler mustache on Obama’s upper lip, you’re not a patriot!
You may call yourself a Democrat, but Democrats are getting scarce as hen’s teeth these days! Even people who are running as Democrats, are calling themselves Independents and running on both the Republican ticket and the Democratic ticket as Independents! It’s getting hard to find a Democrat anywhere!—except maybe Mrs. Pelosi will grow a mustache or something like that, to cover up her defects.
But this is the situation. And look at the other situation, which I’ve seen: Do you know 80% of the American people hate this President? They don’t particularly hate him as such. He’s not really a hate object; he’s more or less of a lump. But what they hate is the people that they believe betrayed them. Because the American people don’t think of Obama as one of theirs. African-Americans used to try to think of Obama as one of theirs—it was a hopeful thing, but it wasn’t there. They began to find out what was really there, and that’s not working! But Americans do not really hate Obama: They despise him. That’s a difference. They don’t think that shooting him is what has to be done.
They think, Americans think, that their representatives, in the Congress, whom they voted for, have betrayed them. You saw that, in August, in the turnout, which was really a mass-strike movement. You’ve seen it again, popping up again, and again: The American people consider that the members of Congress are the people who betrayed them. They think that the leadership of the parties has also betrayed them, but they’re picking out, especially, the members of Congress, who are considered traitors to them! And therefore, they’re perfectly willing to call themselves Democrats, but they don’t want to be called Damnocrats, these types that they have contempt for.
And therefore, our problem, is to organize the American people to realize what they already feel: Eighty percent of the American population hates what’s happening to the United States! That’s a fact. I don’t care what other statistics people get, I know these facts. Eighty percent of the American population hates their representation. The Republicans are smarter—they’re pretending to be almost Democrats, to try to pick up the votes, hoping that they can take the seats by appealing to the former Democratic voters to come over to the Republican Party in the next election. That’s the game they’re playing! They know the health-care policies of Obama are hated, because it’s Hitler-style genocide. They know that. And they know people don’t like that! They don’t like to be killed! They don’t like to see their grandmother snuffed. Or their kids snuffed—they don’t like it! Strange, you know? They know that this health-care program is mass murder. It’s only stupid politicians who refuse to recognize that it’s mass murder—it is mass murder! It’s Hitler-style mass murder! (Of course, I’ll tell you a secret: The British invented it. They invented Hitler!)
So, why are you, American people, out there, putting up with something that the average citizen, 80% of the citizens, really hate? And they don’t hate Obama; they hate the Democrats! The Democrats who vote for Obama’s policy! Because their attitude is, and they’re right: Okay, Obama’s an idiot. More and more people are going to recognize that, as time passes on. But they don’t hate him! Because, they say, this could not happen, if the Democrats in the Congress had not sold out. And it’s those Democrats that they voted in, two years ago, or a year ago or so—those Democrats, the ones who they feel betrayed them whom they hate.
Obama, to them, is just a fool. Anybody who thinks seriously, who hears him talk and sees what he does, and so forth: The man’s a damned fool. He’s an empty head, with these three teleprompters to guide him in talking. (If you got a fourth teleprompter in there, you probably would really screw him up! You know, just one, with a Mickey Mouse something or other, he’d squeak in the meantime.)
So, our problem is, the American people don’t recognize, that a people has to survive, by showing leadership, when a people as a people must show leadership. Not as anarchy. The problem is, we saw with the demonstrations publicly, in the month of August, and we’ve seen since: The average American person was saying, in August, visibly, and has said more recently: “You!” they said to the members of the Congress, coming out in front of constituents—they said: “You! Shut up! We want to tell you what’s wrong with you! We want you to listen. We don’t want you to talk now. We don’t want you to explain now. We want you to listen!” They’re assuming that the politician—they still control him. They elected him! Or they thought they had elected him. They thought he was their representative. They see, he’s just another Pelosi. And they’re angry, because they think their friends betrayed them! They don’t consider Obama their friend. They don’t think Obama betrayed them—yes, African-Americans, many think they were betrayed, but that didn’t last too long. They began to realize what the truth was.
But what the American is upset about, is the members of Congress, who betrayed them. Look at the recent votes, the two recent votes on health care. First of all, Obama’s intention is Hitler’s! If you vote for Obama’s health-care policy, you’re voting for Adolf Hitler’s 1939 policy. That’s exactly what you’re voting for! If you support a candidate, or a person in public office, who’s supporting Obama’s policy, you are supporting a Hitler policy! Now, Hitler didn’t invent it—the British did. But Hitler was a British puppet; he was created as a British puppet, who went awry as far as they were concerned, and they had to get rid of him. But it was Hitler’s policy, which are the policies of the royal family’s World Wildlife Fund, Prince Philip. Prince Philip has a genocide policy! You don’t need Hitler! Prince Philip is much more vicious than Hitler was! His whole family is! Al Gore is practically a Hitler man, on the same kind of policy—he’s a liar and fool, and complete agent of the British interests.
So, the American people react, as you know them and as I know them; they react to a sense of being betrayed by their friends. That’s where their greatest anger is. You know, most killings occur in families for that reason. Hatred is the greatest against the person you’re close to, who’s betrayed you—you know, the child against the mother who they think has betrayed them; or the father; or the cousin; or the sibling in their class, or the teacher; or some local official. The person who hired them and fired them—these are the people who stir up the greatest emotion in the typical American, these kinds of cases. And that’s what the people are saying. And now, the Congressmen, who are frightened cowards, are running to Obama for succor! Against whom? Against the people who voted for them!
And therefore, you Americans: Better wake up. You’ve got to understand how you think and what you think. And recognize, that you’ve got to get this man, whom you elected President, you’ve got to bring him under control! We don’t want any shooting around here. We want him brought under control. And some people in Washington know what I mean by that: He’ll be in the White House. He’ll be there! He’ll sign the bills! And we will take care of his teleprompters for him—he won’t have to worry about what goes on those; we’ll take care of that for him. It may not come out too clearly, but it’ll be there. And the American people will say, “We have a President, again.” Why? “He’s ours.” What do you mean, he’s “yours”? “We control him.”
And that’s the way the job has to be done.
And the way you control him, is by bringing under control those who need to be brought under control: first of all, your own elected representatives, who are supposed to be your bosses; then, you’ve got to get the institutions to function under control.
You’ve got to have an assessment, a practical assessment of what has to be done on this planet, to stop what is now a presently onrushing, inevitable, general breakdown crisis, of the entire planet. We can stop it. We made an important step in that direction, right after my trip to Rhodes. It was done by the Russians and the Chinese. And contrary to some doubts on the Russian side, the Chinese did do what I knew they would do. They made an agreement, of historic importance. There is discussion with India, and with other countries in that region on the same thing.
We need to bring the United States into line, on this policy: Put this President, in the White House, under parental supervision. Maybe his grandmother—but she’s not available any more. Bring him under parental supervision: He’ll sit there, he’ll sign the laws, he will authorize the speeches, he will do all these things. He will be informed on everything. But, he will be in the White House, and under management. And we will kick the butts of the members of the Congress. And we will go to cut the deal with Russia, China, and India. We will bring other countries into that: Japan will come quickly; so will Korea; so will some other countries, come quickly into that.
No Solution Without the U.S.
And we have to save this economy, we have to put this entire economy through a Glass-Steagall type of reform—immediately! We must take all banks which had any characteristic of commercial banks in them; put all these banks under government receivership, in bankruptcy. Put them into bankruptcy reorganization by a Glass-Steagall standard, the one that used to be on the books, that we know we have to return to. Keep the commercial banks functional. Those which are bankrupt presently, put them back into operation! Because people had their savings there, and we have to defend that.
Then utter, by cancelling all this worthless paper, maybe $20 trillion worth in worthless paper, cancel it! It’s fake money! It’s not honest money, by Glass-Steagall standards. Then, create, by a Federal act, create something which Roosevelt would have done: Create a reorganization of the U.S. economy.
Now, we have destroyed most of our industries. We have almost lost the skills that were concentrated in the auto industry, for machine-tool design and similar kinds of skills. We’ve lost the ability for major infrastructure. We’re about to lose the last remnant of the aircraft industry. We’re losing our machine-tool capability. We do not have functioning industries, of the type we used to have ten years ago! We’ve lost it. We have communities that are disintegrating! What we’re going to have to do, is have a mass program of basic economic infrastructure of the type that requires a maximum emphasis on agriculture and machine-tool design, in order to make sure to get the highest levels of technology functioning again, immediately, in this country. We’ve got to get to a full-employment program, which is not a make-work employment program, but one which is of infrastructure, which is actually building the skills and productive powers of the nation.
We’re going to have to cooperate among nations, to enhance this capability. We’re going to have to have a 1.5-2% basic interest rate for these kinds of projects, which will be authorized by the Federal government. We’re going to talk in terms of 50-year and less, shorter types of investments by the Federal government. We’re going to build a mass transit system. We’re going to build a nuclear power system, beyond anybody’s imagination today. We can do it! All you have to do, is start doing it, and you can replicate the project, and train more people in it.
And that way, we’re going to save the nation, we’re going to save the planet. We will find that Europe, probably beginning with a phase in Germany and France, which are nations which have the greatest relative potential for getting back into business—except for the greenies in Germany. We’re going to have to start to do that. We’re going to have to continue and expand the general program of development for Africa. We’re going to have to look at the countries of South America from the same standpoint. And within ten years, or less, we will have built—rebuilt—for the United States, a semblance of what we once thought we had, in modern terms.
That’s what we must do. And you, in the United States, must do it! You must organize those in the United States to do exactly this! Because, I can tell you, that Russia is prepared to do this! China is prepared to do this! There are 1.4 billion Chinese! That’s important. There are over a billion Indians; they’re important! Russia commands one of the greatest raw materials potentials on the planet, in the Arctic region! We have in North America, we have in Canada, in Alaska, we have a similar potential for development, in the Arctic regions and the sub-Arctic regions. We can make a revolution on this planet, rapidly, within ten years—easily! We can change things, to get us moving in a completely different direction.
But the problem lies, not with who we criticize, outside in other nations, though criticism must be made—we have to look at ourselves! We are the supposedly great power! We are the nation, which inspired modern society! We have to kick our people in the butt, and get them to organize themselves, for no less a purpose than their own survival! Because if we don’t, if we don’t organize our own people to clean up this mess, in the Congress and in the White House, and put it back into order, there isn’t going to be a United States. And if there’s not going to be a United States, there’s not going to be much of a world, either, at least for a long time to come.
So this stuff we’ve been doing, and putting up with, this debating, this question of popular opinion, this question, “We-ell, I don’t think . . . well, I’m not sure . . . but, somebody tells me . . . but somebody says differently than you’re saying. . . .” You know? Idiocy! Idiocy!! Cowardice! Corruption! When people don’t think things through, in a time of crisis, because they want to doubt, or they want to protest, or they want to raise some objection of that type—you’re the kind of people who’ll condemn themselves to Hell! And if they’re looking for it, they will probably find it.
So, the point is: It lies with us! The crisis is now. The time is short. The weeks ahead can not be wasted. I will be working during these coming several months, to try to put into place some of the agreements which are needed, to get this world out of this mess. But I need more showing from the American people, of all particular degrees. Let’s get up, off the ground, let’s mobilize, and let’s take charge! The mass strike movement which we saw in August is good, but it was not good enough! Because then, the people who were enraged were saying justly, “You! You! You!” To their members of Congress, “You shut up! Listen to us!” They didn’t say, “You! We’re taking charge.” And that’s the difference.