The following article appeared in the Nov. 24 issue of Executive Intelligence Review (EIR). The full text of Mr. LaRouche's address can be found in the Nov. 28 issue of the weekly New Federalist newspaper.
On Nov. 16, dozens of state legislators and other elected officials from the United States descended on the nation's Capitol to give their congressmen and senators an urgent message on the need to clean out corruption in the permanent bureaucracy of the Justice Department.
The lawmakers were prepared for this mission in a day-long seminar convened in a Capitol Hill hotel on Nov. 15 under the title, "Why American Voters Are Rejecting Gingrich," where Lyndon H. LaRouche, Jr., the economist and political candidate who founded EIR, and members of EIR's intelligence staff briefed an audience of more than 100 people in detail on the inevitability of the financial crash. LaRouche has been a principal target of the anti-American coven inside the Justice Department, precisely because he advances a unique diagnosis of, and solution to, the nation's economic and monetary crisis.
Stating at the outset that the present wave of terrorism is the "worst" in this century, LaRouche likened the widening global conflicts to the conditions on the eve of World War I and World War II.
Only the President of the United States has the power and authority to prevent catastrophe when the monetary and banking system comes down, LaRouche counseled, after he had showed with a series of striking charts that the infrastructure and productive sectors of the American economy have been collapsing while financial turnover is growing at a hyperbolic rate. This could occur even before the November 1996 Presidential election. President Clinton is doing fairly well, so far, at dealing with Republican Speaker of the House Gingrich and his allies--whose deliberate actions in cutting Medicare and other entitlements, LaRouche equated with the war crimes of Adolf Hitler--but he must be given the support to make the definitive break with British "free trade" policies.
LaRouche's two-hour briefing was designed to arm each of the participants with a full comprehension of what had most of them completely puzzled--why the spiral of collapse and inflation is one in which everyone loses and no sector of the economy gains.
That afternoon, EIR's economics staff, in a panel chaired by Chris White, provided the analysis to back up LaRouche's contention that if the United States were a corporation, no responsible officer would hesitate for a moment in declaring the Federal Reserve System bankrupt. In the evening session, Jeffrey Steinberg showed how London's "assassins cult" killed Yitzhak Rabin, and Muriel Mirak-Weissbach presented her first-hand report from the development summit which had occurred two weeks earlier in Amman, Jordan, replicating the packet published in last week's issue of EIR.
The concentration of the audience was matched by the sobering circumstances in which the conference, jointly organized by EIR and the Schiller Institute, took place. Most of Washington, D.C.'s federal employees had been furloughed two days earlier, and the city's functions, which are subject to federal funding, were also sharply curtailed in the absurd showdown brought about when Republican insurgents in Congress decided to hold the entire government hostage to their ideological obsession with "balancing the budget in seven years" (see article, p.|60).
"But we've had a policymaking in this country, which is based on a 'balance of power' of two tendencies within the United States, in this century. One tendency, was a tendency which came out of the Confederacy.... Teddy Roosevelt was, by political pedigree, a Confederate. And he asserted that. He was trained by Bulloch, his uncle, who was one of the key agents of the Confederacy, who trained Teddy in politics and in strategy. Woodrow Wilson was a Klan fanatic. Both totally pro-British.
"So we've had, in this century in this country, two polarities, one which is the American interest, looking back to our constitutional tradition, and the other is the pro-British interest, which talks about the 'special relationship' with London, and tries to mimic British manners in American politics.
"It's a division, philosophically, between the heritage of Locke and Hobbes, which was the British tradition, or the empiricist tradition, and the tradition of Leibniz, Hamilton, and Presidents such as George Washington, John Adams, John Quincy Adams, Monroe, Lincoln, and so forth.
"So as a result of this conflict, we have made many decisions, particularly coming out of World War II, after the death of Franklin Roosevelt, which we should not have made. We have slid, half-unwittingly, into policies which have become our undoing, policies which are contrary to our most vital interests internationally and domestically."
London still has an empire, he said--just look at the strategic metals, food supplies, fuel, and populations the British Crown controls through institutions like the Commonwealth and metals exchange.
"We should make no apology for European civilization, for European Christian civilization," he went on, pointing to the fact that the Council of Florence, and the nation-state shaped by France's King Louis XI, in the 15th century, established the first form of government capable of realizing the creative potentials of each human being and uplifting the 95% of the population who, everywhere in the world, were previously forced to subsist like beasts. The Venetian financial oligarchy, the model for today's City of London and "Wall Street," was determined to block the nation-state. France, the first such nation-state, led the world until 1815, when the United States took its place.
Demographic history shows that man is totally unlike even the highest form of ape, because of his ability to create, thus exerting dominion over nature. LaRouche demonstrated this with a graph and table comparing human and animal populations, and the known phases of human history. (These charts are reproduced in the new pamphlet produced by the Committee to Reverse the Accelerating Global Economic and Strategic Crisis: A LaRouche Exploratory Committee, "The Blunder in U.S. National Security Policy.")
Then, with a series of graphs depicting U.S. trends over three decades, he showed that the productive labor force, manufacturing, and agriculture, as well as construction and transportation, have declined as ratios of the economy, while such ratios as teacher-to-student and working physicians to population have also declined dangerously. What has ballooned, is financial turnover. This hyperbolic growth in financial turnover, stemming from "betting" (not investing) activities, like derivatives speculation, is causing runaway inflation--not the growth in the money supply, he said. Since 1970, U.S. infrastructure has fallen apart and every category of production declined, he showed.
As for Gingrich and his Conservative Revolutionaries, LaRouche said those who claim government has no role in the economy are either ignorant of American history, or liars. "Free trade" is a lie that goes back to the Englishman Thomas Hobbes, who actually asserted that virtue can come out of vice!--the origin of the idea common to many libertarians on Capitol Hill, that interaction of "market forces" motivated by greed, can lead to good.
"And if you know the authors of the Constitution the way I've learned to know them intimately, partly from their writings and partly from knowing other things, the most wonderful words in the Constitution are: 'to secure these for ourselves and our posterity.'
"What is posterity? Is it the people next year, is it the people 10,000 years from now? 'The blessings of liberty, and to promote the general welfare.... To secure these blessings for our posterity.' Posterity is all humanity; our people, all humanity.
"We are on Earth with a mission to perform, like a soldier in war. If we fulfill that mission, we have done well. Like a soldier in war, we can not win the war alone. We must commit ourselves to a mission of winning that war. We must mobilize ourselves to achieve that. That's in our Constitution.
"We have a great nation; or what's left of it. And we have to recognize that and use that. And we have to re-dedicate this nation to its purpose.
"If we do that, the aching nations of the world in our own hemisphere, in Africa, in Asia, Eurasia, will join us. They will work with us. We need the power of the United States to bring about that change. We need the power of the United States to mobilize the world to get rid of the British monarchy," he concluded.