LaRouche: No Stability in Argentina Until a National Banking System Is Created to Issue Directed Credit for Job Creation
Jan. 4, 2002 (EIRNS)—Lyndon LaRouche, Democratic presidential pre-candidate for the 2004 elections, commented today that there would continue to be a succession of unsustainable governments in Argentina, until one of them determines to create a new, national banking system to reactivate the domestic economy.
As an expert observer, and one who forecast recent developments in Argentina, LaRouche noted:
"The creation of a domestic banking system which is protected from the international speculative bubble, and which generates credit to finance a million new jobs in the country, is indispensable for Argentina's survival. Economic depression, chaos and ungovernability will continue to haunt the country, until such time as a national banking reorganization is carried out."
LaRouche elaborated on the global situation shaping Argentine events:
- The world has entered the crucial, terminal phase of disintegration of the present international monetary-financial system. This is not defined in monetary and financial terms, but by the interdependent relationship between a world undergoing the presently accelerating physical-economic deflation in production of essential goods and services; and the fact that the collapse of the monetary-financial system can be delayed solely through accelerating growth of an already hyperinflationary financial bubble in leading financial markets.
- Thus, as long as governments cling to defending the axiomatic policy-shaping guidelines of the present international monetary institutions, each will be toppled by replacements, until the point is reached that those nations begin to disintegrate, or until governments appear with none of the essential characteristics of the presently leading contending political parties of the Americas, western Europe, and many other points of the map.
- These circumstances afford my associates and me a unique kind of authority of leadership. Two features of that authority are outstanding. First, the economic forecasts which I have circulated internationally during more than thirty years to date, are the only known forecasts which have been consistently correct, whereas all opposition to those forecasts, like nearly all Nobel Prize-winning economists, is now factually shown to have been essentially incompetent. Second, the so-called utopian strategic-military faction which has been increasingly dominant in NATO and other nations' affairs, during the past fifty years, has now brought the world as a whole to the brink of a devastating world-wide religious warfare, threatening to reenact the horror of the European 1618-1648 religious war on a global scale.
- In all that I have taught, and in all practice of my association's policy, over the recent thirty-five years of our existence, the standpoint of all our policy has been the unique quality of the American System of political-economy as the world's leading model of economy to date. Thus, although international conditions have undermined the institutions of domestic and foreign policies of practice, the affirmation of the original American revolution under the leadership of President Lincoln, and the resistance to American Toryism's corruption under President Franklin Roosevelt, give the tasks before the U.S. today the essential characteristic of being a fresh affirmation, of being not faced with the need for some novel approach, but, rather, the tasks before us during this time of accelerating world crisis, have the essential quality of a continuing American Revolution.
- We must therefore proceed with unshakeable confidence, that our contribution to world leadership at this juncture is indispensable. We must look to those lessons from the past, which had already demonstrated, that in times of great crisis, powerful governments, and even most established political parties and popular fads, are swept from the stage of history with stunning promptness. Decadent cultural fads are dumped into the rubbish-bins of history, with astonishing suddeness and ruthlessness. It is leadership based upon those ideas which are necessary for a time of crisis, such as this one, which is the only interesting, the only worth-while leadership available."
Returning to the Argentine situation, LaRouche explained:
"The current national banking system--90% of which is controlled by foreign banks—is totally bankrupt, and has ground to a halt. The only way to get it back on its feet, and to return to Argentine citizens their savings now frozen in the banks, is to create a new, reorganized national banking system. The central government would then use this system to channel directed credit, issued in an inconvertible domestic currency, to fund the creation of one million new jobs in the right areas, which would start the recovery of the economy. This, along with the debt moratorium which has already been declared, are necessary policy steps.
"In observing Argentina today, one is reminded of 1917 Russia, after the removal of the czar. As with the recent resignation of President De la Rua in Argentina, the czar was followed by a parade of successions. When does it end? In the case of 1917 Russia, it ended with the Bolshevik Revolution; here, in Argentina, chaos and revolution will be perpetual, if the crisis is not solved along the lines I have indicated."
This same world crisis, which is now hitting Argentina and a growing number of other nations, will be the subject of a major address which U.S. Presidential pre-candidate Lyndon LaRouche will be delivering before a Washington, D.C. audience on January 24, beginning at 1 p.m. EST.