LaRouche's Aug. 1 Webcast:
`The Fall of the House of Windsor'
Aug. 4, 2009 (EIRNS)--In his international webcast from Washington on Aug. 1 (watch Webcast at larouchepac.com, or read a transcript here), which he entitled "The Fall of the House of Windsor," American economist and political leader Lyndon focussed his remarks on the immediate two-month conjuncture, leading up to early October, during which time, he said, American citizens and political leaders must accomplish a dramatic reversal in economic policy, implementing bankruptcy reorganization of the international financial system. At the same time, LaRouche called for putting President Barack Obama in a "political cage," and kicking out of the government the fascist behaviorist crowd which is dictating Administration policies.
Accomplishing these two objectives, LaRouche said, will deliver a decisive strategic blow against the owners of the Obama Administration: the British Empire.
The crisis point from which to reference the present U.S. and world situation is the period from the 2nd of October through about the 10th or 12th of October of this year," LaRouche said. "As of that time, the already totally hopelessly bankrupt United States will have crashed entirely, politically, and will be in a process of disintegration—unless that process has started earlier. And it could start very early, in this present month of August.
Thirty per cent, or more, of the American labor force is unemployed. About one-third of that group is actually receiving compensation for unemployment, LaRouche said.
These people out there are starving, because they have no income," and they are increasing in great numbers. State budgets are collapsing, "the states can't perform functions, police forces are laid off, everything else is laid off, because the states are bankrupt. This process is going on now.
If we'd gone through with what I proposed, during the period between late July and September 2007, we would be out of the woods now." But instead, "what they did, is they, now, they created trillions of dollars of debt! Over $20 trillion of debt, which is sitting on the back of the United States, entirely artificial!
Who the hell came up with this other idea? Of getting the United States into debt, for obligations they didn't owe? In order to bail out London, to bail out the international monetary system? At the expense of the United States! To loot the United States and its Treasury, for the benefit of an international monetary cartel! What about 'bail out!' Whom did we bail out? Did we bail out our industries? Did we save the auto industry, or put it into equivalent form? Something else besides autos? Did we save the American farmer? Did we save the infrastructure of the cities of the United States and the states? Who did we bail out?
We bailed out the London bankers and their New York extensions. We don't owe them anything: We just happen to have a government that says that.
We only have to do one thing, now, because of what has been done to the financial system. This system is hopelessly bankrupt: We are never going to pay, one way or the other, we are never going to pay $20-odd trillion of debt, which we've incorporated among us, as a result of George W. Bush and this Obama. We're never going to pay it! We can't! We couldn't! Can never be done.
And therefore, we have come to the point, we have to go through national bankruptcy. Now, national bankruptcy is not a shameful thing.
A bankruptcy reorganization is "a very simple thing to do," LaRouche said.
We take all these financial claims against the United States, we put them on the table. Then, we take the Glass-Steagall model, and we say, 'Here is a bank. Let's go to the banks first—commercial banks, or what used to be commercial banks. Let's look at what is in this bank. Is this asset valid by these standards? Yes? Okay, it goes there. Is it not? Okay, we put it in the trash can.' And we go through that, case by case, in the same way that Roosevelt, in a much milder problem, did with the Bank Holiday.
We want to save people's savings, credit for business loans, for mortgages, and all commercial banks functions which are essential for community life. "We then will take all this trash, these claims, based on financial derivatives and other kinds of schemes: 'Sorry buddy! You gambled. This is gambling debts—you lost the gamble.'
Once the system has been cleaned out of the bad debt, we can create debt for development. The United States should enter a "pilot agreement" with Russia, China, and India, to establish "a new world credit system, to entirely replace the hopelessly bankrupt, existing world monetary system."
We will, then, generate, in the range of 1.5%-2% basic long-term loans, among nations, based on credit systems. These loans will be directed, largely, to the driver of technological progress in basic economic infrastructure.