Remedy for Viral Economic Plunge Has To Come from the Citizens
March 4, 2020 (EIRNS)—When we finished off the British at Yorktown in 1781, their army musicians, marching out in surrender, played a tune called “The World Turned Upside Down.” In this growing economic crisis, citizens must organize themselves and turn the world of economics upside down: Seize economic policy away from the City of London and Wall Street bankers and economists. Do that, or the financial system and economy will be triggered—maybe by globally spreading quarantines—to collapse once again, as deep as 2008 or worse. Lyndon LaRouche showed how the citizenry can seize economic policy and make it work in a crisis, back on June 8, 2014 in his “Four New Laws To Save the Nation.”
What the “top people,” the financial oligarchs, are selling in this crisis is their usual. Repeat 2009-12; do a “Barack Obama stimulus,” not too much, very “targeted”—that’s the viral word. Take care of Wall Street and the City of London by having the Federal Reserve print a great deal of money for them and let them borrow at zero interest for their speculations. The Fed, Bank of Canada, Bank of Japan, etc. have jumped into action. Cut the payroll tax to get the citizens to spend more money and collaborate in cutting their own Social Security benefits. Cut corporate taxes again. Barack Obama and Joe Biden did it all; it produced a decade of 1-2% economic growth a year, zero productivity growth, declining real wages, another financial meltdown coming.
But the central bank elite have a new element: Let the Federal Reserve also print money directly for the government to spend, and tell the government what to spend it on. They came up with this unconstitutional plan last August at a world bankers’ conference. They sweeten the plot with the words “new infrastructure,” knowing that citizens want to see new roads, railroads, ports, water systems built. But what the City of London and Wall Street experts mean by “new infrastructure” is windmills and solar panels blanketing the countryside while the nuclear and coal electric plants get shut down.
Lyndon LaRouche made clear the actions to deal with the crisis; they now have to be led by President Donald Trump—backed by informed and organized American citizens—in cooperation with other heads of state and government in a summit, soon.
Break up the City of London and Wall Street giant banks by restoring the Glass-Steagall Act, which thinking citizens and constituency organizations all want. This will shut down much of the pure financial speculation which has been ruling the financial system. Let the President know the way to lower the dollar—which he wants to do—is not to berate the Federal Reserve, but to make firm agreements with the other major powers to set stable currency rates. That will end $5 trillion a day in speculation on London currency markets, and give him the lower dollar value so America can export more high-technology capital goods.
Get rid of the Federal Reserve—replace it with, or make it into a national bank for credit to new infrastructure, manufacturing and industry. Involve other spacefaring countries in a dynamic NASA Moon-Mars mission to drive new technologies, and a crash program for fusion power to create scientific breakthroughs.
No combination of financier or Congressional “experts,” looking at this oncoming crisis, will arrive at the solution. The organized and demanding citizenry must take over.