LaRouche on Economic "Stimulus:" There's Too Much Sexual Financial Stimulation Already!
Jan. 18, 2008 (EIRNS)This release was issued today by the Lyndon LaRouche Political Action Committee (LPAC).
Econonist Lyndon LaRouche addressed proposals for economic stimulus in an international webcast yesterday.
"We have a bankrupt system," LaRouche said, "which is inherently bankrupt, in which the amount of monetary aggregate being generated to bail outas you see the bailouts occurring todayto bail out an inflated, explosive mass of financial aggregate, has reached the point that it is now going to accelerate at such a rate, that the question is, whether the U.S. economy, under its present policies, will outlive this current year. People who think they have money, are going to find they don't have any. People who thought they had vast savings, will find out they don't have any. That's the kind of world we're living in.
"And idiots out there, are saying, we're going to induce a palliative to some homeowners, we're going to "stimulate the economy. 'Stimulate?' What's that mean? More monetary aggregate! That's like putting more fuel in the fire, in the forest fire! The worst thing you can do.
"You have to go back to the Roosevelt idea, the Roosevelt conception. Put the system under bankruptcy protection, put it under control, and some things will have to go into negotiation, and some things will be paid; and that decision will be made on the basis of national interest and human interest, and human rights. That's our only chance....
"What we have to do, is forget monetary stimulation. We have to have a governmental control of the creation of credit. We must have a banking system, a regular banking system, which cooperates with government, in processing that credit into places where it's needed: New firms, infrastructure, so forth. Hmm? So, the creation of credit by government, not financial stimulation! You've got too much sexual financial stimulation going on as it stands now!...
"We don't stimulate a sick economy. We don't stimulate the sale of cocaine. We don't stimulate the spread of AIDS. We don't stimulate these things. What we do, is we concentrate on creating and supporting things which are necessary to cause the physical recovery of the economy.... So, it's not stimulation versus anti-stimulation; it's reorganization. And how do you do that? What you do is you go into the key parts of the economy, starting with homeowners, communities, and banks real banks, not the fake ones. You stabilize them under bankruptcy protection, Federal bankruptcy protection. Don't try to resettle the accounts, don't try to resolve anything; just resolve they're going to be under Federal protection. Then you have to go from there to other measures which stimulate growth."