Europe: The Meltodwn LaRouche Warned You About Is On

May 6, 2010 (LPAC)—European developments are simply playing out what Lyndon LaRouche has been trying to warn people about all along: that the entire system is disintegrating, and that it is happening now. "Idiots will disagree," LaRouche said on Wednesday, and perhaps act surprised at this or that turn of events. But it is all now collapsing exactly as LaRouche said it would.

Yesterday, markets throughout the world continued to decline and the euro fell to below 1.29 to the dollar. The price of gold went up, including a 27-year high in Japan as the crisis continued to spread.

Spain and Portugal are now totally in the barrel with Greece. Moody's announced that it was "reviewing" a possible downgrade on Portugal's debt — but announcing it, means that it has already happened. As Spain's stock market crashed for the third day this week — led down by the Inter-Alpha group's Banco Santander — Spanish Prime Minister Zapatero tried to hysterically deny reports that Spain has gone to the IMF and the EU to discuss a EU280 billion bail-out, calling it "complete madness."

As for Greece, talk of outright default is in the air. One economist from the London-based Capital Economics firm said: "The economic pain that such belt tightening will bring suggests that it would be unwise to rule out a default further down the line." But "down the line" is actually now; the point is, LaRouche commented, it's all collapsing.

 WEBCAST 8. MAY

http://www.larouchepac.com

William K. Black's Theory of Corporate Fraud

William K. Black's Theory of Corporate Fraud

 

 

MORE:  
BILL MOYERS and William K.Black

http://www.pbs.org/moyers/journal/04232010/watch.html

ALLT UM CARACTER HRUNISTANNA !

http://www.icelandcrash.com/antisocial-personality.html

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• William K.Black and Bill Moyers Transcript

Schachtians Surface To Demand EU Dictatorship

May 5, 2010 (LPAC)—Three liberal European politicians authored an article in the April 30 Swedish Svenska Dagbladet, demanding that all EU bailout packages include a temporary withdrawal of sovereignty in economic matters, like the one Greece is about to get. The three are European Parliament Members Wolf Klinz (FDP) and the Olle Schmidt (Swedish FP), together with Swedish member of Parliament Carl B. Hamilton (FP), the Swedish henchman of Iceland. Clearly following the tradition of Liberal Party leader Hjalmar Schacht , these three detail the demands in three points originating from an article by Klinz:

1. The Stability Pact must be obeyed. "Member states breaking with the pact should lose their voting rights in matters of budget deficits and crisis measures and also risk withdrawal of EU funding for support of agriculture and economic structure."

2. The Eurogroup must have an automatic crisis mechanism, using the IMF but, furthermore, "withdraw, at least temporally, the sovereignty in economic matters of the recipient country or at least a great part of policy regarding taxation, wages, labor market, social welfare etc."† They add here, "It should not be excluded that lenders should be forced to contribute through debt write offs."

3. "The Stability Pact should be expanded to also include measures for financial stability and preemption against transnational banking crises."

Glass Steagall is Pivot for Recovery; LaRouche Addresses Diplomatic Luncheon

May 5, 2010 (LPAC) Lyndon LaRouche made the following remarks to a private gathering of diplomats in Washington, on May 4, 2010.

Probably the leading question right now, the leading question around the world is, the fact that the entire international monetary-financial system is now in the process of disintegration. The disintegration is centered in Europe, and also Brazil. Because the center of the collapse right now, is located in the Rothschild-centered interests of Britain, which includes the Inter-Alpha Group. And the Brazil carry trade is the pivotal element in the present world financial crash.

However, a crash in this realm, which is hitting already Greece — Greece is not the problem. Greece is being made a problem, but it is not the problem. The problem lies in the Inter-Alpha Group, which is centered largely in Britain, Spain, Brazil; it's a well-known group which was founded in 1971 which took over the world system increasingly, since the U.S. collapsed the fixed-exchange-rate system. And Greece is not a crisis point; it has its own crisis, but it is not the real cause of the crisis. It's simply being used to try to orchestrate the thing in favor of the Inter-Alpha Group. The real crisis spot in Europe is Spain, Portugal, Ireland, and so forth, and it's essentially the British Inter-Alpha Group, also centered in Brazil, which runs the real, key world carry trade right now.

Now, the question then, is what's the solution for this? And there's only one solution that's going to save the world from a general breakdown crisis of the entire world system. The crisis is centered in the trans-Atlantic community right now. That is, the United States itself, under the current President, is a disaster area. And until this President is replaced, the United States is going to continue to be a disaster area. Only the elimination of this President by his expulsion from office, in one way or the other, will prevent that from happening. And when the United States goes, then the whole world system will go.

The problem is, we have, in the other parts of the planet, —for example, in part of the Russian program, the Russian monetary-financial system is a disaster area, because it's tied into the Inter-Alpha Group. But the Russian physical economy, the Russian prospectives are very good, because Russia is part of the Asian process, which is concentrating on nuclear power, railway transportation systems, and other things, which are essential. By itself, it would seem that this part of Asia, or Eurasia, is in a very strong position. The problem is, if the trans-Atlantic system goes under, then the entire world system goes under. So the problem is not centered in Asia, but Asia can not withstand, the effects of a collapse of the trans-Atlantic economy.

There's only one remedy, there's only one way this can be stopped: And that is to go — and the thing is right in the United States, it's being pressed now. We don't know whether we have a sufficient majority for it or not, but it is being pushed: And that is, the reinstallation of a Glass-Steagall standard for the U.S. dollar. If that Glass-Steagall is established, and there's much and growing pressure for this, in that case, then the United States can become the pivot of a recovery of the world economy.

What this means is this: Most of the international debt of the world today is fraudulent. It's based on financial structures which are absolutely fraudulent. And therefore, if you were to put the world through a Glass-Steagall standard, the standard which was established by Franklin Roosevelt in 1933 and continued until 1987-89, if that standard is imposed by the United States, then, what happens is, most of the debt, most of the nominal financial debt of the world is cancelled. Because most of the debt of nations is fraudulent. It is purely financial speculation, it has no intrinsic value. So therefore, what would happen would be, you would have quadrillions of dollars of worthless debt, on the world, would disappear: Under those conditions, and with the establishment of a fixed-exchange-rate system, on that basis we could handle the entire process.

- How To Get Long-Term Growth -

That doesn't end the problem. It ends the immediate problem. The immediate problem is, growth of the world economy. That's going to be a longer-term process: It'll probably take two generations to build up the world economy again, from the mess it's become now. But it's perfectly feasible. This means a very large increase of nuclear power development. It will mean the reactivation of a large-scale space program, which will be the major technology-driver for the planet as a whole. These are the conditions that we require.

It means, largely, worldwide, an emphasis on basic economic infrastructure: mass transportation systems, water systems, power systems, and the general basic infrastructure. Because we have a lot of poor people on this planet, who have no intrinsic technological skills. They can acquire these skills, but it will take a generation or two to build up the skill level of the people. So, in the meantime, we will start largely with emphasis on basic economic infrastructure. Then, the basic economic infrastructure, will then be the stimulant for the revival of agriculture and industries.

This means long-term investment. It means a fixed-exchange-rate system is required for the world to do this. Because you're going to have much of the development will occur across borders: technology transfer across borders, and the transfer effected through long-term, fixed-exchange-rate credit. Which means you're talking about two generations, for example, when you're talking about a major industry, you're talking about two generations. This is a two-generation investment. If you're talking about major infrastructure, like transportation systems, large water systems, and other essentials, you're talking about, really, a century investment. So, we have essentially, an immediate half-century, two generations, of development of the population, through infrastructure and expansion of industry and agriculture. But the long-term investment is that.

And the long-term investment is tied to space exploration. It is much underestimated by some people, but actually, it is much more significant and feasible than most people think. It's also much more difficult than some people think. You're not going to — the space between planetary orbits is not empty. You see these maps and these diagrams and they talk about "empty space" in between planetary orbits — that's not true. What is out there is a lot of cosmic radiation, electromagnetic radiation.

The whole system is dominated by radiation: And if you're trying to get to Mars with human beings, as opposed to getting to Mars by objects carried in capsules, you have a problem. Human beings can not survive 300 days, in the distance between Earth and Mars, not under normal conditions that we would think of today. It requires only an accelerated propulsion between the two planetary orbits, which could be up to as short as three days. But we don't know how well human beings could withstand that kind of travel. We know that, in principle, there are ways we could solve the problem, but it's going to take a couple of generations of research, into the domain of electromagnetic radiation and cosmic radiation, before we will securely solve the problems that we have to overcome, to actually carry people back and forth, between a distance such as Earth orbit and Mars orbit.

But in the long run, the mission of getting to Mars, will be the basic driver, in technology-driver, which defines the hopeful future of mankind. The work we're required to do, to reach that goal, say before the end of this century, will be the main driver, the technology-driver, for the economies of the planet. And therefore, it's not something we do "later;" it's something must accelerate now, for scientific and related purposes.

Take one case: human travel between Earth and Mars. If you go at a speed, under a propulsion of the type we can send objects to Mars, as we're doing already, that's fine. If you try to send a human being, a human being very rapidly loses bone tissue, and loses essential conditions of life. We've experienced that already in the space exploration in nearby space around Earth, and in going from here to the Moon and back. It's a difficult problem, and there are many reasons for it, which we understand the nature of the reasons, but they're poorly understood so far.

So therefore, what we're going to be doing, is we're going to be developing technologies on Earth, for Earth application, which are byproducts of the scientific research we're going to do for space application. Much of this will be biological research, which will pertain to what we require to create a synthetic environment suitable for human beings. Because, for example, Mars has a field of gravity one-third that on Earth. Human beings on Mars, at one-third of the gravity on Earth, are not going to make it. But there are ways we can deal with that, and correct for it, and those are included in this process.

- Stop the Insanity, Cancel the Debt -

So, we have to take an optimistic view, as a policy view. We have to recognize that the present financial-monetary system can not possibly work. There is no way, that the present system of Europe can be salvaged. Europe, as of now — right now! — is in the process of collapse: That is, the European economy in the process of a chain-reaction collapse. And the policy of bailout of Greece, and the whole policy on Greece bailout, is a catastrophe: It will destroy Greece, and will destroy all of Europe. It's a piece of insanity, concocted in London, and it is not good for humanity.

Greeks are going to resist this, because it's an existential question: They can not survive the conditions which Europe is trying to impose on Greece, now. They will not survive it. Therefore, they will resist it. They will resist it with great anger, as we see this already steaming up in Greece now. And therefore, Europe must take the pressure off Greece. And I see the only solution is to go through this Glass-Steagall-type of reorganization of the European financial system, which would wipe out most of the Greek debt. Because most of the Greek debt is of a speculative nature, and it is fraudulent, and would be eliminated by a Glass-Steagall approach.

The key thing to solve this problem is not to savage the people of Europe, or other parts of the world. The point is to cancel the fraudulent debt! The world is being crushed by fraudulent debt, of speculative interests: We have to do the same thing that Franklin Roosevelt did, in 1933, in rescuing the United States from disaster, and that was the enactment of the Glass-Steagall legislation. And then later, Roosevelt, of course, in 1944, also proposed a fixed-exchange-rate system.

Now Roosevelt's proposal was not fulfilled as he had intended it, because Truman and the British had a different idea. But, the combination of a Glass-Steagall policy, for the United States, now, and the extension of that Glass-Steagall policy, to apply it also to the situation in Europe, which is now crashing — because all of Europe is crashing, and it is crashing, hopelessly, without some change in policy.

So, the only solution would be, the United States goes with the Glass-Steagall policy, now. That is, building up as a policy inside the United States now — not with the President, who may be out soon — but with significant parts of the legislative political scene, and others. If that's adopted, then the United States can become a pivot, instead of a disaster, become a pivot for Europe; if Europe then joins the United States, in supporting both a Glass-Steagall standard, for cleaning up the value of European currencies, and debt, and then goes to a fix-exchange-rate system, and extends that to other nations, particularly to Russia, to China, to India, and to the participation of Japan, South Korea, and so forth: If that's done, then the world can go suddenly, right now, from a doom which is what we're headed for right now, into a recovery.

If those measures are not taken, then you are going to have a dark age for all humanity. The dark age will start in the trans-Atlantic region, the rest — Asia, for example — can not withstand the effect of a general collapse of the trans-Atlantic system. And therefore the trans-Atlantic system must be cleaned up, as a precondition for a solution for all other problems.

- Goldman Sachs Opens Up the Gate -

And these things are realities now. These are the things that I'm discussing in various channels, with people in governments and relevant governments — not all of the members of those governments, but some of them — and the dynamic for this is growing. So we have, right now, the possibility — and it's real, it's not speculative. It's real, but it's uncertain: That is, these are things that can be done, are politically feasible in the immediate future, but it's by no means assured that they will be adopted. If they are adopted, that's a possibility worth fighting for, then, by an action from inside the United States, to reenact the Glass-Steagall legislation, for which there's growing support in the United States among politicians, particularly since this Goldman Sachs crisis. Goldman Sachs' scandal has now opened the gate, for a demand for a return to a Glass-Steagall standard. If that's done, that cleans up the mess of the U.S. financial system.

If that mess is cleaned up in the U.S., then the application of the same method, through cooperation with the United States, can reach Europe. Then, there is a solution for Europe. Under the present governments, the present policies, the present financial systems in Europe, Europe is now doomed. If the change is made, Europe can survive, and grow. But if that change is not made, Europe is going into a virtual dark age — right now. This is not something that will happen in the future, this is something that is happening, right now, as we stand and sit here: This is reality.

So my concern is that. And I can say that I'm pushing this around the world, and I can say, I'm getting some favorable reception on these ideas: The commitment to implement the ideas is not that clear. But you're seeing resistance in Europe, as in Germany in particular, strong resistance to the proposal of the so-called "Greek bailout," which is the death of Greece, if it's put there, because Greece will go into chaos. The Greek people can not stand it, they can not withstand this, and it's injust action! Greece should be allowed to do a financial reorganization of its own internal affairs, clear away the debts that are not legitimate, and reorganize its finances for growth. Greece does not have the industry or the industrial development it needs for growth, at present. But that can be supplied through cooperation with Europe, and Europe must cooperate in that.

There is a strong feeling for this. It's growing in Germany. It's probably weaker in France. Who knows what'll happen in Spain and Portugal, and possibly Italy, as well. So, France, Italy, after Germany, are possible areas where a revolt against this policy, which is a ruinous policy, could occur.

The bailout policy will not work! There has to be a financial organization, akin to a Glass-Steagall-type: Get rid of the fraudulent debt — the speculative fraudulent debt! — and then we can reorganize the world.

The initiative has to come much from the United States. There are people in the United States who agree with this idea. I don't know how much commitment they have to make it work, but it's an idea which is current in the United States, among leading circles. And if it is adopted, that is the solution.

And a solution of this type for the United States, would mean an immediate option for nations of Europe. If nations of Europe join with the United States in such a reform, then the situation of the world can be saved. Because the kind of programs you're getting in Asia, for example, in the physical programs in Russia — railway development, which is stalled, but it's necessary; the development of nuclear power, these things are necessary; the cooperation of Russia with China is absolutely crucial; the cooperation of Japan and South Korea with this, is crucial. The cooperation of China and Russia and so forth, with India, is crucial.

These countries are committed — though they have many poor people, they're committed to the growing use of nuclear power, mass transportation, and related infrastructure programs, which will enable countries with many poor people, through nuclear power, to have the high-energy-flux-density power sources, which enable nations which are poor, through this energy program and through transportation, to develop their programs, which would mean they would have, actually, a two-generation prospect of growth — about 50 years, which means two generations. So, in two generations, you can raise the standard of living and productivity of a population, or a very poor part of a population, and that's what we have to do.

We have to have, essentially, a minimal 50-year program prospect, in terms of policies, of treaty agreements among nations which will make this possible. We're now at that turning point: This is not something tomorrow, this is today, and it was already yesterday. The world is on the verge of a general breakdown crisis, starting in the trans-Atlantic region, centered now, especially in Europe, or in the Inter-Alpha Group victims such as Brazil, and around the world.

We have a chance: The question is, will the politicians have the guts to do it, to take the chance? It's the only chance we have. And I'm optimistic. I'm optimistic, because I'm an old soldier and a fighter, and if nations decide they need something, in order to survive and they find leaders who are responsive to that, we have seen in the past, nations can survive. And that's where we stand today.

Political Uproar Builds Over Euro-bank Bailout

May 5, 2010 (LPAC)—While the French lower house, the Finns, and the Netherlands have voted up the so-called Greek rescue package, all eyes are on Germany, where the parliament is scheduled to vote on Friday, May 7. Chancellor Merkel has been campaigning aggressively on all TV channels, and even had Finance Minister Schaeuble hold a bankers' meeting today to discuss participation in the package.

The Tagesspiegel reported today that Prof. Schachtschneider told them that he, and the other three anti-euro professors, will file their case before the German Supreme Court immediately after the Bundestag passes the 22.4 billion euro German contribution to the bailout.

Already, there are very open defections in the CDU, most importantly, Bundestag President Norbert Lammert, who announced that he would vote against it (because the austerity conditions are not explicit in the text, he said). Also potentially important was the announced opposition of CDU financial expert Manfred Kolbe, who said the package would result in European taxpayers paying off the banker profiteers.

Also of note, is that the mass-circulation German daily Bildzeitung today ran a front-page article on how the bailout violates the Lisbon Treaty's no-bailout clause. The jump of the article is accompanied by a full reprint of the article of the treaty which excludes the bailout.

 

It's Not A "Greek Bailout;" It's A $5 Trillion Europe-Wide Blowout

May 4, 2010 (LPAC)-- What's going on with the British-inspired "Greek bailout," and the way it's being structured, is absolutely doomed to the worst possible failure, as LaRouche has insisted. Now, we have confirmed the $3.9 trillion figure for the combined public and private debt of Portugal, Italy, Ireland, Greece and Spain. British, German and French banks are exposed to $2 trillion of it. Not only that: there are $5 trillion of seriously troubled assets on the books of those banks, in total.

Merkel and Sarkozy agreed well over a month ago on a so-called "Greek bailout" as a concealed bailout of their own bankrupt banks. The so-called "Greek bailout" will be nothing but a passthrough to these bankrupt European banks, just as Paulson's and Obama's bailout of AIG was simply a passthrough to Goldman Sachs and other bankrupt Wall Street parasites. Especially after the new exposures of Goldman Sachs in April, Merkel and Sarkozy anticipate that an unvarnished proposal to bail out these bankrupt banks would meet enraged opposition, while the pretext of bailing out Greek sovereign debt might avoid some of that opposition.

The most dangerous tendency among those who say they oppose the so-called Greek bailout, is those who say that there is no guarantee that the Greeks will actually implement the brutal IMF austerity Papandreou has agreed to. They call for the creation of an independent commission, like a European-wide "Big MAC," to oversee the austerity,— just as Versailles oversaw the planned destruction of Germany. This would be the final blow to the sovereignty of every country in Europe.

The only way to deal with this in reality, is by Lyndon LaRouche's proposal for a global Glass-Steagall reorganization. This is why Obama must be removed from office at once; anything short of that doesn't work. The way to get a global Glass-Steagall through, is to ram it through in the U.S.A. Once it's put through in the U.S., it's a done deal that it can be put through internationally. You simply have to force it through in the U.S.

There are very credible reports that the votes are there in the U.S. Senate, for passage of Glass-Steagall. There were a lot of fence-sitters before the SEC's suit against Goldman and Levin's hearing, but now, no one wants to be seen opposing this sort of measure. On the other hand, the House of Representatives is unpredictable. LaRouche said: well, then ram it through the House first.

WEBCAST 8 MAY 2010

A Lesson On Origins

 A Lesson On Origins

By Michael Kirsch

May 3, 2010 (LPAC)-- Have you ever found yourself using words without stopping to consider their meaning? As the case of today’s common place economics discussion of “free trade” demonstrates, if one adopts the language of the devil, one may soon be incapable of recognizing the sophistry of his arguments.

Serious patriots of nations who intend to move their nations toward sovereign action against the suicidal tendency toward hyperinflationary blowout, as expressed in the current orgy of such action being taken by Europe now, must take into consideration a few very important facts about the historical and scientific nature of the fraud of “free trade” and related bailout and austerity policies which they might prefer to abandon.

They should know first, that the suffering of peoples and their nations presently being experienced around the world is due to a willful fraud, hatched by Paolo Sarpi’s adjustment to the method of Venetian usury in his time, and, by 1714, a fraud increasingly run from London, hatched in order to destroy creativity by taking over science and then transmuting that scientific ideology into an empiricist economics doctrine. That economics doctrine bases itself on the belief that mankind’s mind doesn’t really exist, and secondly, on the expertise of a scientific tradition which is designed according to that false and twisted view of man as beast, ruling out the demonstrable efficiency of human creativity which establishes the power of the very nation-states, for which that system of empiricist economics was designed to destroy.

In order to grasp the nature of the present disintegrating system which nations are now falling on their swords to defend, it is necessary to realize that the dominant dynamic of recent history, since the 15th century up to the present, has been an attack against the nation-state system by monetarist interests. To answer the question of what particular expression that attack took for modern times, one need only travel back in one’s mind to the role of that mentioned Paolo Sarpi and his flank to take over science from the inside by popularizing scientific empiricism.¹ For the fact remains ever more true, that the basis for the belief in the “free trade” economics of Adam Smith lies in nothing other than just that scientific empiricism.

The pivotal turning point marked by Gottfried Leibniz’s death, and Antonio Conti’s operation afterwards in creating and spreading the Newtonian version of scientific empiricism throughout Europe, as the means to destroy the creative legacy of Leibniz, demonstrates to all cognizant thinkers that what has reigned since then to present day, as a continued attempt of the monetarist interests spreading from Venice to the Netherlands and England, who later, by application of Conti’s fraud of empiricism, popularized Smith’s “free trade” attack against sovereign government—as through the British East India Company—is the only real obstacle to human progress. Today’s action by European nations to join together in a self-inflicted orgy of hyperinflationary national suicide, is merely the effect of the long time belief in that Smith system which was created then.

A recent review of the history of Europe since Conti's operation against Leibniz has indisputably shown that most of the justified screaming and shouts of horror since then, have come as a consequence of sovereign nations placing the value of the human mind as second to the religious belief in Adam Smith. As Lyndon LaRouche has recently stressed, the cult of Adam Smith is established upon axioms which are summed up in a single paragraph in his The Theory of Moral Sentiments, in an argument that became “free trade” by Smith years later, only in different terms.

The Paper Thin Veil

 

Smith’s argument for why a nation should put its faith in the fabled self-regulating monetary system, lies in a doubled layered and yet flimsy argument:

First, he asserts man is fundamentally a greedy worm: “It is not the love of our neighbor, it is not the love of mankind, which upon many occasions prompts us to the practice of” virtue, but only the selfish desire for things we want; in fact people are supposedly so naturally selfish and bestial that “ if [the fear of punishment] did not stand up within them in his defence, and overawe them into a respect for his innocence, they would, like wild beasts, be at all times ready to fly upon [each other] and a man would enter an assembly of men as he enters a den of lions.” Without that fear, “the immense fabric of human society.... must in a moment crumble into atoms.” His purpose in setting up this first layer of this silly sophistry, is to introduce the second.

Having asserted that the existence of society depends on a set of punishments, he states that mankind has no capability to reason out the proper means for establishing such an order of society, only an instinct to sympathize with his fellow man’s resentment, learning by observation to approve of the act of punishments. This system of pure sensory observed behaviorism, the sum of kinematic feeling states is the force governing and regulating over mankind's bestial nature. Smith then asserts:

“With regard to all those ends which…may be regarded…as the favourite ends of nature, she has constantly in this manner not only endowed mankind with an appetite for the end which she proposes, but likewise with an appetite for the means by which alone this end can be brought about, for their own sakes, and independent of their tendency to produce it…..But though we are in this manner endowed with a very strong desire of those ends, it has not been entrusted to the slow and uncertain determinations of our reason, to find out the proper means of bringing them about. Nature has directed us to the greater part of these by original and immediate instincts. Hunger, thirst, the passion which unites the two sexes, the love of pleasure, and the dread of pain, prompt us to apply those means for their own sakes, and without any consideration of their tendency to those beneficent ends which the great Director of nature intended to produce by them.”[emphasis added]

According to Smith’s second layer of sophistry, the universe was designed for nothing but those desires, and even though, as he maintains, the ability to reason and use one’s mind to organize society is non-existent, everything will work out if mankind just puts his useless mind aside and follows that view of man, which he likewise introduced as his first layer of sophistry. By denying human creativity and ruling out the existence of knowable truth or principles, governments are then encouraged to accept the idea that there is no knowable way to govern their own affairs, since such a society works according not to principle, but to the kinematic interaction of the effects of feeling states.

There lies the sole reasoning, and the only argument he later gives, for why nations should hand over their sovereign power to an “invisible hand.” The adoption of Adam Smith’s medicine of national suicide, mistakenly called “free trade” is based on nothing more than this double layered sophistry made by him in that location.

Now Look at the Folly

 

Peoples of global civilization suffer, nations are looted, and governments adopt foolish policy due to their belief in this fakery of Smith, which, as it turns out, finds its authority in nothing more than the denial that the human mind exists, a fact, which should make governments who've adopted Smith's Wealth of Nations as their policy rather uneasy, especially considering the accelerating disintegration of the world economy as a consequence in having fell for it.

It may be comforting for governments, who are ignorant of the relationships monetarist empires intend to have with them, to have believed that Smith's doctrine of economics is founded upon some valid type of science or study of industries and successful economies; however, that comfort is an illusion which rests in their own ignorance of the fact, that his system is an attack against the very idea of man upon which all sovereign nation-states and their governments were ever established.

Just as the acceptance of the axioms of scientific empiricism shackles the minds of would be creative citizens of nation-states from increasing the power of their nations, so the consequences of swallowing this hoax are well known: economics becomes reduced to monetary statistical descriptions of effects, which are no longer effects that represent a development of human society developed and regulated by human creativity, but rather, an arbitrarily guided process by enemies of those nation-states, deriving a profit from the destruction of the nation, while getting its citizens to foolishly look at manipulated figures as a sign of increase in their economy—the “GDP”, speculative earnings, and the like—rather than the real physical living standard, which is tumbling downward.

Today’s continued hyperinflationary bailout of the United States, and now Europe, and Russia’s adherence to similar foolishness, has been done on the argument that the financial markets need to be given enough financial liquidity to regain their steam, and that if the creditors of nations are served, then it will benefit the economy. How have these nations and their citizens all become so stupid, as to accept as religious belief that the prosperity of their economies lies in surrendering the governance of their economies to a supposed impartial “free market”, which magically corrects itself, or a like disembodied monetarist banking system with a large appetite for bailouts from those sovereign governments?

This is an old swindle, based on the kinds of lies which empiricism was created for, lies serving Venetian usury, and Sarpi’s popularization of such usury with a science of statistical economics delivered through the successful scientific fraud pushed upon Europe in the form of Galileo, Descartes, and Newton. With Antonio Conti’s Newtonianism having strangled Europe, Adam Smith was simply the economic corollary of that successful reemergence of the Sarpi model of a science without creativity’s knowable principles, a model which had been temporarily overthrown by Leibniz.

Therefore, in today’s global crisis, patriots who consider themselves opposed to the destruction of their nations, patriots who would not join their fellow citizens in drinking the Kool-Aid of national suicide by hyperinflation and austerity, must themselves attack the root of the problem. As long as “free trade” and related financial market swindles are attacked in the language for which they were created and used, the barbed, hooked bait has already been swallowed. The policies of monetarism, must be understood as completely fraudulent doctrines and therefore the languages associated with them as fraudulent languages.

It were truer to say, that “free trade”, the expression of the belief in the “invisible hand” and self-regulating magic of the market, is simply the application of the above assertions of human nature; therefore, in fact, it is even more true to say, that praising “free trade” is akin to letting the devil rape you, and then bragging over your conquest.

This is why, were citizens of nations not to start from the knowledge that the currently bankrupt global monetary system is fraudulent for precisely the fact that it is based on ruling out the existence of the human mind, rejecting the real economy which depends on the development of mankind in his relation with discovery of the physical universe, they were to lose. As soon as human creativity is accepted as the valid truth that it is, it immediately implies that it is the sole purpose and reason for sovereign governments, and the essence of economy. Human ideas are the sole power capable of transforming the economy to a higher state, ideas which express a creative principle infecting the purpose of the whole economy, as well as those governments which implement discoveries according to a confidence in the knowability of principle.

Monetarists are, and have always been, conscious of the effects of human discovery. Paolo Sarpi’s witting replacement for those effects with a fraud, is the most relevant case for understanding the nature of the present day consequences of following Adam Smith. Those consequences are the simple outcomes of a dynamically infected culture of people who have not yet recognized the source from which Adam Smith’s economic model flows.

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Footnotes

1.  

See "Venice and Leibniz: The Battle for a Science of Economy," Michael Kirsch; December 24, 2010

Countdown to LaRouche Historic Webcast on May 8

May 3, 2010 (LPAC)-- We are now down to the final five organizing days before Lyndon LaRouche's next historic international webcast, on Saturday May 8. Coming on the heels of last week's private dialogue with leading economists and diplomats, representing the Four Powers nations, only an absolute fool could miss the fact that LaRouche is setting the agenda for the only means to avoid a British-engineered plunge into a global dark age that would wipe out 80 percent of humanity or more. Make no mistake. As events now playing out on the Korean peninsula and in the Persian Gulf make clear, there is a faction in London that is literally Hell-bent on provoking an era of perpetual chaos, in pursuit of their radical Malthusian agenda. These London butchers are the heirs of that British agent Alexander Helphand "Parvus," the collaborator of Frederick Engels, the agent of the Fabian Society, who was the actual author of the "permanent war/permanent revolution" dogma, usually attributed to Leon Trotsky, that is driving a leading faction of the British Monarchy today.

As you will read below, the combined impact of our campaign to reinstate Glass-Steagall in the United States, and realize FDR's dream of a Global Glass-Steagall to wipe out the British empire; and the radiating impact of the quasi-Pecora expose of the racketeering conspiracy known as Wall Street, particularly through last week's Levin Subcommittee hearings, has created a groundswell for passage of Glass-Steagall. Sen. Mark Warner (D-Va.), the dot-com millionaire and staunch opponent of Glass-Steagall, admitted in a CSPAN interview on Sunday, that the votes are probably there in the U.S. Senate for the repeal of the 1999 Gramm-Leach-Bliley bill and the restoration of Glass-Steagall. It is our job to lead the charge and make sure it happens right now!

And the key to that is the qualitative and quantitative expansion of our LPAC video output, which means that we need you to make contributions to LPAC every week. This is not about money. It is about our logistics in depth, and our ability to do the job.

As one astute blogger on firedoglake wrote on Sunday, in an item titled "The Glass-Steagall Test," "As the whole blogosphere knows, the Glass-Steagall Act forced banks to choose between being a commercial bank or an investment house. During the Clinton regime, the despicable Gramm-Leach-Bliley Act (also known as the Financial Services Modernization Act of 1999) allowed commercial banks, investment banks, securities firms, and insurance companies to merge... The final vote on Gramm-Leach-Bliley was a gutcheck that most Senators failed."

The "whole blogosphere knows" about Glass-Steagall because of the radiating impact of the LPAC website, and the other LaRouche points of intervention on this issue, including the impact of the past 14 months' dialogue with the Stanford Group of leading American economists. It is not only the repostings from the LPAC site, but the impact on the viewers of the key LPAC videos, often reflected in their own attempts to promote the LaRouche agenda in their own names, that has created the conditions where a restoration of Glass Steagall is within reach.

NEXT SATURDAY !

And it is precisely for this reason that a permanent chaos faction in London is moving to blow up the world. On Sunday, the final terms of the 104 billion euro Greek bailout were set to be ratified by EU finance ministers and officials of the ECB and IMF, as rioters took to the streets of Greece on Mayday, against the killer austerity program that the Greek government has presented. Be absolutely clear on what is happening in Europe. This is not about Greece, or even about the so-called PIGS nations. This is the disintegration of the British Empire. It is its post-Bretton Woods system of offshore speculation and looting that is coming down, now. What is happening in Europe is a desperate ploy to get Germany to step in and bailout the PIGS. Not only is that unlikely to happen. It cannot possibly work. The whole British Empire system is coming down, and nothing can be done to prevent it.

Just look at the small matter of Goldman Sachs. It is Lyndon LaRouche's assessment that Goldman Sachs is going to go under. They can't save it, so they are just going to kill it—put Goldman Sachs out of its misery.

From the standpoint of all of these fast-moving developments, and the magnitude of the crisis hitting the world right now, we have to also keep attention on the British agent squatting in the White House. Just as we have to keep focus on the actual nature of the British Empire today, we cannot drop the ball on the impeachment or resignation of Obama. Whereas, just weeks ago, Lyndon LaRouche was alone, among leading figures demanding Obama's safe, Constitutional removal from office for high crimes and misdemeanors, now there is a mood shift in the country. It is no longer taboo to talk about Obama's impeachment or removal from office, Nixon-style. Coverage of Obama's Nero-like performance at the University of Michigan commencement ceremony on Saturday, mocking him for not being able to put two sentences together before a crowd without having his teleprompter on the scene, is just typical of what is coming out, increasingly.

Pull out all the stops on LaRouche's May 8th webcast.

http://www.larouchepac.com/

 

LESSON: WHAT IS VALUE ? 

http://www.larouchepac.com/lpactv?nid=14306

Who In Britain Is Calling For A Hundred Years' War?

May 3, 2010 (LPAC)—Ultimately, the decision of whether or not the British empire will instigate its stooge, Israeli Prime Minister Benjamin Netanyahu, to launch a military air strike against Iran's nuclear enrichment facilities, thereby triggering a Hundred Years' War, lies with the Queen, her Royal Consort, and a hardline faction in the City of London. This act is under consideration now, given the onrushing systemic collapse of the British imperial monetary system, as a way of ensuring that there is no opposition to this oligarchy's plans for a New Dark Age.

At the political echelon, there has been some support for this move. At least three senior Tory MPs (and the Tories are the closest of the political parties to the current right-wing Zionist government) had called for Israel to attack Iran before the Parliament was dissolved. For political reasons, Tory leader David Cameron has not said anything about Iran.

The Liberal Democrats, who were the only party that voted against the Iraq invasion, would oppose the idea.

The Labour Party is mixed. Prime Minister Gordon Brown called only for sanctions, which Foreign Secretary David Miliband (a "Blairite") has strongly campaigned for internationally.

But former Prime Minister Tony Blair has continually called for war. This is important, because Tony Blair, as Quartet Envoy for Mideast Peace, has become a close friend of Netanyahu, and he is one of the Queen's controllers over British puppet, Obama.

Here are some highlights from Blair's pro-war statements:

* In his Jan. 29, 2010, testimony to the Iraq Inquiry (chaired by Sir John Chilcot), Blair makes about 20 long references to Iran and the need to deal with it. Asked about the postwar planning, and why at least 100,000 Iraqi civilians died in strife after the invasion, Blair said that this and the Sunni/Shi'ite sectarian violence that arose was due to the unexpected, coordinated intervention of Iran and Al-Qaeda working together "to sabotage" and "destabilize" the coalition plans. In the beginning of his testimony, he referenced his April 1999 Chicago speech on changing world governance, which called for an end to the Treaty of Westphalia system and for "regime change" of "dictatorships" in possession of WMD or with links to terrorism. He placed Iran very high on the list of terrorist-linked regimes seeking WMD that needed the Iraq treatment. "The reason why I take, and still take, a very hard line on Iran and nuclear weapons is not just because of nuclear proliferation, it is because the nature of the Iranian regime makes me even more worried about the prospect of them with a nuclear device."

* At the Chicago Council of Global Affairs on April 24, 2009, on the tenth anniversary of his "Doctrine of the International Community" speech (referenced above), Blair stated: "The struggle faced by the world... is posed by an extreme and misguided form of Islam. And there are elements in the leadership of a major country, namely Iran, that can support and succor its practitioners... [We must] expose, too, the delusion of believing that there is any alternative to waging this struggle to its conclusion. It is time to wrench ourselves out of this state of denial." This is a war which is "akin to fighting revolutionary communism... We have to fight where we are being fought against... Where we are called to fight, we have to do it."

* On March 23, 2010, Blair and "Bibi" Netanyahu addressed the American-Israeli Public Affairs Committee (AIPAC). Blair said: "we are not the only external actors in this drama [of Middle East peace]... Iran has a role also; and it is not for peace. ... They are clear in what they seek. We should also be clear. Iran must not be allowed to acquire nuclear weapons capability. They must know that we will do whatever it takes to stop them getting it. The danger is if they suspect for a moment we might allow such a thing .... This is not simply an issue of Israel's security. This is a matter of global security, mine, yours, all of us. Iran's regime is the biggest destabilizing influence in the region. Israel understands that."

It is not just the political echelon and above that is contemplating war against Iran in Britain. The neo-con Henry Jackson Society wrote LPAC: "We subscribe to the view that, for a number of reasons, Iran poses the greatest international security threat in the world at present, with its nuclear program being a particular problem... I am certain that Israel will only act ... once all other options have been exhausted and its sources believe that a nuclear threshold will be crossed soon. Therefore in many ways, an Israeli action is dependent on the international community. We can stop it if we are prepared to get 'serious' about Iran, If we are not, and shirk our own duties, then we should not be surprised if others act."

Is Goldman Sachs Going Down?

May 3, 2010 (LPAC)—Lyndon LaRouche said on Sunday that he is convinced that Goldman Sachs is going down. "They can't save Goldman Sachs anymore. They are too exposed, too covered in filth. So, in my estimate, is that Goldman Sachs is going to be killed off. The ongoing criminal investigations provide the perfect context for bringing Goldman down." In addition to the SEC civil suit, and the criminal probe by the U.S. Attorney in Manhattan, the British Financial Services Authority is also conducting its own investigation into Goldman Sachs' dealings with the Royal Bank of Scotland, and other clients that took a big hit in the mortgage blowout, while Goldman profited off of short positions.

Indeed, The Independent on Sunday reported that a number of big Goldman Sachs clients are getting set to cut their ties. The paper reported that "Capricorn Investment Group, one of the world's biggest family offices, could break its relationship with Goldman Sachs following accusations by the U.S. financial watchdog that the firm misled clients over mortgage trading. The California-based firm is the first big client known to be reviewing ties with the investment bank in the wake of the fraud allegations which stunned the financial world, but dozens of others are said to be reconsidering their relationship."

The report about Capricorn severing ties to Goldman Sachs is deliciously ironic. Founded by eBay founder Jeff Skoll, who bankrolled Al Gore's agitprop film, An Inconvenient Truth, Capricorn handles a sizeable portion of Gore's own $35 million investment in hedge funds. (Gore and ex-Goldman Sachs trader David Blood have their own London-based hedge fund, Generation Partners, which is heavily staked in the carbon futures swindle.) The falling out between the Gore/Skoll gang and Goldman Sachs is one further indication that the Wall Street giant is headed for doomsday. In the wake of the Levin Subcommittee hearing last week, and the Justice Department announcement of a criminal probe, comparisons are now being made between Goldman Sachs and both Drexel Burnham Lambert and Arthur Andersen. Both companies went down, after scandals erupted and Federal criminal probes were launched. Drexel was at the center of the blowout of the savings and loan industry in the late 1980s and early 1990s, and Andersen was caught up in the Enron debacle a decade later.