EUROPE'S ONLY CHANCE FOR SURVIVAL.

- By Lyndon H. LaRouche, Jr. -

                      - July 11, 2011 -

 

What happened with Tremonti's ultimatum to the prime
ministership in Italy means that Tremonti has tipped the wagon.
He's made a proposal, which if he were to be
fired--Tremonti--that would collapse the entire European system
in a chain reaction collapse. Now, I've had some conversations
with Tremonti in the past, and these are not irrelevant at this
moment.  Now, what's happened is, the whole system of Europe,
economic financial system of Europe is rotten to the core.  There
is no way this system could survive.  The only question is:  Is
the collapse going to occur overnight, or sometime near that?
This is the end of the system; and if a wrong move is made, a
wrong choice of move is made, the whole world will go very soon
-- in a matter of days -- into a general collapse.
       Now, {I'm the one.}  I'm the gravedigger of such follies;
that is my function.  And I'm not going to use a shovel; I will
use a steamroller.  What that means is, we are going to do the
following:  The situation of Europe is absolutely hopeless, with
the present system.  We've now reached the point of a total
breakdown crisis, because the whole system has reached a point
which I knew was going to come.  It's going to collapse; one way
or the other.  Now, the only way it could be rescued would be by
the United States, because the present European system has no
provision for dealing with a crisis like this.  A game had been
played, particularly by the British and by Wall Street.  A game
had been played, which is now blown up, and they're trying to
hold the thing together with baling wire, or something.  We have
the solution.
       First of all you have, the problem is Europe has the same
kind of problem that we in the United States have -- the same
{type} of problem, not exactly the same kind, but the same type.
There's no way that this system can continue to exist, because
there is no way to at the same time, increase the debt -- the
worthless debt -- as an obligation to crush the physical economy
of Europe and the United States, and elsewhere. There's no way
you can liquefy this process; none.  You have to wipe out vast
amounts of the current debt.  And obviously, we're going to wipe
out the useless one, the purely parasitical one, and we're going
to use as an ingredient the model of Glass-Steagall.  Now
Glass-Steagall essentially takes all the garbage, all the debt
garbage in Europe of the type we can not pay, and we're going to
give it to the relevant merchant banking system. "It's yours!
It's all yours!  You wanted it; now you're getting it!  Nice?
Sweet?  Oh, it's sweet. You don't know how sweet this is; you
have not yet assimilated what I've thought about this.  You will
soon, with our help, just to make sure you all have a fair chance
at giggling.
       The time has come for that,  because if Europe goes, the
United States goes.  If the United States goes now, Europe goes.
Therefore, they {have no option.} Behave, or die; that's their
option.  And they have no remedy for it; no solution, except an
attempt at dictatorship.  And dictatorship will blow up
dictatorship.  Because the attempt at scrambling and establishing
it, will cause confusion and the whole thing will disintegrate.
In this moment, if we have the will and capability, we're going
to change the world.  The time has come!  Numbers don't count!
Policy counts; the policy that represents a solution is what
counts.
       This system can not live any longer.  The death knell has
sounded; the death rattle has sounded.  And all the fools who
have ever opposed us -- we're laughing at them.  Damned stupid
fools!  You thought that you were smart; you knew how to do
something that we didn't know how to do.  Well, you've just
learned your lesson.  You never had it.
       So, the first thing is going to be, the first item will be a
statement of the policy to deal with the present world crisis as
now being detonated -- both from the President of the United
States currently, with his idiocy, in synchronization with a
crisis in Europe which is the most deadly crisis that Europe has
experienced since World War II.  It's on now; tonight and
tomorrow.  The drums are beating, the game is over, and we know
what to do; at least I do.

                     - A Credit System -

       What we have to do is establish in place of the present
system, we have to establish a credit system in the world.  Why?
Because the only way you can save Europe is, you have to do a
Glass-Steagall-type action first.  That's only the first step.
The Glass-Steagall-type action means that whole categories of
debt are given to a merchant banking system to see if it can eat
it.  It's no longer the responsibility of the institutions of
governments.  It's thrown away; it's gambling debt, it's
"boardwalk" money, it's coupons for play money--coupons which are
now being called value.  Burn it!
       All right.  So, that's number one.  Europe has to take a
Glass-Steagall type standard immediately, otherwise it can not
solve this problem.  No possible solution.  Most of the assets,
so-called, are fake.  They are nominal paper with no backing,
except the ability to loot and kill people in Europe and
elsewhere.  You've got a choice:  You want to kill people?  You
want to mass murder people, in order to try, futilely, to defend
these values?  You want to try to set up a dictatorship where
there's no value to buy the instruments of dictatorship?
       So, therefore, what they have to do is, Europe has to go
into bankruptcy.  Now Europe could not survive that operation,
because the amount of debt, of worthless debt, far exceeds other
needs, and far exceeds the assets.  Therefore, you're going to
have to destroy those fake assets.  You can not bail it out with
real money; you can not bail it out with the lives and bodies of
people; can't do it.  If you try to do it, Europe ceases to
exist; it goes into chaos, into a Dark Age beyond anything you
ever dreamed of before.  And that situation is right now.  So
therefore, what's the remedy?
       Europe, if it cancels all the worthless debt, will be
bankrupt.  What's the solution?  The Alexander Hamilton solution,
as practiced on the Constitution of the United States.  We cancel
the trash, we honor the legitimate debt, that is in a legitimate
form, and we utter a credit system in which we move the debt of
the states, the legitimate debt of the states, the legitimate
debts of the nation, which are now located in the states, the
same way we move it into a credit system, the same way as was
done in the formation of the U.S. Constitution.  That's what
works; it's the American System, the {real American System.}
       Now, in that way, we can survive.  Why?  Right now, the
amount of actual fungible credit represented by the existing debt
of the United States, can not be paid, can not be sustained
{unless} as under a Glass-Steagall provision, which is what the
U.S. Constitution already had before Glass-Steagall existed.
       At that point, we now have an entity which is not money.
It's a denoted debt of a credit system, not a monetarist system.
The debt of the United States no longer depends upon money.  This
is what the United States was constituted to be.  This is the
difference between the United States and Europe, and has been
ever since, since that discovery.  So therefore, Europe can not
survive.  Well, if they should happen to join America and the
United States in a similar policy like a Glass-Steagall for
Europe.
       All right, so therefore, Europe is bankrupt.  Now, how can
they deal with this problem?  Well, if the United States has
taken the Glass-Steagall reform, which throws all this garbage
out there, and says, you go out to Wall Street, and say "Hey!
I've got good news for you!  {You can own it all yourself.  We
have nothing to do with it.  We don't pay it; we don't owe it.
It's not ours, {it's yours!  All yours!  Wall Street, see if you
can eat that.  If you can't eat it, {stuff it!}"  That's the
basis of the thing.
       Now, if we have a Glass-Steagall reform, if Europe has a
corresponding measure or reform, we can save the transatlantic
region, very simply.  It's through a credit system of the type
described by Alexander Hamilton in composing our Federal
Constitution.  In other words, we get rid of the crap!  Take the
crap, the unpayable crap, the worthless crap in the system
-- it's speculative money, that's all it is, pure speculation.
Gambling money.
       Ah!  Now, therefore, how do we solve the problem?  Europe
can not come out with a balance of credit sufficient to maintain
European industries and agriculture and other things.  What do we
have to do?  We have to get a fixed-exchange-rate system, the
Roosevelt fixed-exchange-rate system.  That solves the problem.
Because what we're going to end up doing, we're going to discount
all the debt which is inflated debt, by the equivalent of a
Glass-Steagall system.  We just take all that crap -- That's not
legitimate debt.

                  - Increase Productivity -

       So therefore, by reducing the liability of Europe, we can
afford to help bail the bastards out.  And we can bail out the
United States.  Which means, we have to go to work, because we
have to start producing in order to cover what is the
indebtedness, occasioned by continuing operations of our nation.
The obligation we have to maintain is, we have to maintain
essential physical functions of the nation.  Anything else is
just a question of debate; it's a question of discretion.  If we
increase our investment in nuclear power, we can get more credit.
If we get thermonuclear power, we can get {still more credit}!
If we could get to a matter-antimatter reaction -- oh, a
tremendous amount of credit.  Because the productivity per
capita, and per square kilometer of the territory of the United
States -- as in Europe -- will suddenly soar!  So therefore, we
can fund almost everything if we supply the technological
improvement, investment in productivity of that nature.  It
really is not a problem.
       The problem is, if you believe in money, in a monetarist
system, you are screwed.  You have to give up the idea of a
monetarist system.  You have to give up Adam Smith, or put him
where he belongs, because with an Adam Smith system,  you can't
save the world; you can't keep the world alive.  Adam Smith is
finally, long after his stinking death, is finally going to come
to his final resting place, we hope not in our neighborhood.
       Therefore, we are going to a {physical economy}, in which
the productivity, {physical productivity} and equivalent per
capita will be the basis of the economy.  That's the nature of a
credit system, a Hamiltonian credit system, with national
banking.  And the national banking is the repository, chiefly, of
the credit system.  And from the national bank you develop and
back up the other banks which meet the standard of banks, real
banks, commercial banks.  And you also include with commercial
banks, certain other kinds of banking which is not of an
interest-bearing quality in the normal sense.  As we did with the
lending, with the housing project, which was killed under the
Carter administration.  So we restore this capability.
       Now, with one simple reform, or combined stage of reform, by
establishing a credit system reform in Europe and the United
States, by adjusting the credit structure based on a production
productivity basis, with anticipated committed productivity basis
-- nuclear power, you get a bonus; thermonuclear power, you get a
bigger bonus.  Matter-antimatter reaction, you get it to work,
you get a bigger one.  High technology, new kinds of rail systems
to replace crowded, congested automobile routes.  All these
things increase the value per capita and per square kilometer of
production of the economy.
       We're going to make a revolution, and they either accept it,
or they die.  And that has to be made clear to them.  The time
has come for a good revolution -- this one.  A global
fixed-exchange-rate system in which the question of actual
physical productivity per capita and per square kilometer is the
standard of measure of value.  If you're producing, boy, you owe
us.  It's that simple.  If you're producing high technology,
you're increasing the investment and the development of our
population, its creative and productive powers, you get a bonus.
Because the Federal government must then judge the relative
productivity, physical productivity embodied in investments.  And
pre-assess the value of these investments for a credit system,
accordingly.  And you will find that per capita, you will
increase the total amount of debt. But your productivity increase
will more than balance it.  And that's the system.  It's that
simple.

                  - Mankind's Immortality -

       The other thing we have to do is a deeper consideration.
You can not have a system which assesses value on what somebody
does in their own life.  You have to assess the immortality of
the soul, essentially, which is based on the increase of the
productive powers of labor, particularly when it comes to money
terms.  The value of the individual person, as expressed in the
development of their creative powers, and the value of the
future, even after you're dead, that you represent for having
contributed to make that future possible.  Therefore, there will
be inheritance.  The inheritance of the yet-to-be-born by those
who are working. These are very elementary principles.  They
involve a deeper understanding of technology, how it works and so
forth; that's all there.

                          30-30-30

LaRouche Webcast Thursday 21. July  1 PM EASTERN

www.larouchepac.com