Show: The LaRouche Connection

Episode: 0732 The Issue is Bankruptcy Part 1.mpg

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Episode Description:

On January 16, one week before Barak Obama’s inauguration as the 44th President of the United States, and again two days after the inauguration, on January 22, Lyndon LaRouche issued gripping and concisely organized calls, in the form of two international webcasts, to the incoming President and those in the broader institution of the Presidency, to immediately put the world financial system into bankruptcy reorganization. Without this measure—which so far almost no “experts” have been wiling to contemplate—no other reforms stand a chance.

In its coverage of these two events, moderated by Debra Freeman, The LaRouche Connection Program 730 featured Mr. LaRouche’s opening remarks and the first question from the discussion session from Jan. 16. Program 731 featured Questions #2-5. Program 732 features the bulk of Mr. LaRouche’s opening remarks to the Jan. 22 event.

LaRouche: “The most crucial issue facing the United States government now, and the world as a whole, is: bankruptcy. The fact of the matter is, that the Untied States is bankrupt. The U.S. system is bankrupt. The U.S. government is bankrupt. And every part of the world is also bankrupt.”

LaRouche: “We’re on the verge, not of a simple bankruptcy, but of a general chain-reaction collapse, globally, comparable in form to the breakdown crisis in the middle of the 14th Century, the so-called New Dark Age. Only this time, the threatened dark age, while immediate, is not merely in Europe; it is worldwide. There is no part of the world which could escape a dark age, unless, the United States government takes the actions now, under the leadership of its President, which put the world through bankruptcy organization before a dark age closes in.”

LaRouche: “Most of the proposals which I hear, from influential circles around and coming into government, is that, while they understand many aspects of the problem, they really don’t understand the problem, and therefore their tendency would be to make a mistake.”

LaRouche: “Now, one of the big mistakes is this: We have newly-elected President who must act now, because he’s at the high point of his ability to act. If he postpones these questions, or tries to approach them gradually, certain evil things can take over ,and remove from his hands the ability to take the kind of action which he might be able to pull off now.”

LaRouche: “The policy has to be, put the United States system into bankruptcy reorganization. Don’t fool around with this reform, that reform, this adjustment, that adjustment—forget it. Put it through bankruptcy reorganization now!”

Mr. LaRouche reminded his world-side audience, watching and listening in via the internet, of his forecast of a general collapse of the system back on July 25, 2007, in a webcast he conducted on that date (See The LaRouche Connection Program Nos. 699, 700, 701) that” at that time we still had room to get out of this mess, without too much drastic action.” But, “that is no longer possible.” Due to Congress’s blocking of Mr. LaRouche’s Homeowners and Bank Protection Act, “what was bad was made worse.”

What’s the alternative to the increasingly more massive, illegal, unconstitutional—but ineffective—bank bailouts? Stop it right now!

LaRouche: “What we have to do is protect legitimate claims and function in the banking system, and forget the illegitimate claims and functions. No bailouts! Put the Federal Reserve System through bankruptcy, putting it under bankruptcy protection—not bailout. Conduct an assessment of the situation of the bank. Those elements which correspond to legitimate functions of chartered banking, will be protected. Those functions which do not, will be cancelled.”

We then proceed to rebuild our economy. Mr. LaRouche discusses Hamiltonian National Banking and what constitutes “physical economy,” in terms of standards of performance in production, productive values, per capita and per square kilometer.

LaRouche: “We enact a national banking act, where we put all the essential functions of banking under protection of a national banking act system. We use the National Bank as an instrument of credit, which absorbs the Federal Reserve System.” For State and Federally chartered banks, “we’ll keep their doors open, maintain their function, and generate Federal credit, as a source of lending power, to get the economy moving again. We will build agriculture, and especially infrastructure.”

Mr. LaRouche then discusses the nature of the modern economy, as necessarily based on scientific progress, constantly upgrading the population’s productivity per capita and per kilometer, with investments in increasingly higher energy flux dense technologies. Since this program has not been carried out since the arrival of the Baby-Boomers in 1967-68, productivity has dived, and the physical economy has collapsed. We did it to ourselves. We have to reverse this trend.

LaRouche: “What we have to do, is unite the United Stated with an anti-British empire coalition, consisting of Russian, China, and India, and organize a world system of cooperation, to bring the other nations in for long-term investments in the world economy.” This can only occur if this initiating group of sovereign nations shucks the current monetary system, and ushers in a new credit-based system.

LaRouche: “Under our policy, money cannot be uttered in the U.S., without the initiative of the President, and without the consent of the Congress. Similarly, no international treaty can be reached, except with the initiative of the President and the consent of the Congress. Therefore, our creation of what we call a “credit system,” is based on that consideration.”

Mr. LaRouche explains the intention of President Roosevelt at the end of World War II: create a system of cooperation under a fixed-exchange-rate system, under which the U.S. would take the vast productive potential which we had mobilized in the form of a military, wartime capability, and take that vast potential, and utilize that to eliminate the British Empire by eliminating colonialism, especially freeing Africa. President Truman reversed that process, and it’s up to us to finish the job Roosevelt started.

LaRouche: “Don’t expect Congress [to deal the “economic royalists,” as Roosevelt called the traitorous bankers then] to bail this nation out from its great troubles now. This can only come by a surge of mobilization of the American people, the majority behind an incumbent new President. It happened with Roosevelt.”

[For a complete transcript of the Jan. 22 webcast, see EIR magazine, Vol. 36, No. 4 (Jan. 30, 2009), pp. 4-41. On line at]

Release Date: Mar. 2, 2009

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