LaRouche: Economic Reality Has To Be Installed

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The United States and the trans-Atlantic financial system are right now plunging towards a financial blowout bigger than that of 2007-08. Today’s corporate debt bubble, at $14 trillion, is bigger than the $11 trillion mortgage bubble of 2007-08, and the 20% level of defaults projected for these debts today, is far greater than that actually experienced in mortgages a decade ago. We are already into “The Big Short,” where Wall Street is lending money to suckers to help them buy up its securitized worthless debts–and then betting against its own customers.

The hysteria exhibited in Wall Street’s daily public freakouts against Glass-Steagall, reflects the banks’ awareness of the coming blowout.

Nothing like the present situation has ever been experienced anywhere before–nothing in the present world situation bears any comparison whatever to that of 2007-08, for example.

NASA Mission Controller Gene Kranz, who went on to be the key Mission Controller for Apollo 13, described in his book, “Failure is Not an Option” (2009), how his boss, the legendary Mission Controller Chris Kraft, had walked up to his desk just two weeks after Kranz had first joined NASA at Langley in 1960. Kraft said, “Everyone else is tied up. You’re all I’ve got. We’re coming up on our first Redstone launch. I’d like you to go down to the Cape, get with the test conductors and write a countdown. Then write some mission rules. When you finish give me a call and we’ll come down and start training.”

“The shock on my face must have registered,” Kranz wrote, “as Kraft continued, ‘I’ll tell Paul Johnson to meet you at Mercury Control and give you a hand.’ When Kraft talked, his eyes never left mine.”

“My days as an observer were over, my chance to get up to speed ended…. From my work, most recently at Holloman Airforce Base in New Mexico, I knew about flying, systems, procedures and checklists. I could figure out what a countdown should contain. Mission rules were different. There had never before been such a mission in U.S. history–I would just have to give it a shot. Since there were no books written on the actual methodology of space flight, we had to write them as we went along.”

Just so for us at this moment. There is no book which tells us what we must do now. We do know that the crash must be pre-empted by an in-depth mobilization of the population–just like mobilization for war, but a mobilization for the economy in depth. Consider Franklin Roosevelt’s “100 Days” program. Lyndon LaRouche spelled out what this means in his “Four New Laws” of June 2014. The revolution welling up from LaRouche’s “basement” scientific team is reverberating this, in conjunction with LaRouche’s “Manhattan Project.” It was seen in Benjamin Deniston’s 15-minute presentation to the Manhattan Schiller Conference on April 13, and in Megan Beets’ April 15 Manhattan class on “Fusion: Uplifting the Human Species.” It is found throughout the Manhattan Project’s music work led by John Sigerson.

“What you can test for, is what you’re doing in the Basement there, and that works,” LaRouche said yesterday. “It’s functional. What we have done in the Manhattan area, has been a revolution of achievement. So, if you want to sink, you can sink, by being silly. If you want not to sink, then what you have to do is you have to behave yourself.”

The United States and other nations have an intrinsic power of economy shown in super-high growth-rates as impulses in certain periods. But then the thieves came and shut it down, and spread the myth that this is the way the system works. But that’s a myth! It doesn’t work that way. All we have to do is as we’re doing in the Manhattan region. We are actually creating a force of economic creativity. What John Sigerson has done with the music is an example of that. So you have to have the generation of a process of development. Then you do not have a real crisis. You may have an embarrassment; you may have lost money. You may have lost your job, but the system itself, if treated properly, will work.

You have to support reality; economic reality has to be installed. If you have that proper reality, you won’t have a problem, because you’ll have gates that will open up for you sooner or later. The problem in economies is when economies are being destroyed.

If you look at it the way I look at it, we have the gates of prosperity looking at us. But we’ve got to maintain them–that’s the difference.

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Mankind’s Endless Development – The Economic Platform

Basement Team member Ben Deniston demonstrates mankind future growth is limitless with Lyndon LaRouche’s conception of the “economic platform.” This twenty minute presentation was given at the Schiller Institute’s NYC conference entitled, “Whither the United States: Nuclear power or New Silk Road?”

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Momentum For Glass Steagall Driving Wall Street Hysteria, as Momentum for the Belt And Road Forum Accelerates

Note: This infographic from 2015 is a bit outdated, but still shows some of the major zones of economic activity from China’s One Belt, One Road initiative. Infographic from merics.org

 

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Wall Street is clearly getting distraught over the momentum for Glass Steagall, not only in the Congress and around the country, but especially in the White House. Former FDIC chief William Issac and former Wells Fargo CEO Richard Kovecevich are trotted out for a Wall Street Journal op-ed today called “The Shattered Arguments for a New Glass Steagall Bill,” which starts out with a blast against President Trump’s chief economic adviser Gary Cohn for backing Glass Steagall separation of investment banking form commercial banking. “This is deeply disappointing,” they whine, followed by a convoluted yarn about how “diversification” of both commercial and investment banks (i.e., by merging them) has brought about the now “stabilized” banking system, pleading against Glass Steagall.

Such desperate cries now fill the financial press literally every day. It can be assumed that they are very well aware that the corporate debt bubble in the United States is now significantly greater than the mortgage bubble was before the 2008 crash, now nearing $14 trillion compared to the $11 trillion and change for the mortgage bubble. Former Goldman Sachs managing director Nomi Prins, author of “All the President’s Bankers,” told EIR in a recent interview that the corporate debt bubble is now far greater than the mortgage bubble which sparked the 2008 collapse, having increased by 75% over the past decade to nearly $14 trillion, and is almost certainly going to blow up within the year. Even the IMF warned this past week that a significant rise in interest rates could provoke a collapse of 20% of U.S. corporations. Panic is in the air, and a solution, such as Glass Steagall, would mean that the speculators on Wall Street would have to finally find useful employment rather than getting another taxpayer bailout, while the useful commercial banking sector would be preserved to again finance the real economy.

To save the U.S. economy, however, the President must also join the New Silk Road, now, preferably by attending the Belt and Road Forum being held in Beijing on May 14-15. China’s Ambassador to the United States Cui Tiankai on Monday renewed the invitation issued by President Xi Jinping during his visit with Trump, for the President to visit China and for the U.S. to participate in the Belt and Road. China Daily, in reporting on Ambassador Cui’s invitation, quoted Helga Zepp-LaRouche from the Schiller Institute forum on April 13-14 on “U.S.-China Cooperation on the Belt and Road Initiative,” saying “The Belt and Road cooperation could use the Chinese experience to build up US infrastructure,” and that Trump could become “one of the greatest presidents in the history of the US” if he joins with China and other nations in the Belt and Road Initiative.

Around the world, pre-meetings are taking place for the Belt and Road Forum — in the last 48 hours alone in Poland, Ukraine, Ethiopia, Kazakhstan, and Pakistan. Chancellor Merkel announced that Germany will send their Economic Affairs Minister, while Chinese Foreign Minister Wang Yi, attending an Ancient Civilizations Forum in Athens invited his Egyptian counterpart and others to attend.

The world is still teetering far too close to the potential of global war, sparked by the dinosaurs of the British Empire desperately trying to preserve their division of the world into hostile camps, East and West, by preventing President Trump’s stated intention to be friends with both China and Russia as the basis for global cooperation for development. The choice is stark and urgent — development and global cooperation, or global war.

LaRouchePAC encourages you to view and circulate the following 35 minute video, which provides an overview of that extraordinary Schiller Institute conference, including high level diplomatic presentations from China and Russia.

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Fireside Chat with Megan Beets—April 27, 2017, 9pm EDT

Share the event, help build the audience!

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Glass-Steagall Sinks British Empire

As support for Glass-Steagall grows in the U.S., the British Empire is getting desperate to stop its reinstatement at all costs. This week, the lies being spread about Glass-Steagall in media outlets are getting downright silly.

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The United States Must Join the New Silk Road; Get the British Empire Out of the Way

Republic of Korea (April 24, 2017) The Ohio-class guided-missile submarine USS Michigan is greeted as it arrives in Busan for a scheduled port visit. (US Navy Photo)

 

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We are in a very volatile situation, most dramatically shown by events regarding North Korea, but underlain by the breakdown crisis in the economy and in policy-failure among the Trans-Atlantic nations. What is required is for the U.S. to cooperate with China and Russia, in the “framework of the Belt and Road Initiative”–as Pres. Xi Jinping told Pres. Trump in Florida April 7–to steer a course to safety, out of the geopolitical confrontations, which is the ‘British Empire’ game.

Look at North Korea, which today is celebrating its 85th anniversary of the founding of its army, with ceremony and weapons drills, amidst fierce rhetoric against the United States. Unless there is a process of talks and deliberation among the nations concerned (four party, six party, whatever), which offers a solution, the situation is beyond dangerous. The Trump Administration is activated, but so far only from the point of view of pressure and threats, even if restrained.

‘Back off’ both of you, was the message today from the China state-owned press, the China Daily, whose editorial is titled, “Misjudgment Is the Biggest Risk to Peninsula.” The fear is that “anything could happen at any time in the tense standoff that had developed between Washington and Pyongyang.” Of North Korea, the China paper makes clear, “judging from their recent words and deeds, policymakers in Pyongyang have seriously misread the UN sanctions, which are aimed at its nuclear/missile provocations, not its system or leadership…They need to reassess the situation so they do not make any misjudgments.” To the United States, the China Daily cautions, “Likewise, Washington should continue to exercise restraint and pursue a peaceful resolution to the issue.”

Pres. Trump is conducting unusual steps in Washington, D.C.. Yesterday, April 24, at the White House, he hosted a meeting and lunch of the 15 ambassadors to the U.N. Security Council, speaking of North Korea and Syria. Tomorrow afternoon, April 26, at the White House, all 100 U.S. Senators are invited to a briefing on North Korea, by the heads of the Defense and State Departments, Chief of Staff Gen. Joseph Dunford, and Dan Coats, National Intelligence Director. On Friday, April 28, Sec. of State Rex Tillerson will chair a U.N. Security Council meeting on North Korea. (The U.S. has the rotating chairmanship for April).

The message in all this so far, as Trump stated it yesterday to the ambassadors, is that the U.N. and Security Council member nations must do more on Syria and North Korea. Treasury Sec. Mnuchin yesterday announced, unfortunately, U.S. sanctions against 270 Syrian scientists and researchers, claiming that Pres. Bashar al Assad had gas-bombed his own people. This, despite the lack of any onsite, proper investigation. Thus, the situation remains fraught, and people suffer and die.

Now look at who is spurring on disaster: The New York Times and Wall Street Journal–direct British imperial channels. The Times (April 24) calls for action now against North Korea, because, “the country is capable of producing a nuclear bomb every six or seven weeks.” How does ‘The Slimes’ know this? From, “a growing body of expert studies and classified intelligence reports,” all unnamed. For good measure, today’s Wall Street Journal throws in that, any investment into the One Belt One Road is “folly,” a waste of money and effort.

Our call is to go out everywhere with the truth. French statesman and presidential candidate Jacques Cheminade, addressed his campaign the night of the election, saying, “we took up the challenges of our time.” Looking forward, “We can become the catalyst of a real change, and inspiration. But on one condition: that you continue to fight for that…”

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Brits: Nuclear first strike? Jolly good!

Subscribe to the new EIR YouTube channel. UK Defence Secretary Michael Fallon decided to let the world know that the Theresa May government would not rule out the first-use of nuclear weapons. The British Empire is doing everything it can to stir up tensions and conflict around Russia and China, and this is yet another example. Britannia delenda est!

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