Lyndon LaRouche Friday LPAC Webcast For December 13, 2013


Watch the full length webcast from December 14th, 2013 below or listen to the MP3 Audio

Transcript as follows:
MATTHEW OGDEN: Good evening. It’s December 13, 2013. My name
is Matthew Ogden and I’m hosting tonight’s webcast, which is
featuring Mr. Lyndon LaRouche. I’m joined in the studio by Dennis
Mason tonight, and we have a series of questions which we’ve put
together to have a dialogue with Mr. LaRouche on some very
significant subjects.
We’re going to begin tonight’s broadcast with a question
which has come in from Washington, which is direct and to the
point. And I’m just going to begin by reading this question. It
says: “Mr. LaRouche, the final adoption of the Volcker rule has
been met with great skepticism from a wide range of quarters;
from former Senator Ted Kaufman to the {Financial Times}, to
Senator Elizabeth Warren, and former regulator William Black. One
very clear response to the Volcker rules was the introduction of
a second Glass-Steagall into the House with identical language to
the Warren-Cantwell-McCain-King bill in the Senate by
Representatives John Tierney and Walter Jones. In light of this,
please give us your appraisal of the status of the Glass-Steagall
battle at this moment. Thank you.”

LYNDON LAROUCHE: Obviously, it is a fight; and it has not
yet ended. There is no conclusion yet, but we will do what we are
supposed to do. I think that’s the fair thing to say. Now, that
means we are going to do things which I’m sure tonight’s events
will bring forth also. That we’re going to flank this thing and
flank it again and again and again. We are not relenting, and
nothing is final until we decide it’s final. That’s my view, and
that’s the view we should follow. We have a lot of problems in
dealing with this, because we have something which is not decent,
and is something I’ve just written about, which is relevant for
the very near future on this problem.
This idea that some people, because they have big mouths, or
a number of mouths, have the right to set forth laws
preemptively, which violate our Federal Constitution. And the
latest thing on this project which has just been pushed through,
was a violation of our Constitution. No such legislation can be
passed and have anything. This was Wall Street, completely Wall
Street intentions. And the question is willpower; who’s going to
buffalo whom? And I don’t think we wish to be buffaloed on this
occasion; I think it’s something too important.
Besides, you know, we’re on the verge of even thermonuclear
war; don’t kid yourself. What has happened is, you find the
entire trans-Atlantic region, which means the entirety of the
United States as a territory, it means it goes into most of
Europe, up to Central Europe, is an area of uncertainty. And
there is nothing good going to happen from there, whereas the
reality is, that what is viable in terms of the world — as a
world pageant, shall we say — is the fact that the region from
the borders of Russia and Ukraine and so forth are viable borders
in terms of politics, because they reach from Russia, Ukraine and
so forth, and they reach westward, or eastward in this direction
across to the Pacific Ocean.
So this entire region is a region which still has viability,
whereas the entirety of central and western Europe and the
trans-Atlantic region in general has very poor viability. And
therefore the power lies there. Now the only difference is, war;
war-making capabilities. And therefore, we’re still in a period
in which the danger of thermonuclear warfare between this region
from Britain and so forth into the United States and what is
coming against from the more viable part of the world, which
includes China, 1.4 billion people; India, 1.2 billion people;
and so forth and so on. Russia — they’re one of the largest
areas in the world. So in terms of the total territory, and in
terms of the strength of nations, Obama’s crowd is a very poor
risk. But the danger is there, and don’t kid yourself. If you
understand what the minds are of the leaders of nations in this
region of the world, you will realize that the possibility is
very much aware here.

OGDEN: Well, I want to get, just with this first question
here, right at what I think is the gut of the matter, which I
think will set the tone for much of the rest of the discussion,
I’m sure.
Keying off of what you just said, those who defend the
Volcker rule are not doing it out of any good intention. It’s
clear that from the beginning, this was intended to be a
diversion from the fight for Glass-Steagall. What they will tell
you, is that they insist that you must allow what they call
“hedging” in the financial system among the banks. What they call
“diversifying risk”, or “insuring against whatnot”. But this
absolutely is clinical of I think a point that you have gotten
at, at the very axiomatic core of what the fallacy of how people
think about economics is. That this is nothing more than gambling
on the future. And gambling itself is premised on the belief that
mankind cannot know the future. So, you take a statistical
likelihood and put some chips here, and then against that, you
put some chips here. And you’re just gambling on something which
you think is unknowable, because it has not entered into your
experience. So you take that versus that, no, you don’t have to
gamble on an unknown future; you just say man can know the
future, and man can create the future. And I think this gets at
the fundamental difference between a gambling system or a
monetary system, and a credit system based on man’s ability to
create the future. And I just want to, I want to say that this
belief that we can’t know anything besides what we experience is
an oligarchical form of mental slavery, which causes man to think
like a beast. And it’s a state of mind that you describe in your
newest report as “sense deception”.
And I just want to read one item from your most recent
report, which you include under this heading “Sense Deception.”
What you say here is: “The unique distinction of the function of
the human mind, with its implications, is of such a nature that
we must neither encourage nor tolerate the notion that there is a
systemic connection between the noetic functions of the human
being and the qualities of even the highest-ranking creature of
merely animal life as such. The essential difference of that
human mind from those of the beasts, is to be located in the fact
that the human individual, in his or her society, is enabled to
act cognitively to the effect that the human mind’s innate
potential ability is to generate acts based on an actual
knowledge of the future. A higher state of existence called
foreknowledge, through which that mind has been enabled to employ
and to generate a qualitative higher ontological state of
existing functions than had existed before.”
So from this standpoint, I’d like you to remark on the
difference between an animalistic gambling system which we call
monetarism, versus a truly human credit system.

LAROUCHE: Well, they come from two entirely different
philosophies. One is the European philosophy, and the European
philosophy is predominantly an oligarchical system policy. It is
not a human system policy; it is an oligarchical system policy,
in which the ruling class is the power. It’s inherently the
power. It’s not questionable. If you can only change the ruling
power by cutting the head of some of the other people. You
decapitate your opponents, and you take over. Because there is no
law as we understand law in the United States in this system;
that’s the oligarchical system. Now our system is very clearly
defined for what it is. It’s a republican democratic system in
which money as gambling has no value. For much of our lives, in
the United States, gambling was illegal. Any form of gambling,
especially in terms of national debt and national assets. In
other words, if you don’t have proof that this is negotiable,
exchangeable for value, precise value, then it’s illegal. So
under our law, as specified in particular by Alexander Hamilton,
remember, Alexander Hamilton was the person who created the
United States. How? Because they didn’t know what to do with the
problem, and Hamilton solved the problem, which was to deny
monetarism and to base ourselves on a credit system. Which means
nothing has any value unless it passes through the
production/consumption process directly. And that’s the same as
our law. So this is illegal, purely illegal, and it’s an
oligarchical thing which exists, when the truth of the matter is
that Wall Street is the enemy of the United States. It’s an enemy
in large degree in usurpian kind of collective control over the
United States government.
This system, this proposal, is completely a fraud. It’s a
fraud against the sovereignty of the United States. It’s a fraud
against the Constitution of the United States. And therefore, we
will, as a people, we will do whatever is necessary to uphold the
law of our Constitution against all interlopers and similar
scoundrels in this matter. They have no, the British Empire never
had an honest claim to the United States, and the whole idea from
Nicholas of Cusa on, was to move forces out of Europe, to move
across the waters — such as the Atlantic waters — into a
territory in the other land, on the other side. And to develop in
that territory — which happens to be our United States territory
— that territory to be the basis, the bulwark from which we
would base our establishment of a new kind of system free of the
evils intrinsic to the old system, the oligarchical system. We
are opposed to the Roman Empire and what is represents; and what
it represented before it was the Roman Empire and afterward. We
are opposed to the enemy of the United States, which is the
British monarchy and the Dutch monarchy, and other kinds of
oligarchical systems. And if we were to give up our sovereign
claim to our rights as a nation, we would be giving up everything
that’s worthwhile having. And therefore, there is no price to pay
which is not so important to us that will challenge our very
existence to defend this institution, this Constitution. Which is
not just an agreement among some people, wiseguys talking
together with each other. This is a principle, a moral principle
against all empire, against all oligarchical systems.
Now we don’t like to go to war against systems simply
because they’re oligarchical. We don’t like to indulge in war for
any reason if it’s avoidable, but, we will not tolerate the
destruction of our Constitution and what it represents, and what
we are smart enough to know it represents. And what we’re on the
edge of right now is a test. It’s a test which may go down in
blood or extinction, but the best thing we can do under the
circumstances is to give in {nothing} to this thing. Under no
conditions will we surrender; not this. We will put up with many
things, but we will not give up what in our Civil War we had to
put at risk to save our nation — and {we did it!} And people
better beware; the enemy within the United States faces the same
danger and risk for its foolishness than an intruding enemy.

OGDEN: Well, immediately after our Revolution, when we
defeated the British Empire and established the United States,
George Washington and Alexander Hamilton established a true
standard of value which became the basis of a completely new
system of economics — the American system of economics. And
Washington is known for having called Hamilton’s absolutely
unique system for public credit no less than a miracle, for
having lifted the newborn United States out of its state of
bankruptcy after the war. In fact, in 1791, which was less than
two years after Hamilton was appointed Secretary of the Treasury,
Washington took a tour of the country and observed that “The
country appears to be in a very improving state, and industry and
frugality are becoming much more fashionable than they had
hitherto been. The farmer finds a ready market for his produce,
and the merchant calculates with more certainty on his payments.
Our republic credit stands on a ground which three years ago, it
would have been considered as a species of madness to have been
foretold. The astonishing rapidity with which the newly
instituted National Bank was filled, gives an unexampled proof of
the resources of our countrymen and their confidence in our
public measures.”
And really, the reason for this miracle was Hamilton’s
unique genius and his understanding of the true source of
economic value, in opposition to a merely monetary measurement.
So for example, in that same year — in 1791 — Hamilton wrote
his famous {Report on Manufactures}. And he describes precisely
in depth how the productive powers of labor of the individual are
increased through the application of technology. I want to read a
few just short excerpts from Hamilton’s report.
He says: “The annual produce from the land and labor of a
country can only be increased in two ways. By some improvement in
the productive powers of the useful labor, which actually exists
within it, or by some increase in the quantity of such labor. The
labor of artificers, or manufacturers, versus that of
cultivators, or farmers, is susceptible in a proportionally
greater degree of improvement in its productive powers, whether
it be derived from an accession of skill or from the application
of ingenious machinery.”
Later in the report, he says, “The labor of the manufacturer
adds value to the raw materials which he manufacturers.”  And
still later, he says, “The employment of machinery forms an
artificial force brought in aid of the natural force of man, and
to all the purposes of labor, is an increase of hands, an
accession of strength.”  And then he says, “The mere separation
or division of labor, between the occupation of the cultivator
from that of the artificer, has the effect of augmenting the
productive powers of labor, and with them, the total mass of the
produce or revenue of a country.  In this single view of the
subject, therefore, the utility of manufacturers towards
promoting an increasing of productive industry, is apparent.”
And then, of course, last but not least, Hamilton says, “To
cherish and stimulate the activity of the human mind, by
multiplying the objects of its enterprise is not among the least
considerable of the expedients by which the wealth of a nation
may be promoted.”
So in that light, I would like you to say a little bit more
about what is a {real} standard of value, rather than Wall
Street’s worthless money.

LAROUCHE:  Okay.  Well, first of all, we should look at the
history of life on this planet, and that is your key.  Because
what has happened, mankind is the only animal, who is not an
animal!   Mankind is the only animal which cooks food, produces
food for itself for its own purposes.
Now, if you look at the history of this, start from, say, an
area of South Africa, where a lot of these original people came
from, and they cooked their own food.  They caught their food,
they manufactured their own food, and they increased the
productive powers of labor, of themselves.  That has gone on
since that earlier period, we don’t know the exact details of
dates and so forth, but we have some good approximations.   And
we find out, if you look at the table of chemistry, which is
fairly indicative of this, but if you have your {Handbook of
Chemistry}, any one of you who has one of these precious
documents, indicates what the essential, implicit history is, by
reading that handbook carefully, and putting a history book
beside it, to see what the progress of mankind was, you see
exactly, how the human species improved itself through rising to
higher and higher levels of chemistry, of productive chemistry.
And therefore, {there lies the root of value}: The root of
value is the improvement of the quality of man, through bringing
to man, skills and means of a higher order, which enable mankind
to rise from what it had been originally, to what is
prospectively today a great system of thermonuclear fusion
throughout the planet, which is at a coming moment of triumph for
our species on this planet {and, beyond it.}

DENNIS MASON: All right, on that, we have a question from
Jason Ross of the Basement Team, which I’m going to go ahead and
read.  He writes:
We’ve all learned in school (or at least heard about)
individuals, who have moved the human race forward. Louis Pasteur
discovered that germs cause disease, Marie Curie discovered
radioactivity, and Thomas Edison, through hard work and
perseverance, invented the light bulb and many, many other
technological improvements.
“Yet, we also learn that the modern industrial nation-state
emerged as a spontaneous phenomenon, the work of countless
nameless individuals motivated by a search for profits or
entrepreneurial enthusiasm.
“This is a myth.
“While many developments and improvements have been made by
people whose names may not be famous, the creation of the
nation-state, and the periods of our most rapid economic growth,
such as in the 1820s and ’30s, the post-Civil War era, the FDR
recovery, and the benefits of Kennedy’s space program — these
were all {planned} developments, {intended} improvements.
“Crucially, these improvements are not accumulations of many
increased local profits, but are global, whole, entire changes to
the economy. The canals of the early United States, like those
inspired by Benjamin Franklin in Manchester, England, transformed
the value of land along the way, the types of industry that were
possible (by making the efficient transport of coal possible),
and created political and cultural integration.
“Lyn, you’ve pointed frequently, as again tonight, to the
{Handbook of Chemistry and Physics}, which reads like a
compendium of our mastery over so many discovered aspects of
nature. Our developments of higher sources of power, such as
moving from wood to coal to coke, have changed the metallurgy and
other chemistry we are capable of:
“Coal mining allowed steel production. Breakthroughs in our
understanding of electromagnetism allowed electrochemistry, the
production of aluminum, and, today, amazing breakthroughs in
spectroscopy that allow us to better understand the molecular
makeup of distant stars.
“The Haber process for nitrogen fixation, developed a
century ago, is today responsible for a large percentage of the
biological nitrogen in all of our bodies. A 2008 study published
in {Nature Geoscience} estimates that the world population today
is double the maximum potential population without the Haber
“In choosing between the recent fad, the cult-belief in the
value of money — in considering between {money} and {value}, the
choice should be clear. Value lies in changing our relationship
to nature, and improving the ability of coming generations to
take part in this increasing work of improvement. One last quote,
and then I’d like you to comment.
“Gottfried Leibniz, the great polymath, wrote in his 1671
{Economy and Society} that our purpose was:
“‘To not only {seek} the majesty of God in nature, but to
{imitate} it; and therefore to honor Him not only in praises and
prayers, or with words and thoughts, but also by Good Works; not
only to {contemplate} the good He has done, but to devote and
offer oneself to Him as an {instrument}, and thereby to
accomplish more good to the world and especially to the human
race, since Man is the best in all visible Creation, in which we
have the power to work.’
“Mr. LaRouche, your thoughts, please. What’s really
{valuable} in an economy?”

LAROUCHE: Well, the point is, I think I would use different
terminology, because you’ve said what you’ve said, and that
stands for what it stands for.  But if you want to get to the
heart of the matter, as opposed to the facts of the matter, I
think the heart of the matter is really more essential on this
occasion than the facts of the matter.
Look at the magic of mankind.  Look at the human species,
and look at its record.  And what is its record?  What was the
record?  What drove this thing to what it has become today.  And
again, the {Handbook of Chemistry} is very useful if you read the
right pages, or between the right pages, and that’s the proper
What happens is, the increase of energy flux density, of
human activity is increased.  Mankind is not a trader, mankind is
not an acquirer of wealth — that is not the principle.  That may
be the {effect}, it’s not the principle.  What’s the principle?
Mankind {evolves} to a higher form of existence than before. This
process occurs, through development of the increased {energy flux
density} which mankind’s efforts are capable of recognizing, and
utilizing, and achieving.  For example, today, what are we on the
bridge of?  We’ve been on the bridge of this beginning in the
1970s:  energy flux density!  We have now reached a point of
development, a takeoff point, which, when achieved, will enable
us to actually transform the inner part of the Solar System, the
inner part which includes Earth and Mars and a lot of asteroids,
and other things.  We’re on the verge of being able to reach
control, over that mass, say, from the entire area defined by the
Mars-Earth orbit, with all the things floating around, junk up
there that’s there.
Mankind will not just acquire things like some explorer
trying to dig up ore from someplace.  We’ll do that, but it won’t
be done that way.  What will happen is, we will increase the
energy flux density, to very high intensities, as typified the
progress of energy flux density of type.  Going to that now,
which has been stopped, effectively stopped in the 1970s — they
just put the block on it, “you can’t get anywhere with it, you
can’t move further.”  But, if we develop energy flux density, the
way we can {and must do it}, we are actually going to be able to
seize control over the entire volume of space defined by the
Earth-Mars relationship, with all the asteroids and things in
between, {under our control}.
No longer will we have to sleep at nights, wondering if some
asteroid is going to destroy the entire human race.  We will
soon, if we do our job, we will be able to control those
asteroids.  It’s going to be a little hard to do there, and it’s
going to take a little time, but once we get to the energy flux
density level, we will go higher.  And this is the history of
Mankind’s progress is going higher, to {higher levels of
energy flux density}!  And we have now acquired the knowledge,
from experience, of {how} that works.  We no longer think of the
things we talk about as elements — we used to talk about
“elements,” right?  Now, we don’t talk about elements, we talk
about {creating} new elements!  And {that’s} the big change!
And so that is really the driving force, if we understand
it, we have to understand that we have, within our means, the
open gate of access to a still-higher level,  matter-antimatter
reactions, for example, which is another, more powerful factor
here.  {So mankind has been that, from mankind’s birth as
mankind!}  Mankind has {always} had that potential in it.
But what’s happened?  We had the oligarchical principle. The
oligarchical principle {hates} mankind!   It always has hated
mankind!  It has no intention toward gaining and improving
society.  The oligarchy has no desire to improve society.  The
record of the oligarchical system, is to destroy society!  Rome
was destroyed by the Romans!  Most of the systems of society,
that were once powers, have been destroyed by the very system
that created them, {because they didn’t want to improve the
system!}  They wanted to establish a {control}, like bunch of
bandits, over human beings.
And when they thought those people were too numerous, they
killed them off — as the British Queen is doing today!   Her
policy is to kill off the human species, to reduce it from 7
billion people to a miraculous, less than 1!  {That’s} the
oligarchy!  {That’s} Wall Street!  And everything that Wall
Street resembles.  That’s the reality of this thing.
We are part of a process.  We’re not a bunch of smart
things, we’re not smart animals.  We’re a process, a human
process, which is not just acquiring new skills.  These are not
new skills, we are rising to {a higher quality of a personal
existence}, and what we embody and the principles we discover,
which we apply to these ends, these are {principles}, which we
acquire — we grow them, so to speak.  We become greater than we
were before.  We achieve things that were impossible before, by
people of qualities before.
So it’s not buying and selling, or anything like buying or
selling, involved, it’s a much higher form:  It’s the ability to
raise the level of existence, and insight, and power, of the
human species per capita, to {grow}, rise up!  And it’s when
mankind gets out of the woodbin, and realizes that, when mankind
realizes that mankind’s {development} is mankind’s {existence},
personal development is the improvement in the quality of your
own personal existence. That’s the change in attitude which has
come to sit upon our shoulders, shall we say, now.  And that’s
the mission we have to define.
We can not accept any more these El Cheapo interpretations
of future history.  You want to talk about history in those kinds
of homely terms, talk about the past.  You want to talk about my
future, my future universe?  Get onto a different plane.

OGDEN:  In light of what we’ve established thus far, on what
{real} value is, I want to take a look at the worthlessness of
Wall Street.  Instead of applying the Constitutional principles
of credit and value, as Hamilton defined it, what Wall Street and
the policies of Wall Street have done, is to violate our
Constitution, and to insult the very memory of Washington and
Alexander Hamilton.  What the Federal Reserve has done, populated
mostly by Wall Street bankers, has been to take our Hamiltonian
system of national credit, and {pervert} it, and {twist} it, and
turn it into a mass of absolutely fake money!
Since Obama came into office through the so-called
“quantitative easing” policy, the Fed has pumped almost {$4
trillion} of absolutely fictitious money into the dozen biggest
banks on Wall Street, making them {40% bigger} now, than they
ever were at the time of the 2007-2008 crash.  This has been done
completely in isolation from anything having to do with the real
economy, as we heard Hamilton, earlier, describe it.   And as
we’ve seen in the graphics that we’ve exhibited here in previous
weeks, where you’ve seen that these banks, although the deposits
are going up, along with quantitative easing, there is {no
lending} to the real economy at all.  They’re only using it has
gambling chips and using it to speculate with.
So, just to clarify this a little bit.  Since September of
2008, all of the increased deposits in the biggest Wall Street
banks, which have grown by $2.2 {trillion}, all of these
increased deposits, have come from the Federal Reserve, have come
from the quantitative easing/money printing policy.   And this is
shown in the Federal Reserve’s own data, in what they call
“excess reserves,” and it’s admitted by all the biggest banks,
Since 2008, {all} of the Federal Reserve’s quantitative
easing money has gone to these big banks on both Wall Street and
in Europe.  {None} of it has gone into great projects, {none} of
it has gone into new infrastructure platforms, none into
investments in manufacturing and farming, nothing for anything
that actually produces.  The six biggest banks’ {lending} has
collapsed by $700 billion even though their so-called “excess
reserves” have increased by over $2 trillion — and the lending
is still falling.
So, while these six banks have 65% of all of their deposits
— 65% of all the deposits of the banking system of the United
States are in their values; these six banks have 65% of all the
deposits in our system.  So what they have done, is increase
speculation:  Financial derivatives, securities, swaps, repo
loans, an incestual relationship from one bank to the other, and
trillions… JPMorgan itself has a trillion and a half dollars in
this stuff.  That, if you compare it to the amount of loans that
JPMorgan, the bank, supposedly gives to businesses and
households, that is completely dwarfed by the amount of
speculative assets that they have on their books.  And the
Federal Reserve and the U.S. Treasury are {paying them interest},
on their reserves in this Monopoly money.
So, you really have to ask the question:  Are these really
even banks, at all?  Or are they just gigantic, risk pools, being
hyperinflated by the printing of trillions of dollars in
absolutely fictitious money by the Fed?
So the only way to resolve this, as you have said, tonight,
is by breaking them up, with Glass-Steagall, and {cancelling}
this fictitious value.
In light of all this, what I want to ask, is, what is the
consequence for the people of the United States, of {not}
restoring Glass-Steagall?

LAROUCHE:  Mass murder.  Mass murder and the extinction of
the human species.   Because such an operation, carried to that
extreme, will actually result in a thermonuclear war.  And a
thermonuclear warfare, on the one hand — for example, a key
example:  You have the trans-Atlantic region, now the
trans-Atlantic region is somewhat fluffy on the edges, but it’s
there.  Then you have the area from, say, inside Russia toward
East.  And that goes all the way into the Pacific Ocean.  So now
you have Pacific powers, which includes India, 1.2 billion
people; 1.4 billion at least in China, and so forth and so on;
which means that if you’re going to talk about thermonuclear
warfare, which is what we are talking about, just imagine what
that means to the human species.  You’re talking about a mutual
extermination war.
Now, this is already combined with what the British Queen
has established as her policy, which is the immediate reduction
of the human population from a previous 7 billion people, to less
than 1, which is the Queen’s objective right now.  We see in the
United States, we see in Europe, we see {genocide}.  I mean,
remember, already, what Obama put into place in the {first year}
of his occupation of the Presidency, was what?  Adolf Hitler’s
T-4 policy!  The policy for which Germany was condemned!  Not
just charged, but condemned, to bottomless kinds of purges.  And
that is only a {mild version} of the policy the current Wall
Street and its friends represent.
So now you have a contest, where Wall Street says, together
with its swinish accomplices, that {they} are the tyrants of the
world, whereas other countries have a different opinion, saying
that they are sovereign nation-states.
Now both of these groups, the two groups, are thermonuclear
war powers; both are bent on the extinction of the other,
provoked by the one system, and reacting in defense by the other.
What chance does mankind have, unless {we, in the United States,
rise up against the traitors} in our own Congress, and elsewhere,
who are willing to sell out to these swine, or sell out to these
fools, who are willing and rather would kiss the butt of a fellow
member of Congress or something, rather than actually do anything
good?   And therefore, the time has come that this is the issue:
Are the leading people in political power, in the United States,
do they have {the guts and the decency, to stop their nonsense,
and act like Americans, again?}
And that’s going to be a {hard} road for them to haul, but
it has to be done.  Because we are now gambling with the
extinction of humanity, because a thermonuclear war between these
two groups, which are now organized in mutual defense, which will
quickly turn into mutual warfare — the thing we have to do, we
have to throw the oligarchy out of power in the United States!
And that can be done.
These guys have money?  We talked about their “money.”  They
{have} no money!  It’s fake!  Wipe it off the books, boys!  It
doesn’t mean a damned thing!  We’re going to have real Uncle
Sam-style, and we’re going to use that, with the aid of
Glass-Steagall, and that’s what’s going to happen.  And it must
happen, otherwise, there may be no human beings around, anywhere!

MASON:  On the fight for Glass-Steagall, there was a
resolution passed by the Detroit School Board which is very
strong.  It goes after “bail-in” by name, and I’m just going to
read a few sections of it, because I think it’s really good. It’s
the “Resolution of the Detroit Board of Education Condemning the
Bankruptcy Ruling and Urging Swift Congressional Passage of
{Whereas,} The recent court ruling of U.S. Bankruptcy Judge
Steven Rhodes, allowing the Chapter 9 bankruptcy of Detroit to
proceed, was a witting miscarriage of justice. Its intent is to
hasten the collapse of the once decent standard of living of
Detroit’s citizens and to further the death of our great city. We
must defend the people; and,
“{Whereas,} The Board of Education denounces this ruling for
three reasons:
“First, it pays off the Wall Street banks at the expense of
our citizenry. It calls for paying the financial debt and the
interest rate swaps that were foisted on our city by Wall Street
bankers by ‘bailing-in’ hard-earned city pensions. The ruling
says that Detroit is not obligated to pay its employees the full
value of their pensions. Many city employees are not eligible for
Social Security and depend on their pensions, without which many
will be condemned to an early death. The average city pension is
$19,000, and if it is cut 20%, 50% or more, that will force
people to choose between food, medicine, rent or other
necessities. Hence, it will likely shorten their lives.
“Second, it abrogates the state constitution, which
explicitly says that the pension benefits ‘shall be a contractual
obligation thereof which shall not be diminished or impaired
“Third, it sets a dangerous precedent for cities around the
country. The court ruling sanctions the spurious arguments
outlined by Jones Day attorneys months before the bankruptcy in a
paper entitled, ‘Can Municipalities Can Use Bankruptcy To Solve
Their Pension Woes?’ Now cities around Michigan and the nation,
from Philadelphia to Los Angeles are investigating bankruptcy as
a way to stop paying pensions in order to pay the Wall Street
Then the resolution goes on to detail parts of the swindle,
and then they come back to reference Franklin Roosevelt.  They
“{Whereas,} There is an alternative to this subservience to
Wall Street. The U.S. Congress can quickly pass two bills to
restore the 1933 Glass-Steagall Act, and then launch a vigorous
industrial and infrastructure recovery. This policy worked under
Franklin Roosevelt, and built the nation and the state of
Michigan out of the Depression. Glass-Steagall was law for 66
years and prevented our people from any significant banking
collapse like the one we saw in 2008. The repeal of
Glass-Steagall in 1999 led directly to the financial bubbles that
burst in 2008. Detroit was one of hundreds of cities that were
lured into the bubbles by endless refinancing of debt and
purchase of interest rate swaps and other derivatives from Wall
Street. Now cities around the country from Birmingham to
Stockton, California, to Harrisburg, Pennsylvania, are paying the
price by forced bankruptcies….”
And then they go on to outline the bills that are in
Congress.  And then, this is interesting where they go after the
judge that was responsible for the ruling.  The resolution
continues, they say
“{Whereas,} In addition, we call upon the legal community,
the labor movement, and our fellow elected officials to denounce
the outrageous ‘legal’ ruling of Judge Rhodes. Judge Rhodes
should be treated with the same contempt that eventually visited
British Lord Chief Justice George Jeffreys of the infamous Bloody
Assizes, who spent his last days locked up in the Tower of
And for those who don’t know what the Bloody Assizes are,
following the Protestant uprising against Catholic King James II
in 1685, James II wanted to teach the rebels a lesson.  As part
of this, Lord Chief Justice George Jeffreys came in, and ran a
bunch of very speedy trials which killed — publicly,
grotesquely, graphically — a lot of people.  In some cases,
there was as little as two days between the conviction and the
public executions; it didn’t matter if you were in high standing
or low standing.  In some cases, there were children, the age of
eight years old, who had no idea what the word “treason” meant,
who were convicted of it, and killed.
Now, when James II left London, Jeffreys was on his own, and
he was drinking in a pub, and some people had recognized him —
and you can imagine what happened.  The mob formed around him
very quickly, and at the time, shortly thereafter there was
actually ballad about the event. I’ll read it, I’m not going to
sing it.  It goes

“Limb him they would, as boys at Shrovetide do:
Some cried I am for a wing, an arm; for what are you?
I am for his head, says one; for his brains, says t’other
And I am for his nose; his ears, another.
Oh, cries a third, I am for his buttocks brave;
Nine pounds of steaks from them I mean to have.
I know the rogue is fleshy, says a fourth,
His heart to me will be of greatest worth.
Yes, quoth another, but not good to eat, —
{A heart of steel will ne’er prove tender meat!}”

Now, they didn’t rip him limb from limb; he ended up in the
Tower, where then lived out the rest of his days, shortly, and
then died.  This is what was referenced by the Detroit School
Board resolution, calling for the reinstitution of
Glass-Steagall, in response to the court ruling by Judge Steven
So if you could comment on this?

LAROUCHE:  Well, on the question of the judge, I think we’ve
said that; no more is needed on that, let’s get back to real
business.  And we have a situation before us:  What is the real
story about Detroit? What is really true about that?  Now, we’re
focussed on the fact of the injustice which is imposed, which is
a murderous injustice.  And it’s in keeping with the Obama
Administration and what it represents along with the Bush
Administration, beforehand.  All that is true.
But what really happened in the state of Michigan, and
around?  What really happened?  What’s the real cause, and
therefore, what should we seek as the real cure?   Well, I was in
key position of organizing things, when we were in a struggle to
defend the auto industry’s maintenance in the United States.  And
we had assembled people from various trade unions, and others,
including aerospace and so forth, all included, from north to
south of the United States:  We pulled together a record of the
territories in the United States, which had been, during World
War II levels, had reached a certain level of capability.  And
every part of this system was capable doing {anything}, because
during World War II what we had done, we had taken Detroit as a
central feature, along with things we had in California and so
forth, of the “make-anything” business!  Whatever it was!  New
kinds of aircraft, new kinds of weapons, all of this was being
made in the United States, by the people of the United States,
around the aircraft industry and the automobile industry.  These
were the core which were assembled suddenly in order to create
our ability to fight World War II, {for the world}!  Not just for
us, as a defense, but for the world.
What happened, then?  Well, somebody got the bright idea of
shutting down the auto industry and shipping the auto
manufacturing to China and other parts of Asia.  This left behind
us, two things:  Immediately, the loss of the automobile
{industry}.  Now, think about the whole area of the steel
industry and the steel-manufacturing industry and things related
to it, in that part, from St. Louis along the whole strip and
then you have down on the coast, on the Mexico coast.  What
happened to that?  {It was all essentially shut down!}  What
Well, essentially, the result of that, plus other
follow-ons, was that what we had as a manufacturing industry, a
{highly skilled} manufacturing industry, a {make-anything}
industry, could make anything for any part of the world, on the
basis of this foundation.  All we had to do, was call full troops
in, get ’em refurbished, just as we did in World War II.  And we
would have the whole thing back, and there {would be} no Detroit
problem, there would {be} no Michigan problem today!  Or the
whole region, which was hit by that, all the way to St. Louis.
Then you have on the West Coast, in California, and up to
the north part of the West Coast, you have the same thing:  Whole
areas, gigantic powers in the United States, today {there’s
almost nothing left of this! Nothing!}  It’s been taken away,
destroyed, gutted!
And the charge was “Well, Americans are too expensive.  We
need cheap labor.  We can’t get it in the United States.  We’ve
got to go to foreign places, where people are used to slave
conditions.”  That was the argument.  The automobile, if it’s a
new one, of recent vintage, is one of the things that’s produced
in that part of the world.  There’re no longer American-made
automobiles, and airplanes are almost in a similar condition.
So how are you going to deal with this problem of Michigan,
and Detroit, in particular?   Where is the solution coming from?
Where is the restoration coming from?
Well, I know where the restoration {can} come from:  It can
come from throwing these bums, of Wall Street, out, first thing;
cancel their so-called assets, which have no value — these are
fake assets, and everybody and every book knows it!  {Cancel it!
We don’t owe them anything!}  Their assets aren’t worth much of
So what’re we going to do?  The first thing we’re going to
do is get Glass-Steagall.  That’s the {first} thing we do!  And
it’s the {only} thing we do!  The other things are just
correlative with Glass-Steagall.  Glass-Steagall all the way, up
and down.  But that’s not going to be good enough:  Because the
United States, because it has lost its productive power,
temporarily, is not capable of meeting these measures, well,
how’re we going that?  Well, since we just cancelled all this
fake debt and fake credit of Wall Street, we’re just going to
cancel these Wall Street claims!  All of them.  We don’t want any
more of this rubbish.  It’s not {worth} anything, it’s a disease!
It’s not a quality, it’s not an asset, it’s a disease!  So get
rid of the disease, called Wall Street.
What do we do then?  We, being the United States, and
knowing what the United States is capable of doing, under our law
— {under our law}, not {their} law, {our} law, the law of the
United States, our Constitutional principle; we then create a
large credit account, which we assign to the Federal government
to control.  This will be a banking account, in which the old
style banking system, as the United States banking system,
putting up this amount of promise, to cover for banking; to fund
the banking system with the ability to start to hire people to
work on these kinds of projects:  We do that.  And that is the
mechanism, also based on increasing the energy flux density
applied, because productivity is a function of energy flux
density, therefore you have to increase energy flux density —
get rid of all this Green nonsense, which is pure nonsense. And
go into high gear for accelerated rates of increase of
productivity per capita, in terms of real terms of value per
On that basis, we simply put the United States back to work,
in the same way that Roosevelt approached the same kind of
problem, in 1932-33 period.  We will be able to that.
We also have, now, certain technologies which we can
develop.  They’re there, they need to be developed.  They could
be developed in a reasonable period of time:  thermonuclear
fusion.  This kind of driver, which will we will immediately have
to cooperate with Japan, and China, and India, and so forth, in
the cross-Asian basis.  We’re going to have to create a NAWAPA
program, also, and these two kinds of programs are going to be
the driver which play a role complementary to what was done by
the United States in World War II, in organizing for World War
We’ll take all this trash, class it as trash, junk it, bury
it.  And we’re going to have to bring the people back to work.
Now, if we bring back people who are now aged, or almost retired,
we’re going to have to take care of them in the usual way.  But
if we increase the productive powers of labor per capita in the
United States, in the same way we approached the problem back in
World War II, and before — we did it before, actually — then we
can solve the problem.  If we have such a program, then you may
say, “Yes, we can meet our responsibility, to the people of
Detroit.”  We will, whatever!  We’ll meet that challenge! Because
it’s a lawful challenge.
{But!} We won’t be able to do much else about it.  So
therefore, the important thing is, we have to restore the
productive powers of labor of the United States, in terms of the
level of development.  And therefore what we’re going to have to
do, is take, the same thing, as I said:  Revamp the banking
system.  We want a United States banking system.  We don’t want
this imported crap any more!  This thievery, this fake money.
But we’re going to have to have a credit system, which is
going to have to be very solid, because we can not risk inflation
under those conditions.  We’re going to have to put people back
to work, and accelerate the rate of putting them back to work on
the basis of technology.  And the way we’re going to do it, is
we’re going to concentrate on energy flux density.
Now we are not going to be able to get immediately to the
kind of program of energy flux density we require, thermonuclear
fusion.  But we’ll be able to build our way in that direction.
And in the process of building it, we will get byproduct
technologies which we will then immediately start to apply, to
our productive labor force and to our economy.  That means, by
cancelling worthless assets, and they are worthless assets —
Gambling debts are worthless assets!  We do not honor gambling
debts!   The United States government should never honor gambling
debts of anyone.  That used to be our policy, that is part of our
law, intrinsically.
So, Wall Street essentially is going to have the rejoicing
era of freedom.  {It will have no more debts.}  They’ll be
shriven of those evil things, those evil debts.
But we are going to have to have a job done, of mobilizing
our people, by an awareness program, to make people aware of what
was wrong, that was done to them since Kennedy was murdered.  And
take that as our starting point and say, “Since Kennedy was
murdered, we must rebuild the United States, to justify that
situation.”  And doing that, we can succeed.
Now, the problem we have, in this respect, is, we got a
bunch of stinking cowards, especially in members of the Congress.
That doesn’t mean they’re entirely bad!  But they certainly are
first-rate, or last-rate, if you prefer, in terms of their
capabilities, their honesty, their efforts, and so forth, they’re
the worst things you could possibly have to run your government!
But, they’re what we have, and we’ll have to do the best we can
in managing them, and making them more productive than they are
But we’re going to take this crowd, the Wall Street crowd —
“Boys, you are gone!”

OGDEN:  Well, on that note, I can say that we had a banner
on Capitol Hill this week, which was apropos of what you just
said, in {big} letters, right there in front of the U.S. Capitol,
it said: “Wall Street Bets Are Worthless Debts! Restore
So I think this is a good place to end.  There’s a lot more
we can explore, but I think we’ve presented a very comprehensive
picture, and I would like to thank everybody for joining us
tonight, and thank you, very much, Lyn.
So please stay tuned to, and that brings a
conclusion to our webcast tonight.

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