Following the discussions of potentially fundamentally new U.S.-Russia and U.S.-China economic relations by president-elect Donald Trump with the Russian and Chinese presidents, this week’s Asia-Pacific Economic Conference (APEC) conference in Peru may see the replacement of Obama’s failed TPP “trade deal” with a new trade agreement initiated by China with 19 other countries including Trump’s United States. The steady building of a new economic paradigm around the “win-win” great infrastructure projects of the New Silk Road, will take another major step forward. This is what the United States must join with a new national credit institution, conquering Wall Street with a new Glass-Steagall Act.
Helga Zepp-LaRouche, who will speak to the Peruvian Economists Association national conference on the eve of the APEC conference, gave this send-off to New York State activists heading to Washington to demand Glass-Steagall:
“First of all, I want to say hello to you. Obviously, this is a very important intervention, because the election result in the United States, which many people did not anticipate, is really part of a global process. All the explanations given by the U.S. media are, for the most part, a coverup, or some phony explanation, like this was the FBI who cost Hillary the election, and so forth and so on.
“What really is going on strategically, is that the masses of the population of the trans-Atlantic sector — in Europe and the United States in particular — have really had it with an Establishment which has consistently acted against their interests. What they call the “flyover states” — the people in those states are not represented by the trans-Atlantic establishment. They know that because for them, the living and working conditions in the last decade, one can say, but really in the last 50 years, have become worse and worse. People have to work more jobs and cannot make ends meet. They have many cases where their sons, and sometimes even their daughters, have gone to Iraq five times in a row, to come home completely broken. So people have have experienced that life is just getting worse for them, and they do not have any hope in the Washington/New York establishment.
“And you had the same phenomenon in the Brexit vote in Great Britain in June; which also was not just the refugees, and not just the obvious issues, even if they play a certain catalyzing role; but it was the same fundamental sense of injustice, and that there is simply no longer government which takes care of the common good. And whatever explanations they now come up with, this will not go away until the situation is remedied, and good government is reestablished in the United States and Europe and other parts of the world.
“The immediate next point at which the same resentment probably will show, is in the referendum in Italy — where, on the Fourth of December, they will have a referendum on the change in the constitution which, as the sentiment now goes, will also be a vote against the Renzi government. He promised, first, that he would resign; now he says he doesn’t want to resign: In any case, this process will continue until a remedy has been put in.
“Now, obviously, the Trump victory is an open question, because it’s not yet clear what his presidency will become; but as Lyndon LaRouche has emphasized almost every day since the vote, this is not a local U.S. affair. This is a global issue; it’s an international question.
“One major reason Trump won the election is because, especially in the last period, he had emphasized that Hillary Clinton would mean World War III because of her policy concerning Syria, because she … was proposing a head-on confrontation with Russia. That was absolutely to the point, because we were on a very, very dangerous road to a confrontation with Russia and with China.
“Trump, during the election campaign, had said repeatedly that he would have a different attitude toward Russia. And since he has been elected, he has been on the phone with Putin, and with Xi Jinping, and in both cases, said that he would work to improve the relations between the United States and Russia and with China, respectively. Now, that is obviously extremely important; and the other extremely important question is: Will he carry through with his promise on Glass-Steagall, especially in his speech in Charlotte, where he reiterated that he would implement Glass-Steagall?
“This really is the key. Because only if one terminates the casino economy, which is really the cause for war, can the situation really be brought back in shape. All the progressives — Bernie Sanders, Elizabeth Warren, even [nancy] Pelosi — have already said that they would cooperate with Trump if he will go for this infrastructure/job creation/Glass-Steagall economic program.
“We should give him the benefit of the doubt; but we should also be aware that the entire Wall Street crowd, the neo-Cons in the Republican Party will do everything not to have that. Therefore, we have to have this intervention to really educate the Congress and the Senate on what is really at stake. The whole world is now looking — really holding their breath — over the question, will there be a change in American policy for the better?
“Hopefully, there will. But it requires each measure. Glass-Steagall as an absolute precondition, without which nothing else will work; but that is not enough. Because we are not talking just about a banking reform. We are talking about a completely new paradigm in the economic system. And that has to be defined by the Four Laws of Lyndon LaRouche, which everyone should really make sure that they understand when doing this kind of lobbying work.
“Because Lyndon LaRouche has stressed that the key thing is to increase the productivity of the labor force. Because of neo-liberal, or monetarist policies of the last decades, this productivity has gone down, in the trans-Atlantic sector, below the break-even point. This is why we need a national bank, in the tradition of Alexander Hamilton; we need a national credit policy; we need an international credit system, a new Bretton Woods System; and we obviously need a `win-win’ cooperation of all nations on building the New Silk Road — also inside the United States — to become a world land-bridge.
“Extremely important is the fourth of the Four Laws, which says that you cannot get an increase in productivity in the economy, unless you go for a crash program of fusion power; and an international program for cooperation for space research. Because only if you do these kinds of avant garde leaps in productivity — fusion technology brings you to a completely different economic platform. With the fusion torch, you will be able to have energy security for the whole planet; you will have raw materials security because you will be able to use any waste, separate out different isotopes, and reconstitute out new raw materials by putting the isotopes together in the way required.
“So it’s a gigantic technological leap. And the same thing goes for space technology, because it will have the same impact as during the Apollo Program, when every investment in space technology, in rockets, in other new materials, brought 14 cents back for every cent of investment. And everything from computer chips to Teflon cookware, to all kinds of benefits, occurred as biproducts of space research.
“And to get the world economy out of its present condition, especially in the trans-Atlantic sector, you need that kind of reorientation towards scientific and technological progress, increases in energy flux density. And all of this Green ideology — which is really a no-development ideology — has to be replaced; and the world has to go back in the direction where the real physical laws of the physical universe are the criteria for truth, and not some ideology.”