||This article appears in the July 31, 2009 issue of Executive Intelligence Review.
Take Back the Bailout,
by John Hoefle
Reorganize the System!
[PDF version of this article]
July 24"We are in a global economic breakdown," Lyndon LaRouche observed today, adding that those who disagree, like President Barack Obama, are living in a dreamworld which will soon be shattered by reality. LaRouche pointed to the days around Oct. 12 as a crucial turning point, and warned:
My estimate is that a complete breakdown of the global financial and economic system is highly likely around the 10th to 15th of Octobersay Oct. 12, after the end of the U.S. government's fiscal year. We're looking at a threatened potential, total, chain reaction breakdown of the U.S. and the world. Nobody is minding the store in Washington, or in the British Vampire!"
The U.S. is hopelessly bankrupt, and only a bankruptcy reorganization of the type I've specified can save it. We have to take back all the bailout money, and use it for the reorganization.
State of Collapse
To understand what LaRouche means, you have to look at the state of the system in physical-economic terms, and in terms of long-term trends. Ignore the daily movements of the stock markets, the quarterly balance-sheet lies of the banks, and other financial trivia, and focus on those processes which are necessary to keep the human race alive.
The United States became the world's leading industrial power because of a multi-generational commitment to improving our infrastructure and the energy-flux-density of our economy, as a way of increasing the productive power of human labor. Large-scale infrastructure projects, such as water management plans, often take 50 to 100 years to reap the full benefits, but return far more to the economy than they cost, over time. Projects to make the Mississippi, Ohio, and Missouri river systems navigable for freight, were essential to the development of the nation, as were the development of the transcontinental railroads, the national telegraph system, and the continual improvement of farmland.
In recent decades, especially during the rise of the Baby Boomer generation, we have turned our backs upon scientific progress and infrastructure development, in favor of financial speculation and instant gratification. Rather than continue to improve our infrastructure for the benefit of future generations, we began to ignore it. Rather than increase the energy-flux-density of our economy by going to nuclear power, we rejected it, remaining stuck in an economy dominated by fossil fuel. Instead of leaving the world a more productive place than we found it, we are handing future generations a planet which is physically depleted, financially bankrupt, and on the verge of complete breakdown.
Look across the landscape. The Western states are drying up, whereas they would have had plenty of water had we developed the North American Water and Power Alliance (NAWAPA) project when it was proposed beginning in the 1950s. Our family farmers are dying out, and being replaced by corporations which are more interested in producing profits than food. Our cities are over-crowded; our roads congested and riddled with potholes; and our electricity grid is straining to meet our demands. Most of our industry has been shipped overseas, turning our industrial belt into a rust heap. In sector after sector of our economy, what we find is collapse. Things are getting worse, not better, and doing so at an accelerating rate.
This is reality, and it is scary. The picture is similar all across the so-called developed sector, and even worse in the so-called developing sector. The Four Horsemen of the Apocalypse are on the march, as war, famine, disease, and death spread around the planet.
The cause of this collapse of the world's physical productivity can be laid squarely at the hooves of the Brutish Empire, the policies of which have turned the global economy into a giant, and hopelessly bankrupt, casino. It is the empire which has pushed globalism, with its creation of financial markets across the globe, the emergence of giant cartels whose power dwarfs that of nations, and the constant search for ever-cheaper labor. It is the old colonial policies of enslave and loot, married to modern technologies, and hidden behind familiar corporate logos.
The response of the empire to the financial crisis has been a series of demandsdemands for a bailout, demands for new income streams, demands for sacrifices by, and of, the people. This can be seen clearly in the contrast between the Obama Administration's approach to the welfare of the financiers and the welfare of the population. The administration has gone all-out to save the parasites from the consequences of their folly, showering them with trillions of dollars of government largesse, bending and breaking the rules, giving them virtually everything they want. When it comes to the welfare of the people, however, the response is far different. Instead of largesse, we get the bill for the bailout, reductions in services, and further depletions of an already tattered infrastructure.
The most telling response is Obama's health-care plan, which is openlythough not admitted to bemodeled on Adolf Hitler's "useless eaters" plan. That should not be a surprise, given that Hitler himself was a product of the empire, as was the fascist movement which was imposed on Europe in the 1920s and 1930s. The recently released plan to start charging people by the mile driven, effectively turning all roads into toll roads, is another example of this fascism at work, as is the cap-and-trade policy.
The financiers' response to this crisis is to cover their losses by gouging the population, charging ever more for an ever-shrinking market-basket. Look at the way oil prices are manipulated, and the way Enron and its fellow energy pirates raped California in 2000 and 2001, and you see the future, under the Brutish Empire's Obama regime.
Rather than rebuilding our infrastructure, we are to be charged for the privilege of using what's left of it, turned into peasants in our own country. All the while, we'll be serenaded by Obama's behaviorist kooks, telling us we're saving the planet. We're not collapsing, we're going "green," they'll say. Sure we are: all the way to soylent green.
But what about the green shoots, the bank profits, and the stock market, some might ask. Aren't these signs of recovery? No, they're not. First of all, a recovery among the fleas is not good for the dog, and second of all, there's no recovery among the fleas; some of the fleas are eating more because they've turned into cannibals. They're all doomed, from Goldman Sachs on down. The system itself is breaking down, because it has violated the laws of economics.
The only solution at this point is the LaRouche solution. Take back the bailout money, put the empire's dead monetary system into bankruptcy protection, and return to American System economic policies. Put our efforts into building infrastructure and developing a nuclear-based economy, and protecting the population while we recover.
There is no way to save the money we made during the bubble, because it was never real. Our real assets are not financial, but physical, beginning with the creative minds of our population. Rather than killing people to cover derivatives losses, we should kill the derivatives.
Reality is not pleasant. We have dug a giant hole for ourselves, and it will take time and effort to dig our way out. But first we must stop digging, and stop our slide into fascism and global breakdown. Let go of your delusions, and join us in a genuine recovery. Don't eat the soylent green.