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PRESS RELEASE


Major Mexico Coverage of LaRouche
Videoconference Call for
`World Bankruptcy Reorganization'

MEXICO CITY, Aug. 3, 2001 (EIRNS)—Two major national dailies of Mexico ran excellent coverage of Lyndon LaRouche's Aug. 2 videoconference. Both articles published by Milenio and El Financiero feature LaRouche's statement that the world financial system is bankrupt, that we are in a depression already, that the crisis is systemic, and that that situation should be acknowledged, so the world financial system can be restructured; and that LaRouche provides a new standpoint from which to view the crisis. The texts of the articles follow, in rough prepublication translation.

El Financiero's article was run on page 6, under the headline, "Bankrupt: The World Financial System," and kicker: "Another Global Economic Order The Only Solution: LaRouche." It reads:

"The world financial system and the U.S. banking system are bankrupt, which situation explains the downturn which the global economy is going through.

"Because of the above, world leaders should carry out a total restructuring of the financial system which reestablishes a model similiar to Bretton Woods, said Lyndon H. LaRouche, Jr.

"In addition, the current financial system has unpayable debts, as a result of a destruction of the neoliberal model of growth itself, which explains the current world economic slowdown, since this is not a cyclical problem such as that of 1929, but systemic.

"The editor and founder of Executive Intelligence Review explained that because of the above, the only way to reactivate the world economy and help trade, lies in the creation of a new world order which forgives debts are are unpayable, above all, those of the poor countries.

"'We now have trillions and trillions of debts, and they can't be paid, because the world is bankrupt; the U.S. banking system is bankrupt, but Japan is also bankrupt, and it is the second monetary system in the world. Practically all the countries, except China, are bankrupt.

'But the United States hasn't collapsed because it has the political power to steal, which it has done in Mexico, in Russia, in Japan, and recently from Europe, since the euro was looted to aid the dollar,' he said.

"'It is not the economic system which has looted the world; it has been the United States, which used the system to do so,' he emphasized.

"The plan should set up a new fixed rate monetary system, which would permit the issuance of long term loans for great infrastructure projects by means of the world market.

"In a teleconference from Frankfurt, Germany, he mentioned that the United States and Mexico should cooperate in these types of endeavors. Infrastructure must be used for development, and serve as a motor for the generation of jobs, and to create a basis for reconstructing the economy.

"The economist lamented that the President of the United States, George Bush, lacks adequate leadership qualities to reorganize the financial system.

"'The world is not on the edge of an economic depression, since it is already in one, and the problem we have is that the President of the United States does not function,' he maintained.

"'When we had economic problems in the days of William Clinton and Robert Rubin, the world thought that Washington would respond someway, but what has happened is that the United States i in a permanent political crisis, and only when it changes its political profile, will a rational response be seen,' he argued.

"LaRouche, who has been a pre-candidate for the Presidency of the United States for the Democratic Party on various occasions, said that the International Monetary Fund (IMF) should be restructured, since it has served at times to carry out injustice and discrimination.

"For example, under the IMF, obligations have risen, such that countries will financial problems have to pay for its losses, and its turns out that countries of Central America have paid several times the amount that they owed, and they still have greater debts, due to the IMF's arithmetic and the system of floating exchange rates.

"He recognized that there could be a lot of opposition to the restructuring of the financial system, because many bankers and political leaders consider the debts to be payable, even at the expense of people's deaths."

Milenio ran its coverage in the business section, page 35, under the title: "World Bankruptcy, Choice for Economic Advance."

"The world should declare itself in bankruptcy in order to advance towars the restructuring of the world financial system, stated the economist, Lyndon LaRouche.

"From a new standpoint, he asserted that it is necessary to freeze the unpayable debt of the countries, and guarantee essential employment of priority industries, the payment of pensions and the good functioning of the national banking systems.

"It is a priority, he said, to reach new agreements, in which governments with a national bank issue new credit to the economy for investment in infrastructure, at interest rates of 1 or 2% and 25 year terms. Only in this way could the world emerge from the crisis in which it now finds itself.

"The world is not on the edge of an economic depression, because it is already in one. It is not a cyclical crisis; it is now a systemic crisis, he said.

"In the case of Mexico, he warned, that above all for the United States, it should be essential for its security to promote development.

"In the event organized by the National Institute of Public Accountants at the Service of the State (INCOPSE), he emphasized that Mexico's backwardness is so grave, that it has not been able to implement a water project which the country has had since the time of its independence, to bring water from the south to the north.

"LaRouche emphasized that it is necessary that the President of the United States, George Bush, change his position and political profile. 'Bush is a President who doesn't function. The United States has been in a permanent political crisis and this is what must be understood.'

"He stated that new proposals are already being evaluated in the world. He highlighted the case of the agreement which Russia and such countries of Asia as China and Japan are trying to reach, to build a new international financial body for that region, with different policies than those implemented by bodies such as the International Monetary Fund, [and] in which it is necessary, in addition, to expand commercial networks inside all of this region.

"However, the expert, who travels seeking the agreements to actuate his proposal, underlined that it would be difficult to achieve the restructuring of the system if 'the United States doesn't wake up.'

"He recognized that his proposal must ripen, but in the interim, the agreement should be begun, and the debts of the developing countries considered unpayable. It is a beginning that could provide a period of up to two years in which to advance towards the new state.

"LaRouche emphasized that in the case of Latin America, the only way out for Argentina is a moratorium. The view of great capital that this cannot be, and one has to pay, is no longer viable."