This Week You Need To Know
LaRouche: Is Dollar Policy 'Stupidity,' or Trigger for 'Economic 9/11'?
In light of clear indications that the policies adopted by the Bush Administration to deal with the dollar collapse are only making things far worse, Lyndon H. LaRouche, Jr., candidate for the Democratic Party Presidential nomination, has raised the question: "Is this being done out of stupidity, or is it willful?"
Take, for example, the new Administration tax-cut plan, which was signed into law this past week, at the same time that the post-April 15 tax-revenue picture shows that U.S. government revenues from corporate and personal taxes are sharply down for the third year in a row (first seven months of FY2003). The U.S. Federal debt ceiling was lifted by nearly $1 trillion last week, to stand at $7.4 trillions. As for the falling dollar, Treasury Secretary John Snow said, "it's easier to export," when you have a weak dollar.
That this is worse than stupidity, is the judgment of some observers. For example, the May 23 London Financial Times headlined its editorial, "Tax LunacyThe U.S. Administration Throws Prudence Out the Window." They wrote, "On the management of fiscal policy, the lunatics are in charge of the asylum." Why do they act this way? The Financial Times concludes, that to those "more extreme Republicans," a "fiscal crisis offers the tantalizing prospect of forcing" cuts in social spending "through the back door."
The same view is expressed in the New York Times, May 27, by economist Paul Krugman, suggesting that the neo-cons are actually hoping for a financial "train wreck." They can then use it as an excuse "to destroy America's social safety net built up over the past 70 years." He charges, "The people now running America aren't conservatives: They're radicals who want to do away with the social and economic system we have, and the fiscal crisis they are concocting may give them the excuse they need."
Some Historical Background
LaRouche adds some essential history to these evaluations: The Bush family, acting with allied Wall Street and City of London interests, had been, in previous generations, responsible for putting Hitler into power as a crisis move. This historical fact, which was the subject of "trading with the enemy" investigations during World War II, is of added relevance, given the recent EIR-led exposés of the role of disciples of universal fascist "philosophers" Leo Strauss, Carl Schmitt, and Alexandre Kojève, in the present Bush Administration drive for a new Pax Americana. Deputy Defense Secretary Paul Wolfowitz is the leading figure, among a nest of "Straussians," in and around the Bush Administration, who have their ideological roots in the very "Synarchist" circles who promoted the "Hitler Project" during the early 1930s, in response to the same kind of global financial and economic breakdown that we face today.
LaRouche notes that it is far more likely that Administration actions are proceeding not from stupidity, but intended to willfully drive the world to a state of panica kind of "economic 9/11"in which the banks are shut, businesses are closed, there is no credit available, people have no money, and are dropping in the streets. Then finally, private powers step into the void with a new super-scheme à la the Bank for International Settlementsjust as Montagu Norman, Hjalmar Schacht, Averell Harriman, and the Morgan interests, et al. did in the early 1930s in Germany, and tried to do in the United States against President Franklin Delano Roosevelt.
Only under conditions of panic, LaRouche pointed out, would people willingly cave in to such a supranational scheme. That is the danger. The present post-Bretton Woods system is gone. It is past any "reform" or repair. A further 20%-50% fall of the dollar against the euro would mean the whole system is gone. This is what the lunatics want.
Why They Fear China
As a corollary to this evaluation, LaRouche observes that it is clear why the financial oligarchy crowd fears China, because China is the one country that has the capacity to resist such mad schemes. The Office of Vice President Dick Cheney is presently preparing a new assault on China, in line with Samuel P. Huntington's "Clash of Civilizations" scheme, targetting the Islamic world and China as the new "Straussian" enemy image.
LaRouche has called for an urgent assessment and public dialogue on this "financial 9/11" thesis. A campaign press release on this question appears on the website for LaRouche's 2004 campaign for the Democratic Party Presidential nomination (www.larouchein2004.com).
|