LaRouche Addresses Video Conference in Mexico
Thank you, very much. As was just said, I have just recently returned from Europe, from what turned out to be an important discussion in Moscow, on the occasion of the birthday of a leading economist--his 80th birthday--and this involved also my presentation of interviews on television and elsewhere in other locations there in Moscow, which were of some significance. That was followed by my actually three-day visit in Italy, where I addressed a special Defense Committee of the Senate on some of these issues, and also had a number of discussions of similar relevance.
- 'The Only Real Chance We Have' -
The significance is this: We are in one of the most exciting and dangerous periods of modern history. The present world monetary-financial system will inevitably disappear, soon. The question is, what will replace it? That's the issue. The international monetary system in its present form is hopelessly bankrupt. There's no way it could be simply reformed: It must be, in a sense, replaced. So, what has to be done, essentially, is we have to create a new monetary system, and what I've proposed is this: that if the United States--and this is not impossible--if the United States should extend a proposal to Russia, to China, and to India, to co-sponsor the formation of a new international monetary-financial order, that could be done.
The problem is that most nations, such as those of Western and Central Europe, and other parts of the world, are not able to independently act in this way, to initiate. However, if you get the United States and Russia, which are two of the largest nations of the developed world, formerly developed world, and you combine that with China and India, which are the two Asian nations which represent the largest ration of the world's population, then you have a combination which can provide a protective cover for joint action, together with the nations of South America, for example, and Europe and elsewhere. That's the only real chance we have.
Now, it's not impossible, that the United States could be induced to do that, even under present conditions. At present, we have, of course, Dick Cheney, who is highly vulnerable. And you had a recent development, since my return from Europe, which is the so-called BAE scandal, which involves someone known to some of you, Pinochet, who's now gone, but his relics are there. Pinochet was a part of this scandal, and he, of course, was a fascist. He was sponsored by certain people in the United States, as well as from London, and he became in his last years of life, virtually a British agent, openly. But also, George Shultz in California, who was one of the sponsors in putting the Pinochet dictatorship into power, together with Felix Rohatyn, a banker of fascist proclivities, who was the key banker in this operation. And then, of course, Henry Kissinger functioned in support of that, in terms of his role as Secretary of State.
So, this is the character.
Now, what's happening is this: BAE represents essentially a British imperial institution, which has grabbed more and more power, in various parts of the world, and has attempted to gain more and more control over the United States. What has happened now, is that Prince Bandar of Saudi Arabia, who has been a longstanding asset of these circles, has been exposed as part of this operation. We have now, an incalculable crisis worldwide, in progress. This is not a financial crisis, this is not a financial scandal as such. This is not a scandal in any ordinary sense: This is a crisis to see who is going to run the world. Is it going to be a group of nations? Or is it going to be the emerging new British Empire, or the reemergent British Empire, which really never went away? Which takes over from the United States, and establishes its world rule through globalization. And, for example, with BAE which is an instrument for taking control of the military capabilities of the world, under a British imperial organization, a quasi-private organization, but an imperial organization.
Now, we've had recently in South America, some very interesting and positive developments. We've had, partly on the initiative of what has happened from Argentina, which was crucial in this, we've had a bringing together of the nations of South America, in what is not a consolidated but a very promising option. And it is part of the solution.
Therefore, what we have to do is this: The present world international monetary-financial system is bankrupt. There is no way it could be reformed on its own terms and survive. Any attempt to maintain this system, would mean a complete disintegration into a new dark age, comparable to what Europe experienced during the 14th Century, with the collapse of some of the Lombard banks in Italy at that time. That's what happened.
Therefore, the solution is to establish a new international monetary-financial system. That can be done on the basis of the U.S. Constitution's special provisions. Remember, the U.S. system is not a monetarist system. The U.S. system, constitutionally, is based on a credit system, based on the constitutional authority of the United States government over the utterance and control of its own money. In other parts of the world, countries' financial systems have been controlled largely under the Anglo-Dutch Liberal system, in which this system, through its network of private banks, so-called central banks, actually dictates and controls governments.
So, you had an imperial world monetary-financial system, which has been traditionally centered on the British Empire essentially, ever since February 1763. Against that, the only system which is surviving of any great significance today, as the alternative, is the provisions of the U.S. Constitution, which establishes the U.S. dollar as a credit mechanism of the U.S. government. That is, under our system, when it's operating--and it has not always operated that way, obviously--under our system, we generate credit through a vote in the Congress, especially the House of Representatives. The President of the United States then acts upon that authority of this Federal law, to utter currency as credit against the United States itself.
Now, the chief function of this credit, is not just to print money. The function of this credit, is to supply capital funds for long-term capital investments, especially in the public sector, but spilling over into the private sector; in the public sector, largely large-scale infrastructure projects, for the states as well as the Federal government. This credit generally extends for a life period of 25 to 50 years, in terms of modern economy.
Therefore, we have a present world monetary-financial system which does not function. However: If the United States affirms its Constitution, and enters into agreement with three other sponsoring major countries, and other countries, then, we can create a new international monetary-financial system immediately, putting the entire existing system into bankruptcy reorganization, to maintain the continuity of essential functions, and to start a program of actual net economic growth, and development. The hard core of this over the long term would be long-term investment in basic economic infrastructure and development of the economies of various parts of the world. A cooperative set of treaty agreements, of 25 to 50 years' duration, to create capital formation, to bring the world up in the way that Roosevelt had intended had he lived at the end of the last war.
- A Contest Between Two Systems -
So that's what our option is. If we do that, we can get out of the present mess. If we do not make such a reform, there is no hope for civilization: Chaos would be inevitable. There's no part of the world that could withstand the chain-reaction effects of a collapse of the U.S. economy, now. The collapse of the U.S. dollar would mean a collapse of all dollars, and claims against the dollar, in every part of the world. It would bankrupt China, it would bankrupt India, it would bankrupt Europe. So even at the present time, there's no way that the United States could collapse, and the rest of the world escape. Not possible. Therefore, the United States must be reformed, in the way consistent with its own Constitution, by offer cooperation with other countries, especially leading countries, to establish a new world system, a new version of the old Bretton Woods system, which would provide for recovery programs of 25- to 50-years of long-term investment throughout the world as a whole.
For example, you have the case in South America, where we have this Bank of the South, which has now emerged: a very positive development. Such a bank, if it were operating under the protection and assistance of such an international reform, would be capable of generating its own version of long-term credit internally, within South America, for obviously necessary projects. We have a fragile situation in South America, some very good agreements, but a lot of problems. And therefore we must resolve those problems by finding a common positive solution which brings people together about the options for good, that is, for benefits, as opposed to simply fighting each other, quarreling over differences. And this is possible. This is the situation we face now.
On the U.S. situation, the BAE crisis, the scandal involving the British arms industry, or the arms monopoly, this is not--as I said before--this is not simply a monetary crisis or a scandal. This is a contest between two systems: the human race, and the British Empire. What is involved here is an institution of the British monarchy, BAE, which is being used to take over the military affairs of the world, as a monopoly of military power. This is accompanied at the time, that we have coming out of the United States and Britain, a policy which is associated with the name of Dick Cheney, from the time he was formerly the Secretary of Defense and now as Vice President--the virtually acting President of the United States, today--this policy, which is supported by the familiar George Shultz, who is remembered for his backing of Pinochet, is called a "Revolution in Military Affairs." The objective is to establish a world empire of military power. The empire would be based on eliminating the regular ground military forces, that is, national military forces, and replacing these with private armies, which would replace these forces. But at the same time, to control the planet through putting weapons in space which can drop missiles, from space, on any part of the world that the ruling authorities do not approve of. And using naval power in diminishing role for the same effect.
We're looking at the threat of a world empire, a new British Empire, in fact, and what has happened with this crisis about BAE, is certain forces in Europe, including inside the United Kingdom and in the United States, are now in a state of revolt against this threat of world empire. It is expressed partly by the resistance from leading military figures in the United States, and elsewhere, against what is going on in Southwest Asia today. It is expressed in other ways, and it is expressed in the BAE scandal.
The blowing of the scandal, the identification of Prince Bandar of Saudi Arabia as a key figure in this international swindle, has blown open the whole issue. If Bandar goes down, then the whole system would tend to go down. And there are many people in the United States, and also some in the United Kingdom, as well as in Europe, who would welcome this immediately.
So, we're now at a point, where the old system has collapsed, a rotten system which has been in existence in this form since 1971, since the Summer of 1971. This system has now collapsed: There's no possibility that the present world monetary-financial system can continue to exist in its present form. The date on which it would die is uncertain, but the inevitability of its early death is absolutely certain. Therefore, we have to choose a new system. This is the case for the people in London and elsewhere, who are behind what the BAE scandal represents: Those who are looking for a one-world empire, for globalization. That's a new form of world empire.
We, on the other hand, have an option: If the United States plays the role for which it was intended, at the time it was created as a Federal republic, and allies with nations around the world, to bring together a coalition of nations whose tradition is European, whose tradition in other cases is Eurasian, that is, like Russia--Russia is a Eurasian nation, not a European nation; it has European roots, but it also has Asian roots in its culture. Then you have the great Asian cultures, represented by China, India, and so forth, and other large countries of Asia. The objective on this planet should have been, for a long time, to find a way of bringing these three sectors of the world together in some form of cooperation: the European culture as represented in its sense by what the United States has achieved by freeing itself of oligarchical traditions. Russia is typical of the Eurasian group of nations, that is, who represent both Asian cultures and European cultures; and those Asian cultures, such as China, India, and so forth.
- Challenges of the Future -
If we can bring these great cultures together, in a program of recovery of the planet as a whole, the following is the case: We now have a project online, which has recently been boosted in Russia, a project which I've been supporting a long time, which is to build a tunnel, a railway tunnel from Siberia to Alaska. Now, what this would do, would lead to a global change in the character of human relations on this planet. It would mean that we would have high-speed rail, or magnetic levitation transport systems, coming from Europe, into not just to Alaska, but down through the entire Americas. We have intended this for a long time: to have a complete rail system, connecting the north of North America, to the southern tip of South America. By going through a similar way, through Southwest Asia, and across from Europe into Africa, we now would have a way, in the immediate future--not necessarily in my lifetime, but beyond--in which we can unite the major parts of this planet, together in a new form of economic cooperation, as sovereign nation-states, linked by high-speed rail transport, or magnetic levitation transport. We would then have changed the world from one dominated by sea power, to one dominated by the development on landed areas, or populated landed areas.
This great change now stands before us. We have new technologies, new fundamental technologies, like nuclear fission power, which is needed to deal with the water problems of much of the world, the freshwater problems. I'm for power, in general. We have the new technologies of thermonuclear fusion technologies, which are significant, because they provide new kinds of isotopes which we can manufacture in large degree, for various kinds of needs, as well as a source of power. We have the great projects of transportation and other kinds of great projects, to rebuild the planet as a whole, through a system of cooperation among sovereign nation-states, which are largely linked together by international high-speed rail or magnetic levitation routes, to take every part of the world--including the most remote parts of Africa, and desperate parts of Africa--to bring them together in a common world system, a system of sovereign nation-states.
And that's where we are today. And therefore, on the one hand, I'm optimistic as to what can be done, what must be done. I'm fearful of what will happen to humanity, if we don't do it. What we have in South America in particular, in the attempt to bring some cooperation among the states of the continent of South America, is extremely important, because it sets a model for nations which have completely different kinds of special problems: like the problems of Bolivia, are not the same as those of Brazil, but they're related. The problems of Colombia, the problems of Argentina, these are all different kinds of economies, with apparently conflicting interests. But they have an overriding common interest! And therefore, we have to take nations which have conflicting requirements, and bring them together around the idea of a common purpose, a common goal for mankind. And this Bank of the South operation, which has emerged in South America, is key. The nations of South America do have the right, the implicit right, to set up their own credit system, their own international banking arrangements among sovereign nations, to create large-scale credit, and to regulate their relations with one another, with the idea based on the Westphalian principle: that is, that each nation shall consider the welfare of the other nation, as its paramount concern. And if all nations look at that in this way, we don't have a problem in cooperation, with the Westphalian principle.
So, the time has come where we have the worst crisis in modern history; we have a crisis which goes probably worse than some of the problems of the dark ages of Europe. We're coming to the limit: We have a financial system which can not be saved. There's no way of functioning under the existing monetary-financial system of the world--can't do it! We have a crisis, where the system is threatened with coming down in various ways, the BAE crisis is typical of this. And on the other hand, we have the possibility, on the basis of experience and desires of people of conscience in many nations, to bring nations together around a new monetary system, more or less consistent with the intention of Franklin Roosevelt at the close of World War II, to build a new world monetary system, based on a credit system, rather than a predatory monetary system, or monetarist system.
We have specific projects and technologies, which are either developed or could be developed, which can address most of the problems. We can bring together the entirety of the planet on the basis of the same principle, celebrated in the Treaty of Westphalia in 1648: It's time to go back to that.
So, that's my message for the moment.