| http://larouchein2004.net/pages/speeches/2002/020501webcast.htm Promotion of the General Welfare So, the question was, to form a society, which developed the qualities of the individual, in the image of the Creator, which freed mankind from the destiny of being captive or wild human cattle, which treated mankind as mankind. And thus, in order to promote that, it is necessary to develop among the people, their own taking of responsibility for maintaining this kind of order. You can not have this kind of order, unless the people themselves will work to maintain it. And therefore, the people themselves must participate in the promotion of the general welfare; the promotion of education; the promotion of scientific discovery; the promotion of longevity, and so forth and so on. The people themselves must resolve to do that. And the function of government is to be responsible to the people, as an executive function, as a governing function, to ensure that that practice is continued and promoted. That's the American Intellectual Tradition, in essence. You see it reflected in the discussions leading into the Declaration of Independence in 1776; you see it in the discussions around the Constitution. You see it expressed most nobly by Abraham Lincoln, who understood this. And there's not a critic of Abraham Lincoln I've ever heard of, from any side, who is not wrong. He was right on everything, on every count, on every decision he made. He was not always right in terms of knowing what to do, or knowing the correct decision, but he was always right in principle. Now, as long as Eisenhower was President, the military faction, the utopian faction, which had intended to create this new Roman Empire/Waffen-SS-like system which we have today, were not able to function. And the Suez Crisis, under Eisenhower, was an example: Eisenhower responded to his understanding of the fundamental interests of the United States, and said: “We crush them. This is a crime against humanity; it will be stopped now.” And he stopped it. He was a real President. He may be have been on the golf course too much, he may have played too much golf with George Bush's grandfather--the President's grandfather, Prescott--they were on the golf course a lot together. (It was a kind of a racist golf course, too. Noted for that around Washington.) But, when it came to the question of U.S. policy, and U.S. interests, internationally, Eisenhower knew what it was to be, to be a soldier, and a President. And he acted accordingly. You had tendencies in that direction by President Kennedy, but he was killed. The last time we saw that, as I referred to before, by a President, consistently, was by President Johnson in 1964, where Johnson had the courage, to know that the fundamental interests of the United States, demanded that the Civil Rights Act, the two Civil Rights acts, be pushed through. And he pushed them through. Not because he liked this or liked that, or had this influence or that influence. He did it because he knew what it was to be President. When you're President, you embody the executive capacity of the self-interest of the people and the nation, and the intention of its existence. You are responsible to its past, and you are responsible to its future. And you, if you stand absolutely alone, if you're an elected President of the United States, you must act as a President against all comers, including your own citizens. You must stand alone as the conscience of the nation, as the defender of its fundamental interests. If they kill you, you still do it, because that's your responsibility. And no one should run for President, unless they're willing to take that responsibility. Unfortunately, many do. Once Eisenhower was out of the way, the utopians went wild. We had, throughout the world, waves of assassination: the attempted assassination of Charles de Gaulle in 1962--done by whom? It was done by the fascists, including Jacques Soustelle, known to me from his career in Mexico and elsewhere. Evil man. With the backing of Franco, a fascist, an evil man. The backing of the Spanish Carlists, who are evil, and their sympathizers of the old Pétain regime in France, who are evil. They were determined to kill him. These were the same crowd that targetted--we don't know who shot Kennedy. It certainly was not Oswald, but we don't know who the three riflemen were. But we do know who targetted him. It was the same crowd that went after de Gaulle. We do know who killed Mattei--the same crowd that went after de Gaulle. We do know why Macmillan was ousted with the Profumo scandal in London--the same crowd. So, this crowd, which we call the special-warfare interests--the Allen Dulles crowd, people like that--moved to set into place, a new kind of warfare, which they affirmed by launching the war in Indochina, in the middle of the 1960s. This crowd was constrained by the fact that, though it had a deal with the Soviet government, a so-called détente deal, which went in various degrees: first with the British and Khrushchev, who made negotiations with London through Bertrand Russell, in the middle of the 1950s; later, with Khrushchev again, on the basis of the [Cuban] Missile Crisis, and so forth and so on. Despite these agreements, the Soviet power was real, and other nations of the world who resented U.S. arrogance, would sometimes align with, or play with the reality of Soviet power, as a way of playing against the threat of a utopian dictatorship from London and from Washington. With the collapse of the Soviet system, over the period 1989-1991, they thought they were free. When the paperwork was signed on the agreements among Thatcher, Mitterrand, the former President George Bush, and Gorbachov, these fellows were convinced that the Anglo-American Empire would now be able to rule the world, or proceed to establish the changes which would eliminate the institution of the sovereign nation-state; which would institute global population control; which would eliminate all forms of competent education; turn the people, mentally, into human cattle, which we're seeing today; and thus, set up a military system, modelled most immediately upon the Nazi Waffen-SS, which would rule the world. And that is the essential background of the Middle East war. Using Israel as a Tool You have, for example, in Israel, you have a group which is not--people will sometimes say, the Israelis run the United States, through the Zionist Lobby. That's not true. The utopians run Israel through their asset, which is the followers, chiefly, the followers of Vladimir Jabotinsky, who is not only an avowed fascist, whose movement the Betar, was a fascist movement in the Mussolini sense, but a Jabotinsky who publicly offered to support Adolf Hitler's government, if Adolf Hitler would come to the term of dropping anti-Semitism. So you had in Israel, coming more and more into power, especially in the late 1970s, you had the emergence of a fascist power, centered around the party called the Likud, in Israel--who are fascists, and actually, there's no difference between fascist in the generic sense and Nazi. It's just a matter of colors and details. So we created this thing in the Middle East. We had created--the British and we had created in the Middle East--a situation of perpetual warfare, as a way of managing the Middle East. This thing started in two ways: It started with the British during the period of the Napoleonic Wars, when the British were determined to intervene in the destruction of the Ottoman Empire, by finding some inside influences inside the Ottoman Empire to control the destruction. And they took the area of Palestine as one of the areas, key areas, for this intervention. Then, toward the closing decades of the 19th Century, the time of the British Admiral, Admiral Fisher, the British had decided that they were going to have a war, a jolly war, a jolly world war, in which the British Navy would reign supreme. And to this end, they decided that what they would do, is build the so-called Dreadnought Navy of Fisher. And with this Dreadnought Navy they would power it, not with coal, but with petroleum, with oil. And that's when they stole the oil at the head of the Gulf. And it became the personal property of the King of England, later the Queen of England, and was then called British Petroleum, at a later point. One of the biggest assets of the British monarchy. They decided then that the entire oil-bearing region of the Middle East would now become a basis for their control of world petroleum and world energy supplies, for strategic purposes. And therefore, the object was to take and chop the people into little pieces, to play one against the other, to create parties and factions against each other, and thus control this area of the world, which is of strategic significance. It is the junction point of Eurasia and Africa. It is the junction point from the Mediterranean into the Indian Ocean. It is implicitly, and has been historically, the strategic pivot of the world. So to control politics in this region of the world, was the strategic objective of the British Empire, and became, under Wilson, and under Coolidge, became the strategic objective of what became the Anglo-American Empire, in fact. And that's the genesis. For this purpose, they needed to create a destabilization factor in the Middle East. Now initially, as you recall, the Israeli, the Jewish settlement in the Middle East was limited, and it generally involved a certain degree of cohabitation among Jews and their neighboring Palestinians, among whom they settled. But somebody said, that's no good, so they organized a movement to create some atrocities against the Jewish settlers in Palestine, and the Jewish settlers, through some Russians who were sent to them by the head of the Secret Police of Russia, Colonal Zubatov, created what became later Haganah, the defense organization, which was sent in there by the Russian Secret Police from Odessa, in response to the provocations which were orchestrated through British circles of anti-Jewish provocations, so the Jewish defense effort against the provocations which the British organized, became the basis for creating the seed of a permanent Arab-Jewish conflict in this part of the world. And thus, by playing this and similar kinds of things to play parts of the Middle East against each other in order, so that the outside force, the imperial force, the Anglo-American force, would control the region. And thus control, not only, then, the petroleum interests, which were crucial, but to use the petroleum interests as a key part in controlling the world, not only the navies but the world in general--and also to prevent other things from happening. To create a factor of permanent destabilization in the strategic pivot, the Middle East, which connects Africa, and Eurasia, which connects the Mediterranean and the Indian Ocean. That's where the problem lies. So what we face is not a--this is not an Israeli question, it is not a Palestinian question. It is not an Arab question. It's a strategic question: Are we going to be able to live on this planet? Because if what is proposed now, the “Clash of Civilizations,” of Samuel Huntington, of Bernard Lewis, of Zbigniew Brzezinski, of Henry Kissinger, and other swine--if these things are allowed to continue, this kind of war, which they've got young Bush tied into right now, then I assure you, given the realities of the economic situation, given the military realities, given the political realities, you will not have civilized life on this planet for generations yet to come: a dark age for all humanity. Are we willing, are we morally capable; do we have a President of the United States who's morally fit to be President; who's capable of making the decision tougher than Eisenhower made on the Suez crisis? The principle remains the same. The same principled decision we had to make against Hitler, to fight Hitler. Are we sufficiently aware of our responsibility as a nation-state, as a nation as such, are we aware of our responsibility to protect the people of this planet and ourselves, our own people, from this kind of horror, or are we not? If we are, we will stop this thing right now. Now let's get onto it. The World Crisis and the Triple Curve Now, let's look at what the world crisis is. In 1995, as an outgrowth of my participation in the Vatican conference on health care, some discussion came of what the problems of health care were, and I, my attention turned to the issue of the economic-financial aspect of the collapse of health care worldwide, the danger to human life as a result. So to try to make clear--because you know, you had a great assortment of religious bodies, you had priests and others, nuns and others, who were in that conference, and they don't know much about economics. So how do I make clear to them, what the danger is, with which we have to deal, if we're going to have the resources needed to meet the health-care standards of humanity in this coming period? So what I did is, I drew this Triple Curve (Figure 1), which was a representation, for pedagogical purposes, of what my studies showed the problems have been of the United States and the world, since about 1966. Because in 1966, the world economy changes character on the initiative of the British and the Americans, from what had been a producer society, a society based on production of wealth, based on educating populations and investing in order to increase the productive powers of labor, to a society which, like Ancient Rome, following the second Punic War, had become a parasite society. That is, Rome stopped producing for its own needs--Italy. Rome instead reached out and looted neighboring countries, to supply the food and other things it required for its wealth, resorted to unproductive slavery inside Italy itself, and created a class of citizens who were nothing but parasites, much like our citizens today are becoming. Which is why they vote the way they do. Bread and circuses. You don't think we're corrupt? You don't think that we, like the Romans, who were corrupt, go into large stadiums to watch bodily contact sports? We haven't got officially gladiators yet, except on the screen. What do you see on the screen, the television screen? You see mayhem. And you see that the kind of thing coming out of Hollywood, not only Nintendo games, which I'll get to, the kind of things which Joe Lieberman doesn't oppose, Sen. Joe Lieberman. Now what happened with this change to a so-called consumer society, which is really an imitation of degeneracy of Ancient Rome--change from a producer society to a consumer society? Well, what happened was, is we began to reduce, from about 1966 on, we began to reduce the per-capita physical output of our economy. We kept the economy going, how? By pouring money into the system, from the Federal Reserve and other sources, and from foreign sources, to pump up financial assets, and to give us the buying power to buy what we didn't produce from abroad. We send our industries overseas to cheap-labor markets overseas. How do we buy our food, if we send the industry over there? How do we buy our goods from cheap labor markets abroad? We printed the money. How do we get the buying power to print the money to buy? Well, we use the money to build up the financial--like stock values and things like that, real estate values. The biggest bubble that's ready to pop in the United States is the real-estate bubble, mortgage bubble. A big giant bubble that's about ready to pop. And when that goes, the U.S. system goes, financially. So these were the three tendencies. You would have--the physical economy was being stripped down, from about 1966 on, with the 1966-67 budget. From the same period, about '66, you had a rapid increase in monetary aggregates, which were initially explained as the need to finance the Vietnam War. You had, as a part of that, a shift of stock-market values into an appreciation of stock values. Then you had, in 1971, it became worse when Nixon shut down the economy. He shut down the monetary system which had worked very well for us in the immediate 20 years following World War II, and we went to a floating-exchange-rate system which wrecked everything, and this process accelerated. Then we went, recently, in the year 2000, to a second step (Figure 2). Weimar Germany Now what happened there, what happened to the United States, in particular, in the year 2000 was the same thing that happened in principle, in Weimar Germany in June-July of 1923. Now, Weimar Germany, postwar Germany, was being looted under the Versailles agreements. Assets were being stripped out of Germany to feed the French and the British. And the British and French owed us a great deal of money, to the United States, were paying the United States. So the system was the United States was the creditor of the world; the British and the French were living by looting the Germans. So the German economy was being stripped, asset-stripped. So. what the German government did, was to print money. Reichsmarks, to generate a flow of cash, which was then used to pay off the British and the French, from 1921 on. There was no significant inflation, no exciting inflation, in Germany until late Spring and Summer of 1923. At that point, what happened was, is that the amount of money that had to be printed to roll over existing financial assets, was greater than the amount of financial assets rolled over. The result of that was, under conditions in Germany at that time, a hyperinflation which wiped out the existence of the Reichsmark in that form by October-November of that year. What happened to us in the Summer of 2000, was essentially something similar. The amount of monetary aggregate which Alan Greenspan--and what he's able to extract from abroad--is able to generate, to keep the stock market and other markets from collapsing, is greater than the amount of financial assets they're supporting. That's why you see the kind of stock-market behavior you're seeing in the U.S. stock markets. The stock market collapsed; they had to accept maintaining the financial values of the stock market at a lower level, so the value of market indices dropped, as a reflection of the inability of the U.S. system to continue to pump money into the system at that rate--but they're still doing it. Where they pumped the money, was into something which many of you know about. The phenomenon of cashing out. The way the economy is being sustained, apparently, today, is that mortgages are being artificially pumped up, through the mortgage--Fannie Mae and Freddie Mac and so forth--with the Federal Reserve System. The bankers who take mortgages are able to bundle these mortgages and dump them on Fannie Mae and Freddie Mac, for example. The bankers thus have the cash turned loose, they turn around and with the payments they receive, on their deposit of these bundled mortgages with banks, the banks now issue more credit. Then the real-estate operators in that area--as in the Northern Virginia area, around Washington Beltway, for example--the real-estate dealers will get together with the bankers, and they'll pull an operation. They will then front an operation which boosts the indicated sale price of real estate. Now the people who have, are already mortgaged, as the mortgagees, they now go to the bank and they cash out. They write the mortgage up, to reflect the new value which the realtors establish for these properties. They then take the case, and they spend that for food, clothing, and whatnot--and for their credit card debt. And that is what this economy is based on. If you look outside Washington, D.C., the Beltway in particular, what you will see is exactly this phenomenon. You see shacks, which are Hollywood set-style tarpaper shacks, built with a few sticks, some shrink-wrap, some plastic exterior, and some gold fixtures inside the place; these things are going for up to $500,000 to $1 million, apiece. They're nothing but shacks, sitting on top of a hillside, or on a plot. They're disgusting, their rear ends are sticking out on the highway, they're mooning you--they're junk, and people are living in them, and they are not, the person who's now, who's mortgaged, the person is now an instrument for creating the illusion of a flow of payments into the banks for the mortgages, and this illusion is now the basic value of the understructure of financial values in the United States. And it's about to pop. So, that's what happened then. All right, now, the third one (Figure 3): These figures are '96 to 2001 figures, and these are figures that correspond essentially to what I'm talking about. The manufacturing employment collapse, which is a reflection of this; you have corporate profits fluctuating, you have the debt growth--look at the rate of growth of debt, and look at the rate of increase here of money supply, relative to growth of debt. So what you have, is an economy which is not producing wealth, is producing debt. Debt is being used as wealth, and the way it's being done is by pumping money, including money from Japan, from the Japanese yen and so forth. And that's how the economy is functioning. |
