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An occasional LaRouche report:

TODAY'S WORLD FORECAST

by Lyndon H. LaRouche, Jr.

November 13, 2009

THE STANDING SITUATION:

The world as a whole, when seen from the standpoint of my "Triple Curve Function," is presently gripped by a world-wide breakdown-crisis of a form like that of Weimar Germany of March-November 1923. The essential difference is that 1923 Germany's crisis was bounded by the confining borders assigned by the Versailles conditionalities; a comparable pattern; the present world crisis is coming on fast, and has no present signs of exceptions except those implied by the recent Russia-China agreements.

In short, there will never be a recovery from the general breakdown-crisis which began in the U.S.A. at the close of July 2007, unless and until the measures of reform which I have proposed were introduced. All reports of an upturn, such as those from the U.S.A. and western European circles, are flatly incompetent. For the moment, the U.S. Federal Executive and Congress generally are pitiably incompetent, and headed toward early doom. There are alternatives, but all policies presented by the so-called "Trans-Atlantic Community" are an oncoming disaster.

THE REMEDY

As I outlined the case in my recent international webcast of November 11th, at present, the only possible remedy would feature a wiping out of much of the monetarist trash, such as that of the U.S. Federal Reserve "bail out" swindles, and requires the application of a Glass-Steagall-type reorganization of the U.S. banking system as a reorganization of the national commercial banking system, as an action enabling the uttering of U.S. Federal Credit for launching a half-century building of the basic economic infrastructure of the U.S.A. and associated nations around the theme of a nuclear-power-based orientation to a high-energy-flux-density quality of return to the orientation of the U.S. Government under President Franklin Roosevelt's leadership. This must be based on an international fixed-exchange-rate system organized among respectively sovereign national credit-systems, rather than a monetary system.

At the present time, such a reform, probably led by a four-party group of the U.S.A., Russia, China, and India, could succeed in halting the present collapse, stabilizing the world economic situation, and launching a decade of an upward-moving decade of physical economy and credit-system reforms.

EUROPE PRESENTLY

At the present moment, there is no current prospect of anything but a continued, accelerating general collapse of the economies of a Euro-dominated system in western and central continental Europe. However, were the "Great Four" group of the U.S.A., Russia, China, and India, to lead in the proposed reform, a recovery of western and central Europe, probably led by improved options for France and Germany, could bring Europe generally into the fold of a global trend toward recovery.

THE CRUCIAL POINT

The presently accelerating world economic breakdown-crisis can be considered "temporary" in the respect that the disease responsible for this crisis is the trend of changes set into motion by the combined initiatives of that Kennedy assassination which made possible the long 1964-75 Indo-China war, under the conditions triggered by the reforms which British Prime Minister Harold Wilson crafted to bring about the process of breakdown of the remains of the Bretton Woods System. No mere monetary reform could save the present world system from the presently accelerating descent into the pit; only a U.S. form of constitutional credit-system, according to President Franklin Roosevelt's defeat of John Maynard Keynes during the 1944 Bretton Woods debate, is a feasible reform under present conditions.

THE END OF "GLOBALIZATION"

The most deadly feature of the process which has led the world at large into the present, planetary breakdown-crisis of the present world monetary system, has been "globalization" — the modern attempted revival of a imperialist form of a "Tower of Babel." A revival must be based upon a science-driven, high-energy-flux-density driven, physical economic revival of sovereign nation states working as partners, with an end to all relics of the recent decades of "globalization." Otherwise, the doom of the present "Tower of Babel" is even more certain than that of the Biblical account.