Face the Economic Reality — LaRouche Was Right!
The United States and the trans-Atlantic financial system are right now plunging towards a financial blowout bigger than that of 2007-08. Today's corporate debt bubble, at $14 trillion, is bigger than the $11 trillion mortgage bubble of 2007-08, and the 20% level of defaults projected for these debts today, is far greater than that actually experienced in mortgages a decade ago. We are already into "The Big Short," where Wall Street is lending money to suckers to help them buy up its securitized worthless debts--and then betting against its own customers.
The hysteria exhibited in Wall Street's daily public freakouts against Glass-Steagall, reflects the banks' awareness of the coming blowout.
Nothing like the present situation has ever been experienced anywhere before. Put another way, nothing in the present world situation bears any comparison whatever even to that of 2007-08 financial crisis, for example.
Consider another unprecedented moment in human history.
NASA Mission Controller Gene Kranz, who went on to be the key Mission Controller for Apollo 13, described in his book, "Failure is Not an Option," published in 2009, how his boss, the legendary Mission Controller Chris Kraft, had walked up to his desk just two weeks after Kranz had first joined NASA at Langley in 1960. Kraft said, "Everyone else is tied up. You're all I've got. We're coming up on our first Redstone launch. I'd like you to go down to the Cape, get with the test conductors and write a countdown. Then write some mission rules. When you finish give me a call and we'll come down and start training."
"The shock on my face must have registered," Kranz wrote, "as Kraft continued, `I'll tell Paul Johnson to meet you at Mercury Control and give you a hand.' When Kraft talked, his eyes never left mine."
"My days as an observer were over, my chance to get up to speed ended.... From my work, most recently at Holloman Air Force Base in New Mexico, I knew about flying, systems, procedures and checklists. I could figure out what a countdown should contain. Mission rules were different. There had never before been such a mission in U.S. history—I would just have to give it a shot. Since there were no books written on the actual methodology of space flight, we had to write them as we went along."
And it is just so for us at this moment.
There is no book which tells us what we must do now.
We do know that the crash must be pre-empted by an in-depth mobilization of the population—just like a mobilization for war, but in this case, a mobilization for the economy in depth. The only approximating comparison is Franklin Roosevelt's "100 Days" program, and this time we will require the scientific precision expressed in the most successful of FDR’s economic mobilization, perhaps best exemplified in the Tennessee Valley Authority, which is still considered a miracle for its time.
Lyndon LaRouche spelled out what this means in his "Four New Laws" of June 2014. That statement opens with the following:
“The economy of the United States of America, and also that of the trans-Atlantic political-economic regions of the planet, are now under the immediate, mortal danger of a general, physical-economic, chain-reaction breakdown-crisis of that region of this planet as a whole. The name for that direct breakdown-crisis throughout those indicated regions of the planet, is the presently ongoing introduction of a general “Bail-in” action under the several, or more governments of that region: the effect on those regions, will be comparable to the physical-economic collapse of the post-“World War I” general collapse of the economy of the German Weimar Republic: but, this time, hitting, first, the entirety of the nation-state economies of the trans-Atlantic region, rather than some defeated economies within Europe.
“A chain-reaction collapse, to this effect, is already accelerating with an effect on the money-systems of the nations of that region. The present acceleration of a “Bail-in” policy throughout the trans-Atlantic region, as underway now, means mass-death suddenly hitting the populations of all nations within that trans-Atlantic region: whether directly, or by “overflow.”
“The effects of this already prepared action by the monetarist interests of that so-designated region, unless stopped virtually now, will produce, in effect, an accelerating rate of genocide throughout that indicated portion of the planet immediately, but, also, with catastrophic “side effects” of comparable significance in the Eurasian regions.”
Mr. LaRouche continued the development of this thought in dialogue with colleagues recently.
“The United States and other nations have an intrinsic power of economy, as has been shown in super-high growth-rate impulses in certain periods, as with FDR, JFK, and in the industrial revolution based on Lincoln’s policies.
“But then the thieves came and shut it down, and each time spread the myth that this, their speculative practices, is the way the system really works. That's a myth! It doesn't work that way. What we have to do is what the LaRouchePAC and the broader LaRouche movement is doing in the Manhattan region, i.e. awakening the souls of fellow American’s, among others, through the beauty of the American System.
“We are actually creating a force of economic creativity. What we have done with the music, with the concerts, the choruses throughout the city, is an example of real economic creativity. What is required is the generation of a process of development. Then we do not have a real crisis, since the population is then the solution not the problem. We may have an embarrassment. You may have lost money! You may have lost your job on Wall St., but the system itself, if treated properly, will work.
“It is time to support reality, and economic reality has to be installed. If in the face of this crisis, we install the proper reality, if we place value on that which has real value, the population, the future populations, then we don't have a problem. Then the gates of prosperity will open sooner or later. The problem in economies is when economies are being destroyed, as with our nation today, by the hand of the British and their Wall St. types.
“If you look at it the way I look at it, we have the gates of prosperity looking at us. But we've got to maintain them—that's the difference.”