Time For The Big Change; Time For A New Bretton Woods Monetary System

July 11, 2018
Franklin and Eleanor Roosevelt seated on the south lawn at Hyde Park. Photograph by Oscar Jordan. August 1932. (FDR Presidential Library)
Franklin and Eleanor Roosevelt seated on the south lawn at Hyde Park. Photograph by Oscar Jordan. August 1932. (FDR Presidential Library)

In Beijing, July 10, the China-Arab Belt and Road Cooperation Forum resulted in a $20 billion fund for rejuvenation and industrialization in the region, focused on Syria, Yemen, Lebanon, and Jordan. Similar infrastructure development projects, creating the basis of national, self-sufficient economies are underway in Africa, creating a new spirit of creativity and hope for the future. Helga Zepp-LaRouche just returned from a conference in Paris where she spoke to the Mandela Institute about the optimism now shaping that once devastated continent as a result of the new development perspective embodied in the Belt and Road Initiative. For years, Africa has been a looting ground for the City of London banking empire as outright colonialism was replaced by IMF conditionalities, similar physical looting regimes, and proxy wars to cull and police whole populations. It is these policies which have resulted in waves of desperate human migration similar to those which occurred during humanity's dark ages. In the Americas, NAFTA and the Wall Street/City of London dependence on the drug trade's finances, have provoked similar flights and havoc. Cheap labor policies in the United States ensure that such migration results in maximum friction between immigrants and the unemployed.

Within the City of London/Wall Street imperial regime, there appears to be chaos. Whether that appearance is reality depends of what we choose to do at this crossroad. Both the United States and the British populations revolted from the globalist regimes of free trade, post-industrial devastation of their countries in the 2016 elections, the United States by electing Donald Trump; the British through the Brexit determination to leave the bankrupt European Union. Both countries are now in the midst of transformational changes. President Trump has clearly set off to disrupt the entire post-war order, particularly the economic and cultural policies established in the wake of August 1971, when Franklin Delano Roosevelt's Bretton Woods monetary system was finally destroyed. As Lyndon LaRouche fully elaborated in his 2004 paper, "On the Subject of Tariffs and Trade," the destruction of the Bretton Woods system destroyed the ability for nation states to fully collaborate on full-scale physical development of the earth by destroying access to the low interest long term capital necessary for such development while simultaneously preventing an agreed perspective on terms of trade favoring the high technology and physical economic development of all nations. It rebirthed British speculative free trade as the economic regime of the world: buy cheap, sell dear, and drive the productive potential of whole nations and peoples below the level necessary for even rudimentary survival. British Prime Minister Teresa May's effort to hold on to the old system, and effectively overturn the will of British voters, has resulted in her government hanging by a thread. In the United States, a revolt of the elites, using uneducated and labile youth as cannon fodder, has manifested itself in a war war to destroy Donald Trump at whatever cost to the U.S. Constitution or the fabric of the republic. Both nations sit on a powerkeg of unpayable debt in the form of financial derivatives and corporate debt which could implode at any moment.

In the same paper by LaRouche, he posed the question, "How Do We Change It?" "Now," LaRouche said, "the world's present, floating exchange financial system is hopelessly bankrupt. Virtually none of the leading banking institutions of western Europe and the Americas (among other a cases) are not implicitly bankrupt presently. Therefore, the first, most immediate objective of intervention by sovereign governments must be stability of the normal functions of society; the second, short to medium term objective, must be an increase in productive employment to levels sufficient to bring current accounts into balance; the third objective must be the negotiation of a nested array of long term sets of protectionist treaty-agreements on credit, tariffs, and trade among a set of leading nations." The latter agreements should range from one to two generations: corresponding to capital cycles of from twenty-five to fifty years." The first two requirements, LaRouche specifies here, are encompassed in his Four Laws for Economic Recovery of the United States, the central platform of LaRouche PAC's 2018 Campaign to Secure the Future. The last requirement is encompassed in a New Bretton Woods agreement, creating the basis for world-wide economic development to a physical condition matching the divine potential of human beings. It is now time that leading forces in all four nations implicated in LaRouche's Four Powers agreement, set about, urgently, negotiating a New Bretton Woods agreement based upon increasing the potential relative population density of all nations. Their path has already been clearly elaborated by LaRouche's science of political economy. That is how you change it.