| -Caveat Lector-
http://www.larouchepub.com/eiw/public/2002-28a/this_wk.html >From the Vol.1,No.20 issue of Electronic Intelligence Weekly THIS WEEK YOU NEED TO KNOW Thirty Years of Illusions Are Crumbling Over the past two weeks, the last delusions that may have lingered, that somehow the economy was on the verge of a recovery, have disappeared as quickly as you can say "401(k)." Since the beginning of the year alone, the major U.S. market indices have lost more than 20% of their value. This fall has accelerated in the past two weeks. The news media are full of talk of panic in financial markets, and "capitulation" is the new buzzword in the financial press. What is happening in the stock markets, and to the U.S. dollar, is but a shadow of what is has been occurring in the real economy for years, indeed for decades. As Lyndon LaRouche's famous Triple Curve so aptly shows, as production in manufacturing, agriculture, and infrastructure have been collapsed, monetary and financial aggregates have skyrocketed. And as EIR recently showed, total U.S. debt has now reached over $31 trillion as of the end of last year, with the associated debt service of $7.36 trillion equalling 72% of Gross Domestic Product. We told you that it couldn't go on; and now, that is evident to just about everyone who thinks about the future. It is no big accomplishment, under these conditions, that people agree with Lyndon LaRouche. Indeed, one has to be truly deranged, not to agree with LaRouche's assessment of the current monetary-financial collapse. The important question is: Why did it take you so long? LaRouche isn't just right today; he has been right for over 30 years. If you want a date, from which point it should have been obvious to every thinking person that the current system was doomed, take Aug. 15, 1971: when the old Bretton Woods system reached its breaking point, and President Nixon took the dollar off the gold standard and launched the era of floating exchange rates. As LaRouche had earlier forecast that it would, the postwar Bretton Woods system entered its breakdown phase, with the outbreak of a series of international monetary crises starting in November 1967 with the devaluation of the British pound, followed by crises hitting other currencies and finally the U.S. dollar. The U.S. and global economies have been on a disaster course ever since. Oh, you say, "What about the past 30 years of prosperity?" Just about the only thing that has prospered, has been the illusions in your mind. Compare the state of our transportation or energy infrastructure, to that of 30 years ago. Or take manufacturing, or, better yet, machine tool production. The most readily-at-hand measure of this taking-down of the U.S. economy, is the government's own data on the trade deficit and current-account deficit—demonstrating the imbalance between imports and exports, which had been relatively in balance until the late 1970s and early 1980s. There you see, how the United States has in fact been living off the rest of the world, with the huge excess of imports over U.S. exports. (Last week's figures, for the month of May, showed the trade deficit at a record level of $37.6 billion, headed for a $400-billion deficit this year. Taking physical goods alone, the May deficit was even higher, at $41.5 billion.) Why would anyone have believed, since 1971, that the world would have gone in any other direction than that which LaRouche had said? Why did anyone, at any point, believe that, since 1971, the U.S. and world economies would be anything but a bust? That is the question you must answer. People may say, "I don't agree, because what LaRouche is saying offends one or more of my adopted beliefs." So, in order to recognize that LaRouche has been right all along, they would have had to give up their deeply-held, axiomatic assumptions about how the world works. The problem now, is that people do have to give up those assumptions, because it is precisely those assumptions that stand in the way of their acting on the solutions that LaRouche has proposed. People will say: "Yes, LaRouche is right, but what he proposes, a return to Franklin Roosevelt's methods, won't work." Think of all those people who say, "Oh, no, Roosevelt was a big government President—we can't go with that." This is precisely the kind of assumption which led to the acceptance and toleration of the insanity of privatization, deregulation, and the wide-scale looting of the last 30 years. Above all, the hegemony of such delusions must be broken within the United States. Around the world, there is increasing recognition, among the intelligentsia, and leading government circles, that LaRouche has been right, and that that which LaRouche is proposing—a global bankruptcy reorganization into a New Bretton Woods system—is the only means out of the present onrushing crisis. The key to opening up the political system in the United States—especially within the Democratic Party, but also among Republicans—is the campaign which LaRouche has launched to destroy the influence of the corrupt political networks typified by Senators Joseph Lieberman and John McCain. Destroy these two, and a great deal then becomes possible, including a change of course for the Bush Administration. Leave them in place, and we are looking into economic and strategic hell. <A HREF="http://www.ctrl.org/">www.ctrl.org</A> DECLARATION & DISCLAIMER ========== CTRL is a discussion & informational exchange list. Proselytizing propagandic screeds are unwelcomed. 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