Despite the illusion created by a succession of financial bubbles over recent decades, the US economy has been sliding deeper into a physical collapse, with the the living standards of the general population deteriorating to the point of an unprecedented increases in the death rates from so-called ‘diseases of despair’--this is Obama’s great economic recovery. In the 1990s Lyndon LaRouche had already forecast this collapse process in his triple curve illustration.
‘The Triple Curve’ was first presented by Mr. LaRouche at a conference at the Vatican in 1995 to illustrate the unsustainable divergence of financial and monetary activity from physical economic activity.
No single one of these measures alone can work, only the integrated implementation of the entire program as the single totality Mr. LaRouche presents in his Four Laws policy document. Economic growth is a product of the mankind’s unique capabilities for creative discovery — setting mankind apart from all lower forms of life, and ensuring there are no limits to mankind’s growth (other than those self-imposed by degenerate policies). LaRouche’s Four Laws program is rooted in this scientific insight into the source of economic progress, as understood by Franklin Roosevelt, Abraham Lincoln, and the great genius of Alexander Hamilton.
LaRouche’s Four Laws provides the only basis for the United States to save itself from collapse and join in collaboration with China, Russia, India, and other nations participating in the global economic renaissance centered around China’s New Silk Road program.
The 1999 repeal of the original “Glass-Steagall Act” of 1933 was perhaps the single greatest criminal act committed against the economic welfare of the American people in the 20th Century. Despite all claims to the contrary, the repeal of Glass-Steagall laid the groundwork for the creation of a monstrous derivatives bubble which burst during the financial crisis of 2007-2008. All subsequent monetarist games of bail-out, bail-in, quantitative easing, etc. have failed, and we must return to a strict separation of commercial and investment banking with Glass-Steagall—ensuring legitimate commercial banks continue to receive federal protection, but Wall Street’s speculation and gambling is cut off. Currently there is massive support for the reinstatement of Glass-Steagall, including live bills in the Congress with dozens of co-sponsors.
Support for Glass-Steagall: Check if your Representative and Senators are co-sponsors, and coordinate with LaRouchePAC on the action page.
The reinstatement of Glass-Steagall must be immediately followed by a “return to a system of top-down, and thoroughly defined as National Banking,” as originally defined by Alexander Hamilton. As the nation’s first treasury secretary Hamilton successfully oversaw the creation of a national bank, and its use to issue the credit needed for the development of the nation. This basic principle has been at the heart of all periods of major development and growth of the United States, including under John Quincy Adams and Abraham Lincoln (and was echoed in the policies of Franklin Roosevelt and John Kennedy), and must be revived today.
Background: LaRouche’s December 21, 2012 Webcast Keynote
3. Federal Credit to Increase Physical Productivity
With a national banking system, federal credit must be provided according to the strict physical economic standard of increasing quality and quantity of productive work, measured in terms of increases in the productive powers of labor and of energy-flux density. As Mr. LaRouche says in his Four Laws, this is based on “the essential human principle, which distinguishes the human personality from the systemic characteristics of the lower forms of life: the net rate of increase of the energy-flux density of effective practice.” While Franklin Roosevelt’s recovery programs serve as an indispensable precedent, the depths of the current crisis require the deeper understanding of the science of physical economic growth developed by Mr LaRouche.
As Lyndon LaRouche makes clear in his 1984 paper, "In Defense of Alexaander Hamilton,"
"The connection between inventions of the mind, and the increase of the physical productive powers of labor, is the kernel of the American System. What I have accomplished, is to show that it is possible to predict mathematically the rates of the increased physical-economic growth which will result from an effective use of a specific sort of mental production of a new technology. On this basis, I have been able to provide a new, stronger scientific proof for the reasons that Hamilton's American System promotes depression-free economic growth, and why Adam Smith's doctrine must always lead a nation to new disasters."
As Mr. LaRouche concludes his Four Laws policy paper, “a Fusion economy, is the presently urgent next step, and standard, for man’s gains of power within the Solar system, and, later, beyond.” It is the unique capability for creative discovery of scientific principle which separates mankind from the mere animals—meaning mankind’s most basic essence requires continual revolutionary creative progress. Any idea of a limited growth for mankind is unnatural and immoral in the most fundamental sense, and must be forever dispensed with. Mankind must always look to the new challenges which provide the paths to transform mankind into ever higher states. Today that points us towards the mastery of fusion power (and related technologies) and to the development of the Moon as mankind begins to truly enter the Solar System as a creative force.
Background: Mr. LaRouche on the science of human creative discovery