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The Nov. 11th Resolution:

Whereas: The Present World's Monetary System Is Now Hopelessly Bankrupt

by Lyndon H. LaRouche, Jr.

November 1, 2008

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1. As of Saturday, November 1, 2008, the present world’s monetary system is hopelessly bankrupt. Any attempt to continue that system, would not only be a fraud by those political powers which refuse to recognize that reality, but would be, in and of itself, a perpetuation of a vast crime against that great mass of humanity which would suffer from cruelties greater in magnitude of their global effects than the practices of the Adolf Hitler machine.

2. What the world as a whole is now experiencing, is a global economic break-down, comparable to what Europe experienced as a Fourteenth-Century “New Dark Age,” a new breakdown which erupted, first, in the U.S.A. at the close of July 2007. Under present conditions, the continuing failure to recognize that fact, heretofore, as by leading powers of the planet, would be, in effect, a crime against all humanity by such powers and their responsible authorities, who, therefore, would be, culpable individual leaders in both government and international economic affairs.

3. In my capacity as a successful long-range economic forecaster, I have repeatedly identified the conditions leading into this presently onrushing, global breakdown-crisis of the present world International Monetary System. I have done so with a uniquely valid scope, and with specific warnings, during the period leading into and following the beginning of the present, global break-down process, since July 25, 2007. Clearly, any agency, or government which fails to take that crucial evidence into account, is , like the U.S. Congress itself, to date, acting with reckless disregard for economic realities and the social consequences of their negligence.

4. While there is presently wide-spreading acknowledgment among leading governmental and related circles of the world, that a reform deserving of the rubric “New Bretton Woods System,” is urgently required for this situation, there is no clarity among those powers, as of yet, as to exactly what that means in terms of the most essential principles of such a reform. It is essential that clear fundamental principles be defined, and that quickly, “The system is coming down right now,” as I do here!

5. Therefore, it is indispensable that a special, closed-door meeting among selected, suitable personalities be convened in Washington, D.C., on November 11, 2008, preceding the scheduled general meeting with U.S. President George W. Bush, Jr., to advise President Bush and other relevant parties on what would be justly demanded of them in the matter of the virtual doomsday character of the world’s presently, immediately looming general breakdown-crisis. This November 11th meeting, has been selected as the opportunity to develop some broad guidelines on the nature of the required immediate agreement from the President of the U.S.A., to launch the call for the immediate declaration of commitment to a return to a present-day agreement in global economic reform which would be consistent with the avowed intention of U.S. President Franklin D. Roosevelt at Bretton Woods, prior to that President’s death.

6. In view of the unmatched, great credibility which I have earned as a long-range forecaster, it is indispensable, in the interest of securing a competent agreement, that I initiate, and be a sponsor of this present call.

7. It is intended that a limited number of responsible U.S. political officials and suitable other notables be included among a select, initiating group of those invited. To many cooks will ruin the pot. That body should recommend extension of invitations to relevant international figures known to be sympathetic to this type of event, to discussions for the purpose of continuing discussions immediately following that of Nov, 11th. We must move on this quickly; the world’s presently, hopelessly bankrupt monetary system is already on the verge of imploding.

8. The intent of assembling this as a private meeting and, also, its probably immediate, private sequels, is to create a proposal as free as possible of what were otherwise likely diversionary disruption by “lobbying” by obvious circles opposed to the very idea of a proceeding in bankruptcy against the presently ruling, but, hopelessly failed, global, and implicitly fraudulent, Anglo-Dutch Liberal, “monetarist” form of international monetary system.

9. We must not permit circles of governments, such as the already failed circles of President George W. Bush, Jr,, himself, to control the agenda of deliberations to such a degree that essential elements of issues of agreement be excluded from the deliberations in that fashion. It is the governments themselves which have failed in this matter thus far; a judgment of that failure is, therefore, an essential part of any competent draft proposal.

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General Finding On Background:

The crucial issue posed by the current, general bankruptcy-in-fact of the present world monetary-financial system, dates, in its notable origins, from that February 1763 Peace of Paris which established the British East India Company of such as Britain’s virtually Satanic Lord Shelburne as a world empire-in-fact. Without taking that fact into account, as central to any competent understanding of both the causes and remedy for this presently onrushing, global breakdown-crisis of the existing world system up to this point, there will be no competent action to prevent an immediate general collapse of global civilization into a new dark age.

From that inception of what is known today, variously, as the British Empire, or that Anglo-Dutch Liberal system which has reigned afresh, increasingly, as a world empire-in-fact since August 15, 1971 and the subsequent petroleum-price crisis, this empire, which is what came to be known as “The British Empire,” was essentially a “New Venetian” empire of international financier interests, an empire (or, if you prefer, vampire), led by the followers of Paolo Sarpi, which had employed its captive United Kingdom as a leading, subsumed instrument of a supra-national power of relevant circles constituted as a ruling monetary system.

The core of that ancient and modern imperial power has been the establishment of international monetary systems which have functioned as, ostensibly, partners with governments, but whose essential form of power has been as a power operating from outside of, and over even governments with which they are associated as ostensibly mere partners.

This pathological habit, known as monetarism, was already this form of monetarist imperialism, which prompted the initial, 1763 break of the patriots of English-speaking North America from the rapine associated with Lord Shelburne’s British East India Company. The constitutional monopoly of the later U.S. republic over its lawful utterance of credit, has been, from its inception, that principle of U.S. patriotic resistance against what was then, and again today, the globally crucial, imperialist power of global Anglo-Dutch Liberalism which is still the presently crashing world monetary-financial system of today.

The systemic implications of that crucial difference between the U.S. constitutional credit-system, and the Anglo-Dutch imperial, world monetary system, is the issue on which the survival or doom of the present world economic and social system depends, inevitably. and immediately.

This fact must be seen in terms of reference to the 1782 establishment of the British Foreign Office under the thumb of Shelburne’s British East India Company’s Jeremy Bentham, then, which has been the characteristically imperialist feature of the emergence of the Anglo-Dutch Liberal financier interest as the imperial power it remains, still, today.

Whereas, that Anglo-Dutch Liberal form of imperial monetary power, which President Franklin Roosevelt had intended to bring to an end as soon as the war against the Hitler forces had been won, acted, after his death, to employ U.S. President Harry S Truman to thwart President Roosevelt’s anti-colonialist intentions for the post-war world. Truman, betrayed the United States, and assisted London in re-establishing colonial power, either overtly, or under subterfuges, from that time to the present day.

In fact, no new monetary a system, for reason of its very nature, could cope successfully with a crisis of the origin and present characteristics of the presently onrushing general breakdown-crisis of the planet as a whole. Only the institution of a credit system of the type intended by that President Roosevelt in 1944, as a Bretton Woods reform introduced by him, represents the true model of any efficient remedy for the effects of the presently on-rushing, concluding phase of an ongoing, assured, general breakdown of the entirety of each and all among the world’s present monetary-financial systems.

The only type of reform which could combat the present breakdown-crisis efficiently, as had been intended by President Franklin Roosevelt in 1944, would be an international monetary system based on the principle of public credit embedded in the intention of the U.S. Federal Constitution, as emphasized by Treasury Secretary Alexander Hamilton, rather than the Keynesian mode of implicitly imperialist monetary systems associated with the Anglo-Dutch Liberal world-imperial financial-monetary systems of Europe, as also the U.S.A., which are breaking down today.

A reference to the original, German edition of Keynes’ proposal of a general theory, in 1937 Berlin, reveals the truth about the Keynesian conception as having been a wittingly pro-fascist sort of imperial model, a model of the type which has been in increasingly full effect since those radical U. S. developments of 1968-1973.This has been the model which has been the genesis of what was to become something like the world breakdown-crisis reaching the point of a general, global collapse during these present weeks.

To appreciate the implications of what I have just written here, we must recall those conditions of of British strategic policy during 1937-1940, which led to the British financial establishment’s break with what Britain had created as the Adolf Hitler regime.

Prior to the Nazi Wehrmacht’s breaking into France, an action which violated the terms of Britain’s earlier accommodation with its sometime protege Hitler, nearly all notables, including Winston Churchill, had been willing to “tolerate” a Hitler whom they presumed to be committed to the targeting and conquest of the Soviet Union. When Hitler struck France, first, and that successfully, the former Anglo-American and other financier circles, such as Harriman’s Prescott Bush, the grandfather of President George W. Bush, Jr., which had had a policy of tolerating and co-operating with the Hitler regime, joined with Churchill et al. in turning against their former crony, the Hitler regime. It was only the Nazi break-through into France, thus breaking through what had been presumed to have been agreement not to breach the western diplomatic barrier, that prompted Britain to turn against its former crony, Hitler.

Today, the genocide against Black Africa maintained by the British Empire and its U.S. sympathizers among financiers in official positions of influence, typifies the essential difference between the U.S. Constitutional principle of President Franklin Roosevelt and that British imperialism whose colonial and related imperial interests were defended by President Truman. Truman’s folly has been continued to the present day, as to be seen in Truman’s legacy itself through the time of President Richard Nixon and those of Presidents George H. W. Bush and his son, George W. Bush, Jr. This monetarist view alien to our republic, is the axiomatic root of the horror we must recognize as unfolding in Congo right now, as these words are written at this present moment.

Where on this issue, we might ask, for example, does President George W. Bush, Jr. stand today? Where Barack Obama, for example?

1.Back to President Franklin Roosevelt!

In such circumstances as these, one must inquire:

What is, speaking practically, the essential difference between the Bretton Woods System of President Franklin Roosevelt, and that pro-Keynesian system shaped by the influence of his successor, President Harry S Truman?

All imperialist, and quasi-imperialist systems known to our history to date, as known from studies of the “bow tenure” system traced to Sumer, through the time of the implications of the Homeric Iliad for ancient Greece, depend, as in the case of the fraudulent set of definitions, axioms, and postulates of Euclid’s Elements, on the assumption of the existence of arbitrarily presumed, a-priori assumptions respecting attributed, so-called “self-evident,” essentially arithmetic definitions, axioms, and postulates.

Yet, the roots of ancient through modern European physical science are located in a notion of science explicitly contrary to the a-priori presumptions associated with the dogma of Euclid’s Elements. Such is the case for the ancient Pythagoreans and Plato, and for the founding of modern European science by Cardinal Nicholas of Cusa and such among the students of Cusa’s discoveries as Leonardo da Vinci, Johannes Kepler, Pierre de Fermat, Gottfried Leibniz, Carl Gauss, Lejeune Dirichlet, and Bernhard Riemann, and, later Max Planck and Albert Einstein, among others. Einstein’s celebrated public adoption of the work of Kepler and Riemann as providing the actual foundations of a competent modern physical science, is an expression of this distinction.

See the opening several paragraphs of Bernhard Riemann’s 1854 habilitation dissertation for a conveniently authoritative statement of the problem.

The most crucial of the relevant points bearing on the present crisis respecting matters of the roots of competent economics in matters of universal physical principle, is that all so-called “reductionist” sets of axiomatic presumptions, such as the reductionism of Euclid’s Elements and the modern empiricists, positivists, and existentialists generally, are based on axiomatic-like, a-priori assumptions whose effect is to exclude consideration of the existence of those universal physical principles, such as Johannes Kepler’s uniquely original discovery of the principle of gravitation, which are to be found only “outside” the domain of the kind of a-prioristic presumptions typified by the role of sense-perceptual-premised, definitions, axioms, and postulates in Euclid’s Elements.

The particular, most crucial significance of this point for understanding the presently ongoing, general, economic breakdown-crisis striking all of our planet’s societies today, is that such systems, premised a-priori on ideas respecting human sense-perception as such, are not merely incompetent scientifically, but are the most frequent concomitant of the great, self-inflicted physical-economic disasters of once proud nations and their cultures.

The crucially relevant issue posed by that vulgar practice, is the essential distinction of the human species, from all forms of inhabitants of the Biosphere. That is the issue of the functional denial of the existence and role of human individual creativity in enabling a society both to avoid otherwise inevitable attrition, and even collapse into a relevant new dark age of that part of the entirety of humanity. This is especially notable for the case of modern economy, in which the employment of discoveries derived from the context of universal physical principles, is the only source of the power of the human species to rise to potential relative population densities beyond the capacity of the higher apes.

I defy any among you to show me the expression of such creativity within the economic-policy doctrines taught in the universities, or governments, of leading nations of our planet today. On this account, all financial accounting systems known to us are sources pregnant with ultimate disasters of the type which now menaces the continued existence of civilization on our planet today. In these inevitably failed systems prevalent today, the notion of profit is the notion of the looting of the labor of man, by other men, rather than promoting the shared benefit of human creativity, through discovery of those applicable principles by means of which mankind’s potential relatively population-density is increased: an increase which can be sustained only through the use of creative mental powers which are nowhere to be found in the doctrines of systems of generally accepted modern financial accounting or generally accepted academic economic theories.

It is precisely for that reason that, in matters of economic forecasting, I have succeeded repeatedly in long-range forecasting, where all my leading putative rivals have failed so miserably, especially at the present point in global developments.

2.The Only Remedy Available

There are two principles of physical science which are of crucial importance for the shaping of economic policies among nations today.

First and foremost, is the principle of dynamics as Gottfried Leibniz raised the issue of this principle in exposing the inherent incompetence of the influence of such modern reductionist followers of Paolo Sarpi as Rene Descartes.

Sarpi adopted a method copied from the medieval irrationalist William of Ockham, under which mathematical and kindred formulas were substituted for the actual discovery of proof of universal physical and related kinds of universal principles. So, today, in typical schools and universities, mere mathematical formulas are substituted for what are actually provable, experimentally, to be universal physical principles. Johannes Kepler’s uniquely original discovery of gravitation, as proven for the first time in his The New Astronomy, and his discovery of a universal principle of gravitation within the Solar system as a whole, as proven, uniquely, for the first time, in his The Harmonies of the World, have served as the foundation of all competent modern physical science through the work of such as Max Planck and Albert Einstein. As the case of Harvard University illustrates the point, neither of these discoveries are recognized in the typical university curriculum of today.

It is mankind’s discovery and application of discoveries of this universal quality which define the method by which the increase of the physical productivity of nations, per capita, and per square kilometer, is actually accomplished. That is to say, that it is through the discovery of universal physical principles, and the application of those methods of discovery to the practice of society, that the maintenance and net increase of the productive powers of labor, per capita and per square kilometer. are not only maintained against decrease, but enjoy a net increase.

3.The Role of the Nation-State

However, contrary to some relatively popular mythologies, the increase of the productive powers of labor is not secured through the mere application of discovery of principles to the legendary “point of production.” Progress in productivity is chiefly through the combined spread of technological progress at the point of production, as combined with the increase of the quality of general infrastructure in which production occurs.

This principle of economy was introduced to modern economy by Gottfried Leibniz, especially in Leibniz’s exposure of the scientific frauds of Rene Descartes. It is only in the domain of physical dynamics, as physical dynamics was developed as a conception by Bernhard Riemann, that the actual functional role of universal physical principles was made adequately clear to modern economy.

The source of this creative power expressed by the individual and his or her society, is located in the same specific qualities of the human individual mind which are associated, on the one side, with physical scientific progress, and, at the same time, with the progressive development of Classical modalities in culture which are typified only by Classical modes in artistic composition, as in Classical poetry, Classical drama, and Classical musical composition and performance in the vein of J.S. Bach, Mozart, Beethoven, et al. The expression of these specific forms of creative powers is located, primarily within the body of Classical expressions of national language-cultures.

It is the affirmative co-operation of national cultures to the common ends so identified, which is the dynamic principle of creative progress on which the future of a presently menaced humanity now depends absolutely.
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