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SCHILLER INSTITUTE

Lyndon LaRouche Replies to Emails
On Various Topics

Spring, 2002

On Geopolitcs, and Gold Reserve
Versus Gold Standard

On Real American History
Versus Populist Fantasy

On Violent Videos

On Education Policy

On Rudolph Steiner

On Slanders Against LaRouche

On Hyperinflation

On the Financial Bubble

On the Euro and the Dollar

On Cognition

On Von Mises

On LaRouche's Background


More LaRouche Dialogues

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Email Correspondence
April, 2002

On Geoplitics and Gold
Spring 2002

From Europe
Subject: RE: GEOPOLITICS AND GOLD

Sir Larouche,

I do agree with your multitude of analyses on the geo-politico and economical situation But, you seem to overlook something Very important and extremely Powerfull ! The Valuation of Gold !

Gold is Manipulated by the dollar block. The US$ with its status of global reserve currency can be challenged "Immediately" by the breakers of the Gold manipulation and the euro-currency, with its Gold affiliated architecture !

Europe, China, Russia and the Middle East can use the Gold Fulcrum to free themselves of the dollar-recolonization. A Free Physical Gold market after the default of the enormous paper-contract goldmarket of today by relative small uptake of Physical Gold by the mentionned anti dollar blocks!

Question : Do you consider this opportune as an alternative for total collapse and war ?

Thank you and please accept my sincere regards,


Mr. LaRouche's reply

The subject is the implications of the difference between the British gold standard, and the gold reserve standard used effectively during approximately 1945-1965. I am committed to the reintroduction of the latter, as an integral part of a new, emergency world monetary-financial system modelled in large degree on the successful features of the 1945-1965 period of post-war reconstruction in the Americas, western Europe,and Japan.

In the immediate period ahead, there is a strong tendency for a rise in the price of gold on ordinary markets, despite the more or less concerted efforts of central bankers to resist this.

I would agree that the two distinct processes have a certain tendency to converge, especially so, since gold used as a feature of a gold-reserve standard has far greater leverage, under a well-ordered monetary-financial system, than gold as such. Gold as such generates no growth in the economy. Gold as a reserve standard of a credit system engages those productive powers of labor which do generate real net physical growth in assets. The successful reconstruction of western Europe, through the impetus of leaders such as Monnet, typifies the connection.

You interweave the return to emphasis on gold in monetary processes with another issue, the understandable, but usually misconstrued issues of U.S. hegemony over Europe. The use of gold as a weapon against U.S. overreach, misses a certain set of crucial points.

Since the British encouragement to the Emperor of Japan to launch the 1894-1905 series of wars against China, Korea, and Russia, and the overlapping, 1901 assassination of U.S. President McKinley, the U.S. currents associated with the faction of Presidents Theodore Roosevelt, Woodrow Wilson, and Calvin Coolidge, and Coolidge's accomplice Andrew Mellon, transformed the U.S.A. into a virtual adjunct of the British monarchy, through a set of interlinking arrangements among, initially, the U.K., Canada, and the U.S.A., the so-called "BAC" arrangement.

Franklin Roosevelt's 1932 election reversed the 1901-1932 trend in U.S.strategic outlook and policy, but, after his untimely death in 1945, Roosevelt's strategic and other policies began to be reversed, some immediately, with ultimately disastrous effects. With the 1989-1991 dissolution of the Soviet Union, the Anglo-American faction which had continued the tradition Teddy Roosevelt, Wilson, Coolidge, and Mellon, used the governments of Margaret Thatcher and Francois Mitterand, to set into motion a plan for undermining the economies of continental Europe, with the medium-term perspective of creating a kind of post-nation-state system, an Anglo-American world empire parodying the ancient Roman Empire, Napoleon Bonaparte's fantasies concerning a European continental system, and, to speak with frankness, the Nazi Waffen-SS.

Since the Nixon's first term, there has been a growing conflict between the U.S.A. and continental Europe. The Carter administration was the worst on this account, until the present administration of George W. Bush. This conflict has been pivotted on radical changes in U.S. military policy, away from the tradition typified by MacArthur and Eisenhower, toward a model of policy and practice associated with Samuel P. Huntington's parody of the Waffen-SS, in his "The Soldier and the State." The unleashing of the Brzezinski-Huntington-Bernard Lewis "Clash of Civilizations" policy, in the wake of the events of recent Sept. 11th, has driven the tension between Europe and the present U.S. administration to an extreme. On that account, a deep and growing resentment against the encroachments of an imperial U.S.A. were inevitable.

However, I propose that sound medicine treats the illness, rather than the pain as such. We ameliorate the pain, but must cure the illness. Look carefully at the current U.S. administration. What you should recognize there is a giant, but one with a feet made of economic clay, and a head to match. It is an administration which is potentially as dangerous as the Emperor Nero was, but also as foolish and imminently doomed as his reign was. The present world monetary-financial system is now in its terminal phase of collapse, nearing the point of, not a mere depression, but a breakdown-crisis. There is no influential government visible in any part of the world today, which does not exhibit a tragic lack of competence, or even willingness, to correct those errors which threaten to bring about its collapse.

The present monetary-financial system is imminently doomed. We must deal with it in that closing phase of its existence, but we need not fight battles with an imminently defeated adversary. The challenge is that of defining and establishing both the needed new world monetary-financial system, and of adopting a general program of international cooperation in measures of reconstruction to be accomplished during a coming span of approximately a quarter-century of what President de Gaulle adopted under the rubric of "indicative planning." We need a workable, durable system of long-range cooperation among respectively sovereign nation- states. This must emphasize cooperation in Eurasian development, but complemented by development in Africa and the Americas.

To maintain the supply of basic long-term credit at between 1-to-2% simple-interest-rates, which is required, we must have a stable system of relatively fixed exchange-rates, as buttressed by restoration of 1945- 1965-style protectionist measures generally, in order to maintain high rates of non-inflationary growth in the world system generally. Thus, the gold-reserve-standard for fixed-exchange-rates, becomes the model of reference for today's urgent needs.

- - Lyndon.


Email on US History

Spring 2002

To: ask_larouche

...and on the home front?

http://www.questionsquestions.net/documents/bankrupt.html

I would love to hear your commentary on the information presented in the link above, since you seem to be blindly 'in love' with FDR and 'Honest Abe'. To me, the last, and probably the only, effective (not perfect) President of the United States was Andrew Jackson. He did stand up to, and effectively rooted out, the International Banking interests, that are running the show today, and have been doing so since Jackson's 2 terms were up. Judging by the level of e-mails you are recieving, it seems to me that the establishment's historians (spin-doctors) have clouded the issue so much that only the complete reversion to the Principles of the ORIGINAL Document of the Constitution of the United States, and everything that it implies, can be viewed as a remedy to the current situation. People, including you, cannot seem to understand a simple truth: We cannot help others, if we cannot even help ourselves!

The true history of the United states can be gleaned ONLY through following the MONEY trail! This fact must be presented and discussed in the open forum. Tell people the truth, educate them, and only then can we expect them to make intelligent choices. Again, I would love to hear your thoughts on this and also why there seems to be such a 'disconnect', such a disjointed effort, on the part of the people that seem to have the same concerns - common welfare. It seems to me that only by recognizing the root of the problem, pooling our resources and supporting one another will we ever be able to achieve anything worthwhile - anything else is simple posturing and beating yourself in the chest, which serves to only further diffuse the attention of the people from the real cause of our today's situation and its culprits.
Warmest regards,

Here is Mr. LaRouche's reply:

You have it backwards. Andrew Jackson was an asset of a faction of the U.S. associated with Aaron Burr, the latter anasset of the British Foreign Office's head of secret intelligence Jeremy Bentham. Burr was, among other things, the founder of the Bank of Manhattan. Burr's heir, the controller figure in New York banking, had a political heir Martin van Buren, the founder of the Democratic Party, and backer of Andrew Jackson's candidacy for President. Under Jackson, U.S. sovereignty over its national credit was destroyed by closing down the U. Bank, and replacing it with the van Buren land-bank system which looted the nation and plunged into the great panic of 1837. Van Buren succeeded his protege Jackson as President.

The same gang controlling the Democratic Party produced a pack of U.S. Presidents, Polk, Pierce, Buchanan, and Cleveland, which were the most corrupt in our nation's 19th Century history. The same New York-controlled interest of Democratic Party controllers van Buren, Belmont, et al., produced the Presidencies of those sons of the Confederacy Republican Theodore Roosevelt and Ku Klux Klan fanatic Woodrow Wilson, and slid the U.S. into the Great Depression of 1929-32 through the Republican heirs of the Theodore Roosevelt and Wilson package, Coolidge and Andrew Mellon. Franklin Roosevelt then saved the U.S. from falling into the same kind of degeneracy which befell Germany under Adolf Hitler.

You must therefore completely restudy history, this time to find a U.S. history in accord with the facts, instead of a counterfeit concocted to fit some what are nothing other than populist fantasies.

You might begin by studying Anton Chaitkin's Treason in America.

-Lyndon.


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