I REFER to the report “World economy in danger” (NST, Sept 16), quoting the president of the World Bank, Robert Zoellick.
On Sept 13, Italian Economy Minister Giulio Tremonti came out with an even stronger warning — “the threat of a dark age is real” — as a consequence of having “bailed out the most negative part of the banks”.
These high-level warnings over the past week are true — but 40 years too late.
According to American economist Lyndon LaRouche, the world’s most accurate economic forecaster since his first forecast in 1956, the world has been bankrupt since 2008 and is surviving on purely artificial gambling money produced by international bankers without any backing in the productive economy.
LaRouche’s famous forecast of August 1971 stated that the overthrow of Franklin Roosevelt’s post-war Bretton Woods agreement by president Richard Nixon, acting secretly on behalf of British bankers, would turn the whole world into a giant gambling casino and lead to the collapse of the world economy.
This is what is happening today. So why should we listen to half-baked proposals by the world’s financial “experts” who have taken 40 years to wake up to reality?
A new Glass Steagall Act proposed recently by LaRouche to reverse the world economic crisis has the same intention as the Glass Steagall Act introduced by Roosevelt in 1933.
Its opening paragraph, written three generations ago to get America out of the Depression, is the same as LaRouche’s intention today to outlaw speculative banking, not just in America but globally.
“(The 1933 Act) To provide for the safer and more effective use of the assets of banks, to regulate interbank control, to prevent the undue diversion of funds into speculative operations, and for other purposes.”
Roosevelt’s revolutionary banking initiative lifted America out of the Depression and built the greatest economy the world has ever seen, allowing the military defeat of Hitler and Japan and putting men on the moon under president John F. Kennedy.
This simple Glass Steagall Act protects the legitimate banks that society needs for survival but wipes out speculative banks.
Most importantly, Glass Steagall will again permit the introduction of a credit system to finance the rapid scientific reconstruction of the world, particularly water, electricity, housing, modern agriculture and advanced industry and transportation to satisfy the needs of an expanding world population.
The vast improvements in the physical economy promise to end hunger, poverty and misery in the 21st century and unite the human species for the exploration and colonisation of other planets.
Of course, the British, European and American establishments intend to defend their wealth and privilege by any means and will never agree to this revolutionary transformation of their banking system.
LaRouche has devoted his long life (89 years) to bringing back the legacy of Roosevelt and Abraham Lincoln and the principles of the American Revolution on a worldwide scale.
The solution according to LaRouche is simple. Throw out US President Barack Obama on constitutional grounds; pass Glass Steagalls; negotiate a credit system between America, Russia and China and then extend the credit system to other willing sovereign nations.
If successful, the LaRouche movement internationally will be leading a scientific renaissance to rebuild the world fit for an expanding human population.
Malaysia can play a leading role. For instance, our deep tropical agriculture research for sheep, goats, cattle and milk production is showing how protein food can be increased in underdeveloped tropical countries such as Africa and India and even dry countries if provided with nuclear desalinated water.
By MOHD PETER DAVIS
21 September 2011