several measures to put the economy back on its feet. The first step is for the Fed to raise interest rates to 4%, to assure that institutional depositors maintain their deposits in the banking system, and thereby defend the banking system against the attempts by the British to weaken U.S. banks by luring the deposits to London. While this step will not solve the larger crisis, it will help keep capital in the U.S., capital which will be necessary for recovery projects. It will also give the Brits a bloody nose, and teach them a needed lesson about the dangers of looting the United States.
Once the interest-rate policy has been put into place, we can move to phase two, beginning with the passage of the Homeowners and Bank Protection Act (HBPA). The HBPA would erect a firewall to protect homeowners from foreclosures, and begin the process of putting the financial system through bankruptcy. Necessary functions like food production and delivery, education, health care, and the like would continue, while the huge mass of speculative derivatives bets, securities, and such would be frozen, to be sorted through later. Among the essential services to be protected, ironically, would be banking, as a functioning banking system is essential to the operation of an economy, and to the rebuilding process which is required. However, we should stress that we are talking about protecting functions, not institutions, and that saving the banks in many cases means saving them from the people who now run them. Many of the banks will have to be reorganized.
Having erected the firewall, the rebuilding can begin, using low-interest-rate directed credit to repair and upgrade our depleted infrastructure, rebuild our manufacturing base, and implement new technologies to lift the entire economy into a new era of productivity. This includes the large-scale development of nuclear power and the building of high-speed magnetically levitated (maglev) trains to deal with our transportation problems; large-scale water projects and desalination to address the growing water shortages in the Western states, especially; and other projects of the same kind. These projects, far from costing us money, will, in the long run, increase the productive power of the economy, creating wealth far in excess of their costs.
At the same time as we begin rebuilding, we can enter into agreements with other nations, particularly, Brazil, Russia, India, and China (the BRIC nations) to carry out these policies on a global scale. With such a bloc committed to national sovereignty and international cooperation, the power of the British Empire and the Anglo-Dutch Liberal slime mold can be broken, finally freeing the world from its deadly embrace.
These policies, based upon the proven American System of Economics, are what built the strongest economy in the history of the world: Alexander Hamilton used them, Lincoln used them, FDR used them—they are proven, and they work. But time is running out, and we must act quickly.
"We're on a very short fuse," LaRouche said recently. "We have the policy. We have the approach, it will work: It's the only damned thing that will work! Either we win and get this through, or you can kiss the United States goodbye. And that's in the short term, not the long term.... The system is dead! The patient is dying. We're on a death-watch, by the bedside of the patient. The patient is the U.S. economy. You're sitting by the bedside while the patient is dying."
"I've already defined the only possible solution. Nothing else will work," LaRouche continued. "Everything else is a waste of time. The system is dead: It's the walking dead. It's finished! Either you put in a new system, and there's only one way to do it, or the United States and the system are dead! And the whole world goes down with it."
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