Add to these trends the gigantic debt bubble that collapsed the MBS market and housing market in 2007-08, but which has doubled since then, and what we are facing is not another great depression, but an economic breakdown crisis. The which will lead not only to the collapse of physical production of goods necessary for continued existence but the collapse of credit and finances that support physical production. Imports of basic economic necessities will cease to exists. There were many added to the list after the U.S. swallowed the poison represented by GATT, WTO and NAFTA reforms which combined to end U.S. industrial driven progress altogether. The U.S. physical economy measured in terms of GDP, fell below breakeven during the interval 1967-1970. Deregulation in the 80s and 90s took the U.S. over the edge. Cancellation of Glass-Steagall in 1999 was the last straw. Hyperinflationary forces took over. The Fed compensated Investment Banks with QE while Main St was credit starved. The disastrous results can be seen but are not limited to cities along the Great Lake Region. Agro-Industrial economic activity in the U.S. has collapsed while demand has remained steady or increased. A sure recipe for what is about to hit the U.S. Hyperinflation like that of 1923 Weimar, Germany! What stopped it then was gold. Pegging gold to the Reichsmark ended inflation of the currency but it didn't stop the physical collapse of the German economy.
To prevent hyperinflation the U.S. must 1. restore Glass-Steagall and return to prudent banking practices in the Commercial Banking system. Cancel all derivatives obligations.
2. Create a credit system and national bank, to finance the physical recovery of the U.S. economy.
3. New issues of government directed credit for long term productive investment in economic infrastructure will kick start a real recovery. Credit, Interest rates, and Lending authorization must be restored to the U.S. Treasury Dept.
A U.S. two tier credit system will dry out speculation while spurring investment in agro-industrial activity of the U.S. physical economy.
4. Science driver projects. A crash fusion research program. Manned space exploration mission to explore nearby and deep space beginning with the U.S. Moon-Mars mission. We, together with China, Russia, and other space exploring nations, will colonize and develop living conditions on the Moon and Mars, and beyond.
These are the Four Laws of economic recovery of Lyndon LaRouche. LaRouche's Four Laws if acted on by the federal government, will produce the desired outcome most Americans will support.
Add to these trends the gigantic debt bubble that collapsed the MBS market and housing market in 2007-08, but which has doubled since then, and what we are facing is not another great depression, but an economic breakdown crisis. The which will lead not only to the collapse of physical production of goods necessary for continued existence but the collapse of credit and finances that support physical production. Imports of basic economic necessities will cease to exists. There were many added to the list after the U.S. swallowed the poison represented by GATT, WTO and NAFTA reforms which combined to end U.S. industrial driven progress altogether. The U.S. physical economy measured in terms of GDP, fell below breakeven during the interval 1967-1970. Deregulation in the 80s and 90s took the U.S. over the edge. Cancellation of Glass-Steagall in 1999 was the last straw. Hyperinflationary forces took over. The Fed compensated Investment Banks with QE while Main St was credit starved. The disastrous results can be seen but are not limited to cities along the Great Lake Region. Agro-Industrial economic activity in the U.S. has collapsed while demand has remained steady or increased. A sure recipe for what is about to hit the U.S. Hyperinflation like that of 1923 Weimar, Germany! What stopped it then was gold. Pegging gold to the Reichsmark ended inflation of the currency but it didn't stop the physical collapse of the German economy.
To prevent hyperinflation the U.S. must 1. restore Glass-Steagall and return to prudent banking practices in the Commercial Banking system. Cancel all derivatives obligations.
2. Create a credit system and national bank, to finance the physical recovery of the U.S. economy.
3. New issues of government directed credit for long term productive investment in economic infrastructure will kick start a real recovery. Credit, Interest rates, and Lending authorization must be restored to the U.S. Treasury Dept.
A U.S. two tier credit system will dry out speculation while spurring investment in agro-industrial activity of the U.S. physical economy.
4. Science driver projects. A crash fusion research program. Manned space exploration mission to explore nearby and deep space beginning with the U.S. Moon-Mars mission. We, together with China, Russia, and other space exploring nations, will colonize and develop living conditions on the Moon and Mars, and beyond.
These are the Four Laws of economic recovery of Lyndon LaRouche. LaRouche's Four Laws if acted on by the federal government, will produce the desired outcome most Americans will support.