China Youth Daily Runs Extensive Article on LaRouche

China Youth Daily, the second most widely read newspaper in China, reaching an audience of over 10 million, printed a lead article on Lyndon LaRouche on their international page, entitled "The Present International Financial System Cannot Be Saved," the first words out of Lyn's mouth when the author begin his interview with Lyn a few weeks ago. The author, Bright Ju, conducted the interview with LaRouche at his home on July 12. The article is really an excellent presentation of Lyn, his work and his ideas. The author begins by going through his biography, through the nine forecasts, his role in the SDI, the political trouble ensuing from that leading to his incarceration, his founding of the Labor Party and his running seven times as a Democratic presidential candidate.

The author also depicts how Lyn aside from being a major political figure, has wide-ranging interests in science, culture and music, a man who hopes to create a new Renaissance, reviving the great tradition of Western culture, from Plato to Riemann, which lay at the basis of the rapid economic development of the last centuries, and to use it to create the basis for a revival of discovery in the natural sciences, based on the study of physical economy.

He refers to Lyn's July 2007 forecast of the end of the system, warnings which were pooh-poohed by most economists and politicians, but which again proved on the mark. He says that Lyn, as a young man, began as something of a Marxist, but then became a proponent of the American System of capitalism. He outlines Lyn's arguments on how from the 1960s on, the U.S. economic system was virtually taken over by the financial oligarchy, laying the basis already then, for the crisis we are facing today. While other economists are busy looking at the economic data, Bright writes, LaRouche is looking at the long-term developments, especially the growing dichotomy between the production of physical goods and the bloated expansion of the financial structure. He also notes how society changed during that time, from being a country intent on producing real goods for world development, to one in which the goal is achieving quick profits.

He outlines Lyn's four-nation proposal as the basis for a new credit, rather than monetary system. He references Lyn's appeal to U.S. bankruptcy law as the basis for putting the present system through bankruptcy and using the powers of the Constitution to revive a dollar-based credit system to revive the U.S. economy, and extending this through treaty arrangements to the other nations of the world.

The article also notes how the U.S. reconciliation with China in the 1970s, and China's consequent "opening up", was premissed on using China as a cheap source of imported goods, thus "fleecing" the Chinese economy. That 30-year period has now reached its end,it quotes Lyn as saying, and now China must shift to internal consumption as the source of growth. This, of course, would require an influx of credit for that purpose, which would only be made possible by the shift to the new international credit system.

China Youth Daily also prides itself on its appeal to the youth, taking "Promoting Social Advancement and Helping Youth Development" as its primary goal. China Youth Daily also advocates new thinking and new ideas.It is perhaps also notable, that the article appears just two days before the convening of the next session of the US-China Strategic Dialogue and Strategic Economic Dialogue, to begin on Monday in Washington. A quick Google search indicates that Bright's article, in the day or so it has been in circulation, has been picked up by about a dozen other Chinese media.

Excerpts:

"LaRouche emphasized that the world financial crisis has already arrived at a crossroads, and that any efforts to try to save the old system would be fruitless, and the only feasible solution is to conduct bankruptcy reorganization in order to restore confidence in the economy. LaRouche says, the U.S. has bankruptcy laws which are tailored to putting bankrupt firms back on a stable footing and to overcome their difficulties. What is now needed is to utilize bankruptcy proceedings that would permit a country to as quickly as possible to discard the distortions created by the financial crisis...

"LaRouche believes that if the United States, China, Russia and India, as sovereign nations which encompass the greatest area of the world and contain the largest population in the world, were to come together to in agreement on financial arrangements, this could provide immediately the basis of a new world financial system...

"LaRouche believes that the development of all of Asia will in the future provide the forward position for the development of humanity. He notes that China has experienced thirty years of rapid development by leaps and bounds, but it can't be denied that there is still a large portion of the population which is far from well-off. Therefore it's necessary to formulate a common policy over three generations to carry through water projects, develop energy resources, and infrastructure in order to raise the productive capabilities of that portion of the population. China certainly has to transform its form of economic growth from an export-orientation to one propelled by internal demand. since China possesses potentially a huge internal market. But it can hardly rely on its own capital which is insufficient to sustain it. It would require other countries to furnish a large quantity of the needed material capital. Russia possesses abundant mineral resources, and through agreements could help provide a large quantity of high quality mineral resources, Japan could export advanced technology, South Korea and Beijing would bring into play each of their strong points. In this way, Asia and the Pacific Rim could become the largest and fastest growing area of the world economy, thus allowing the world to finally exit the present world crisis."