Policy Message:

Hyperinflation Now Strikes!

By Lyndon H. LaRouche, Jr.

Thursday, Noverber 8, 2012

The new, very grave danger about to strike the trans-Atlantic regions, now, since the U.S. Presidential campaign has now climaxed, is the immediate threat of hyper-inflation in both the U.S.A. and the Euro Zone of western and central Europe. For example, the prospect for both the Democratic and Republican U.S.A. parties, and for Europe under current policies, is a kind of austerity measures which, by their very nature, could have no different effect than the rocketing of an accelerating rate of hyper-inflation.

The crucial factor to be considered, on that account, at this moment, is the misguided tradition inherent in a gold-bug variety of monetarist's typically delusory presumption, that the issue of inflation is definable in terms of hard money per se. For example: for the cases of North America and all of western and central Europe, under the conditions existing in the trans-Atlantic region at this time, obviously the northern trans-Atlantic sector, the danger of a general Weimar-style hyper-inflationary surge is the relatively most immediate threat, for reason of that region's most significant global effects on the world at large.

At the point of the close of the recent U.S.A. national elections, this specific type of hyper-inflationary factor now being launched in both of the indicated trans-Atlantic sectors, remains the principal source tending toward a relatively immediate general breakdown-crisis.

There are, chiefly, three corrective measures needed for the exemplary case of the U.S. economy itself, but also the entirety of the northern trans-Altantic regions' economies.

1.) Immediate, sweeping installation and application of the precise re-enactment of President Franklin Roosevelt's Glass-Steagall measures.

2.) A physical-economic recovery program based on the establishment of a system of public credit.

3.) The initiation of long-term physical investment in basic physically productive economic infrastructure networks which promote high rates of increase of basic economic physical infrastructure, as this is typified by the example of a launching of the NAWAPA power-and-water program waiting to be launched inside the United States, Canada, and northern Mexico.

Such measures as the combination of those three will tend to have the most beneficial effects for mankind, per capita and per unit of spatial development.

Leading Factors

In seeking to mark out the combined factors of development for a global return to physical-economic growth and net productivity, per capita and per square kilometer, the increase of the energy-flux density is essential. This includes, with increasing prominence, the reliance on very high-energy-flux-density sources of power and productive intensity. This must take into account, the rising need for measures of defense against an increase of deadly threats to mankind on Earth from asteroids and comets. The success of the Mars landing of the Curiosity innovation, is to be counted as a contribution toward meeting the increasing need, for those on Earth, in defense of human life on Earth, those measures needed for reason of the potential which such defense-of-Earth programs are intended to provide.

The Important Thing Is the Effect

The frequent emphasis on cheap labor, as opposed to science-driven progress in the creative powers, and in their effect on human productivity per capita and per square kilometer of Earth's surface, must be dropped, and the latter must be revived: rapidly and extensively. The typical, required, net effect, is the accelerated increase of the energy-flux density per capita and per unit of the Earth's surface.

There is nothing strained, or strange in such a mandate. The distinction of the human mind, from that of the beasts and men-turned-into-slaves, is that mankind is the only species which has demonstrated an inherent capability of its only, voluntary development, and even the mere defense of the human population. Zero growth, if continued, were ultimately total death for our species.

In general, insofar as actual progress has occurred within and among nations, it is the science-driven increase of the inherent productive powers of society, per capita and per unit of territory, which supplies a needed rough measure of required orientations and accomplishments. That means, that, during the course of the next generation, both Earth and nearby Mars will be characterized—if our societies are sane—by the realization of the potential of thermonuclear-fusion applications among such locations as Earth, its Moon, and Mars.

While the role of mankind as a temporary or other inhabitant of Mars may remain uncertain for us presently, the fact is, that efficient reliance on the use of the speed of light as a communications system operating within nearby regions of the Solar system, presents us, here on Earth, with the option of increasing control over the processes located, for example, within the regions of the Solar system marked out from the vicinity beyond Mars, to the verge of Venus. This specific aspect of required progress is of increasing grave importance respecting the threats from asteroids and comets against human life and its very existence over the course of the successive decades of our century.

As war had been, sometimes, the driver of scientific-economic progress, so, the defense of the region betwixt Mars and Venus, and, beyond, must be recognized, without panic, of course, as a convenient measure of the rates of scientific-economic progress which mankind must achieve during the remaining successive generations of the human population during the remainder of this present century: Look up to the stars, as the world's leading astronauts had both warned and promised during the time of the launching and development of programs such as NASA.

At this moment, the very continued existence of the human species demands thinking in those directions which I have summarized here.