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The Collapsed Economy Isn't Coming Back—Schiller Conference April 25-26 Charts a New Paradigm

April 21, 2020
Roughnecks on a drilling rig in Greely, CO use metal tongs weighing hundreds of pounds to make connections between 30’ sections of drill pipe. July 15, 2008 (Photo: National Institute for Occupational Safety and Health (NIOSH))
Roughnecks on a drilling rig in Greely, CO use metal tongs weighing hundreds of pounds to make connections between 30’ sections of drill pipe. July 15, 2008 (Photo: National Institute for Occupational Safety and Health (NIOSH))

Forget the technical talk about the meaning of a negative price for oil, the first such in history. It is just one signal—that the globalized, financialized, City of London-Wall Street economy in which most have lived their adult lives, and which has collapsed across trans-Atlantic nations at the imposition of public health quarantine measures, is not going to come back. The 50-year run of austerity for the sake of the benefits of free trade is over.

Those who now insist that they want to “restart this economy” will not be able to revive the shale oil industry. They will not soon revive the airline industry. They will not be able to revive the residential and commercial construction industry, or restart more than a part of the auto industry. More can be listed. The $5 trillion the Federal Reserve has printed and promised to Wall Street, the City of London, Frankfurt, Tokyo banks—that $5 trillion it is lending banks and hedge funds and private equity funds to bail out now-worthless assets like oil price derivatives—it is impossible that such hyperinflationary operations can co-exist with reviving an actual economy.

What if someone is talking about “reopening the economy” and yet saying nothing about the Fed’s stupendous $5 trillion Wall Street bailout? What if the same person is complaining about Congress voting $2 trillion—and not mentioning that large parts of that are going to back up the lending to Wall Street banks and funds? Then one is really hearing from Wall Street, one way or another.

To rebuild the economy takes a new paradigm, not from the speculation and globalization system of the last half-century. It is necessary to learn the plans of the late great economist Lyndon LaRouche. LaRouche rejected that system of globalization and austerity when the City of London created it by forcing the dollar off its gold-reserve basis in the early 1970s. He forecast that deeper and deeper austerity over decades would unleash pandemics.

The cause of this pandemic crisis is no country, no one leader, and no virus—it is the unpreparedness of the last 50 years’ casino-speculation system to save lives, or face great threats to human life of any kind.

LaRouche knew the economics responsible for Franklin Roosevelt’s and John F. Kennedy’s era of progress before this floating-rate casino of the Federal Reserve etc.

To get out of this collapse, the economy has to be “restarted” from that FDR-Kennedy capacity for progress, and let LaRouche’s Four Laws advance it. One of them, reinstating the Glass-Steagall Act to break up Wall Street’s and City of London’s banks, would immediately halt the $5 trillion Fed bailout. Another, Hamiltonian national banks in every nation, would provide the credit to start rebuilding. The rebuilding can start with an act of love: Building a new public health and hospital system through the underdeveloped nations of the world. This will save perhaps millions of lives from the COVID-19 now spreading there; but also so that we will not be completely unprepared again.

This weekend’s online conference of the Schiller Institute will rehearse the entire new paradigm, with leading speakers from the major nations which must cooperate to launch it. Go here to learn more.

                                                                                                                                                                                                                                                                                        

                                                                                                                                                                                                                                                                                        

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