solution” of choice across Europe, in agreement with the
The Collapse of Monetarism and
the Re-Discovery of Public Credit
by Matthew Ehret-Kump
An election now looms over the horizon in Canada. This is no
ordinary election however, as it is occurring during a historic moment
where the world economy has entered the eve of the greatest financial
meltdown in history. Unemployment across Canada and North America
has sky rocketed to Great Depression levels (1), and over 25 trillion
hyperinflationary dollars have been hysterically printed by the U.S
government over the past 12 months to keep the dying banking system
from melting down. As a population watches its vital services cut or
privatized to pay for these obscene bailouts, one can’t help but note that
the smell of revolution is in the air.
It is in this atmosphere that the stage has been set for
Canadians to show their true backbone (or find it for the first time), as
the question becomes; are we to engage in collective stupidity, in
watching another repeat of the media directed reality TV show known
as Federal Election Circus, or are we going to use our minds and say
“NO MORE”? The election sham has begun and neither side has said a
thing bearing on reality at this stage, and unless the population wakes
up very quickly and shakes off a serious case of mass amnesia to
demand that reality is addressed, reality will not be addressed
rationally, and we will find ourselves, and our children doomed to a
new type of global feudalism on a scale never seen before.
Michael Ignatieff the leader of the Liberal Party has made
Unemployment Insurance (E.I) his baby which he hopes to use as a
battering ram to topple the current Conservative Harper government.
Ignatieff has campaigned on the dysfunctional EI system (2) as a part
of his larger platform based upon the similar rhetoric used by the hope
and change president Obama of the U.S.A. Both have promised new
eras of prosperity for either nation by returning to the highest ideals of
mankind embodied in the great political reforms of Franklin Delano
Roosevelt’s New Deal. On closer inspection, these promises are as
truthful as the broken system they are a part. The only reason that either
one of these blatant liars has made it as far as they have, is for naught
but the simple lack of understanding on the part of the population as to
what Franklin Delano Roosevelt truly did in his terms in office from
1933 to his untimely death on April 12, 1945.
This report will focus on introducing the reader to certain
common popular mythologies in history, politics and especially
economics with the intent to see through the dense fog now lingering
annoyingly around the modern political process. It is highly advisable
that the reader not simply take the opinions contained here within by
the author as true, but to follow up on the footnotes and related material
contained on www.larouchepac.com and www.lymcanada.org
Roosevelt’s Fight
“"They (who) seek to establish systems of government based on the
regimentation of all human beings by a handful of individual rulers
call this a new order. It is not new and it is not order." - FDR 1941
When Franklin Roosevelt came to power in 1933, he had
entered a world not too dissimilar from our own. He met a world in
shambles after an unregulated market system came crashing down
under parasitical speculative bubbles, an insolvent unregulated banking
system, while universal fascism was being adopted as the “economic
wishes of British financiers and most Wall Street networks.
(3)
His mode of attack featured the greatest social safety
net ever seen in the form of the Social Security Act of 1935,
carrying with it old age insurance, aid to dependent children,
and unemployment insurance. Revolutionary, yes, but alone it
was less than useless. In fact, the social security reforms were
but one of 4 pillars which all supported equally the great
structure built upon them. The other three were:
1- Massive job creation through hard and soft
infrastructure development financed through public credit.
This credit was issued from the Reconstruction Finance
Corporation (RFC).
2- Banking Reform, and a return to Hamiltonian state
credit for public works, and other internal development
3- A war against Wall Street Predators resulting in
the greatest wave of government regulation ever seen and
achieved through the Pecora Commission which exposed Wall
Street’s Ponzi schemes (4), thus resulting in the creation SEC
(5) and Glass Steagal Act of 1933 (6) (to name a few)
Should any one pillar be removed, the structure of
the New Deal would collapse. Should any one pillar be built
without the other three, the support would never hold. Thus,
they could not be effected linearly, one after another, but
rather all together as one single dynamic thrust.
Through this genius, millions of productive jobs were
created bringing unemployment down from 12.9% in 1933 to
7% in 1937 (7). It is now estimated that for every productive
job created in infrastructure, a multiplier effect of 3-4 jobs
were generated in indirect employment and services. Thus
public funds were used to commission private enterprises to
construct great projects, the control and use of which was
ultimately in the hands of the government and for use by the
people… who were thus NOT to be taxed, tolled or extorted
otherwise for projects they paid for. Thus, while Roosevelt
used public funds to commission private enterprise to build
public works, his was not the PPP model now extolled so
highly by today’s elite… though Mussolini’s corporatist
model certainly was. (8)
In this scheme, not only was power to direct long
term development back in the hands of the people and their
elected government, but the very ideas of value and economy
were re-defined from the superficial world of market price,
towards the more truthful field of the human creative
potential. The dogmatic belief that economic progress was
driven by consumer spending gave way to the higher
understanding that consumption was driven by improvements
in technological and social progress. Or better understood by
FDR’s current representative and American physical
economist Lyndon LaRouche; The increase of the productive
powers of labour per capita and per sq km were the fruits of
the unlocking of the creative powers of the human mind in
changing the biosphere.
This is what Roosevelt understood to be the proper
study of statecraft and American System Political Economy.
And this process reverberated strongly during and after the
war through Canada, Europe and beyond, the effects of which
can be observed in Germany’s Kreditenstaldt Fur
Wiederaufbau and the Marshall Plan’s reconstruction of
Europe, or use of the National Bank of Canada in constructing many of
our greatest projects such as the St Laurence Seaway.
This misconception is fatal not simply because it renders your
ability to think critically impotent, but it also destroys the vital
knowledge of the difference between Public Private Partnerships, and
Rooseveltian Public Works. Today, through years of tragic mis-
education, corruption and media lies, the distinction is absolutely
blurred, while in the 1930s, this spelled the difference between
democracy and fascism. (9)
Today Michael Ignatieff promises to bring Canadians hope
and change, and he expects you not to ask questions such as “how does
he hope to do this?” Through the disastrous effects of globalization
imposed upon the world by the 1971 destruction of FDR’s Bretton
Woods System, nation states have been induced to systematically de-
construct their agricultural- industrial potential, all for immediate
speculative gains to the advantage of none but a small layer of financial
elite. National sovereignty has been bought and sacrificed at the altar of
Mammon (10), and Ignatieff, like Harper, properly observed from this
vantage point is but another ideological creature of this parasitical
system.(11)
What is the Alternative?
Lyndon LaRouche has uniquely called for certain emergency
measures by patriotic layers of all nations who see that this game has
finally come to an end, to act now. The international political
movements that bear his ideas have organized for emergency
legislation across the board to be adopted to meet the vital needs of the
world population now, or face a world wide collapse of 6.7 to 1-7
billion within the coming 2 generations. According to the writing of
many an oligarch sympathizer, including Barak Obama’s very own
science czar (12), this disgusting prospect is actually desirable.
In terms of concrete legislation, LaRouche’s Homeowners and
Bank Protection Act* must be passed now in the United States, to begin
a process of orderly bankruptcy re-organization. Similarly all nations
must begin processes in line with FDR’s Pecora Commission to audit
all of the major unlawful banking practices which have resulted in the
absolute insolvency of the international banking system. Following
such measure, an international New Bretton Woods Conference must be
convened in the immediate weeks ahead to set up a new just financial
architecture as envisioned by Franklin Roosevelt before his death for
post war development (13).
This is the great mission which Canada can participate in.
Although still a young nation, Canada can finally come of age as she
breaks out of the monarchical womb and finally develops her
sovereignty. Projects like the Bering Strait Land Bridge (proposed by
Russia in 2007), the North American Water and Power Alliance (14),
space exploration, Nuclear Power and Rail building await our change
of will. The spirit of an inspired people to accomplish the impossible
yearns continuously for its moment to burst forth from the domain of
potential into living actuality. This is the untapped potential of a
resource which never runs dry. And this is physical economics.
Footnotes:
(1) Exposed: Revealing Truths about Canada’s Recession, Armine
Yalnizyan, Apr 2009
(2) In 1991, 81% of unemployed qualified for EI, while by 2009, the
average has dropped to less that 40%.
-Uninsured, Why EI is failing working Ontarians, May 2009 Navjeet
Sidhu, Social Planning Ontario
(3) For more on the British Empire, Wall Street backing of European
fascism, see www.larouchepac.com/firewall, and
George Bush: The Unauthorized Biography, by Webster Tarplay and
Anton Chaitkin
(4) http://www.huffingtonpost.com/robert-kuttner/a-real-pecora-
commission_b_209572.html
(5) Security and Exchange (1934): set up to regulate and oversee the
securities markets
(6) Glass-Steagal regulation forced an absolute separation between
commercial banking from investment banking. Its repeal by Obama
economic advisor Larry Summers, while Treasury Secretary in 1999
allowed for the creation of the real estate bubble by Greenspan et all,
resulting in the current destruction of pensions, savings etc as seen in
Le Caisse de Depot’s $40 billion pension losses in early 2009. Losses
that never would have been possible under properly enforced Glass-
Steagal standards.
(7) Then and Now: Why Roosevelt’s Explosive 1933-45 Recovery
Worked, Richard Freeman, 2002. Published in Economics: The End
of a Delusion
(8) Mussolini Corporatism see LpacTV’s “What is Corporatism” by
Ed Hammler on larouchepac.com
(9) How Not to Build a Commuter Railroad, L. Wolfe
Executive Intelligence Review, Feb 2008
(10) Christian reference to the deification of Greed. “Lay not up for
yourselves treasures upon earth, where moth and rust doth corrupt,
and where thieves break through and steal: But lay up for yourselves
treasures in heaven, where neither moth nor rust doth corrupt, and
where thieves do not break through nor steal: For where your treasure
is, there will your heart be also. No one can serve two masters, for
either he will hate the one and love the other; or else he will be
devoted to one and despise the other. You can not serve both God and
Mammon.”
—Matthew 6:19-21,24
(11) Michael Ignatieff and the New Liberal Fascism by M.Ehret, Aug
2009, www.lymcanada.org/index.php/documents/39-assorted/126-
blank
(12) "Perhaps those agencies, combined with UNEP and the United
Nations population agencies, might eventually be developed into a
Planetary Regime, —sort of an international superagency for
population, resources, and environment. Such a comprehensive
Planetary Regime could control the development, administration,
conservation, and distribution of all natural resources, renewable or
nonrenewable, at least insofar as international implications exist.
Thus, the Regime could have the power to control pollution not only
in the atmosphere and oceans, but also in such freshwater bodies as
rivers and lakes that cross international boundaries or that discharge
into the oceans. The Regime might also be a logical central agency
for regulating all international trade, perhaps including assistance
from DCs to LDCs, and including all food on the international
market.”-John Holdrin, Ecoscience: Population, Resources,
Environment, 1977 p.942-943
*http://www.larouchepac.com/hbpa
(13) For more on FDR’s post war intention, see
www.larouchepac.com/1932
And “As He Saw It” by Elliot Roosevelt 1946
(14) NAWAPA-PLHINO: Future of the Americas Lpac Feature
http://www.larouchepac.com/node/9257