Economic Research

Note by Me: I agree with much of this information, except the promotion of nuclear power plants.

-By Me (Timothy)

Christian Info Bomb • View topic - Clear Channel (archive.org)

 The Austrian School Deception : Why the Austrian School of Economics would result in Global Genocide

PRELUDE

Currency - A means of EXCHANGE that represents the currency's underlying economy and it's ability to produce , transport and sell productive goods domestically and to other Nations.

"It must be stated, at this point in this report, that any actual collapse of the U.S. dollar would set off an immediate, global chain-reaction, sending the entire planet into a collapse from which, unless we act now to prevent this, civilization would not recover for a long time to come. Thus, there is no way in which a system which proposes to exclude the U.S. dollar, could survive even during the very short term. That is to emphasize, that if the U.S. dollar ceases to maintain approximate parity among the principal national economies within the world system, the collapse in value of the outstanding U.S.-denominated obligations, would plunge every part of the planet into a virtually immediate general breakdown-crisis, into a prolonged new dark age from which few among today’s national cultures, and only a relatively small minority of the population of the world would survive in the end....

....It must be stressed, as I shall make clear in the course of this report, that without the presumption that that mass of presently existing dollar-denominated debt is fungible, we have reached the point of a potential, global hyperinflationary explosion (or, simply a general collapse of the entirety of the present world system). That means that an immediate collapse of the perceived value of the dollar itself would trigger a general, and quasi-permanent, physical-economic, chain-reaction form of breakdown of every national economy of the world, that occurring in the modality of a more or less simultaneous implosion of the physical economy and culture of every people of the world..."

- Lyndon LaRouche A British, Malthusian Swindle: A NEW WORLD CURRENCY AS FRAUD

https://www.larouchepac.com/node/9861

We are currently in the worst economic breakdown crisis in the history of humanity, and a worrisome grassroots movement of people who have been utterly brainwashed by the Austrian School of Economics, which is nothing more then a cult because there is never any compromising with the followers of this school. If it isn't their way, it's wrong. The Austrian school has been equated with the only solution to provide what they euphemistically call "Free Markets" and this is a lie.

Due to this grassroots movement of brainwashed people , the issue must be raised that the Foundations of the Austrian School of Economics are 100% distortions, lies and trickery. The fact of the matter is, if Austrian methodology is imposed on the people of the world it will result in a massive and sudden drop in population levels and the return to what some would call, the Stone Age. The primary flaw in this school is that it does not take into account that a physical economy is primarily based on science and not mathematics. If you use mathematics for all economic theory, you are eliminating something called Dynamics. Dynamics can occur in population levels, events (wars, disasters) , or even orchestrated economic breakdowns such as the one we are currently witnessing. The Austrian response to what we are currently experiencing is, "This is a correction" - on the contrary, this is an Orchestration via the privatized issuance of money, designed to de-populate the planet. The Austrian Solution , allow the system to collapse and de-populate the planet.

In this thread, i will attack the primary foundations of the Austrian School thereby proving them to be falsehoods with factual information and thinking.

I. The GOLD STANDARD , Monetarism , and ignoring the importance of Productive Labor

Monetarism

A set of views based on the belief that inflation depends on how much money the government prints. It is closely associated with Milton Friedman, who argued, based on the Quantity Theory of Money, that the government should keep the money supply fairly steady, expanding it slightly each year mainly to allow for the natural growth of the economy.

Upon looking at this definition you can clearly see that "Expanding" the monetary supply "Slightly" each year for growth is essentially putting a CAP on economic expansion, and hence Living Standards and Population Levels. Monetarism, is what the British Empire used to control it's population since it's core was formed via the East India Company. You can also see that Milton Friedman's view of an economy certainly does not take Labor nor a Physical Economy (infrastructure) into account.

Contrary to these foolish myths, a currency is a MEANS OF EXCHANGE, and a currency's domestic value--although due in part to how much of it is in circulation (tripling the supply overnight would obviously deflate its value)--is due even more so to the wealth production (or lack thereof) that it represents when it initially comes into circulation; while a currency's international value is entirely dependent on a Nations ability to produce, transport and sell goods that other Nation States wish to purchase.

The underlying requirement for a Nation to produce, transport and sell goods is the Nations Infrastructure. Infrastructure is the Nations Physical Economy, and it is based on science. The greatest historic example of this proven fact is Abraham Lincoln's Intercontinental Railway, which was funded with the State Issued "Greenback" , a debt free currency directly issued into productive infrastructure. The Intercontinental Railway project not only created employment at a time when the Nation was essentially bankrupt, but after it's completion it did far more:

- It allowed a scientific progression from British Empire dominated NAVAL Trade Routes to a Sovereign mechanism to transport goods across the country.

- It connected population centers and businesses allowing them to transport their goods and far greater speed at far less cost

- Most of all, it gave the Greenback real value by providing labor and increasing the populations ability to produce and sell goods , and consiquently made the United States the industrial powerhouse of the world after it's completion

"Contrary to monetarist fetishes, the value and soundness of currency in the modern world are determined by the ability of a national economy to produce physical commodities that the rest of the world wants to buy." - Webster Tarpley

"Money has no intrinsic economic value, contrary to the opinions of such poor wretches as the marginal utilitarians.

Economic value is expressed in the form of a net increase, in an economy as a whole, of the potential relative population-density of the society...." - Lyndon LaRouche

Even Milton Friedman acknowledged that there is "no other proposition in economics that is as well established" as the proposition that "inflation" occurs only when the "quantity of money" -- even if it's fiat paper money not backed by a commodity or precious metal -- "rises appreciably more rapidly than [economic] output" (Free to Choose, p. 254)

But according to the backwards monetary theory of the Austrian School, the issuance of fiat paper money-–even if done free of debt and in proportion to economic output--is automatically inflationary, merely because it is “fiat” and not commodity-based. So the Austrian School insists that if we simply "stop printing" fiat money, let the market "correct" itself (read: let the economy collapse under the crippling weight of unpayable and ever-compounding interest debt), a mystical, God-like entity known as the "free market" will arise from the ashes of our destroyed economy and give birth a gold-based money system, and all will be well with the world.

The Austrian school would prefer "DEFLATION", which can be more destructive then Inflation as shown in nearly every Depression in United States history, including the Panic of 1837 which was caused by a Domestic Gold Standard. Regardless, there are OTHER solutions to the issue at hand then putting a CAP on Populations that will provide us with a sound currency.

As one can see by looking at the definition of Monetarism, which is obviously associated with Milton Friedman, it does not take Population Levels , Infrastructure or a Nations Productive Capacity into account. When Deflation occurs (A Contraction in money supply) to the extent of the Great Depression years 1929-1933 which was about a 30% Contraction, it strangles the Nations private sector for currency. When there is less currency, it is obviously harder to obtain currency, and when the population is growing and there is less currency it inevitably leads to unemployment, poverty and eventually death.

I am now going to highlight the major problems with instituting a Gold Standard, which would undoubtedly lead to genocide. Some of these are going to be hypothetical examples, regardless, realistic.

1.) First and foremost, there is not enough Gold in the entire world to facilitate the expanding population's need for currency and economic expansion. Rather then going into a plethora of writing, there are youtube clips available to explain this in an interview with Byron Dale :

http://www.youtube.com/watch?v=9E0UPBtmTb0 (part 1 of 3)

http://www.youtube.com/watch?v=Y9FWECWWN5o (part 2 of 3)

http://www.youtube.com/watch?v=aM7D3mnUSI0 (part 3 of 3)

After watching this clip, i am sure firstly, you will realize the Government has not created this mess, infact a Private Bank known as the Federal Reserve and it's entire private system that has created this mess. The FED's ability to bypass Congressional Appropriations and issue PRIVATE credit is the issue here, not the Government. Secondly, there is obviously NOT ENOUGH GOLD in the world to facilitate a planet of nearly 7 Billion (And Expanding) Human Beings!. The Video also highlights that you cannot put a VALUE on MONEY, but MONEY reflects the VALUE of the UNDERLYING ECONOMY, because the population is constantly EXPANDING and the Gold would inevitably have to be DE-VALUED to allow for population growth, which is the very thing the Austrian school Cultists scream about in any debate over monetary policy. The Video also highlights other absurdities of the Austrian School and the Gold Standard that require the Human Mind to address, as opposed to a utopian plethora of mathematical equations that allegedly prove the market will never make a mistake. Truth be told, the markets do make mistakes that are not correctable (at least not without needlessly destroying millions of lives in the process), specifically under systems where currency is issued by a Private Entity.

2.) With a Gold Standard implemented (As also highlighted in the above video) the Nation would be unable to provide the currency to build it's basic economic infrastructure. Without basic economic infrastructure, the private sector would be unable to function and the human race would return to the Stone Age, or go extinct. Basic Economic Infrastructure includes : Bridges, Roads, Railways, Transit, Water Treatment Plants, Power Plants etc...... As anyone who lives in the United States can see with their own eyes, the Nations Railways, Bridges, Roads, Energy Grids and the like are FALLING APART.

Now to take this particular issue a step further, without power plants, you cannot have factories or farms. Without Roads , Bridges and Transportation, you cannot have the transport (and hence the sale) of goods. So a Nations' underlying infrastructure reflects its ability to produce the goods that consumers not only within our own nation--but within other nations--wish to purchase.

Again, the best example to my knowledge of a Greenback system's economic infrastructure is Lincoln's Intercontinental Railway, which was built by spending currency into the economies infrastructure, though other Presidents have rebuilt the Nations Infrastructure with other monetary methods, the fundamental issue is the currency MUST be ISSUED into something that SPURS PRODUCTION, thereby attaching labor to it, if you will.

With a Gold Standard in place, Monetary policy is entirely dependent on Gold Production as opposed to Physical Economy Production in the form of Infrastructure.

Abraham Lincoln's Greenback System:

http://www.larouchepub.com/eiw/public/2 ... nbacks.pdf

3.) A Very important issue to address is DEFLATION, because this is what would wreck the economy before we even had a chance to de-value the Gold. Suppose you have outstanding debt in the form of a Mortgage, Student Loan, Credit Card Debt, Installment Loan, Commercial Loan etc.... One MUST take into account that enstating a Gold Standard would inevitably contract the amount of currency in an economy. While the value of each unit of currency would go up, the population levels would remain the same making it impossible to obtain currency to pay off these obligations. If a Gold Standard were instated now, it would likely take you multiple lifetimes to pay off a mortgage, or years to pay off minor credit card debt, you would ultimately become a slave to your creditors. (This is what William Jennings Bryan meant by “mankind” being “crucified” upon a “cross of gold.”)

A Gold Standard and resultant Deflation imposed by Andrew Jackson and Martin Van Buren is precisely what started the Civil War.What occurred is this, after introducing the Gold Currency the State issued notes disintegrated, leaving many people bankrupt. Following this, since Gold has absolutely nothing to do with the value of an economy, and you cannot put a value on currency (But a currency on a Value), a bubble formed. In 1837 as Martin Van Buren entered office and established Independent Treasuries to lend......, the bubble imploded resulting in massive deflation. This again, means it was far more difficult for people to obtain the currency they needed to conduct their daily economic affairs, and the economy consequently ground to a hault (destroying countless lives in the process.) As a result of this deflationary depression, brought on by the very precious metal-based money system that the Austrian School wishes to impose on us today. The Nation was De-Industrialized in the ensuing decades........ the South was hit harder then the North and became dependent on Slave Labour to produce goods due to lack of CURRENCY, which was at the time, Gold. When did this nightmare end? When Lincoln revived fiat paper money via the debt-free Greenback and thereby freed mankind (if only temporarily) from the “cross of gold.”

The same can be said for the Great Depression. In 1901 the Gold Standard was re-instated........ As we all know , in 1913 the Federal Reserve Act was passed into law. As the FED gained control over the monetary supply they created a Gold Denominated Bubble from 1921 to 1928. In 1929 the bubble was deliberately imploded, and over the 1929 through 1933 period the monetary supply contracted by 30%. This was DEFLATION, and it resulted in the systemic collapse of the United States Banking System by the time of Franklin Roosevelt’s inauguration in March 1933. People were unable to withdraw currency , cash checks and there were daily bank runs. This obviously resulted in massive poverty, breadlines and starvation as the system did not "Correct" Itself. (Although many Austrian Schoolers would perhaps maintain that it did “correct” itself, since, by 1932, the gold-backed Federal Reserve Note was 20% higher in value than it was in 1928. And according to Austrian School dogma, that means more than the fact that the level of employment was much lower in 1932 than in 1928.)

4.) Arguments equating a debt-based fiat money issued by a private central bank with debt-free fiat money issued by government to inflation are pure lies. Our Government currently has NO ABILITY to issue CREDIT, it is issued by a Private Bank called the Federal Reserve. The Greenback system provides debt-free currency in exchange for labor (as opposed to debt in exchange for “promises” of future labor). Without Labor, you can have no Capital , and thus no Capitalism. In other words without first producing something to sell, you have nothing from which to "capitalize"..... As the Greenbacks are spent into the economies basic infrastructure it directly represents the population levels and ability of the Nation to produce, transport and sell goods. A very simplistic example of this in regards to the basic infrastructure required for human survival is the amount of Water Treatment Facilities directly represent the amount of Water the population needs to consume for survival, or a decent standard of living.

- The Austrian argument that paper money is backed by nothing , is a complete distortion. Infact, if the Money is issued the same way the Greenbacks were issued, which is spending them into Infrastructure, it is backed with something far more valuable then a piece of metal (Gold). It is infact, backed by labor and the Infrastructure that labor has created, since it comes into circulation only when such labor has been expended in the production of infrastructure, just as monetized gold coins came into circulation only when the labor that produced gold bullion had been expended. (That's what it is to "monetize" wealth.)

II. The Government Must NEVER INTERVENE IN or REGULATE the Economy

This foolish myth from the Austrian School of Von Mises is based on the idea that the only way to have a stable market without tyranny is for the Government to remain 100% un-involved in it, that includes issuance of currency. The claim is, an invisible, mythical hand will swoop down and always correct any problems. This rumor is debunked at a later point in this essay. Contrary to this rumor, there are certain regulations (obviously , not all of them) that would very much benefit the Nation. I will go over a few of these regulations and debunk this notion that an Economy with no regulation is infallable and sound. In addition to the utopian "No Regulation" rule, United States history was never based on the Government staying completely out of the economy since our first President, George Washington, who was dedicated to infrastructure projects.

First and foremost, before even addressing types of regulations, the fact of the matter is De-Regulation is what created this crisis. This is a Derivative Crisis combined with a thermo-dynamic breakdown of our Nations Physical Economic Infrastructure or Physical Economy relative to the population density. For those that do not understand what is going on , A Derivative is a mass of Toxic Unpayable debt in the form of Many Mortgages slapped together and called a "Collaterized Debt Obligation" or a "Mortgage Backed Security". These masses of DEBT were created to the tune of atleast 1.5 Quadrillion Dollars (1500 Trillion) , with some newer estimates higher, and Stamped as Triple A "Assets" by regulators. The Derivative industry is 100% Private/Off Book, and was illegal from 1936 till the 1980's When Ronald Reagan legalized them. This overhanging debt is making it impossible for Commercial Banks to function , because all of the major Commercial Banks of the world are interlinked with Derivative Contracts. The important note here is, if Glass Steagalls Prohibition for Commercial/Deposit Taking Banks from Speculating was not repealed in 1999 under Bill Clinton, the Republican Congress and intense lobbying and lying by Larry Summers, this crisis would not be a Break down, but a fixable Depression. However, since Commercial Banks were allowed to engage in speculation - we now have a spider web of 1.5 Quadrillion or more dollars of worthless debt interlinking all major Commercial Banks and Major Insurance Companies. The Insurance Companies, such as the cash unit the criminals use to transfer money to banks AIG , engaged in insuring these Derivatives in the form of Credit Default Swaps (CDS) . When a speculator purchases a Credit Default Swap the Insurer has an obligation to pay a sum near the principle investment to the Speculator. So, in the case of Lehman Bros. , which had massive AIG (CDS) associated with that Investment House, Lehman was intentionally allowed to collapse and it caused a Chain Reaction which took out numerous other institutions including most important, AIG. AIG was Nationalized as a conduit for all bailout money to pay off speculators in the form of Credit Default Swaps - Insurance policies on nothing more than GAMBLING. So in the name of humanity, at least recognize this situation is UNCORRECTABLE unless these institutions with Derivative Exposure are put through Chapter 11 Bankruptcy Re-Organization to audit and freeze all speculative bets in the form of ANY Derivatives permanently to relieve the crushing debt that will eventually destroy the entire world economy.

-Let us start with the infamous Glass Steagall Act, passed by Franklin Roosevelt in 1933. This Act provided standards for Chartered Banks in the form of prohibiting them from Speculating with Depositor Money. Much of the bubble that was imploded in 1929 was a result of the then equivalent to Derivatives, "Options". Prior to this law, Banks that took Deposits were allowed to speculate with other peoples money!. The result of this Act passing and being signed into law was the forced splitting of Mega-Bank (Commercial Banks that were merged with Investment Houses) to isolate the "Option" crisis to Investment Houses and free the Commercial Banks of these debt burdens so they could continue to function. One notable result was the splitting of JP Morgan Bank into JP Morgan and Morgan Stanley. It this a damaging regulation?, to prevent Bankers from speculating with entrusted deposits from the population?. I surely do not think so, and as we all know, this crisis would not be here today if the above parts of that act were not repealed in 1999 which resulted in a 1.5 Quadrillion Dollar bubble of Derivatives and our current MELTDOWN. The Austrian's argue that if Fractional Reserve Banking were not allowed then this act would not be required. I do not see how this assumption is accurate considering if there were no regulations in the alleged Austrian Version of a "Free Market" , there would be nothing preventing the Bankers from taking Deposit money and doing it anyway, after all they are criminals. In addition, i see nothing wrong with setting standards for Commercial Banks, since the goal of a Commercial Bank is to provide credit to business and productive activities as opposed to being parasites. Another problem with this assumption is that using Gold as a currency has been proven to wreck economies , because there is no way to determine the value of the Gold without a relative currency, and it has no resemblence to the value of an actual currency (As shown in this paper) - The result of a Domestic Gold Standard was shown in the resulting Depression after the Panic of 1837 by the policies of Andrew Jackson and Martin Van Buren. So, as shown again, the idea that if an economy has absolutely no regulation , Gold or other commodity based standards will automatically be sound and correct itself is a utopian falsehood. This area of history is one completely ignored by Goldbugs - while they simoultaniously tout President Jackson as a Hero for "Defeating" the Central Bankers, when infact , the Second National Bank was not a Central Bank (But this is another issue) , and he did indeed wipe out much of the Nations wealth which lead to the Civil War about 25 years later.

-Take the ability for speculators.... like Nazi, George Soros to "Short" (or dump and drive down currency's) of third world nations, and recover the currency once it has drastically dropped to profiteer off of other human beings suffering. Exchange Rate Controls in the form of an International Gold Standard to Fix Exchange Rates would quickly solve this problem. In addition, it would stabilize international trade during times of duress (like now). The Bretton Woods System was an International Gold Standard, which anchored the dollar to Gold at 35$ an ounce thus fixing all exchange rates based on each nations Gold Reserves relative to the dollar. The Bretton Woods system worked just fine in regards to preventing currency speculation and stabilizing trade. Suppose for a minute, in our current economic breakdown crisis, one currency inflates and one deflates - would this not render it impossible to trade between these Nations?. The Austrian School opposes Exchange Rate Controls "That is Tyranny", On the contrary, the ability to have your currency destroyed by parasites is tyranny. This system was of course collapsed by Henry Kissinger under the Nixon Administration, not exactly a group of good people. Did they collapse the exchange rate controls to give you freedom or take it away?

-How about Coin Clipping? If we were to have a Domestic Gold Standard imposed on us , the ancient issue of people clipping small pieces of gold off each coin and smelting them into bullion would return , would it not?. With a paper currency, you can cut the bill in half and tape it back together and it still represents the value of the underlying physical economy.

- Bank "Redlining" is also a regulation i find would improve the population. "Redlining" is when a Bank intentionally does not lend or provide services in specific areas because they are either not as profitable, or they wish for this area to remain undeveloped.... If this is allowed to occur, the Bankers certainly have Free Markets, but what about the poverty stricken people who are unable to get lines of credit ?. This is Freedom similar to the Confederate Constitutions definition of what Freedom ought to be, without the General Welfare clause.

- Land Speculation is a very large , and ignored issue in the current economic system. Wealthy people with nefarious intentions buy up lots of land for the sole purpose of leaving them undeveloped. Exxon Mobile and Royal Dutch Shell purchase lots of oil field land and intentionally do not develop them to drive oil prices up.

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"How important is land speculation in today's economy? You be the judge. Here we see one of the aces that Donald Trump held during his financial slump of the 1990s: the old Penn Central rail yards, 52 acres on the west side of Manhattan. This photo actually appeared in a late 80s advertisement for the planned "Trump City." Trump held the site, looking just like this, for about fifteen years. Finally, after many rounds of taxpayer-funded offerings -- including the re-routing of the West Side Highway -- the site was developed, into upscale housing."

http://www.henrygeorge.org/bust.htm

American Tradition And Dirigisme

These days, the word dirgism is associated with "Socialism" for the very reason Von Mises associates any Government involvement in markets as "Socialism" , to mislead people into thinking Government is the enemy , when infact EMPIRE is the enemy and EMPIRE is Privatized.

http://en.wikipedia.org/wiki/Dirigisme

Dirigisme

....Most modern economies can be characterized as dirigiste to some degree - for instance, governmental action may be exercised through subsidizing research and developing new technologies, or through government procurement, especially military (i.e. a form of mixed economy).

Image

Many of the Founding Fathers of our Nation were Dirigists. This does not mean, they wished to control the entire economy, but it meant they wished for the Government to provide for the General Welfare of the population , which happens to appear as a clause numerous times in our Constitution. One of our most famous Founding Fathers, Benjamin Franklin, Founder of the Post Office , was a Dirigist. In addition, George Washington, Alexander Hamilton, John Quincy Adams, Henry Carey, Henry Clay , Abraham Lincoln , Franklin Roosevelt and John F. Kennedy were Dirigists, or followed a populist economic policy of mixing Government Services with Private Services. Without Kennedy's Space Program, we would not have developed modern computer technology. DARPA invented the Internet. These functions are now used by the Private Sector for commerce.

Many Austrians will scream "No! That is Socialism" , however this is clearly untrue, because Socialism is actually when the Government seizes the means of production, and dirigists welcome competition :

SOCIALISM

A broad set of economic theories of social organization advocating public or state ownership and administration of the means of production and distribution of goods

So, What was our Nation Founded Upon? Dirigism.

"The United States is blessed by the world's greatest tradition of economics, the American System of political and national economy. Contrary to monetarist mythology, the American System never had anything to do with free trade or free markets. It is a tradition of protectionism, mercantilism, and dirigism." - Webster Tarpley

http://american_almanac.tripod.com/earlyinf.htm

Sponsored by both George Washington and Benjamin Franklin, millwright James Rumsey worked on perfecting the steamboat while superintending the building of the Potomac Canal locks around Great Falls. The canal project was the most advanced engineering feat yet tried in America, and caused an excitement comparable to that when the Panama Canal was dug more than a century later. Before his two successful steamboat trials on the Potomac in 1787, Rumsey corresponded extensively with Washington on the uses to which the invention could be put.

http://74.125.95.132/search?q=cache:yXk ... clnk&gl=us

A postal pioneer, printer, writer, statesman, and diplomat, [Benjamin] Franklin also was renowned as a civic leader, scientist, and inventor. He helped establish a library, fire company, college, philosophical society, militia for civil defense, and hospital, and he helped improve streets and street lighting in the city of Philadelphia. His scientific contributions included a study of electricity and lightning, theories of heat absorption, and the measurement of the Gulf Stream, and he invented the lightning rod, bifocals, and the Franklin stove.

Was Benjamin Franklin a Socialist, or a Tyrant? No, I don't believe he was, in fact this Nation would not be here today if it weren't for Benjamin Franklin... How about Washington? Was his developement of canals and the Steam Boat Tyrannical? I don't think so.... The Functions of the Post Office alone destroy the myth that Government is incapable of servicing the population, last i checked it has been around since the 18th Century and still works just fine, even with UPS and Federal Express in competition. The ideals of Franklin highlight the emphasis on Science as a means to progress the population of the Nation and the Physical Economy. How about a Library? a Fire Department? A State Run College? ..... are these things that are taken for granted really tyranny like Von Mises claims?. I assure you, if the Fire Department was privatized, you would not be happy, and would likely have alot more houses burn down to ashes and a downturn in service in not so wealthy areas.

Lord Shellburne, Jeremy Bentham, John Locke , Adam Smith and the Invisible Hand

The Austrian School of 'Economics' (Or lack there of) claims if there is a distortion in the markets, given all conditions within their insane guidelines are met, a god like hand will swoop down from the heavens and correct the problem....... where did this idea come from?. It's The Late 18th Century and along came a spider named Adam Smith with accomplices such as Jeremy Bentham and John Locke. In the late 18th Century, these were the 3 British Stooges who had infiltraited our Nation in order to enact British "Free Market, Free Trade" policy. This was started with the ideals of Adam Smith's Invisible Hand Theory and John Locke's behavoiral economics (A Direct Agent of Lord Shellburne, Leader of the British Empires East India Company). Locke's behavoiral economics is based on one idea, that humans have no ideas. Human Beings are animals , and the only thing that must be taken into account in economics is "Pleasure and Pain". While there may be an invisible hand, when it makes massive corrections , the corrections correllate with the population levels (Meaning the population DIES to make the system viable, as opposed to making the system viable FOR THE POPULATION).

http://www.larouchepub.com/other/2003/3 ... _amer.html

Synarchy Against America

Lord Shelburne's English estate housed the agents of influence for those financier powers, literary justifiers of their dominion over men, script-writers for managed insurrection. And Shelburne maintained Continental bases for his allies and subversive agents within French-speaking Switzerland, Geneva and its environs, and inside France proper, as will be described below.

Shelburne assigned two projects to East India Company propagandist Adam Smith. First, to prepare the research outline for a study of the Roman Empire, needed to aid conceptually in erecting a new such pagan empire with London as its headquarters. (This assignment was later turned over to another East India Company researcher, Edward Gibbon, and completed as The Decline and Fall of the Roman Empire, which blamed the intrusion of Christianity, the religion of the weak, for the collapse of the mighty.)

Shelburne also commissioned Smith's work on an apologia for Free Trade. This, Smith completed in 1776 as The Wealth of Nations. He claimed that the power of an "invisible hand," and each man's pursuit of his selfish interest rather than anyone's desire to do good, causes economic well-being. (Wise men have since asked, is this invisible hand, financiers who rig stock bubbles, or Shelburnes who rig insurrections?) Smith warned Americans and Frenchmen not to dare the "artificial," government-promoted change from agrarian to industrial society; he attacked specifically the protectionist tradition of Jean Baptiste Colbert, finance minister for France's Louis XIV.

In the 1780s, Shelburne installed as his agent the Nero-imitating writer Jeremy Bentham, in an apartment at Bowood. Bentham had written with contempt in October 1776, against the defense of human rights in America's July 4, 1776 Declaration of Independence: "This they 'hold to be' a 'truth self-evident.' At the same time, to secure these rights they are satisfied that Government should be instituted. They see not ... that nothing that was ever called Government ever was or ever could be exercised but at the expense of one or another of those rights, that ... some one or other of those pretended unalienable rights is alienated ... In these tenets they have outdone the extravagance of all former fanatics."

Bentham was to write speeches, translated by the Genevan Etienne Dumont, which went by diplomatic pouch and through other means to Paris, to be spoken by the street leaders of the Jacobin Terror: Marat, Danton, and Robespierre.

In preparation for this work, Bentham wrote a 1785 essay defending "Paederasty," arguing that penalties against men's sex with children stem from society's "irrational antipathy" to pleasure, especially sexual pleasure; and a 1787 pamphlet, In Defense of Usury, attacking all restrictions on the lenders' right to take the highest interest rates they could get away with.

The Shelburne-Bentham collaboration from this period is reliably considered the beginning of the modern British Secret Intelligence Service....

III. The PHYSICAL ECONOMY and Infrastructure Deficit

"The current infrastructure deficit is around 5 Trillion Dollars, possibly more...." - Webster Tarpley

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As one can see, we are in a FAR WORSE situation then the Great Depression - and one could only hope for an FDR or Lincoln right now in light of what we face. You think Franklin Roosevelt instituted Socialism?, well - now you are going to get Fascism, and you aren't going to like it. For those who wish to scream endlessly about Gold Confiscation (Which at the time, was necessary to avert a complete economic collapse, and hence end of the Republic due to Gold Hoarding) and parrot lies from the Morgan/Mellon/Rockefeller controlled American Liberty League, an organization which was setup to derail the Presidency of Franklin Roosevelt (Which was defeated http://www.larouchepub.com/other/2006/3 ... _plot.html ). Now you have President Barack Obama, or whatever his real name is, and he is far from Franklin Roosevelt - infact , he is the opposite. Barack Obama is indeed implementing Austerity and Fascist policies to the tune of Adolf Hitler in his early years, so calling Obama a "Socialist" does nothing but provide him with cover and allow him to further carry the "Fascist football" down the field. Call him as you see him, Obama is not rebuilding anything and is infact, cutting all Social Services while simoultaniously bailing out the Derivative Monster Zombie Banks - This is Austerity and Corporatism (The Economics of Fascism) , not Socialism or anything near the likes of FDR. Anyone can see the difference between FDR and Obama, Roosevelt shut banks down and split them up (National Bank Holiday, Glass/Steagall Act) - Obama bails them out. Roosevelt expanded Social Services (Social Security, Food Stamp Act) , Obama plans to destroy them. http://www.larouchepac.com/health/ (Obama Adopts Hitler's Health Program)

I am not going to get into a detailed history of the New Deal in this paper, however distorted it has been on the Internet in recent years for the specific reason of getting people to bash it before even looking at what it accomplished.... even if you disagree with some of his policies, if anything it [The New Deal] proved the necessity of a Physical Economy to allow the private sector to function and strong Leadership during Economic Chaos, which we unfortunately do not have at the moment. The Tennesse Valley Authority and Reconstruction Finance Corporation are things worth looking into, two of many infrastructure lending conduits created by FDR , after putting the Federal Reserve System into bankruptcy and pressuring the board to keep interest rates at 1% or below to rebuild the outdated and collapsed infrastructure in the 1930's. The myth (Or deliberate lie) from the Austrian School that World War II Got us out of the Great Depression is one of the greatest lies (And acts of stupidity) ever told, infact , wars destroy economies by killing human beings and hence their jobs and diverting resources away from Infrastructure and into destroying the ENEMIES INFRASTRUCTURE (It is noteworthy that during any war, the first target is the Nations Economic Infrastructure, Remember Hitler's Blitzkreig?).

[note; to those who wish to derail this entire post into a Franklin Roosevelt bashing festival, do it elsewhere - this is about economics]

There are many serious problems we are currently facing , first and foremost an Infrastructure Deficit of mamoth proportions. The most important issue to address before continuing is:

WHAT IS A PHYSICAL ECONOMY?

A Physical Economy is a Nations Underlying Infrastructure, which allows trade , transport and commerce to occur. A Nations Economic Infrastructure, or "Physical Economy" are Scientific structures and innovations that spurr the Private Sector. It is important to note, that a Nations Economic Infrastructure directly reflects the needs of it's POPULATION LEVELS. Without a modernized infrastructure , The Nations economy will not function without a sudden and dramatic DROP in Population Levels to facilitate the Infrastructure Deficit. People neglect to even mention the word PHYSICAL ECONOMY when talking about economics, specifically so called 'Economists' from the Austrian School, and other lunatics from Princeton, Harvard, Yale and the like. WHY is this? Because they have either been Brainwashed or they are Malthusians (Population Reductionists). In our current situation, we have such a massive Infrastructure deficit that the entire Physical Economy is utterly falling apart. Our Railways are 50-100 years old, our bridges are literally FALLING DOWN!, we have a lack of Energy Output PER Population Density (CAPITA) which drives energy prices up (Thus driving the price of doing business up), Hospitals closing/falling apart , a Dwindling supply of CLEAN WATER and a general lack of modernized infrastructure required for any civilization to function with a decent standard of living. What drives all of these things? ENERGY in the form of POWER PLANTS.

http://www.larouchepub.com/other/2009/3 ... nergy.html

The Astounding High Cost of `Free' Energy

........Here in the United States, we have about 3 kilowatts of electrical generating capacity available per capita - much less than we need to be a truly productive economy, but still, something that most of the world comes nowhere near. Thus, we could say that every person in the United States, on average, has the work of 12 horses available to him every hour of the day and night, in the form of electricity.[1] Without electricity, the work of those silent horses must be done by men and women, laboring to turn pumps, to carry water on their heads, to spend a whole day scrubbing clothes, and another heating irons on a fire to press them, while such simple requirements as water and sewage treatment, refrigeration, and even the light bulb, go wanting. Such and worse remains the condition of a majority of the world's population - some 1.7 billion people who are entirely without electricity, and several billion more for whom the supply is intermittent and deficient.

China, for example, which produces a great part of the manufactured products consumed in the U.S.A., had only 0.3 kilowatts of generating capacity available per capita in 2005, which increased by 2008 to an estimated 0.5 kilowatts. Well over half of this electricity goes to power Chinese industry, the product of which is primarily exported. Thus, the amount available per person for use in China is less than 0.25 kilowatts, about one-third of a horsepower. Taken over the full 24 hours, we can say that the average person in China has available to him the work of 1 horse, compared to the 12 horses available in the United States. The source of most U.S. manufactured products is the low-wage labor of millions of Chinese, many of them from families with no access to even the electric light........

Advantage per unit weight of Uranium ...[4]

... over Wood: 11.5 million times

... over Coal: 3.0 million times[5]

... over Petroleum: 2.2 million times...

Nuclear for Fuel and Water

In many parts of the world, including some of extremely high population density, such as the east coast of India, the supply of clean water is running out. Ground wells are becoming contaminated as the fossil water supply within the ground becomes exhausted. Substantial regions of the United States, including Southern California and the American Southwest, are also reaching critical water supply limits. Producing drinking water by desalination of seawater is a proven process. Currently, 40 million cubic meters of water a day are produced by desalination, mostly in the Middle East and North Africa. The leading methods are reverse osmosis, using electric-powered pumps to force salt or brackish water through a specially designed membrane, and flash distillation. However, desalination is an energy-intensive process.

- What is Infrastructure? Infrastructure, as i have just mentioned , allows an economy to function. Infrastructure definitions can differ depending on your political views, however - there are certain things a civilization and economy need to function, and they are not mathematical equations, but Scientific Innovations that modernize and progress the human race, allowing the expansion of Economic Activity. Examples of Infrastructure can be seen in all of our Great Presidents list of Accomplishments starting with George Washingtons developement of Canals for transport, Benjaman Franklins scientific innovations / Post Office , John Quincy Adams & Abraham Lincolns planning for a Trans-Continental Railway (Which happened to make the United States the most powerful economy in the wolrd) , Franklin Roosevelts Hydro-Electric Dams, Schools, Hospitals, Roadways, Bridges , Eisenhowers Interstate Highway Program / Nasa, and finally John F. Kennedy's Space Program.

-What do all of these things have in common? They are Government Ventures (The Government exists to provide for the General Welfare of the population, as specified in numerous clauses in the Constitution, which are never mentioned by the Austrian School) That developed programs using Science , or the Human Mind to modernize the Nations Physical Economy thereby allowing for expansion. There are so many examples of Infrastructure Projects that have allowed population levels to expand and standards of living to go up that it would be impossible to list all of them, however it is easy to list the amount of large scale projects acheived since LBJ left office......... ZERO. Have the PRIVATE MARKETS taken up where the Government stopped in regards to developing the Nations Infrastructure? NO. A climbing 5 TRILLION DOLLAR Infrastructure Deficit is what we were left with after some 45+ years of Monetarism and Wild West parasitic predatory Capitalism..... Do you now understand WHY they waited till now to release the Swine Flu pandemic? Because over 1/3rd of the Nations Hospitals Per Capita have been SHUTDOWN.

I have heard arguments from Austrian 'School' preachers that a "Space Program" or "Water Treatment Plants" are a "WASTE OF MONEY" , or in a specific argument "NONSENSE". This is the fundamental flaw in so called, "Free Market" ideals. It is worthy to note that:

A) Without the Kennedy Space Program there is a good chance you would not have a modernized Computer to be reading this critique right now since almost all modern Computer Chip Technology was DERIVED from that program, in addition to thousands of other patents that ended up in the 'Free Markets' . Likewise, without DARPA inventing the Internet, you would not even be looking at this essay i have typed right now, and if you want to argue the 'Free Markets' would have invented it - I challenge YOU (Whoever you may be) to produce one successful LARGE SCALE INFRASTRUCTURE PROJECT that was developed initially by the PRIVATE SECTOR that benefited the entire population. I am still awaiting for this phenomena to occur because to my knowledge it has never happened.

B) Without basic things like Water Treatment Plants and Power Plants to run them, you would likely be starving or dead. Here is a picture of a Nation with no Physical Economy, or Economic Infrastructure, i don't believe the 'Free Markets' are assisting this poor human being obtain water at a reasonable cost.

Zimbabwe:

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- Examples Let's start with a basic example here. Suppose Columbus just arrived to the Americas and there is an economy with 2 Major Population Centers. There is no infrastructure and people are forced to barter locally. The distance from Population Center A and Population Center B is a 3 day journey by horse and carriage due to forestry and other blockages in the way of transport and the slow speed of the horse and carriage transportation method. How do you get the two population centers to begin trading with each other? BUILD A ROAD........ But the economy doesn't have enough "Money" to build a road...... What do you do?. The road would certainly INCREASE productivity and transport speeds, and hence commerce as a whole in our simplistic example of a new economy - how do we build it with no money?. The answer lies in the United States Constitution:

Article I Section 8 United States Constitution

Section 8. The Congress shall have power to lay and collect taxes, duties, imposts and excises, to pay the debts and provide for the common defense and general welfare of the United States; but all duties, imposts and excises shall be uniform throughout the United States;

To borrow money on the credit of the United States;

To regulate commerce with foreign nations, and among the several states, and with the Indian tribes;

To establish a uniform rule of naturalization, and uniform laws on the subject of bankruptcies throughout the United States;

To coin money, regulate the value thereof, and of foreign coin, and fix the standard of weights and measures;

To provide for the punishment of counterfeiting the securities and current coin of the United States;

To establish post offices and post roads;

To promote the progress of science and useful arts, by securing for limited times to authors and inventors the exclusive right to their respective writings and discoveries;

As one can see, by simply reading this excerpt of Article 1 Section 8 of the Constitution, One can tell the Founding Fathers were WELL aware that a Bankrupt Nation could not issue currency, so they gave us a clause that allowed us to do so for productive means. One can also see , even back in the late 18th Century the Founding Fathers were well aware of the need for Roads, Scientific developments, arts and discoveries. Therefore, the argument that it is "Unconstitutional" for the Government to issue currency without gold, build roads (And other infrastructure) , and promote scientific research is a FALSEHOOD. The piles upon piles of brainwashing falsehoods found in the Austrian School of Economics are really too long to address, but we can certainly address the important ones.

So why don't we take our simple two population center economy and make it a 50 population center economy. 50 Sovereign Nation States , separated by boarders and obstructions that wish to produce goods and trade with each other. In our more realistic economy we must set the population level higher for this example, and this is where the real Science of Economics is. What would allow the transportation of large quantities of goods around the 50 Sovereign Nation States, at a rapid speed and lower cost than a Horse and Carriage?. How about a Trans Continental Railway? I believe we've been through Abraham Lincoln's accomplishments in this field, however that was in the late 1800's. We are now in the 21st Century and we require a MODERNIZED version of the TransContinental Railway - that would be a TransContinental MAGNETIC LEVITATION RAILWAY. Mag-Lev Railways in Japan can achieve speeds of 350 Miles Per Hour and operate at a far LOWER COST. What better way to interlink a Union of 50 Sovereign States for the purposes of Trade and Transport then a Mag-Lev?. After reading the (Entire) following article, you will understand very well that a Mag-Lev has far too many advantages to be ignored as "NONSENSE" , the label of Austrian choice. So, would you like to commute 3 hours to and from work, or 30 minutes?. Would you like your companies products shipped 5X Faster and Cheaper? Or would you like to label the advancement of civilization "Nonsense".

http://www.redorbit.com/news/technology ... index.html

Japan's Maglev Train Sets World Speed Record

TOKYO (AP) -- A magnetically levitated Japanese train raced to a new record Tuesday, topping its own record set just last month.

The experimental maglev set the world's top speed for a train, clocking 361 mph in a test run in Yamanashi Prefecture (state), west of Tokyo, Central Japan Railway Co., which is carrying out the experiments, said in a statement

http://www.larouchepub.com/eiw/public/2 ... 55_737.pdf

excerpt;

Maglev: Transport Mode For the 21st Century

Maglev is a completely new mode of transport that will join the ship, the wheel, and the airplane as a mainstay in moving people and goods throughout the world. Maglev has unique advantages over these earlier modes of transport and will radically transform society and the world economy in the 21st Century. Compared to ships and wheeled vehicles—autos, trucks, and trains—it moves passengers and freight at much higher speed and lower cost, using less energy. Compared to airplanes, which travel at similar speeds, Maglev moves passengers and freight at much lower cost, and in much greater volume. In addition to its enormous impact on transport, Maglev will allow millions of human beings to travel into space, and can move vast amounts of water over long distances to eliminate droughts....

Why is Maglev important? There are four basic reasons. First, Maglev is a much better way to move people and

freight than by existing modes. It is cheaper, faster, not congested, and has a much longer service life. A Maglev guideway can transport tens of thousands of passengers per day along with thousands of piggyback trucks and automobiles. Maglev operating costs will be only 3 cents per passenger mile and 7 cents per ton mile, compared to 15 cents per passenger mile for airplanes, and 30 cents per ton mile for intercity trucks. Maglev guideways will last for 50 years or more with minimal maintenance, because there is no mechanical contact and wear, and because the vehicle loads are uniformly distributed, rather than concentrated at wheels. Similarly, Maglev vehicles will have much longer lifetimes than autos, trucks, and airplanes.

Second, Maglev is very energy efficient. Unlike autos, trucks, and airplanes, Maglev does not burn oil, but instead consumes electricity, which can be produced by coal-fired, nuclear, hydro, fusion, wind, or solar power plants (the most efficient source now being nuclear). At 300 miles per hour in the open atmosphere, Maglev consumes only 0.4 megajoules per passenger mile, compared to 4 megajoules per passenger mile of oil fuel for a 20-miles-per-gallon auto that carries 1.8 people (the national average) at 60 miles per hour (mph). At 150 mph in the atmosphere, Maglev consumes only 0.1 of a megajoule per passenger mile, which is just 2 percent of the energy consumption of a typical 60-mph auto. In low-pressure tunnels or tubes, like those proposed for Switzerland’s Metro system, energy consumption per passenger mile will shrink to the equivalent of 10,000 miles per gallon.......

- SO In this regard (Railways) , the options are clear

A) Status Quo, Resulting in the inevitable collapse of our railways (One of hundreds of major problems)

[Image too large to display. Click to view.]

-OR-

B) Modernize and Increase YOUR STANDARD OF LIVING

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What else spurs, or allows an Economy to function?

- Hospitals : As seen by the current Swine Flu Pandemic, a mutated strain of a virus can wipe an economy out. With modernized Hospitals that can facilitate the ENTIRE POPULATION, this mess would have been containable - even if it were intentionally released. However, since we have 30+% LESS Hospitals in the United States then we did in the aftermath of the Great Depression, we cannot contain a pandemic outbreak and it will likely kill many people. When people die, jobs disappear, when jobs disappear the economy plunges. I don't think further explanation of this is required, as it is common sense.

- Schools : So, how do people invent things?. With their MINDS. How do people develope their minds? EDUCATION. Does this mean the Government should run all aspects of education? No, but it does mean the Government should provide Public Schools (This area is in regards to College, not K-12) for the portion of the population that cannot afford a 40,000$ / Year Yale Degree. We no longer live in the 1700's , Austrians...... As times progress so does civilization - and i know you wish to to be caged in an 18th Century - No Technology , mindset...... but DO NOT IMPOSE THAT IDEAL ON THE REST OF US. The Governmnet "Building" a school does not dictate the curriculum of the teacher - the Department of Education does, so take it out on them. As we are now in an Economic Break-Down Crisis , it is required that people who cannot afford private schooling be educated for our workforce and the General Welfare of the Nation. That is not to say, the Government should dictate what is taught in all aspects or people should be FORCED to attend, however i see nothing wrong with providing affordable education services to those who WISH to receive them.

- Roads, Canals and Bridges : How do we Transport the goods we produce in order to sell them?. The Mag-Lev , as shown, would be very efficient. However, Local Transport and Naval Transport must also be taken into account. Our Roads and Bridges (Which are collapsing) are self explanatory. It is also obviously infeasable to build a Railway from the United States to Europe, i am sure you can use your minds on this subject to come up with numerous flaws in that idea..... so why are we not modernizing our Canals and Maritime transportation?. George Washington, our first President knew Canal Development was extremely important in the 18th Century - this remains a fact today. If you live on the water, you have a clear advantage at your disposal... that advantage is International Trade. Planes are not efficient for transporting large quantities of goods to other far away continents, however new Modern Boats are efficient in these regards. So, would a Mag-Lev that linked all major population centers and an updated way to transport goods to other Nations help the economy? Yes!.

In the 19th and 20th Century, Naval Technology was upgraded from Coal driven boats (in which people had to feed coal into many furnaces for the boat to propell itself) to Petrolium or oil, which eliminated the need for several dozen humans to constantly shovel coal into the boats furnace, increased speed and capacity......... Today we can do this again. By advancing from Petrolium (Fossil Fuels) to Nuclear or Other Scientific Advancements, we can do the same thing on the Ocean, that the Mag-Lev would do on Land. Although we are well aware "Global Warming" and "Climate Change" are hoaxes, this does not render an invention that would not rely on typical methods for power useless (Example):

http://news.softpedia.com/news/New-Carg ... 1183.shtml

Image

New Cargo Ships Float on Air, Not Water

- Waterways , Water Systems , Sewage Systems & Dams :

Dams

The nation has 82,642 dams recorded in the National Dam Inventory, serving purposes of flood control, navigation, hydroelectric power, irrigation, recreation, water supply, wildlife habitation, fire control, and other uses. The average age of these dams is 49 years, with tens of thousands of dams over 60 years old. Nearly 30% of dams are classified as hazardous - either high hazard (11,881) or significant hazard (13,549). The remainder, 57,194, are designated low hazard. The degree of hazard refers to the danger, especially threat of loss of life, to what is downstream. (A high-hazard dam can be one in decent condition, but at a site where there are many people residing downstream).

Of the 30,000 dams considered to be in some category of hazard, 3,000 are considered as actually unsafe. The "Report Card" of the American Society of Civil Engineers gives dam safety overall a "D," partially because of the lack of funding available to deal with these unsafe structures. In 2002, and estimate of $10 billion was given by the Association of Dam Safety Officials for what it would have taken then to rehabilitate the most critical high-hazard dams.

More than 70,000 dams are regulated by the dam safety officers of the 50 states. Various authorities have responsibility for the dams: Federal (3,382), state (4,189), local government (16,497), public utility (1,703), private (53,166), and some others. The Agriculture Department has 10,000 upper watershed dams. The U.S. Army Corps of Engineers' National Inventory of Dams is available at: www.tec.army.mil/NIDpublic

Of the dams tracked by the Association of State Dam Safety Officials, there are many causes of failure:

34% fail because of overtopping, from inadequate spillway design, debris blockage of spillways, or settlement of the dam crest.

30% fail because of foundation defects.

20% fail because of piping (internal erosion caused by seepage).

Seepage often occurs around hydraulic structures, from animal burrows, vegetation, cracks, and so on. See www.damsafety.org

Navigable Waterways

There are lock chambers in use that are over 80 years old. The backlog of Army Corps waterways work is well over $3 billion.

Water Supply, Sewage Treatment

The United States has 54,000 community water supply systems and 16,000 publicly owned sewage treatment operations. All these systems are aging and there is a huge repair and replacement deficit. In New York City, for example, there are water mains that are more than 150 years old, and they rupture with regularity.

There is also a need to provide new systems because of the 30 years of sprawl associated with real estate speculation, where housing has been located in areas with no central sewage infrastructure. In the former cornfields of suburban Washington, D.C., fecal bacteria counts in streams and run-off has reached the stage of a public health threat.

Replacing aging urban systems is going at a snail's pace. On July 16, 2007, the United States Conference of Mayors relased the results of a study conducted by the Mayors' Water Council that showed that 48% of American cities are on a water and sewer pipe replacement schedule of 20 to 100 years, and between 18% and 23% of cities are on a replacement schedule that will exceed 100 years. The estimated cost of overcoming the crisis, by making the repairs in the next 20 years, is in the range of minimally $300 to $500 billion.

A 2003 study by the Congressional Budget Office concluded that over a 20-year period it would require between $178 billion and $331 billion in pipe replacement costs alone.

The situation is urgent. The nation's capital is typical. The Washington Suburban Sanitary Commission, which maintains freshwater and sewer pipes for two counties outside the District of Columbia—Montgomery and Prince George counties in Maryland reported that during February 2007, there were a stunning 477 water main breaks at 16 per day. Sixty percent of the system's 5,300 miles of pipe is 30 years or older; another 25% is 50 years or older. With its current meager funding, the Washington Suburban Sanitary Commission will get around to replacing each mile of pipe only once in every 200 years!

IV. Forecasting, The United States system , Presidents and Leaders that utilized it.

Webster Tarpley , a well known Historian and Economist in the 9-11 Truth Movement , whom came from the Schiller Institute of Lyndon LaRouche (www.LaRouchePAC.com) wrote a short article that was circulated on the Internet last year, and the article happens to encompass alot of important information. Lyndon LaRouche has been warning of a progressive Economic Break-Down Crisis since the 1970's when Henry Kissinger and Richard Nixon dismantled the Bretton Woods System. LaRouche uses his "Triple Curve Forecast" to forecast Recessions, Depressions and Collapses, and has never been wrong. The reason he has never been wrong is because his forecasts rely on data in regards to Wealth, Infrastructure and Productivity PER POPULATION DENSITY as opposed to every other economist, whom rely on Statistics , which ignore Dynamics.

Example of Dynamics in an Economy (In regards to the U.S. Auto Industry creating 2-year life-span cars and using 36 month loans):

http://larouchepac.com/news/2009/01/24/ ... -2009.html

The Only Successful Economic Forecaster

"Then you look at the 1950s, where I began doing some consulting work then, and had a chance to come up with a forecast about a 1957 recession. Well, how did I do that? Because I knew what was going on. And I looked at the way that the industries were behaving, and that Arthur Burns' influence was working inside the administration of Eisenhower. And what was happening, is, I was able to forecast; I said, inevitably, this thing is coming down. I knew it from consulting.

Take the auto industry, which was one of the industries which I forecast was going to collapse and it did, in 1957, along with others. How did it collapse?

Well: They were trying to build up an expansion of automobile sales and production. So what they did, is they increased the life-span of automobiles being sold, and this went from 12 months to 24 months to 36 months, and 36 months with a balloon note at the end - a big note at the end, the last payment. And this happened, not only in the automobile industry, it happened in virtually every other aspect of that kind of industry. And so, I simply knew the calculations. I knew that physically, the physical values for which credit was outstanding, and paper credit, had nothing to back them up. So, I said, "Well, we're going to have a recession by February of 1957." We had a recession by 1957. - Lyndon LaRouche

End Wall Street bankers rule - End the derivatives depression

Webster Tarpley: End the Fed

By Webster G. Tarpley

The November 22 End the Fed rallies raise a vital issue: it is past time to abolish the unconstitutional, illegal, and failed institution known as the Federal Reserve System, the privately owned central bank which has been looting and wrecking the US economy for almost a hundred years. We must end a system where unelected, unaccountable cliques of bankers and financiers loyal to names like Morgan, Rockefeller, and Mellon set interest rates and money supply behind closed doors, leading to de-industrialization, mass impoverishment, and a world economic and financial depression of incalculable severity. The Fed helped cause the crash of 1929, did nothing to stop the banking panic of 1932-33, and is the main cause of the $1.5 QUADRILLION derivatives crisis which is devastating the world. The Federal Reserve System is Wall Street's murder weapon against the United States , and the Fed must be stopped.

The purpose of abolishing the Fed is to get re-industrialization, economic modernization, full employment, and rising standards of living for all the people. Contrary to monetarist fetishes, the value and soundness of currency in the modern world are determined by the ability of a national economy to produce physical commodities that the rest of the world wants to buy. The decline of the dollar has its roots in the wanton destruction of the US industrial base initiated by the Trilateral administration of Jimmy Carter and Feds boss Paul Adolph Volcker with his 22% prime rate. Over the past forty years, the US standard of living has declined by two thirds, and the country has become a post-industrial rubble field, a moonscape monument to the folly of a post-industrial service economy. If you want to go back to sound money, you must gear up modern industrial production so that the world will need dollars to buy goods manufactured in this country. No amount of gold will do the trick.

Gold has a critical role to play in a new international currency system, but returning to a gold coin standard would create the most ferocious deflation of all time. Got any credit card debt? If you do, a gold coin standard would make it infinitely harder to ever pay it off. You would be slaving for the rest of your life to pay off a $5,000 credit card balance, or less.

The United States is blessed by the world's greatest tradition of economics, the American System of political and national economy. Contrary to monetarist mythology, the American System never had anything to do with free trade or free markets. It is a tradition of protectionism, mercantilism, and dirigism. It starts with Governor Winthrop of Massachusetts Bay in the 1600s, who promoted industry and launched a sovereign currency. Benjamin Franklin, the founder of the post office, was another dirigist. George Washington was always devoted to infrastructure projects, and Alexander Hamilton created the First Bank of the United States, without which the new nation would have collapsed into poverty, chaos, and a return of British monetarist rule. The Second BUS was created by James Madison, again to ward off chaos. Henry Clay coined the term of The American System, and it meant a national bank, a protective tariff, and national infrastructure financed by the federal government. Daniel Webster tried to create a third BUS, and when he fell short the slide into slave power and civil war resulted. Friedrich List, Matthew Carey, Henry Carey, and Justin Morrill were American System economists who influenced or advised Lincoln. The rise of the US as the world's greatest industrial power came thanks to a protective tariff and a controlled currency, the greenbacks. When Wall Street imposed the Cross of Gold, the American System tradition was continued by the Populist Party. The New Deal, the fruit of mass struggles and the rise of the labor movement, provided a way out of the Herbert Hoover depression by forcing the Morgan-controlled Fed to knuckle under to the FDR presidency. JFK tried to revive the New Deal and break the power of the Fed, and was assassinated by the financiers with the help of the CIA.

Monetarists pretend that this history does not exist. Their hero is Andrew Jackson, whose hare-brained meddling caused the Panic of 1837 and shut down US economic development, putting the country firmly on course for the Civil War two decades later. When they talk about the constitution, monetarists seem to be working off the Confederate constitution of 1861, which eliminated the General Welfare clause, and ruled out a protective tariff. During the 19th century, the free trade party was the pro-British slavery party. Monetarist dogma is a mix of Herbert Hoover, Robert Taft (of the Skull & Bones family), Barry Goldwater, Ronald Reagan, and other reactionary Republicans. Monetarism is based on the von Hayek-von Mises Austrian school, which started when a bunch of rent-gouging Viennese landlords wanted to abolish rent control and hired some scribblers to prove that the market was always infallible and government is always the enemy. Von Hayek got his chance under the reactionary old battle axe Margaret Thatcher, who brought back rickets, scurvy and pellagra for British working people. The dumbed-down US version of the same doctrine is Milton Friedman and his Rockefeller-funded Chicago School, which got its big road test under the fascist Pinochet regime in Chile.

MONETARISM CAUSED TODAY'S WORLD ECONOMIC DEPRESSION

Today's depression has been caused by 40 years of monetarist-inspired deregulation. Derivatives were illegal from 1936 until Reagan legalized them in 1982. Then Wendy Gramm, Greenspan, Bob Rubin, and Larry Summers teamed up to start the derivatives bubble during the Clinton years. Now there are $1.5 quadrillion of derivatives strangling the world economy. Derivatives, not subprime mortgages, are the reason for today's crisis. Today's depression also comes from privatization like the privatization of Fannie Mae, which worked fine for thirty years as a government agency, but was then privatized, opening the door to the looting excesses which are now well known. The oil market is deregulated, and Goldman Sachs and Morgan Stanley were quick to exploit this situation. This past summer, when you were paying over $4 a gallon for gas, more than half of that was going directly to Wall Street hedge fund hyenas, with a full $1 per gallon for Goldman Sachs and Morgan Stanley alone, the backers of the deregulated offshore ICE exchange.

The real enemies of economic progress are the Wall Street bankers, financiers, and finance oligarchs. If you let them control the government, the results are catastrophic. We must therefore fight to take government out of the hands of the bankers. Any other strategy amounts to surrender to Obama and his fascist corporate state.

HOW TO END THE DEPRESSION WITH A RETURN TO THE AMERICAN SYSTEM

1. Wipe out derivatives, destroying the largest mass of fictitious capital the world has ever known. This includes credit default swaps, mortgage backed securities, structured investment vehicles, collateralized debt obligations, repo agreements, and other toxic paper. Outlaw hedge funds. Outlaw adjustable rate mortgages. Stop all foreclosures. Seize bankrupt banks, brokerages, and insurance companies and put them through debt triage under Chapter 11 bankruptcy proceedings. Re-establish the uptick rule against short sellers. Stop speculators with position limits and margin requirements for oil and other energy markets. Stop exporting jobs to third world sweatshops under NAFTA, CAFTA, and WTO.

2. Seize control of the Federal Reserve System and nationalize it as a bureau of the US Treasury. Decisions about money supply and interest rates must be made by public laws, passed by the House and the Senate and signed by the President. Re-start the US economy by issuing an initial tranche of $1 trillion in cheap 0.5% to 1% federal credit - federal lending, not spending - to state and local governments as well as to private companies engaged physical production. Production means infrastructure, manufacturing, mining, construction, farming, forestry, transportation, and commerce in tangible goods. Productive activities qualify for 1% or less federal credit. Gambling, narcotics, prostitution, financial speculation, speculation, and money laundering are not productive, so they must take their chances in the free market they claim to admire so much. A centerpiece of a recovery program would be the rebuilding of rail systems, water systems, electrical grids, and the interstate highways, all of which are approaching the point of physical breakdown. Nationalize the Big Three auto companies and reconvert them for mass transit.

3. We must keep Social Security, Medicare, Medicaid, unemployment insurance, food stamps, Head Start, WIC, and the remaining parts of the social safety net fully funded, since IRA/401k accounts and private insurance will increasingly be wiped out. Federal emergency relief on the model of FERA, CWA, and WPA will soon be needed. Any cuts in these programs will lead to death on a vast scale, especially among the old, the sick, and the very young. Monetarist ideologues who sneer at the nanny state should tell us where they stand when it comes to the very real threat of genocide against the American people.

4. Abolish the International Monetary Fund and the World Bank, and set up a new world monetary system based on full employment through the revival of industrial production.

- Notable American Presidents and Leaders whom used The American System to develope Infrastructure

1) George Washington (Canals, Roadways)

2) Benjamin Franklin (The Post Office, Library, College, Firehouse, Scienctific Advancements)

3) Alexander Hamilton (Assassinated by British Traitor Aarron Burr)

4) John Quincy Adams (Ideals of Railways, The Monroe Doctrine)

5) Abraham Lincoln and his Advisors (The Greenback, TransContinentral Railway, Agriculture - Assassinated)

6) James A. Garfield ( Lincoln Nationalist Republican - Assassinated)

7) William McKinley ( Lincoln Nationalist Republican - Assassinated, succeeded by British Traitor Teddy Roosevelt)

8 ) Franklin D. Roosevelt (Averted Complete Economic Collapse with New Deal [Roads, Bridges, Hydro-Electric Dams, Schools, Waterways, Canals....]- Attempted Assassination and Fascist Coup - succeeded by British Traitor Harry Truman, April 13th 1945)

9) Dwight Eisenhower ( Did not have control over his administration till the 57' Recession, Built Interstate Highway System to end Recession, largest roadway system since Rome - Specifically warned of Military Industrial Complex in fairwell address)

10) John F. Kennedy ( New Dealer, Space Program, Infrastructure - Assassinated)

You would have to be blind to not see a pattern emerge, yes - every time someone has attempted to develop and modernize the Nations Scientific Physical Economy they have been either Assassinated or, have had an Attempted Assassination, or even a Fascist Coup de Tat attempt. It is rather obvious that The British Empire, our Arch Nemesis since the Revolutionary War and the War of 1812 (In which they burned our Capital to the Ground) , do not want our Nation to be industrialized. It is also rather obvious that they embrace 'Free Market' , 'Free Trade' ideals, and every President who has implemented these ideals has literally wrecked the entire Nation in the footsteps of Adam Smith, Jeremy Bentham, John Locke and their puppeteer Lord Shellburne.

V. Conclusion

If one Austrian School of Economics follower were to read this entire critique/arguement , i am quite sure at the very least they would have questions about their own school of economics. Even while they question their own teachings, many will draw upon strawman arguments, the usual ones being "That's Socialism" , "Centralized Power" , "Government is the enemy" , "Regulation is the enemy" , "The Free markets would regulate themselves and build infrastructure"...... These arguments are nothing more then a poor, brainwashed individual , clinging to the Von Mises theories that he/she thought were the truth and cannot handle letting go. This is the precise reason why many concerned people now refer to the Austrian School as a Cult. A Cult of people who are unwilling to compromise, listen or think about any monetary reform other then that of Dr. Von Mises and/or Murray Rothbard.

If you are already beginning to question the Austrian School, Please try to imagine someone educated in Monetary Science listening to absurd arguments on a daily basis, that he/she knows will not work - attempting to highlight the errors and being attacked by a herd of Von Mises readers?. That is my situation, along with a few others on this Forum. We truly care about this Nation, and we know the Austrian School's foundations are 100% lies (Being the Utopian Self Regulating Market, The Insistence that Gold MUST be a Currency, The argument that monetary supply contractions are "meaningless" , the argument that Gold gives currency value as opposed to it's underlying economy, the argument that the Government is too "Stupid" to do anything). All of these arguments have been 100% DEBUNKED in this paper - yet i am positive this thread will get responses to very tune i have just mentioned, in the form of "The laws of supply and demand will determine everything" , or anything short of using Gold as a currency is "Robbery". If This were true, your FIAT dollars would not be able to purchase Gold, hence another strawman argument.

So before replying to this with an attack, i would suggest re-reading it , then re-reading it again. If you still don't understand it, you have every right in the world to cling to your Austrian Teachings - but know in your heart they are not going to work and should they be instated they will do nothing but ACCELERATE the World Wide Economic Collapse, a Collapse greater then the Lombard Banking Collapse of the 14th Century which was later dubbed "The New Dark Age" , in which 1/3rd of Europe was wiped out and the Bubonic Plague emerged.

This has happened before, and unfortunately History repeats itself, and many do not learn from History because they do not read it. They instead, prefer the easy way to learn history - by listening to someone else talk about it instead of researching it. Before demonizing a President, before screaming that word "Socialism" - THINK ABOUT WHAT YOU ARE SAYING, because you are INFLUENCING OTHERS to believe FALSE HISTORY.

To all that have taken the time to read this, i greatly appreciate it. If it intrigues you, do more research and educate others.

Links you may be interested in:

Monetary Reform Thread

http://forum.prisonplanet.com/index.php?topic=98465.0

Lyndon LaRouche - 7 Delusions of Economics - VIDEO

http://www.larouchepac.com/lpactv?nid=10051

VIDEO - Lyndon LaRouche Speaks at Central Connecticut State University - Keynote (Modern History & Economy) Very Importent!

http://www.larouchepac.com/lpactv?nid=10199

EIR (Executive Intelligence Review Magazine) - Massive amounts of information with a search engine.

http://www.larouchepub.com

The American Liberty League - An attempt to collapse the United States during the Great Depression

http://coat.ncf.ca/our_magazine/links/53/all-both.html

Against Oligarchy - HOW THE CITY OF LONDON CREATED THE GREAT DEPRESSION - Webster Tarpley (Detailed with sources)

http://www.tarpley.net/29crash.htm

Short Monetary History of the United States

http://www.monetary.org/briefusmonetaryhistory.htm

American Monetary Institute - A challenge to the Austrian School of Economics by Stephen Zarlenga (The Austrian School never responded to this essay)

http://monetary.org/refute.htm

The Federalist Papers - (Good to know what the authors of our Constitution were thinking isn't it?)

http://thomas.loc.gov/home/histdox/fedpapers.html

Essays on the roots of the British Empire and their constant warfare against the United States - Webster Tarpley

http://www.abjpress.com/tarpindx.html