Stop Adapting to Scarcity: Create Resources by re-Adopting the American System!

By Christine Corey

In the previous installment [1], it was concluded that to adhere to a policy of austerity was not only insane but criminal, in that the welfare of the people is ultimately what is to be sacrificed.  Quebec’s new euthanasia legalization Bill 52 is now at the forefront as the next step towards further austerity in Canada, and is being promoted under the guise of “free choice” in taking control of how your life is to end. The truth of the matter is that you really don’t have a choice if there is nothing to support your life once you fall terminally ill. If there are no resources to offer such patients, who are faced with such a prognosis, the “choice” is either to die at home without any medical support or to accept to be euthanized.

It is claimed by the vast majority of politicians and financiers in the Western world that austerity is the remedy for all our economic woes. We are told that we just need to sit this through, as the crunch gets tighter and tighter, with the promise that a recovery will somehow miraculously happen at some point in the “not so distant” future. Are we to continue to wait, as our breath slowly leaves us, or are we to realize that there in fact exists a way out of this stranglehold?

The Past is not just History

It was discussed in the previous section that the solution to balancing the budget lies in a committed vision towards future development. But how do we work towards a productive economy based on a shared future vision of development? To answer this we must first look to the past. The fanatical obsession with balancing the budget is not a new problem, just like a monetary system based on usury and speculation is not a new phenomenon in history. These problems go back as far as the Babylonian and Roman Empires, whose engagement in such practices ultimately caused their collapse. A relatively more recent example is the Venetian Empire, whose bankruptcy led the entirety of Europe into the Dark Ages in the 14th century [2]. Never has a system of empire, based upon the oligarchical principle of looting, been able to evade this fatal fate because it is inherent to the very system of empire itself. Instead of perhaps admitting that this is probably not the best way to organize civilization, the oligarchy insists that the true culprit of the periodic collapse of civilizations is the world’s population size, tyrannically asserting that “no system can support a population beyond its fixed means” and thus populations must “check” themselves.

04_01_MalthusThis concept of limits to growth is not a new one, as its modern concoction goes as far back as its doomsday preachers Giammara Ortes and Thomas Malthus [3]. More recently, The Club of Rome [4] published its Limits to Growth in 1972, stressing the inevitability of limits to population growth when faced with limited resources. Such theories claim that were we not to check populations voluntarily, population sizes would check themselves involuntarily, through such horrors as famine, disease and war [5]. If you think 1972 is still pretty old and out of date, there was an updated version made in 1993 and again in 2004 by its writers, and always loyally sponsored by the powerful Club of Rome [see figure 1]. However, despite this fear of surpassing the “sustainable” world population limit which has stayed constant over centuries, reality has demonstrated just the opposite, in that the sustainable world population size has in fact been growing and growing, vastly exceeding the limits which Malthusian theorists absurdly preach to exist [see figure 2]. Why do you think that is? Looking at it from this approach allows us to see the reason for the contradiction in the Malthusian mind more clearly. The key to resolving this Malthusian paradox is to understand that there is in fact no limit to the size of a population, so long as you have revolutionary points of development towards higher energy sources, i.e. energy-flux densities [6].

04_02_Growth curves evil

A Return to the Principle of Physical Economy

Ok, but what does all this have to do with balancing the budget? The fallacy that most people believe in and what ultimately stops any real progress from happening, takes the form of a paradox. It is commonly believed that in order to invest in large and exciting nation building projects, a nation must first pay off its debt. However, a nation could not pay off its debt and at the same time maintain the general welfare of its people without a drive towards continual growth and development! This is the same line of reasoning that thinks when faced with the need to build large-scale development projects that traverse over many nations, such as NAWAPA XXI, the African Transaqua canal, the Middle Eastern Oasis Plan, the Bering Strait Tunnel and the New Silk Road [7], we must first attain world peace, or at least peace amongst all the nations involved, whereas the truth is that it is through development that we attain peace.

It is these very forms of development that are required in order to both balance the budget and attain peace. Peace will never happen amongst warring nations if there is no common goal and thus common gain to be made [8]. The basis for the science of physical economy [9] is that a nation’s debt can never be controlled without actual growth and an ever increasing capacity to sustain its people. This is also why the need to eliminate such a financial system, which destroys the physical growth potential while expanding the financial/speculative growth, is also necessary. Such a system could never manage a vision of the future since it is too busy grabbing everything in sight for a fast return, at the expense of anything real.

So what are we expected to use if not a monetarist system? Haven’t we always used a monetarist system? You may be surprised, but the answer is in fact no. It was once understood that the American credit system stood in opposition to this very system of empire and monetarism now dominating the world. Sadly this once well-known fact has largely been forgotten.

It is a curious thing how the idea of the origins of the United States as a republic has been shaped in people’s minds. How is it that several colonies of essentially farmers were not only able to defeat the British Empire during the American Revolution but were also able to organize themselves within a relatively short period into one of the most powerful nations in the world? After defeating the Brits the United States found itself in a situation of massive debt and serious underdevelopment such that the people could not be supported. So how did they get out of such a dire situation?

A credit system was founded by Alexander Hamilton, with the understanding that the growth that needed to happen was not something that should be blocked by the bankruptcy of the nation. Instead of thinking like monetarists, national credit was issued to development projects that were urgently needed, independent of the debt situation, and it was through this massive drive towards development of infrastructure that the United States quickly became a prosperous nation. Not only did this new nation build itself into a position where it could pay its debts, but it also constructed a new platform of development on a scale unheard of in human history, ultimately becoming a leader in science and technology, as exemplified by the 1876 Centennial Exhibition [10].

04_04_Evil vs Good

Coincidentally, the British Empire was also facing a debt crisis at the end of the American Revolution. However, their prescription was very different from the American experience, for they were to pay off their debt largely through slave labour in the opium and cotton fields of India, the textile industry in Britain, the selling of opium predominantly to China, and the slave labour plantation fields of the American South, run under the flagship of “free trade” pushed by the

British East India Company. Do not be fooled as to think this system so different from the concept of “cheap” labour, resource exportation and outsourcing nowadays. It is just wearing a different colored cloak and dagger.

04_05_The crash is now

The Solution

It is the hope of the writer that there are two very distinct opposing economic systems that are starting to form in the reader’s mind, and that every form of national government will need to play by the rules of one or the other, but never both. In our present British-Wall Street monetarist system, we have reached the point of linking the entire Trans-Atlantic world within one system of economy, managed by the same groups of people…a system of oligarchy. If almost every single country is either in a full blown economic crisis or very close to its brink, what are we to think about such a system? What are we to think if the elected officials within such a system respond to the last few decades of economic breakdown as though it were just a rough patch, and continue prescribing the same medicine, finding new ways to bet on further and further illusory objects [11], while simultaneously tightening the reigns of austerity? We are told by innumerable “experts” that the economy is only going through a temporary affliction, caused by overspending, and that if we only have faith a little longer, the medicine of austerity will eventually seep in and cure us of our malady. The truth is that the prescription is in fact not a slow cure, but a slow death.

With this uncomfortable admission comes the next. As discussed earlier, there are only two inherently different economic systems of government and they cannot coexist. Thus if our conclusion is correct, this would mean that there were no other option but to change the system entirely to the other now, before the speculative bubble collapses and takes entire nations down with it. This is of course, a very unsettling idea to many, for familiarity will often work against us even in the most oppressive conditions. However, the system that is being proposed here is the only system to have ever successfully opposed empire and produce real unbounded progress, not by managing ever diminishing resources, but by creating new resources!

Don’t Speculate on Reality!

04_06_Myth of Canadian BanksSo how is this to be achieved? First off, it’ll mean the end of Wall Street’s traitorous monopoly over America. This will be likened to what Franklin Roosevelt accomplished under the Pecora Commission [12] and Glass-Steagall Act [13], where only essential banking functions for the people and the investment towards the future will be tolerated and insolvency due to toxic gambling bets will no longer be paid for by its citizens pockets, even if this means the end of the likes of Merrill Lynch, HSBC, JP Morgan, and Goldman Sachs. It will mean the end of the Federal Reserve and its replacement by a real National Bank, which will play a vital role in emitting long-term credit with a vision for the future. In Canada, this will mean creating a real commercial banking system under a re-chartered Hamiltonian National Bank of Canada and bringing back the Four Pillars policy which was our own Glass-Steagall until its destruction in 1987 [14].

With these emergency banking reforms in place, funding can be unleashed towards such urgently needed programs as fourth generation liquid salt thorium fission reactors, and fusion in all its forms [15]. The advance to these higher energy flux-density power sources, in cooperation with other sovereign nations, will allow us to build desalination plants as a short-term solution to the water and food shortage with such projects as NAWAPA XXI in decades to follow. It will mean funding for the plasma torch [16], which has shown the very real capability of breaking down material into its elemental components for re-use, meaning landfills would now become a major resource! The list goes on and on. Most immediately, it will mean the Canadian component of the Bering Strait rail tunnel which both the Chinese and Russian governments have proposed linking the 2500 km gap between the Canadian and Alaskan rail grids [17].

The true difficulty in acquiring this new identity of a future vision will not lie in the actual transitioning to such a system, but in the people’s ability to overcome their fear and find the courage to demand that such a system be put in place. With a potential thermonuclear World War III looming on the horizon  [18] and a world financial blow-out before us, it is not difficult to see that that large ominous cloud before us is a New Dark Age. And thus we find ourselves at the crossroads, where we must now decide whether we will accept to continue towards such a dark fate demanded by empire… or build our own.

04_07_The future

End Notes

[1] Euthanasia Comes to Quebec by this author. See page 4

[2] For a full presentation on the financial collapse which ushered in the 14th century dark age, see the Lpac feature film The New Dark Age on www.larouchepac.com/node/11851

[3] Thomas Malthus was a British East India Company sponsored economist who asserted that since humans were no better than animals, all resources were absolutely fixed. Consequent to this assertion, so too were populations limited to resources creating the following genocidal logic: where agriculture grows arithmetically, human populations grow geometrically, and as such it is the responsibility of empire to regulate their populations’ growth. This logic, although entirely refuted by the turn of the century, was rehabilitated in the post-JFK era and is dominant throughout the environmentalist movement today.

[4] The Club of Rome is a neo-Malthusian organization set up by Italian industrialist Aurelio Peccei and Lord President of Britain’s Scientific Secretariat Alexander King. Its branches were first set up in America, Canada, Europe and Japan and began promoting systems analysis and global warming. In his 1993 edition to the Club’s First Global Revolution, Alexander King wrote: “The common enemy of humanity is man. In searching for a new enemy to unite us, we came up with the idea that pollution, the threat of global warming, water shortages, famine and the like would fit the bill. All these dangers are caused by human intervention, and it is only through changed attitudes and behaviour that they can be overcome. The real enemy then, is humanity itself.” p. 74

[5] In a 1981 interview with People magazine, leading Malthusian and co-founder (and President) of the World Wildlife Foundation for Nature, Prince Philip was quoted as saying: “Human population growth is probably the single most serious long-term threat to survival. We’re in for a major disaster if it isn’t curbed—not just for the natural world, but for the human world. The more people there are, the more resources they’ll consume, the more pollution they’ll create, the more fighting they will do. We have no option. If it isn’t controlled voluntarily, it will be controlled involuntarily by an increase in disease, starvation and war.”

[6] This concept of Energy Flux Density developed in its most advanced form by American economist Lyndon LaRouche is exemplified by the non-linear leaps from a society burning wood, to coal to petroleum to nuclear fission to fusion and on. Every leap allows for an increased power to support an increasing potential relative population density. For a concise elaboration on this concept, see the 5 min video: Energy Flux Density                              https://www.youtube.com/watch?v=XNXsLvJlwP0

[7] For a full video on the World Landbridge and projects stretching from Asia, to Europe to the Americas see The World Landbridge produced by the Schiller Institute in January 2010.                                                                   http://www.schiller-institut.de/worldlandbridge/

[8] As exemplified by the 1648 Peace of Westphalia. The Treaty of Westphalia was made possible by the great infrastructure projects unleashed after 1648, represented by Colbert and Cardinal Mazarin’s dirigist policies which directed state credit towards building the great canal systems and scientific academies which crossed many national boundaries, bringing former enemies into increasing harmony, with the commitment of a nation towards its own self-development as well as the development of others. See “A History of Water, Series 2, vol. 3, The Peace of Westphalia and the Water Question”, by Pierre Beaudry, 2011

[9] The term physical economy was originated by Lyndon LaRouche, in the regard that economy is not in fact a subject of “business”, where one learns how to obey and be subject to the invisible hand of the “free” financial markets, but is in reality a science that requires continuous development including the discoveries of higher forms of energy flux density reactions, such as nuclear fusion, in order to advance society. For further information, refer to “Economics as History: The Science of Physical Economy”, by Lyndon LaRouche, July 2009,

[10] This “American System of Political Economy” was the driver most notably, under Abraham Lincoln’s “greenback” credit policy, which allowed him to not only win the Civil War, but also accomplish such massive projects as the first Trans-Continental Railroad in the world stretching from the Atlantic to the Pacific which began in 1862 and was completed in 1869. It was this railroad that was used as a model for the Canadian continental rail system (1870-1885) and set the basis for the 1876 American centennial. See www.larouchepac.com/1932 for a full expose of the American System.

[11] We need only look at the growth of derivative markets over the past two decades to see first hand how this fictitious notion of wealth has infected society’s nominal leaders and economists. Amounting to only $2 trillion when Alan Greenspan normalized them in 1987, these “creative financial instruments” blew up to $70 trillion by 2000. By the time that Glass-Steagall had just been destroyed, and derivatives were deregulated that same year leading to a growth of $1.5 Quadrillion as of 2014. Keep in mind that the world GDP amounts to merely $70 Trillion. This is the hyperinflationary bubble that is ripe to explode now. See www.larouchepac.com/firewall for more.

[12] Refer to “Pecora Commission Targets Then and Now”, July 20, 2013 http://larouchepac.com/node/27424

[13] “Restore Glass-Steagall”  www.larouchepac.com/glass-steagall

[14] For a more concise overview of the take down of the Four Pillars see “Glass-Steagall of the North”, by Matthew Ehret-Kump, Canadian Patriot #1, Spring 2012 http://canadianpatriot.org/?page_id=166

[15] For a more detailed overview, see “Nuclear NAWAPA XXI: Gateway to the Fusion Economy”, 21st Century Science and Technology Special Report, 2013, http://larouchepac.com/files/NuclearNAWAPA-Full-Printed-shrunk_0.pdf

[16] See “Fusion Torch Can Create New Raw Materials”, Jan. 2014  http://larouchepac.com/node/14726

[17] See “A Railway from Canada to Alaska: Ready to be Built in 6 Years” by Fyodor Soloview, Oct. 25, 2012

[18] For a full exposition of the current threat of nuclear war, see www.larouchepac.com/ww3