LaRouche's Emergency Address to the Citizens of the U.S.A.

September 1, 2007 (LPAC)--The following statement, below, was recorded this morning by Physical Economist Lyndon LaRouche, to spell out precisely what must be done in the face of the biggest crash in modern history. Referring to the Homeowners and Bank Protection Act of 2007, which he has designed; what has become increasingly obvious, is that if we don't pass this legislation, there will be no protection against what will hit the nation soon.

What has been set forth is the only proposal that will succeed. There are no other options. What LaRouche has set forth, nothing more nor less, is what is required.

LaRouche's Address to the Union (MP3, 1.92Mbytes)

Transcript:

The Emergency Message to the Nation

Lyndon H. LaRouche, Jr.
September 1, 2007

This is Lyndon LaRouche speaking. We are faced with the greatest financial crisis, globally, which has been known to humanity in centuries. This goes far beyond the experience of the immediate period following the World War, such as the Great Depression of 1930s, but we can handle it.

The problem is, right now, that the President of the United States, the office which should have taken leadership in preparing to defend our nation against the most terrible depression in memory, which is now oncoming, requires us to take special measures, through other agencies, to protect the American people, and other things, until the time that we can get the kind of reform we need to get out of this.

Our immediate concern must be to save the United States from being destroyed, and that is really a possibility, by what is now oncoming. This is the greatest financial collapse, of a form similar to what happened in Germany in 1923, that we have known in living history of our time. In my time, as well as yours.

However, we can handle this problem. It requires mobilization of the Congress, to take an action which will create the equivalent of a firewall against the destruction of essential economy, and of the lives of our people. That can be done. It must be done by the Congress within the month of September.

There is a certain amount of receptiveness to the idea of doing something about this, growing and spreading within the Congress, and elsewhere. That's there.

I've produced a piece of proposed conception of legislation, which will do the job. I have proposed legislation by the Federal government, which will go into emergency implementation, which must be passed within the month of September, because the month of October is enormously dangerous: We dare not risk proposing anything beyond the early part of September. The action must occur by both Houses within September, as emergency legislation, with sufficient support from both Republicans and Democrats in those bodies, to create a bill which will resist a Presidential veto, a veto-proof bill.

If we do that, we may find a depression hitting us in October, which will be far worse than that of 1929-1933. But! If we protect our banks, even if they're bankrupt, and if we protect our homeowners, so none of them are evicted because of this crisis, then, in the month of October and later, we can clean up the mess, and start the process of a general recovery. We need to mobilize to do that.

Now, many people are coming up with so-called reforms and legislation. Most of what I've seen is absolutely worthless junk. The most stupid thing has come from the President of the United States himself, with his proposal. We're talking about millions of evictions coming down now.

Now, to understand this, you have to recognize that there has been a collapse, as most of you should have known by looking around you in your cities and towns, and so forth. Our industry and agriculture have been destroyed. Oh, we have some farming done and so forth, but we don't have many farmers left. Our people, as in the case of the collapse of the auto industry, we have lost the ability to produce not only products, but to produce a basis for a decent standard of living for the people in states such as Michigan, Ohio, Indiana, and so forth. And this is characteristic of what's happened around the world as a whole.

This is our problem.

We can fix this, but we must hold the line. We must have immediate emergency legislation--with no funny stuff, with no little simple reforms, with no gimmicks--of the type I've proposed. It must be enacted during the month of September. It must treated as emergency legislation, according it that kind of priority by both Houses of the Congress. It must produce veto-proof legislation from both Houses of the Congress. It must mobilize Democrats and Republicans, alike, without discrimination. No one is out to cut anyone else's throat; we're out to save the nation. And that's the way we must approach this. It must be done.

And you are essential in this. You must organize people to understand this. Forget all this nonsense. Don't try to come up with some complicated gimmick. Don't try to do a reform of housing. Don't try to adjust the mortgages. Do nothing of that sort. That is absolute foolishness under these present conditions.

The only other thing you might do, is get the ouster of the Vice President. We couldn't throw out the President and Vice President at the same time, and we don't want the Vice President to become the President. Therefore, we have to dump Cheney. That can be done, if enough Democrats and Republicans, especially their representatives in the Congress, decide to do that. It can be done. Let's do it. And let's get Cheney out, and proceed to the reform which I propose:

Which means that no householder, under Federal protection, will be evicted from their home, and that no bank, or chartered bank, whether a Federal bank or a state-chartered bank, will be closed down. That does mean also that there is no possibility of tolerating putting valuable resources to bail out any other irregular financial institution. The hedge funds must go. The sooner they're gone, the sooner they're bankrupted, they're eliminated, the better off we're all going to be.

Because we're going to have to rebuild this economy, including the physical economy. We're going to get back our industries. We're going to get back our agriculture, We're going to get back our infrastructure. We're going to get back dignity, and we're going to take our position of respected leadership among a community of nations in the world. And that's what we have to do.

No funny stuff, no tricks, no games. Back to basics. Think like FDR. Act immediately in the month of September. Get the Congress to pass this kind of legislation, which creates a firewall of protection of every essential chartered bank, chartered on the state or Federal level. No matter what their problems are financially, we're going to keep their doors open. And we're going to give them Federal protection.

We're going to give Federal protection to all householders, who are threatened with eviction. They're not going to be evicted. The states will help the Federal government do that. That is, the states will be the administrative arm, which locates the people who need the protection, and makes sure they're protected. But the states will act, through the Governor's office, on the basis of the support of Federal law. That's the way to do the job.

Don't go with the monkey-business. Forget the gimmicks. We're out to save the nation. If we have, in September, the kind of legislation I've proposed, enacted, as emergency legislation, then, we can protect the United States with a firewall against destruction. If we don't do that, we may find a situation beyond recall.

So, let's be patriots. Let's be neither Republicans nor Democrats at this moment. Let's be patriots--let's save our nation. Let's create a firewall to prevent the greatest depression that we've ever known.

LaRouche: "Biggest Economic Crash in Modern History Could Occur as Early as Mid-October, if Not Sooner"

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LaRouche's Homeowner and Bank Protection Act of 2007 needed immediately with No Amendments

Lyndon LaRouche announced yesterday that he will be recording a message to the American people on Saturday in which he will spell out precisely what must be done in the face of the biggest crash in modern history. Referring to the Homeowners and Bank Protection Act of 2007, which he has designed, LaRouche said that if we don't pass this legislation, there will be no protection against what will hit the nation soon. What he has set forth is the one and only program capable of addressing the crisis. No other proposals or amendments to his program will succeed. Any other agenda should be cancelled. With LaRouche's program, when the crash comes we will still be standing. When the storm ends homeowners and federal and state chartered banks will still be standing. There are no other options. What LaRouche has set forth, nothing more nor less, is what is required.

The biggest collapse in modern history will probably hit in September-October. The only hope is to create a firewall, so when the storm hits, chartered banks will be left standing and homeowners will still have their homes. We must deal with this issue first, otherwise there won't be any country. LaRouche has been proven right and others have been shown to have been wrong on the nature of the collapse. Therefore, what LaRouche has set forth has to be done now. Period.

LaRouche stressed that if you don't have a country standing with banks still there and people not evicted, then you can't save the country. October may be too late. If this legislation is in place in early September, we can get through. If not, hell will take you. The time for debate is over. No amendments. This is the only chance we have.

The issue today is to maintain the existence of the United States under these conditions and there is only one way--LaRouche's federal legislation. This legislation must be pushed ahead of all other legislation. It is very simple. This is the only thing that will ensure we have a nation. Anything else has no relevance to the real situation today.

Bush Lying About the Economy:

President George W. Bush stands with Secretary Alfonso Jackson, of the Department of Housing and Urban Development, and Secretary Henry Paulson Jr.,of the Department of Treasury, during a statement Friday, Aug. 31, 2007, in the Rose Garden regarding homeownership financing. Click on image to view the video.

The proposals made by Bush yesterday will only accelerate the collapse of the housing bubble. You can't reorganize the mortgage loans, because writing off debts means blowing out assets, in a reverse leverage chain reaction. LaRouche referred to Bush's press conference yesterday as a "depress" conference. Everyone walked away certain the country was doomed. Even lower forms of life such as journalists left depressed. The only thing which Bush said with which LaRouche could agree was when Bush said that government has a limited role. As LaRouche put it: He is right. Government under his leadership is limited. He is extremely backward. He is mentally sick, but also mentally disabled. His mental state is only less of a danger to the nation than Cheney. He is a stupid, foolish jerk, whereas Cheney, his controller, is evil.

People who know better but who nonetheless call for the impeachment of both Bush and Cheney are ducking the issue. The threat of war against Iran is based on the Revolution in Military Affairs initiated by the Middlebury Monster Felix Rohatyn and George P. Shultz. Moreover, given the nature of the financial and strategic crises the nation and the world are now facing, we cannot go through a replacement of the administration as a whole. We simply have to get rid of Cheney. To go after Bush and Cheney is to create a problem. Whereas by getting Cheney out, Bush can be neutralized. If Nancy Pelosi says no, tell her: "Tighten your screws. Your face is falling."

Bernanke's description of the ongoing collapse of the international financial system as a mere "episode" in his speech at Jackson Hole was laughable. As LaRouche put it, Bernanke is simple minded. He is probably in menopause. His comments were purely boola boola for the local fraternity.

Every day there are numerous "little stories" about the financial and economic carnage. On Friday, we learned that the Finance Minister of the German state of Saxony resigned in the context of the developments surrounding the collapse of the Saxon Landesbank. However, the little story is not the story, but rather a diversion from the real story, which is that we are in the process of a chain reaction collapse of the world system. As LaRouche emphasized this is not a Saxony crisis, but rather a global crisis.

The process described by Lyndon LaRouche's Triple Curve pedogogy is key, especially the second version of the curve, where in the rate of the rate of monetary growth exceeds that of the financial aggregates, as the rate of physical output declines. They are monetizing bullshit, turning fake assets into fake money.

Debt is being treated as an asset--one person's debt becomes another person's asset, which becomes the basis for the second person to take on debt, which becomes someone else's asset--the assets of the system are nothing but a leveraged chain of unpayable debts, which will detonate in a chain reaction. We're seeing grenade-level explosions now, with much bigger explosions to come.

This is a non-linear process, in which you cannot predict trends. You can only predict hypertrends: each time an asset collapses, it increases the rate of collapse of other assets, and accelerates the rate of collapse of the system as a whole.

This is a global collapse, centered in the Cayman Islands--it's the British system.

The only rational policy is to build firewalls to freeze and delay the collapse, to give us time to work things out. We don't give a damn about the fakers, let them go bankrupt.

You can not deal with this as a series of discrete problems, dealing with one at a time. It won't work.

Sachsen LB's Ormond Quay fund is an example. It was full of assets supported by credit guarantees, the assets were considered valuable but were actually worthless.

The rate of the collapse will increase hyperbolically,-- it will be gone by mid-October or earlier. If the system hits a big landmine, it will accelerate the process. The closer we get to the final blowout, the greater the amount of the unresolved debt.

Don't try to quantify this, because you can't; it is worthless, a system full of pieces of crap called assets. Give some functional examples of the process at work. Joe Blow defaults on his debt, which Bill Blow counted as an asset; so Bill Blow defaults, etc.

This is a gambling house. This is Galileo Galilei's specialty. He studied the mathematics of gambling, and created formulae of the laws of chance to help gamblers improve their odds.

Contained in: From Lyndon LaRouche