On the Subject of Economy: The Issue Is Humanity

On the Subject of Economy: The Issue Is Humanity

Lyndon LaRouche & John Hoefle

This question was posed at the webcast by a leader of the Stanford group of economists, who are studying LaRouche's economic teachings; she is also a former cabinet member.

(This is Part 2)

Part 1 is here:
http://www.hiddenmysteries.net/gltest/article.php?story=20100409201919829

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Monopoly Money
Hoefle: Well, the lesson of September 2008 bears that out. The idea that you had banks which had been declaring profits, quarter after quarter, year after year, getting richer and richer and richer! And suddenly! All of a sudden, it was revealed, that they were bankrupt. And, in fact, truth is: They hadn't been making any money at all, they'd just been cooking their books. They had the "markets"—quote/unquote—setting prices, which allowed them to maintain the fiction that this paper that they held had value.

LaRouche: It's like the board game of Monopoly, exactly, the board game of Monopoly, exactly!

Hoefle: Yeah!

LaRouche: Fictitious assets; you go into tremendous debt, similar to the board game of Monopoly, and somebody loses and somebody gains, and the guy who gains owns nothing. It's just paper money, it's just Monopoly money—and that's what this is!

Hoefle: Yeah. And now, they're turning to the government to try to bail them out. But that doesn't really solve the problem, because all you're doing is taking an amount of debt that's unpayable, and moving it from private pockets to the government pockets. And meanwhile the economy, the protective capability of the economy, which ultimately, has to pay off all this debt, is collapsing! So, nothing has been solved! It's only been made worse, and we have to throw this whole thing out, or we're all going down.

LaRouche: That's my basic point, here, is just exactly in that direction: There's a rationale to it, there's a science to it, which I've indicated what that is, briefly here, which I was not satisfied we had presented in this form on any other occasion earlier, so I decided to correct that error of omission, and get to the real subject of economy. And not try to butter up people, that some of our people would like to "influence," among influentials in society. I know the influentials in society; I'm influentially old, and therefore, I'm rich in knowledge of these kinds of matters, from just the acquisition of old age.

But, what we debate normally, even in our own organization, on economics, is absolute nonsense. It has no relationship to reality, and I'm declaring war on that stuff in our organization, at least, is going to cut out right now!

Hoefle: Asses are not really for kissing.

LaRouche: No. Unless it's a nice donkey.

Hoefle: Any final question?

Spannaus: It really did come to mind, when Lyn was saying, again, the Adam Smith point, that you've made over and over again: what the actual implications of that are. Because you hear it from people—I've heard it when I've been on the campaign trail, "Well, there's no way you can scientifically tell what investment leads to progress in the economy." Bunk! Because they don't believe in a principle, scientific principles that correspond to progress, so therefore, it has to be "everybody out for himself," to try to make something, to follow their passions, and so forth and so on.

But the fact that there are scientific principles, goes directly to the point of the reorganization of the economy that's required, toward the American System. Because the founders did believe that principle guided your economic system, as well as your private life. And many Americans have lost faith in that. And I shudder—one thing I hear, they're starting to teach "economics" in grade school? I mean? Good grief! We haven't seen the brainwashing quite so bad!

LaRouche: Well, they should call it, "Eat the Teacher."

Spannaus: Yeah, it could very well be, given the economic conditions.

LaRouche: The teachers sold the children the school, so they don't get eaten. "Go home, and eat your mother!"

Hoefle: All right, well, thank you Lyn.

LaRouche: Have fun!

Hoefle: And I suggest, that you watch the show several times. Because each time, you watch it, you'll pick up on something else. And this is really a subject worth studying. So thank you for tuning in, and watch this one frequently.

http://www.larouchepub.com/