Question from China from September 8, 2009 Webcast


"And the first few questions, actually, come from China, from a major think tank in China, that has been following Lyn very closely. The question is prefaced by a request to forward to Lyn good wishes on his 88th [sic] birthday, and to wish him many happy returns of this day. The questioner notes that 8, as a number in China, symbolizes luck — and we are sure going to need it. [laughs]

"His question: "Mr. LaRouche, as you know, China holds more than $2 trillion in foreign currency. This has led to a great debate about the dollar as a reserve currency, etc., etc., but really, what I wish to ask you, is, if you think that such a practice, a practice of holding such a large sum of money in foreign currency, is a safe practice. And if not, what you would indicate as a more reliable option for nations."

"The greatest asset we should seek, at this moment of world history, is the establishment of a relationship among a group of sovereign nation-states, which can be considered keystone, sovereign nation-states, which represent sufficient power, to force the world as a whole to come to its senses. Now, what I've indicated, there are four nations, which are most obvious candidates for that: Our own United States, presumably, under a President Obama who has accepted my proposals, today. Otherwise, we got a problem. Secondly, Russia, which is not only a major Eurasian state, but which has the keystone in technology — not just in territory, but in technology — an historically developed technology, to develop the mineral resources of the tundra and related areas of Siberia and northern Russia. Because these resources are the richest resources now available — apart from what's in the ocean; the ocean's a basic source of all mineral resources, of mankind, today — but this is key, particularly in respect to China's proximity to Asia. Because South Asia, and Central Asia, such as China, requires a very large increase of the powers of productivity, of its population.

"The problem of China, today, with this sudden collapse of the U.S. and other markets which has occurred, is that there's a large part of the Chinese population and territory which has not been sufficiently developed, to have any sort of autonomy, in terms of its position in the world economy. And therefore, that has to be fixed.

"Despite the changes in government in Japan, the interest of Japan clearly remains, the technology of Japan and its participation in a role in respect to cooperation with China, in cooperation with Russia, and in that region. Because the development of Siberia, particularly of the Pacific section of Siberia, is very crucial for this entire area.

"So therefore, then, you have to have, the next largest nation in the world, India. China and India, and the United States and Russia: These four nations, not excluding others, represent a crucial combination of nation-states, which, if in cooperation, with this kind of intention that I've indicated, is the basis for a change in the world system. I think, without such cooperation, the possibility of saving the world from a new dark age, is highly questionable. The role of these nations is crucial, their cooperation, is crucial.

"We have to understand, of course, that there are differences in policy and culture among these nations. But that is not important. Because this is a part of the problem: We do not need a homogenized world. One of the great problems today, which I did not reference, but I think I should reference it here, is globalization.

"The reason for the danger we face today, is a process which was actually launched in 1968, but especially over the period, '68-'73, the process leading to globalization. We destroyed the functioning concept of the sovereign nation-state. Today, we ship production from nations which had high technology, into nations which do not have high technology, and use cheap labor, as the offset for the difference in productivity in those nations.

"Thus we destroyed the technological capability, of a higher-level, in the United States, Germany, and so forth, and shipped production into other parts of the world. The effect has been, that the idea of national economic security no longer exists on this planet at this time. Nations do not have any degree of self-sufficiency. We used to have a degree of self-sufficiency in basic food supplies, in basic industrial requirements, and so forth. We no longer have that, as a result of globalization.

"Worse! The policy of the international system today, has been to shift production from nations which do not consume that production, to nations which will not produce that, but will consume it. So therefore, the international monetarist money-men are able, thus, to control both nations, because they control the food supply of one and the industrial production of the other. That sort of thing.

"You no longer have sovereign nation-states in the economic sense. Therefore, for this reason, the collapse of the United States, or the internal collapse of China, because of this loss of employment which has recently occurred, will be sufficient to blow the whole planet up into a dark age! As a chain-reaction effect. There are no nations, which could survive a collapse of the U.S. economy today. The collapse of the U.S. economy would mean a total collapse of the world as a whole, in a chain-reaction effect, in a very short period of time. Hmm? And China is the leading target for this, right now. If the United States goes down, China goes down. If China goes down, Russia goes down. Europe goes down. South and Central America become a joke, but a bad joke.

"So therefore, if we do not end globalization, if we do not enter into a system of cooperation among sovereign nation-states, to end globalization, by reversing this process, then there's no chance of civilization on this planet, for generations still to come.

"The question of the $2 trillion debt to China, is exemplary of this. China has no external markets to make up for that! And if the credit of the United States is no good, then China has to eat those $2 trillion! And lose everything that goes with it. That sets off quite a time-bomb, inside the United States itself, as well as China, and the world as a whole.

"So therefore, we can no longer stand for globalization. Monsanto will give up this fake patent rights it has! No one will be allowed to patent a food. They didn't invent it, they can't patent it. Let Monsanto — get 'em out there: "Okay, Mr. Monsanto, you can have all the inorganic ingredients you want! You can not have any living thing in there. And I want you to show, that you can take these inorganic elements, and combine them in such a way, that suddenly you have produced grain, viable, living grain, that can hatch, and produce more grain. If you can't do that Mr. Monsanto, I think we have to consider your patent rights a fraud — and they're cancelled." [applause]

"This is the kind of problem we face.

"Now, what we have to do, to deal with this: We really have to have some competent economics in this: We need a 50-year contract, essentially, among the leading nations of the world, which will be a credit system, shared among the nations of the world. Each will have their own credit system, but we'll have them in a fixed-exchange-rate relationship. We will then make agreements between governments, which allow for investment in long-term cooperation.

"Now, take the case of China, which is the specific question here. China can not put its entire population, on the world market for export, today. It won't work! The market isn't there. The market has been destroyed — it was artificial anyway. What China requires, is a long-term capital development of its own internal technology. That means capital investments over a period of about 50 years—50 years, mean. So therefore, you have to have an international system, a fixed-exchange-rate system, based on long-term credit for these kinds of projects, which will enable China, for example, to develop its capabilities, to enter in with full partnership, and full equality on the world market, for its entire population — which is going to increase. And to maintain an increasing population on this planet today, requires a very rapid, and very aggressive bit of scientific and technological progress. So China must have a participation in that part of scientific and technological progress, which enables it to catch up, so to speak — for its whole population to catch up, to international standards. And within 50 years, that's about two generations, we can do that.

"So China requires a system of international credit, at reasonable rates — we're talking about 1.5 to 1% internationally, under agreements between sovereign nation-states, which have the purpose of ensuring that every nation-state is going to come to a point, 50 years from now, where the system is more or less in balance, as nation-states. And we have to eliminate globalization, to do that. No more globalization: Cancel it! Go back to the sovereign nation-state.

"China has to be a key part, precisely because China has this problem! And because China, at the same time, is a very important part of any international combination of change. Therefore the rights of China, the interests of China must be served, in any such agreement. Without such an agreement, there's no chance for the world as a whole: China, India, Russia, United States.

"Because Europe presently, has no function in the world scale, because the British have gobbled up Europe, with the euro. There is no sovereign nation between the Atlantic Ocean, and the Russia border, to speak of. Doesn't exist. They've all been gobbled up by the euro! And therefore, we have to restore sovereignty of nation-states in Europe, in order to qualify them, to be free to participate fully in this type of reorganization.

"In the meantime, in my view, the United States, Russia, China, and India: These are four nations which have differences in cultural outlook, differences in perspective, but have a common interest: to unite around the common interest as a sovereign nation-state, and to create a nucleus, to overpower the British Empire in the world. [applause.]"