LaRouche Replies to Query on Monetarism
March 17, 2012 • 8:00AM

The following was written in reply to a small business owner who wrote in after the March 10 simulcast to ask for a concise explanation of the nature of monetarism.

All monetarist systems are intrinsically imperial systems of oligarchism, simply by virtue of the fact that they are monetarist systems, as this is typified by the moral degeneration of the U.S. constitutional system by the swindle accomplished by the three [skunks]—British spy Aaron Burr, his understudy, Martin van Buren, and Andrew Jackson.

The original U.S. Federal Constitution was based on the principle of a Federal form of national public-credit system, rather than a monetarist system. The principle of Federal credit had come into existence in North America under the Seventeenth-century Massachusetts Bay Colony of the Winthrops and Mathers, a system which had been crushed by the agents of the New (Anglo-Dutch) Venetian party noted for its (and Descartes') orchestration of the Wars of Louis XIV. It was under the flag of that New Venetian Party, that William of Orange, an agent of that party, crushed the Massachusetts Bay Colony.

The establishment of the British empire-in-fact, was secured through the "Seven Years War" (1756-1763) which established the British Empire, an empire which has assimilated the British system through the instrument of Lord Shelburne's establishment of the British Foreign Office: pretty much the way in which today's British Empire has reached out ("The Euro system") to gobble up western and central continental Europe, and to seek to assimilate the United States (under Presidents George W. Bush, Jr. and British puppet Barack Obama).

Or, to sum up that point: All European and extended European empires since the original Roman Empire have been monetarist systems.

Benjamin Franklin had proposed the return to a credit system, like that of the Massachusetts Pine Tree Shilling, as a "modest principle" of a paper currency. Following the battlefield victory of the United States over the British empire, Franklin protege and young genius Alexander Hamiliton led in the creation of the U.S. Federal Constitution with the establishment of the replacement of a monetarist system by a national credit system. Since the virtual traitor and President Andrew Jackson had been used to terminate the U.S. Federal Credit System, the principle of the Constitution had been revived as the "paper money" principle of ("Greenbacks"), and other actions in that direction through President Franklin Roosevelt's Glass-Steagall Law (all traitors, swindlers, or simply fools) have sought to destroy the Glass Steagall Law ever since; those traitors, swindlers, or simply fools, have opposed the Glass-Steagall principle since.

Without a return to a Federal credit principle, not only the United States, but the entirety of the trans-Atlantic system were rotten-ripe for economic extinction.

The relevant principle, which all imperial systems of Europe and the trans-Atlantic systems since express, is essentially expressed in a monetarist system.

What Is Value?

The most simply efficient explanation of the principled reason for the collapse of extended monetarist systems is to be found in the famous "KT" extermination of the "dinosaurs," which were replaced by the vigorously progressive, subsequent emergence of the accelerated upward evolution of the already existent mammal, or becoming-mammal species. Ironically, all European and comparable monetarist systems are governed by the same kind of systemically fatal fault as the KT dinosaurs.

The immediate, most relevant expression of that fact, is the way in which the combined U.S.A. Obama Presidency, the British empire, and its subjects under the reign of the presently disintegrating "Euro" are being pushed into a presently most-threatening implicitly global extinction through a now-pending unleashing by the Anglo-American faction, of a virtually immediate mass-thermonuclear warfare between the trans-Atlantic and Eurasian major powers. The result, were this to be unleashed, would be a virtually global extinction phenomenon.

The issue of such warfare, based, inevitably, on mass thermonuclear bombardments, would be a virtual extermination phenomenon, and that soon. The underlying issue is a struggle to sustain some form of reign of a global monetarist system nominally centered in the British empire and the British monarchy's presently avowed commitment to reduction of the human population, from presently seven billions persons, to one billion.

The Credit System

True wealth is only physical wealth; the only true physical wealth is that created by the noe‰tic powers of the labors directed by the human mind. The extension of physical credit, as might be expressed in the loan of credit, which is specifically intended to increase the relative energy-flux density of the end-product of creative powers of the human personality per capita, not the pestilence of "free trade," is the only durable alternative, from which the founders of the United States acted to create the superior agency of a physical credit system, the goal which the British empire has struggled to crush the American system since William of Orange crushed the political-economic institutions of the Seventeenth-Century Massachusetts Bay entity, the system which Franklin and such of his associates as Hamilton had employed for the creation of the original Constitutional system of the United States.

A monetarist system remains always, essentially, a gambling system.