A 4-point program to save the world economy

September 12, 2008

The following is a short report on verbal statements made by Lyndon LaRouche, after the state takeover of the two gigantic American mortgage institutions, better known as Freddi Mac and Fannie Mae, which account for about 50% of American mortgages. More details will appear soon.

Now, after the takeover of Freddie Mac and Fannie Mae, the actual breakdown of the financial system, which Lyndon LaRouche had forecast, has occurred. There is no possibility of returning to the financial systems existing prior to September 2008. Only a new design of a system echoing the intentions of Franklin Roosevelt at the 1944 Bretton Woods
conference could rescue the world's physical economy under present, post-August 2008 conditions.
 

To this end, Lyndon LaRouche outlined four necessary steps:
 

Step #1: Put the present international monetary system into
bankruptcy reorganization.
 

Step #2: Create a new system, a credit system, rather than a
monetary system, in the form of an appropriately modern version
of President Franklin Roosevelt's intention for a Bretton Woods
system
 

Step #3: Organize the new system on the basis of an extended
form of the 1648 Peace of Westphalia system, rather than a
conflict-system. The IMF must be replaced by a treaty
organization among participating sovereign nation-states with
complementary long-term economic missions of scientific and
related progress per-capita and per-square kilometer of
territory.
 

Step #4: Define a common, long-term mission-orientation of
two or more generations' span for increase of the productive
powers of labor among nations generally.

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