Healing Mankind of the disease
 of Economic Breakdown

Where empire rules, economic looting depletes the world, and collapse of society happens. 

The act of stealing from society, by monetarist looting, collapses the physical economy and leaves behind a poorer world (green). Individuals may seem to grow rich in this process of thievery, as the stolen resources pile up in portfolios and unproductive 'wealth' (red). But this is an illusion. The above illustration has been pioneered by the American scientist and economist Lyndon H. LaRouche in 1995 and has been updated shortly thereafter when the money supply was pushed up faster than the financial aggregates grew that the increased money printing was required to support. The triple curve appears in many places on the LPAC website, especially in the campaign section for a New Global Credit System. For the sake of representative simplicity, I have combined the two upper curves, the money supply and the financial aggregates, since they are largely identical in nature in a pure monetarist system as is operating in the world at the present time.

The result is that the difference between the two curves (red and green) becomes clearly apparent as representing the extent of society's illusion, because the value of the financial aggregates, -- the paper portfolios, stocks, bonds, pension plans, etc, (red) -- can never be greater in real terms than the value of the productive physical economy that they represent. When nothing is produced, then all the stocks and bonds, no matter how huge they are in monetarist terms. have the equivalent value of zero. The combined shaded areas represent the effective delusion of monetarism. The illustration represents not a principle. Monetarism has no principle, because its nature is insanity, and insanity has no principle. Monetarism an aggregate of constantly changing lies, deceptions, fraud, and outright fascist thievery, but these do have a common outcome in destructive consequences. 

Monetarism may not have a universal principle to stand on, but it has a universally recognizable effect, which is the inevitable effect of a lack of principle. This effect is represented by the lower shaded portion (the slightly lighter shade). It represents the growing effective austerity resulting from monetarism, the effective deficit in civilization. It represents the stolen living of society. It represents the amount of the lost physical production and real wealth of society, which society once had, but no longer has. 

We are now near the termination point where monetarism is no longer sustainable by any trick of fascist force that can be applied, such as by the empire-demanded healthcare denial and the eradication of what is left of the nation's social support structures, in order to keep the illusion alive that the monetarist system is viable, which it has never been. It is self-evident therefore, from the above curves, that the collapse of society's physical living, which already operates at a huge deficit, cannot be healed by imposing still greater austerity that increases the deficit and destroys further what is left of society's productive capacity. LaRouche has made it amply clear that one cannot heal the nation by destroying it further. 

Of course, the masters of empire cannot accept reality, much less the healing of the nations. The healing would put an end to the monetarist system that supplies their opulent living through stealing. Thus, the masters conceal the illusion that the monetarist system is already dead. They are pursuing this course with the 'printing' of evermore money (the blue curve in the topmost illustration). However, since the money does not flow into the physical economy, which is the only component in the entire value system that is real, as the result of it, the physical component, the real component, keeps on collapsing further, which hyper-inflates the illusion further that something that stands apart from the physical reality can have any intrinsic value.

In July 2007 the illusion began to collapse. The financial instruments could no longer be sold at face value, much less at an inflated value for gaining profit. At this point the bailout process began. More and more money was printed to paper over the losses of the by-then dead paper. But this was a futile process. A system that has no principle, but acts against universal principle, cannot heal itself. Society's dying physical economy, and its physical living, can only be healed by resorting to the universal principle of economy.

The universal principle of economy is fundamentally the national credit system where money is issued exclusively for physical production, whereby money gains a value that is defined by the achieved physical production. In a credit system, the uttered credit money has no intrinsic vale. It is essentially a promissory note, a commitment by society to itself, to do something, to create something of value. If this commitment is not carried through, the credit money has no greater value than the pulp of the paper it is printed on. Uttering credit is a commitment by society to itself. If the commitment is true, great things of value will be created, which the credit money will then represent. They key in this system is the intention and determination to carry it out. This system has a powerful principle standing behind it that cannot be mocked or side-stepped without a loss of its benefits. On this principle economics is a simple process.

There is nothing miraculous going on in a real, principle-oriented economy. The exponentially progressive curve that is typical for a principle-oriented economy reflects the dynamic nature of scientific and technological progress that increases the productive effectiveness of the human being by increasing the power of human labor. In this context,  the credit-investment in physical production also includes investment in education, housing, science, culture, healthcare, food production, and so on. The human being is the only real productive engine a society has. It is its greatest asset. This asset needs to be protected. It needs to be nurtured. Its potential needs to be developed to that its power can become increasingly utilized. For this efficient transportation systems need to be created, and evermore powerful power infrastructures.

Unfortunately, none of this is presently happening anywhere in the world. In the Americas, especially in the USA, society is now at the point at which the money curve has been pumped up into the stratosphere with tens of trillions in 'printed' money infusions (built on apocalyptic scare tactics), while the financial-aggregates curve (red in the illustration below), that is supposed to be healed thereby, is actually collapsing in spite of the bailouts (above $35 trillion), that are flooded into the monetarist system in response to apocalyptic scare tactics. Sure, a few millionaires and billionaires profit from the apocalyptic (too big to fail) commotion, but the real physical economy, on which people's living depends, gets not a penny of the new money that is flooded into the monetarist system,  whereby the physical economy keeps on dying. Jobs are lost in the USA at a rate of more than half a million a month, with homes becoming lost to foreclosure eviction, etc, at a rate exceeding 6000 a day. We are already far past the point where nothing works anymore. All the state governments are bankrupt, which are now followed in lock-step by entire nations dropping into the sovereign-default trap, such as Dubai, Spain, Greece, Iceland, with many more lining up to follow suit. 

LaRouche uses his Triple Curve graphic, shown above, to demonstrate how he was able to forecast the present collapse of the globalized monetarist system, which is now reaching a critical point of instability. LaRouche is proposing a non-monetarist credit system as the basis for a new economic system to replace the bankrupt IMF. This is the only way to avoid a world-wide economic collapse.

Upon LaRouche's long-time urging, China has finally decided that the monetarist game does not really work. As LaRouche has explained like a broken record, that wealth must be created in physical production that benefits and uplifts society and enhances its productive and creative capacity, China has acted accordingly in a small step towards the national credit principle and devoted its dollar holding as backing for credit this specifically directed towards the rapid development of the north-eastern region of the Eurasian continent, where vast natural resources exist. China has thereby created itself money credits that are tied to physical production, which pulls the physical production up behind it, whereby its credit-created money gains value. 

The illustration below represents a well-functioning economy. China converted its otherwise useless financial aggregates into a credit money supply. In a normal economy, this (monetarist) backing up of credit isn't be necessary, since the physical production provides the substance that gives the credit money its value. In a normal economy, the credit, under a national credit system, is simply uttered by the nation to itself, for its self-development, in acknowledgement of its productive potential. In a normal economy, which the world has not seen for a long time, the actual measurement of economic value is not counted in money, but is counted in the result of the productive process. After all, the physical production (the shaded area below) is the substance that supports human living.

As the process is moving forward, the red and green curves tend to cross over. This happens naturally when the value of the physical production vastly supercedes the value of the credit input, producing in this process enormous wealth for society as a whole, with a progression that has no limit and no built-in instability, The resulting curve below represents the functioning of this renaissance as illustrated by Lyndon LaRouche.

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However, a renaissance cannot be stamped out of the ground. Its operating principle needs to be understood, be acknowledged in deeds and profound commitments, and then be applied without looking back to ties to the past. China has begun to move on this path. Russia is cooperating, India is interesting in becoming a part of it. The USA, unfortunately, as a devoted puppet of empire, has imprisoned itself into a self-terminating economy that is represented by the triple curve that represents the operation of empire (the topmost curve). But the natural trend, the intelligent trend is towards cooperative, global, economic development, that America's Lyndon LaRouche has set in motion far from empire, centered in the Pacific, building towards a four-power cooperative development platform, made up of sovereign nation states, starting with China, Russia, India, waiting for the USA to follow soon, built on the globally implemented, national credit system, represented by the dual curve.

by LPAC

The healing that is needed for society as a whole, is to let go of the disease of empire and its monetarism that is represented by the triple curve and to reacquaint itself with the real nature of civilization that rests on the opposite platform of the infinite 'Dual Curve' published by Lyndon LaRouche, but which is actually nothing new as it represents in essence the historic American System of Political Economy, the system championed by Hamilton, Lincoln, Carey, and so on, and of Franklin Delanor Roosevelt to some degree. This system needs to be learned again, and this learning involves the unlearning of everything that relates to empire.

The dynamics involved is illustrated by the contrast between the two systems, the monetarist system of empire in which society's physical power becomes increasingly smaller to the point of its collapse into utter impotence, and the power-rich world of the science-driven credit-society economy. The difference is like that of stepping up from a death orgy into a living world. Allow me to present two examples of these opposite worlds.

 mankind utilizing absolute power - real solar power - 
versus
 mankind's quiet death in green genocide.

Economic development is a cultural process of society's self-recognition.

When society's self-recognition becomes lost in the world of mythological dreaming, economic prosperity becomes lost and civilization disintegrates.

In my series of 12 novels, The Lodging for the Rose, in exploring the potential of society's healing itself, I have included a story in a chapter that explores the stark contrast between real economics and the insanity of modes of empire. The chapters bears the title:

Dimensions of Dreaming

The chapter is a part of the novel, Discovering Love 
- free online access is provided, and also a free online audio-book version 

Economic development is not really a modern thing, but an aspect of our timeless humanity. 

It is as ancient as humanity itself. It is that which sets us apart as a profound species. It put a mark on time that takes us back into the Ice Age, and probably into the ice ages before.  According to the most modern perception, the great Pyramids of Giza and the related Sphinx, for example, were the products of cultures that came directly out of the last Ice Age, possibly as early as 12,500 years before the present. They are monuments of astonishing ingenuity and scientific knowledge that we are just beginning to fathom. And so, as we look at our past and at ourselves, we see our development as human beings as a chain of scientific, spiritual, cultural, and economic development appearing and reappearing, as far back in time as we have the capacity to look.

In my series of 12 novels, The Lodging for the Rose, which has been created to explore the Principle of Universal Love, unfolds a chapter that stages a wide horizon, drawing aspects into the foreground that tend to become forgotten about the strength of our humanity, and also things of scientific recognition that are not yet allowed to be recognized as their renaissance potential would change the world. The chapter bears the title::

Shared Roses

The chapter is from the novel, Roses at Dawn in an Ice Age World  
- free online access is provided, and also a free online audio-book version 

Here Begins a New World

The chapters are a part of the novel, Endless Horizons
- free online access is provided, and also a free online audio-book version 

An Ode to Joy
A Poster with Dragons
Flood Tides of Love 

The chapters are a part of the novel, Lu Mountain
- free online access is provided, and also a free online audio-book version 

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Cross relationships for the 12 topics