A Call for a New Bretton Woods: We Need a New World Economic Order, Now!

With the financial system now collapsing at breakneck speed, and the western governments showing tht they have absolutely no idea what to do (other than to throw greater and greater quantities of money at the banks, generating hyperinflation internationally), Helga Zepp-LaRouche issued the following call, describing exactly what can and must be done. I ask you to endorse this, by sending me a return e-mail message that you wish to add your name to the call. Lyndon LaRouche will address this and other issues in an internationally webcast presentation this coming Tuesday, July 22, at 1:00 PM EDT. You can watch the webcast at www.larouchepub.com .
Mike Billington
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A Call for a New Bretton Woods:
We Need a New World Economic Order, Now!

by Helga Zepp-LaRouche

The author is the founder of the Schiller Institute, which
has branches in many countries, and its president in Germany. She
issued this open call, titled "World Financial System Faces a
Meltdown; Call for a New Bretton Woods System; We Need a New
World Economic Order!" on July 17. It is being distributed as a
leaflet in Germany, and has been translated from German for EIR.

Inflation is gobbling up the income of the so-called "little
people": 56% of German citizens don't make enough to be able to
save anything. And now, as the result of speculation, prices for
food, gasoline, heating oil, electricity, and raw materials are
exploding. But the people do realize that a much bigger
catastrophe is hitting us.

The fact is, the financial system has collapsed. The
so-called subprime mortgage-market crisis in the U.S.A., which
broke out a year ago, is now exploding with the insolvency of the
mortgage-lenders Freddie Mac and Fannie Mae, which reportedly are
holding or backing $5.3 trillion in mortgages--that's 5,300
billion dollars--which is 70% of the American real estate market!
But both of these giants were at the core of the "creative
financing instruments" that former Federal Reserve chairman Alan
Greenspan bestowed upon the world, by means of which, debts were
miraculously transformed into assets, and sold throughout the
entire globe as so-called structured financial packages, without
the slightest control by governments or central banks.

The Federal Reserve's attempt to put practically unlimited
financial infusions at the disposal of both giants will only
accelerate the hyperinflationary explosion of the system. The
patient--the world financial system--has already died; it's only
the burial that hasn't yet occurred. The dance around the Golden
Calf that made the speculators super-rich, but the majority of
the world's population poorer and poorer, has come to an end.

It is deplorable that the summit of the G8 countries--that
is, the seven most powerful Western industrial nations plus
Russia, which recently took place in Japan--unfortunately proved
itself incapable, as was to be expected, of finding a solution
for the systemic collapse that is playing out so dramatically
before the very eyes of the world public. The heads of state of
the G5--China, India, Brazil, Mexico, and South Africa--who were
also in attendance, were not seriously incorporated into the
search for a solution. A number of governments will soon be voted
out, since, during their term in office, they did not meet their
obligation to take care of the common good of their populations.

The hyperinflationary disintegration of the world financial
system has already led to hunger riots in 40 nations, as more and
more people are threatened with the loss of their livelihoods. If
even more, unforeseeable, harm to the world's population is to be
prevented, an emergency conference must be called, at the level
of heads of state, to establish a new financial architecture, in
the tradition of the Bretton Woods system initiated by Franklin
D. Roosevelt.

Lyndon LaRouche has reiterated in recent months, that only
the combination of the four most powerful nations--the U.S.A.,
where the election remains open, as well as Russia, China, and
India--is strong enough to take a stand against the international
financial oligarchy. Other nations should then join these four to
bring about a solution.

This emergency conference for a New Bretton Woods system
must resolve that:
1. The present world financial system must be declared
hopelessly bankrupt, and replaced by a new one.
2. It must promptly set up a fixed-exchange-rate monetary
system, so that long-term investments in international
infrastructure projects are possible, under predictable
conditions.
3. Derivatives speculation and speculation in food, energy,
and raw materials must be banned by treaty among governments.
4. There must be an immediate reorganization, including, for
example, cancellation of debts.
5. In a New Deal for the world economy, in the tradition of
Alexander Hamilton, Friedrich List, Henry Carey, and FDR, new
credit lines must be made available for investments in basic
infrastructure and technological renovation.
6. Building the Eurasian Land-Bridge, as the core project
for reconstruction of the world economy, is therefore the vision
that can not only bring a new economic miracle, but also bring
peace to the 21st Century.
7. Food production must be doubled worldwide in the coming
years.
8. A new "Peace of Westphalia" must, within at least 50
years, secure the availability and development of raw materials
for all nations on this planet.

We, the undersigned, maintain that the system of
"globalization," with its brutal, predatory capitalism, is
economically, financially, and morally wrecked. Instead, man must
be placed at the center again, and the economy must serve the
common good. The new world economic order must guarantee the
inalienable rights of all men on this planet.

Michael Billington
Asia Desk
Executive Intelligence Review
703-431-3374
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