- Why We Are Suffering Through a New Great Depression -

``Last year, 49 out of 50 blue-ribbon economists
were saying there would be a recovery by this year.
They were wrong, and I was wrong.'' 
   --George Bush, Jan. 15, 1992. 

{Lyndon LaRouche was the 50th economist.} 
 
    The record of the 1980s, through the
accelerating economic crisis sweeping the United
States from 1989-1992, is that Lyndon LaRouche was
the only political leader who knew what was
happening, and {what was going to happen if we
did not make a ``bootlegger's turn'' in economic
policy.} 
    On the campaign trail in 1988, George Bush said
``Lyndon LaRouche deserves to be in a lot of
trouble;'' LaRouche was put in prison in the week
Bush was inaugurated President. He has been in
prison for the entire three years of economic
disaster of Bush's presidency. The country has gone
from economic decline to banking collapse; unable to
meet the most elementary needs of our own people;
unable to help any of the new nations emerging from
the Soviet empire; trying to bully our ``allies''
into bailing us out. 
    For allowing this to happen, you are suffering
now through a worsening, and accelerating, economic
depression. For staying away from ``the extremist
LaRouche,'' for backing politicians who are economic
incompetents and fools, chattering ``deregulation''
or the latest ``free market'' phrase of the moment,
your suffering is going to get a lot worse. 
    LaRouche is a political prisoner. Use your
imagination and figure out a way to help get
LaRouche elected President--and out of prison--or
get ready for this depression to get much, much
worse: worse than the 1930s Great Depression; worse
than any economic collapse since the 14th century. 

               - LaRouche's Record -
   It isn't necessary to quote to you what
LaRouche says {now} about the failure of the
British-American economic policies of the 1980s, the
failure which all the politicians and economists are
just now discovering for the 1992 campaign. Unlike
those others, we can tell you what LaRouche said
{at that time}, when he was trying to
{reverse} those policies; when the U.S.
banking system could still have been saved. 
   In {Spring 1980}, with the economy in
recession due to Federal Reserve Chairman Paul
Volcker's high interest rates, LaRouche's news
service, Executive Intelligence Review News Service
(EIRNS), was the {only} one to forecast that
``deregulation'' policies would produce a second,
deeper recession in 1981-82. All the other economic
think tanks were going in the opposite direction
from the actual economy, wishfully foreseeing
nothing but ``recovery,'' as the chart shows. 
   On {February 4, 1984}, in a half-hour
prime-time broadcast purchased from ABC-TV,
candidate LaRouche said: ``The rot and misery in our
economy is increasing, and unless we launch an
emergency economic mobilization, that rot and misery
will begin to spread much faster. This weakness in
our national economy, combined with worsening
conditions in world trade, has already become a
major strategic threat to the future of our
country.'' 
   On {May 10, 1984}, again on prime-time
network TV, LaRouche repeated: ``As in 1931, while
the government in Washington speaks of recovery and
prosperity just around the corner, the United States
is sliding into a new, deep economic depression.
Employers, desperate for profits under worsening
depression conditions, are seeking to cut the real
wages of Americans.'' 
   {What did the White House say?} That it
was the 19th consecutive month of economic recovery.
{What did LaRouche's Democratic opponents
say?} That the ``recovery'' needed to be more
``broad-based.'' More than that, the Anti-Defamation
League and NBC-TV put on a half-hour show claiming
LaRouche was a dangerous extremist plotting to
assassinate political and military leaders. 
   On {November 11, 1986}, in
{EIR} magazine, LaRouche wrote: ``the Reagan
`economic upsurge' never occurred, and under present
U.S. economic policies, the United States is sliding
into a new world depression.... A spiral of
indebtedness of government, consumers, and
businesses has been promoted, to attempt to conceal
the depressive effects of bad, `post-industrial'
economic policies, by promoting a wild spree of
buying on credit.'' 
   {What did the White House economists
say?} That it was the 49th month of
uninterrupted recovery. {What did LaRouche's
Democratic opponents say?} Chairman Manatt of
the Democratic Party, with Mario Cuomo and Patrick
Moynihan at a press conference, vowed to keep
LaRouche candidates off primary ballots by any means
necessary. 
   On {May 5, 1987} in {EIR},
LaRouche wrote: ``A crash in October would not be
absolutely certain, but it would be at least a very
good guess. This forecast is based on the
observation, that even now, President Reagan is
clinging stubbornly to belief in a `Reagan economic
recovery' which never actually occurred.... As long
as the official line of the administration is to
stick to the `successful economic policies' of the
past five years, ... an October crash would be very
probable.'' 
   {What happened?} In October, the stock
and bond markets crashed. {What did the
administration do?} Pumped huge amounts of money
from the Federal Reserve into stocks and banks, and
tried to continue the same policies. 
   On {October 23, 1987,} in an ``Open
Letter to Democrats on the Crash,'' LaRouche wrote:
``Once the collapse of the international financial
bubble hits into the highly leveraged layer of real
estate holdings, banks around the country will be
swept away in a tidal wave--unless federal
regulatory action intervenes to prevent this.
Contrary to the President's wishful assertions, the
economy is not sound. Agriculture, manufacturing,
and basic economic infrastructure have been
collapsing at an accelerating rate since February
1980; a growing portion of the workforce has been
shifted out of productive employment into much
lower-paid administrative, sales, and services.'' 
   {What did the White House say?} That
despite the October 1987 crash, it was the 60th
consecutive month of recovery. {What did
LaRouche's Democratic opponents say?} Dukakis
said that his state was the model for the ongoing
economic recovery! {What happened?}
Massachusetts led the nation in the collapse of real
estate, banks, and the plunge into depression. 
   On {July 4, 1989,} LaRouche, in a
pamphlet written in prison, said: ``Coming
generations will remember President George Bush for
the worst crisis to have struck these United States
in more than a hundred years. Among these crises
will be the deepest financial collapse of this
century.'' 

              - Germany and Europe -
   In foreign policy too, LaRouche in the 1980s
was the only political leader who remembered who our
nation's allies were, and what we must support as a
nation--the independence of sovereign nations from
imperial tyranny. All other political leaders of
both parties redefined Germany and Japan as our
{adversaries,} and committed what LaRouche
called ``the folly of supporting Gorbachov'' rather
than the newly independent nations of the former
Soviet empire. 
   On {October 12, 1988,} before anything
was stirring in Eastern Europe, LaRouche held a
press conference in Berlin, and his campaign paid to
have it broadcast on American television two days
later. He said: ``The time has come for steps toward
the reunification of Germany, with the obvious
prospect that Berlin might resume its role as the
nation's capital. I base this possibility on the
reality of a terrible food crisis which has erupted
during the past several months.... The economy of
the Soviet bloc itself is a terrible and worsening
failure.... The Soviet bloc economy has reached the
critical point. In its present form, it will
continue to slide downhill from here on. 
   ``We must rebuild our economies to the level at
which we can provide, to the nations of the Soviet
bloc, an escape from the terrible and worsening
effects of their economic suffering. If the nations
of the West adopt an emergency agricultural policy,
those nations, working together, could ensure that
we reach the level of food supply represented by 2.4
billion tons of grain annually. It would mean
scrapping the current agricultural policies of many
governments ... I shall propose that we act to
establish `Food for Peace' agreements, with the goal
that neither the people of the Soviet Union, nor the
developing nations, shall go hungry.... We of the
United States and Germany should say to the Soviet
bloc: `Let us show you what we can do for the
peoples of Eastern Europe.'|'' 
   {What did then-Vice President Bush
say?} Visiting Moscow the previous year, Bush
said, ``We need some of those Red Army mechanics
over in Detroit, to get things in more productive
shape.'' {What happened?} October 3, 1990,
two years after LaRouche's public forecast, Germany
was reunified; Berlin became its capital and it has
since tried, without American help, to solve the
huge food crisis in Eastern Europe and the former
Soviet Union. {What did Republicans and
Democrats agree on, as that food crisis got worse
since 1988?} They agreed on the need to continue
to {reduce} food production in the United
States, Europe, and the other most productive
agricultural countries. 

               - And the Solution -
   In Lyndon LaRouche's case, unlike that of all
the other candidates for President, we don't have to
tell you what economic recovery strategy he just
made up two months ago, after consulting the polls.
We can tell you the economic recovery strategy he
laid out {then}, when we could still have
averted this deepening misery of our people. We can
tell you what he has been saying {since
1981} had to be done, and must be done now. 
   On {February 4, 1984,} for example, on
the same ABC-TV broadcast quoted above, LaRouche
said: ``To solve the problem, I propose specifically
this. That we `federalize' our Federal Reserve
System according to Article 1, Sections 8 and 9 of
our Federal Constitution. We shall take away from
the Fed its power to print money as it chooses ...
we shall prevent the Fed from continuing to operate
its favorite game, that inflationary `Keynesian
multiplier.' [Then,] to supply an adequate amount of
credit to our private banks, to get the economy
going again, the Congress must authorize an initial
issue of about $500 billions of gold-reserve
currency notes.... These notes must be loaned at
discount rates between 2% and 4%, for the kinds of
loans that I shall indicate to you--manufacturing,
and capital improvements in basic economic
infrastructure. The purpose is to put 5 million or
more of our unemployed back to work fairly quickly,
and to get our farms and factories moving again.'' 
   {What did the White House and the
Democratic Party leadership say?} They
{agreed} on the `Gramm-Rudman' strategy,
that cutting the budget deficit took priority over
stimulating the economy or anything else. {What
do they say now?} They admit that that strategy
was a failure, and a straightjacket against dealing
with the depression, as LaRouche said it would be in
1987. 
   {Now,} when LaRouche tells you that
George Bush's proposed ``free trade'' agreement with
Mexico (NAFTA) will be a disaster, sending millions
of remaining American workers' jobs to a
south-of-the-border Auschwitz with wages of $2.65
{per day}, do you believe him? Do you know
that the other Democratic candidates for President
all also support this NAFTA or ``free trade with
Mexico'' in one form or another? 
   Nothing has changed, except for the worse.
LaRouche is still the only candidate whose candidacy
{means anything} to you, as far as whether
your grandchildren will survive and have a country
to live in. 
   Today LaRouche has a plan for 6 million jobs
building desperately needed infrastructure--not
makeshift labor, but necessary jobs--using the form
of national banking of Alexander Hamilton,
nationalizing the Federal Reserve, to generate
low-interest credits to rebuild our economic
infrastructure. 
   LaRouche's three years political imprisonment
is {your problem.} Enough is enough! Help
figure out a way, to put him in the White House in
1993. 


----
         John Covici
          covici@ccs.covici.com