National Emergency Statement! LaRouche Speaks on Fed Rate

LaRouche: 'The Fed Failed, Must Have Special Session--Establish Two-Tier Credit Rate, or Forget the United States'

Aug. 5, 2008 (LPAC)--Following the Federal Reserve's non-action on interest rates today, Democratic statesman and economist Lyndon LaRouche responded urgently to that potentially suicidal failure for the United States.

"The Fed has failed to raise interest rates today--that is a clinically insane non-act," LaRouche said. "A general bank interest rate of 4% must be instantly established--but with two tiers of rates--whatever you have to do to establish it! If you're loyal to the United States, you'll get the Fed to do it."

The 4% general overnight rate, LaRouche has explained in a nationally circulated statement, is necessary "to keep funds inside the United States banking system," keep them from fleeing and finishing off the dollar in an uncontrolled collapse. Bank of England interest rates are far higher, and so are the British-manipulated rates of the European Central Bank. The dollar is set up for a collapse unless the Fed is made to act now.

But a "second tier" of credit also has to be established, at a very low rate, selectively to target stimulating economic activity which increases employment and productivity. "We need a cheap line of credit from the Treasury, at 1-2% per annum, for growth--Franklin Roosevelt-style infrastructure and related investments--to stabilize and grow the United States' physical economy. If you do that, you turn the physical economic collapse around--but you must have the general overnight Fed rate doubled, to 4%, immediately.

LaRouche called on his own supporters and other political forces to "run a major campaign on this. No more cheap bailout money! If you're a patriot, you'll join me to push the Fed into a special session to get this done now."

He commented on the current staging in Washington of a Republican demand on House Speaker Nancy Pelosi to call a special Congressional session. "They should have one," LaRouche said. "It's the right demand, though for the wrong purpose. This has been a `do-nothing Congress.' They need to save the sinking economy--two-tier credit, Federal credits for infrastructure and productivity projects.

"Otherwise, whatever it takes, get the Fed to raise the overnight rate to 4%, now--or forget the survival of the United States," LaRouche said.

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[KamikazeKoscki]

they are gonn a collpase the dollar.. if wee lucky that is all they wwill do.. watch out for terror nuke attack on usa soil soon..obv done by the same 9/11 inside jobers

[EvilMongrelMonkey]

let the federal banking system collapse... the federal reserve is why we are in this problem to begin with.

[815Sox]

EVERYBODY FREEEAAAKKKKOOOUUUUTTTT!!!!

[LiberalJerseyman]

Insane guy

[wailingsoul9]

I'm afraid that crashing the dollar is THE PLAN. When it crashes they will offer the "solution" of world government and single currency which has already been named. Look up BANCOR which has been put forth by the IMF.

[CoombesKidd]

free banking is the solution

[CoombesKidd]

i agree with larouche when it comes to debunking corruption, but im not sure what to make of his ideology. he's def not a ron paul old-school constitutionalist, but he's not a kucinich sanders socialist democrat either. still smart guy

[charkee1]

It is now 2 years later, October 2010, everything that LaRouche has said is happening NOW!

[horsefucker1680]

@UltmtSniper First of all "Credit" is the EXACT american way of doing things. When someone says credit, the first thing that comes to mind is Las Vegas and casinos, and Mercedes S500 bought on 20-year lease, because of the "easy life" that AMERICA has supported for over 30 years.

Second of all - credit wouldn't be the "american way" if the US americans were not so IGNORANT and were actually interested in what's happening around them.

*NB: US Americans are americans living in the US!

[jabberwocky1969]

Australia has 4 % !

[kroovyandcal]

@laroucheyouth it's far harder to manipulate than fiat or paper printing presses

[Zamolxx]

The credit system doesn't operate on taxes, it needs no new taxes or increased taxes to finance physical economic projects. It works through bills of exchange and low fixed interest rates on treasury bonds. The problem today is that no one is responsable to the currency, you have the central bank that functions only as a private institution, not a quasi private on and the department of treasury is held hostage by international financeer interests. Sovereign credit needs a sovereign nation state.