Click here for Full Issue of EIR Volume 5, Number 43, November 7, 1978

London plots an early U.S. financial

Lyndon H. LaRouche, Jr. tells U.S. banks and corporations how to

If leading banking and political figures would perform arrangement. The British press stresses. painfully the following simple chore. they would immediately and even hysterically. that the British government begin to pose questions to themselves. questions which miscalculated and bungled in its spring-summer-fall would guide them to discovering the British plot to efforts to wreck theEMS. and thatthe British pound is bring down the U.S. banking system through what on the verge of collapse. The London press insists. would be the biggest financial panic in U.S. history. correctly. that the EMS will become the dominant We Qutline basic elements of information. stressing world monetary system as of Jan. 1. 1979. The British­ political-intelligence mode of identification influenced U.S. press has taken no notice. until today. inclusively. needed to understand the workings of this of such an imminent global reality. but·rather insisted British plot. We then outline the countermeasures that the London-centered Eurodollar market and IMF . available to save the U.S. banking system. "floating rate system" will be the domi�nt realities . 'The first. simple chore is this. Each banker. each through the months ahead. . . key political figure should instruct his or her personal In other words. the British-influenced U.S; national �ecretary to secure copies of all leading London preis , news media have been consistently lying from May' ' for thepast fortnight. and to also assemble a collection 1978 until today. of AP. UPI. Reuters. Washington Post. Newsweek. If one examines the policy postures of leading U.S. Business Week. and other British-influenced. U.S.­ bankers and other officials generally in the light of circulated national news media for the corresponding this comparison. one discovers that the overwhelming period. If that executive also instructs his staff to majority of the U.S. officials are either liars or merely prepare a graphic summary of the comparative dupes of British disinformation. editorial lines of the London and British-influenced We shall now examine three points of British-intelli­ U.S. national news media. that executive will find a gence control of influential political. financial. and consistent pattern along the following lines. corporate elements of policy-making in the USA. This The central. typifying point of this comparison is will typify the channels of dupes and blackmail coverage of the European Monetary System. Up to victims. through which the City of London is using Carter's Oct. 24 "anti-inflation" address. the British­ U.S. Trojan horses to effect the projected U.S. influenced U.S. national media has either insisted that financial panic. The exemplary points of control con­ the EMS is nonoperational. merely speculative. or sidered here are the two nominally Rockefeller banks. has presented the EMS as some sort of a re­ Citibank and Chase Manhattan. the cases of Senator gional currency bloc or an anti-U.S. or pro-IMF Jacob Javita and New York Governor Hugh Carel'. and the illegal-c:lrug-traffic-tied MontPelerin Societl'.

In this section Chase and Citibank

In our special report. U. S. Labor Party Chair­ One component of Chase Manhattan Bank has a long man Lyndon H. LaRouche. Jr. gives U.S. and treasonous history. The Bank of Manhattan was readers the key evidence - mostly blacked out created as a City of London covert operation under the in the U.S. press - of Britain's strategy to bring direction of Benedict Arnold's personal protta6, down the dollar as leverage against the Euro­ indicted traitor Aaron Burr. the same Burr who pean Monetary System. And. LaRouche spells headed up the New York Democratic Party machine. out the point-by-point program to save the dollar who was Thomas Jefferson's Vice-President, and who and the U.S. economy that his party is presenting was a co-conspirator in British-directed treason with to the voters on Nov. 7. later-to-be-President Andrew Jackson. (Jackson pulled out of the Burr plot just in time to avoid sub-

16 SPECIAL REPORT EXECUTIVE INTELLIGENCE REVIEW November 7-13.1978

© 1978 EIR News Service Inc. All Rights Reserved. Reproduction in whole or in part without permission strictly prohibited. relevant. David participated with such figures as organized crime's Meyer Lansky and Israeli intel­ :--_----""') ligence's Tibor Rosenbaum in founding Resorts Inter­ national. This involved the LanskY-Rosenbaum connection to lOS's Bernie Cornfeld and Robert Vesco, and of course. involves Resorts International's alli­ • ance to Max Jacobs's Sports Service organization as well as organized crime's control of James Jesus panic Angleton's current employer, Intertel. Through two of his progeny. David, Jr., and Abby, David Rockefeller is directly represented in those fight the threat facets of the Institute for Policy Studies (IPS) most closely connected to international terrorism. Rocke­ feller family funding has been repeatedly tapped in the past to aid terrorist-linked and other projects of sequent indictment for treason.) IPS. The historic connections of Henry A. Kissinger to The Burr control of the New York Democratic Party such IPS. proterrorist circles as those of Daniel Ells­ machine was later taken over by Jackson's patron, berg and MortonHalperin is by no means irrelevant. Martin Van Buren. Through the election (by means of Although Governor Nelson A. Rockefeller has re­ massive vote-fraud) of Andrew Jackson, U.S. credit jected the lunacy of the rabid-environmentalist was taken from the control of the Second Bank of the Unfinished Agenda, his personal links to Henry A. Kis­ United States, and placed at the mercy of the British­ singer are clearly exemplary elements of a controlled controlled Manhattan banks - launching the process environment around his family. with powerful influ­ leading into the Panic of 1837. ences exerted by British intelligence. The discrediting of the J ackson-Van Buren forces by The Rockefeller interests find each of their patriotic the 1837 Panic was "remedied " by a direct Rothschild ' impulses blocked by British threats and pressure�:' t�keover of New York banking and of the 'controlling ' , "You can't bust loose, buddY." the British iosl / st, machinery of the national Democratic Party. August h Belmont ran both into the late 1860s; August Belmont "you've been part of too many of the operatio s yO,u" became Democratic Party king-maker during that would have to expose to get at us." period, was the foremost official London Rothschild agent for the USA. and was a traitor. Unfortunately. Javits and Carey Seligman interests. equally treasonous. controlled Secretary of War Edwin Stanton from inside the The picture becomes clearer as we extend the Republican Party's New York machine, so Stanton number of elements considered to include the New acted to cover up Belmont's treason generally. and York Council on Foreign Relations and also Senator Belmont's implications in the assassination of Lincoln Jacob Javits and Governor Hugh Carey. Although the in particular. CFR has coopted many neutral or patriotic indi­ This tradition of treason was thus represented in the viduals. to the purpose of increasing the CFR's influ­ merger of Rockefeller's Chase National Bank with the ence over U.S. policy-making, it was founded as a resi­ Burr-created Bank of Manhattan, the centerpiece of dent agency of British secret intelligence in Man­ the creation of Chase Manhattan Bank. hattan. and within the CFR is a handful of approxi­ We are not considering directly here the long. rele­ ' mately a score of persons which manipulates the rest vant. treasonous record of the Astor family. of the crowd as a gang of manipulable dupes. This is The most visible foreign control of Walter Wriston's the same inner core which controls Lehman-Warburg Citibank is typified by Citibank's links to the drug­ and Lazard Freres. Jake Javits and Hugh Carey are linked Bank of Nova Scotia, and to the drug-linked stooges for the same inner circle. as is also Henry A. Canadian national banking system generally. It was Kissinger. these Canadian banks which performed the crucial As a leading figure of the B'nai B'rith's Anti-De­ role in luring Manhattan finance into the post-1971 famation League, Javits. like the Arnold Forster Eurodollar-market lunacy. once caught painting swastikas on synagogues. is not At Chase Manhattan. the nominal British intel­ only nominally but operationally involved in "black ligence control is aggregately represented chiefly by operations" run through the ADL. Javits's office was the competing interests of Lehman Bros.-Kuhn, Loeb caught red-handed. for example, aiding coordination (Warburg) and Lazard Freres. The fact that of the ongoing British assassination plot against this Henry Kissinger is paid consultant simultaneous­ writer. Javits is, not accidentally, the original ly to Chase Manhattan. Lehman-Warburg, and the . principal sponsor of "drug-decriminalization" legis­ Zionist lobby-controlled NBC-TV News is by no means lation, and is generally closely associated with efforts coincidental. to legalize the activities of organized crime networks. The problems of David Rockefeller are also most Javits's public postures and policies are fine-tuned on

November 7-13. 1978 EXECUTIVE INTELLIGENCE REVIEW SPECIAL REPORT 17 no less frequently than a weekly basis by the same was provided by the Hong Kong police, whose inter­ gang of gray men who actually run Lehman-Warburg, viewed representatives repeatedly insisted that the Lazard, and the CFR. Javits is a crook, but also drug problem cannot be controlled as long as drug merely a stooge for the British intelligence networks consumers exist. It happens that the Hong Kong police which have "guided" his career since World War II. force is bribed to the aggregate amount of $1 billion Javits was key in Governor Hugh Carey's Gestapo­ annually, from top officials down to the lowest ranks, like orchestration of the passage of "drug-decrimin­ by the international drug cartel. It is, similarly, not alization" legislation through the Albany legislature. accidental that Senators Jake Javits and Ted Kennedy The legislature had previously voted down the pro­ should echo the same line as the corrupt Hong Kong posal. Javits, on orders from the gray men who con­ police. trol him, acted to blackmail key Republican legis­ lators into voting up "decriminalization." Carey The Heritage Foundation deployed the New York State Police to dragoon the legislature into passing the foul bill. As a result, Otherwise, the keystone organization in the plot to Bronfman came up with $350,000 in aid for Carey's wreck the U. S. banking system is the Heritage held-over campaign debts. Foundation. It is the Heritage Foundation's "free The same corrupt character of Hugh Carey surfaced enterprise " campaign, a multibillion-dollar campaign again recently. After receiving massive "loans" from overall, first launched as a libel against the U. S. Labor Bronfman, Carey switched from opposing legalized Party this past May and June, which has been the key gambling in New York to joining with Mayor Koch in ideological factor in swinging pressured Midwestern promoting the project. Javits, Carey, and Koch pro­ and other bankers into tolerating the Republican pose to solve the crime problem by legalizing organ­ National Committee's switch from a pro-capital­ ized crime. Not strangely, their campaigns are sub­ formation to an anti-industry line. The links of the stantially funded and controlled by those forces which Heritage Foundation to the illegal drug traffic are have controlled organized crime in the U.S. and Carib­ instructive on this point. bean since Arnold Rothstein's creation of U.S. organ­ The Heritage Foundation is a joint intelligence ized crime at the outset of Prohibition. operation of British intelligence and the intelligence Public Service Television recently broadcast a arm of the British-centered forces of the Order of series on the drug problem. The theme of the series Malta, the Mont Pelerin Society. Exemplary, the frau-

The British and British-American press: While the U.S. was kept in the dark about the new monetary system, two ways of 'covering' the EMS what one commentator called a "consensus of despair" began to In the U.S., scant, "EMF is anti­ And from the prestigious Journal appear in Britain, notably kicked dollar" coverage of the new of Commerce of Oct. 10: off by the Sept. 24 Observer: European Monetary Fund was to "There is probably nothing all "So far the British government serve the purpose of keeping the that wrong about the two countries has been completely outflanked in U.S. entirely away from the EMF. with the most economic power, discussions about EMS. Although What little commentary did appear Germany and France, fixing up a official sources emphasize that is typified by the following deal. But the spirit in which their discussions have a long way to go, excerpts from the Oc t. 2 proposals are presented to the one cannot help but notice that they Newsweek: other member countries doesn't seem to be going a long way in a "The U.S. of course does want a augur well for third countries like very short time, and they are not close look at the fine print to make the U.S., Japan, or the developing going the way the British would certain that the scheme will not be world. like .... used to attack the dollar, to "The third largest country, "The uncomfortable truth is remonetize gold, or to subvert the Britain, has been too lukewarm that ... the British are dithering, central role of the International about the pr oposal, and, have no clear policy, and merely Monetary Fund. . . . . accordingly lost influence .... want to delay those who will not be "Despite ... official reassur­ "A successful system could delayed. It is the classic ances, the currency markets mean more dramatic swings in preparation for being routed. " have reacted to the recent exchange rates between the news that the new union is likely to European bloc and the dollar.... Or, later in the Oct. 8 Observer: be formed by pushing the dollar There are dangers here and the "Mr. Callaghan and Mr. Healey down." U.S. should be alert to their have come to the conclusion that

implications. " Britain which at first tried to

18 SPECIAL REPORT EXECUTIVE INTELLIGENCE REVIEW November 7-13, 1978 dulent libel against the U.S. Labor Party bears the Kennedy's political profile.) "1.0. format " of proterrorist operatives such as Harvey Kahn of the Morton Halperin, IPS-linked pro­ Past and present plots terrorist organization CounterSpy. The connection of the Heritage Foundation to illegal This is by no means the first time the British intel­ drug interests is most immediately and conclusively ligence service has used the "free enterprise" hoax as exposed by examining British and Canadian banking. a means for plunging the U.S. economy into a depres­ In Canada, the keystones of the Zionist lobby, the sion. In the 19th century, the term used was not "free Bronfmans and Montefiores, are incestuously inter­ enterprise " but "free trade. " This was the doctrine penetrated with the British Order of Malta. Inter­ set forth by British intelligence agent Adam Smith in nationally, it is the British Order of Malta and allied his Wealth of Nations. the Smith colonialist policy networks which jointly run the world's illegal drug against which the American Revolution was fought. traffic. It is not surprising that the Order of Malta in Through the influence of such British agents as the the USA is overtly deployed in behalf of "drug decrim­ Gallatins, the United States' financial and economic inalization." The Mont Pelerin Society is the intel­ growth - as well as military readiness - were sabo­ ligence arm of this prodrug network of the Order of taged under President Thomas Jefferson. Although Malta. the U.S. economy enjoyed a dirigist economic recov­ The British factions of the Order of Malta are, inter­ ery during the War of 1812, at the close of that war a estingly enough, composed of the European and Medi­ "free trade " policy was introduced into the USA terranean "black nobility," a force which overtly pro­ through British agents and agents of influence. From fesses an anticapitalist, profeudal, as well as (often) 1815 to 1818, the U.S. economy was plunged into a de­ promonarchist line. It is not properly astonishing that pression. A return to dirigist policies under Monroe Senator Kennedy should be on an anti-industry kick, and John Quincy Adams effected both economic recov­ together with the profeudalist Mont Pelerin crowd. ery and one of the greatest periods of technological What is ironical in that connection is the fact that progress and general growth in our nation's history. Senator Ted Kennedy is working as an agent of those Through the election of Van Buren puppet Andrew forces which organized the assassination of his older Jackson to the presidency, the Second Bank of the brother, John F. Kennedy. (One wonders whether stu­ United States was nullified in practice and then dis­ pidity or immorality is the greater vector in banded. The control of U.S. credit was placed at the

sabotage the scheme (EMS - ed. ), the Civil Service and of the A financial call to arms was issued cannot afford to be left isolated Treasury. by Peter Jenkins in the Oct. 23 from the new arrangement ....At " . . . I see no advantage in Guardian: the last meeting with the hitching ourselves to a European "The Cabinet is yet to make a Germans ...the British aim was to currency bloc. It does nothing for formal decision but Ministers have undermine the scheme .... When us against the dollar or yen. " come to regard the EMS as little that failed, Britain tried to turn the more than a thinly disguised EMS to its advantage ...." version of the old German The Oct. 22 Sunday Times was dominated currency snake. Consider the entry in the Daily clearly shaken: "To this end the Government will Telegraph of Oct. 21 : " ...Britain's Prime Minister be trying to preserve the ability to "British Ministers seem to made it painfully clear to his influence - from the outside - any have gone to Bonn clinging to the German friends at Thursday's developments by the snake in the illusion that the Germans would pay summit meeting in Bonn that he no direction of a genuine 'European' a handsome price for our involve­ longer expects to join the European currency system ...." ment. They came home sadder and monetary system on Jan. 1. The wiser. " meeting dripped with goodwill and unctuous expressions of mutual And the pitch accelerated with the sympathy and understanding. In appearance of the Oct. 25 Financial hard facts, the cleavage was plain, Times "stiff upper lip" column: so much so that Germany has "T he proposed European already reacted to the new Monetary System is worthless as situation ...." presently formulated and of no advantage to Britain, according to Lord Armstrong, the chairman of Midland Bank and former head of

November 7-13. 1978 EXECUTIVE INTELLIGENCE REVIEW SPECIAL REPORT 19 mercy of the Manhattan private bankers. Jackson and which all key forces in the U.S. would tend to do Van Buren followed "free trade" policies of hostility were the facts known to them. to technological progress. and permitted the London­ • Weaken the EMS by wrecking the value of the key linked New York private banks to engage in the reserve-currency on which the EMS is based. the wildest sort of speculations. resulting in the Panic of U.s. dollar. 1837. • Wreck the EMS militarily. by promoting a thermo­ There were similar operations following the assas­ nuclear confrontation between the U.S. and the sination of Lincoln. President Grant became a pawn of Soviet Union over hot spots developed in the Middle the B'nai B'rith, tI& Seligmans of Grand Street, New East and-or Africa. York. the Rothschild-linked element within the Repub­ • Compensate for the ruined state of the British eco­ lican Party. The bankrupting of Jay Cooke was a nomy by enabling a British-Canadian-Bahamian­ British financial warfare operation against the United Hong Kong takeover of the U.S. economy and States conducted through Rothschild and Seligman banking system. interests on the scene. • Such a takeover must be of the asset-stripping. or The crucial British success was the success of fascist-economic form. The nomination of an British Rothschild-centered and Morgan interests in avowed admirer of Hitler's economics. Kennedy­ getting through the Specie Resumption Act of 1879, by machine creature Alfred "Ghengis" Kahn, to the which the U. S. lost control of its own credit to the City position of Carter Administration "inflation­ of London. The 1890s and 1907 panics were British fighter" is exemplary. A real U.S. economic recov­ operations, made possible by British control of the ery would be effected through increased high-tech­ spigot of U. S. national credit through London-linked nology capital-goods exports either into the develop­ New York private banking interests. ing sector or to European. Comecon. or Japanese The 1929 crash was also a British operation against exporters. This would be possible only through U.S. the Administration of the "great engineer." Herbert participation in the new monetary system. Hence. Hoover. Key to this crash. overall, was British autocannibalistic. Schachtian-fascist measlfres are (Warburg, Schroeder's) agent Hjalmar Schacht, who projected as the looting operation against the unleashed a chain-reaction in international finance by capital and bodies of Americans to provide British his opposition to the Young Plan, and his associated financial interests a new source of profits. destabilization of the de facto alliance of the Catholic • Burglary and pocket-picking are intrinsically de­ Center Party and Social Democracy in Germany - ception operations: deluding leading U.S. circles paving the way for Schacht's later appointment of concerning the facts of the EMS is indispensable to Adolf Hitler to the Chancellory in consort with the looting the USA. whereas the British population Dulles-linked, Seligman-linked Schroeder's bank. The must be given a modicum of the truth concerning "free trade" manipulation of Mellon. combined with the EMS. to mobilize it against the EMS "threat" to operations of the key New York private banks com­ continued London domination of world debt­ plicit with the British in this affair, ran up the "bull financing. market" speculation-bubble which the British then triggered into a panic from London. European alternatives

Key European circles have confided to this writer and The riddle solved his immediate associates that any protracted fall of That background enables us to focus directly on the the U.S. dollar would be dealt with by accelerating the problem represented by the gross discrepancies role of monetary gold. During the past fortnight. the between the British leading press in London and the key Europeans committed to the EMS have moved out British-controlled or British-influenced national news of continued support for the U. S. dollar. and are now media in the U.S. Why should the British push, with moving into the gold option. Gold will now be pegged equal energy. one line in London and another in the close to its open market price (which should rise USA? toward 720 deutschemarks over the months ahead). The issue can be summed up as follows. such that the combined currency and gold reserves of • The strategic objective behind both versions of the theEuropean Monetary Fund at the outset of 1979 will British line is the same: the wrecking of the new be in the order of $160 billion. world monetary system to become operational Jan. European leaders are also alert to the British plot to 1, 1979. create a U. S.-Soviet thermonuclear confrontation as • The same objective demands a different tactical ap­ the last-gasp effort to wreck the EMS before Jan. 1, proach within Britain and within the U.S. respec­ 1979. This awareness is reflected in the current NATO tively. crisis. West Germany has forcefully asserted its • In the USA. the objectives are as follows: national sovereignty as a member of NATO. France. • Keep the U.S. ignorant of the EMS, long enough to Germany. Greece. Norway. and Turkey have already prevent the U.S. from eagerly joining the EMS. signaled their policy in this connection. Europe will

20 SPECIAL REPORT EXECUTIVE INTELLIGENCE REVIEW November 7-13. 1978 not permit the Carter Administration and London to aggregates has nothing to do in and of itself with commit Europe to NATO participation in a Carter inflation. Inflation is the result of a flow of mone­ thermonuclearconf rontation. tary aggregates away from productive capital­ In other words, Europe will act to neutralize and formation and tangible-product output, into debt­ nullify any Carter Administration efforts to generate a refinancing and other forms of speculation. The thermonuclear confrontation, and will oppose Carter issue of inflation is whether monetary aggregates Middle East and Africa policies (i.e., Kissinger flow predominantly into capital-intensive produc­ Middle East and Africa policies) with increasing show tive capital formation, or into speculation and of resolution and practical effectiveness. At the same other forms of monetary recycling. This deter­ time, the acceleration of the gold reserve feature of mines, in turn, the ratio of the growth of national the new monetary system by continental Europe, the taxable base to that of the national debt, and other Arabs, and Tokyo will enable the principals of the new crucial secondary features of inflation. system to ride out any short-to-medium-term collapse of the dollar's value. Gold purchases banked at be­ 2. Since gold is a produced tangible product, whose tween 500 and 600 deutschemarks parity-valuation cost is determined jointly by marginal-resource will convert excess dollars into gold at a future gain richness and general levels of technological and satisfactory interim yield to the holder. progress reflected into gold extraction and refine­ Any U. S. bank or corporation looking for a suitable ment, a gold-based monetary system is the only hedge should hedge with gold purchases in relatively conceivable anti-inflationary system. This does not large proportions. (Drastic political action should also require a gold-coin circulation, but rather a settle­ be taken against all supporters of Kissinger's Africa ment of imbalances in national accounts on the policies.) Once the U.S. enters the new monetary basis of gold valued at its open-market price-of­ system. levels of monetary gold purchases will bring production in volumes adequate to monetary re­ thiJ open-market monetary gold price necessarily to quirements. A gold-based monetary system is a about 720 D-marks an ounce. low-interest-rate system, keeping interest rates within ranges such that venture capital for produc­ tive output has a significantly higher yield than Sanity's open conspiracy appropriately secured loan capital. Thus, a gold­ based system is appropriate for fostering a pre­ The only sensible option for U.S. bankers and others is dominant flow of credit expansion into productive what I term an "open conspiracy." An open con­ capital formation, and is the anti-inflationary spiracy is a general circulation of truth concerning a system required to keep basic interest rates low. situation such that at some point in the near future That taken into account, the following are highlights action is taken in a concerted way on the basis of that of policy: shared knowledge. In the interim, the British adver­ sary is unable to predetermine exactly who will jump 1. What the U. S. economy requires is an inflow of which way at the impending decision-point. dollars held overseas back into the USA as rela­ This writer is the center of this open conspiracy. My tively low-interest, gold-denominated credit both function is to set forth the spectrum of policies we can for capital-goods exports and capital formation, put rapidly into effect, in a concerted way, on the and for related hard-commodity credit in aid of appropriate D-Day. It is necessary that these options production of such exports. be openly mooted, so that the digested knowledge exists to enable concerted, rapid agreement for deci­ 2. What the major U.S. commercial banks require sion at the D-Day point. most urgently is a conversion of nonperforming Therefore, I now lay out in summary a partial, and doubtful debt paper into low-yield but highly exemplary list of the crucial decisions to be made. negotiable prime paper which can be discounted in For the leading circles, the essential theory to be the new world monetary system to secure new mastered is set forth in my The Theory of the Euro­ loan-capital for use within the U.S. (principally). pean Monetary Fund." which is the appropriate suc­ (It is, therefore, partly true that U.S. internal cessor to my earlier International Development Bank credit expansion through Federal Reserve action (Spring 1975) and the updating of that, The Private can be checked, but only because a massive supply IDB(l977). of dollar credit will be available after Jan. 1, 1979 It is necessary to emphasize, for a broader audi­ through the up to three-quarter-trillion dollars ence, two crucial points of policy-making. credit offshore which can be drawn into the infla­ tion-proof vortex of the new monetary system.) 1. The rate of credit expansion or size of monetary This conversion of nonperforming and otherwise marginal paper in New York (alid other U.S.) com­ *Tbe Tbeory of the European Monetary Fund. b Lyndon H. y mercial banks' portfolios can be effected under the LaRouche. Jr .• Executive Intelligence Review Supplement. October 1978. new world monetary system, through a Hamilton-

November 7-13. 1978 EXECUTIVE INTELLIGENCE REVIEW SPECIAL REPORT 21 ian reorganization of the national banking system into the tax structure as a whole. The objective of and of the debt of Third World nations on the basis an adequate tax revenue must be reached by rela­ of high-technology economic development in indus­ tive heavy taxation on nonproductive margins of try, agriculture, and infrastructure. income and investment, above significantly raised household exemption allowances, and, more broad­ 3. The establishment of gold-linked credits produces ly, by rapid expansion of the ultimate taxbase in a two-tier credit system inside the U.S. banking tangible-product output. system. Gold-linked export and related credits bear low interest charges, whereas floating­ 6. The shaping of U.S. internal recovery must be gov­ market paper rises to the price set in response to erned by a policy of rapidly accelerated increases inflationary rates. Thus, holders of mortgage and of nuclear and other high-technology capital-goods other doubtful paper defend their positions best by exports into the developing sector, in cooperation keeping that paper off the market until the floating­ with the new monetary system. market tier has been washed out, until high rates of capital formation in industry, agriculture and In summary, then, the points to be underlined and basic infrastructure in the USA have brought the in­ digested are: ternal U.S. market out of the current realm of Participation in thenew monetary system; double-digit inflation. The emergence of a low-interest component of a two­ tiercredit-system for theUSA through participation in 4. The fundamental economic policy of the USA must the programs of the new monetary system; be to rapidly expand industrial and high-tech­ Debt reorganization of Third-World nations, and nology agricultural investment and output. The exchange of old for new instruments of debt; shift of the labor-force ratios toward growing ratios A drastic reorganization of the U.S. tax structure of industrial operatives, engineers, and scientists, giving dirigist preference to high-technology capital plus technologically fostered increases in the formation in industry, agriculture, and "hard" national rate of overall social productivity, will (communications, transportation, medical, educa­ bring inflation toward a halt and will restore the tional, etc. ) infrastructure. value of the U.S. dollar rapidly toward the pro­ The current Carter Administration policy is jected 3.00 deutschemark level. shamelessly a British, "Churchillian " pathway to national economic suicide. In service of the 5. The key governmental measure required is commitment to defend our nation's vital interests drastic change in the federal tax structure. Instead against all enemies, foreign and domestic, we sane of an across-the-board promotion of productive and persons must openly conspire to undo that eVil, British speculative capital gains with no distinction be­ nonsense in concert, at an appropriate moment of tween the two, a high basic rate of taxation must be opportunity presenting itself to us at a point during the adopted with two categorical exemptions and off­ early future. sets. One is a raising of the household-income tax Our British enemies run their evil games on the exemption; the other is a system of accelerated basis of the long memories of evil practices of the past depreciation, amortization, and tax-credits for thousands of years, matters studied at Oxford and high-technology productive investments in Cambridge. We defeat the morally inferior British by industry, agriculture, and "hard " infrastructure. stressing our human qualities, the dedication to The tax structure must shelter the reinvestment of dirigist methods of shaping the future of our nation savings into new productive investments at such and humanity as a whole. Our conspiracy will work, if great advantage that an investment boom is built you and others will join it.

22 SPECIAL REPORT EXECUTIVE INTELLIGENCE REVIEW November 7-13, 1978