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Thursday, September 05, 2019

The Alternative to a Catastrophic Crash

https://larouchepub.com/other/editorials/2019/4634-alternative_to_catastropic_crash.html

This is an interesting alternative view of a catastrophic collapse of the USD.

"How will we deal with the problem of contagion— the danger that speculators’ losses will shut down the commercial banking system upon which our economy depends? Not by bank bailouts, but by hiving off the dens of the Wall Street gambler’s speculation from the commercial banking system, using a revival of Franklin Roosevelt’s Glass-Steagall law. (A law that President Trump campaigned to revive.) Then their dubious gambling assets will not be eligible for Federal taxpayer support, and can be written down or written off over time, as those dubious assets are sorted out. Only legitimate commercial banking functions will be protected, not speculation.
The issuance of low-interest Federal credit exclusively for productive employment of unemployed or unproductive labor and capital, is not inflationary. If it is vectored towards science-driver programs like the Trump Administration’s international Moon-Mars program, or the international effort to harness controlled fusion energy, it will be counter-inflationary, increasing the productivity of all labor, as scientific and technological breakthroughs filter through the economy. In the United States, this policy is as old as the George Washington Administration, and lies behind the economic success of the Abraham Lincoln and Franklin Roosevelt administrations."


I would think for it to be possible that the CCP would have to fall first. It looks like a plan that would take more years than Trump has even if he wins in 2020 and goes through to 2024. Is there anyone one that sticks out to carry the torch after Trumps second term?
Just some thoughts...

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