Larouche - The Lost Art of The Capital Budget

December 22, 2006
WHAT THE CONGRESS NEEDS TO LEARN
The Lost Art of the Capital Budget

by Lyndon H. LaRouche, Jr.
Dedicated, poetically, to my wife, Helga, for the Senate and also much of our House of Representatives,
ominously lovely occasion of our 29th Wedding our Congress had, in the main, lately misplaced the piv-
Anniversary. otal conception on which the future existence of our
nation now depends: the concept of the capital budget.
Lyndon LaRouche in this article, completed for pub- This must now be changed.
lication December 2006, warned of the danger of out- What has been lost, is a sense of the meaning of in-
of-control derivatives speculation, which had then dispensable capital investment in the physical condi-
brought the economy careening toward a blow-out, tions of progress; it means a loss of the meaning of the
which should be, ordinarily, expected within the span investment required, not only to rescue the U.S.A., but
of a few months ahead. The housing bubble implosion to secure the civilized future existence of the world as a
surfaced in February 2007 and exploded in mid-2008 whole.
with the now well-known mas-
sive economic dislocation from
which we are still suffering
greatly. Now is the time to re-
cover: This lost art of recov-
ery must now be mastered.
Since that notorious uproar

of 1968, which erupted in
Europe as in the Americas, the
mayfly passions of the upper
twenty percentile of todays
reigning white collar (Baby
Boomer) generation, are fre-
quently expressed as a loss of
the desire for the practice of
long-term marriages, a loss of
caring for the prospects for
younger generations, and a loss
of any interest in investment in
the future of the physical econ-
EIRNS/Stuart Lewis
omy of other nations, or even
Under the reign of the Baby Boomers, our Congress has misplaced the vital conception on
their own. Hence, since that which the future existence of our nation now depends: the concept of the capital budget,
generation dominates our LaRouche writes.
July 21, 2017 EIR Forgotten No More 15

Some among you are perhaps angered by my saying manns work. It is the individual creative mind in Clas-
this? Think carefully. Witness the ration of members of sical art, as by Leonardo da Vinci, or Johann Sebastian
the U.S. Congress who count every budgeted dollar of Bach. The suppression of the emphasis on that kind of
public expenditure as outlays which must be balanced individual creativity, produces a kind of society fairly
by current tax receipts. From the standpoint of any described as an Orwellian nightmare, a Brave New
competent economist, that policy is, in effect, the prac- World fantasy, like that produced by the psychotomi-
tice of ruinous, sheer, inhuman recklessness in eco- metic mind of an Aldous Huxley.
nomic policy of practice. So, as in our Louisiana, that reigning generation of
The change in state of mind respecting economic today, swapped productive development and its neces-
policy, which had become widespread in the Congress sary basic economic infrastructure, for public revenues
during the course of the recent four decades, has become based on public subsidy of mass gambling; that genera-
a radical change, a radical downturn from the level of tion built casinos, instead of defenses against more or
competence of the founders of our Federal republic, a less inevitable hurricanes in the three-to-five-scale range.
downturn of more than a quarter-century, in what per- That generation exported our industries to places
formance had formerly suggested might be the appar- abroad where labor was very cheap, and costs of basic
ent, functional intelligence-quotient of a majority of economic infrastructure were chiefly disregarded, thus
those leaders in senior positions. This was an effect bankrupting not only more and more of our local com-
shaped, to a large degree, by the stratum, from among munities, but also even entire Federal states. In fact,
the typical university-oriented Baby Boomers of 1968, this practice, sometimes called outsourcing, actually
which had launched a virtual state of class warfare, lowered the net physical productivity, per capita, of the
warfare of white collar against blue collar. They were, world as a whole. More of the worlds net productivity,
more and more, against farmers, industrial operatives, per capita and per square kilometer, was actually lost in
and physical-science-based professionals. Many among North America and Europe, for example, than was
them were even against anything which represented gained in Asia.1
technological progress in production and infrastruc- Study our nations downward plunging physical con-
ture. That cultural paradigm-shift expressed by the dition, county by county, since Richard Nixon was inau-
68ers, became the cultural matrix which has dominated gurated as President. Produce animated chronological
the downward shift in values over more than a quarter- representations of even the most common types of
century to date. census figures compiled more or less regularly by gov-
So, we have generations which came to love digital ernments, or by standard private agencies engaged in
computers, but chiefly as a source of entertainment; such economic studies. See the shift in employment,
they loved the entertainment value of computers so from productive work-places, toward a virtually Third
much, that they demanded the replacement of compe- World quality of unskilled services. See the collapse in
tent scientists, engineers, and machine-tool-design spe- revenues of states and counties, county by county, over
cialists, by the inherently uncreative idiot-machines these decades. This ruinous trend of the recent thirty-five
composed to display the benchmarkers intrinsic in- years, has not been an accident; it has been the product of
competence: we have seen, thus, the reckless use of policy-decisions made in places like Wall Street and the
computer technology for the attempted elimination of City of London, and imposed, from such places, upon
the role of the creative powers of the individual human
mind of the design engineer in the worlds economy. 1. This would be (perhaps, will be) evident in the chain-reaction ef-
Formal mathematics is not creativity; creativity is fects of a near-future collapse of the U.S. economy. A collapse of the
U.S. economy would mean a collapse of the U.S. as an importer to the
uniquely a sovereign quality of innovation specific to world, such as Asia. It would mean, also, a chain-reaction collapse of
the potentials for self-development of the individual the planets whole monetary-financial system, unless a Franklin Roos-
human mind. It is a quality expressed, not by mathe- evelt-style substitute were supplied almost immediately. The loss of net
matics, but by the discoveries of universal physical productivity through such chain-reaction effects, in Asia, alone, would
lower the net productive output, per capita, throughout the world. Thus,
principles, such as Johannes Keplers uniquely original taking the world economy as a whole, over the interval 1971-2006, the
discovery of universal gravitation, as Albert Einstein productive potential of the human species would have shrunk, in net
emphasized this fact about Keplers and Bernhard Rie- effect, over the course of this thirty-five-year interval.
16 Forgotten No More EIR July 21, 2017

were groomed to make the white-
collar revolution, not because they
knew what they were doing, but be-
cause, in their eyes, that is what they
had been trained, almost as if they
had been circus seals, to do.
We have now entered a state of af-
fairs, in which, even among the more
respectable Democrats in the Senate,
recent legislation has driven the
nation ever-deeper into a non-pro-
ductive direction, and thus toward
the brink of a most calamitous na-
tional bankruptcy. Meanwhile, the
same legislators often delude them-
selves that the practice of goodness is
clipart.com
offering palliatives of mercy to fami-
The symbol of the 68er economy: gambling casinos on the Mississippi River, which
were built at the expense of the basic infrastructure required to protect against
lies which the Congress itself has ac-
hurricanes. tually ruined, as by its neglecting the
defense of the conditions needed for
our Federal and state governments, This is the trend in decent employment and for protected pensions at
policy-decisions which has now driven the nation into a decent levels of family income.
state fairly described, at this moment, as a national econ- Thus, we hear the cry from such layers among our
omy teetering wildly on the brink of an abyss. politicians, that the U.S. government must not make
capital expenditures, except by cutting the basis for the
Current Long-Range Policy existence of those functions whose existence depends
Over the past quarter-century, since President Rich- upon precisely those capital expenditures. By such
ard Nixon entered office, the trends in law-making and foolish practices, such misguided legislators destroy
the political opinions among the upper twenty percen- the very economy of the people whom they delude
tile of our Baby Boomer generation, have now bank- themselves into believing that they are helping. That is
rupted our nation. Those habits of opinion are, most un- precisely the way in which even those we might con-
fortunately, the reigning popular opinion among that sider to be among our many well-meaning legislators,
part of that generations legion of customary voters have been destroying the U.S. economy, consistently,
today. At the same time, the citizens in the lower eighty since early during the 1970s.
percentile of family-income brackets, who have been Therefore, for this very practical reason: from the
the typical victims of this drift, including the greater standpoint of any competent historian, any competent
number of those not customary voters, are, therefore, scientist, any competent economist, those currently
rather angry now, and becoming more so with each popular Congressional policies of balanced budgets,
passing, ruinous month. are to be seen as ruinous expressions of indoctrinated
By and large, these guilty Baby Boomers did not delusions which have unbalanced minds, a virtual prod-
intend to be malicious; excepting really evil cases in the uct of the influence of social engineers who designed
likeness of Bertrand Russell and H.G. Wells, and bar- the aberrant mental habits induced from childhood on,
ring typical neo-conservatives, our nations utopians in what we call our Baby Boomers today.
rarely present themselves as being intentionally mali- For certain reasons, I have a special responsibility,
cious. Our upper twenty percentile of the Baby-Boomer as an economist, for pointing out such presently omi-
generation, were the children, born chiefly between nous errors in practice and belief to the members of our
1945 and 1956, born into a post-war fad sometimes legislatures, and to others. The relevant generation, and
called the White Collar generation, or known as the also others, have become so steeped in the cumulative
1950s age of The Organization Man. It was they who effects of decades of indoctrination in a system de-

signed, in fact, to ruin our economy, that they have come conducted by our principal debtors, the British and
to believe that a bad performance of the economy, in French financiers, of a defeated World WarI Germany;
response to this policy, could only be the failure to con- but, by the middle of the 1920s, our economy was al-
tinue that policy more energetically, and therefore, in ready in the grip of what was soon to become evident as
fact, with more ruinous effects. The fault lies, thus, the 1929 Depression.
chiefly, not in the legislators lack of sufficient informa- We became truly sovereign again under President
tion, but in the legislators rejection of information Franklin Roosevelt. Even Roosevelts political adver-
which is seen as contrary to the beliefs which have been saries among us were not able to challenge the Bretton
already ruining us over the recent thirty-five and more Woods fixed-exchange-rate system effectively, until
years to date. Like the man who persists in attempting to after the assassination of President John F. Kennedy.
impregnate a plastic dummy, the harder they believe, the We were undermined by the effects of that latter and
more disgusting the results of their performance become. other assassinations, and, gradually, with the events of
Since the establishment of our Federal Republic, the 1968 and the advent of the Nixon Administration, came
fundamental Constitutional law of our nation had been the floating- exchange-rate dollar, and the other capital
set forth as the Preamble of our Constitution. The pro- follies which have ruined our physical economy, and
motion and defense of the security and general welfare looted the lower eighty percentile of our families, more
of our republic, as much or more for coming genera- and more deeply, during the subsequent thirty-five
tions, as for the presently living, is the principle to years to the present date.
which all features of that Constitution are, and must be The most crucial, long-ranging fact about that 1763-
subordinated, including all amendments to the Consti- 2006 span of our own and the worlds history, is that the
tution introduced since the founding, and into future American System, as defined by the legacy of the Win-
generations to come. throps, Mathers, Logan, Benjamin Franklin, and the
It must be conceded, that we began as not only a first administration of President George Washington, is
weak nation, relative to the imperial power of the post- systemically antithetical to the Anglo-Dutch Liberal
1763 Anglo-Dutch Liberal power based in Europe, but system. Our Constitutional system and that of the An-
as victims of the ricochet from the orchestration of the glo-Dutch Liberals, are not congruent systems, but
French Revolution by Londons assets Philippe Egalit mortal adversaries, and have been so from February
and his accomplice, the Jacques Necker who played a 1763, to the present day.
key part, with A.R. Turgot, in bankrupting Frances Not only did Adam Smith write what the short title of
monarchy. We were, indirectly, the victims of the ef- his writing calls The Wealth of Nations; but, the pur-
fects of the Jacobin Terror, the effects of the wars of the pose of that propaganda tract, as Smith himself declared,
Napoleonic tyranny, and of the merry countesses of the was to incite the crushing of the forces of our Declara-
notorious Congress of Vienna. tion of Independence. Smith was a plagiarist personally
It was not until our republics victory over British assigned, in 1763, by Britains Lord Shelburne, to create
Lord Palmerstons puppet, the Confederacy, that the schemes to ruin both the economy of France and of the
U.S. became, and remained, in fact, a sovereign which English colonies in post-1763 North America.
could not be successfully invaded by foreign powers, Smith was no genius, but more in the character of a
until the ruinous George W. Bush, Jr., Presidency. caddis-fly larva, collecting pieces of flotsam from his
During most of the period since President Lincolns as- surroundings, to build his pupal protective intellectual
sassination, and more so since the assassination of Pres- cocoon. As a plagiarist, Smith relied chiefly on the pro-
ident William McKinley, there was a weakening of the slavery dogmas of John Locke, the brayings of the
Constitutional prescriptions for our Presidential system, Mont Pelerin Societys frankly pro-Satanic Anglo-
a weakening to which those assassinations contributed Dutch Bernard Mandeville,2 the doctrine of magic pro-
much, and placed our foreign commerce and trade jected by the pro-feudalist fanatic Dr. Franois Quesnay,
chiefly under the overreaching domination of an Anglo- and by that other notable Physiocrat, A.R. Turgot, from
Dutch Liberal financier power, a foreign financial
power which also reached deeply into our own domes- 2.Bernard Mandeville. The Fable of the Bees (London: Edmund
tic financial systems. Parker, 1723, second ed.). A modern reprint can be found in a 1988
We were only temporarily enriched by the looting, Oxford edition.

whom Smith plagiarized much of the most crucial tech- The ontological difference between the two rival
nical content of his The Wealth of Nations. systems, the American System versus the Anglo-Dutch
From the beginning of our Constitutional republic, Liberal system, is that the Anglo-Dutch Liberal system
the conflict between our American System of political- is based on the monetarist principle of usury, whereas
economy and the system of monetarist usury known as the American System of political-economy has been
the Venetian-like imperialist system of the Anglo-Dutch premised, from the start, on what Leibniz defined as the
Liberals, has represented the principal contending foes principles of physical economy.
within the domain of modern world economy. The fact Admittedly, both we rivals each employ monetary
that we and the British have been sometimes allies, has systems. The functional difference is, that our Constitu-
never lessened the axiomatic-like difference of species tional system uses, and regulates the monetary process
represented as these conflicting two systems. according to the intention to realize those purposes
The American System of political-economy, was, in which are identified by the Preamble of our Federal
principle, a continuation of that anti-feudalist system of Constitution. The Anglo-Dutch Liberal system, other-
society founded by the mid-Fifteenth-Century Council wise known as the British system of attempted global
of Florence, and by the successive steps of establish- imperialism, is a system designed and managed by fi-
ment of the first modern commonwealth forms of na- nancier-oligarchical predators in the specific interest of
tion-states, in Louis XIs France and Henry VIIs Eng- usury as such. John Locke, Bernard Mandeville, Adam
land, respectively. The policies of the Plymouth Smith, Jeremy Bentham, and the Haileybury School
settlement and the New England commonwealth of the generally, are typical expressions of the modern Liber-
Winthrops and Mathers, provided the model back- als monetarist system of usury.
ground for what would become our Constitutional re- The recovery of the U.S.A. from the disaster crafted
public about a century later. The revival of the efforts of under the leadership of President Calvin Coolidge and
those Winthrops and Mathers, during the course of the Andrew Mellons Herbert Hoover, was accomplished
Eighteenth Century, came in the form of the influence by President Franklin Roosevelts dumping of the pro-
of Gottfried Leibniz in shaping the social and economic fascist Wall Street gangs nearly fatal adherence to the
thought of those adult youth around Benjamin Franklin British free trade system. Roosevelt launched a return
and George Washington, such as Treasury Secretary Al- to the American System of political-economy implicit
exander Hamilton, who fought the post-1763 struggle in our Federal Constitutions Preamble.
for our national sovereignty, and for the crafting of our
Federal Constitution.3 The Strategic Conflict As Such
The conflict between the two leading systems of to-
days world, the Anglo-Dutch Liberal versus the Amer-
3. The February 1763 Peace of Paris established the Anglo-Dutch Lib-
ican System of political-economy, can be summed up,
eral system as the kernel of a virtual world-empire of a type modelled on
the medieval system of partnership of the Venetian financier-oligarchy in effect, as follows.
and the butchering anti-Semites and Moslem-haters known as the The Anglo-Dutch Liberal system, as the Mont Pel-
Norman chivalry. In a meaningful sense, when the Venetian financier- erin Society typifies that alien penetration (perhaps we
oligarchy lost its ability to function as a maritime power based in the should say, rape) of our nation, demands free trade,
Adriatic, during the fourth quarter of the Seventeenth Century, those
Venetians following the pathway of Paolo Sarpi, moved north, to mari- which means the unhampered reign of the usury prac-
time bases in England and the old Hanseatic region from Netherlands to ticed by slime-mold-like clusters of financier bandits.
the Baltic. This system of Sarpi and his followers, has been known as This predatory onslaught is typified in the extreme, by
liberalism to the present day. This is contrary to childishly Romantic the pack of hyenas called hedge funds.
images of a British empire as the product of a monarchy; that monarchy,
since William of Orange, but, most emphatically, since 1714, is an
The American System of political-economy, defines
always potentially expendable instrument of a slime-mold-like social money as our Federal Constitutional system does, as a
formation, represented by collaborating and competing financier-oli- monopoly of the Federal government. Whereas, the
garchs in the tradition of medieval bankers such as Luccas House of Anglo-Dutch Liberal systems commitment to mone-
Bardi. The idea of globalization as a liquidation of the existence of the
institution of the modern nation-state republic, is an explicit copy, in
tarists free trade, defines a Hobbesian system of each
intent, of the medieval system which crashed into a New Dark Age in war against all. The characteristic of the Hobbesian
during the middle of the Fourteenth Century. beast-man, is the Anglo-Dutch Liberal misdefinition of

FIGURE 1
ment of retained earnings in the form of the tech-
From a Productive Economy to a Services Economy nologically physical advancement of products
and productivity, preferably as closely held enter-
prises under creative leadership, within local
communities, as much as in the economy as a
whole.
In approximation, this means constantly
watching the shifts in productivity and standard
of living in county or multi-county area. It means
emphasizing the importance of growth of physi-
cal output per capita and per square kilometer in
each such area. It means promoting physical pro-
duction in agriculture, manufacturing, and re-
lated research and development, as primary. That
primary emphasis requires a continually improv-
ing standard of intellectual and social life. The
nation is then united by the development of the
common means of connecting and coordinating
these communities into a dynamic whole, that in
the sense of Leibnizs definition of dynamics, as
distinct from Cartesian-like, mechanistic-statisti-
cal ways of thinking.
Thus, for intelligent economists, reinvested
Source: EIRNS. earnings to this purpose and effect, should be
In the past three decades, the U.S. economy has been decoupled from taxed at a considerably lower rate than conspicu-
the American System of political-economy, and has devolved into the
services economy promoted by the Anglo-Dutch Liberal system. This ous consumption and runaway profits steered
devolution can be seen here on a county-by-county basis for the former into financial speculation.
industrial state of Ohio. All in all, the system of regulation, creating a
fair trade standard of practice, rather than the
human nature, which is, in fact, man as beast to man. intrinsically ruinous free trade standard, must be re-
The American System insists that the money system instituted, as the fair trade standard was approached
itself be managed to prevent the evils of the Anglo- under President Franklin Roosevelt. This return to a
Dutch Liberal and similarly predatory systems from fair trade standard would reverse the ruinous effects
operating in our republic, or in our relations with other which the rampage of pro-monetarist deregulation has
sovereign nations, as the policies of President Franklin unleashed upon our poor, and now very, very poor
Roosevelt expressed this excellent distinction. (See nation, as this rampage was begun, already, during the
Figure 1.) 1970s. Scrap the so-called Liberal reforms of the 1970-
Thus, our national goal, at least the national goal of 2006 interval; they have proven themselves a mon-
our intelligent and informed patriots, is to promote the strous failure.
increased production of physical wealth per capita and Now, in this report, we shall first consider those
per square kilometer. This, those of us who understand points of natural forms of constitutional law, as just
economy agree, means fostering scientific and Classical broadly identified, from a national standpoint. We shall
cultural modes of progress in the development of the then consider the application of the indicated principles
community and the individual person. This promotion of dynamics to solve the crisis within the U.S. domestic
of the improvement of the condition of the individual, economy. After that, we shall apply that to the field of
depends upon utilizing the discovery of higher princi- international relations.
ples in ways which increase the productive powers of Thus, to reach the proverbial bottom line for what
labor per capita and per square kilometer. On this ac- has been written above, the strategic situation we face
count, intelligent patriots prefer to promote the reinvest- is the following.

1. Science: Redeeming Our
Heathen Nation
On the surface, a capital budget appears to be a
straightforward proposition in cost and financial ac-
counting. However, the principles which underlie any
competent design of that budget, are profoundly scien-
tific, rather than ordinary expressions of financial and
related accounting. This scientific complexity is there-
fore unavoidable; whereas, allocating a programmed
loan is a relatively simple statement in mathematics, the
principles which predetermine whether or not the ex-
penditure will work out as intended, are, as I shall show
here, at a later point, a much deeper matter of the actual
science of dynamics than any customary accounting
practice is able to accomplish. Therefore, to design a
competent capital budget, is a challenge in the domain
of physical science, rather than mere accounting. More-
over, the choice of the kind of physical-science practice
needed, requires close attention to the special set of un-
derlying assumptions which are specific to the relevant
behavioral characteristics of the human mind.
Experience with the discussions of economic policy
which appear from within, or around the functions of
shaping and assessing the performance of the policies Courtesy of Nuclear Energy Institute
of government, shows us that most of the hoaxes into [P]rogress in the discovery of the application of the principles
which our law-making processes have become en- of physical science, such as nuclear and thermonuclear
trapped, such as the Enron swindle and related phenom- science, . . . expresses the true nature of mankind s powers and
assigned mission within this universe. Here, President
ena, recall the case of the embittered wife telling the
Eisenhower symbolically starts up the first U.S. commercial
children, You will not eat this week; your father, again, nuclear power plant at Shippingport, Pa., in 1954.
lost his weeks pay in the gambling house which lurks
on his way home from work. Such is the fools gold metheus Bound. Most tend to believe in what such
domain of gambling, the set of shady schemes known children of Paolo Sarpi as Thomas Hobbes did; they
by such names as financial derivatives and hedge believe in the doctrine of that Satanic Iago of Verdis
funds. opera Othello, the Iago who speaks of the cruel and
Therefore, this chapter of the report, will focus at- evil, Hobbesian god he serves.4
tention on the nature of the essential, underlying as- That Zeus typifies a terrible oppressor who com-
sumptions to be considered. That said, we now proceed mands the perpetual torture of the Prometheus who had
as follows. offended Olympus by giving the knowledge of the use
Americans of today are mostly heathen; that is to of fire, such as nuclear-fission power, to mankind.
say, even most of those who avow a belief in God, do Whereas, in fact, contrary to both T.H. Huxley and the
not actually believe in that Creator presented in Gene- Frederick Engels of Huxleys time, the human being is
sis1, who made man and woman in the likeness of no monkey, no mere ape, but a creative being made
Himself. When you speak the word God, most do not with the built-in potential to be creative, contrary to the
react by thinking of the living Creator of what the great cruel law of Zeus; the human being is a person in the
and good Albert Einstein described as a finite but likeness of the Creator.
boundless universe in which we dwell. In practice,
most, even still today, prefer a deity more in the nature 4. This soliloquy appears, in the second version of the opera, as a mod-
of the evil Olympian Zeus of the poet Aeschylus Pro- ification made by Verdi, at the prompting of Boito.

This is not fable; it is history. It is also
theology. It is also physical science. It is
the essence of any competent teaching and
practice of modern economics.
For us who know the truth about man-
kind, the human mind is distinguished
from the characteristics of all beasts. This
distinction is expressed as the human indi-
viduals being creative by virtue of the
unique nature of his living species; it is ex-
pressed as progress in the discovery and
application of the principles of physical
science, such as nuclear and thermonuclear
science. It expresses the true nature of John Winthrop Increase Mather
mankinds powers and assigned missions
within this universe. This is a creativity we
recognize as spiritual, saying this to signify
that it inhabits the living flesh, but that it is
of a higher ontological quality of fully ef-
ficient being, higher than that of a mere
animal which we might eat as food. Our
mortal human body is the host, and ser-
vant, from conception, of something which
is so defined as the personal spiritual being
which possesses the power of true creativ-
ity. This is the mission which the Creator
assigns to mankind, to assist in the con-
Library of Congress
tinuing work of universal, intrinsically, on- Cotton Mather
Shakespeare s Iago
tologically anti-entropic creation.
There are those confused and contrary In contrast to the Satanic Iago in Shakespeare s Othello, the founding
fathers of the Plymouth Colony, the Mathers and the Winthrops, believed that
fellows, who may worship the Sun, but man s mission in life was to do good and improve mankind. Here, the 19th-
hate the processes of nuclear and thermo- Century American actor Edwin Booth portrays Iago.
nuclear fusion on which the existence of
our Solar System depends. Such unfortunates express The superstitious gnostic believes in a static, not a
that Luddite-like strain of perversity which has become developing universe. He or she misdefines the universe,
typical of much of the ranks of Baby Boomers of the accordingly, as a universe whose process of perfection
Americas and Europe, a perversity which has contrib- has been ended. For the gnostic heathen of this persua-
uted greatly to the suffering rampant around our nation, sion, everything is now predictable, and, for him, all
and the planet today.5 that will exist is, therefore, virtually inevitable. That de-
luded gnostic, therefore believes, that since, in the
5. On the subject of conception of the human individual, the folly of the gnostics opinion, God must have created a perfect uni-
so-called fundamentalist is that he, or she, thinks like a Cartesian, verse, even God Himself has thus eliminated His own
viewing individuals as like particles bombarding one another in a gas
system. The existence of living systems is never kinetic, but always dy-
capacity to modify the universe thereafter. As the be-
namic in the sense of the term dynamic as encountered in the work of loved Philo of Alexandria and others have warned, im-
the Pythagoreans, Plato, and Gottfried Leibniz. Society must be de- plicitly, Satan, according to the Delphic gnostic, ac-
signed to promote the conditions of human life. We can not change a bad cepted no such lawful, principled restriction; thus
society into a good society, simply one on one; we must change the axi-
omatic design of the society as a whole, just as the U.S. Constitutional
system is morally superior to any of the relics of feudal tradition in promote scientific and related creativity as the constitutional principle
Europe, even still today. To promote human life, you must efficiently of lawfulness on which the societys function is premised.

affording a license given to Satans faithful by the im- the beasts, which lack that quality of efficiently creative
plicitly entropic, statistical laws, false laws which, like intelligence.
todays implicitly Satanic hedge funds, were assumed This quality of intelligence is mankinds nature, and
to fetter the Will of the Creator. Those who place trust his and her mission, as Genesis1 stipulates in its own
in Satans power, so, are great fools. terms. This is the proper refinement of our understand-
Contrary to the brutish fatalism of such gnostics as ing of the great principle lodged within the Preamble of
those: in fact, as the evolution of the Solar System from our Federal Constitution. Mankinds duty is not to
a solitary, fast-spinning young Sun attests, it is an in- adapt to the universe as we find it, but to improve it in
stance of the principle of continuing, anti-entropic cre- a distinctly anti-entropic way. It is to be the agent, the
ation, rather than a fixed, entropic universe. The Cre- instrument of the Creator, in this fashion. Our mission
ators always developing, always finite, but unbounded is to improve mankind, and the individual member of
universe, is a processan intrinsically anti-entropic our species. This is a principled mission assigned to
processof continuing creation, a process of Creation each of us, the mission of contributing to the improve-
which it is mankinds function and duty to assist. So, we ment of the human condition on this account, and to
now move outward to Mars and beyond, to improve the defend the principle of anti-entropic progress so that we
management and development of what we discover out do not retreat to a poorer condition of mankinds exis-
there. Science shows us that the Creator is a perfectly tence and role, than was achieved before us.
creative, outgoing Being, governing a permanent reign
of unending, anti-entropic creation. Consequently, our Reason vs. Logic
assigned duty is to perform the universal missions What we have considered in this chapter thus far,
which that commitment by the Creator implies for us. must also be restated as revealing the essential nature of
Our comprehension of these and related matters, the conflict between reason and science, on the one
has been assisted notably by the work of Russias Aca- side, and formal logic, on the other. This is otherwise
demician V.I. Vernadskys development of the proof of known as the great principle which the successor of
the distinction among three phase-space domains: the Leibniz, of Carl F. Gauss, and of Lejeune Dirichlet,
non-living, the Biosphere, and the Nosphere. These Bernhard Riemann, presents in his groundbreaking,
three, dynamically intertwined phase-space domains, 1854, Gttingen habilitation dissertation, on the subject
and the principles which they express, reflect the fol- of the hypotheses which underlie geometry. From the
lowing considerations implicit in the proofs supplied starting-point embodied in that dissertation, as contin-
by Vernadsky, and also by others supporting the princi- ued through such later works as his treatment of Abe-
pal relevant discoveries. lian functions, and his defining of the dynamics of
As Vernadsky sums up the evidence for living sys- physical hypergeometries, Riemann lays the basis for
tems, as during 1935-1936, although the chemical ele- conquering the greatest mysteries which had usually
ments participating in living processes, are taken from befuddled the study of political-economy earlier.6
the same domain as non-living materials, the living pro- The usual, modern university student of today, grad-
cesses associated with the Biosphere, express a princi-
pled quality of specifically dynamic organization of a 6. Late during his life, as at the Princeton Institute, in the company of
process which, otherwise, does not appear within the Kurt Gdel, Einstein gave further elaboration of the argument he made
against the reductionist sophistries of the celebrated 1920s scientific
domain of non-living processes as such. Similarly, the conferences. He emphasized that the heart of the achievements of
processes of society employ the materials of the abiotic modern physical science was lodged between the book-ends of the fun-
and Biospheric domains, but are organized by a dy- damental contributions of Johannes Kepler and Bernhard Riemann.
namic form of principle of efficient intelligence which Gdels famous 1930 demonstration of the absurdity of the fundamental
premise of Bertrand Russells Principia Mathematica (for which the
does not appear in any lower order of living processes. virtually autistic John von Neumann and his kind never really forgave
I repeat: the empirical evidence proving the latter Gdel), points toward the relevant affinities of Einstein and Gdel. The
distinction, defines a principle of intelligence not found conception of dynamics reflected in the development of Einsteins
in the biology we associate with lower forms of life thinking, and the view of the principle of dynamics embodied in the
work of Academician V.I. Vernadsky, are the key to the practical mas-
than the human individual personality. It is this higher tery of economics as a department of anti-entropic physical science
quality of efficient intelligence, which distinguishes the today. The distinction between merely formal, and actually physical hy-
Creator and the human individual ontologically from pergeometries, is crucial for any representation of Riemanns work.

uates in virtual ignorance of the jumbo of the marketplace today. It
fact that the true principles of ge- is the relationship of the mortal in-
ometry and physical science, as- dividual to the Creator, and to the
sociated with the name of Sphaer- ordering of Creation as a whole,
ics, were established under the which must be adopted as the
Pythagoreans and the school of point of elementary reference in
Plato, before the production of defining the actual identity of each
the Sophist doctrines of Euclids of our selves within the context of
Elements. These great ancient a living process of continuing
principles of Plato and others Creation.
were reestablished as modern sci- It is by this approach, that the
ence through the fundamental citizen were enabled to secure a
discoveries of such followers of firm intellectual grasp of his or
the Renaissances Cardinal Nich- her personal relationship to the
olas of Cusa as Leonardo da work of the Creator. The citizen
Vinci, Johannes Kepler, and their must be assisted to see his or her
followers, such as Pierre de mortal life in terms of the signifi-
Fermat, Leibniz, Gauss, Dirich- cance which that brief span of
let, and Riemann, all before the personal life has for generations
process of development within earlier and later. In this way, by
the life-long work of Albert Ein- making a knowable idea of im-
stein. Riemanns 1854 habilita- Jeanne dArc triumphed over a tortured death mortality of the incarnate human
tion dissertation, thus opened the at the hands of the brutish English chivalry. personality concrete for the in-
door to Riemanns own founding The citizen must be assisted to see his or her
mortal life in terms of the significance which
formed practice of the living citi-
of the notions of those dynamics that brief span of personal life has for zen, a sense of the immortal per-
of physical hypergeometries on generations earlier and later. sonal relationship of the mortal
which the conceptual framework individual personality to the im-
of a competent modern economic science, as a body of mortal Creator is gained. In this way, we foster the moral
physical science, as to principle, depends today.7 sense which it is essential to foster in the citizen of the
However, the root of all this can be traced to prece- republic, if the survival and prosperity of our nation is to
dents akin in intent to the referenced definition of the be assured during the course of generations ahead.
nature of man and woman encountered within Genesis1. The investments which must be made now, if civili-
In presenting a true economic science to our citizens, zation were to continue on this planet, put relatively
we must succeed in bringing the view of the moral reali- heavy emphasis on physical-capital investments which
ties of the practice of economic science, back to the sense have a projected life span of a quarter to a half-cen-
of personal identity of the citizen as a human personality. tury, and even longer. This is a span, reaching toward a
To understand ourselves, we must move away from the time beyond the life-expectancy of todays parents of
customary, petty, neo-Cartesian statistical mumbo- young adults, and is, nonetheless, an investment which
must be made by those living now. The only assurance
7. Riemanns work to this effect, by him explicitly, is associated with that the promise of the future to the living will be ful-
the way in which the notion of Analysis Situs, as introduced by Leibniz, filled, is that the will to ensure that that future benefit, is
is treated as a crucial conception in Riemanns own work. The compari- securely embedded in the work and conscience of pres-
son of the treatment of this notion of Analysis Situs by Riemann, as this
had been introduced by Leibniz, impels us to recognize antecedents for
ent and future generations. Immortality, not greed, is
this crucial aspect of the notion of dynamics as inherent in the Pythago- the only honest motive of the true citizen of a republic
rean treatment of the distinct notions of point, line, and solid, in a way such as our own. This sense of immortality is not mere
absolutely contrary to Euclids definitions. It is associated with the fame; even the individual in the relatively meanest cir-
famous aphorism of Heracleitus, as this is pertinent to Platos argument
in his Parmenides. It is implicit in Cusas De Docta Ignorantia, and
cumstances can achieve it.
permeates the method of development of the founding of modern astro- Again, immortality is not fame. Some of the dearest
physics in the work of Kepler. immortals, have lived lives heaped with official and

popular defamation. Immortality is expressed by the FIGURE 2
enduring worth, for humanity, of the life which has The
FIGURE 2
Paradoxical
The ParadoxicalImplications ofthe
Implications of theEquant
Equant
been led. If such a person were despised, betrayed, and
doomed in the experienced circumstances of mortal
life, like Jeanne dArc, his, or her worth were all the
greater for that reason.
A sane, which is also to say trustworthy, notion
of those qualities of certainties which transcend the
death of the mortal living individual, partakes of the
same quality of the will associated with universal phys-
ical principles. The ability to adopt a confident fore- Sun
sight into the future outcome of present activity, re-
quires our attention to the notion of the distinction
between ideas corresponding to experience of discrete
events of sense-perception, and also corresponding to
ideas associated with efficiently universal principles to
which discrete events are subordinated. Keplers
uniquely original discovery of universal gravitation,
typifies the notion of universal physical principles
known to modern experimental science.
Those notions which correspond to universal physi- Kepler used the construct of the equant (the dashed circle) to
cal principles of physical science, as also to valid Clas- demonstrate the movement of the constant angular speed of a
planet while it maintains a uniform distance from the center of
sical modes of artistic composition and their respective
another circle as it orbits the Sun (the off-center dot of the
modes of performance, constitute the body of human larger circle). An animation and fuller explanation of the
reason, as distinct from the intrinsically imperfect, infe- equant by the LaRouche Youth Movement can be found at
rior domain of mere logic. http://www.wlym.com/~animations/part2/16/aside.html.
The universal physical principles, as their ontologi-
cal nature is typified by Keplers discovery of gravita- least action.
tion as being a principle of harmonic organization of This aspect of the development of the notion of cru-
the Solar System, have a demonstrably higher author- cial fundamentals of modern physical science, by
ity, on account of truthfulness, than any simple sense- Kepler, Fermat, and Leibniz, most notably, is clarified
experiences; but, nonetheless, while they are principles by Riemanns 1854 habilitation dissertation, in which
whose efficient existence is conclusively demonstrated only discoverable universal physical principles are the
experimentally, they are not in themselves tangibly dis- foundations of real knowledge, and other experimental
crete objects of sense-perception in any ordinary way. knowledge is merely subsumed by those experimen-
These discovered, universal principles, belong to a tally discoverable universal physical principles, princi-
category of experience which Kepler was the first to ples which are, for him, the expression of the hypothe-
define, through exploring the paradoxical implications ses which underlie physical geometry.
of the equant, as showing the ontologically infinitesi- When we take into account, that that knowledge,
mal reflection of any universal physical principle.8 This contrary to Euclids dogma, was richly developed in
was the discovery of the physically infinitesimal, a dis- Classical culture prior to the death of Plato, we are
covery accomplished experimentally, by Kepler, which obliged to recognize the difficulty commonly experi-
explicitly informed Gottfried Leibnizs uniquely origi- enced on this pivotal point, even by professionals with
nal discovery of both the infinitesimal calculus, and his advanced training today. That difficulty is, in large part,
refinement of that discovery, its refinement expressed the effect of the influence of those fallacies customarily
as the catenary-cued, physical principle of universal traced to the sophistries of Euclids Elements. Euclids
frauds against a perfectly anti-Euclidean geometry,
8. Although, this is already implicit in the work of the Pythagoreans such as that anti-Euclidean physical geometry implicit
and Plato, et al. in Gauss and explicit in Riemann, are the most effi-

ciently relevant illustration, still today, of the manner in nomics and very closely related matters of policy.
which mere logic lends itself to the destruction of The best way to understand the ancient science of
human reason. (See Figure 2.) Sphaerics in a modern way, is to master, at least, the
Mysterium Cosmographicum, New Astronomy, and
Euclids Fraud Harmony of the World of Johannes Kepler.9 The par-
So, the legacy of Sophistry embedded in much of the ticular relevance of the reference to that study by read-
body of generally accepted economy, and related law, in ers, on this occasion, is not only that Kepler provides
modern Europe and the U.S.A., is to be traced directly to the reader with a rigorous way of looking at the stars
the mistaken adoption of Euclids Elements as the and planetary bodies as we think we see them, as in the
model for the teaching, and practice, of the foundations nighttime sky. Since we are on the surface of a planet
of physical science in modern schools. The mechanistic moving within the Solar System, which is moving
folly which Ren Descartes, and other modern empiri- against the constellations beyond, much study and
cists, brought to modern European science, is an exam- some very rigorous thinking is required, to reach the
ple of this. The state of mind which this habit induces in point at which the observer actually knows what he or
both popular and professionally educated practice, is re- she is seeing in that experienced spectacle. It is not suf-
sponsible for much of the incompetence in science ficient to believe that that doctrine is truthful; the stu-
which spills over into the way in which people gener- dent of the night must live through the process of expe-
ally, and, also, many leading political figures today, riencing that discovery as Kepler did.
think about the named subject of economics. On this account, Kepler is unusually significant in the
Like most of the systemic errors which permeate history of science in several ways, but, most immedi-
cultural traditions, the legacy of the form of Sophistry ately, in the fact that he takes the reader of his works,
called Euclidean geometry, permeates, hereditar- such as, we might hope, relevant members of the U.S.
ily, a very large ration of the literate and related tradi- Congress and their staffs working on matters of national
tions of European culture, since the time of ancient and international economic policy, through each step of
Greece following the death of Plato. It has continued to his thinking over decades of work of discovery, so that
be, thus, an important factor in causing the lack of the the thorough student of his work is able to relive the
ability of even most ordinary people to think compe- actual experience of each step of those successive dis-
tently about economics today. coveries. It is crucial that policy-shapers not merely
The proper essentials of European physical science know some hearsay in this field, but actually grasp the
are met as developed in what we call ancient Classical conceptions as matters of principle, principles of experi-
Greece. This development was expressed as a science ment, rather than merely repeatable opinions. On this ac-
which was built on foundations traced explicitly to an- count, Keplers written work is the best education in the
cient Egypts practice of what was recognized by experience of rigorous modern forms of scientific think-
Greeks, such as the Pythagoreans, by the name of ing, including the premises needed for the comprehen-
Sphaerics. This was the method of Plato and his school, sion of dynamics, the best available in the published lit-
and had also been the foundation of the less well- erature of modern European civilization, still today.
marked expression of the tradition passed down from A more adequate appreciation of the implications of
Thales and Heracleitus. Keplers method, requires reliving surviving knowl-
To understand the ancient foundations of modern edge of the methods and achievements of those ancient
European science, we must focus our attention, initially, Greeks associated with the methods of Sphaerics. This
on the role of the principles of Sphaerics, on which com- is a method identified by the Classical term dynamis, a
petent forms of ancient Greek science were based, but term whose meaning Gottfried Leibniz represented by
which the concocted Sophistry of Euclidean geometry introducing the term dynamics, in the course of expos-
was intended to discredit and replace, then, as, later, by
such Eighteenth-Century empiricists as the willful 9. Johannes Kepler, Mysterium Cosmographicum (The Secret of the
hoaxsters Voltaire, de Moivre, dAlembert, Euler, and Universe), trans. by A.M. Duncan (New York: Abaris Books, 1981);
Johannes Kepler, New Astronomy, trans. by W.H. Donahue (Cam-
Lagrange. Our attention to that matter here, is limited to bridge, U.K.: Cambridge University Press, 1992); The Harmony of the
those aspects of the subject which pertain weightily to World by Johannes Kepler, translated by E.J. Aiton, A.M. Duncan, and
sources of the misguided popular thinking about eco- J.V. Field (Philadelphia: American Philosophical Society, 1997).

ing the frauds of Ren Descartes.10 Riemanns 1854 ha- like any modern Sophist form of academic, or other
bilitation dissertation, implicitly, revives the principles moral degenerate: This is who, and what I have chosen
of Sphaerics; Riemanns treatment of Abelian func- to believe on this particular occasion.
tions, then, leads toward the general principle of dy- The real physical universe, has utterly no resem-
namics expressed in the notion of a physical (rather blance to the Euclidean outlook and its premises.
than merely formal) dynamics of hypergeometries.11
Thus, in the instance of the work of the Sophist Euclid & the New Oligarchical Model
Euclid, we are dealing with the Euclideans reification Since the beginning of European civilization, the an-
of the theorems already developed by Euclids prede- cient roots of the current world crisis are to be found in
cessors, such as (implicitly) Thales, Heracleitus, and, a social phenomenon known to historical times as the
clearly, the Pythagoreans and Platos own immediate oligarchical model, as that model was typified by the
circles otherwise. The products of the principle of dy- imperial systems based in Southwest Asia. The clearly
namis, which governed the scientific achievements of documented struggle between those systems and the at-
the Classical Greeks prior to Euclid, were maliciously tempts to establish a system of sovereign nation-states,
reformulated by Euclid et al. as alleged products of a set as our American System best typifies the notion of a re-
of definitions, axioms, and postulates which implicitly public, is that traced by the poet, historian, and play-
assumed a four-square linear universe of the type wright Friedrich Schiller, as the model conflict between
later echoed by the incompetent Ren Descartes. The the republican initiative associated with Solon of an-
assumption was made by Euclid et al., that all that is cient Athens and the Lycurgan Sparta which meets the
true was that which could be derived, by deduction, requirements of what is termed the oligarchical model.
from a set of definitions, axioms, and postulates which The essence of the struggle against the oligarchical
presumed that the universe is the solid, simply mechan- model rooted in Asia, as known to European history
ical extensions of a flat surface, in which the sphere since that ancient time, is treated by the dramatist Ae-
itself is, as elliptical functions show, misconceived schylus in his Prometheus trilogy, as represented by the
misconceived as if it were a product of that mechanical, middle section of that trilogy, Prometheus Bound. The
solid extension of a flat surface. torture of Prometheus, on the charge of providing man-
The definitions, axioms, and postulates are never kind with knowledgeable use of universal physical
proven by the Euclideans and their followers; they are principles, as this is charged against Prometheus by the
simply asserted to be self-evident, or, as it is said, Olympian Zeus of that drama, is echoed by the refer-
apriori. In effect, the Euclidean is asserting, simply, enced case of Euclids Elements, and by the related
case of the introduction of the Cartesian system of
10. E.g., Leibniz, Specimen Dynanicum (1695). See the crucial Leib- mechanistic-statistical method, as an opposition to the
niz, A Brief Demonstration...,(1686) in Gottfried Wilhelm Leibniz dynamic scientific method of the modern echo of the
Philosophical Papers and Letters, Leroy E. Loemker, ed. (Dodrecht:
Pythagoreans, Socrates, and Plato, as typified by Nich-
Luwer, 1989), where the famous specific criticism of Descartes incom-
petence in method is presented. olas of Cusas De Docta Ignorantia, and the revolu-
11. The principles of Sphaerics were preserved in the school of Platos tionary discoveries in modern science by the anti-re-
Academy, as exemplified by the work of Eratosthenes. With the deaths ductionists Kepler, Fermat, Leibniz, Riemann, et al.
of Eratosthenes and his correspondent Archimedes of Syracuse, and the The Euclidean view, was given its modified modern
rise of Rome to imperial status, European science virtually died, but for
exceptions such as the Baghdad Caliphates cultural zenith and Ibn expression, in those arguments of Descartes which
Sina. These lost principles were revived, chiefly, by Cardinal Nicholas Leibniz demolished with scientific proof of the require-
of Cusas De Docta Ignorantia, whose followers included, most nota- ment of the dynamic principle, which is traced to an-
bly, Luca Pacioli, Leonardo da Vinci, and Kepler. This is reflected, most cient Pythagorean Sphaerics.
clearly, in the crucial elements of the work of Pierre de Fermat and Leib-
niz, as in the leading teacher of mathematics during the middle through
The intrinsically fallacious Cartesian model, as an
late Eighteenth Century, Gausss teacher Abraham Kstner. This is to outgrowth of Euclids work, assumes, thus, axiomati-
emphasize that the tradition of anti-Euclidean Sphaerics reaches back cally, the percussive motions of abstract particles bang-
into the astrophysics of the ancient Egypt from which the relevant ing each other in empty space and time. To grasp the
Greeks derived the foundations of their own practice. It were not only
fair, but precise to say that Riemann realized the principles of physical
practical significance, for today, of the destructive ef-
anti-Euclidean geometry already clearly implied in the work of Cusa, fects of the Cartesian form of mechanistic-statistical
Leibniz, Jean Bernoulli, Gauss, Dirichlet, and others. method, as in commonplace practice of the economics

profession, we must return attention here, in a brief sum- Europe, to the present day. Most notably, for the pur-
mary, to the sweep of ancient through modern European poses of this report, the Venetian system of financier
history leading through and beyond a medieval develop- oligarchical rule, also outlived the Fifteenth-Century
ment usually referred to as Europes New Dark Age. rise of modern civilization. It is those nasty remnants of
It is necessary to treat the conflicts so defined as a the Norman and Venetian systems, the children of an
matter of physical science. To understand the origins of earlier, evil medieval system, which are the core of the
the relevant conflict within the body of modern physi- principal external, and also internal enemies of our U.S.
cal science, we must locate the source of this conflict in republic today.
the persisting role of the ancient oligarchical model in However, those remnants underwent a crucial evolu-
modern society today. On this account, the reduction- tion, an evolution into a form which served as a parasite-
ism of the ancient Greek reductionists, such as the El- like adaptation of medieval relics to the setting of
eatics and Euclid, and modern empiricism, are to be modern European civilization. One expression of this is
recognized as essentially methods of social control in- modern European fascism, which emerged, in its germ-
tended to promote the interest of the oligarchical model form, as a reflection of the Norman Crusades under
of society, which the Anglo-Dutch Liberal model ex- Spains brutish, anti-Semitic Grand Inquisitor, Toms de
emplifies for modern society now. Torquemada. Torquemada was a modern relic of the
That connection between science and social sys- Crusader system expressed, later, as both the Napole-
tems, is the pivotal, global issue underlying the great, onic system, and the outgrowth of the Napoleonic model
oncoming crisis in world civilization today. as the pro-satanic excrescence recognized as modern
Our objective in presenting this summary at this European fascism. Today, the systemic principle of
point in the report, is to clarify the sources and nature of modern fascism, as traced from Toms de Torquemada
the pro-oligarchical form of mental behavior which has and Napoleon Bonapartes Martinist political tailor,
repeatedly driven European civilization into great and Count Joseph de Maistre, is also costumed in such
deep waves and periods of economic and related col- cloaks as those worn by the neo-conservatives of the
lapse, during the course of the entire sweep of European Mont Pelerin Society and American Enterprise Institute.
culture to date. The Venetian side of what had been the feudal form
To put the contemporary expression of that ancient of Venetian-Norman system, also evolved in ways of
and continuing issue into a modern perspective, con- adapting itself to the conditions defined by the emer-
sider the following line of approach. gence, out of the great Fifteenth-Century Renaissance,
As I have indicated above, and have presented this of that commonwealth form of modern sovereign na-
case in locations published earlier, the Anglo-Dutch Lib- tion-state which was the underlying intention of the es-
eral system of usury emerged as a modified form of its tablishment of our U.S. Constitutional republic. This
medieval predecessor, a predecessor which had been the emergence of a form of neo-feudalism, appeared as the
combined reign shared between a Venetian financier oli- New Venetian party under the leadership of Paolo Sarpi.
garchy and the Norman chivalry. The actual medieval This Sarpi is known for his role in shaping such person-
system is associated with the emergence of the Norman alities as his lackey, the hoaxster Galileo Galilei; as
role in both the Albigensian Crusade and a crusade usu- Englands Sir Francis Bacon; as Galileos apprentice,
ally identified as the Norman Conquest. It is the heir of Thomas Hobbes; and, later, as Ren Descartes, John
the wicked, actually anti-Christian system of all of the Locke, and the Eighteenth-Century empiricists David
Crusades. It is otherwise identified as the ultramontane Hume, Abraham de Moivre, Jean le Rond dAlembert,
system. That medieval system was driven, by its own, Leonhard Euler, Joseph Lagrange, Immanuel Kant, et
internal, systemic follies, into a self-collapse known as al. This new form of the Venetian system is what is
the aforementioned medieval New Dark Age. known today, either as empiricism, or Kantianism, or as
However, the remnant of the Norman chivalrys such more extremely decadent outgrowths of empiri-
power remained as a ruling force in England, in particu- cism as the radical empiricism, including what is known
lar, until the fall of King Richard III. Although the ac- as logical positivism, of Bertrand Russell and his pres-
cession of Henry VII marked the entry of England into ent-day devotees.
modern history, the cultural effects of the medieval For strategic-historical reasons, the center of the
system have lingered, as through most of continental current political expression of the power of the empiri-

cist New Venetian party, was produced, as a I have said
here earlier, by the latter quarter of the Seventeenth
Century, as the New-Venetian tyrants of Anglo-Dutch
Liberalism.
As I have elaborated on this principled issue of
competent modern political-economy in numerous lo-
cations published earlier, the difference between the
simply Aristotelean dogmas of medieval times, and
Sarpis New Venetian party, was that Sarpi et al. dredged
the gutters of medieval life, to resurrect the figure of
William of Ockham; this resurrection, insofar as it has
been a putative resurrection of the original Occam, is
the root of the most significant corruption, historically,
of both modern scientific teaching and practice of what
passes among the more literate credulous for both phys-
ical science, and for the Anglo-Dutch Liberal varieties
of modern Anglo-Dutch Liberal (and also London-
spawned orthodox Marxist) dogma in the field of po-
litical-economy.
This became what the standard of Classical scholar-
ship would define as the new oligarchical model.
The Subject of Modern Sophistry

The work and influence of Cardinal Nicholas of
Cusa, is typified by the combination of his works in de- clipart.com
fining the principle of the modern sovereign nation- Christopher Columbus studying the map for his voyage,
state, in his Concordantia Catholica; his founding of provided by the circles of Nicholas of Cusa. Columbus s
modern physical science, beginning with his De Docta voyage grew out of Cusa s plan for transoceanic explorations
Ignorantia; his precedent for the 1648 Peace of West- to engage other parts of the planet, outside a Mediterranean-
centered Europe.
phalia, De Pace Fidei; and, his launching of the plan for
what became Christopher Columbuss voyage of re-
discovery of the continent lying across the Atlantic tems relics within Europe, still today.
Ocean. These discoveries, and their offshoots, created a My late collaborator, and professional historian H.
form of society, the science-driven development of the Graham Lowry, summarized the most crucial turning-
productive powers of labor under the modern, com- points in that development of European civilization
monwealth form of sovereign nation-state. within North America. 12
In response to the resurgence of the Venetian system, As the military writings of Niccol Machiavelli illus-
which had occurred conspicuously in the aftermath of trate this point, the superior power of the city and state
the Fall of Constantinople, Cusas proposal for trans- under the new system of government, spelled the defeat
oceanic explorations to engage other parts of the planet, of the attempts of the medievalists to regain their power,
outside a Mediterranean-centered Europe, led, most unless the oligarchical forces made certain concessions
significantly, to the system of development in the Amer- in their doctrine of practice. This is the significance of
icas out of which the U.S.A. emerged. As I have stated the influence of the New Venetian party of Paolo Sarpi.
the case as succinctly as possible, on various occasions The choice thus confronting Sarpi et al. was that, on the
over recent decades, the ideas upon which our unique one side, unless the neo-feudalists adapted to the pres-
form of constitutional self-government was premised, sures of scientific and technological progress, they were
were to carry the goals of modern European civilization
to what we might have hoped would have been a safe 12. H. Graham Lowry, How the Nation Was Won (Washington, D.C.:
distance from the hegemony of the oligarchical sys- Executive Intelligence Review, 1988).

foredoomed to defeat. Yet, if they accepted the underly- for defining the appropriate notion of the meaning
ing principles of generation of scientific progress, they of universal, were finally brought properly into
were politically doomed, as a virtual species of exis- focus through Keplers original work in defining, first,
tence, by the antiseptic action of their own hand. the principle of gravitation for the alignments of Sun,
Empiricism typifies the attempt by Sarpi and his fol- Earth, and Mars, and, later, for the composition of the
lowers to resolve this paradox. Their compromise was, Solar System. As Archytas construction of the dou-
to use, selectively, certain discoveries, as the empiri- bling of the cube illustrates in a dramatic way, the on-
cists associated with the name of Isaac Newton, fol- tologically universal is that which, as Albert Einstein
lowed the lead of the Sophist Galileo in plagiarizing the emphasized, is implicitly as big as the finite and
work of Kepler, to appear wise, while, at the same time, boundless universe itself, and which, therefore, is also
working to castrate knowledge of the actual work of expressed locally as a power which is infinitesimal in
Kepler. Their Sarpian intent was to obscure the meth- the sense of the ontologically existent, rather than oth-
ods by which scientific progress would have an effec- erwise.
tively independent development, such that the indepen- This quality of experimentally premised conceptual
dent populations generally would no longer submit to evidence, which is associated, like the Pythagorean
oligarchical models of government. comma, with the notion of universals, implicitly defines
This neo-Venetian policy is the foundation of em- the physical universe as composed not of, but by uni-
piricism, as Sarpis lackey Galileo typifies this, and as versal principles of this quality. These do not represent
followers of Galileo such as Thomas Hobbes, Des- a perfected set of such principles, but a set undergoing
cartes, Locke, Hume, Kant, et al., typify the empiricist implicitly anti-entropic developments. Any event in
efforts to weaken and control scientific discovery that universe is acting upon, and is acted upon by that
through the mystifications associated with empiricism. universe, as Leibniz makes this point in, as referenced
The pedagogical mechanisms employed to induce above, his sundry, anti-Cartesian writings on the sub-
that intended effect of the influence of empiricism, are ject of dynamics. This anti-entropic quality of the uni-
predicated upon the Euclidean models use of the de- verse so defined, is echoed as the implications of Ke-
fective method of a body of practice premised on a set plers empirical demonstration of the problematic
of so-called self-evident, apriori definitions, axioms, character of the implicitly anti-entropic notion of the
and postulates. As I have already indicated, earlier in paradox of the equant.
this chapter, competent physical-scientific practice Principles are not something amid, and as if con-
harks back to the method of Sphaerics employed by the necting Cartesian-like objects in a pair-wise fashion.
Pythagoreans, Plato, et al. It does not tolerate any They are the essential, existing matter of which the uni-
apriori sorts of axiomatic-like assumptions. verse is composed as a universe. It is a self-developing
In competent scientific method, for as far back as universe, in which essential action is expressed as, or in
we know a recognizable scientific practice, science is resistance to efficient action supplied by, for example,
premised upon the notion of universals. The relevant the human individuals will. This is, essentially, dynam-
notion of universals is associated, primarily, with ce- ics as its experience is traced in known history to the
lestial observations, especially observations which method of the Pythagoreans and Platos circles.
express the characteristics of astronavigation. On this This notion of dynamics, is the essential subject of a
account, the most interesting quality of the ancient ev- science of physical economy. Human willful action in
idence reflects adducible cycles of the North magnetic this domain is bounded efficiently by these expressed
pole.13 The deep implications of this point of reference notions of dynamics for us. That means, in practice, that
competent practice of economics as a science, proceeds
13. Young adults associated with me, have founded an internet publica-
from the whole process as a starting-point of reference,
tion entitled DYNAMIS (Dynamis), whose December 2006 (Vol. 1. No. and proceeds from that conception to determine the
2) includes a translation, by Tarrjana Dorsey, et al., of Carl F. Gausss effect of either local actions, or local inactions, upon
Introduction to his 1838 Allgemeine Theorie des Erdmagnetismus the development of the process considered as a whole.
(General Theory of the Earths Magnetism). See http://science.la-
rouchepac.com/publications/ dynamis/issues/december06.pdf, p. 25.
These immediately foregoing considerations situate
This work by Gauss has implications brought out by Dirichlet and Rie- the significance of Riemannian dynamics expressed in
mann, successively. terms of physical hypergeometries.

2. The Dynamics of U.S. Recovery sonal freedom; and the opposing view, which implicitly
defines a society self-doomed to a great catastrophe,
The primary feature of any form of society congru- unless it mends its ways in time. The opposing, latter
ent with the essential distinction between man and view is typically premised upon the kinds of practiced
beasts, is the societys reigning, practiced emphasis on folly which have come to dominate U.S. national prac-
the human individuals intrinsically sovereign, cogni- tice, increasingly, during the course of the recent four,
tive powers. These are the powers which are, at the post-President Kennedy decades.
least, the potential which is associated with each and Ironically, when the U.S.A. had put men trium-
every individual human mind. That is the power ex- phantly on the Moon, the changes in leading trends of
pressed by a sovereign individual mind, a power of the moral and economic thinking which had already been
universe, thus comparable to universal gravitation, expressed by the revolt of the 68ers, had produced a
which is expressed as Vernadskys dynamic principle of culturally diseased condition which, by the beginning
the Nosphere. This is expressed in its effect on the in- of the 1980s, had already caused our national economy
dividual human mind, but in no other species. It is ex- to undergo a pathological change in reigning principle;
pressed as the act of discovery of a universal physical, this change was a cultural-paradigm downshift, a
or equivalent principle, a power which is expressed as change which had unleashed a process which had been
the functional distinction between the human individ- destroying more and more of the underlying policies of
ual and all other forms of living species.14 practice on which the original Kennedy manned-land-
That is the specifically creative power of the indi- ing mission had been premised and achieved.
vidual human mind, on which any competent notion This consideration introduces the foremost, and
of an economy absolutely depends.15 the most crucial principle, but not the only one, of a
That notion of creativity, as we shall consider the science of physical economy today. This is presently
point here and now, is the moral and scientific principle describable as the principle on which the prospect of
upon which our republics adopted commitment to avoiding a planet-wide new dark age depends, abso-
long-span capital budgeting is implicitly premised. lutely, at this present historical juncture. There is
That definition of the development of the sovereign recent evidence which causes us to wonder whether
cognitive powers of the individual mind, underscores the elected members of our Congress are capable of
the most essential point of difference between compe- overcoming certain past habits of that body, at least to
tent economics, based on this notion of the sovereign the degree that the doom which past policies have now
powers of human creative cognition, which are the ex- brought upon us, might be reversed in a suitable way,
pression of any true principle of individual, human per- even at this time of impending disaster. It is that con-
cern which must be put forward, and kept plainly in
view of our consciences, lest we flinch, out of fear of
14. That is, as if to say, that it is an anti-entropic quality of power of the
misguided popular opinion, and lose our republic as a
universe, which the human mind may tap into, as no other species
exhibits this potential. Clarity on this point was made possible by Ver- consequence of wavering, once again, in the way we,
nadskys rigorous definition of the Biosphere; that dynamic distinction in net effect, ruined the conditions of life of more and
of the Biosphere from the chemistry of the non-living domain, showed more of our population during the course of the recent
that a comparable separation of phase-space existed, in the function of four decades.
man, relative to the Biosphere: the Nosphere. This statement reflects a
similar notion which I adopted during the immediate post-World War II The most significant distinction of true republics, as
interval, a notion which crystallized for me during 1948, as this was our Federal Constitutions Preamble itself is to be rec-
prompted by my reaction to the obvious absurdity underlying the prin- ognized, is that fact, that when that principle is actually
cipal theme of Norbert Wieners Cybernetics. My view of the connec- supreme in our Federal practice, that, in itself, defines a
tion of this 1948 notion to Vernadskys conception of the Nosphere
emerged approximately a decade later, as a consequence of my gradual
true republic, a true republic as distinct from other orga-
recognition of the broader implications of my earlier, 1952-1953, recog- nizations of society. Societies based on Anglo-Dutch
nition of the significance of Riemanns principle. Liberalism, for example, are typical of cultures morally
15. The popular, slovenly usages of language today, bestow the word inferior to our own constitutional order, and are not ac-
creative on all sorts of innovations which have no relationship to the
use of the term creative to signify an experimentally validated proof
tually republics in the specific sense of the U.S. Federal
of a definite universal physical principle. Here, only the strict use of the Constitution. This feature of our Constitution is to be
term, for physical science or Classical artistic composition, is allowed. recognized as the same anti-Locke principle of Gott-

fried Leibniz, which the circles of Benjamin Franklin, respecting the nature of money, was already implicitly
Thomas Jeffersons mentor for that occasion, intro- expressed in a practice introduced during the pre-1689
duced to the U.S. Declaration of Independence as the Massachusetts Commonwealth. Leibnizs the pursuit
pursuit of happiness.16 These and kindred connections of happiness, represented, for us, a concept which had
are most notable for their bearing on the design of poli- been introduced to Massachusetts earlier, by Cotton
cies of economic recovery urgently needed for our Mather and Mathers young follower Benjamin Frank-
acutely troubled U.S. economy today. lin, both of whom used the expression to do good,
As I have written in the preceding chapter of this with the same type of connotations as Leibnizs pur-
report, the U.S. economy was founded, not on the prem- suit of happiness.
ises of the British (Anglo-Dutch Liberal) monetary Unfortunately, the tendency among our political il-
doctrines, but on the notion of Leibnizian physical literates today, has been to read pursuit of happiness
economy. For example, our U.S. constitutional policy as the embrace of a hedonistic principle. Given the ide-
ology prevalent among the victims of indoctrination in
16.That expression, the pursuit of happiness, was taken by the what we can strictly define as Baby Boomer ideology
founders of our republic from Gottfried Leibnizs New Essays on today, the fact of the current preference for hedonism,
Human Understanding. The work in which that expression was located over the common good, should not astonish us. In real-
for Franklin et al., had been written by Leibniz as an intended part of his ity, pursuit of happiness pertains to the anticipated
ongoing literary debate of principles with John Locke. Lockes death
held back the publication of the New Essays by Leibniz at that time. outcome of our having lived, rather than the immediate,
However, later, German circles associated with the leading teacher of hedonistic experiences of the living. Our Baby
mathematics of that time, the German Abraham Kstner, had caused this Boomer generation has been, predominantly, of the
Leibniz text to be forwarded to Franklin via London. There were prob- hedonist and Sophist persuasions, which, in the pres-
lems in the initial delivery, but the work reached Franklin later.
This work represents a significant element in the entry of Leibnizs
ently more advanced age of the members of that gen-
work on politics, and from his founding of the science of physical econ- eration, tends presently toward expressions of distaste,
omy, in 1671-1672, into the later shaping of those features of the U.S. even enmity against the young adults of today, young
Constitutional system of self-government and economic policy re- adults of the same age-range which fought and, largely,
flected in the work of Alexander Hamilton. These connections to Leib-
nizs work played a crucial, leading role in defining the U.S. Federal
led the American Revolution and the formation of our
Constitutional system, as in direct and total opposition to the thinking of national Constitutions, of 1776-1789.
English empiricists such as John Locke. Practically, the pursuit of happiness pertains to a
A.G. Kstner was born in 1719, in Leipzig, thus, shortly after the mortal individual who lives, by conscience, in anticipa-
death of Leibniz. As some relevant biographical details are now rather
conveniently available to researchers in the work published, with
tion of that outcome of his, or her life, a conception of
Johann Ehrenfried Hofmanns foreword, in a 1970 reprint edition of outcome which would meet the tests of immortality:
Kstners Geschichte der Mathematik (New York: Olms, 1970): Kst- What will my life, as lived, do for the benefit of the
ner was the son of a Leipzig University Jurist, who became, in turn, an future of mankind? or, a childs What will I be when
extremely influential figure of his time, both as a mathematician, but
I grow up? Good deeds as such are not sufficient; we
also as an important figure in the revival of Classical culture in Europe.
Kstner, who adopted a lifelong dedication to defending the principles do good when we pledge to the future: What necessary
of the work of Leibniz and Johann Sebastian Bach, is otherwise famous principle will our dedication promote on the futures
as the teacher and friend of the Gotthold Lessing who, together with behalf?
Moses Mendelssohn, launched the cultural movement which made Eu- All genuine development of personal moral charac-
ropean support of the American cause possible.
Kstners academic career eventually brought him, as Professor in ter depends upon the considerations which enter into
Mathematics and Physics, to Gttingen University, where he became the individuals ability to defy the prospect of torture,
the host for a visit there by Benjamin Franklin. Kstner, as the founder such as torture intended by Vice-President Dick
of an explicitly anti-Euclidean modern geometry, is otherwise famous Cheneys policy, and to defy death itself: Do what you
in the history of mathematics from his part, together with Zimmerman,
as among the key figures in the education of Carl F. Gauss. Unfortu-
will, you brutes, to my body. Falsely imprison me? Tor-
nately, Hofmanns representation of the issues of Kstners defense of ture me? Kill me? Your ministry of pain can not take my
Leibniz, against the hoaxes of the Euler, dAlembert, Lagrange, La- immortal soul away! You will not make me a vengeful,
place, et al., is a factitious concoction, directly contrary to fact, as this is Hobbesian beast, as you, for example, appear to have
shown by the fact that Kstner student Carl F. Gauss demolished the
Newtonians on the issues of their method, in Gausss 1799 dissertation,
become! So, Jeanne dArc triumphed, at a later coun-
a dissertation on the subject of what was later retitled as his first version cil of the Catholic Church, and also through the monar-
of The Fundamental Theorem of Algebra. chy of Frances Louis XI, already during that same cen-

tury, a triumph, thus, over a tortured death at the hands The Case of Poor Myron Scholes
of the brutish English chivalry. The most crucial of the practical questions posed to
For the founders of what became our republic, who any thoughtful person, is that posed by locating moral-
were chiefly Christians (despite the poor moral quality ity in respect to the issues of the commitment of our
of some of their neighbors in the colonies and republic present experience of living, that within the context de-
during relevant past times), they were seen by them- fined as the outcome of what we do, now, for reason of
selves as persons who, like the devout Christian ecu- the future, rather than as reaction to the experience of
menicist Leibniz himself, held to the notion of the pur- what has apparently occurred until now.
suit of happiness, as Leibniz defined it in opposition to Consequently, the crucial question is posed by
Locke; it was, for Leibniz and for our republics found- merely asking, What is that future?
ers, an expression of the most deep-rooted certainty re- There are two mutually irreconcilable ways of treat-
specting the relationship of the mortal individual to the ing the meaning of future in that frame of reference.
immortal personality participating willfully in the Cre- One, intrinsically incompetent approach, is the statisti-
ator. cal outlook, which is in accord with the attempt to see
The connection of such reflections on the roots of the future as determined, as if statistically, by presently
our U.S. Federal Constitution, should be clearly seen as operating principles, rather than seeing the future as a
bearing very much on the issues of our topic of capital change in course imposed by the onrush of new kinds of
budgeting. People whose moral outlook does not look principled operating conditions. The only competent
beyond the mortal issues of hedonistic pleasure and approach is that which I have presented in earlier pages
pain, have no efficient passion in the matter of those of this report; for example, as the approach of the com-
decisions which are the principal concern of persons petent method of scientific inquiry which is to be traced
sensible of the importance of their own souls. There- in European culture from the standpoint of that Pythag-
fore, they have no serious commitment to their contri- orean method taken, in turn, from the starting-point of
bution to the future. Egyptian astrophysics, Sphaerics. This I have defined
Thus, people whose moral development has not above as the same method which the follower of Nicho-
risen to the level represented by the U.S. Declaration of las of Cusa and Leonardo da Vinci, Johannes Kepler,
Independences the pursuit of happiness, and submis- displayed in his uniquely original creation of a system-
sion, on that account, to the authority of the Preamble of atic structure for modern physical science considered
our U.S. Federal Constitution, lack an effective con- as, implicitly, a whole exploration of a single, finite but
science respecting the efficient realization of the future, unbounded universe.
and, therefore, tend toward the so-called hedonistic The defective approach, as typified by Ren Des-
principle. The morally crippled among us, have leaned cartes and his followers among the professed Newto-
toward the utilitarianism of the frankly pro-Satanic nians, is the mechanistic-statistical method, that pre-
leader of the British Foreign Offices Secret Commit- mised on a modern, empiricist, virtually flat Earth
tee, Jeremy Bentham. Like Aaron Burr, the New York reading of the precedent of Euclidean apriorism.
banker who was a protg of the British Foreign Of- Consider the notorious incompetence of the mathe-
fices spy-master, Bentham, they can not be trusted with matical method of the Myron Scholes and Robert
matters pertaining to the life-and-death issues they Merton associated with the authorship of the August-
might bequeath to future generations, to our posterity. September 1998 financial catastrophe, and the present
The truly existential crisis which has now overtaken resumption of a far vaster echo of that 1998 crisis. This
our United States, requires intentions which rise above, 1998 development was and is a crisis based on a current
and reject the passions which have governed our na- persistence of the same silly system as that of Scholes
tional trends in economic and related practice, increas- and company, in the world system as a whole today.17
ingly, over, most emphatically, the recent three and a
half decades. This correction must now be made among 17. That is, as if to say, that it is an anti-entropic quality of power of the
our citizens and other relevant persons. The future exis- universe, which the human mind may tap into, as no other species
exhibits this potential. Clarity on this point was made possible by Ver-
tence of our nation, and the meaning of your having nadskys rigorous definition of the Biosphere; that dynamic distinction
lived, after you are gone, depends upon finding that of the Biosphere from the chemistry of the non-living domain, showed
quality of commitment within yourself. that a comparable separation of phase-space existed, in the function of

This experience warns us that the way in which cur- Real economic processes are dynamic in the sense
rently hegemonic economic dogma views and pre- of ancient Pythagorean Sphaerics, dynamic in the sense
scribes for the world at large, is a systemically deadly of the method of Cusa and Kepler, and, are, therefore,
kind of incompetence, incompetent respecting its por- premised on conclusive proof, against the folly of Car-
tent for civilization as a whole. It represents the kind of tesianism, a proof provided by Leibnizs introduction
corrupted thinking about economics which should be of the ancient principle of Sphaerics, dynamics, into
studied only from the standpoint of the relevant quality modern physical science.
of mortician, and never permitted, ever again, to infect Before continuing with that argument itself, it is
human life! almost certainly necessary, for the purposes of typical
The morbid, statistical method expressed, typically, readers of this report, that I interpolate some words of
by Scholes and his dupes, is otherwise derived from the caution here, on a relevant aspect of scientific method.
legacies of the Physiocrats and their Haileybury School Throughout this report, thus far, I have repeatedly
followers; it is the corollary, in method, of a radically emphasized the crucial distinction which must be made,
reductionist view of the Cartesian method. This was a in the domain of mathematical statements about sci-
method, derived from ancient Euclidean sophistries, ence, between merely formal and actually ontological
but which had learned to speak Britishor, were it conceptions.19 This acquired habit of mine, was first de-
Brutish?at the feet of Ren Descartes. This is also veloped, in germ-form, in my mid-1930s devotion to
the English copy-cat of Descartes, called Newtonian- Leibniz, and was crucial, later, for both what I adduced
ism. In other words, the economics behind the chronic from the portions of the work known to me by Acade-
follies of the work of Myron Scholes, is a radically pos- mician V.I. Vernadsky, and in the way in which I devel-
itivist version of the same incompetent method, the oped a more advanced approach than earlier, to a sci-
mechanistic-statistical method, derived from the failed ence of physical economy which I had adopted from the
physics of Ren Descartes.18 starting-point provided by what I had learned from
Leibniz beginning the mid-1930s.
man, relative to the Biosphere: the Nosphere. This statement reflects a As I have already emphasized, in preceding sections
similar notion which I adopted during the immediate post-World War II
interval, a notion which crystallized for me during 1948, as this was
of this present report, all approaches in physical, and
prompted by my reaction to the obvious absurdity underlying the prin- social science, must proceed from a top-down, rather
cipal theme of Norbert Wieners Cybernetics. My view of the connec- than bottom-up approach. This approach, which I have
tion of this 1948 notion to Vernadskys conception of the Nosphere
emerged approximately a decade later, as a consequence of my gradual
recognition of the broader implications of my earlier, 1952-1953, recog- of reach of a public scandal. The principle so expressed, is that if some
nition of the significance of Riemanns principle. mountebank claims that a plastic dummy has made a great discovery,
18. The introduction of what became known as Newton into the ideo- there is no danger that that dummy will say something to embarrass
logical follies of the British Isles, was accomplished by a Paris-resident those who made relevant claims on the dummys behalf. Nonetheless, it
Venetian cleric in the Paolo Sarpi tradition, a fellow known as Antonio was Cartesian convert, the Venetian Conti himself, who, with the help of
Conti. Conti, an avowed worshipper of Descartes, sought to find a way Abraham de Moivre and dAlembert, kept the Newton hoax going
in which to bring a mental disease, Cartesianism, from France, into an among salons proliferating on the continent of Europe, through, and
England which, officially, usually hated everything French at that time. beyond Contis own death in 1749.
To this end, Contis English accomplices selected a poor dabbler in 19. Typical was my experience in my 1941 reading in parts of Prince-
black magic, Isaac Newton, as, so to speak, their pigeon. (Later open- tons Luther P. Eisenharts standard text on Riemannian physics, which
ing of the chest of papers of Isaac Newton, under the direction of John put me off closer examination of Riemanns work until 1952-1953,
Maynard Keynes, revealed a lunatic asylums worth of black magic and when I was driven back to Riemann by problematic features encoun-
similar stuff, but no traces of actual scientific work! Keynes, after re- tered in what had been my impassioned study of the often brilliant
vealing the horrid stuff so uncovered, denounced the contents of the 1880s, but also the flawed 1890s work, of Georg Cantor. My own asso-
chest as lunacies worthy of the Babylonian priesthoodand, actually, ciation with the role of technological transformations of the production
the loan-sharking, Pythian Delphi Apollo cult of Gaea; he suggested process, at the point of production, which had impelled me to de-
that the chest be closed forever.) There is no proper mystery in this; the nounce the notions of information theory of Norbert Wiener and John
fractured forgeries of selected work from Kepler et al., had actually von Neumann as ontologically frauds, were crucial in my settling upon
been done by teams, based on frauds by Sarpis lackey Galileo, and in- Riemannian method. My 1952-1953 reflections on my earlier experi-
cluded the toils of figures like Hooke. By the ruse of assigning author- ence with Eisenharts text impelled me, then, and since, to put the great-
ship of what was allegedly Newtons work to a scientific idiot such as est emphasis on the absolute quality of functional distinction between
Newton himself, they had selected a person who represented no poten- mere mathematics, and the often superficially similar mathematics
tial for uttering any actual explanations for his alleged discoveries, and whose object is primarily ontological in efficiency, rather than essen-
thus kept scrutiny of the fraudulently alleged discoveries by Newton out tially formal.

adopted from among the relevant authorities which I rightly associated with the usual attempt at prediction.
had considered from over a span of no less than about As long as people are human, every forecast has a set of
three thousand years before me, requires a top-down maybes attached to it; otherwise, without those ex-
view of the superior functional role of discovered uni- pressed maybes, it is simply incompetent, or worse.
versal physical principles, as this view is to be applied All forecasts premised on a take a number from one to
to the domain of activity to which those notions them- ten, reveal a forecaster, or questioner, who is to be
selves are applied. Vernadskys allotting of physical ex- compared with Kants reference to the old quip about
perience to three qualitatively distinct phase-spaces, the one man attempting to milk a he-goat, while the
including the separation of life from non-life, and other holds the sieve.
human cognition from mere biological experience in So, competent forecasting rejects what are, today,
general, typifies this approach. This applies, in broad the usually incompetent opinions on the subject of the
terms, to the entire sweep of the subject of physical powers, and also falsely presumed lack of powers, of
economy as a distinct ontological category of investi- the human will. What actually bounds a social process,
gation. It is key to understanding development within are the limits defined by the discoverable universal
the context of economy in general. physical principles which are operating in that theater
In each case, the ontological distinction of the phys- of interaction between the voluntary role of society and
ically efficient phase-spatial separation of two domains, the physical universe with which societys actions are
by a universal principle, defines, and bounds the sub- interacting. It is the universal physical principles oper-
sumed domain as a whole. ating as characteristics of a system, which are the
These boundaries, which define the outer limits of a boundary conditions which act upon the wills of soci-
phase-spatial process, are the primary subject of refer- ety, and which in that sense, and only in that sense, and
ence for any competent attempt at forecasting with any only in that way, define what can be predicted, and in
system which may be defined as dynamic in its relevant what way.
set of principled characteristics. To restate and summarize this point, we have the
This is in contrast to the mechanistic-statistical ap- following.
proach of most taught and practiced, but defective Actual physical economies are dynamic processes,
economics doctrine today. That defective approach is not mechanical-statistical processes. That means,
one which seeks to define possible discontinuities of a among other considerations, that a forecast is implicitly
process, by extrapolation of percussive (e.g., statisti- Keplerian, in the sense, both of the notion of an orbit,
cal) interactions. In the real universe, as opposed to and, the proof of the test of the equant, that the universe
what is still, presently, the usually taught economics, is not simply repetitive, but bounded by higher univer-
it is the boundaries of the dynamic quality of phase- sal, physical principles which give an ordered character
space which acts upon the process, rather than the re- to the evolution of the universe, or any of its phase-
verse, mechanical, statistical approach on the phase- spaces, as a whole.
space. This has been the secret of my personal Therefore, in any competent forecast, including a
success in long-range and related economic forecast- serious sort of economic forecast for a system as a
ing since my first trial run of this approach for what whole, it is the principle governing the orbit of that
I forecast as a near-term recession, in 1956. This is immediate system, which acts upon the system, to
also the reason why I never, since that time, make the define a certain kind of boundary condition. As the sys-
mechanistic-statistical types of forecasts common- tems evolution approaches that boundary condition,
place in generally accepted academic economics the behavior of the system is changed by that approach,
dogma today. which proceeds, in turn, to a limit, beyond which the
Human society, to put the emphasis in the right system can not continue in its present form. At that
place, is a reflection of the human will, a reflection point, either the system will be changed, or it will break
which includes actions of a quality absent from the down.
animal kingdom, absent from any domain associated That consideration represents the presently little
with the methods of Bertrand Russells dupes Professor known, most essential feature of any system of long-
Norbert Wiener and John von Neumann. In society, range economic forecasting. We shall consider that
there is no inevitable quality of consequence to be matter here, again.

Economists With Sick, Sick Minds
There is a second ontological paradox asso- The immorality of Bernard de
Mandeville s The Fable of the
ciated with the rabid quality of incompetence re- Bees or Private Vices, Publick
flected in the Scholes case. Scholes has merely Benefits is exemplified today by
carried to an extreme, the view of radically re- the Mont Pelerin Society and the
ductionist forms of Cartesian statistical method American Enterprise Institute,
which promote gambling as a
which is congruent with the tradition of such ex- replacement for productive labor.
emplary hoaxsters as Bernard Mandeville, Fran-
ois Quesnay, Adam Smith, Jeremy Bentham,
and the British Haileybury School generally.
As Smith argued for the impossibility of sci- MONT
PSELERIN
OCIETY
entific forecasting, in his 1759 The Theory of
the Moral Sentiments:
...The administration of the great system of

the universe ... the care of the universal hap-
piness of all rational and sensible beings, is
the business of God and not of man. To man
is allotted a much humbler department, but
one much more suitable to the weakness of
his powers, and to the narrowness of his compre- Mont Pelerin Society and American Enterprise Insti-
hension; the care of his own happiness, of that of tute, in the promotion of sundry expressions of gam-
his family, his friends, his country.... But though bling as a replacement for production of the wealth on
we are ... endowed with a very strong desire of which nourishment and medical care depend: crime,
those ends, ... it has been intrusted to the slow organized and otherwise, is regarded, thus, as being
determinations of our reason to find out the mysteriously the magical source, arranged by those cu-
proper means of bringing them about. Nature rious creatures operating from under the floorboards of
has directed us to the greater part of these by reality, of results arranged as the outcome of the casting
original and immediate instincts. Hunger, thirst, of the dice above, as if by the presumed magic of
the passion which unites the two sexes, the love chance, to make some men rich, and doom the inno-
of pleasure, and the dread of pain, prompt us to cent.21
apply these for their own sakes, and without any Smiths explicit precedent for his line of argument
consideration of their tendency to those benefi- was that of the Physiocrats Dr. Franois Quesnay and
cent ends which the great Director of nature in- A.R. Turgot. Compare Quesnays argument with that of
tended to produce by them. Mandeville. Correlate Quesnays argument with
Smiths 1759: ...the love of pleasure, and the dread of
Smith is relatively tame stuff, at least in what he was pain, prompt us to apply these for their own sakes, and
willing to expose about his inner self, when compared without any consideration of their tendency to those be-
with that age of Walpole and the rampant Liberalism neficent ends which the great Director of nature in-
expressed by that frankly satanic Bernard Mandeville, tended to produce by them.
as the legacy of Walpole is usefully portrayed for our Quesnays argument is implicitly identical to the
reference today by Hogarths elegant manner of treat- cheap labor injunction of the Olympian Zeus of Ae-
ment of the inherently inelegant.20 schylus Prometheus Bound against the accused Pro-
Mandevilles doctrine, as presented in his The metheus: the mere mortals, such as the lower classes in
Fable of the Bees, is that the frankly immoral must be service to the feudal nobility, must not be informed of
given license in the interest of public benefits which, principles of the universe existing beyond the intellec-
according to him, only corruption promotes. We have tual reach of their assignment to exhibit no more than
experienced this, with the help of the contemporary
21. So, in the same spirit, the wicked Galileo specialized in statistical
20. Cf. H. Graham Lowry, op. cit. (note 12). advice to a clientele of compulsive gamblers of his time.

virtually animal instincts. Similarly, for Quesnay, the capita and per square kilometer; and, an accelerating
serfs and the like on the feudal lords estate, must enjoy rate of monetary emission used to support an increasing
the same order of conditions of life and comfort af- financial flow, despite the accelerating decline of physi-
forded to useful cattle, but have no moral claim to the cal output. During 2000, I introduced a modified ver-
product of the estate beyond that. What the apprentice sion of that illustrative figure, which took into account
of British economy, Karl Marx, regarded, credulously, the tendency of the required rate of monetary emission
as the surplus value generated by the Physiocratic required to sustain apparent financial expansion, com-
estate, was attributed by Smith to the implied magical bined with an accelerated rate of decline of the physical
powers of the feudal lords title to that estate: just as economy, per capita and per square kilometer (see
Smith makes the same argument for the magical powers Figure 4).
of property per se, in the cited excerpt, and as his pre- Since the 1971-1972 termination of the Bretton
decessor, the putative father of the Mont Pelerin Soci- Woods, fixed-exchange-rate monetary system, there
ety, Mandeville, attributes the source of public good as has been a subsequent, accelerated rate of physical de-
the harvested fruit of private vices. cline of the U.S. economy, a decline caused by the Tri-
Here, we should recognize the echo of that fraudu- lateral Commissions program of controlled disinte-
lent argument by Euclids Elements, in favor of self- gration of the U.S. economy, a decline largely
evident, apriori definitions, axioms, and postulates. associated with sweeping, and deep-going measures of
Contrast these referenced arguments from the reper- deregulation. The collapse of the U.S. physical econ-
toire of the Anglo-Dutch Liberal cult, to my treatment omy, per capita and per square kilometer, has shown
of the implications of anti-entropy, as I have identified itself most clearly, in physical terms, in the increasingly
these in the preceding chapter of this report. The power ruined, objective conditions of life of the lower eighty
of mankind to increase the potential relative popula- percentile of family-income brackets. This must be
tion-density of the human species, is derived from a ca- contrasted with public subsidies, as through tax-bonan-
pability which is unique to mankind, among all known zas to the upper three percentile and the health-care-
living species. Hence, if we were to encounter a living management system, of apparent, but usually, morally
species in the universe with the kind of capability unearned profit, such as those taken as golden para-
unique to mankind on Earth, that hypothetical species chutes, and otherwise, in the upper-income brackets.
would tend to think naturally as we do, exhibiting the The combined effects of this were somewhat hidden
same kind of anti-entropic power of organizing the de- from view by two factors. First, the fact that the physi-
velopment of its societies through the discovery and cal losses to essential public and private capital-forma-
employment of universal physical principles, and tions were either partially or entirely hidden in statisti-
would have the same relationship to the Creator as does cal national-income and product accounting, and,
the human species. It would, more probably, be a repre- second, that the reporting on the economy by the com-
sentative of the universal human species as we know bined efforts of the Federal Reserve System and Presi-
that species, as a species, here, today! dency, were frankly fraudulent, often wildly so, over
What Scholes approach reflects, is the attempted the period since about 1982.
substitution of a monetary-financial system per se, for a In effect, the U.S. economy had become, essentially,
physical economy. I had presented a relevant forecast in more and more, a financial-monetary bubble-economy.
a graphical form of representation at the beginning of On this account, what the market came to assume,
my campaign for the Democratic Partys Presidential prior to October 1998, was the delusion that the bubble-
nomination, in a public address delivered in January economy was the real economy. Financial and mone-
1996. For that occasion, as also later, I illustrated my tary speculation in the tradition of the early Eighteenth
argument by presenting what I identified as a Triple Centurys John Law-style monetary-financial bub-
Curve, depicting a paradoxical relationship of rates of bles, had been adopted as a substitute for the image of a
change among monetary, financial, and physical-eco- real, physical economy.
nomic curves for the U.S. economy (see Figure 3). The Enron swindle, and the ensuing rampage of
This figure did not present data, but the general hedge fund bubbles internationally, marked the com-
nature of the principled set of physical-geometrical re- bined aftermath of the 2000 collapse of the Y2K in-
lationships among the three elements: an accelerating formation age bubble, and its being superseded by
downward rate of emission of net physical product, per what has become the presently hyper-explosive, hedge

FIGURE 3 FIGURE 4
LaRouche's Typical Collapse Function The Collapse Reaches a Critical Point of
Instability
Financial aggregates
Financial aggregates
Monetary
+
aggregates
Monetary
aggregates
Time
Time
Physical-economic
input/output
Physical-economic
input/output
This Triple Curve graphic was introduced by Lyndon
LaRouche during his campaign for the Democratic Partys
Presidential nomination in 1996, to depict the paradoxical During 2000, LaRouche introduced a modified version of the
relationship of rates of change among monetary, financial, and Triple Curve, which took into account the tendency of the
physical-economic curves for the U.S. economy. required rate of monetary emission required to sustain
apparent financial expansion, combined with an accelerated
rate of decline of the physical economy, per capita and per
fund bubble. The explosive state of the related real- square kilometer.
estate bubbles of the U.S.A., Britain, Spain, et al., is to
be considered as an inevitable effect of attempting to
create an illusion of net growth under conditions of hy- ber 2000 U.S. general election, the U.S.A. economy has
perinflationary speculation in what is otherwise an ac- been careening toward presently impending free-fall-
celerating rate of decline of the relevant physical econ- like conditions, with the present world monetary system
omies, that under the state of hyper-instabilities inherent ripe for a blow-out, should the dollar crisis reach the
in the yen-based carry trade. degree of collapse which should be, ordinarily, ex-
Unless there is a rather immediate, radical, Frank- pected within the span of a few months ahead.
lin-Roosevelt-style reform-in-bankruptcy of the com- Only a comprehensive monetary and financial
bined international monetary system and financial reform, of a type which could not be initiated except by
system, the planet as a whole is presently on the brink the U.S.A., could now prevent an earlier careening of the
of a general, chain-reaction collapse into a more or less world at large into a kind of chain-reaction collapse cul-
prolonged, and deep new dark age of the type which minating in the early arrival of a planetary new dark age.
modern history associates with the Fourteenth-Century It could, and should be said, that the relevant institu-
collapse of the House of Bardi. tions of the world at large, have either failed, or simply
What should have happened as a reaction to the refused, on the wishful premises of No! No! No! It
GKO bubble, in September-October 1998, but did not, cant be true!, to learn the lesson of Europes mid-
would have been a general reform of the monetary-fi- Fourteenth-Century plunge into a New Dark Age.
nancial system then. Such a reform was mooted by
President Bill Clinton and his Secretary of the Treasury, The Monetary System
but the threat of impeachment, on constitutionally friv- The idea of a system of value as associated with a
olous premises, impelled the Clinton Administration to money-system, is a hoax and a delusion. Value lies only
back away. The difficult postponement of the GKO- in the physical form of the economic process as a whole.
speculation crisis was managed, but at a terrible price, a However, the organization of the combined effort of the
price reflected in the developments beginning with the society as a unit, requires a system of regulation which
mid-2000 demise of the Y2K bubble. Since the Novem- guides the participating members of the society in the

direction of the desired, combined, future effect. This is financing systems. In other words, the standard must be
required, to the end of promoting the development of set to conform to the needs and goals of a producer soci-
the process, as a whole, for both the present and future ety, rather than the presently reigning moral and eco-
benefit of the population as a whole, in effect. nomic decadence of a rentier society, the economic deca-
The required system of micro-management of the dence typified in the extreme by the former Enron and
small, for the sake of the future advantage of the whole, the present pandemic of hedge-fund swindles.
relies largely on a system of credit which subsumes a In our history, the needed balance has been best sup-
money-system. The astonishing, world-shaking suc- plied by aid of commitment to national banking sys-
cess of the system of regulation instituted under Presi- tems, as providing the framework within which private
dent Franklin Roosevelt, provides excellent illustra- banking operates. Currently, this reform is needed to
tions of the way in which a modern credit-system may deal with a situation in which the Federal Reserve
provide the means for channeling individual initiatives System as a whole is, virtually, hopelessly bankrupt,
to the needed effect on the future condition of the soci- and must be placed in Federal receivership, under Fed-
ety as a whole. During the 1950s, this sort of regulation eral management, to ensure the essential, uninterrupted,
in the small for the sake of the whole, was known by functional role of the private banking system. We can
such titles as the fair trade, as opposed to free trade, not permit a collapse of the credit system, but must ac-
system. If the U.S. is to outlive the presently onrushing tually increase the supply of carefully directed credit-
financial-economic storms in progress, a return to the issuance supplied to ensure net physical growth of pro-
fair trade concept must be instituted now. ductive employment and output, per capita, and per
In other words, the successful management of the square kilometer, throughout the nation as a whole.
present in the small, must proceed from an efficient Federal protection for the essential elements of the pri-
comprehension of the future destination to be ap- vate banking system, is now indispensable, if a deadly,
proached. Society must know the boundary-condition uncontrollable panic, is to be prevented.
which encompasses the present economic and related The credit-system created to cope with the present
systems, and be guided by navigation focussed upon crisis, must be a long-term system, intended to operate
that quasi-astrophysical boundary-condition of negoti- within a global, fixed-exchange-rate system, and that
ation in physical space-time, rather than by the incom- over a forward period of about two generations: fifty
petent mechanistic-statistical, implicitly flat-Earth years. This would be established as a kind of echo of the
forecasting methods derived from the failed dogmas of intended objectives of the original Bretton Woods
Descartes. system, with suitable adjustments of design to fit both
A fair trade system, so defined in respect to known contemporary and visible forward conditions.
boundary conditions, requires a relatively fixed-ex- The global objective, as much as national objectives
change-rate monetary-financial system. Predominantly, of the new monetary system, is to bring the level of
the boundary conditions are defined in terms of the rel- global physical productivity up to a standard at which
evant scientific principles which determine new tech- the system as a whole is stabilized through an assured
nologies and their processes of development. level of continued net growth throughout the component
This fixed-exchange-rate rule is needed to ensure elements of nation-state economy, and at which the level
that the effective rate of financial charges on essential of physical productivity, per capita and per square kilo-
long-term investments in progress, must be lower than meter, among the nations, permits increased and stable
the tolerable margin of return on investment derived in reliance on local systems for short-term and medium-
the process of production and distribution of essential term programs of activity. The level of physical produc-
goods and services. For, if currency values fluctuate, tivity and standard of living in the constituent nations,
this fluctuation, in and of itself, will prompt effective must be brought upwards to a level of durable parity;
interest-rates and related charges to creep upward, with large margins of inequity among, or within the popula-
the effect of tending to ruin the economy at large. tion of nations, have the effect of serious diseases, with
A balance must be struck, in favor of physical rates of spreading social and other problems attached.
return on long-term capital investment in production and In sum, approximately two generations would be re-
basic economic infrastructure, while allowing a reason- quired, even under favorable conditions, to bring a
able charge for credit uttered by the banking and related global system of respectively sovereign nation-states,

up to a level at which the carried-forward present defi- Preamble of our Federal Constitution, which our con-
cits, and related defaults of the present world system stitutional republic was created to serve in the interest
could be brought comfortably under control, and re- of all mankind.
solved, without aid of further special restraints. Such is That much said thus far, we must now focus our at-
the current debt which only a happier future could repay. tention on the broader array of essential tasks for which
The required measures of transition and develop- our economy must now be mobilized. I number these,
ment, over the coming half-century, neither require, nor to assist the reader in viewing the array of these tasks as
tolerate repressive systems affecting the lives of ordi- an integrated single mission-orientation for the dynam-
nary citizens, productive entrepreneurs, and relevant ics of recovery.
professionals. Apart from efficient management of
public and related large-scale credit, it were broadly A. Basic Economic Infrastructure
sufficient to emphasize the regulation of the monetary In all that is written here, the economic policies we
and taxation systems, and promotion of fair trade pol- are considering as healthy, are premised on the concep-
icies. The function of the central governments role in tion of a dynamic system. Always, ancient Greek dy-
the direction of the economy, should be the mainte- namics, the work of Kepler, Leibniz, Riemann, and also
nance of a set of reliable and stable monetary and finan- Vernadsky, are assumed to be the context in which anal-
cial systems, through the aid of the functions of Ham- ysis and proposals are situated. Therefore, in all that is
iltonian national banking, and tariff and taxation written, the target of our attention is the transformation
policies; and, through the role of the Federal and state of the planet (and, implicitly, also the Solar System we
governments, chiefly, in the promotion of that develop- inhabit) as composed of three general phase-spaces: the
ment and maintenance of the public infrastructure abiotic, the Biosphere, and the Nosphere.
which should represent, under present conditions, about The principal actor we are considering, is the cogni-
half of the annual total capital investment in the U.S. tive (i.e., creative) processes of the individual human
economy as a whole. mind. The human mind, acting through living persons,
These new directions in policies must be made now affects a.) the Nosphere which mankinds actions are
in three principal ways: 1.) Emergency action to stabi- transforming, hopefully to a higher dynamic state; b.)
lize and maintain otherwise, already implicitly bankrupt Man/Society acts on the Biosphere which we are man-
present monetary-financial institutions and systems of aging, and developing in its role as a Biosphere; and, c.)
the U.S.A. and other nations. 2.) Mobilization of large Man/Society is acting on the relatively pre-biotic
masses of public credit at low borrowing costs, to shift processes of our planet. Our view of the interaction
the labor forces role away from low-value services em- among these phase-spaces, is implicitly Riemannian
ployment and outright unemployment, into increasing dynamics, in which each development is interacting
emphasis on both physical production of goods at with the others, to define a specific physical space.
modern, progressive technological standards, with the No mechanical-statistical consideration is substi-
related remedying of the vast dearth of essential basic tuted functionally for those dynamic considerations.
economic infrastructure which has been created over the Our general principle for policy-shaping, is that we
recent thirty-five years. 3.) The negotiation of a system must, in effect, be raising the level of anti-entropy of
of international treaty-agreements, covering a forward the combined system as a whole, but we must assign
period of up to a half century, and employing low bor- preferences in the order of: a.) the individual human
rowing costs within a fixed-exchange-rate monetary minds creative processes; b.) the Nosphere; c.) the
system, with emphasis on the leading role of great infra- Biosphere; d.) the pre-biotic planet and Solar System.
structural and related projects for building up the poten- The principle which defines that order is the consider-
tial level of productivity, per capita and per square kilo- ation that it is the human individual creative mind
meter of the planet as a whole. which drives the development of the Nosphere; it is
This is the true American way, which we have inher- the development of the Nosphere, which drives the de-
ited from the founding and earlier development of our velopment of the Biosphere; and, it is the development
republic. This is the historic mission of our U.S. repub- of the combined Nosphere and Biosphere, which
lic in service to the welfare of future mankind. This is drives the abiotic development of the Solar System and
the mission, under the natural law, expressed by the our planet. Such is the conceptual framework in which

the notion of the dynamics of economy is posed.
Man in the universe is the center of the process,
which drives the role of the system of societys
development within that universe.
The driver of the dynamic system so defined,
is the increase of the power expressed by the de-
velopment of the creative powers of the individ-
ual human mind, which makes all other contribut-
ing goals possible. Thus, the role of development,
as in terms of the Biosphere and abiotic domain,
in fostering the increase of the effective creative
powers of mankind per capita and per square kilo-
meter of the Earths surface, is the reciprocal,
physical-economic goal of the development of the
dynamic system as a whole.
Take the illustrative case of nuclear-fission
and thermonuclear-fusion-typified technologies.
The function of primary sources of power in the
universe so defined as a dynamic process, is typi-
fied by what we may term, as if by crude rule of
thumb, as the relative energy-flux density of the
power-source (e.g., per square centimeter cross-
section). The greater the energy-flux density of
the mode, the higher the quality of effectiveness of
the power source. Thus, fission power is superior to
chemical power, and thermonuclear fusion is
orders of magnitude higher than nuclear fission. U.S. Bureau of Reclamation
These two categories of technologies are cru- Under Franklin D. Roosevelt, the U.S. built huge infrastructure
cial now, for reason of the increase of needs for projects, like the Hoover Dam, which employed 21,000 men. Today we
synthetic generation of sources of potable need to make use of the higher energy flux density of thermonuclear
water, through both depletion of fossil-water fusion to develop new resources.
sources, and increase of both population and of
current human consumption requirements per capita. erally. We no longer have an efficient network of con-
There are numerous other needs. The domain of ther- venient mass-transport of passengers and freight, and
monuclear-fusion technologies, enables us to manage have passed over from what was a relatively superior
other resources, and create new qualities of such re- and more efficient use and development of land-area,
sources, and also opens the gates to qualitatively higher and of management of essential resources such as fresh-
productivities. water aquifers. We create counterproductive conges-
The increasing of plant growth, especially tree tion in sprawling megametropolises, while imposing
growth, is also a general good which must be promoted economic ruin, and even virtual desertification on for-
because of rising human needs, and also the need for merly prosperous regions.
continuing qualitative progress in the physical produc- The shift into outsourcing, and replacing the closely
tive powers of labor per capita and per square kilometer held smaller productive enterprise with great combines,
of the Earths surface. has ruined the U.S. economy, and the lower eighty per-
We must also consider the need to remedy func- centile of our family household income-brackets, most
tional disorders which have risen within the organiza- notably, since about 1977, and has contributed in vari-
tion of society as in the U.S.A. in particular, during the ous ways to the collapse of the physical economy of the
period since the close of World WarII. U.S.A., while increasing the financial cost of living, rel-
Speculative financier interest has ruined the organi- ative to household incomes for those same categories,
zation of our cities, towns, states, and countryside gen- and also, now, even relatively higher-income categories.

By every physical measurement of the standard of The most essential quality of a nation, is the deter-
living, as distinct from clearly questionable financial mination of its people to respond to challenge by mus-
measures, the U.S. economy has been ruined by the tering themselves to ensure that the nation and, espe-
trends in policy-changes made since the latter years of cially, its posterity survive, and hopefully, progress to
the 1960s, and, emphatically, since 1971-1972. These honorable and memorable achievements in present and
problems were neither natural, nor historically prede- future generations. Of late, that quality of our people
termined, but, predominantly, the result of defective has waned, and, among a large ration of them, what
trends in the making of national and global policies. Emile Durkheim termed anomie is rampant.
It is imperative that we return to a technologically So, on this account, of late, we have tended, seem-
modernized restoration of the proven superior policies ingly intentionally, to foster a no-future outlook among
of practice of the pre-1966, and, in many categories, the so-called Baby Boomer generation, and others. We
earlier dates. The better use and development of land- have largely destroyed the role of the actual generation
areas of our national territory, through increased em- of scientific and related progress as an expression of the
phasis on decentralization through promotion of tech- vital self-interest of our people in being human. Typi-
nologically progressive forms of closely held enterprises cal: we are exhausting the few remaining numbers of
in physical production, and a balanced diversity of such our professionally qualified historians. We are losing
enterprises in each area, must accompany a deemphasis the connection we in the U.S.A., as in Europe, too, once
on transnational megacorporations which lack a motive had, to the existence of the preceding generations. We
of community interest in local enterprise. have became almost soulless creatures, obsessed with
Contrary to doses of mythology combined with present pains and pleasures, and a vanishing connection
foolish propaganda, the promotion of the highest tech- to past and future alike. The extremes, the upper twenty-
nologies is frequently based in relatively smaller, percentile bracket of the Baby Boomers, and the lower
closely held enterprises, on which clumsier, larger cor- income brackets of our poor, are the most typical of the
porate giants depend for essential technologies. It is human cost which this decadence of our nations cul-
also a matter of service to several aspects of national ture has brought about.
security, that our nation command scientific and tech- The following, interpolated point, is supplied here
nological capability in depth, embedded within the to contribute a sense of concreteness to the foregoing
pores of our society and its territory, rather than concen- observations on the development of our people.
trated in large corporate super-enterprises which have The youth movement which I have fostered has two
been subject to looting by the fanged and wild-eyed, relatively unique programs of self-development. The
hyena-like predators of rabid financial appetites with first, is the development of the notion of the history of
no regard for the intrinsic self-interests of nations and science from the standpoint of early Classical Greek
their peoples, including our own. developments throughout such crucial features of
modern European development as the work of Kepler,
B. The Development of People Leibniz, Gauss, and Riemann. The second is the regular
We must create meaningful opportunities for em- activity in developing Classical choral work from the
ployment. The immediate pressures to this effect are standpoint of the Florentine bel canto voice-training
seen in the wasting and demoralization of increasing ra- and the Bach motet. Among the intended experiences
tions of our general population, especially among the which have been prompted by the interaction of the
poor, but also more widely. Supplying jobs as a source of physical-science and musical work, is the effect of de-
income for living, is necessary, but does not address the veloping the counterpoint of such choral works to the
deeper systemic problem. A nation is not a labor market. degree of precision in which the impassioned connec-
A sovereign nation-state, which the Preamble and associ- tion appears between the musical counterpoint of the
ated features of our Federal Constitution prescribe, pro- singers and the passion which ought to be experienced
vides for the development of people as people, a people in the independent replication of the discovery of some
which participates in the maintenance and development universal physical principle.
of the conditions of life and progress for its people and The problem addressed by this conjunction of music
territory as a whole. What is most important for the citi- and science is that students usually tend to think of an
zen as a citizen, is a meaningful role in life, a life which experimentally proven physical principle in black and
has merit for the benefit of coming generations. white, whereas practiced discipline in Classical coun-

porting passion. Thus, culture
and the capacity to muster for a
necessary mission are insepa-
rable matters, in fact.
Or, as both Cotton Mather
and Benjamin Franklin said it,
the welfare of a society springs
largely from the passion
aroused in its members for the
purpose of doing good. If for no
other reason than to make our
people, and our nation morally
stronger, and more efficiently
so, promote the creative pas-
sion which serves a people as
the root of its proper patriotism,
its guiding sense of the meaning
of the durable choice of passion
NASA to do good. The choice must be
International Space Station flight controllers monitor data at their consoles in the station
flight control room in Houstons Mission Control Center during the STS-105 mission.
the right one, and it must be mo-
What is most important for the citizen as a citizen, is a meaningful role in life, a life which tivated by the passion to do
has merit for the benefit of coming generations. good.
terpoint prompts a known tendency among trained art-

ists to dream in color. The connection of music and sci- 3. A Franklin Roosevelt Memorial
ence in this kind of conjunction of the two aspects of the World System
work in the same persons, is the much-desired reunifi-
cation of scientific and artistic passions: to bring pas- I was born in 1922, and thus experienced the transi-
sion to science, and rigorous precision to art. The goal tion from military service to discharge after serving my
is to bring the two aspects of the great legacy of Euro- time in the China-Burma-India theater. For my case,
pean culture together as one, to defeat what the late C.P. this carried with it some special experiences, unique to
Snow identified as the two-cultures paradox in modern me, which are, still today, of continuing relevance in
European culture. the course of my successive transitions from the one
The point I am illustrating by this reference, is that status to another, during that time and the years imme-
Classical culture, which is actually Classical to the diately to follow. Above all of this, I have remained,
degree it fulfills the type of purpose which I have just always, a patriot in the Franklin Roosevelt tradition,
described, has a profound importance for society on its from that time to the present. It was because of that ex-
own account. The essential feature of the human indi- perience, and the importance of Roosevelt to those vet-
vidual, is the passion which that individual is capable of erans, including some OSS veterans whose secrets I
mustering for work performed as an intended benefit came to know in later times, that I have been occupied,
for his or her nation, his or her culture. A populations always, with certain features of the Franklin Roosevelt
sense of a fragmentation of a sense of culturefor ex- legacy, which I regard today, more than ever before, as
ample: science without passion, and passion without essential lessons, essential passions of relevant circles
rigortends to foster an early onset of intellectual im- from my own generation. This also includes my impor-
potence in a people. The political lesson to be adduced tant experience of an older generation than my own.
from such reflections as this one, is that a people acts From that vantage-point, I foresee the intention which
effectively according to its sense of passion for a mis- must somehow guide our presently much-troubled na-
sion, rather than importing an emotional support for a tions view of world affairs today: that not only for our
cause which is defined as external to the required sup- own nations sake, but in the vital interest of our pres-

ently crisis-stricken world as a whole. before President Roosevelts death. The conditions are
Most important of all these experiences, I know that different, but the mission is, at its core, essentially the
the future of the world changed for the worse on the day same.
that President Franklin Roosevelt died. I have, for ex- The plan, as I see it now, is the following.
ample, a reliable, if secondhand knowledge of an inci- The pattern of cooperation among China, Russia,
dent, involving OSS chief General Donovan, which, India, Germany, and so on, in most of Eurasia, points
with other bits and pieces from hither and yon, and toward the need for a massive program of long-term
some very solid evidence, too, affirms that conviction. cooperation among Europe, the Eurasian nation called
The account of General Donovans reaction to a certain Russia, and Asia, in transforming the partially barren,
situation, as he, late in that war, left, saddened, from his but also the worlds most populous continent, into a
meeting with the President, typifies the knowledge prosperous set of cooperating sovereign nation-states.
which nourishes my passion in the matter; the other, This would be done, hopefully, with the blessing and
historical evidence in general, lends factual affirmation cooperation of our U.S.A.
to the passion. At the same time, we are the pivot of a needed
It had been the intention of President Franklin Roo- system of cooperation among sovereign nation-states
sevelt, as his son reported his own role as an eyewit- of the Americas as a whole, or, allowing for some bits
ness, to use the occasion of the coming victory in war, of reluctance here and there, most among them.
to bring the British Empire and similar enterprises to a Together, we of the Americas and Eurasia must
close. It was the intention, to eliminate colonialism and combine our efforts on behalf of the African continent,
kindred trappings of modern history in general, to es- and bring the odd Aussie and New Zealander into the
tablish a system of cooperation among a world com- general scheme of play. Australia has land, mostly
posed entirely of sovereign nation-states, nations whose waste or wasted, a largely desert continent with tremen-
freedom and development the U.S. would assist by dous supplies of sea water surrounding it, but we must
technical assistance from the vast productive power use nuclear power to remove the unwanted salt from the
which would be reoriented from war, to the missions of relevant part of that adjoining supply of water as a
peace. Had the President lived, that mission would have whole, and to assist in reasonable forms of management
succeeded; for, as long as he was alive and punching, of our global climate.
those of us who had served abroad, and had seen the We shall thus bring into being a contemporary ex-
conditions in parts of Asia, as I did, would have rallied pression of President Roosevelts post-war intention, a
almost to the last individual veteran, at the call of Pres- world of sovereign nation-states cooperating for their
ident Roosevelt for this endeavor. That was my passion common security and the common good. Such was the
for our nations role while I was back in India after the Presidents intention for the United Nations Organiza-
end of the war; it remains, essentially, my passion for tion, and for the global role of the U.S.-backed Bretton
our republics role in the imperilled world of today. Woods system.
It did not happen as President Roosevelt had in- The task so posed to us all, requires a bit of revolu-
tended. Winston Churchill represented a side of the Brit- tionary effort. The worlds population has grown to
ish Empire, of the Dutch, and other colonialists, which well over six billions living individuals, most of them
had a contrary mission, and, unfortunately, President extremely poor. To raise the level of the conditions of
Roosevelts successor, Harry Truman, shared in that pro- life, requires a leap in productive potential, a leap which
recolonizing outlook. Despite some excellent thrusts by requires energetic progress in the development and use
Generals MacArthur and Eisenhower, after that war, and of nuclear-fission modes of use of uranium and tho-
also other prominent figures, we lost our way, and have rium, and the urgent development of the much more
landed, in the end, in the awfully perilous state of affairs powerful means represented by thermonuclear-fusion
in which we, and other nations, find ourselves today. technologies. We need urgently both of these sources of
Now, with one thing and another, betwixt and be- power: without nuclear fission, freshwater shortages
tween, over the recent more than sixty-one years, we now growing through depletion of fossil-water sites,
have come to another terribly ominous time of world will take a cruel toll both of life, and of the conditions
crisis. In principle, in the core of the matter, we are back of life of the survivors. Without the development of
at the same point of decision which we faced an instant thermonuclear fusion and related technologies, we can

ing throughout and looting the world,
ready to drive herds of the worlds al-
ready surging mass of desperately poor
and homeless, from one place of
wretched conditions of temporary em-
ployment, and early death in misery, to
another.
We have experienced that sort of
design in memories of earlier times. In
one page of European history it was
known as the medieval system, in which
a class of armored predators, called eu-
phemistically the Norman chivalry,
deployed at the beck of an imperial Ve-
netian financier-oligarchy, and drove a
looted Europe into the hell-hole of a
mid-Fourteenth-Century New Dark
Age. The current drive, as by Vice-
National Archives
President Dick Cheney, is to destroy the
President Franklin Roosevelt intended to eliminate the colonialism of the British
Empire after the victory in World War II, but, LaRouche writes, we lost our way, regular military, as is being done cur-
and have landed . . . in the awfully perilous state of affairs in which we, and other rently with recent and continuing An-
nations, find ourselves today. Here, Roosevelt and Churchill at the Casablanca glo-American operations in Southwest
summit in January 1943. Asia, and to replace military forces of
governments with private armies play-
not efficiently overcome the lurking materials prob- ing a role akin to that already seen in the predatory Hal-
lems awaiting us a quarter- to a half-century ahead. liburton operations in Iraq. That sexed up Anglo-
All of these problems are, fortunately, inherently American folly in Iraq, is typical of the reality of what
soluble, if we muster the will to bring about this reform, globalization would become: a realization of the
in Franklin Roosevelts memory. dream of H.G. Wells notorious fantasy, Things to
If we agree, this, then, leaves us with some ques- Come.
tions which require some answers. The foremost ques- Admitted, there are still only a relative few, chiefly
tion, then, becomes: Why the sovereign nation-state? heavily financed predators, who wish that kind of hor-
ror-show to be played out in actuality. Nonetheless,
Why the Sovereign Nation-State? some influential factions have a different, probably de-
We are confronted today, especially from western luded dream of what they hope globalization could
and central Europe, by financier circles operating, even turn out to be. The latter types protest: Is there not the
within the U.S.A. itself, in the tradition of Bank of Eng- possibility of a globalization that would not be as
lands Montagu Normans early 1930s support for Adolf rotten and evil, from early on, as we see the trends
Hitler and the French Synarchist tradition. Their efforts toward it moving today? The more or less popular
today are focussed upon bringing the existence of the question we must therefore address, in reply to utopian
institution of the sovereign nation-state to an end. The speculations on the coming of a new, global Tower of
proposed alternative from the same types of influentials, Babel, is: Has the era of the nation-state outlived itself,
today, which is already very much in the making, is what or is it that the only actually proposed alternative to the
is termed, euphemistically, globalization. nation-state, is something at least less terrible than the
That scheme is actually nothing but a new name for frankly evil Dick Cheneys schemes suggest?
imperialism, an Anglo-Dutch Liberal imperialism in To answer such questions competently, we must,
the sense of the Bilderberger tradition, under whose again, turn to consider some of that history of European
reign, clusters of private financier interests, predators in civilization, which lies at the foundations of all that we
the likeness of present hedge-funds, are already roam- are today.

which, for them, as for those Jews who resisted becom-
ing the beaten dogs of imperial Rome, in the sense of the
modern Bruno Bettelheims description of conditions in
the Nazi prison camps, was hated. Latin, for them, was
the lash of the despised, but feared Roman oppressor.
The Christian Apostles knew virtually no spoken
Hebrewwhich virtually did not exist at that time
but, rather, Aramaic or some form of Greek, and, among
the educated Jews, Classical Greek of the form in use at
that time. The articulation of Christian theology oc-
curred in the Classical Greek associated with work of
Apostles such as John and Paul. More significant than
the influence of nominal conventions, is the fact that the
essential conceptions of Christian theology, and also the
Jewish theology of Philo of Alexandria, can not be ex-
pressed in ancient Latin, for systematic reasons of the
type which Cicero would have understood, reasons
which I have emphasized in Chapter 1 of this present
report: except as a Greek-speaking Christian theology
of the Apostles impressed itself upon the emergence of a
medieval Latin of the western Church.
The attempt at a Latin empire had failed, calami-
tously, in the west of Europe, and had been succeeded,
after the Roman Emperor Diocletian recognized this
failure, by a system premised, under Diocletians pro-
Globalization is a new name for imperialism, the folly in Iraq
today, which resembles H.G. Wells grim fantasy, Things to tg, the Emperor Constantine, on the literate Greek
Come. This is a scene from the movie made of Wells story. which was native to the leading Christians of that time.
The imperial Greek experiment with the effort to create
For a proximate case in the history of European civ- a state religion, as under the Emperor Constantine, pro-
ilization itself, consider the lessons from the struggle to voked the Augustinian alternative, which was pushed
establish a modern system of sovereign nation-states, from Italy to the Spain of Isidore of Seville, and into the
as Dante Alighieri, for example, had proposed in his realm of the Irish monks, who miraculously Christian-
sweeping treatment of the revival of a literate form of ized Englands Saxons (at least temporarily, more or
an Italian language. Italian, was a language older than less), and, in turn, evoked the emergence of the great
the Latin which the Roman conquests had turned into a Charlemagne as the opponent of the evils fostered and
political form of lingua franca for purposes of imperial spread by Byzantium. The self-inflicted decadence of
rule. The use of Italian had been influenced greatly by Byzantium became the opportunity for the new mari-
Roman rule, but, as the brothers Wilhelm and Alexan- time capital of evil, the financier-oligarchical, maritime
der von Humboldt showed, did not come from Latin. center of Venice, to take over and manage the continu-
Focus on the specific argument which Dante made, in ing efforts to destroy what Charlemagne had built. This
his De Monarchia. Then, turn to a point more than a produced the ultramontane-ruled system of Norman
century later than Dantes work, to Cardinal Nicholas butchery, anti-Semitism, and hatred of Muslims, called
of Cusas design for what became the commonwealth the Crusades, all of which led, fatefully into the so-
form of modern sovereign nation-state, in his Concor- called New Dark Age of Fourteenth-Century Europe.
dantia Catholica. With the advent of Europes Fifteenth-Century Re-
To understand the issues posed by the immediately naissance, which came to be centered on the great ecu-
foregoing set of stated historical facts, the following menical Council of Florence, the attempt to turn Latin
qualification must be stated now. As will be emphasized, into a lingua franca of a new Tower of Babel largely
in due course, the early Christians did not speak Latin, collapsed. The legacy of Classical Greek science and

literature, archived within what remained of a desperate report. The reader of those compared sources should
Byzantium, was unleashed into Italy, thus lifting west- sense the aroma of a common idea about the implica-
ern Europe from the long reign of brutish ignorance, in tions of the serious form of communication of actually
the great Renaissance on which all of the accomplish- efficient forms of ideas, such as the discovery of univer-
ments of modern European civilization since, including sal physical principles, or the composition of Classical
the birth of the Americas, were premised. The transfor- polyphony in the J.S. Bach tradition, or the composition
mation of the mass of the populations of Europe, from and experience of Classical poetry, each and all by the
underlings cast in the part played by the serfs on Fran- aid of language.
ois Quesnays model feudal estates, to be elevated Think now! If you do not understand poetry as Schil-
toward achieving human rights, was a feat which re- ler, Shelley, and Mozart, Beethoven, and Schubert did,
quired the fostering of Dante Alighieris program for you do not know science. And, if you do not know sci-
the restoration, in literate forms, of the language-cul- ence, as I have treated the subject of Keplers work, you
tures of Europe. This upshift in the rights of mankind as do not know poetry, or Classical drama in general. You
human, echoed Cusas Concordantia Catholica. This might respond with appropriate affection for either, and
development, centered on the great ecumenical Council that would be good of you, as far as those matters go;
of Florence, gave impetus to the realization of what but, until you understand the integrity of the two, Clas-
became known as the commonwealth form of modern sical poetry and science, combined, you have yet to gain
sovereign nation-state. a top-down conception of the implications of a function-
Those summary points just stated, in succession, ally literate meaning of the Classical use of language. It
bring us to the crucial point of relevance for today, a is on this account, that I have emphasized the crucial
point respecting the use of language, and the relation- importance of integrating a gradual mastery of the im-
ship of this consideration to the needed defense of the plications of the singing of Bachs Jesu, meine Freude,
establishment of a global system of cooperation among when that is linked, functionally, with the mastery of
perfectly sovereign nation-state republics. crucial leading conceptions from such scientific works
as those of the Pythagoreans, Plato and his circle, as also
The Role of the Infinitesimal in Language Cusa, Kepler, Leibniz, and Riemann. Until we have lo-
About sixty years ago, the Seven Types of Ambigu- cated the essential principle of action which commonly
ity of the celebrated William Empson introduced me to subsumes both what is truly Classical poetry and po-
what was for many readers of that work, at that time, a lyphony, and their functional association with the Clas-
fresh way of understanding what we ought to under- sical science of the exemplary figures I have referenced,
stand as a literate form of use of the English language. once again, here, the human meaning of language as
Reflect on Empsons arguments there from the point of such remains hazy and more or less obscured.
reference provided by a leading English apostle of the As Shelley emphasizes in the summary conclusions
American Revolution, Percy B. Shelley, in his much of his In Defence of Poetry, although an inspired popu-
contested, last to be published among his principal lation may astonish historians with the profundity of its
works, his richly Classical, 1821 In Defence of Poet- insights, that population usually does not know the actual
ry.22 Consider the implications of the conjunction of principle which inspires its unusual rise from the dismal
those referenced writings of Empson and Shelley, toil of customary behavior, to such a relatively superior
against the backdrop of my treatment of the implica- moral and intellectual quality, and excitement of social
tions of Keplers discoveries in earlier pages of this life. It is the function of great poets and like-minded his-
torians, to provide us insights into these empyreal mo-
ments of history, and that in a manner, and by a method,
22. In Defence of Poetry, although written in full in 1821, was first
published in 1840, as part of a collection of his essays and some corre-
coherent with what I have identified as that of science.
spondence. It is important that the appreciation of this work be situated The practical issue so posed by the idea of language
in the context of Shelleys studies and their setting at the time the piece for economy, is the matter of the ability of a people,
was written. Shelleys experience overlaps the succession and contrasts, once stricken with the dismal prospect like that with
considered in the work of my wife, Cusa and Schiller specialist Helga
Zepp-LaRouche, between Friedrich Schiller and Heinrich Heine in Ger-
which about forty years of economic and cultural de-
many, expressed in their writings, during the relevant period of Shel- cline has now surrounded us, to break free of those
leys life. compelling, accumulated habits of cultural self-ruin.

The change to be effected, is like that of prisoners in a functionally relevant universal physical principle.
just-freed Nazi concentration-camp, when they have In that sense, all literate speech always reflects the
found the gates opened, but can not seem to move whole span of the use of language or related expres-
ahead, through invisible gates of the mind, to freedom. sions. It is the whole language, as it exists for the mind
When a remedy is found, the words used remain more of the speakers, which is the implicit context of mean-
or less the same, but the ideas associated with them ing of each relevant utterance bearing on some matter
have changed, in meaning and in the spirit with which of principle. Actual ideas are expressed in this way, as
the words are used. The question posed, thus, is: what is ironies of what we may term creative speech, whose
the difference? object is the conveyance of new conceptions, new
That function of irony, in language, as in physical ideas, rather than the simple regurgitation of the old.
science, which distinguishes the creative mental powers Thus, the domain of irony, as irony is to be understood
typical of the specific notion of the human individual, is in this way, is the expression of a process of dynamic
the same function associated with the process of dis- development internal to the employment of the lan-
covery of a universal physical principle in physical sci- guage as a whole.
ence, as Keplers treatment of the fallacy of the equant, Thus, if we permit the principle of the nation-state
in proceeding toward the discovery of a universal prin- culture to be liquidated by the introduction of global-
ciple of gravitation, illustrates the existence of the ap- ization, we stupefy the affected population, driving its
parent infinitesimal magnitude associated with the cultural aptitude backward, and downward toward the
quality of action by a universal physical principle of brutishness which the Olympian Zeus of Aeschylus
gravitation. Such, in mathematics, for example, is the Prometheus Bound sought to enforce as the spiritual
difference between a merely formal-mathematical condition of mortal men and women. Globalization is
notion of the complex domain, and the physical con- essentially a brutish expression of what the ancient
ception so strongly typified by the work of Leibniz and Greeks and others came to know as the oligarchical
Riemann. This is the same conception of the apparent principle. Globalization and human freedom are
infinitesimal met as an expression of dynamics, as, for mortal enemies of one another, as Globalization is
example, in the notion of the ontological distinction of inherently the imperial enemy of all mankind.
point, line, surface, and solid in Pythagorean Sphaerics People of differing language-cultures, may know
and in the work of Plato. the same universal truth, but the action of their knowl-
In Bachs polyphony, for example, the Pythagorean edge of that truth, is rooted in the relevant language-
comma appears to express a small magnitude, which, in culture as a whole, not as if in some vulgarly literal type
a practical sense, it does; but the existence of the comma of formal mathematical statement. Many among us are
is ontological, not metrical. Precisely the same notion of frequently challenged by fresh confrontation with this
the comma is expressed in the role of Classical modes of fact, as when discussion of scientific discoveries occurs
irony in language, as Empsons work begs recognition between people of different language-cultures, or the
of that fact, which have the same proper function in or- attempted sharing of what is a very funny story told by
dinary writing and speech. The essential feature of liter- the speaker of one language-culture, to the sophisti-
ate speech, and its echo in written form, is the appear- cated representative of a different language-culture.
ance of the mark of punctuation which is either the Translingual puns are particularly amusing when the
comma, or a related mark, which points our attention to underlying concept expressed is inherently funny, espe-
two or more distinct notions of substance, or actions, in cially as if uttered by a faithful follower of the great,
such a way that the irony of that conjunction itself, when greatly courageous, and amiable Franois Rabelais. It
spoken in a literate manner, conveys an idea which is not is, therefore, the fraternity of language-cultures, which
literal, but clearly necessary. This distinction lies in the is the normally healthy condition of mankind in gen-
necessary ontological implications of the irony, not eral, the condition required to promote fraternity, and to
some mere decoration. This feature of literate written or promote the advancement of the power in the universe,
spoken speech, has the same function as the expression of a cooperating mankind as a whole.
of the discovery of a fundamental, or related physical To round out the essential point being delivered
principle in an ontologically defined, rather than merely here: drunkenness is a weakness, but an excess of sobri-
mathematically formal, statement, which references a ety is usually a virtual crime, especially in the practice

of science, art, and politics.
Simply, Classical irony is an ex-
pression of human creativity, as a
distancing of the individual intel-
lect from boredom, meanness, and
a resulting tendency of these
toward stupidity. All great art and
science are based on an insurgent
spirit of creative merriment, a state
of happiness in a useful problem-
solving mission, a perception that
a folly is inherently ridiculous, and
that pompous creatures tend to
behave like that of which honest
donkeys would be sadly ashamed
to see in a human being. Irony is
incipient laughter, an expression NASA
of creative joy in being part of On the shoulders of Kepler and Cusa, we must develop the next two generations of
mankind. Excessively sober men citizens into a mission for the common aims of mankind. With the aid of nuclear- and
and women are not to be trusted. fusion-powered rockets, we can work with other nations to develop the Solar System.
Here, NASA s Mars rover successfully leaves its lander on Jan. 31, 2004, ready to
To be happy, even laughing lov- provide man with more detailed knowledge of the planet.
ingly in the face of death, is to be
good. Abraham Kstners student and friend, Gotthold accept the challenge of seeing yourself as the Creator of
Lessing, would have agreed. our anti-entropically developing universe does.
The Tower of Babel, like that of Pisa, was always, as We must define a common mission within, at least,
now, a bad idea. the range of the inner planets and related body of our
Solar System, and think of the self-development, and
The Essential Cooperation other developments needed to bring the various nations
The touching of the Moon, and the increasingly so- into a condition where each is prepared for some na-
phisticated exploration of some ironical features of the tional mission within a well-composed division of
Mars landscape, typify experiences which have given labors among the nations of the planet as a whole. We
us an increasingly, emotionally and intellectually dis- must, in that sense, work separately, but in cooperation,
turbing, retrospective view of Earth as a whole. The to common aims and ends.
problem here, is of a type similar to that conflict in out- For that purpose, we must return to the subject of the
look, between the commonplace economic forecaster work of Johannes Kepler. Kepler, the avowed student
who projects his estimate of a future time as a mechan- of Nicholas of Cusa and, in a lesser, but important re-
ical-statistical extrapolation, and my view, which lo- spect, also Leonardo da Vinci, lunged to create compe-
cates the observed sequence of events from the stand- tent modern astrophysics, out of the varied kinds of
point of the impact of the relevant boundary-condition critical failures of notable predecessors such as Coper-
being approached, in predetermining how the future nicus and Tycho Brahe. Modern civilization is not a
shapes the optional choices of outcomes for the present product of a Copernican Revolution, but of the leading
developments in progress now. work of Nicholas of Cusa and his follower Johannes
So, in the astrophysics developed through the mercy Kepler. Cusa defined principle; Kepler discovered the
of Kepler, as we see the Solar System today, so we must principle which makes the Solar System work, where
look, as if backwards from the future, to a unified, and all attempts by others had failed to grasp the crucial ele-
unifying conception of the options for development of ment of solution for this challenge.
the whole complex of what should be the respectively We must focus on using the progressive develop-
sovereign cultures of Earth. We must see mankind as if ment of the two adult generations (of approximately
with Gods eyes. You wish to be in the Creators image; twenty-five years, each), of which the first is now in

motion, to bring the development of the populations tic of the development of the practice of the planets
and their settings into, not a state of globalization, human population considered as a whole.
but approximate parity in their ability to participate in If what is necessary appears to be impossible, then
what the late scientist Edward Teller, once named the make it happen!
common aims of mankind. A kind of benchmark for We can not get away from the boundary conditions
that objective is implicit in the obvious roles of nu- of specific cultures which define the necessary auton-
clear fission and the region of work associated with omy of the national cultures of which the planet as a
thermonuclear fusion, which will dominate the devel- whole is composed. Yet, it is not those differences
opment of any culture of the planet which avoids the which should define planetary goals, or the perspec-
immediate threat of a descent into what is at least a tives for internal development of the respective sover-
catastrophic form of planetary dark age, as we associ- eign nations. Rather, the necessary goals must be ef-
ate those terms with the decline of the Roman Empire fectively served in common, despite the fact that
in the West. certain differences among national cultures are expres-
If civilization escapes the present threat of an early sions of those nations required, separate sovereign-
plunge into a planetary new dark age, the next two gen- ties. Typical of this challenge, is the unavoidable fact,
erations, that now entered into adulthood, and its suc- that the issue of the broad development and applica-
cessor, will manage more and more of the planets af- tions of nuclear-fission and thermonuclear-fusion tech-
fairs for the remainder of that new century we have nologies are necessary practically, and therefore mor-
recently entered. The implications of both exploration ally, for all humanity, and all nations. Some differences
of relatively nearby space, and of a range of technolo- of opinion are legitimate, while others are intolerable:
gies congruent with the implications of thermonuclear we must know the actual differences which define that
fusion, and beyond, will be the vision which will domi- distinction.
nate the successful passage through that century. If we This touchy point arising in some peoples notion of
review the history of European civilization and its out- the function of sovereignty, is resolved by reflection on
growths since a half-millennium ago, especially the in- the essential role of truth as the measure of reason. Our
ternal development of crucial sorts of fundamental dis- duty as a U.S. republic, is not to dictate what is called
coveries in physical science, we can imagine a point of truth to other nations; certainly, the performance of
future reference, from a point outside the Solar System, the present U.S. Administration does not warrant
from which to consider, that in a fully rational way, the awarding it the privilege of dictating regime change.
future boundary conditions which will shape, more and The authority of truth begins with our imposing it upon
more, the needed development of life on Earth as a ourselves, which is the first, indispensable step toward
whole. the acceptance of truth by others.
The most important thing about this view, from We must choose the mission-orientation we assign
where we sit in history today, is to adopt this way of to ourselves, to our republic. Then, when we have done
thinking, more than hoping to secure detailed elabora- that, we must tell other nations what we have done, and
tion of answers to the questions such a view employs. proffer the opportunity for their cooperation with us.
The crucial thing, is to beware of our adopting policies Without reasonable objections, we have the finest Con-
which are stupid from the standpoint of those general stitution ever crafted for any republic; it has served us
considerations. Essentially, we must think of building well, each time we have served it well. In historical
up the potential of the planet, as potential is expressed fact, there exists no rational evidence to the contrary,
by the quality of development of the coming genera- since we emerged as a world power, with the victory
tions, of the basic economic infrastructure of each over the Confederacy project of imperial Britains Lord
nation, and of the planet. We must consider, thus, the Palmerston. Our Constitution was crafted as a distilla-
need to change the way we have come to think, as nation of all of European civilizations experience up to
tions, during the recent two generations. We must that time, since, literally, the constitutional poem of
change the way most of our people have come to think Solon. As President Franklin Roosevelts performance
of the needs of the future two generations, and no less shows, the world at large was mostly disposed to accept
than that. We must come to accept, now, the implied our policy for global post-war reconstruction of rela-
responsibility of ensuring an anti-entropic characteris- tions among sovereign states, had we, ourselves, not

betrayed the commitment which that President had rep- U.S.A. itself, since 1861,23 until the rabid fit of deregu-
resented. lation launched on the initiative of the reforms intro-
The world today could not escape the onrushing duced by the Trilateral Commission, headed by Carter
threat of a planetary general breakdown-crisis, without Administration National Security Advisor Zbigniew
our providing the crucial initiative around which the ra- Brzezinski.24
tional governments of the world would quickly rally, Notably, to make the technical issue clear, it must be
out of no more remote motive than a frank perception of emphasized that this radical, and ruinous, change in
their own urgent and desperate immediate interest in U.S. policy, under the Trilateral Commission, reflected
survival as nations. No present government of western Brzezinskis late 1960s advocacy of the shift of the U.S.
and central Europe could do this, nor of Asia, nor of economy from its traditional economic practices into
other parts of the Americas. Herein lies our national the fantasy-world of information theory and artifi-
mission on behalf of the rightly sovereign nations of cial intelligence presented as Brzezinskis notion of a
humanity as a whole. technetronic age.25
Above all else, we will not build an empire, nor will On this same account, it should be added, that, by
we tolerate a new one, even of our own making, on this 1982, with the passing of the frankly wild-eyed Kemp-
planet. It is in the nature of what we were crafted to Roth legislation, and wildly radical hoaxes concocted
become, in the establishment of European colonies, as by the Federal Reserve System and the annual White
places of refuge from oligarchical Europe in North House reporting on the economy, virtually the last
America, places made according to the nature of our shreds of economic sanity were in flight from both pre-
Federal Constitutions principles, that we abhor any vailing Federal doctrine and general tax and investment
form of empire on this planet, by any national or other practice.
form of power, including our own. What we need is a Soviet General Secretary Yuri Andropovs refusal to
world of neighbors, and a policy which states that we discuss President Ronald Reagans March 23, 1983
shall defend, with all our might, the right of every proffer of a Strategic Defense Initiative (SDI), not only
people of this planet to enjoy the same freedom. foredoomed the subsequent collapse of the Soviet econ-
However, to accomplish that, we must change our omy, but removed virtually the last chance for bringing
ways; to became, again, as under the leadership of Pres-
ident Franklin Roosevelt: wise enough to represent that 23. The inauguration of President Abraham Lincoln brought what were
policy effectively. essentially the agro-industrial and social features of the American
System doctrines of Henry A. Carey into U.S. Federal practice, the same
policies which Carey personally introduced to Chancellor Bismarcks
Germany in the late 1870s, and, indirectly, to Japan. These were the
4. This Sessions Legislative Effort same policies which Mendeleyev carried from the 1876 Philadelphia
Centennial Exhibition to Czar Alexander IIIs Russia. Although the pol-
icies had been built into the U.S. republic, by Franklin, Alexander Ham-
As the new Congress comes into its opening session
ilton, and others, the setbacks to U.S. strategic interests by the French
on January 4, 2007, there are many postponed tasks to Revolution and Napoleonic wars, and the advent of Wall Street pawn of
be accomplished, many of which must be done as Martin van Buren of land-bank-scam notoriety, Andrew Jackson, into
quickly as possible. The central issue among all of the Presidency, postponed the consolidation of the economic policies of
these, is the pivotal issue of defining and instituting the the U.S. Constitutional system until the developments under President
Lincoln.
needed forms of U.S. capital budget. 24. The New York Council on Foreign Relations 1975-1976 Project
Without that form of capital budgeting, our repub- for the 1980s (New York: Magraw-Hill, 1977), was a project co-super-
lic would not now survive. vised by the Trilateral Commission, notably the Commissions former
The principle governing the design and application director (1973-1976), Carter National Security Advisor Zbigniew
Brzezinski; Secretary of State Cyrus Vance; and Miriam Camp.
of a true capital budget, is a reflection of the principles 25. Brzezinski was the author of Between Two Ages: Americas Role
of physical economy, rather than of a monetary system in the Technetronic Era (New York: Viking Press, 1970), and Interna-
as such. Although this practice of capital budgeting has tional Politics in the Technetronic Era (Tokyo: Sophia University,
been incorporated into accounting practice elsewhere, 1971). Addressing the stresses that were emerging in the shift from the
industrial era to an era of services, automation, and cybernetics, he
especially in past times, the controlling principle is es- wrote in the 1970 volume that the Technetronic Revolution is beginning
sentially one bearing a U.S. hallmark. This practice was to fracture the nation-state into a global citya nervous, agitated,
standard management and investment thinking in the tense, and fragmented web of interdependent relations.

implies, there is no hope for the preservation of our re-
public over the period ahead, and there would be the
assured doom of a planetary New Dark Age for the Eur-
asian continent. Folly has run its course, too long to be
tolerated any longer. It is time for the U.S. Congress,
among others, to be suddenly awakened to the realities
of the present global situation.
That much said on background, now to the core of
the matter of capital budgeting:
The portion of an investment which may be re-
garded as consumed within a fiscal year, is the portion
which corresponds to the part of an investment which
has been used up physically. We must not count the bal-
ance of investment, after deducting what is used up in
the relevant current year, as a current cost. Accordingly,
counting Federal outlays for capital projects of several
years span, all in the same year the outlay for that proj-
ect is authorized, represents a case of gross incompe-
tence in judgment, and a source of potential catastro-
phes if such misguided practices as that are continued.
In fact, if we continue to act, presently, as if Federal
funds allotted for capital improvements in the public or
EIRNS/Dan Sturman private sector were self-evidently current expenses, our
The central issue before the new Congress is to define and national economy were already doomed to experience
institute the needed forms of a U.S. capital budget, based on something far worse than an economic depression, a
physical economy, rather than a monetary system as such. This
means dumping the reforms introduced by the Carter general collapse like that which medieval Europe expe-
Administration s Zbigniew Brzezinski and his Trilateral rienced as a New Dark Age.
Commission. Brzezinski is shown here at the Democrats What we must do now, is increase the credit uttered
Center for American Progress in March 2006. by the Federal government, the only agency allowed to
do so under our Constitutional system, such that the
about the shift of the U.S., back to that science-driver total amount allotted in each coming year immediately
form of national economic priority which would have ahead, vastly exceeds the amount used up during the
tended to reverse the prevalent economic and related relevant, current fiscal year. This is clearly a tricky
lunacies of the 1970s.26 business, but an indispensable one, and represents a
As its reward for those indicated mistakes in na- chore which we must perform, as I can hear in my mind
tional policy, our republic has suffered much, especially now, the voice of my now deceased, courageous Rus-
the lower eighty percentile of our households, with the sian friend, Professor Taras Muranivsky, saying, in the
immediate prospect of much worse soon, for all of our best way.
households. Without a shift back to what a return to a The best way signifies that the interest charges on
U.S. capital budgeting policy and practice requires and the uttered funds must be decently low, probably in the
range of 1-2% simple interest, and that the accumula-
tion of added real (physical) capital exceeds the net
26. I can report, as a significant insider in these developments, that this
change would have been conducted not only in the U.S.A., but in much
Federal debt created in this way. This means, in turn,
of western and central continental Europe, too. When Andropov flatly that we must concentrate the allotment of relevant Fed-
rejected even official discussion with President Reagan, not only was eral expenditures away from a services economy,
Andropov virtually doomed, but the U.S. opponents of SDI went except as a temporary social measure of relief in the
promptly after my neck, leading to a certain unpleasantness experienced
by me and my associates, in both the U.S.A. and Europe, most emphati-
public interest, and, stay, absolutely, away from finan-
cally, from Spring 1983 until the present day. Real history is often like cial-speculative forms of investments, or, diversion of
that. flows of national income into gambling, or, recreational

drug use, or, kindred waste. The rate of increase of net Against the customary carping critics of such mea-
physical output of the nation, must exceed the accumu- sures, consider the following.
lation of the Federal debt. Had Franklin Roosevelt lived, the freeing of the
This, of course, means a proportionately large com- world from the imperial legacy of colonialism and the
mitment to increase of capital-intensity of investment like, would have created a vast capital market for the
in, in turn, the increase of physical productivity in the products of a converted U.S. war production buildup,
national economy as a whole. The needed balance of the reinvestment of the war debt margins in new capital
investment aims at a public sector of basic economic formation, here and abroad, although it would have
infrastructure outlays in the fairly estimated order of been associated with the combination of a temporary
fifty percent, and requires an emphasis on scientific and austerity, but a healthy accumulation of real capital.
technological progress, with emphasis on physical pro- Our experience during the period of the Truman Ad-
duction and related investment. The increase of the ministration, contained significant evidence in support
physically defined productive powers of labor should of this benefit of a continued Rooseveltian, rather than
be as measured in absolute, not percentile terms, and a pro-colonialist Churchillian policy; but, under Tru-
should express technological progress, rather than la- mans mistaken policies, the proportion of the benefit
bor-intensity. was just not enough.
The development of the physical economy should The concept is clear, if we consider the facts of the
be steered by the implications of a large-scale invest- matter from the standpoint of the principles of physical
ment in nuclear fission as a power source, as a leading economy, rather than mere monetary theory. Indeed, it
mode used in a massive program of desalination in- is monetarist thinking itself which is the source of the
tended to cure illnesses of the physical economy such relevant great error in judgment on this subject.
as reliance on fossil-water sources, and for the mainte- Monetarist dogma assumes that the lending of
nance of other aquifers, the latter as typified by the case money generates what monetarism regards as economic
of the region from North Dakota down into West Texas. value. In fact, as the late John Kenneth Galbraith once
This must be accompanied by a vigorous commitment said of the money lost in the 1929 crash and its after-
to bringing on the assortment of known and potentially math: it is only paper. Under the U.S. Constitutional
knowable technologies associated with the large-scale, system, which is essentially a physical-economic
relatively early development of thermonuclear fusion, system, rather than one premised on usury, the value as-
both as a power source for the economy, and for a cru- sociated with money is what a government is capable of
cial role in augmenting and otherwise managing so- making money do. As an example of this, consider the
called fossil resources. manner in which the U.S.A. must act now, to prevent
The expansion of the space program should be seen what a deep collapse of the perceived value of the U.S.
essentially as a science-driver spearheading much of dollar would do, in triggering a chain-reaction of the
the applicable advances in technology needed for the entire worlds economy into a virtual, or even actual
improvement of the Earth-bound economy. new dark age.
The FDR Paradigm The New U.S. Dollar

Such a program requires a return to the kind of Contrary to monetarist dogma, in reality, the value
thinking associated with a fair trade, rather than free of the U.S. dollar since 1945 has been premised chiefly
trade economy, and to thinking about physical and fi- on the perception that the future value of the dollar is
nancial capital as we did under Franklin Roosevelt. more or less fixed. So, at the close of World War II, the
The principle on which the success of such a pro- U.S. dollar was virtually the worlds only stable cur-
gram depends, is the principle of fostering the increase rency, a dollar whose value was pegged to the assurance
of physical productivity, per capita and per square kilo- of a fixed-exchange-rate system tied, not to a gold stan-
meter, through science-driven technological progress dard, but to a far different proposition, a gold-reserve
in the improvement of the productive powers of labor. standard.
This means technological progress as expressed by em- That system was undermined, chiefly by the combi-
phasis on a science-driver economy of the type which nation of the effects of the ill-conceived U.S. war in
brought the U.S. and its allies to victory over Hitler et Indo-China, and the wrecking of the physical economy
al. in the preparation for, and conduct of World WarII. of the United Kingdom under the first government of

the Kingdoms Harold Wilson. The 1967-1968 succes- The protectionist agreements are needed for state-
sion of sterling and dollar crises intersected the effects to-state relations; a sharp reversal of current free trade
of the Spring 1968 explosion of the 68ers, when 68er agreements, is also indispensable, for creating the con-
assaults against the blue collar strata, wrecked the ditions needed for building large-scale shifts from a so-
influence of the Democratic Partys Kennedy legacy. called service-economy model, to a capital-intensive
Thus, the 1968 general election opened the gates for a production model, within national economies. This
stampede of wild-eyed monetarism throughout the form of protectionism does not imply a reduction in
1970s. In the course of this stampede, the devaluation world trade; it requires a new physical-capital structure
of the U.S. dollar, and the establishment of the float- for an expanded, capital-intensive emphasis in techno-
ing-exchange-rate system, in 1971-1972, followed by logically progressive, hard-commodity world trade.
the Rambouillet conference, created what was, in
effect, an international monetary system based on an Creating New Credit
agreement to believe in the role of the U.S. dollar as the The initial surge in any Federal program for eco-
worldwide floating-exchange-rate systems own re- nomic recovery will be concentrated in investments in
serve currency. basic economic infrastructure, with emphasis on capi-
The onrushing weakening, and threatened loss of tal-intensive categories, such as power, especially nu-
belief in that worldwide U.S. dollars role as an implicit clear-fission power, water management, mass transpor-
reserve currency, threatens the rather immediate, chain- tation, rebuilding the infrastructure for technologically
reaction-like collapse of an already rotted-out North progressive family farming in what had been traditional
American and European system; with the collapse of agricultural regions, and reshaping urban regions.
those sectors, the entire planet falls into a global new Drastic cuts in the cost to students of higher education
dark age. Meanwhile, the simmering state of the finan- will be required, and reorientation of primary and sec-
cial bubble built up on the base of expansion of the ondary education toward a science-technology, and
mortgage-based securities sectors in the U.S.A., Spain, Classical-culture-driven mode in classrooms of what
and elsewhere, is one among the more important trig- had been traditionally moderate size a generation or
gers for a general implosion of the world financial mar- two earlier.
kets as a whole. The rebuilding of infrastructure, especially capital-
The potential for a monetary-financial and eco- intensive modes, will be the initial driver for reversing
nomic collapse of that sort will persist. However, the the preceding trend from an agro-industrial to a
actuality of that threat can be controlled, if the per- services-and-unemployment economy. The stimula-
ceived stable value of the U.S. dollar, over the medium tion of recovery of private contract and related support
to long term, can be maintained. It is not the monetary for the installation of infrastructure, will move the pro-
value of the dollar which is to be considered; but the cess toward a resumption of the U.S.A.s former mis-
political perception that the U.S.A., in concert with sion as a leading agro-industrial economy of the world.
other partners, is committed to keeping that dollar at The general, longer-term perspective of recovery
parity, functioning as a virtual world reserve currency, and development will be premised on the impact of
for purposes of scheduled settlement of accounts, over very large-scale use of nuclear fission, plus an orienta-
a generation or more to come. The nominal value of the tion toward the oncoming of thermonuclear-fusion-re-
U.S. dollar is therefore its political value, based on the lated technologies. These leading-edge technologies
reasonable confidence that accounts can be spread for are essentially expressions of high energy-density ef-
settlement over the span of that forward period ahead. fects in technology, and are, when employed in that
The ability to make, and, even more delicate, to mode, the upper end of productivity per capita and per
keep such promises, demands the erection of a system square kilometer in the economy as a whole.
of protectionist agreements and measures among lead- The current fad fairly described as the green-energy
ing nations typifying the relevant regions of the world hoax, typifies the problem in thinking which must be
as a whole. State to state, and multi-state to multi-state corrected, if a collapse of the economy is to be avoided.
agreements, especially long-term agreements, espe- Nuclear fission is presently the most efficient source of
cially pro-protectionist agreements, would be the bul- power. In certain modes, it is a source of local generation
wark on which the prevention of a presently onrushing of hydrogen-based and related fuels from water, thus
general collapse of the current system depends. eliminating the reliance on the cost factor of transport of

a low-grade material, better used as a
chemical feedstock, petroleum, over
long, and costly distances. The notion
that corn could be the source of the na-
tions fuel for automobiles, is essen-
tially a fraud, and deliberate hoax. The
threat to the food supply from divert-
ing agricultural areas to a gasohol or
kindred program, is monstrous, espe-
cially if this is projected as currently
forecast by relevant sources. The
actual physical costs do not justify the
claims, and the effect of relying on
such sources of fuels would consume
so much agricultural land, as to be the
great granddaddy of all ecological ca-
tastrophes, for which some peoples
surviving families will live to curse General Atomics
the memories of the authors of such a We need nuclear fission plants to provide local generation of hydrogen- based and
murderous and inherently wasteful related fuels from water. The notion that corn could be the source of the nation s
boondoggle forever. fuel for automobiles is essentially a fraud and a deliberate hoax. Here, a General
Atomics design that couples a high- temperature helium reactor, the GT- MHR, to a
What is probably the most inter- sulfur-iodine cycle hydrogen production plant.
esting, and important aspect of the
process of creating credit for produc-
tive investment on a large scale, is typified by the pros- ized nations to our south. Together, we of Eurasia and
pects for Eurasian development under the kinds of poli- the Americas will assume a leading responsibility for
cies which I am projecting here. the rescue of Africa.
Under our U.S. Constitutional system, credit is cre- Without such perspectives, there is no immediate
ated through the lawful commitment of the Federal hope for an imperilled global civilization of today. For
government to utter currency. The alternative, in world this mission, we require leaders who think in a certain
markets, is long-term treaty-agreements among na- way, who make and fulfill commitments in that certain
tions. In the latter case, looking at prospects of coopera- way. Who does what is necessary to meet those goals,
tion among European and Asian nations, our attention and who proceeds always, as what Friedrich Schiller
should be chiefly focussed on bulk treaty-agreements identified as world citizens and patriots, men and
with maturities of between a quarter- to half-century, women who are true leaders, leaders who have sub-
agreements covering large-scale, long-term infrastruc- scribed to a mission for their nation, and also for all
ture investments, and production programs. Again, the humanity? We must think of men and women who see
recommended charge would be between 1-2% simple the Creators eye upon them in all that they do for the
interest on primary, long-term credit. sake of the nations, and their people, as the situation
Considering the size and condition of the population requires. It is confidence and performance in the com-
of Asia as such, much of the former industrial and re- mitment to the mission, which will provide the popular
lated capacity of western and central Europe will be confidence needed to bring the mission to success. In
mobilized to meet the demand. As we see the portent in that way, we need not fear the great crisis now immedi-
tendencies, on a more limited scale now, the overall ately before us. It is the restored confidence of peoples
program for Eurasia along such lines will tend to follow in their governments, a renewed confidence of the
the streams from the capitals from Berlin to Moscow, to people in the meaning of the outcome of their own
Beijing, and Delhi, as to other relevant capitals simi- lives, which will, if we allow that, get us, get the world
larly. The U.S.A., while cooperating across the Atlantic safely through the monstrous storm of crisis now clos-
and Pacific, will emphasize its partnership with revital- ing in upon us, from all sides.

Larouche - The Lost Art of The Capital Budget

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December 22, 2006

WHAT THE CONGRESS NEEDS TO LEARN

The Lost Art of the Capital Budget

Since that notorious uproar

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The Subject of Modern Sophistry

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...The administration of the great system of

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terpoint prompts a known tendency among trained art-

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The FDR Paradigm The New U.S. Dollar

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