In his June 27th webcast, American economist and statesman, Lyndon H. LaRouche Jnr, reiterated the necessity for an immediate bankruptcy reorganisation, in order to rescue the rapidly collapsing world economy.

“The United States’ government must state the policy, that the world as a whole is hopelessly bankrupt, financially; that the present financial-monetary system of the world is hopelessly bankrupt. We are not going to let the people go into bankruptcy. We’re going to put the systems that are at fault, in bankruptcy reorganisation. We’re going to take the parts of the banks, where people’s savings and things like that are located; we’re going to keep those banks operating, their doors are going to be open, under government bankruptcy protection. The filth, the wastepaper, which we’ve been bailing out—no, it goes!

“We take Wall Street’s interests, and similar scoundrels’ interests, these large amounts of money, we say, ‘Sorry, buddy! Bankruptcy reorganisation—and your assets just got chopped!’”

LaRouche made clear that the collective decision of nations, since we entered the global economic-breakdown in July 2007, to put the banks, and their bail-out, ahead of the people has brought us to the brink of disaster.

He gave the example of California (the world’s sixth largest economy)—where budget cuts are exacerbating the bankruptcy. The state will run out of money in July, and will be forced to issue IOUs to pay vendors, state contractors, and low-income, disabled and old-age pensions. More than two weeks ago, California’s state comptroller John Chiang estimated that the state was "less than 50 days away from a meltdown of state government."

Community health clinics, disability and in home support services, child welfare, and foster care, are amongst the critical services on the chopping block. Revenue collections from personal income taxes for the first five months of 2009 were already down by 34%, and further cuts (or IOUs) will cause the coffers to dwindle further.

In contrast, LaRouche’s proposal for a bankruptcy reorganisation would clear the decks, to allow the creation of a Hamiltonian-style credit system—“We use that to reorganise the world: by going to other countries, such as Russia, China, India, and other countries, and we ask them to join us, in creating an international credit system, based on the sovereignty of nation states.

“We create the credit program. What do we do? We create productive power. The power to live, the power to increase our productivity. We rebuild our country: We put back the railroad system, in a new form! We rebuild our industries... the agricultural system”, as well as healthcare.

“If we do that over the long term, 30 to 50 years, we can rebuild this planet. If we are not willing to do that, however, and precisely that, the decision not to do that, is a decision to commit national suicide. And it’s coming on fast.”

Click here to view LaRouche’s webcast.