Story 3a - Here Begins a New World.
"And what does that mean in real terms?" he asked.
"Let me tell you," he answered his own question.
He cited the case of a small country of less than thirty million people. He told us that this small country had been forced to maintain a slush fund of almost fifty billion U.S. dollars, with which to defend its currency against the ravishing actions of the international currency speculators. He explained that not only was this money taken out of the economy and set aside to defend the country's currency against the speculators, he also explained that the slush fund itself was also in constant need to be replenished to make up for any losses which the speculators claimed as profit. He told us, that in this fashion all the nations of the world provided immensely huge profits for the speculators, in a game that the speculators demanded as a means for maintaining the value of the free floating currencies. The banker compared this insane game to that of a protection racket with global blackmail demands.
He paused momentarily and then told the audience that these slush funds, that every nation in the world had to maintain, together with their corresponding drain on the financial resources of the nations of the world, will no longer be required as soon as he becomes successful in his campaign to create a fixed rate, new Bretton Woods type system. He told us that
after the Bretton Woods system collapsed, less than one percent of all currency exchanges were required for international trade payments, the rest was for profit generating speculation that he vowed would never happen again.
He illustrated to the audience how big these slush funds really
are, which he said typically amounted to fifty billions of dollars for a medium size country. He illustrated what a fifty billion dollar
slush fund really amounts to in actual economic terms. He pulled a bill out of his wallet and showed it to the audience. He said that this specimen that no one recognized is an extremely rare ten-thousand dollar
bill, U.S.. He held it up and said that this single bill would have been a dream come true for most people on the planet, even in the richest nations, or that it would have been sufficient to guarantee life and health for countless villagers in most of the poorer countries on earth. Then he asked everyone to keep in mind the tall, golden office tower that had been erected near the conference center, which was said to be the tallest building in all of Caracas. He told us that if one of his banks would have been required to pay out in cash an amount of fifty billion dollars, his people would have had to pay out five stacks of these ten-thousand dollar bills, each
stack piled as high as the golden office tower, the tallest building in Venezuela.
"Can you imagine what a small country could have done with these five huge piles of ten-thousand dollar bills, in support of its population?" said the man. "It could have kept hospitals open, that were shut down. It could have build decent places for people to live, especially the marginalized people who had become homeless and were dying on the streets. It could have kept pensioners from starving to death; the very people who had build that country and had defended it in wars. It could have set up universal education at every level, and other cultural necessities. It could have supported its farming and transportation industries, that have collapsed. In other words, it could have saved that country's civilization. And all of that could have happened all over the world," said the man. "Hopefully, this
will happen again when the slush funds are no longer needed."
He reached for his letter to the governments again and said quietly that
this single suggestion in his letter, to stop the international currency speculation by setting up a new Bretton Woods type monetary system with fixed exchange rates would change the whole world. He admitted though, that this idea wasn't really his own idea. He said that this idea had been put forward repeatedly for years upon years, like a broken record, by the most despised, most slandered, and most persecuted economist in America, a fellow by the name of LaRouche, a man
whom he had hated personally for years. He explained that he had hated that man,
that despised economist, together with everyone else, because that man had spoken out against greed and against theft,
the very thing that had become the foundation of the world-financial system. He
said the man was also hated because he demanded a return to policies that
support the actual production of things that support and enrich society.