EIR Recommendations on BRICS Policy Picked up in Russia

In view of the upcoming BRICS summit on Aug. 22-24, EIR and the Schiller Institute issued recommendations which have been picked up by one of the most important figures in the ongoing “de-dollarization” debate among the BRICS, minister of the Eurasian Economic Commission Sergei Glazyev. The EIR paper, drafted by Dennis Small and Mary Jane Freeman, was published in the Executive Intelligence Review dated June 16, 2023, under the headline “Some LaRouche Essentials For Transition to a New International Financial System“ and was posted by Glazyev Aug. 7 on his Telegram channel. It had been previously posted by Russia’s National Committee on BRICS Research.

After a review of the events and developments that initiated the ongoing “de-dollarization” process and debate, the two EIR editors insist that the precondition for a successful new global monetary system or reserve currency is that the dollar must “de-dollarize” or “de-londonize” itself. That means it must separate from the global speculative bubble, and return under the control of the United States government. This must be done with the adoption of a Glass-Steagall like global banking reform.

That said, concerning the creation of something new, “the weakness of the deliberations to date, in both the Global South and the West, has been that both sides remain largely unclear about what it takes to provide solid backing to that new currency: i.e., what is the true source of economic value. There has been too much tinkering with financial technicalities, and too little thinking about the scientific principles of physical economy. As important as it is to have trade settlements in local currencies; as important as it is to set up non-dollar swap facilities and even full-fledged clearing houses; the decisive issue is to be able to issue non-dollar Hamiltonian credit for productive infrastructure and other investments — and that goes for the United States and Europe as much as for the Global South.”

The paper refers to LaRouche’s groundbreaking 2000 essay On a Basket of Hard Commodities, Trade Without Currency.

In reposting this paper, Glazyev wrote (in Russian): “Here is a memorandum from the Schiller International Institute on the topical subject of building a dollar-free world monetary and financial system. Helga LaRouche, who sent this memorandum, continues the work of her husband, a great thinker-economist, who more than a quarter of a century ago forecast the inevitable collapse of the dollar monetary system. LaRouche’s famous crocodile — the diverging curves of global GDP growth and the capitalization of the U.S. financial system — has only opened its jaws wider since then, devouring real values in exchange for the issuance of unsecured dollars”.

The paper by Small and Freeman is accompanied by a summary chronology, starting in Jan. 2022, of the use of the dollar as a weapon, in the form of sanctions, as well as of the moves worldwide to de-dollarize.