Helga Zepp-LaRouche Addresses Moscow Conference on Economics
The annual Moscow Academic Economic Forum was held on May 26-27, 2021 under the title “Global transformation of modern societies and the national development goals of Russia,” with the participation of top representatives of the country’s economic and financial institutions. Helga Zepp-LaRouche, founder of the Schiller Institute, was invited to speak online at a panel at the Financial University of Moscow on May 27.
Her intervention, which dealt with “Energy Flux Density As the Criterion for Physical Economy”, was a targeted (and perhaps surprising for many) polemic against the various “Green Deals” now being pushed, which fly in the face of any sound economic policy. We quote one excerpt of her speech.
“After the 2008 systemic financial crisis, nothing was done to correct its root causes. Instead, central banks relentlessly pursued a policy of QE, zero and even negative interests, favoring speculation at the expense of investments in the real economy. That widened the gap between rich and poor, eroded the productivity of the physical economy, and built up an inflationary bubble, which remained hidden for some time. When the Covid-19 pandemic and the subsequent lockdowns hit, the various ‘stimulus’ and ‘recovery programs’ served as a welcome pretext to continue to bail out an already bankrupt financial system.
“The total assets of the Fed grew from under 1 trillion in 2008, to 4.1 trillion in September 2019 to 7.8 trillion by the end of 2020. Similarly, the balance sheet of the ECB grew from 1.5 to 4.6 to 7.5 trillion by the end of April 2021. At this point, there is an unprecedented 75% increase in money creation year on year, heading into a hyperinflationary collapse.
“It is that imminent bankruptcy of the transatlantic system which the central banks are trying to postpone by means of the ‘Great Reset’, ‘Green New Deal’ or ‘Green Deal’, which is intended to loot tens of trillions of dollars out of real industrial and agricultural production and direct all investments into a ‘green finance’ bubble. The exit from fossil fuel-related industries and into ‘carbon-neutral’ production, construction, and architecture (wood and bamboo) represents a gigantic technological leap backwards. For the so-called advanced
countries, it would lead to enormous price increases, a drop in the living standards, and social chaos. For the developing nations, it not only means the perpetuation of poverty and underdevelopment but also, in particular under the present conditions of pandemic and famine, massive depopulation.
“With his science of physical economy Lyndon LaRouche developed the yardstick needed, by defining the exact correlation of the energy flux density used in the production process and the associated relative potential population density which can be maintained on each level. Since wind and solar have very low energy flux densities, and many countries, such as Germany, are exiting nuclear energy, the ‘Great Reset’ threatens to lead to a population reduction of billions, which is the result desired by the neo-Malthusian advocates of ‘green finance’. The Green New Deal is the opposite of the New Deal of Franklin D. Roosevelt: it is the revival of the economics of Hjalmar Schacht, with the same results: mass death and war.”
Helga Zepp-LaRouche went on, in her presentation, to outline the emergency measures that her late husband Lyndon LaRouche had proposed, and which are more urgent than ever today. The full speech is available at: https://larouchepub.com/pr/2021/202105028_lead-editorial.html