The American System of economy and that system
which has been promoted by Gottfried Wilhelm Leibniz, who was the first one to develop
this notion of physical economy, and which was subsequently promoted by Alexander Hamilton,
by Friedrich List, by Henry C. Carey, and which was for sure developed very much further
by my husband Lyndon LaRouche, that system assumes that the only source of wealth is
the creativity of the individual, because it’s the ability of human beings to again
and again discovery universal, physical principles, which are otherwise called scientific progress,
and when you apply that scientific progress in the production process as technology, it
leads to an increase of productivity and therefore, an increase of the living standard, longevity
and the well-being of the population. And that is essentially what the Chinese model
is approximating today. This is in stark contrast with the neo-liberal
monetarist model, the so-called “British model,” which basically looks not at the creativity
of the individual, but at money — money, money, money! And therefore, this monetarist view is quite
satisfied if the stock value increases, if the profit increases, if all these things
lead to a temporary illusion of an increase of money, which for the most part is virtual. And obviously, we have seen the spread of
this neo-liberal system, especially after the collapse of the Soviet Union, where all
gaps and stops were taken out and the deregulation of the markets was just going haywire, and
that led to the 2008 crash. The remedy was to print more money. They did not correct the causes of the 2008
crash, but went for “quantitative easing,” money printing, defense of the speculators
and the banks, and that has resulted in the fact that we are now on the verge of an even
bigger blowout, which many people are warning about — Janet Yellen, former head of the
Federal Reserve warned several times in the last weeks; Ron Paul. And the fact that Fed just increased the interest
rates, again, very little, but nevertheless, has caused enormous nervousness in the market. And there are many, many mines which could
blow up, one of them being Deutsche Bank, which is continuing to go down in the markets. I think it’s somewhere around EU7 per stock
right now, or even teetering on going below that. Or, naturally the big one is coming, which
would be a disorderly Brexit, which could blow up the derivatives markets of the City
of London, and that is right now one of the big time-bombs, where already warnings are
about that that could really go completely out of control. Obviously, this means we have to get the West
to go away from the neo-liberal model, which is not functioning, which has increased the
gap between rich and poor, and we have to go back to the American System, or, in Germany,
the system of the Kreditanstalt fur Wiederaufbau, which was contributing to the economic miracle
in the postwar period, and go back to those kinds of policies which benefit the common
good. And that would mean, today, the Four Laws
of LaRouche — Glass-Steagall, a national bank, international credit system, crash program
for fusion economy and space cooperation — and then cooperate with the New Silk Road. This entire package must be put on the agenda,
if we are supposed to avoid a total catastrophe.

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6 thoughts on “China is Choosing the American System Over British Monetarism”

  1. You are wrong. China is sending top lawyers and judges to Singapore to study Singapore'ss judiciary and parliamentary system. Singapore practised the British system.

  2. i think the development of human society is very similar to that of cosmos or universe.
    neither China nor USA is immortal. both will be fragmented, melted, fused into another form/version of civilizations. we need to focus on creative design and promote cautious innovation of human society.

  3. The western model is based on opportunistic speculation? Are you saying that the Chinese are not concerned about money? Your view is clearly one-sided and biased. This isn't a black and white issue, the faults of the western capitalism are not necessarily in the system itself but rather in its mismanagement, human errors and political miscalculations, the same extends to the Chinese model, they too are making errors and taking risks as we speak and no system is bullet proof for the simple fact that humans are inherently selfish and forgetful so everything pertaining to the human condition and continuation has to be cyclical.

  4. I think China will mold it's own model which some things they eventually borrow from other systems… aka e.g communism/socialism with chinese characteristics… they will somehow determine and getting bits and pieces and mold it on what works for them,.

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