Introduction: Economic Recovery Plan 2025

By Diane Sare

At an international webcast, July 25, 2007, Lyndon LaRouche said:

What’s listed as stock values and market values in the fi­nancial markets internationally is bunk! These are purely fic­titious beliefs. There’s no truth to it; the fakery is enormous. There is no possibility of a non-collapse of the present finan­cial system—none! It’s finished, now! The present financial system can not continue to exist under any circumstances, under any Presidency, under any leadership, or any leader­ship of nations. Only a fundamental and sudden change in the world monetary financial system will prevent a general, immediate chain-reaction type of collapse. At what speed we don’t know, but it will go on, and it will be unstoppable! And the longer it goes on before coming to an end, the worse things will get. And there is no one in the present institutions of government who is competent to deal with this.

NEW YORK, May, 2025—The long-awaited end of the London and Wall Street-dominated transatlantic system is now in its final avalanche-like phase. Stop obsessing about your 401(k), and contemplate the future of your grand­children. If you address that, everything will turn out just fine. Nothing is occurring today which America’s greatest economist, Lyndon LaRouche, did not already warn about years ago, and for which he did not provide solutions based on principles which have worked in our nation’s history.

Unfortunately, as was the case in 2007, there is no one in the Congress or the White House who has demonstrated any understanding of the current financial and economic breakdown or how to solve it. But you can use the material in this booklet to demand that your representatives stop being slaves of the people who made this mess, and act, in this 250th year of the existence of our republic, to take the needed action.

President Trump’s impulse to make the United States productive again is laudable, but attempting to do that through arbitrary punitive tariffs, or “stable coin” schemes, will only make matters worse. If the president capitulates to Israeli Prime Minister Bibi Netanyahu, and Bibi’s British Zionist handlers, and starts a war with Iran, any recovery will be impossible, and the world as you know it today will come to an end. We can organize an economic recovery, but in order to do that, as when President Franklin Roos­evelt assumed the presidency in 1933, we must first be will­ing to admit the scale and depth of the problem, including that this collapse was brought upon us by our own insane policies, and not caused by alleged “predatory” practices of any other nation.

I am writing this preface as president of The LaRouche Organization, and as a former, actually qualified candidate for U.S. Senator from New York (unlike the incompe­tent and mal-intended Senators representing us to­day). I was wise enough to associate with LaRouche as a college student in 1987 and worked on five of his eight presidential campaigns—1988, ’92, ’96, 2000, and 2004—and then served on a national “policy commit­tee” directed by him from 2012–2015. I am writing this brief platform in consultation with several economics editors at Executive Intelligence Review, founded by Mr. LaRouche over 50 years ago.

Lyndon LaRouche (L) with Diane Sare (R) during a 2013 Policy Committee discussion.

When Did this Crash Actually Begin?

If you wanted to put a precise date on the start of the crash, it would be August 15, 1971, the date that President Richard Nixon, under financial warfare from Britain, and intense pressure from fascist George Schultz, decoupled the dollar from the gold reserve system. (Note: it was not a “gold standard” where printing of currency would be restricted to the amount of gold actually on hand, which would not allow credit, and therefore would not work, but a “gold reserve,” where nations would use their reserve of gold to settle trade deficits or surpluses at specified peri­ods. The dollar was pegged to gold, and stable exchange rates with other national currencies were fixed, not float­ing, based on that value.)

In 1995 Lyndon LaRouche developed the Triple Curve representing the twin phenomena of physical economic collapse coupled with galloping inflation of monetary and financial aggregates.

Lyndon LaRouche, uniquely, had forecast months earli­er that Nixon was going to bring down the Bretton Woods system, and warned that doing so would lead to a state of perpetual war and fascism. The recently departed “Col­lective Biden” Administration was the disastrous embodi­ment of LaRouche’s warning.

With the end of fixed exchange rates came the end of production. Why go through the effort to actually produce and trade physical goods, when you could make much more “profit” by speculating on someone else’s currency? Billionaire George Soros was the master of that, destroy­ing national currencies and the livelihoods of millions of people with the stroke of a pen.

Why Did the American People Go Along with the ‘Post-Industrial’ Economy?

The American psyche had been softened for the self-de­structive shift from producer to consumer, and the parallel shift from republic to empire, by an operation, directed by the British Tavistock Institute and the CIA, known as the “Congress for Cultural Freedom.” The result of this shift was that the blue-collar, productive worker was looked down upon by society, and every mother wanted her child to become a clean, white-collar millionaire consumer, un­concerned with the plight of the people supporting that lifestyle.

This shift to consumerism was imposed on a population traumatized by the assassinations of President Kennedy, his brother, Senator Robert Kennedy, Malcolm X, and the Rev. Dr. Martin Luther King, Jr. They were traumatized by the Vietnam War and the introduction of mind-alter­ing substances to unsuspecting students on the college campuses under the code name MK-ULTRA, a part of the above-mentioned Congress for Cultural Freedom. The young adults of the ’68-er generation literally lost their minds and turned inward, searching for personal pleasure to make the outside world go away.

The result was an entire generation of political leaders who are seemingly incapable of comprehending the results of their actions. The decision to send long-range missiles to Ukraine to be guided by American technicians for attacks deep within Russia is just one example of the folly of such thinking. The idea that the EU is going to “prepare for war” with Russia by spending €800 billion on weapons manu­facturing is another. The results of such deluded policy de­cisions are unfathomable to the people making them, and quite potentially deadly for the rest of us.

Tariffs won’t bring back manufacturing.

Making imported goods expensive, including crucial components needed for manufacturing in the United States, won’t bring back industrial production. Ask anyone who produces anything in the United States today: What is the quality of your workforce? How many applicants can­not pass a drug test? How many young people can count change without consulting an electronic device? How far away are the supplies you need for your industry? How long does it take them to arrive, and did the train derail enroute? Do you have enough electricity, and is it reliable? A zinc mine in upstate New York has to schedule the most power-demanding parts of its operation during certain hours of the day so as not to cause black outs in the nearby town.

There are reasons to reject un­bridled “free trade” in order to protect a nation’s economic sovereignty, but that is not the same thing as launching punitive tariffs against a “competitor” while having no plan to actually increase production in the United States.

You can’t plop down a factory in the middle of a field with no electricity, no abundant fresh water supply, no skilled workforce and no hospitals or schools for the work­ers’ families and produce anything except a demoralizing mess.

We can absolutely reverse this collapse, and revive our pro­ductive economy, but it will take a cultural shift, away from the worship of mammon, toward a better understanding of mankind’s relationship to the development of our species’ fu­ture, and the development of our universe as a whole.

Where do we start?

We can rapidly organize the greatest economic recov­ery mankind has ever seen, if we take the following steps, based on Lyndon LaRouche’s 2014 “Four New Laws to Save the U.S.A. Now!”

1. Restore Glass Steagall

The $2 quadrillion speculative cancer has got to go— Wall Street and the City of London are going to have to take the hit. The original Glass–Steagall U.S. Banking Act of 1933 should be reenacted, splitting the banking system into two: on the one hand, the commercial banks that en­gage in productive lending (and that therefore get the full backing of the U.S. Federal Deposit Insurance Corporation (FDIC) and the U.S. government in general); and on the other, so-called “investment banking,” i.e., wild specula­tion, which will be rolled up, frozen, and given no govern­ment backing. No more bailouts of the cancer. This will also do wonders for balancing the federal budget.

(It should be noted here that the British would con­sider the reenactment of the Glass–Steagall Act an “act of war,” and that therefore coordinated actions of at least the United States, Russia, and China as well as some of the larger BRICS na­tions would be necessary to flank any dirty tricks and howling and shrieking from the Wall Street and City of Lon­don billionaires’ club. Hence, treaty agreements would need to be made with those nations to reestablish a fixed-exchange rate international financial system, as be­fore 1971, that will provide a favorable, predictable frame­work for global infrastructure and other investment proj­ects. The British will come along once they are convinced that they have no other option.)

2. Credit for a Productive Economy

The productive sector of the economy—which since 1971 has collapsed as fast as the speculative bubble has grown, as is indicated in LaRouche’s famous Triple Curve Function—must be revitalized with a new source of credit to finance the great infrastructure projects and reindustri­alization needed. This includes reconverting the military-industrial-financial complex to useful production, which today is a net drain on the productive economy.

One viable way to create such productive credit flows, the way Alexander Hamilton did with the First National Bank of the United States, would be to nationalize the Fed­eral Reserve, rather than using it to bail out the bankrupt banks to the tune of tens of trillions of dollars. This could begin with the creation of a National Bank for Infrastruc­ture in the New York Fed, to begin with power, water and other infrastructure projects for the United States, and international loans to development projects. The bank would be capitalized initially by trade-ins of Treasury debt for equity in the Bank

3. Increase "Energy-Flux Density"

As LaRouche wrote, “The purpose of the use of a Fed­eral Credit-system, is to generate high-productivity trends in improvements of employment, with the accompanying intention, to increase the physical-economic productivity, and the standard of living of the persons and households of the United States.” This means emphatically an increase in energy pro­duction and consumption both per household and per square kilometer. That is, “energy-flux density” must increase, along with capital intensity of produc­tion, driving an increase in the productive powers of labor, which will increase the purchasing power of the average household in­come, making life afford­able again for a growing number of Americans.

4.Science Driver Programs

We need a science driver program to develop controlled thermonuclear fusion energy both for terrestrial use, as in­dicated above, but also for space colonization. Russia and China are working to establish a nuclear-powered indus­trial base on the Moon in the 2030s. Rather than trying to sabotage their efforts, the United States should become a partner, as we have partnered with Russia on the International Space Station for 50 years so far. The benefit of such collabo­ration to our own domestic economy will rival that of Kennedy’s Apollo Mission to land on the moon, which generated $10 in economic growth for every $1 spent.

Such endeavors, which challenge man­kind to discover new physical principles, are the natural aim of human beings, and will inspire the younger generations, who currently believe “we are screwed,” to en­thusiastically become part of a self-trans­forming optimistic and prosperous society.

The following pages will include spe­cific examples of great infrastructure projects and other initiatives which will drive the economic and cultural re­naissance of our nation, as well as a short introduction to Lyndon LaRouche, who will one day be broadly recognized as one of the greatest minds our nation has ever produced.

Swords to Plowshares: Retool for the Good!

Legislation drafted by The LaRouche Organization, entitled “The Swords to Plowshares Act of 2025,” proposes to stop sinking trillions of dollars into wars and destruction. “Retool” the weapons manufacturers to produce components for advanced infrastructure projects, such as modern high-speed rail (see below), water and power systems, and 4th generation nuclear power plants, as well as high-tech industrial parks.

A keystone project for the reindustrialization of the United States, that would absorb some of the misused productive capacities of the military-industrial sector, is a modern nationwide rail system. First, modernize 26,000 miles of the current core rail network; secondly, upgrade another 16,000 miles, for a total of 42,000 miles of high-speed, electrified, double-track rail.

This will result in a national grid, including selected magnetically levitated lines, which provide passenger and freight transit, which can then be integrated with new development corridors throughout the Western Hemisphere, and even across to Eurasia, via a long-overdue Bering Strait tunnel crossing.