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PRESS RELEASE
 Contact: Angela Vullo
Tel: 1-800-929-7566

LaRouche praises European Infrastructure initiative,
Points to similar plan as solution for U.S. states
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Click here to listen to an archive of the July 2nd webcast.
July 3--Speaking to an international webcast in Washington, D.C. on July 2, Lyndon LaRouche pointed to the importance of the initiative being taken that same day by Italian Prime Minister Silvio Berlusconi, who was presenting plans for a European Investment Bank before the European Parliament. That presentation, in favor of a large-scale infrastructure program, not unlike FDR's, LaRouche said, represents "a change in the world economic and financial situation."

Later, in answer to a question posed by Nevada State Sen. Joe Neal about 16 states being in emergency sessions over funding collapse, LaRouche said that the kind of approach to funding infrastructure which Berlusconi was proposing, is precisely what's necessary for the U.S. states to resolve their problems.

LaRouche said:

"So now you're in a situation where you can not possibly balance the budget of these states. It can't be done. And I think probably, about 46 to 47 of the states are actually in that condition. Take the case of California: It's way beyond that. And that's one of the largest states in the Union.

"So, what does it amount to? How do you deal with it? There's only one way to deal with it. The Federal government has the power to create credit. No other agency in the United States has the legal, constitutional power to create credit; that is, you can not manufacture credit, except by the consent of Congress, through the Executive. It can not be done. Therefore, what is needed, is a Federal funding, which would then-- the states would participate in for infrastructure projects, just like the European Investment Bank that I mentioned today, earlier.

"A special fund outside the regular budget, which is a source of funding, for infrastructure projects: water projects, transportation projects, things of that sort, which are long term--15, 25-year investments. Which will create employment; which will create production. So the trick here is to increase the total employment level, to the level that the income of the population is now able to pay the bills of the state...."

LaRouche summarized the kinds of projects involved--water, power, land resources improvements, etc., stressing that, "It's a Federal government responsibility. And it would take one thing; one good imitation of what Roosevelt did with the Reconstruction Finance Corporation, with a mission orientation, and Federal legislation behind it: I think a five-page piece of legislation, through the Congress, signed by the President, would be enough to get the job done."

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Paid for by LaRouche in 2004

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