Question: Hi sir, I have one question to ask you. In [inaud], I had set up a little, small project. In the future, I want to set up some new policies that are [inaud], so I also want to collect the tax from people, like sales tax, [progressive?] tax, and excise tax, and some other taxes. Because I want to do this, so that money comes from these to general welfare, medical system, and social security, and also for country and state protection.

But, something I want to ask you, this will violate the rights of some people. So, if you've written in 1,000 or 2, or 4, do you upset this veto, this policy; if you set up in the future, when you collect the money, and for to build projects like a railroad system, water system project, and everything--state protection, and country protection, and general welfare, and social security, and [] of our future generally , it's not good. I'm not ready. So, could you answer me. This one violates the rights of some people. If you've written, "you accept this one or not." So, could you tell me more details, so I can [decide] what I do in the future, or may not do in the future.

LaRouche: I got it.

Now, there's a misunderstanding involved in your question. The misunderstanding is about taxes. The misunderstanding about money: Now, money is an idiot, intrinsically. There is no intrinsic value to money. It's extrinsic.

Money is something which should be created and allowed to be created only by governments. Any other form of money should be immediately outlawed: That is, private banking money should be outlawed, as currency. Hmm? No private agency, such as an independent banking system should ever be allowed to issue and control currency, period.  My objective is to eliminate that system of independent central banking system, from the planet--and from the universe, if necessary (if it exists anywhere else, beyond our planet!)

Money should be created only by the governments, as a sovereign act of government, as the U.S. Federal Constitution prescribes. Money should be managed by such a government, through a national banking system, which is responsible for this regulation and supervision of the circulation of currency; and of banks.

Now, how do we make behave? If you look at the world today, you see that, over the past period, since 1966, the total amount of financial aggregate, per capita, has increased more or less hyperbolically, on the average. That the money that's issued, has expanded, more or less hyperbolically, and until recently, only at a slower rate than financial expansion. But, at the same time, over the same period, there has been a decline in the per-capita production of physical values; so that, we have a collapse of physical values, at an accelerating rate, with an accelerating growth of nominal financial values, and now, with an accelerating hyperinflationary expansion of the issue of monetary aggregate, to try to prop up collapsing financial markets: Insanity.

The function of government, in taxes, and also in regulation, in protectionist measures, is to regulate the circulation of currency, and the circulation of money, in such a way as to ensure, that the nominal value of money, and the nominal value of monetary aggregate issued, does not exceed the rate of growth of physical values, per capita and per square kilometer.

So therefore, the way to solve these problems of money, taxes, and so forth, is simply to go to what is called the "American System," the protectionist system, based on a system of worldwide, fixed exchange rates; long-term fixed exchange rates; and a protectionist system. With the function of government is to ensure-- and cooperating agencies among governments--is to ensure, that the value produced, physically, rises at least as rapidly, as the increase of financial assets, nominal financial assets, and the increase of monetary circulation.

Therefore, government must intervene. Any attempt to devise a system, of taxation or otherwise, not to do that, but to do some substitute for that, will not work, and will ultimately fail, catastrophically, as has been the case.

So, what we have to do, is get rid of this idea, that money has natural value whatsoever. Money has no natural value. The value of money must be determined by regulation, which keeps the value of money, and the value of financial assets or claims, in line with the growth of physical assets. And, that's what my work is based on.

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