Federal Reserve Officials Conduct Brainwash Session at Southern Governors Conference
August 25, 2007 (LPAC) --The Southern Governors Association Annual meeting opened at a casino in Biloxi, Miss., on the "redneck Riviera" today, with three regional Federal Reserve Presidents conducting a brainwashing seminar on the virtues of the "service economy." Despite the recent weeks of turmoil on financial markets due to the ongoing crash of the housing bubble, and the unraveling of financial institutions which engaged in heavy speculation on housing related paper, not a word was spoken on this topic. When LYM member Francisco Medina asked Dallas Fed President (and former Brown Brothers Harriman partner) Richard Fisher about the Fed's actions to bend the rules to bail out Citigroup and the Bank of America, Fisher said, "I didn't come here to discuss that, I came here to discuss imports and exports," while an Association official told Medina that there is to be no press availability for the Fed members.
In their presentations, the Fed Presidents spoke glowingly of the transformation of the South from a region dependent upon industry and agriculture, to one embracing the "service economy." According to figures they presented, 82% of the GDP in the South is from the service economy, with factory output at 11%. Eighty percent of the apparel industry is gone, with paper and furniture being phased out, and agriculture continuing to decline. This is good, they all agreed, with several using the concept of "creative destruction" (from Austrian quackanomics professor Josef Schumpeter) as the positive force driving the transformation. As industry and agriculture decline, the internet has become the driving force of economic growth. We have replaced industry and agriculture with "creativity", said Fisher, who added that we now "use our brows, not our brawn." The only danger, they all concurred, is that there will be efforts to impose protectionist measures to stop outsourcing of U.S. industries.
Asked by one Governor about the future of the rural economy, the Fed Presidents called for "more innovation, based on computers." Outsourcing has been beneficial, they said, opening the potential for improving life in rural areas. The only Governor who challenged them was Louisiana Gov. Blanco, who raised the problem of the declining value of the U.S. dollar, and added that states want to bring in more manufacturing, that the internet isn't for everyone. She was partially answered by Gov. Riley of Alabama, who agreed that manufacturing brings stability, but that the quality of rural life has been improved through outsourcing!
We are distributing a packet, which includes the [a:href="\/news\/2007\/08\/22\/larouche-proposes-homeowners-and-bank-protection-act-foreclo.html";title="LaRouche Homeowners and Bank Protection Act of 2007"]LaRouche Homeowners and Bank Protection Act of 2007[/a], the [a:href="\/files\/pdfs\/070810_fdr_era.pdf";title="July 25 webcast pamphlet,"]July 25 webcast pamphlet,[/a] and additional material on [a:href="\/files\/pdfs\/070807_organization_recovery.pdf";title="infrastructure and bankruptcy reorganization"]infrastructure and bankruptcy reorganization[/a] from the LPAC website. Three Governors received the packet personally, while a fourth had his aide take it. One Governor, in a brief discussion with a LYM organizer, agreed that it was strange that there was no discussion from the Fed officials of the collapsing financial system, adding that he believes that the housing issue would have been "timely" to discuss. Another Governor agreed that they should discuss the crisis facing homeowners.
The conference will continue through Sunday. There will be ample opportunity for LYM members to organize the Governors, and their staff members.