July 18 2008 (LPAC)–On July 1, Lyndon LaRouche proposed emergency action by the US Federal Reserve Bank, to prevent social chaos, in the face of looming collapses of some leading US commercial banks and other financial institutions. LaRouche presented two emergency measures, aimed as stop-gaps, to prevent chaos. First, he called for the Federal Reserve to raise interest rates to four percent, in order to assure that institutional depositors maintain their deposits in the banking system. Second, LaRouche called on the Federal Reserve to make it clear that whenever any commercial banks face insolvency, they will be put through bankruptcy reorganization under Fed protection. LaRouche further emphasized that the Federal government must immediately enact legislation, to massively increase credit for vital infrastructure projects. Today, LaRouche reiterated that the Fed must increase the interest rate to 4 percent. The only exception to this rate would be federally legislated credit extended for the development of needed infrastructure projects based on a capital budget approach. The interest on this credit should be in the range of 1 to 2 percent. We would thus have a two-tier credit system. LaRouche emphasized that the 4 percent interest rate is necessary to staunch the flow of funds out of the system into speculation and to defend the US against the British and the Europeans who are trying to incite panic in order to trigger an outflow of funds from the US and a collapse of …