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Executive Intelligence Review, Volume 14, Number 18, May 1, 1987

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Executive Intelligence Review, Volume 14, Number 18, May 1, 1987 ilillQuarterly Economic Report REAL/IT CATCHES UPW/TH THE MYTH- MAKERS • "One-third of a nation," to use FOR's famous phrase, "is ill-clothed, ill-housed, and ill-fed" again today, as in the 1930s. The good news about the "Reagan recovery" is that the official unemployment rate is way down. The bad news is that the figures are faked, and represent displacement of the workforce into low-pay, low-benefit jobs, or involuntary part-time jobs. It represents personal credit-card debt, jobless workers without unemployment benefits, hungry persons without food stamps, underemployed or unemployed workers seeking food charity, homeless persons, and rapidly growing poverty. • One year ago, EIR warned that the U.S. physical economy would begin a 15- 25% annual rate of decline sometime in 1986. We argued that such a decline could be slowed, by available political means, but even if slowed, would not be held back beyond the last quarter of the year. In June, the first evidence came in confirming our prediction. In December, again, we were right on the button. • The political climate in which the administration has been able to peddle the · lies that underpinned the recovery myth has itself changed. November's mid-term elections were a crushing defeat for candidates, especially Republican Party sen­ atatorial candidates, who were identified by the electorate as supporters of the administration's economic policies. Contents I. Introduction: reality catches up with the myth-makers and their frauds II. Poverty spreads as the 'safety net' collapses III. The collapse of basic industry IV. How defense and space programs drive economic growth V. The world food shortage worsens VI. The forecasting success of the LaRQuche-Riemann method VII. U.S. banking: the mirrors crack Appendix: the 'LaRouche-Riemann method'-by Lyndon H. LaRouche, Jr. 100 pp. Order from: Order your copy today EIR News Service P.O. Box 17390, Price: $250 Washington, D.C. 20041-0390 Yearly subscription: $1,000 Founder and Contributing Editor: Lyndon H. LaRouche, Jr. Editor-in-chief: Criton Zoakos Editor: Nora Hamerman Managing Editors: Vin Berg and Susan Welsh From the Editor Contributing Editors: Uwe Parpart-Henke, Nancy Spannaus, Webster Tarpley, Christopher White, Warren Hamerman, William Wertz, Gerald Rose, Mel Klenetsky, Antony Papert, Allen Salisbury Science and Technology: Carol White Special Services: Richard Freeman Advertising Director: Joseph Cohen Circulation Manager: Joseph Jennings INTELLIGENCE DIRECTORS: Africa: Douglas DeGroot, Mary Lalevee O n April 24, as the previous issue of Executive Intelligence Review Agriculture: Marcia Merry went into circulation with its cover story on the "World debt and the Asia: Linda de Hoyos Counterintelligence: Jeffrey Steinberg, social-democracy," by Lyndon H. LaRouche, Jr., EIR's Washing­ Paul Goldstein ton, D.C. main office was seized by federal marshals and padlocked Economics: David Goldman European Economics: William Engdahl, in the latest brazen police-state action attempting to silence publica­ Laurent Murawiec Europe: Vivian Freyre Zoakos tions linked to LaRouche. The Washington Post and AP wire service Ibero-America: Robyn Quijano, Dennis Small went so far as to falsely boast that EIR had ceased publication. Law: Edward Spannaus Medicine: John Grauerholz, M.D. Individuals who cherish civil liberties, including many who disagree Middle East: Thierry Lalevee with this review's ideas, were profoundly shaken by these events. Soviet Union and Eastern Europe: Racht!l Douglas, Konstantin George Contributing Editor Webster Tarpley held a press conference Special Projects: Mark Burdman outside the padlocked office and stated to the press: "Three blocks United States: Kathleen Klenetsky from the White House, the Constitution has been trampled on with INTERNATIONAL BUREAUS: Bangkok: Pakdee and Sophie Tanapura police-state methods in the heart of Washington by the invisible Bogota: Javier Almario government." Bonn: George Gregory, Rainer Apel Chicago: Paul Greenberg Two weeks earlier, at our Washington office, we released the Copenhagen: Poul Rasmussen new 341-page Special Report, "Project Democracy and the secret Houston: Harley Schlanger Lima: Sara Madueiio government behind the Iran-Contra affair," which, thanks to the Los Angeles: Theadore Andromidas generosity of numerous patriots, has now been distributed to 1,000 Mexico City: Josefina Menendez Milan: Marco Fanini congressional offices, investigators, and government officials in the New Delhi: Susan Maitra nation's capital. Paris: Christine Bierre Rio de Janeiro: Silvia Palacios Despite the April 24 action, EIR will continue to publish, and Rome: Leonardo Servadio, Stefania Sacchi print the views of LaRouche on the unfolding economic crisis. In Stockholm: William Jones United Nations: Douglas DeGroot that regard, I direct readers' attention to the three lead stories on Washington, D.C.: Nicholas F. Benton Wiesbaden: Philip Golub, Garan Haglund pages 4, 40, and 60, defining the imminent possibility of a world financial crash, LaRouche's guidelines for a solution, and the scope ElR/Executive Intelligence Review (ISSN 0273-6314) is and nature of the forces deployed against him (see also page 64 for published weekly (50 issues) except for the second week ofJuly and last week of December by New Solidarity the Soviet side of that). International Press Service 1612 K St. N.W., Suite 300, Washington, D.C. 20006 (202) 955-5930 In Science and Technology, we present "Science Policy in the E""","" HetMlqllillWrs: Executive Intelligence Review U.S.A.: There is no freedom without the freedom to search for Nachrichtenagentur GmbH, Postfach 2308, Dotzheimerstrasse 166, 0-6200 Wiesbaden, Federal Republic truth," a writing by Mr. LaRouche which was prompted by the of Germany Tel: (06121) 8840. Executive Directors: Anno HeUenbroich, alarms raised by concerned U.S. scientists at the forefront of their Michael Liebig ,,, D.""",rI" EIR, Rosenvaengets Aile 20, 2100 Copenhagen research fields. Those of you acquainted with the millennia-long OE, Tel. (01) 42-15-00 history of our philosophical tendency, will not have any difficulty ,,, Meril:o: EIR, Francisco Dlas Covarrubias 54 A-3 Colonia San Rafael, Mexico OF. Tel: 705-1295. understanding why the cover picture, a famous rendering of "The J.".. .ub.criptio" .ales: O.T.O. Research Corporation, Takeuchi Bldg., 1-34-12 Takatanobaba, Shinjuku-Ku, Tokyo Death of Socrates," was selected to illustrate the deeper issues in the 160. Tel: (03) 208-7821. present battle. Copyright © 1987 New Solidarity International Press Service. All rights reserved. Reproduction in whole or in part without permission strictly prohibited. Second-class postage paid at Washington D.C., and at an additional mailing offices. 3 months-S12S, 6 months-S225 , I year-$396, Single issue-$ \0 Academic library rate: $245 per year Postmaster: Send ail address changes to EIR, P.O. Box 17390, Washington, D.C. 20041-0390. (202) 955-5930 TIillContents Departments Economics OperationJuarez 10 Andean Report 4 Will there be a world 18 Currency reform and Ulloa scandal spreads. financial crash by May IS? replacing the IMF The behavior of the two Bakers at A comparison to two options for 11 Report from Rio the White House has convinced the implementation of "Operation Itamaraty's anti-Funaro intrigues. much of the world that such a Juarez," one with, and one catastrophe is now virtually without, U.S. cooperation. 13 Report from Bonn unavoidable. Concluding EIR's serialization of the Spanish-language Ibero­ The rise of corporatism. 6 Which people does social American Integration: 100 Million democrat Schmidt propose New Jobs by the Year 20001 55 Report from Paris to kill? Defense officials reject Soviet The leading light of German social ploy. democracy goes bananas over the "very high birth rate" among the Feature 57 From New Delhi black, brown, and yellow skinned A healthy initiative. people of the world. 24 World debt and the world social-democracy 72 Editorial 7 Malthusians use TV to The second and final part of An open letter to the President. brainwash Lyndon H. LaRouche, Jr.'s look at the the role of the Socialist 8 Currency Rates International inside the government of the United States, and in the AIDSAlert 9 Mancera bankrupts internal affairs of Central and South America, as a major Mexican economy contributing cause for the 14 New herpes virus found in accelerating collapse of the Africa 12 Hanover Fair reflects international financial system. world depression 16 Incidence of TB increasing among blacks 14 Medicine New herpes virus found in Africa. 58 AIDS threat comes to Asia 15 Agriculture 70 PANIC group files for USDA offers farmers . material's return "sympathy. " 71 AIDS: They're all 16 Business Briefs sounding like LaRouche Volume 14 Number 18, May I, 1987 Science & Technology International National 40 LaRouche views 60 Police state methods used capitalism's future after on LaRouche associates­ the 1987 crash again Although few leading bankers The U.S. Constitution is a have any liking for him meaningless piece of stained personally, growing numbers of parchment, if the Justice them concede that his analysis is Department gets away with forcing essentially correct. three publishing companies into bankruptcy, after its sixth police­ 43 Homintern placed under state raid since last October The death of Socrates, one of the most dramatic against companies and political moments in the history of our civilization, when a spotlight in Britain great thinker was judicially murdered solely
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