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Executive Intelligence Review, Volume 29, Number 26, July 5, 2002

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Executive Intelligence Review, Volume 29, Number 26, July 5, 2002 EIR Founder and Contributing Editor: Lyndon H. LaRouche, Jr. Editorial Board: Lyndon H. LaRouche, Jr., Muriel Mirak-Weissbach, Antony Papert, Gerald From the Associate Editor Rose, Dennis Small, Edward Spannaus, Nancy Spannaus, Jeffrey Steinberg, William Wertz Editor: Paul Gallagher Associate Editors: Ronald Kokinda, Susan Welsh he very best thing that could happen in the current strategic situa- Managing Editor: John Sigerson T Science Editor: Marjorie Mazel Hecht tion, is that the financial collapse should worsen to the point that it Special Projects: Mark Burdman shatters people’s delusions. Book Editor: Katherine Notley Photo Editor: Stuart Lewis That’s a hard idea to accept, but it is the only thing that will allow Circulation Manager: Stanley Ezrol Lyndon LaRouche’s campaign for a New Bretton Woods system— INTELLIGENCE DIRECTORS: as he uniquely defines it—to succeed. Without that, there is no way Counterintelligence: Jeffrey Steinberg, Michele Steinberg to prevent a descent into a Dark Age. Economics: Marcia Merry Baker, Exactly one year ago, EIR published a report on LaRouche’s trip Lothar Komp History: Anton Chaitkin to Moscow, where he addressed hearings of the State Duma. In a Ibero-America: Dennis Small Moscow webcast press conference, he explained: “Now, contrary to Law: Edward Spannaus Russia and Eastern Europe: some people, a monetary crisis is not the worst thing that could hap- Rachel Douglas pen for the world—it could be the best. It’s like going to a doctor to United States: Debra Freeman, Suzanne Rose have a cancer removed: It could be the best thing that can happen to INTERNATIONAL BUREAUS: Bogota´: Javier Almario you. The reason the system is collapsing, is that it should never have Berlin: Rainer Apel existed. Decisions made in 1971 to change the international monetary Buenos Aires: Gerardo Tera´n Caracas: David Ramonet system, followed by decisions made in 1979-1991, have created the Copenhagen: Poul Rasmussen present mess.” Houston: Harley Schlanger Lima: Sara Maduen˜o Too many people who heard or read LaRouche’s words chose to Melbourne: Robert Barwick stick with their delusions. A year later, the “mess” is much, much Mexico City: Marivilia Carrasco, Rube´n Cota Meza worse. Milan: Leonardo Servadio Now, we feature a report on LaRouche’s visit to Brazil, where New Delhi: Ramtanu Maitra Paris: Christine Bierre he received a warm welcome from a people who have shed their Rio de Janeiro: Silvia Palacios delusions, and are earnestly seeking solutions. Our continuing cover- Stockholm: Michael Ericson United Nations, N.Y.C.: Leni Rubinstein age of this historic trip includes the ceremony at which he was Washington, D.C.: William Jones awarded honorary citizenship in the city of Sa˜o Paulo. Wiesbaden: Go¨ran Haglund Elsewhere in this issue, the grim picture of how messy the mess EIR (ISSN 0273-6314) is published weekly (50 issues) has become, is conveyed in our coverage of the U.S. debt explosion except for the second week of July and the last week of December, by EIR News Service Inc., 317 Pennsylvania (in Economics), the Ibero-American blowout (Feature), and the col- Ave., S.E., 3rd Floor, Washington, DC 20003. (202) 396-0398. For subscriptions: (703) 777-9451, or toll- lapse of the U.S. telecom sector and the almighty dollar (National). free, 888-EIR-3258. World Wide Web site: http://www.larouchepub.com Each of these situations is being met by denial by those who are e-mail: [email protected] supposedly in charge of solving them. European Headquarters: Executive Intelligence Review Nachrichtenagentur GmbH, Postfach 2308, The result is the accelerating drive toward war, as we document D-65013 Wiesbaden, Bahnstrasse 9-A, D-65205, Wiesbaden, Federal Republic of Germany in International, with reports on the insane Israeli government’s bran- Tel: 49-611-73650. Homepage: http://www.eirna.com E-mail: [email protected] Executive Directors: Anno dishing of nuclear-tipped ICBMs; President Bush’s “green light” for Hellenbroich, Michael Liebig In Denmark: EIR, Post Box 2613, 2100 Copenhagen ØE, an Israeli assassination of Arafat; and the drive to expel Palestinians Tel. 35-43 60 40 into Jordan. In Mexico: EIR, Serapio Rendo´n No. 70 Int. 28, Col. San Rafael, Del. Cuauhte´moc. Me´xico, DF 06470. Tels: 55-66- Note: Following our usual schedule, EIR will not be produced 0963, 55-46-2597, 55-46-0931, 55-46-0933 y 55-46-2400. Japan subscription sales: O.T.O. Research Corporation, next week. Issue number 27 will be dated July 19. Takeuchi Bldg., 1-34-12 Takatanobaba, Shinjuku-Ku, Tokyo 160. Tel: (03) 3208-7821. Copyright 2002 EIR News Service. All rights reserved. Reproduction in whole or in part without permission strictly prohibited. Periodicals postage paid at Washington D.C., and at an additional mailing offices. Domestic subscriptions: 3 months—$125, 6 months—$225, 1 year—$396, Single issue—$10 Postmaster: Send all address changes to EIR, P.O. Box 17390, Washington, D.C. 20041-0390. EIRContents Economics 8 Food Shortfalls Leave 800 Million Hungry Cover The industrial nations in effect This Week boycotted the World Food Summit of the UN Food and Agricultural Organization in Rome, American forests guaranteeding that nothing effective and the American would come out of it, to deal with a economic house are crisis of stupendous proportions. both burning. 9 Demise of Maastricht Is on the Horizon 4 Rollover of U.S. Debt Will Yield Weimar 11 Repatriation of Russian Hyperinflation Capital: Investment, or America’s annual combined debt service has grown to a More Looting? whopping 72% of the nation’s already-inflated Gross Domestic Product. And you wonder why each week 12 False Axioms Blow Out brings a new wave of bankrupties of major U.S. California’s Budget corporations? Don’t blame the accountants: This has been the result of the systematic take-down of the U.S. 17 Indonesia Searches for a economy since August 1971. Mission 60 U.S. Economic House Burning, All But 19 Lessons of the Lautenbach Plan: A Reconstruction LaRouche Deny it Program for Germany in a The speed of the dollar’s collapse is only somewhat Time of Global Systemic slower than the collapse of the Brazilian real and the Crisis Mexican peso. And yet some fools in the Democratic By Helga Zepp-LaRouche, Party are advising against even mentioning the economy Chancellor candidate of the Civil as an election issue! Rights Movement Solidarity party (Bu¨So) in Germany. Documentation: Dr. Wilhelm Lautenbach’s plan for saving the economy. 24 Business Briefs Photo and graphics credits: Page 20, EIRNS/Maria Schmitz. Page 27, Page 45, EIRNS/Carlos Pe´rez Galindo. Pages 31-39, EIRNS/Steven Meyer. Page 45, White House Photo/Paul Correction: In our last issue, Morse. Page 47, Bundesbildstelle. Page 49, Palestinian Argentina’s Maj. Adria´n Romero Authority website. Page 56, EIRNS/Stuart Lewis. Page 61, Mundani was misidentified as a White House Photo. Page 63, Department of Health and Human colonel. And he spent eight, not Services. Page 65, EIRNS/Bonnie James. four years, in prison. www.larouchepub.com Volume 29, Number 26, July 5, 2002 Feature International National 26 Ibero-American Blowout Is 44 Bush’s Folly May Launch 62 DOJ’s Arguments Ring Systemic, Not ‘Contagion’ Sharon’s New Middle East Constitutional Alarms Just as LaRouche forecast during War Can the U.S. government suddenly his recent visit to Sa˜o Paulo,Calling for the overthrow of declare that a U.S. citizen has no Brazil’s economy has begun to Palestinian Authority President rights under the Constitution? implode as quickly as its southernYasser Arafat, President George Tearing a page from the courts of neighbor Argentina began to do aBush’s June 24 Middle East Policy Nazi Germany, that’s precisely year ago. The Internationalspeech has set the stage for a war what the Justice Department is Monetary fund blames thethat could include the deployment arguing before the U.S. Fourth Argentine “contagion,” but the onlyof nuclear weapons. Circuit Court. real contagion is the IMF itself, and its lunatic policies. 46 Denuclearize Mideast To 64 Ashcroft Eroding U.S. Stop War Threat: Constitutional Rights 29 LaRouche on ‘O’Neill’s LaRouche Testimony to the House Judiciary Hooverville Trolley’ Committee by EIR. 48 Nabil Shaath: Does Stopping Vaccines For 65 Warner Again Says, Revise Children Help Israeli ‘Posse Comitatus’ Security? From a June 21 address by the 66 Supreme Court Reverses Palestinian Authority Minister of Itself on the Death Penalty Planning and International Cooperation. 67 Violent Video Games Rated ‘for Everyone’ 50 Bush’s Perpetual War Doctrine Scares Even the 69 The Wertham Campaign Reaganites Against Violent Comics 30 LaRouche’s Crisis 52 French Elections: Chirac’s 70 Congressional Closeup Leadership Backed: Landslide, or Premature Honored by World’s Burial? Book Reviews Third-Largest City 55 French Book Slanders 53 Gore Vidal Attacks 31 Sa˜o Paulo City Council LaRouche and Cheminade LaRouche Over Sept. 11 Discussions on Cooperation Perpetual War for Perpetual Peace: for Economic Recovery 56 Remembering Carlos Cota How We Got To Be So Hated, by Presentations by Dr. Havanir Meza: A Touch of the Gore Vidal. Oliveira Nimtz, Helga Zepp- Sublime LaRouche, Dr. Ene´as Carneiro, and By Lyndon H. LaRouche, Jr. Lyndon H. LaRouche, Jr. Departments 58 International Intelligence 39 Helga Zepp-LaRouche: 72 Editorial Stop the ‘New Violence,’ The End of an Era. Create a New Renaissance Address to the Sa˜o Paulo State Appellate Criminal Court. EIREconomics Rollover of U.S. Debt Will Yield Weimar Hyperinflation by Richard Freeman and John Hoefle The spiralling growth in U.S. debt, and thus the requirement posal to put the world financial system through bankruptcy to service or roll over the debt, is creating the conditions, in reorganization—in order to write off tens of trillions of dollars the United States and globally, for the eruption of a hyperin- of this debt and other obligations—and replace the bankrupt flation of the type that ravaged Weimar Germany from March system with a growth-vectored New Bretton Woods mone- through November 1923.
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