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Third edition of the $16 plus $4.50 shipping and handling. Order today!. explosive best seller Make check or money order payable to: DOPE, INC. Ben Franklin Booksellers 107 South King Street, Leesburg, Virginia 22075 PH: (800) 453-4108 FAX: (703) 777-8287 updated and expanded Visa and MasterCard accepted. Virginia residents please add 4.5%. sales tax. Founder and Contributing Editor: Lyndon H. LaRouche, Jr. Editorial Board: Melvin Klenetsky, Antony Papert, Gerald Rose, Dennis Small, Edward From the Associate Editor Spannaus, Nancy Spannaus, Jeffrey Steinberg, Webster Tarpley, Carol White, Christopher White Senior Editor: Nora Hamerman Some among our readers may think that Lyndon LaRouche's blis­ Susan Welsh Associate Editor: tering attack on "classroom mathematics," the subject of our cover Managing Editors: John Sigerson, Ronald Kokinda Feature, is over their heads."After all," some might say, "I don't Science and Technology: Carol White know a thing about mathematics, I am totally ignorant; so whatever Special Projects: Mark Burdman Book Editor: Katherine Notley he is saying about bad mathematicians certainly does not apply to Advertising Director: Marsha Freeman me." Oh, really? Then why do you support the British doctrine of Circulation Manager: Stanley Ezrol free trade? Why did so many of your countrymen elect a Congress INTELLIGENCE DIRECTORS: Agriculture: Marcia Merry that thinks we can solve the nation's economic problems by cutting Asia and Africa: Linda de Hoyos the federal budget? Counterintelligence: Jeffrey Steinberg, Paul Goldstein The idiocy that passes for economic policy these days derives Economics: Christopher White from the British school of Isaac Newton and Adam Smith, and you European Economics: William Engdahl Ibero-America: Robyn Quijano, Dennis Small need to know about it, and change it-and have fun doing so. As Edward Spannaus Law: LaRouche writes, "The facts we are about to reference will probably Russia and Eastern Europe: Rachel Douglas, Konstantin George appeal only to either those who simply enjoy having fun, or who United States: Kathleen Klenetsky prefer not to have the world plunged into [a] New Dark Age.. .." INTERNATIONAL BUREAUS: See the International and National sections for important cover­ Bangkok: Pakdee Tanapura, Sophie Tanapura Bogota: Jose Restrepo age on the war in Bosnia, including LaRouche's comments about Bonn: George Gregory, Rainer Apel Buenos Aires: Gerardo Teran what the United States must do. As we go to press, there is an Copenhagen: Poul Rasmussen encouraging development: the agreement between French President Houston: Harley Schlanger Lima: Sara Madueiio Chirac and President Clinton on a policy of "massive and dispropor­ Mexico City: Hugo L6pez Ochoa tionate" air strikes against the Bosnian Serb aggressors. Milan: Leonardo Servadio New Delhi: Susan Maitra Unfortunately, as we warned in last week's issue, it looks as Paris: Christine Bierre though the hearings in the U. S. House of Representatives on the Rio de Janeiro: Silvia Palacios Stockholm: Michael Ericson Waco massacre are turning into a coverup of the real culprits, the Washington, D.C.: William Jones "permanent bureaucracy" in the Justice Department. See Jeffrey Wiesbaden: G6ran Haglund Steinberg's report in National.

EIR (ISSN 0273·6314) is published weekly (50 issues) In a new flank against that "permanent bureaucracy" and its except for the second week of July, and the last week of December by EIR News SerVice Inc.. 317 Pennsylvania accomplices outside the government,Michael Billington, the associ­ Ave .. S.E., 2nd Floor, Washington, DC 20003. (202) 544-7010. For subscriptions: (703) 777-9451. ate of Lyndon LaRouche who is incarcerated as a political prisoner European Headquarters: Executive Intelligence Review in Virginia with a 77-year sentence, has filed a habeas corpus suit in Nachrichtenagentur GmbH, Postfach 2308, 0-65013 Wiesbaden, Otto von Guericke Ring 3, 0·65205 federal court (see p. 66). This is no legal mumbo-jumbo, but a Wiesbaden, Federal Republic of Germany Tel: (6122) 9160. Executive Directors: Anno Hellenbroich, chilling indictment of the travesty of justice by "Get LaRouche" task Michael Liebig In Denmark: EIR, Post Box 2613, 2100 Copenhagen 0E, force. Tel. 35·43 60 40 In Mexico: EIR, Francisco Dfaz Covarrubias 54 A·3 Colonia San Rafael, Mexico OF. Tel: 705·1295. Japan SUbscription sales: O.T.O. Research Corporation, Takeuchi Bldg., 1·34·12 Takatanobaba, Shinjuku·Ku, Tokyo 160. Tel: (03) 3208·7821. Copyright © 1995 EIR News 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. Domestic subscriptions: 3 months-$125, 6 months-$225, I year-$396, Single issue--$l0 Postmaster: Send alladdress changes to EIR, P.O. Box 17390, Washington, D.C. 20041-0390. ITrnContents

Departments Science & Technology Economics

9 Report from Rio 12 Green Scissors eco-fascist 4 Heat wave in North Farmers march on Brasilia. alliance out to destroy U.S. America shows The conservative National infrastructure deficit 55 Report from Bonn Taxpayers Union is in cahoots with The lack of power generating Trapped by British geopolitics. radical ecologist Friends of the capacity to keep up with demand Earth? Yes, and the speciesthey 're has been masked, until now, by the protecting are oligarchical and 72 Editorial worsening depression. Now is the time for action. British. Rogelio A. Maduro reports. 6 Currency Rates

Photo and graphic credits: Page 19 Infrastructure hit by 7 Argentina: Usury won't 5, EIRNS . Pages 13, 32 (Gingrich), greens in Russia solve the debt problem 43, 52, 62, 67, EIRNS/Stuart Lewis. Pages 23, 24, 29, EIRNS/ 8 Privatized pension system: John Sigerson. Page 27, the apple of London's eye Bundesbildstelle Bonn. Page 32 A fOllowup to the expose of the (Newton), Library of Congress "Chile economic model" which Prints and Photographs Division. appeared in the last issue of EIR . Page 59, ©1993 Otto Caldwell, Jr.

10 Business Briefs Volume 22, Number 30, July28, 1995

Feature International National

40 U.S. credibility at stake in 58 Stench of coverup fills Bosnia, says LaRouche Congress on Waco probe If the United States acts "with The hearings are turning into a pungency and force and expedition" partisan dog-and-pony show, as the against Serb targets, primarily with "permanent bureaucracy" in the air-strike methods, the whole crisis Department of Justice remains out could be brought under control of public scrutiny. within a matter of days. 61 Bosnia delegation seeks end "Of what ill will he die?" was the caption the Spanish 42 Bosnia's Sacirbey: U.N. to arms embargo, artist Francisco de Goya put on this etching from his "Caprichos" cycle of c. 1800. Goya continued: "The role is finished withdrawal of U.N. forces doctor is excellent, pensive, considerate, calm, seri­ Two Bosnian parliamentarians are ous. What more can one ask for?" (Except for a Nobel 45 Rabbis call for Israeli hosted by the Schiller Institute in Prize, perhaps?) mutiny Washington.

20 Why most Nobel Prize 46 The British are 63 Wage stagnation, economic economists are quacks insecurity sources of voter Lyndon H, LaRouche, Jr., in an orchestrating the anger, says Clinton Economic Advisory released on destabilization of Jordan The President has finally shifted July 14, writes: "Today, every A descent into violence even like from stressing the (nonexistent) nation on this planet is under the that of the 1970 Black September, economic "recovery," and says the domination of a single, worldwide cannot be ruled out. 1994 elections were a turning point monetary and financial system: the in his thinking, so-called International Monetary 48 Amnesty Int'l, still trying Fund (IMF) system, That system is to save Peru's Shining Path about to go out of existence ....It The utter absurdity of Amnesty 65 N.J. law pulls 10,000 could be gobbled up in an orderly International's listing Peru, today, babies offsafety net bankruptcy reorganization as a human rights crisis, reveals the conducted by governments, or, if depth of hysteria which reigns in 66 Billington federal habeas governments are, as Hamlet said, the British Foreign Office over the filing exposes government too 'pigeon-livered' to do this, it collapse of the project to rip Peru violations will reach the point that the system into pieces. The Commonwealth of Virginia, in simply disintegrates within as short concert with corrupt federal law a span as 24 to 72 hours." 51 Chirac restarts nuclear enforcement officials, knowingly tests to protect the 'higher violated the U.S. Constitution when interests' of France it prosecuted Michael Billington, a political associate and co-defendant of Lyndon H. LaRouche, Jr., 53 Bankers threaten Haiti, according to papers filedin federal Dominican Rep. court in Richmond on July 17.

54 'Genius of women' must be 70 National News issue in Beijing A letter from Pope John Paul II rejects the irrationalistnotion of woman.

56 International Intelligence .. �TIrnEconomics

Heat wave in NorthAmerica shows infrastructur¢deficit by Marcia Merry Baker

Don't blame it on the heat. The mounting death toll and prop­ integration of production of pOUltry and hogs, mass kill-offs erty damage resulting from the mid-July heat wave across occur in the "factory farms" when there are infrastructure North Americashow the gaping shortfall of infrastructure, in problems in cooling or heating. particularfor power use ratios in the residential, agricultural, Many cities are reporting their worst death tolls ever from and transport sectors . In addition, livestock and other farm the heat, with Chicago in the1lead, and dozens dead in New losses reflectthe marginalization of agriculture as a direct re­ York, Philadelphia, and Washington, D.C. The number of sult of years of domination by the food cartel companies. dead in Chicago alone totalleq 376 as of July 18. The ultimate Duringthe second week of July, large parts of the United count is expected to exceed 500. Most are elderly, young, States posted temperatures over lOO°F, and many locations and poor who expired in their homes from the heat. Emergen­ went over 105°. The duration of the worst period was mostly cy morgue arrangements had to be made. Refrigerated trucks July 13-17. For some locations, unprecedented temperatures and funeral homes are holding the bodies, and mortuary stu­ were recorded; and for most places, this has been the hottest dents are assisting the county!medical examiner. period since the 1980 heat wave. Loss of life and economic damage are inevitable in such adverse weather, but the scale How could this happen? of the losses now posted in the United States stems strictly The response of some Chicago city and Illinois state offi­ from the lack of adequate infrastructure . cials is typical of how elected politicians responded in many Relief agencies usually declare an emergency when tem­ locations. They asked, "HoW'could this happen?" and called peratures stay at lOO- 105°F for two consecutive days. These for an investigation. But the lack of in-depth infrastructureof conditions covered areas where close to half the U. S. popula­ all kinds (hospital beds, morgues, pathology labs, electricity tion lives, and also the states where cattle, hogs, and poultry supplies) is typical of the situation all across the country. are produced. Thousands of cattle died in the heat in the midwestern The death toll is still being tallied from the heat wave, with farm counties. Accurate estimates are available only on a the lack of adequate housing, air conditioning, electricity, and county and state level. However, the rendering companies in water supplies, and the lack of safe mass transport contribut­ the Midwest reported calls to pick up thousands of dead ing directly and indirectly to the toll. Several children and pets animals, but there were too many for the companies to han­ died in locked cars . As of July 20, several days after the heat dle , and so farmers resorted to burying carcasses. One Ne­ spell had broken, news accounts reported more than 700 braska rendering company alone picked up between 1,000 deaths nationally due to the heat wave. This number is higher and 1,500 dead farm animals the week of the heat wave in than the U. S. annual death toll from heat for an average year, Nebraska, Iowa, Kansas, and Missouri; it turnedaway doz­ which, in recent years, has ranged from 148 to 1,700. ens of farmers' calls. Likewise, many mass deaths of livestock have occurred Also, there were thousands of chickens lost, with the mostly because of lack of shelter, power, water, and other largest kill-offs reported on the Delmarva Peninsula (Dela­ means at hand to protect them. And because of the vertical ware , Maryland, Virginia).

4 Economics EIR July 28, 1995 Chicago's infrastructure problems did not begin with the heat wave of 1995. Shown here is a scene from the flood of April 1992, when the fa ilure to maintain and modernize the city's infrastructure took a deadly toll.

Accounts from Chicago and from some of the emergency counties during July 10-15 . The farmers with water tankers farm state locations illustrate how the question of infrastruc­ and sprayers , joined by rural volunteer firecompani es' trucks ture is crucial . and hoses, saved all they could. The numbers of animals saved correlates directly with which farm operations had Chicago and the farm states access to people, equipment, water, and electricityto protect In Chicago, the human resources division had only eight the creatures. vehicles and 60 staff with which to respond to calls for assis­ For example, Rod Bentley, a farmer in Macedonia, Iowa, tance, because of budget cuts. But even more important than lost dozens of cattle, but he would have lost more without his the limited response capability, is the systematic vulnerabili­ own sprayer tank truck, and the response of the local fire ty of the population to harm because of substandard housing company that answered his call and hosed down the cattle. and low electricity supplies per household. Chicago has more Other farmers had no such means. According to the July 15 than 443 ,000 residents age 60 or over, and thousands live in Hastings Tribune, Bentley reported that "in this neighbor­ poor conditions. hood, hundreds have been lost." He said of his situation, In northwest Chicago, power outages hit 41 ,800 custom­ "When something like this happens, you find out what small­ ers of the utility supplier Commonwealth Edison Co. The town service is like when you need it. You have overwhelm­ Illinois Commerce Commission held a hearing on July 18, ing response in the country." and an investigation is under way of both this outage episode, and whether the company is in general properly maintaining The lack of basic infrastructure kills its power grid. Some people were without electricity for 12 . Both the urban and rural examples show the role of basic hours; some were lacking it for three days. infrastructure during times of peak need. Look at electricity: Another dramatic example of the lack of power is the All the arguments used to justify scaling down electric gener­ case of the crisis at Chicago's Cook County Hospital, where ating capacity and supplies per household and per square indoor temperatures reached into the 90s. To cut costs, the kilometer to the level of "average" electric loads, are refuted hospital had contracted with Commonwealth Edison to go by the loss of life for want of adequate electricity when and onto a "conservation" program-and use less than a certain where needed. amount of power in order to get a cheaper rate. During the Overall, as of 1995 , the United States has entered a period heat wave, the operating rooms became ovens. Patients had where the potential peak demand for electricity exceeds the to be spritzed with water, and fanned in order to be kept cool . available resources. This is the result of the cumulative effect Typical of the situation in the cattle states was the plight of the declining installation of capacity (turbine generators, of counties in southwestern Iowa. About 1,200 cattle died power transformers), and, in particular, the cancellation of from the heat in Montgomery, Pottawattamie, and Shelby nuclear plants that were on the drawing boards 20 years ago.

EIR July 28, 1995 Economics 5t- On July 15, Con Edison reported a record demand for electricity in New York City, despite the fact this was a Saturday, when demand is routinely lower than on weekdays. Currency Ratesi High demand and outages were the prevailing pattern i throughout the heat wave. The dollar in deutscifmarks The lack of power-generating capacity to keep up with New York late afternoon&xing i demand has been masked until now by the worsening depres­ sion. Up until the 1960s, the manufacturing sector used to 1.50 i account for half of the consumption of electricity in the Unit­ ed States. As the "bubble" economy of financial speculation 1.40 started to displace manufacturing output, manufacturing's 1.30 i share of electricity consumption has fallen to 30%. Increas­ ing percentages of electricity have been consumed by the 1.10 commercial and domestic sectors. But the decline of capacity i , has been so great, that any peak demand-heat waves, cold 1.10 : snaps, which are to be expected in U.S. latitudes-now re­ 5131 6114 �1 6IZ8 7/5 7111 7119 sults in power outages. The dollar in yen On a per capita basis, U.S. electric generating capacity New Yorklate afternoon&xing ceased rising per capita as of 1985, and during fiveof the six I years from 1987 to 1992, it declined. Electricitygenerating 100 I capacity has dropped from about 2.8 kilowatts per capita down to 2.6 in only four years . 90

Food production vulnerable 10 n The role and condition of agricultural infrastructure, which includes power and electricity, may not be so apparent 70 to the average person. But the lack of basic infrastructure 110 : makesfarm operations and the food supply system needlessly 5131 6fT 6114 6ql 6IZ8 7/5 7/lZ 7119 vulnerable to bouts of severe weather or other strain. Worse, the shift of U.S. agriculture to crop monoculture The British pound in dollars (cultivation of one crop, instead of a number of crops) and New York late aftemoon &xing ; concentration of livestock-mega- "factory farms" of poultry or hogs-add to the vulnerability. These shifts are the direct 1.80. result of recent decades of self-serving actions by the interna­ 1.70 tional cartel of food-processing and commodities compa­ nies-Cargill Inc., Archer Daniels Midland (ADM), Pills­ UO bury (Grand Metropolitan), Louis Dreyfus, Continental, - Bunge, ConAgra, IBP, and a few others. Against all anti­ 1.50 trust statutes, these companies have dictated the characteris­ tics of livestock for slaughter, crops, etc., the volume they 1.40 will buy, and the price they will pay for farm commodities, 5131 7/5 7111 7119 and also the conditions of farm production. The dollar in Swiss francs The result, for example, is that 99% of all chicken con­ New York late aftemoon &xing sumed in the United States is processed by the cartel compa­ nies. The independent poultry farmers who produce the poul­ 1.30 try bear the burden of debts to cover the difference between : their farm costs of production (for buildings, electricity use, UO feed, and so forth), and the low prices they receive from the cartel. To try to survive, the farmers have flocks in the 1.10 thousands. To cut costs, some farmers only use fans to try to provide temperature control, not air-conditioning. Or, they 1.00 are limited in their electrical supplies. On the Delmarva Pen­ 0.90 insula, over 1 million chickens died in the heat because of 5131 6114 6IZ8 7112 7119 such conditions. 6IZ1 715

6 Economics EIR July 28, 1995 opportune moment for Menem and Cavallo, who have a lot Argentina riding on their ability to maintain the creditors' policy of usury and speculation. Just how raw a nerve the worker-priest struck with his proposal was revealed by Horacio Liendo, the government's former debt negotiator and now an official in Cavallo's Fi­ nance Ministry , in the July 10 La Naci6n. Under the headline "An Ethical Consideration of the Public Debt," Liendo was careful not to openly attack Father Musto, but suggested Usmy won't solve condescendingly that perhaps the priest is unaware of the fact that what he is proposing "has already been done in the debt problem Argentina," through such programs as the Brady debt-reduc­ tion plan and renegotiation of the foreign debt. h h by Cynt ia R. Rus If Argentina were to follow "the easy path of blaming others for our problems," Liendo wrote, it would lose "inves­ Since mid-June, Argentine President Carlos Menem and Fi­ tor confidence" and cause greater suffering and misery nance Minister Domingo Cavallo have been frantically trying among the poor. "Familiar with Father Musto's background, to quash the debate over the country's economic crisis trig­ I know that this is very far from what he intended," he con­ gered by Father Osvaldo Musto's call for a one- to two­ cluded. year moratorium on payment of the country's foreign debt. Menem's public response to the church's intervention in Musto, a member of the Labor Commission of the Argentine this economic debate was more crude. Speaking to an audi­ national bishops council, told a radio interviewer on June 19 ence in Buenos Aires on July 12, he spouted that "Christ. that if his proposal were implemented , the funds normally made the dumb speak, the blind see, and the crippled walk. allocated to interest payments could be invested instead in But he didn't try to fixthe economy." He apparently forgot job creation and production to alleviate some of the misery that Jesus did throw the moneychangers out of the temple. and unemployment caused by the government's draconian The government has gone to great lengths to convince free-market austerity program. Argentines that the country is recovering from the crisis that The President and his finance minister have reason to be shook it after the Mexican peso devaluation last December, frantic. Argentina's economic stability is precarious, and the and that it has again earned the trust of foreign investors. International Monetary Fund (IMF) is demanding intensified "We've got money pouring out of our ears," a euphoric Ca­ looting of the country's human and natural resources to en­ vallo said fo llowing a late-June meeting with creditors in sure foreign debt payment. Menem's own labor minister, New York. He bragged that creditor banks had guaran� Armando Caro Figueroa, said on Radio Mitre on July 11 that financingfor the country up through July 1996. The July 10 part of Argentina's high unemployment-now at 14% and Wall Street Journal said the return of $3 billion of the $8 expected to reach 18% in the next few months-has been billion which fled the banking system this year, was an opti­ caused by Cavallo's convertibility program set up in 1991. mistic sign. (This pegs the peso to the dollar in a one-to-one relationship.) Nicholas Brady, treasury secretary in the Bush adminis­ "The most serious development of the past year," he said, "is tration, arrived in Argentina on June 26, and announced that that there are many workers who had jobs and lost them; that "internationally, everyone thinks that Domingo Cavallo has means that in the last two semesters, the Argentine economy done an extraordinary job ....The minister is very impor­ began to destroy employment." tant in order for Argentina to be successful in the international As a result, social protest is on the rise, especially in the markets: He generates confidence abroad." Central Bank poorer provinces. The CGT labor federation is demanding President Roque Fernandez announced on July 17 that "we that the government form a national labor council, and pass have overcome the financialcris is." a law to prevent further layoffsfor one year. The unemploy­ But in an interview in the July 17 London Financial ment crisis is such that Msgr. Rafael Rey, president of the Times, Cavallo admitted that the government had failed to Catholic Church's Caritas relief agency, reported that many meet IMF-dictated financial targets for the firsthalf of 1995. unemployed have told him that "they have rio desire to go on He added, "But we are confident of meeting our targets for living due to the situation in which they findthemselv es." the second half." The only way that the minister met the second quarter's target was by delaying wages to 300,000 Morality and economics public sector workers . He told the Times that despite all the Thus, Father Musto's raising the issue of the necessary demands from unions as well as the Catholic Church for relief relationship between moralityand economics, as also repeat­ from unemployment, he has no intention of changing policy. edly addressed by Pope John Paul II, did not come at an In fact, he said, "the way ahead is rather to deepen reform."

ElK July 28, 1995 Economics Z Where does the money get invested? Until now, a Risk 'Chile Model' Revisited Classification Commission has regulated the type of invest­ ment the AFPs could make, limiting investment abroad to 4% of a fund's holdings; however, a decree to be issued shortly will ease these restrictions, allowing the funds to "diversify" and invest 6% of their holdings abroad. Ac­ Privatizedpension cording to the Superintendencia de Administradoras de Fondos de Pensiones in Santiago, Chile, as of March 31, system: the apple 1995 , a total of $138.5 million, or only 0.63%, were invest­ ed abroad-a figure that will grow once the law changes. of London's eye Another 36.3%, or $8.0 billion, is invested in domestic private corporations, with two companies, Endesa and En­ by Cynthia Rush ersis, receiving the lion's share of this investment. Both companies deal in energy and electricity generation. The remainder of the funds, almost two-thirds of the total, is Whenever Chile's privatized pension system is mentioned, invested in a variety of domestic treasury, central bank, and it sends shivers of delight up the backs of London and other financial instruments. In other words, a total of about Wall Street. bankers. Deemed a success inside Chile, the $15 billion of workers' money has so far been pumped in model has been set up in Peru and Argentina, and is now to directly bolstering the Chilean financial system. being considered for Mexico and other Third World nations. Those who extol the virtues of the Chilean pension sys­ A Mexican delegation recently visited Chile to examine tem fail to mention that poverty rates and unemployment the system more closely. An article in the June 11 Wash­ are increasing in the country, leaving unanswered the ques­ ington Post suggests that the system might even work bet­ tion of how the unemployed and poor are supposed to benefit ter in the United States than the existing social security from this system. Moreover, if the AFPs are now going to system. increase their investments abroad, they are buying into an How does Chile's privatized system work? Today it international financial system in which the use of derivatives consists of about $22 billion, which has been seized directly and other speculative investments have created a bubble from workers' wages to prop up the Chilean monetary which is about to burst. When that goes, so do the pension system. There are 18 private funds known as Adminis­ funds of Chilean workers . trators of Pension Funds (AFP in Spanish), which are man­ aged by both private companies and the ubiquitous "fi­ nancieras." The AFPs compete with each other in the "free market" for the Chileans who are active affiliates today. By Correction: law, workers must pay 13% of their annual salary to a fund, Last week's cov­ although they are "free" to choose the fund of their choice er story (EIR, and they may also pay in more if they wish; 3% of their July 21, 1995) contribution is set aside to cover administrative and other dissecting the costs. failure of the When the new system was created in 1981, it did not "Chile model" eliminate the old social security system at one stroke . Older was missing an workers were given a choice of staying with the old system important ele­ or joining the new one. If they chose to join the new one, ment of the they were eligible to receive Recognition Bonds to compen­ package as origi­ sate them for the benefits they had earned under the old nally designed, system. Young workers just entering the labor force had to an article about join the new system. the pension sys­ In the new system, a worker is allowed to "choose" tem, which ap­ which fund he wants his seized money to be placed in, based pears on this on different rates of return they claim to be making on the page. Also, due to a translation error, several graphics, money. The pension he finally receives depends on the including the graph on the cover, used the terms "Pro­ earnings his contribution makes over time . According to the duction" where the correct term is "Producer Goods," June 11 Washington Post, from 1981 to 1990 the funds and "Consumer" where it should have been "Consum- earned an average 13% per year (adjusted for inflation), er Goods," as indicated in the text. with earnings ranging from 3.6% to 28.5%.

8 Economics EIR July 28, 1995 Reportfrom Rio by Lorenzo Carrasco

Farmers march on Brasilia to try to destroy the opposition to its President Cardoso has attacked near-bankruptfarmers who program, is to encourage the so-called Landless Movement, linked to the want to produce food, as "irresponsible deadbeats. " Theology of Liberation and the radical Workers Party CPT), to intimidate the bankruptfarmers with land invasions. However, such a move bears a grave A march by thousands of Brazilian order of $6 billion, despite the fact risk of exploding beyond anyone's farmers on the capital city of Bra­ that the physical volume produced control. silia-described by one of the 'orga­ was 17% greater. And the government's problems nizers of the "We can't plant" move­ In this context, the protest being are just beginning. First, the farmers ment as "the strongest demonstration carried out in Brasilia must be seen as who have traveled thousands of kilo­ in the history of agriculture"-is chal­ a last resort by farm producers, many meters have no intention of returning lenging the political and economic es­ of whose leaders in the National Con­ home without a solution, and are pre­ tablishment which sustains the current gress have already been corruptedand pared to camp on the doorstep of the regime of President Fernando Hen­ bought off by the government. The presidential palace if necessary. They rique Cardoso. Until now, the govern­ march began in the extreme south of arrive in Brasilia at a time when Con­ ment, ensconced in Brasilia under the the country, in the state of Rio Grande gress is returning from its recess and powerful political protection provided do SuI, which borders on Uruguay and the governmenthopes to accelerate its by the mass media, which silences all Argentina, and has traveled more than constitutional reform plan, as agreed opposition, has succeeded with rela­ 2,500 kilometers to Brasilia. Along to with the international banks. Sec­ tive ease in imposing its corrupt the route, the marchers have held nu­ ond, the fact that the protesters intend scheme of "reforming" the Constitu­ merous demonstrations and staged to donate food to the "Community of tion, the better to dismember the Bra­ important public acts . The Jornal do Solidarity" charity which is run by zilian national state. Commercio of Belo Horizonte, the First Lady Ruth Cardoso, is a "white­ But this steamroller technique of capital of the state of Minas Gerais, glove" slap in the face to government governingis coming rapidly to an end, reports that nearly 40,000 rural pro­ policy. as thousands of farmers, mounted on ducers from 400 cities in 10 states are The march, which entered Brazil tractors and farm vehicles of every de­ taking part in the protest, which was on July 18 to a noisy reception of scription, begin pouring into the capi­ organized outside the framework of fireworks and trumpet-blowing, pro­ tal city from every comer of the coun­ the traditional agricultural associa­ poses first and foremost, in the words try . Their goal is a simple one: to drive tions. of Antonio Eloy Paz, one of its lead­ home to the government the reality of President Cardoso, who first tried ers , to organize all of Brazilian society the agricultural crisis that Cardoso's to ignore the agricultural crisis and around the fight for survival of the ag­ monetary policies, with interest rates then attempted to describe the march ricultural sector. "The presentation of 60% and higher, and with his open­ as an "unnecessary demonstration" documents to the President of the Re­ door approach toward imports driving whose purpose was "incomprehensi­ public is symbolic, because every­ down the already minimal prices on ble," finallydirected a statement to the thing we have had to say he already the country's basic grain crops, lead­ nation. In it, he attacked the leaders of knows." ing Brazilian growers into unavoid­ the march as "irresponsible dead­ Another march leader emotionally able bankruptcy, have caused. beats" who would shatter the nation's declared, after hearing the presiden­ To get some idea of this, Brazil financial system with their proposal tial statement denouncing the grow­ imported 9 million tons of grain at a for general debt moratorium. ers, "We want to know what the Presi­ cost of $2 billion during the 1994-95 At the same time, he demagogi­ dent's position is. If it is to bankrupt harvest period, despite having pro­ cally offered $3.2 billion to finance the growers , then fine. We will go duced the largest grain crop in the next year's harvest, when the amount home and ask all the growers to plant country's history, some 81 million of credit the sector was receiving in perhaps half of what they planted last tons . The farmer organizations esti­ the early 1980s was approximately year. And if there is not enough food, mate , based on last year's harvest, $2 7 billion a year! 'Impeachment for Fernando Henrique that losses to the sector were on the Another trick of the government Cardoso.' "

EIR July 28, 1995 Economics 9 BusinessBriefs

Infrastructure has to be under control in order to avoid the the end ofthe year. "My view is that Telkom previous situation of polarization and confron­ is the cwlective property of SA Incorpo­ Rhine-Rhone Canal tation. I am not supportive . . . of the stand rated. Urltil now it has only served IS% of upgrade moves ahead of some countries in eastern Europe of rapid the popul/ition,and it must become account­ involvement in NATO. It takes a gradual and able to � other 8S%," Jordan said. steady process of development." The �outh African government spends The first section of the modernized Rhine­ Rather, Shmarov said, "at this stage, the six timesi more a year on servicing its debt Rhone Canal has been completed, with the internal political and economic situation is than it doFs on the politically crucial Recon­ construction having taken only fivemonths­ moreof a national security threatthan external struction: and Development Program, of unusual in a Europe that has otherwise seen factors," and the number one threat is the which th� provision of telephones is just one nothing but slow progress on such projects. "power-shortage problem. . .. Anybody small pary. The 20-kilometer strip of waterway between would agree that the power shortage is a far the cities ofMulhouse andNiffer,in the French more serious threat than foreign military in­ region of Alsace close to the Rhine River, is vasion." now navigable for barges of 4,400 tons. Labor! The French government recently reaf­ I firmed its intent to accelerate the construction Recycling steps up work on the other sections to make the entire South Africa canal navigable between Mulhouse and Mar­ in UnJtedStates seille by approximately the year 2010, but the Telecommunications exact timetable and the sources of financing I The pace lof labor recycling is intensifying in are still unclear. will not be opened the Unite4 States, the July 17 issue of Business Week ma�azine reported. Workers are being South Africa has ruled out opening its tele­ fired, an� forced to hunt for new jobs, or else communications market to international rehiredat /heirold job , but in each case at lower Ukraine competition, and it has also been announced pay and tknefit levels. Examples of the trend that Telkom, the state monopoly, will not yet include: I Minister condemns loss be privatized, as had earlier been announced, • Bdggs and Stratton, which is based in the July 10 London Financial Times re­ Milwauk�, Wisconsin and makes small en­ of science capability ported. gines for !Iawn mowers, announced last year Pallo Jordan, the minister of posts, tele­ that it is s�ng 2,000of its S ,SOOjobs to Ken­ Ukrainian Defense Minister Valeri Shmarov communications, and broadcasting, said tucky andiMissouri. The reason,said Business condemned the loss of Ukraine's scientific during the presentation of a discussion docu­ Week, is �at it "can pay half the $21-an-hour capabilities, at a briefingin Washington at the ment on the future of the industry, "If we [its] wor�ers up north get in wages and ben­ American Association for the Advancementof opened up the market now, and allowed in, efits." , Science on July 10. "It is a most stupid thing say, AT&T and British Telecom to compete • In lIte Oakland, California airport, the to miss the advantages that have beenaccumu­ openly, they would wipe us out within a ticket agepts for American Airlines wear a uni­ lated in our scientific efforts," he said. week. I am not going to look at that option; form that lookslike the American Airlines dark Shmarov,after listing the achievements of it is subversive." blueunifdrm, but the workersdo not technical­ Ukrainian science, said, "the condition of sci­ The campaign launched by the Congress Iy work fqr American Airlines. In May, Amer­ ence is far from being satisfactory. Less than of South African Trade Unions to "kill off ican AirliPes terminated its ticket agents, and one-half of 1% of what is needed is beingallo­ any moves toward privatization," played a hired repJacements from Johnson Controls, cated to maintain science." The result,he said, major role in the decision, the paper said. Inc. Amepcan pays its veterans up to $19 per is that "Ukraine is losing its scientific p0- Instead, Jordan announced a "consulta­ hour; the$!: replacement workers make $7 to tential." tive process" by which South Africans are $9 per �ur, with inferior benefits. North Shmarov praised the role of the Soros being given 10 weeks to respond to a ques­ AmericaI} Airlines is allowing outsiders to Foundation in helping Ukraine, and the bilater­ tionnaire on privatization and competition. work at 2� second-tier airports. al cooperationthat Ukraine has in science with Jordan will then take the answers to an "eval­ • Thtoughout industry, many workers many other nations, including the United uation colloquium" in mid-September. An arefired ftom their jobs, which they have held States, France, Germany, and the United as-yet-unnamed group of persons represent­ for 10 to .S years, only to be hired back by a Kingdom. ing the main stakeholders in the industry will "business services agency," which contracts At the briefing, Shmarov cautioned that then sit down with the minister to produce a out to thel business to do the identical job but "the pace of the process of NATO enlargement white paper to be put before the cabinet by at lower .,..,ages. According to the Bureau of

10 Economics EIR July 28, 1995 Bril1ly

• THE DUTCH Parliament in late June approved the "Betuwe" high­ speed rail project, between the port of Rotterdam and the German high­ speed rail grid. Current projections LaborStatistics, between1984 and 1994, em­ carries tuberculosis and diphtheria has also are that it will transport 30 million of ployment in the "business services" sector been detected in the water. People are being the 70-75 million tons of container­ doubled from3 million to 6 million workers. told not to bathe in the river, but are doing so ized freight which is moved annually Meanwhile, major American manufactur­ anyway becauseof theheat. BBC commented from Rotterdam to Germany by no ing industries, which producephysical wealth that funds are lacking, not only for normal later than the year 2015. andpay decentwages, keepdeclining. For ex­ health and prevention measures, but even for ample, since 1987, the highly skilled aero­ educational campaigns to wam the population • SALOMON, Inc. shocked in­ space sector has laid offmore than half a mil­ aboutthe disease threats. BBC's Moscow cor­ vestors on July 11, forecasting a $65 lion workers . respondentalso reportedthat there is an uncon­ million loss for the second quarter, trolled growth of disease-carrying rats in the far worse than expected. The news Russian capital. prompted Standard & Poor's to re­ view $15 million of its debt for a pos­ Health sible downgrade. Salomon lost $400 million in 1994. Ukraine, Russia face Petroleum • GEORGE SOROS will be water, disease crises Iran, Sudan sign deals barred from Slovakia unless he apol­ ogizes for comments at the World Water and disease emergencies in eastern with western companies Economic Forum in Switzerland on Ukraine and Moscow are underscoring the July 1, the ruling Movement for a massive infrastructure collapse in the former Both Iran and Sudan signed oil contracts with Democratic Slovakia said. Soros at­ Soviet Union that has resulted from Interna­ westernfirms during July. An agreement was tacked Prime Minister Vladimir tionalMonetaryFund-mandated "shock thera­ signed between the French firmTotal and the Meciar as a proponentof business in­ py" policies. National Iranian Oil Co. on July 13, which re­ terests and nationalism, which he According toGerman and British radio re­ placed the $1 billion deal that Conoco Inc. was called "a classical recipe of fascism." ports, authorities in the easternUkrainian city forced to cancel with Iran, according to news ofKharkov,Ukraine 's second largest city with wire reports. The week before, Royal Dutch • ISRAELI Foreign Minister Shi­ a popUlation of 1.7 million, have urged the Shell Group said it had renounced the same mon Peres said that economic coop­ entire population to leave the city, because a deal because of President William Clinton's eration is vital for the success of the deadly strainof cholera has beenfound in the ban on oil trade with Iran. Middle East peace effort, in Vienna water supply. The sewage treatmentsystem in Total, which had been in talks with Iran on July 11, the Austrian daily Die Kharkov collapsed in late June duringheavy since 1991, said the contract was to develop Pre sse reported. He pointed to the rains, and was still out of service as of mid­ the Sirri "A" and "E" fields located offshore European Union as a model for eco­ July. Wastewaterfrom households and indus­ from an island in the Persian Gulf close to Du­ nomic cooperationthat could also be try has been pouring into the water system. bai. Total is responsible for securing the fi­ practiced in the Middle East. Freshwaterfor the populationis beingbrought nancing ofall costs incurred(estimated at $600 in fromneighboring towns. The entire water million), and the company will get about one­ • CHINA has double-tracked the supply in the densely populatedareas of east­ third of the crude oil in return for its in­ 1 ,620-km rail line from Lanzhou, ernUkraine and contiguous areas in Russia are vestment. capital of Gansu, to Urumqi, capital now threatened. Meanwhile, Sudan signed an oil deal with of Xinjiang, in order to speed devel­ As of July 14, BBC was reporting that the ArakisEnergy Corp. of Canada, to develop opment of the land-locked region, therewas not yet any' sign of mass exodus from its oil in the Unity and Greater Helig fields,the People's Daily reported on July 2. Kharkov. July II London Financial Times reported. The Development of Xinjiang has been Meanwhile, BBC also reportedthat there $750 million project is to be financed jointly hampered by lack of transport to in­ arecalls to declarea health emergency in Mos­ with ArabGroup International, a Saudi invest­ dustrial areas. cow, becausedysentery, hepatitis, salmonel­ mentgroup. The project entails apipeline from la, and scarletfever are all spreading. Cholera the oil fields to Port Sudan on the Red Sea. • WHEAT PRICES on the Chica­ has been detected in the Moscow River, and A spokesmanfor Arakissaid Sudan would be go Futures Market rose 17% in the is spreading-thefirst time that it has broken producing 100,000barr els per day, twice its second half of June, Agra-Europe re­ out from within Moscow, rather than being domestic needs, thus providing surplusfor ex­ ported the week of July 3. Compared brought intothe city fromformer Sovietrepub­ port. Reportedly, the deal includes a price­ to one year ago, wheat is 42% more lics or fromoutlying regions in Russia. BBC sharing agreement, whereby the Sudanese expensive. said that authorities know that the bacteria that govemment would get half the total revenues.

EIR July 28, 1995 Economics 11 �ITillScience & Technology

Green Scissors eco.fascist alliance out to U.S. desttoyI The conservative National Taxpayers Union is in dahoots with radical ecologistFriends qfthe Earth? Yes , and thf sp ecies they 're protecting are oligarchical and British. Rogelio A. Maduro reports.

I On Jan. 31, the "conservative" National Taxpayers Union and commercial fishermen, came to Washington, D.C. to joined with the "radical" green group Friends of the Earthfor attend the annual "Fly-In fOl! Freedom," and to lobby Con­ a press conference to announce the release of "The Green gress during the following d�s. Scissors Report: Cutting Wasteful and Environmentally Sponsored by the Alliamce for America, an umbrella Harmful Spending and Subsidies," and to announce that they group representing over 50<) grassroots organizations, the had formed the Green Scissors Coalition to enforce the find­ fifthannual Fly-In for Freedo� was supposed to focus partici­ ings of their report. The coalition report, written by groups pants on the most effective wflYs to fight environmental radi­ that are, by conventional wisdom, on opposite ends of the cals, and to overturn insane environmental regulations. At­ political spectrum, calls for terminating crucial government tendees, mostly members of the Wise Use movement, came programs on the leading edge of infrastructure building and in response to appeals on fighting environmentalism, espe­ scientific and technological development. The proposed cially the Endangered Speci�s Act. Instead, the conference cuts, in the name of saving taxpayers' money and protecting agenda had been perverted �nd the bewildered participants the environment, would have a devastating impact on the found themselves addressed by leading advocates of environ­ physical economy and future of the United States. mental lunacy and by so-called "conservatives" who demon­ The conservatives and the greens in bed together? This strated that they have a nearly identical ideological perspec­ should not shock anyone. Since the Nov. 8, 1994 elections, tive with the greenies who oPfose all governmentsupport for the Conservative Revolutionaries have been unveiling their technological progress. ideological agenda, which is no different from that of the The new theme of the conference, presented by Ike Suggs greens: They share the British Empire's commitment to de­ and R.J. Smith of the Competitive Enterprise Institute, stroying the United States' national sovereignty, including among other speakers, was Ithat the enemy is the United the federal Constitution, and to implementing malthusian States government and Presi4ent Clinton-not environmen­ policies in opposition to scientific and technological talism. Instead of opposing the oligarchy which put through progress. the anti-industrial policy an4 the Endangered Species Act This drive is being led in Congress by House Speaker (ESA) in the 1960s and 1910s, the speakers called for a Newt Gingrich (R-Ga.), who is pushing the radical anti­ convergence with the greens.; science, "post-industrial" ideology typified by Alvin Toff­ These conservatives told! the participants to accept the ler's "Third Wave" thesis, and by free-trade fanatic Sen. Phil ESA and instead work to reform it to make it more green, yet Gramm (R-Tex.). more friendly to private prqperty interests. The argument By June of this year, the odd marriage of conservatives was that landowners should dot be penalized by restrictions, and greens shocked some anti-environmentalists and mem­ but instead rewarded when th�y help protect purportedly en­ bers of the Wise Use movement into recognizing how they dangered species. They h�mered home the idea that the have been used by the Conservative Revolution. Over June defense of private property must be the driving principle of 10- 14, more than 300 citizens, including loggers, ranchers , society, not a global fightfor growth and progress.

12 Science & Technology EIR July 28, 1995 The green radicals at Friends of the Earth and the "fiscal conservative" National Taxpayers Union issued a report in January which says it all: "Cut Wastefu l Spending with Green Scissors ." They're no fr iends of the United States or the American taxpayer.

Conference participants were further astounded to find tatorship that has made policy in Washington for the past two that the morning panel on June 11 had been turned over decades, by narrowly focusing them to defend their perceived to leaders of the National Audubon Society, the National self-interest and their individual greed. This is the deep flaw Wildlife Federation, the terrorist group Earth First!, and the among the constitutents the greens aretrying to destroy. They Competitive Enterprise Institute (CEI). The environmentalist place their self-interest above the national interest. All along, leaders used the panel to insult the majority of the partici­ the efforts of the anti-environmental movement have been to pants, while laying out plans for a convergence of the Wise create a movement that is based on self-interest, such as Use and environmentalist movements. This was all the more property rights or states rights, and free trade. The underlying outrageous, since many of the conference participants have concept is a profound hostility to the nation-building impera­ been the victims of Earth First!'s terrorist activities, while tive of the U.S. Constitution. These efforts, although in most others had been driven out of their homes or businesses by cases well intentioned, have given birth to this poison fruit, the policies of the Audubon Society or NWF. The conference leading to the green takeover of this movement. itself was dedicated to the memory of Gil Murray, head of The most revealing moment of the Alliance for America the California Forestry Association who was murdered in conference took place when EIR correspondent Anton Chait­ April by an eco-terrorist bomber. kin asked the Endangered Species Act panelists where they What transpired at the Alliance for America conference stood on the Green Scissors report and the fact that it was and the policies promoted by the Green Scissors Coalition supported by the National Taxpayers Union. CEl's R.J. could not possibly be further from the kind of policy advo­ Smith responded that, despite their differences, conserva­ cated by former Washington state Gov . Dixy Lee Ray, the tives and greens could work together on such issues as cutting best known fighter against green fascism among conserva­ governmentwaste . tives and "wise-users ." Ray, a former member of the Atomic Energy Commission who fought throughout her life for sci­ Green Scissors to draw blood entific and technological progress, unfortunately passed During the well-publicized press conference announcing away in 1993. the release of the Green Scissors report, spokesmen for The way the Conservative Revolutionaries and the greens Friends of the Earth and the National Taxpayers Union said have succeeded in fooling these individuals, most of whom that the report aims to entirely eliminate a number of federal consider themselves pro-American , has been to play upon government subsidies and funding for projects which they their legitimate grievances against the environmentalist dic- say are wasteful porkbarrel giveaways that endanger the in-

EIR July 28, 1995 Science & Technology 13 tegrity of the environment. The report singles out 34 pro­ the taxpayer some more money, Green Scissors could have grams and claims that cutting them will save taxpayers $33 called for more than $5 bill.on in cuts from the research billion over a five-yearperiod. on global warming, solar energy, and renewable resources. The National Taxpayers Union and Friends of the Earth Saving the taxpayer money lS not the point of the report: have worked together since 1993 to implement these goals eliminating infrastructure an� science and technology is. through a coalition called Citizens United to Terminate Sub­ sidies (CUT$). This coalition, which brings "fiscal conserva­ Protecting diseases fro� people tives and environmental progressives together," will be the One target of the Green �cissors report is spending for vehicle to campaign for the implementation of the Green health and human welfare. Tlilis is best illustrated by the re­ Scissors report. port's call to terminate the An�mal Damage Control Program Members of the coalition (see box) range from the conser­ (ADC), administered by the iu.s. Department of Agricul­ vative Citizens for a Sound Economy and the Concord Coali­ ture's Animal and Plant Health Inspection Service (APHIS) tion, to green establishment outfits such as the Sierra Club, with two major aims: to con$l damage caused by wildlife, the National Audubon Society, the U.S. Public Interest Re­ especially to livestock; and, to �ack down and destroyanimals search Group, and the Wilderness Society. Many more con­ carrying dangerous, communkable diseases. servative and green groups have joined the coalition since At present, there are outb¢aks of the bubonic plague and January. Funding for the Green Scissors report came largely rabies across the United States, particularly in the Western from the Rockefeller Family Fund and the W. Alton Jones States. Enormous populations of wildlife are infected with Foundation, two of the top funders of the multibillion-dollar the plague and are transmitting it to each other, as well as to environmentalist movement. people. More people have died of bubonic plague in the past Green Scissors aims at nothing less than wrecking the few years in the United States!than at almost any point in the ability of the governmentto build infrastructure, particularly preceding century . the ability to develop modem energy sources. The list of The main line of defenst1 against the further spread of programs targeted clearly indicates that these groups are act­ these diseases is the ADC pl!ogram. Furthermore, ADC is ing at the behest of the top levels of the British oligarchy, the only real defense against Other diseases carriedby animal which is fanatically opposed to the development and spread vectors, such as rats , including the deadly hanta virus.The of scientific and technological progress, especially as that is health of millions of Americans depends on the control of embodied in the U.S. Constitution. these animal vectors. The annual cost of the ADC program Green Scissors aims to drain the blood out of several is a measly $36 million. Obviously, the cost of the program crucial areas of infrastructure, particularly: energy produc­ is not the reason why the Green Scissors wants to cut it. tion; irrigation and flood control; agriculture, forestry, and In the 14th century, a pandemic of bubonic plague killed mining; and transportation. While the Green Scissors Coali­ between one-third and one-hoofof the population of Europe, tion claims that the elimination of these programs will save following the collapse of thei banking system under condi­ $33 billion over fiveyears ($6.6 billion a year), the report is tions of a war-ravaged economy. Given the rapid collapse a fraud from the standpoint of economics, science, and social of the U. S. and world econotny, conditions could again be policy. As we shall see, these cuts will exact an enormous created for the catastrophic spread of disease. toll on the health and well-being of the American people, as In this context, it is quite interesting to point out that the well as the economic future of the country. The actual cost malthusian Carrying Capacity Network (CCN) supports the of these cuts will amount to trillions of dollars. Green Scissors report. The June-July 1995 issue of the CCN If the National Taxpayers Union and Friends of the Earth bulletin had a front-page "Call To Action" requesting all its were truly concerned with reducing the deficit, they could members to purchase the rep4>rt and to support the National call for a system of national banking to replace the Federal Taxpayers Union. CCN is ODe of the leading advocates of Reserve System, so that the government would not have to population control. One of it!; directors is Paul Ehrlich, the pay usurious rates to issue currency, a process which sinks leading green guru who began predicting environmental the federal government$300 billion a year deeper into debt. doomsday in the 1960s, and who has proposed a radical They could have called for the elimination of useless reduction in the world's population as the only long-term environmental mandates (they officially cost the economy solution to the world's environmental problems. over $200 billion a year, in reality closer to $1 trillion). The ban on chlorofluorocarbons (CFCs), for example, will cost Extermination of advallced energy programs the U.S. economy over $1 trillion by the year 2000. In fact, The Green Scissors Coalition has also committed itself as documented in this writer's book, The Holes in the Ozone to the elimination of any research into future energy sources. Scare, The Scientific Evidence that the Sky Is Not Falling The report calls for the elimination of virtually the entire (Washington, D.C.: 21st Century Associates, 1993), there is nuclear research program as well as any research into fusion no scientific evidence that CFCs are damaging the ozone energy. Just about all major Itesearch and development pro­ layer or pose a future danger. If the coalition wanted to save grams for nuclear energy are slated for the chopping block,

14 Science & Technology EIR July 28, 1995 ensuring that society is frozen into a total dependence on Physics Experiment (TPX) reactor at Princeton, New Jersey, fossil fuels. Moreover, while advanced coal research pro­ as well as the National Ignition Facility at Lawrence Liv­ grams are targeted by Green Scissors, oil is not, which may ermore National Laboratory in California. The Livermore have something to do with the fact that the major multination­ reactor would use lasers to ignite deuterium and tritium fuel al oil corporations, led by Royal Dutch Shell and Atlantic to start a self-sustaining fusion reaction. This facility can Richfield Corp. (Arco), contribute hundreds of millions of also be used to study the physics of nuclear weapons and to dollars to the environmentalist movement either directly or provide inexpensive tests to examine their effects. through private family foundations. The Rockefeller family, The NTU and Friends of the Earth are also planning the which contributes over$50 million a year to the environmen­ takedown of nuclear research for medical purposes. One of talist movement, for example, made its fortune in oil. As the Green Scissors proposals is to terminate the Advanced noted earlier, the Rockefeller Family Fund helped pay for Neutron Source at Oak Ridge , Tennessee. As noted by the the production of the Green Scissors report. Green Scissors report itself, the ANS "is a civilian research The coalition has a three-pronged attack on nuclear re­ reactor" that would produce "the greatest number of neutrons search. The firstprong is its attack on research to develop the per unit area per second." This breakthrough, "would enable next generation of nuclear reactors for civilian use, which certain research to be conducted for the first time and other includes energy generation and medical uses. Its second activities to be significantly expedited." The report further prong is to dismantle research into nuclearweapon s, and its acknowledges that the ANS reactor will be used to "conduct thirdprong is to prevent the construction of the nuclear waste materials research and to produce isotopes for research and repositoryat Yucca Mountain, Nevada. medical use." The motto for this cut should perhaps be "let The attack on nuclear energy is one of the most dishonest them have cancer." aspects of the Green Scissors report. The report explicitly Green Scissors also targets coal and hydroelectricpower. attacks nuclear power, claiming that it "continues to pile up For all its environmentally friendly pretensions, the report dangerous radioactive waste for which there is no proven calls for terminating the Clean Coal program that has led to method of safe and permanent storage or transportation." the reduction of polluting emissions from coal-burning The case of France-80% of whose electricity comes from plants; and the cancellation of various water projects, includ­ nuclear power-gives the lie to that assertion. France does ing dams and hydroelectric projects, not just in the United not have a problem with nuclearwaste because they reprocess States, but around the world. it. Most important, however, is that the Green Scissors Coali­ In addition, the Green Scissors Coalition calls for the tion intends to ensure that its prophesy about nuclear waste termination of the Rural Electrification Administration is fulfilled, by closing down the construction of the Yucca (REA) program and the reform of the Power Marketing Ad­ Mountain repository, leaving the nation with no safe, long­ ministrations. REA was created in 1935 as the Rural Utility term storage site for nuclear waste. Two of the nuclear re­ Service (RUS), and its job was to finance the development search programs that the Green Scissors Coalition wants to of the electric and phone grid in rural America, to provide terminate would reprocess spent nuclear fuel, including plu­ universal service to areas that would have been abandoned by tonium, and use this former "waste" as an energy source. private companies because of their unprofitability. REA has While Friends of the Earth's violent opposition to nuclear done a magnificentjob and it continues to play a critical role poweris well-known,the National Taxpayers Union's is not, in providing low-interest loans for the further development despite the fact that NTU has opposed nuclear power for over of energy infrastructureacross the United States. The Green two decades. In the 1970s, the NTU led the opposition to the Scissors report complains that the rates offered by REA are Clinch River Fast Breeder Reactor in Tennessee. This project not usurious and therefore it should be eliminated. Such a was finally terminated when the Reagan administration said step would prevent any further infrastructural and industrial it could be completed as a private enterprise. As could be development in rural areas, particularly in the West. expected, no "entrepreneurs" ventured forth to complete the project. Breeder reactors use spent plutonium fuel and actual­ Target: food production and flood control ly produce more fuel than they consume. Just as the Green Scissors report lays out a strategy to In the past few years, the NTU has been leading the destroy future energy technologies, it also takes aim at agri­ opposition to the Integral Fast Reactor at Argonne National culture by calling for an end to the construction of new irriga­ Laboratory in Illinois. The IFR is designed to use spent nucle­ tion projects and water control projects. The report calls for ar fuel and waste plutonium. $4.2 billion in cuts to agricultural irrigationpro jects. Not content with destroying the nuclear industry, the Among the reasons given for these cuts, two stand out: National Taxpayers Union and Friends of the Earth are also "The Interior Department heavily subsidizes irrigation of out to destroy research into fusion energy. The Green Scis­ crops that the Agriculture Department pays farmers not to sors Coalition targets those fusion research facilities that have grow"; and the falsehood that these farmers are growing not previously been cut back. The report calls forthe termina­ "surplus crops." As extensively documented by EIR , there tion of any further design or construction of the Tokamak are no "surplus crops" anywhere in the world, and, in fact,

EIR July 28, 1995 Science & Technology 15 the world is now facing severe food shortages, at the same time that food production has collapsed in the United States. The United States is no longer self-sufficientin food produc­ tion and has almost no food reserves to speak about. One project that has drawn fire from the report is the The Greenscibsors Coalition and targ Animas-La Plata project in Colorado, to build a major dam itsprinci �al ets in a water-starved area and develop a system of reservoirs and pumps that would lift water 1,000 feet and distribute "Fiscal Conservatives" it through a 240-mile network of canals. If this project is National Taxpayers Union cancelled, the likelihood is that every other major irrigation Citizens for a Sound Economy project leftin the West will be as well. With serious shortages Concord Coalition of water already existing in the West, which will become Council of Citizens Against Government Waste acute in the next few years, these cuts would have very Lead or Leave serious repercussions. Environmentalists Flood control programs would also findtheir way to the Friends of the Earth I Green Scissors cutting room floor. The report calls for a American Oceans Campaign 50% cut in the Army Corps of Engineers Inland Waterways Center for InternationalEnvironmental Law Operations and Management Budget. In addition, the Green Clean Water Action Scissors report wants to slash $1.25 billion from the Corps of Coast Alliance Engineers Civil Works program, arguing falsely that "rather Defenders of Wildlife than reducing flood losses, federal flood control and relief Environmental Action FOUndation have encouraged the development of flood-prone areas by National Audubon SocietY eliminating incentives for strong state and local floodplain National Parks and Conservation Association management." One wonders where these people were two National Wildlife Federat.on years ago, when the floodingof the Mississippi and Missouri National Wildlife Refuge Association rivers showed that only levee and floodcontrol systems built Natural Resources Defense Council by the Corps of Engineers stood up to the flood, while almost Nuclear Information and aesource Service all the levees and other systems that failed were exactly those Physicians for Social Responsibility built under state and local management! In addition to the Public Citizen reduction or outright elimination of flood control programs, Safe Energy Communications Council Green Scissors wants to do away with any Coastal Flood Sierra Club Insurance for new developments, and opposes the creation of a Natural Disaster Protection Fund Proposal.

'War on the West' raise their cattle in private lOts. The report conveniently ig­ The National Taxpayers Union and Friends of the Earth nores the fact that the public lands, especially in the West, particularly target resource producers in the western part of are largely desert areas witb. little water and no improve­ the United States. As such, Green Scissors is an escalation ments, while the eastern pastures have plenty of water, for­ of the "war on the West" launched by President George Bush age, and land improvements.; Such a change would put most in collaboration with the environmentalist movement, to pre­ westernranchers out of busirless. vent any further development of the western states and to And, of course, the water-short West will be severely tum that part of the country into an empty wasteland. That affected by the termination of irrigation and water projects, scenario was laid out in the book The Nine Nations of North and elimination of the Rural ElectrificationAdministration. America and covered in the June 2, 1995 issue of EIR . One of the most ironic ;aspects of the Green Scissors The two most important changes proposed by the Green movement is that western cQllservatives are among the big­ Scissors report are a "reform" of the 1872 Mining Act, and gest supporters of the National Taxpayers Union and the the end to any further road building in National Forest lands. Conservative Revolution. They have become so ideological­ Those proposals would destroy what's leftof the U . S. mining ly blind in their pursuit to tear down the U.S. government and timber industries. that they have not even notiCed that they are themselves a In addition, Green Scissors gives free rein to a "free target of this eco-fascist alliance. market" approach to the grazing fees paid by ranchers to graze .their cattle on public lands. The report fraudulently Friends of the oligarchlY argues that the westernranchers should pay the same charges On a deeper level, the National Taxpayers Union and to graze on public lands that eastern cattle growers pay to Friends of the Earthare two of the most sophisticated outfits

16 Science & Technology ElK July 28, 1995 SouthernUtah WildernessAlliance USDA Marketing Promotion Program-Terminate 20/20 Vision National Project funding Taxpayers Assets Project Grazing Fees-Increase fees U. S. Public Interest Research Group Sugar Program-Eliminate import quotas and price sup­ The Wilderness Society ports Animal Damage Control Program-Eliminate Green Scissors targets program Energy Programs Irrigation, Water Control, and Disaster Protection . National Ignition Facility-Terminate program Animal-La Plata IrrigationPro ject (Colorado)­ GT-MHR Gas-Cooled Reactor-Terminate program Terminate project Advanced Light Water Reactor-Terminate regulatory Arum Dam III (Nepal)-Cut funding of World Bank's assistance and cancel the first-of-a-kindengineering International Development Association by the program. proportion of the proposed Arum III loan. Yucca Mountain Nuclear Waste Repository-Stop site Army Corps of Engineers Civil Works-Cut construction funding for the civil works program and transfer Tokamak Fusion Reactor-Cancel any further design or responsibility for flood control to state and local construction governments. Atomic Vapor Laser Isotope Separation-Terminate Passaic River Tunnel (New Jersey)-Deauthorize flood program tunnel project Advanced Neutron Source-Terminate program Irrigation Subsidies-Eliminate or restrict subsidies for Nuclear Testing Site-Cease testing and reduce irrigationpro jects to grow food crops operating expenses AuburnDam (Sacramento, California)-Deny any Nuclear Waste Fund Fee-Increase fee funding to the Army Corps of Engineers Rural Electrification Administration-Eliminate the Inland Waterways Operations-Reduce operation and administration maintenance budget by 50% Coal Research and Development-Cut funding Proposed Natural Disaster Protection Fund-Reject Agriculture and Mining proposal, allow free maket mechanism to handle 1872 Mining Act-Rewrite the law risks Forest Service Timber Roads-Cut all funding for con­ Coastal Flood Insurance Reform-Prohibit insurance for struction of new roads new developments in coastal zones

run by Prince Philip's Club of the Isles. As noted in the EIR fascist drive to destroy scientificand technological progress. Sp ecial Report on "The Fall of the House of Windsor" (Oct. The most recent annual report of the NTU proudly boasts 28, 1994) the Club of the Isles created a vast network of that, in the early 1970s, it helped lead the charge to strip organizations criss-crossing the ideological and political funding from the U. S. Super Sonic Transport program, landscape, to implement their policies. While these organiza­ which was also one of the major targets of the environmental­ tions may have cosmetic ideological differences, they share ist movement. The SST was the next step in the development a common commitment to restoring and protecting the British of the U.S. aerospace program, and its termination nearly Empire. A full treatment of the pedigree of these organiza­ destroyed the space program. While Britain and France de­ tions was detailed in three EIR cover stories (Jan. 13, Feb. veloped the Concorde, that plane was one-third the size of 17, and June 2). the planned U.S. SST, and is now 25 years old, with few The most interesting organization to examine in the con­ programs planned to replace it. text of the Green Scissors report is the National Taxpayers It was the National Taxpayers Union that initiated the Union. Founded in 1969 by James Dale Davidson, NTU is drive to call a constitutional convention to pass a balanced part of a whole nest of conservative outfits working at the budget amendment in the early 1980s. behest of the British Empire, as documented in the Feb . 17 NTU's chairman and founder, James Dale Davidson, issue of EIR . This includes the Mont Pelerin Society, the collaborates very closely with Britain's Lord William Rees­ Heritage Foundation, the Reason Foundation, the Cato Insti­ Mogg, who has played a major role in the most recent efforts tute , the Progress and Freedom Foundation, and the Ameri­ to destroy the United States, including his promotion of the can Legislative Exchange Council. militias. Since its inception, NTU has been a leader of the eco- Davidson is a principal of Strategic Advisors Corp. of

EIR July 28, 1995 Science & Technology 17 Baltimore, Maryland, which he describes in a 1993 tract from western Canada to eastern Canada. . . . This is the as "an asset management group for wealthy individuals." only pipeline that transports crude oil from western to Strategic Advisors publishes Strategic Investments, a finan­ eastern Canada" (emphasis ip original). The next sentence cial newsletter edited by Davidson and Rees-Mogg. This is is especially revealing: "Come inflation or depression, the the newsletter that has been used to build the anti-government folks in eastern Canada will still need oil. It's a sure bet." militia movement. "This one is so safe," adds Davidson, "I bought it for my Davidson and Rees-Mogg coauthored the books Blood In mother." the Streets: Investment ProfitsIn A World Gone Mad and The NTU's connections to the Reason Foundation may be Great Reckoning, both of which proclaim that a financial another reason for its pro-gas and oil stance. Reason Founda­ apocalypse is imminent; but, they add, those in the know can tion President Robert Poole is, on the advisory board ofNTU. make a killing by buying investments at panic prices. There are at least three other �onnections between NTU and On Jan. 5, 1995, Rees-Mogg penned an incredible dia­ the Reason Foundation. In tum, a major contributor to the tribe against public education in the London Times, arguing Reason Foundation has beeq Shell Oil Co., the U.S. arm for a return to an information age version of feudal society: of the Anglo-Dutch international apparatus known as Royal "The information age will require very high skills in non­ Dutch Shell. According to private accounts from within the repetitive work. In internationalcompetition, perhaps 5% of industry, the Royal Dutch Shell apparatus possesses the most the population will produce 80% of the national income, and sophisticated strategic planning capability in the world, ow­ the employment of the 95% will depend on the success of the ing to the historically close ties between the British Shell few ." Transport and Trading on thei one hand, and the British For­ Interestingly, given his views on education, Lord Rees­ eign Office, British intelligence, and the Chatham House Mogg is vice chairman of the BBC, and chairman of the apparatus on the other. There have also historically been Broadcast Standards Board, which sets standards for public close ties between Shell and the Bank of England. broadcasting in Her Majesty's realm. Of special note, given the NTU's recent joint venture Davidson is very open about his connections to the Euro­ with the Friends of the Earth: The present chairman of Shell pean oligarchy and its functionaries. In a 1993 book, The Transport and Trading, Sir Peter Fenwick Holmes, serves as Plague of the Black Debt: How To Survive the Coming De­ a trustee of Prince Philip's World Wide Fund for Nature pression, the NTU chairman writes, "Much of our success is (formerly the World Wildlife Fund). The late John H. Lou­ based on a key insight into events. It is not legal to profit doun, chairman of Shell during the oil hoaxes of the 1970s, from inside information about stocks. But there is no such was a co-founder of the lOQ1 Club--the primary funding problem with inside political information. mechanism for the WWF-�d also served as president of "Let's face it. Markets do not move totally at random. the World Wildlife Fund. They move because somebody decides to do something. Peo­ Other notables connected with the National Taxpayers ple move markets. And powerful people move them power­ Union or the National Taxpayers Union Foundation include: fully. When stocks shootdown or up, it is usually becauseof • Jerry L. Jordan of the NTUF Advisory Board, and actions taken in Washington, or Tokyo, or Bonn ....One president of Federal Reserve Bank of Cleveland; advisory of our contacts runs one of the biggest investment portfolios board of the pro-drug legaliaation Reason Foundation; and in London. Another is a former president of the Rothschild Cato Institute adjunct scholar. Bank in Zurich. Another is a former president of one of the • Prof. Allan H. Meltzer:, NTUF Advisory Board, and a world's largestoil companies." trustee of the Sarah Scaife Foundation, a major funding con­ Concerning his partner, Davidson boasts that "Lord Wil­ duit for the Conservative Revolution apparatus; member of liam Rees-Mogg ... is the former editor-in-chief of the the Ann Arbor, Michigan-based Philadelphia Society, the Times of London, vice chairman of the BBC, and confidant American affiliate of the Mo�t Pelerin Society; and co-chair of powerful British figures like Margaret Thatcher and Lord of the Shadow Open Market Committee. Rothschild. He is also a director of London's Private Bank • Robert W. Poole Jr. , NTU,F Advisory Board, and pres­ and financial adviser to some of the world's wealthiest fam­ ident and trustee of the Reason Foundation. ilies. " • Dr. Anna J. Schwartz, NTUF Advisory Board, of the One of the most interesting questions that has been raised National Bureau for Economic Research, and co-author with is whether NTU' s opposition to all formsof fission and fusion Milton Friedman of AMonetqry History of the United States. energy has to do with oil and gas investments by Chairman • Prof. Gordon Tullock: of George Mason University, Davidson? In The Plague of the Black Debt, Davidson tells NTUF Advisory Board, member of the Mont Pelerin Society, readers that a great investment would be Lakehead Pipeline and adjunct scholar to the HentageFoundat ion. LP, a limited partnership traded on the New York Stock • James M. Buchanan, director of the National Taxpay­ Exchange. Lakehead "owns the 1,100-mile-Iong U.S. ers Union, and president of the Mont Pelerin Society from portion of the oil and gas pipeline which runs 2,300 miles 1984 to 1986.

18 Science & Technology EIR July 28, 1995 technologies. NEFCO, a Scandinavian ecologicalcompany, is now conducting research in the industry of Arkhangelsk and Murmansk regions and Karelia, apparently eager to get to the center of atomic shipbuilding at Severodvinsk. Five years ago, a Greenpeace vessel was stopped not Infms tructure far from the Novaya Zemlya archipelago, site of Soviet hit nuclear tests. The Greenpeaceniks were furious. The news­ paper Komsomolskaya Pravda, one of the locomotives of by greens in Russia Mikhail Gorbachov's perestroika policy in the 1980s and now home for various Gorbachovists, expresseddissa tisfac­ by Konstantin Cheremnykh tion with the fact that the military would not let . the Greenpeace"eco-revolutionaries" into the nucleartest zone. On June 16, when horror-struck Russians were waiting for new information on the fate of civilians taken hostage by a Losses incalculable Chechen force in the southern town of Budyonnovsk, the Since 1991, Greenpeace has had an officialorganization State Duma (national Parliament) was busy adopting a new in Moscow, which is busy keeping tabs on the military and law, forbidding ...torturing animals. launching protest campaigns against infrastructurepro jects. Ecological issues, thanks to the United Nations and the In 1993, the Greens sponsored by Greenpeace managed to British monarchy's royal consort Prince Philip personally, get the project of the Ust Luga port in Leningrad Province have become a sort of sacred cow that is regarded with (around St. Petersburg) frozen for an undetermined time. almost religious respect. Each political party puts wildlife According to the weekly Ekonomika i zhizn (Economy projects in the center of its political program. and Life), the Ust Luga port project attracted interest from Recently the weekly Za Rossiyu (For Russia), published the Naval Ministry of Germany as well as the administrations by the People's Labor Union, a 60-year-old post-White of Rostock, Lubeck, Kiel, and Hamburg. Germany was Guard anti-Communist organization, which used to be uti­ going to use the port for trading with Japan, South Korea, lized by the CIA and British intelligence for espionage and China. For Russia, the project is of crucial interest against the U.S.S.R. and which backed Gen. Andrei Vla­ after the separation of the Baltic states, where the ports of sov's Russian Liberation Army, which was allied with the Klaipeda, Riga, Ventspils, Tallinn, and Paldisky are lo­ Hitlerites during World War II, published a new program cated. containing an emotional ecological chapter. It features "sus­ The losses brought by the Greenpeace activity are incal­ tainable development." The Communist Party of the Russian culable. Federation (CPRF), for which the People's Labor Union is an absolute antipode, dedicated even more words to the High-speed railway targeted same "sustainable development" in its new party program. The eco-radicals have also tried to underminethe,project for a Moscow to St. Petersburg high-speed railway. The Infiltrated into Russia same Komsomolskaya Pravda (it is interesting, how many The notion of "sustainable development," promoted in of the Russian Greenpeaceniks are former Komsomol, United Nations circles as a cover-name for what is more Communist Youth League , leaders) started a campaign of accurately called "technological apartheid" (i.e., the denial protection for the Valday National Parkand its fauna, which of more advanced technologies) against less developed coun­ would be disturbed by the noise of the road. But the greatest tries, has been infiltrated into Russian parlance in a tricky "tragedy" was seen in the protective wall along the roadbed, way. At some point, a Russian translation for the phrase which would prevent small animals from crossing the was selected: ustoychivoye razvitiye, which means not "sus­ railway. tainable," but rather the even more innocuous-sounding " sta­ In mid-June, the ecological expert analysis of the high­ hie development." speed railroad project was finallycompleted. Scientists and The "green religion" is spreading with the speed of an high officials did their best, curtseying before the eco-dicta­ epidemic. Its march through Russia is increased by impover­ torship. Billions of rubles will be spentfor making a curve ished scientists, who have no other way of earning money around the Valday National Park, as well as for construction except research work in the ecological field. Other fields of special tunnels for fr ogs (this was reportedofficially , and of science are not a priority for investments from western with a serious air, on the radio in St. Petersburg). institutions. No doubt this money could rather be invested into the The growing interest of investors in ecological research productive economy, or used for relief for the refugees from is marked by areas of special curiosity, prompting suspicions Chechnya, Abkhazia, and so forth. Too bad for them, those that it is just a pretext for gaining cheaper access to Russian women and children were not born frogs.

EIR July 28, 1995 Science & Technology 19 TIillFeature

Why most Nobel Prize economists are quacks

by Lyndon H. LaRouche, Jr.

This Economic Advisorywas released on July 14.

Today, every nation on this planet is under the domination of a single, worldwide, monetary and financial system: the so-called International Monetary Fund (IMF) system. That system is about to go out of existence. The worst financial collapse of the Twentieth Century could erupt within as soon as weeks, or, in the unlikely case, the disintegrationof the system could be postponed until as late as early 1997. Nothing can save the present monetary and financial system. It could be gobbled up in an orderly bankruptcy reorganization conducted by governments, or, if governments are , as Hamlet said, too "pigeon-livered" to do this, it will reach the point that the system simply disintegrates within as shorta span as 24 to 72 hours. That is to say, it would vanish as if in a cloud of smoke: in an implosion of what is called "reversed financialleverage. "I That information should come as no surprise; any competently trained econo­ mist would agree immediately with what has just been written here. They, and all honest mass news-media, would have been warning governments of this danger over years, even decades. To illustrate that point: The present writer has forecast just this danger-repeatedly, consistently, and accurately-during the past 30 years; during the mid-1970s, he found concurrence with his own forecast, on the general nature of the danger, in his personal meetings with such notable figures as the former economic adviser to President Charles de Gaulle, the distinguished Jacques Rueff. During the recent several years , another of the rare species of competent economist, France's Nobel Prize-winning economist, Maurice Allais,2

I. A collapse bestdescribed by the same sets of equations used to describe a chemical or nuclear explosion. 2. See Maurice Allais, Le Figaro: April 26, May 9, June I, and Nov . 15-16, 1994. Allais also has the special distinction, of beingthe only sane personyet to receive the Nobel Prize for Economics.

20 Feature EIR July 28, 1995 The bankruptcy of "classroom mathematics" : Radical positivist Niels Bohr, fa ther of the Copenhagen School in physics, fo llowed in the fo otsteps of the occultist Isaac Newton. This tradition has produced as many quacks in economic science as it has in physics and mathematics. has been warning publicly, and repeatedly of this imminent ion on the subject of social theory in general and economics in danger. particular. First, consider the subject-matter whose mention Yet, until a few months ago, most generally recognized terrifiespopular economic opinion today. economists, worldwide, showed themselves not competently The facts just referenced pose three crucial questions of trained. Until the aftermath of both the Orange County, Cali­ policymaking to the U.S. A. 's and other governments. I) Why forniaand Mexico outbreaks, they consistently derided such did virtually all of the most respected professional economists warnings-although, at that time, the symptoms of an on­ and bankers of the world fail so contemptibly, over a period rushing, early general financial chain-reaction collapse, of 30 years? 2) Why did we tolerate, over a period of25 years, echoing the famous, Weimar Germany Reichsmark collapse economic, monetary , and financial policies whose foreseeab­ of 1922-23, were already the dominant features of world ly inevitable consequence was a collapse of the physical econ­ markets. omy of the planet, and also, inevitably, the worst monetary Now, over the course of the period since the Orange and financial collapse in European history since the mid-Four­ County bankruptcy and the Mexico crisis, a significant and teenth Century, when England set off the chain-reaction col­ increasing number of prominent economists and bankers nod lapse of the Lombard debt-bubble of that time?3 3) Why sadly, and agree: The system is coming down. One might 3. See Barbara Tuchman, A Distant Mirror: The Calamitous Fourteenth respond to that: Better late than never; should we not respond, Century (New York: Alfred A. Knopf, 1978); also, Miriam Beard, A instead: that the economics profession and the bankers have History of The Business Man (New York: MacMillan, 1938). Over the failed miserably over the past 25 years, or longer? Must we hundred years preceding that collapse of the "Lombard" debt-bubble, since not say, that they should have foreseen this coming decades the A.D. 1250 death of the Holy Roman Emperor Frederick II, Europe had ago, and warned governments and the public of the conse­ been gripped by the rise of a Venice-controlled "Black Guelph" faction, and the effects of the invasion of Venice's ally, Genghis Khan's Mongols, from quence of continuing the mistaken policies already under the east. By the time of the death ofthe anti-"Black Guelph" political leader, way back then? Dante Alighieri, all westernEurope lay prostrate under the heel of Venice's To recognize why otherwise educated and intelligent peo­ "Black Guelph" agents, notably the ultra-usurious Lombard bankers-the, ple, when confronted with generally accepted economics so to speak, Paul A. Volckers of their time. Miss Beard properly highlights dogma, so often behave like credulous spectators at a carnival the case of two of these swindlers, known by their French cognomens, "Biche" and "Mouche." Among the more disgusting cases of belated resis­ side-show, we must make clear certain deep-rooted false, tance to Venetian usury was England, which had been virtually a "suburban empiricist, assumptions about science. These are the preva­ development project" of Venice's bankers since the relevant capitulations lent, mistaken assumptions which have shaped popular opin- of comprador-kings Edward II and Edward III. Then, mid-century, came

EIR July 28, 1995 Feature 21 do most governments of the world, and also most "popular The assessment of these market-basket requirements is opinion," support the policies of such transparently lunatic implicit. The relevant questioniis, what would be the actuari­ economic dogmas as those of former British Prime Minister al impact upon demographic cllaracteristics of family house­ Margaret Thatcher, Harvard's Prof. Jeffrey Sachs, Sen. Phil holds and productivity (ratio of output to input of these mar­ Gramm, and U.S. House Speaker Newt(on) Gingrich? ket-basket contents), were thel contents of some among the total spectrum of market-baskets to be increased, or de­ creased? Define"implicit economic equilibrium" 1. as a secular The present economic crisis trend corresponding to a rate Qf physical economic growth, measured Before attempting to answer the series of questions we in terms of demographics and output-to-input ra­ tios, of about have just posed, consider the relevant most crucial facts about 5% (physical-economic) growth per annum. the presently skyrocketting, global, financial and economic Employ the suggestive imageries ofthe undergraduate sci­ . crisis. The data upon which the following summary is prem­ ence classroom; identify that " mplicit equilibrium" level as ised are the standard statistics publicly available to every representing the "energy of th� system" of the physical-eco­ � government and leading economist in the world. nomic process at that interval o the continuing process. Thus, To those statistics apply the following procedures, for continuing to employ the same mbOlism: The ratio of output to input, implicitly defines a ra io of "freeenergy" to "energy the purpose of comparing U. S. per-capita income and output ,, 6 the during the interval 1956-94. Reduce the publicly available of the system. This symboli requires us to state that healthy, non-degenerative ("s stainable") phases of an eco­ data used, to the form of values expressed as quantities per ,, nomic process, are Characteri ticailY "not-entropic. 7 capita,4 per family household, and per square kilometer of 1 relevant land-use. EI Define inputas consumption by persons, by households, 6. Do not overlook a crucial point i ied here. What does societydo with by agriculture, by mining, by basic economic infrastructure, the "free energy" margin? A sane ety reinvests most of it not only for by manufacturing, by construction, and by allowable ratios expanding the economy in scale, but so in increasing the relative content . of the energy-of-the-system, per cag ita, per household, and per square of employment for sales and administrative functions of both kilometer. Thus, the capital-intensity jmd power-density requirements of a government and the private sector. Use U.S. data for 1956 "sustainable" economic process are dontinually increased. To maintain a as the standard of comparison for "allowable ratios of em­ "constant" minimum ratio of "free energy" to "energy of the system" over ployment for sales and administration of both government successive epochs of the process, requires a corresponding increase in the and the private sector." This yields "market baskets of con­ physical margin of output available for investment. This latter constraint is satisfiable by no other means than advances in productive and related sumption" for persons, households, infrastructure, produc­ technologies. The same challenge i� presented by the apparent relative tion, and sales and administration: all, of course, per capita, finiteness of what an existing level of t�hnology regards as required natural per family household, and per square kilometer of relevant resources; this constraint can be overcome solely through the same means: land-use. (See Table 1 for 1967 figures.) advances in productive and related technologies. Defineoutput as the production ofthe items contained in 7. The system is actually "not-entropio," not merely in the symbolic, but the the market-baskets of consumption. strictly physical sense. "Not-entropy" is employed here in a sense distinct from Prof. Norbert Wiener's silly derivation of his term "negentropy" from The content of these market-baskets is limited to useful Ludwig Boltzmann's H-theorem (NorbertWiener, Cybernetics[New York: physical goods, measured in physical (not monetary) units, John Wiley & Sons, 19481; see Mopis Levitt, "Linearity and Entropy: plus three elements of infrastructure indispensable for main­ Ludwig Boltzmann and the Second Law of Thermodynamics," Fusion En­ taining and improving the demographic characteristics of the ergy Newsletter, September 1976, pp. 3-18). The measure of the not­ family household, and for maintaining and improving the entropy of a system is implicitly su�plied by the mathematician Georg Cantor (n.b., Beitriige zur Begrundung der Mannigfaltigkeitslehre, in productive powers of labor: education, health-care delivery, Georg Cantor: Gesammelte AbhancUungen mathematischenunci pbilo­ and science and technology as such. S sopbischen Inhalts [Berlin-Heidelbe,g: Springer-Verlag, 19901, pp. 282- 356). The mathematical representatioq of the relative not-entropy of a physi­ the time that the King of England, like the voters of Orange County, Califor­ cal process is effected through a comparative study of a increase in the nia more recently, repudiated England's debts to the Lombard House of Bar­ relative cardinalities of two crucially Clistinct successive states of a system: di, Biche's and Mouche's employer, and the entire banking system of Europe e.g. , the implicit increase of the densitY of implicitly enumerable mathemati­ went promptly belly-up, in a chain-reaction of Fourteenth-Century "reversed cal discontinuities per arbitrarily cho,en interval of action of the process. financial leverage . " The cause for a "sustainable" increase in the productive powers of labor, in 4. I.e., percapita of total available labor-force. a physical economy, is the realized increase in those forms of knowledge 5. For example, to maintain the net rate of growth of physical productivity (i.e. , cumulative discoveries of valid principle) which produce the effect of (per capita of total available labor-force, per family household, and per technological progress. This function for "not-entropy" was discovered by square kilometer of relevant land-area) at circa I %3 levels, approximately the present writer during the course ofa project (1948-52), prompted by a 5% of the totallabor-force must be employedin functionsof physical science determination to expose the fraud of Wiener's fraudulent claim to represent and engineering. This references the comparison of three bench-mark, de­ human knowledge by the mechanical means of statistical "information theo­

velopedeconomies (the U.S . A . , Germany,and Japan) for the interval I %7- ry ." The present writer employed Can�r' s work to illuminate certain deeper 70. If the level of employment for technological progress, and in related implications of Bernhard Riemann' s 1854 habilitation dissertation,"On The machine-tool sector categories, drops below that ration, the economy will Hypotheses Which Underlie Geometry," (Uber die Hypothesen, welche suffer an entropic physical-economic net decline. der Geometrie zu Grunde liegen. in lBernhard Riemann's Gesammelte

22 Feature EIR July 28, 1995 TABLE 1 The decline of the U.S. market basket

1960 1963 1966 1970 1980 1990

Capital goods Fertilizer 2.00 1.75 1.39 1.29 1.36 1 .26 Construction machinery 1.00 0.93 0.83 0.97 1.19 1.84 Mining machinery 1.46 1.72 1.48 1.53 2.1 8 3.00 Oilfield machinery 1.28 1.25 1.17 1.03 1.27 1.61 Industrial construction 1.38 1.38 0.86 1.31 1.41 2.65 Ocean-going shipping 0.30 0.24 0.99 0.07 0.06 1.05

Householdgoods Textiles 0.89 0.88 0.92 1.25 2.26 2.90 Shoes, leather 0.86 0.90 0.95 1.17 1.97 3.26 Passenger cars produced 1.14 1.05 0.97 1.30 1.51 1.74 Residential construction 1.16 0.90 1.16 0.96 1.03 1.14 School construction 1.12 1.17 0.98 1 .28 2.69 2.00 Hospital construction 1.67 0.97 1.09 0.91 1.38 1.20

Intermediate goods Copper 26.03 28.54 22.85 19.81 29.06 22.17 Nickel 0.94 1.09 0.99 0.87 1.25 52.89 Bauxite 4.75 6.98 13.01 11.63 17.71 65.26 Hydraulic cement 3.87 3.97 3.77 3.89 4.29 3.68 Crude steel 1.76 1.93 1.62 1.71 2.24 1.74 Natural sulfur 3.57 4.05 3.52 3.63 4.54 8.44

This table shows the relationship to a 1967 standard, of a selection of capital goods, household goods,and intermediate goods which are part ofthe market bas­ ket of consumption of the U.S. economy. The numbers are calculated based uponthe greater of consumption or production, then indexed to 1967. Thenumber in the table, represents the number by which the consumption in that year should be multiplied, to meet the 1967 market basket standard. Figuresover 1.00 showa shorttall, while figures under 1.00 show a surplus. For example, for fertilizer consumptionin 1990 to have met the 1967 standard, consumption would need to have been 1 .26 times actual consumption. Source: EIR market basket studies

By that standard, using nothing other than the officialsta­ FIGURE 1 tistics which are generally available to all professionals and Employment of operatives as percentage of relevant governmental and private institutions: The U. S. actual requirement economy has been in a continuing state of physical-economic decline over the entire period, from 1967 -70 to 1992-95.8 (See 90% Figures 1-3.) Overall, the relevant available statistics are suf­ ficient to show, that the same trend is characteristic of the 80% world-economy taken as a whole. The same array of statistics shows, that although there were tendencies in this disastrous 70% direction in the U.S.A. prior to 1963, it was a package of radical policy-changes set into motion during the 1964-72 in­ 60% terval , which has been responsible for the persisting net de­ cline of the entire world's physical economy since 1972. During the 1972-95 period to date, the percentile of the 50% total labor-force employed in producing what we have identi­ fied, above, as "energy of the system," has been successively 40% shrunken (see Figure 4), while the physical productivity of the labor still employed in these categories has also been suc- 30% �---,------,------,------.------.

1967 1970 1975 1 980 1985 1990

Mathematische Werke, Heinrich Weber, editor [New York: Dover Publi­ cations, Inc., 19531, pp. 272-287). Hence, the application of Riemann's 9 Figure 2). workto solve the problem of adequate representation of the function earlier cessively shrunken over this same interval (see defined by this writer, became known by the seemingly anomalous, but This has been true in the U.S.A.; it is also, if even more em- descriptively accurate "LaRouche-Riemann Method."

8. See Christopher White, "NAM's 'Renaissance' ofU.S. Industry: It Never 9. Ibid. See, also, Christopher White, "LaRouche's Ninth Economic Fore­ Happened," EIR, April 14, 1995. cast-One Year Later," EIR, July 7, 1995.

EIR July 28, 1995 Feature 23 FIGURE 2 FIGURE 4 Percent of actual workforce required to U.S. workforce-ratio of workers in overhead produce 1967-style market basket vs. productive employment, 1956-90 (percent of total labor force)

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% Machinery 0% O% �---.------'r------.------'------. 1956 1960 1963 1966 1970 1980 1990 1967 1970 1975 1980 1985 1990 • Productive employment II! Overhead employment

Sources: Historical Statistics of the United States, Bureau of the Census, 1975; Departmentof Labor, Occupational Employment Division, and Bureau FIGURE 3 of Labor Statistics, Monthly LaborReview, Departmentof Education, Financial profit ratio of the economy National Library of Education; Department of Health and Human Services, U.S. Bureau of Health Professions; American Nurses Association. (for unit value, see text)

0.2

FIGURE S 0.1 Falling value of U.S. merchandise trade as a percent of U.S. foreign exchange o transactions, 1966-90 90% -0.1 80%

70% -0.2 60%

-0.3 50%

40% 4 -O. 1----,------,------,------,-----� 30% 1967 1970 1975 1980 1985 1990 20%

10%

0% phatically, the case for the planet taken as a whole. 1966 1970 1977 1980 1990 Next, compare the physical-economic developments and trends with the corresponding arrays of monetary and finan­ Sources: Bank for Intemational Settlements surveys (1986, 1989, 1992); cial data. Begin with the simplest comparison: shifting pat­ U.S. Federal Reserve surveys(1 977, 1980, 1983); GATT. terns in the ratio of foreign trade to foreign-exchange turn­ over. After that, turn to the internal mechanisms of finance itself. October 1979 policy changes introducedby Federal Reserve In 1976, the import-exporttrade of the U. S. A. accounted Chairman Paul A. Vo1cker, by 1981, the trade factor in for­ for a reported 23% of the total daily U.S. foreign-exchange eign exchange turnoverhad dropped to about 5% (see Figure turnover.Following the disastrous initial impact of the lunatic 5). By 1992, under President George Bush, the figure had

24 Feature EIR July 28, 1995 dropped to less than 2%; for mad Margaret Thatcher's Britain, tute's influence succeeded in forciClg initial major cutbacks the figure had dropped to about half of 1 %, and the world in the V.S. science-driver (space) program, arguing that the average had declined to about 2 %. Today, taking into account success of space projects had inspired too many Americans . "off-balance-sheet" derivatives transactions, it is safe to say, with a deplorable liking for not only science, but also ratio­ without fear of exaggerating the case, that total world trade nality in general. 12 The same year, the first neo-Malthusian accounts for less than 1 % of daily world financialturnover. proposal for making population control an issue of V . S. for­ 1 In sum: The world's monetary and financialsystems have eign policy was introduced into the V. S. State Department. 3 been "de-coupled" from the real economy. Officially report­ During that period, Rep. George Bush (R-Tex.) earned the ed "economic growth" is a hoax, for two very obvious princi­ nickname of "Rubbers" for his zealous prosecution of the pal reasons . First, Gross National Product/Gross Domestic cause of birth control. 14 By 1967, Zbigniew Brzezinski con­ Product estimates, the figures used to report putative eco­ tributed his own "New Age" epiphany: his conversion from s nomic growth, are based on estimates of monetary Value Christianity to the "Third Wave,,,l toNorbert Wiene r's, Rob­ Added; therefore, liince the monetary-financial system has ert Theobald's, Alvin Toffler's, and looney Lord William ,, 1 been de-coupled from the real economy, GNP and GDP esti­ Rees-Mogg's neo-paganistl6 cult of "information theory. 1 mates , even if they were honestly compiled, have a corres­ These and related mass-brainwashing efforts prepared pondIng degree of irrelevance to any discussion of national the way for the crucial event of the 1964-72 transition to a economic health. Second, of course, governments and relat­ "New Age": the Aug. 15-16 decisions of the V.S. Nixon ed agencies lie-with greater abandon, each passing year­ administration, de-coupling the V. S. dollar fromthe Bretton 10 in every statistical analysis of this sort. Woods gold-reserve standard. That decision established, That de-coupling of money and financefrom real econo­ preemptively, a worldwide "floating exchange-rate" mone­ my is built into the changes in policy-shaping trends of the tary order, to replace the pro-industrial monetary system con- past 30 years: since the so-called "cultural paradigm-shift," which began as an orchestrated mass sociological phenome­ latter included prominent associates of MK-U1tra's Gregory Bateson, and non during 1964. The anti-science (anti-rationalist), "post­ his sometime-wife, Dame Margaret Mead. See Dope, Inc. (Washington, industrial ," and "neo-Malthusian" trends introduced into the D.C.: Executive Intelligence Review, 1992) for the linksamong MK-U1tra, fevered, sex-crazed, and pot-soaked brains of (admittedly et aI., and the circles which organized the mid- l960s mass-distribution of U.S.A. Margaret Mead and MK­ only) a majority among campus-based anti-war protesters LSD-25 to university campuses around the Ultra's Gregory Bateson, for example, were associates of BertrandRussell during 1964-72 are the interval, exemplary of this part of the and Robert M. Hutchins, in the 1938 launching, at the University ofPennsyl­ problem. IIFrom about 1966, the London Tavistock Insti- vania, of the Unification of the Sciences project,one of the principal anti­ science feeder conduits into the post-World WarII launching of the "New Age" counterculture. 10. On massive fraud in official economic-growth reports and quarterly forecasts by the Federal Reserve System and u.s. Department of Labor. see 12. See the London TavistockInstitute 's "Rappaport report" on the effects Lyndon H. LaRouche, Jr. 's Democratic presidential-nomination campaign of the U.S. space program. TV addressof Feb. 4, 1984: "Stopping the Worldwide Economic Collapse," 13. Anticipating U. S. Secretaryof State Henry A. Kissinger's overtlygeno­ published by The LaRouche Democratic Campaign in A Program For cidal policy-outline of 1974, National Security StudyMemorandum-lOG: America, 1985. Implications of Worldwide Population Growth for U.S. SecurIty and 11. The two most exemplary of intluential events of 1964, are the publishing Overseas Interests, Dec. 10, 1974 (unpublished: available in the National of RobertTheobald 's The Triple Revolution and the staging of the imported Archives, Washington, D.C.). "Beatles" on CBS's "Ed Sullivan Show." That book was, together with 14. See "Rubbers Goes to Congress," pp. 186-213 of Webster G. Tarpley Rachel Carson's fraudulent Silent Spring (New York: Houghton Mifflin, and Anton Chaitkin, George Bush: The Unauthorized Biography (Wash­ 1962), the openingsalvo in the effort to launch a mass-based anti-technology ington, D.C.: Executive Intelligence Review, 1992). movement under the rubric of "post-industrial society." (As Environmental 15. Cf. Zbigniew Brzezinski, Between TwoAges: America's Role In the Protection Agency head William Ruckelshaus admitted, in ordering the Technetronic Era, Prepared Under the Auspices of the Research Institute virtual banningof DDT, his decision to capitulate to Rachel Carson's dupes on Communist Affairs, Columbia University (New York: Viking Press, on this issue, was a political decision, in defiant disregard of the scientific . 1970). evidence supplied to his committee.) The Triple Revolution was a Ford Foundation-lubricated product of Bertrand Russell crony Robert M. Hutch­ 16. See Lord William Rees-Mogg, "Dogmatic Without Dogma: Many of ins's Center for the Study of Democratic Institutions. What is recognized as the New Forms of Religion Are Breaking Away from Hierarchies in tile the "rock" cult-fad spread since that 1964 appearance of the Beatles, was a Search for Authenticity," London Times, July 13, 1995. Rees-Mogg is a joint creation of satan-cultist Aleister Crowley's followers and the "wise devotee of Alvin Toftler's "Third Wave," and a leading backer of U.S. guy" financier interests of the recording and concert mafia. Even a decade House of Representatives Speaker Newt(on) Gingrich. He is alsoa vilely and a half earlier than 1964, through his fight against the irrationalist cult­ hateful enemy, together with Conrad Blact's London Telegraph,and the dogma of "information theory," this writer was already familiar with the American Spectator, of U.S. President Bill Clinton. establishment circles who played a key role in steering the anti-civilization 17. Lord Rees-Mogg has proposedthat 95% of the populationshould receive cultural-paradigm shiftof the 1960s and 1970s. In Boston, this featured Air no education at all. He has proposed that the educated 5%, creating Alvin Force- and RAND-funded projects at MIT's RLE; in the New York City Toftler's "information" in isolated places, suchas perhaps the islands of the Metropolitan area, this circle of plotters was typifiedby a series of seminars English Channel, will supply the future world all the needed wealth of a convened under the sponsorship of the Josiah Macy, Jr. Foundation. The global ''Third Wave" utopia.

EIR July 28, 1995 Feature 25 tracted at Bretton Woods. ditional pieces oflegislative lunacy, the St Germain-Gamand The original Bretton Woods agreements were formally Gramm-Rudman bills, sent the !U.S. economy on a reeling, broken at the Azores monetary conference of 1972. The "junk bond" orgy of financial loding and speCUlation, through I 1973-74 "oil-price shock," conducted by Britain's London 1982-87. The October 1987 st�k-market collapse signalled petrolem-marketing cartel, with assistance from U.S. Secre­ the coming end of the "junk bQnd" phase, and inaugurated tary of State (and British agent of influence) (Sir) Henry A. that "financialderivatives" bub�le which has made the early Kissinger, 18 either wrecked or severely damaged the industri­ doom of the existing monetary hstem inevitable. al economies of the world, including that of the U.S.A. The To complete the sketch, showing why the early collapse effects of the London "oil-price shock" caper, led to the of the system, during the comi� months, is now inevitable, Rambouillet monetary conference of 1975, at which the loot­ examine the ironies of the derivlitivesbubble itself. ing of economies through "floating exchange-rate" specula­ At the core, what is callea, euphemistically, "invest­ tion was apotheosized as an immortal god of iMF Olympus. ment" in the financial-derivativesform of "futures," is some­ The next decisive development leading into the presently what less reputable than gambling at the tables of a Monte onrushing collapse, occurred in 1979. In spring of that year, Carlo or Las Vegas casino. Itl has been fairly described, while campaigningl9 for nomination as the new U.S. Federal repeatedly, by Maurice Allais • a casino economy. 20 On at Reserve chairman, Paul A. Volcker announced that he con­ least two public occasions, pronlinentJapanese officials have sidered "controlled disintegration of the [world] economy" described "derivatives" as "financial AIDS" in the world an acceptable policy for an incoming Fed chairman. Those monetary and financial system. �I I have oftenrefere nced the words, and Volcker's later practice as Fed chairman,echoed fact that "derivatives" in the financial-economic realm is the proposals detailed by Fred Hirsch in the New York Coun­ analogous to the model of cancer presented in one of my oid cil on Foreign Relations 1975-76 Project 1980s outline of textbooks, that of the mathemjltical biophysicist Nicholas . policies being specified for the incoming administration of Rashevsky 22 I President Jimmy Carter; Carter appointees Cyrus Vance and Typical is the case of the Igamble which tumbled the Zbigniew Brzezinski had been key project coordinators for famous Lord Shelburne' s Barin�s bank into bankruptcyearli­ that CFR policy-planning. Beginning October 1979, Fed er this year. It happened at Bat1ings branch office in Singa­ Chairman Volcker applied Hirsch's "controlled disintegra­ pore, currently one of the world 1s leading centers of financial tion of the economy" with full and sudden force: zooming prostitution. Their man there placed multibillion-dollar prime interest-rates into the stratosphere of usury, way above bets-not investments, but out-and-out crap-shoot-style side­ the rate of profit available in any known honest form of bets-onthe short-term outcor¢ of shiftsin both the Tokyo business enterprise. Since the ruinous effects of the 1979-83 stock and bond markets. It was! an enterprise steeped in the implementation of Volcker's measures, there has been an fiscal prudence of a New York City numbers-racket runner. increasing rate of net flow of financial and real (physical) Barings lost the bet on the numljlers, and tumbled into bank­ capital, out of the productive sector, into the realm of pure ruptcy as a result of that, plus other gambling losses. Deriva­ financierspeculati on. tives speculation is gambling, o� a thin margin, often risking ' The Volcker measures, together with two disastrous, ad- large amounts of other people's financialassets . The Seven­ teenth Century's John-Law-sty� South Sea and Mississippi bubbles were paragons of fiscalponservativ ism, by contrast. 18. There is a continuing, hysterically lying effort from high-level mass For purposes of practice, the most notable difference news-media and other circles, to deny the conclusive evidence, that former between today's wild-eyed Singapore, City of London, or U.S. Secretary of State Henry Kissinger has been, officially, an agent of Wall Street Yuppie, hedging demvatives bets, and the Seven­ influence of the British foreign-intelligence service during more than 50 I years to date, since early days in Wilton Park training, at Harvard. See Henry A. Kissinger, "Reflections on a Partnership: British and American Attitudes to Postwar Foreign Policy," official transcript of his keynote ad­ 20. Cf. Maurice Allais, loc. cit. dress delivered on the occasion of the 200th anniversary of the founding of 21. In 1990, former Japan Finance Mi"ster Ryutaro Hashimoto (currently the British foreign service by Jeremy Bentham, delivered at Chatham House trade minister) described as "financial +IOS" the policies which President (Royal Institute for International Affairs), May 10, 1982 (Washington, Bush and Mrs. Thatcher were urging, �ot only for Japan, but for all Asian D.C.: Center for Strategic and International Studies, 1982): "In my White countries. On June 19, 1995, a Japan sotteeinformed Executive Intelligence House incarnation then [1969-77], I kept the British Foreign Office better Review News Service, Inc., that "seeking a cure for 'financial AIDS' was informed and more closely engaged than I did the American State Depart­ on the agenda in June 18-19 talks betw�en Japan Prime Minister Tomiichi ment. . . ." The Harvard Wilton Park unit under British agent of influence Murayama and his cabinet, and President Jacques Chirac and European William Yandell Elliot, Kissinger's trainer, is a subsidiary of British foreign Union officials." I intelligence's Chatham House. For an elaboration of the treasonous mind­ 22. Nicholas Rashevsky, Mathematicld Biophysics (Chicago: University set which Kissinger acquired at Harvard's Wilton Park unit, see Henry A. of Chicago, 1938). The featuring of thi$ usage of "financialcancer" by my Kissinger, A World Restored: Metternich, Casdereagh and the Prob­ friend Jacques Cheminade, in his 1995 lcampaign for election as President lems of Peace 1812-1822 (Boston: Houghton Mifflin, 1957). of France, caused an epoch-making outburst of lunacy from leading Paris 19. In Britain, naturally . media.

26 Feature ElK July 28, 1995 The Frankfurt money exchange. The main difference between today's Yuppie brokers and derivatives traders, and the Seventeenth­ Centuryfinancial bubblers, is that the latter did not have personal computers and high-speed, round-the­ world, round-the-clock communications links. teenth Century financial bubblers, is that John Law's ac­ wealth taken out of real consumption and the production quaintances did not have modem personal computers and cycle. To determine why and how a bubble will pop, and to high-speed, round-the-world, round-the-clock communica­ estimate when it will probably pop, one must focus upon the tions links. The application of a blend of John Von Neu­ function of these combined, interacting three mechanisms. mann's Theory of Games23 and Chaos Theory24 to these Since the typical layman has no notion of the meaning or modes of calculation and communication, permits a rate of functional significance of the term, "fictitious capital," two speculative chain-reactions, subsuming impulses momen­ clarifying illustrations are supplied here: first, the treatment tarily approaching near-light-speeds. This not only permits, of a simplified representation of what occurs as speculative but fosters rates of speculative inflation never before even appreciations (nominal "capital gains") in secondary stock­ imagined. transactions, and, second, a similar case in speculation in There are three most essential "mechanisms" of the re­ New York slum-rental real estate during the 1960s. To under­ sulting, worldwide financial bubble: 1) The numerically stand how "derivatives" speculation balloons, and then, inev­ largest factor involved is the magnitude of the "notional" itably, collapses in a sudden, "nuclear-like" implosion, it is (fictitious) capital values, which are treated as the equivalent sufficient to carry the ordinary image of purely parasitical of money-capital for the purposes of the derivatives form of speculation, as seen in secondary stock-markets and slum futures speculation; 2) the second largest factor is the flowof rental real-estate properties, into that domain of which is the monetary stimulus into the maelstrom of financial specula­ "derivatives" form of numbers-racketeering. tion, in derivatives and related categories; 3) the speculative The first example: A man has 100 shares of common bubble's root-dependency upon an income-stream of real stock in Widgets, Inc., which he has purchased from that company's representative for $10 a share: $1,000. At that time, the stock's expected annual dividend-income is $5 per 23. John Von Neumann and Oskar Morgenstern, The Theory of Games share. Meanwhile, a subsequent fluctuation in the prevailing and Economic Behavior, 3rd edition (Princeton, N.J.: Princeton University Press, 1953). interest increases the relative financial advantage in a finan­ 24. So-called "chaos theory" is a fanciful piece of pseudoscience-fiction cial speculator's holding of that $5 yield per share. As a derived from a misunderstanding of the flawed work on infinite series by result, traders are willing to pay $102 a share, instead of Newton, Newton-devotees Leonhard Euler, Augustin Cauchy, et al. Start­ $100, for a share of Widget common. The $2 gain in price is ing from adoption of Newton's famous Latin motto, '"et Hypotheses non purely fictitious, purely speculative, rather than the result of jingo," the remarkable assumption is made, that the mathematical disconti­ some action related to investment within the production cycle nuity axiomatically inhering in the inconsistency among mutually-exclusive mathematical-physical theorem-lattices can be bridged "at infinity." Thus, as such. The speculative gain of $2 a share is, as such, a did Cauchy set out to circumcise Leibniz's calculus, and, in his blundering purely financial phenomenon, not an economic one. enthusiasm, castrated it, instead. Continuing the same example, go to the next step in the

EIR July 28, 1995 Feature 27 hierarchy of speculation. Let a trading company be incorpo­ general is based. Financial derivatives represent the shifting rated whose sole source of income is fictitious capital gains of this sort of speculation from ,investment to pure betting, of the type represented by the indicated $2 gain in Widget sometimes called "hedging." The point of these two, admit­ common stock. Let this company issue stock. Paid-in capital tedly much simplified illustratiops, is to identify the role of put to one side, the remaining assets which secure the value unreal, i.e., fictitiousvalu es, in feeding a bubble: as Exhibit of that latter stock are already purely fictitious, rather than A feeds Exhibit B, which feeds! Exhibit C. What gives the real-economic assets. Let the price of a share of that stock be financialbubble its specificqual �y is that without the growth $100,and let the expected dividend be $5 per year. Fluctua­ of successive tiers of pure spec�lation (fictitious apprecia­ tions in the value of that stock now represent fictitiousvalues tion), the growth of the bubble c�mes to a standstill. based upon appreciations, or depreciations of what are al­ At the point of standstill, inrestors are in a scramble to ready purely fictitiousvalu es. sell out from under the collapsq of the bubble as a whole; The second example, the case of the Manhattan slum­ the scramble becomes a panic. Consider a panic operating rental property, affords a more intimate view of the essential globally, at computer speeds, alpng pathways of contempo­ morbidity of fictitiousgains in general. During the relevant rary cable and satellite commuqications: The panic zooms, period cited, the rule-of-thumb market valuation of a Man­ hyperbolically, into a "reversed�leverage" analog of a ther­ hattan rental property was calculated as a mutiple of the monuclear explosion: an implosibn which causes the disinte­ expected annual rental income. Thus, a landlord, by using gration of virtually every financialand central-banking mon­ various devices to increase the rental rate per square foot, etary institution of the planet, w�thin a lapsed time of hours, could increase the nominal market value of a savagely deteri­ 48 to 72 hours at most. orating property. This was characteristicof slum rental prop­ The maintenance of the grotth of financial speculation erties in New York City during that time. 25 requires an inflow of primary �onetary aggregates (e.g., The intrinsic value of the building used as an investment Federal Reserve issues of U .S. �ollars) into the network of in slum rental property was almost an irrelevance, except as financialspeculation . The multiplier-effectembedded within the physical structure provided a means for parking a relati ve­ the tiered structure of the speculative bubble demands such Iy largenumber of rent-paying families on a city lot no larger money in quantities which are Qnly a fraction of the rate at than the standard plot allowed, during the 1920s or 1930s, which new fictitious aggregates: are being generated within for an urban single or two-family occupancy in a typical the bubble, but the inflowof that!currency-issue is crucial for "working-class residential district" in a city such as Lynn, the continued existence of the bubble-process as a whole. Massachusetts. Under the indicated slum-rental investment That leverage is the second of the principal mechanisms to arrangements for Manhattan, the greater part of the paid-in be considered. rental income represented nothing other than "feudal" The inflow of currency into the bubble generates a tax ground-rent, the latter a purely fictitious sort of economic upon the real economy. In part, this is literally a "tax," ex­ value. Thus, the physical purchasing-power of the capital­ pressed in the form of governrrient debt-service payments ized value of the slum could be zooming skyward, while against the growing mass of debt used by the central banks the physical value of the building itself were falling rapidly to generate the flow of money into the bubble. Since the toward zilch. The fluctuations in the financial value of the bubble is leveraged against outflows of real value from the investment in the rental propertyhad been "de-coupled" from productive cycle, among other sources, and since the mecha­ the economic value of building and its use. nism of the bubble is leveraged borrowing, the growth of the Thus, companies which speculated in fictitious gains bubble is reflected in accumulat¢d financial charges embed­ from such investments could capitalize their fictitiousearn­ ded in every pore of the society�s economic life. This is the ings (capital gains) from the turnover in a number of such third of the principal mechanismsto be considered. slum-investments, creating what we shall label Exhibit A. In summary, the functional �nterrelationship among the Let the profit of operations involving Exhibit A be labelled three mechanisms, is this. The i increase of the size of the Exhibit B. This poses the question: What would a financial bubble increases the rate of growth of fictitious accumula­ speculator pay to own the right to collect the expectedannual tions required to prevent the bubble from shifting into a re- , dividend labelled Exhibit B? Suppose that prospectivebuyer versed-leverage phase. The incr¢ase of the rate of growthof expects a 10% financial return annually; in that case, the fictitiousaccumulations required, obliges the central banking ownership of the right to collect Exhibit B annually would systems to feed increased money-flows into the bubble's be approximately ten times the price of Exhibit B: creating speculative base, otherwise, the ,fictitious accumulations are Exhibit C. slowed, and the bubble as a wholethen shifts into a reversed­ These two examples introduce the principled features of leverage phase. The increase ofithe accumulated debt-capi­ the kind of process upon which all financial speculation in talization used to fund the inflows of currency into the bub­ ble's speCUlative base, causes an increased tax (of various 25. See Paul Gallagher, "How New York's Slumlords Created a Financial sorts) upon the economy which the central banking system is Bubble," New Federalist, Feb. 13, 1995. looting to supportthe speculative base of the bubble.

28 Feature EIR July 28, 1995 FIGURE 6 FIGURE S Growth of financial derivatives worldwide, The better it grows ... 1986-94 the more surely it's doomed $) 1967 $1 .00 (notional principal amount outstanding at year end. trillions indexed to =

$45 $5

40 $4

35 $3 30 $2 25 $1 20 $O �--'--'r--.---'--��.---.­ 15

10 $-1

5 $-2

o -LJImml--'WW'---.J_L- 1986 1987 1988 1989 1990 $-3 1950 1955 1960 1965 1970 1975 1980 1985 1990

Source: Bank lor Intemational Settlements. Sources: Federal Reserve Flow of Funds. Commerce Dept. Survey of Current Business

halved. At present, the decline is accelerating significantly. FIGURE 7 2) Over the interval 1976-92, the percentile of U.S. for­ U.S. banks are addicted to derivatives eign-exchange turnover represented by import-export trade (trillions $) had fallen from 23% to about 2%. Today, taking into account both reported and estimated rates of off-balance-sheet deriva­ $25 tives speculation, the figure is fairly estimated to have fallen to the vicinity of I % or less. Derivatives III 3) Meanwhile, especially since 1987, the rate of daily 20 • Assets financial turnover on markets has zoomed; since 1991, the • Loans ratio of the curve of rising volume of financial aggregates to • Equity rates of per-capita physical-economic output and input, has 15 been indisputably hyperbolically upward. Those three combined conditions define a rapid conver­ gence upon an absolute functional discontinuity: not merely 10 a financialcolla pse, but also a potential, literal disintegration of most of the world's monetary and financial institutions. The only alternative to these calamities would be that governments, particularly the government of the U. S .A., act 5 to put the entire bubbling system into government-supervised financial-bankruptcy reorganization: writing off the claims by fictitious capital, while assuring those continued flows of o pensions, withdrawals from modest personal savings, and 1990 1991 1992 1993 1994 so on, needed for social, political and physical-economic stability. Those emergency measureswould not besufficient Source: Federal Deposit Insurance Corp. by themselves, but they are no less indispensable;bankrupt­ cy, "Chapter II" -sty Ie, is the precondition for success of those governmental measures needed to organize an immedi­ Consider the charts and graphs reflecting the statistical ate economic recovery . studies of Christopher White, John Hoefle, Anthony Wik­ Under the U.S. Federal Constitution of 1787-89, the rent. et al. in that light (Figures6- 8). means for launching economic recovery are elementary. I) Over the interval from the base reference period of Within the same 48-hour interval, the President ofthe U.S.A. 1967-70, until 1990-95 , the physical-economic consumption declares the Federal Reserve System as a whole to be bank­ and output of the U.S. economy. per capita, have nearly rupt, and places it under the equivalent of "Chapter II" fi-

EIR July 28, 1995 Feature 29 nancial reorganization. On the same day, the Fed is ordered forms of cultural changes, improvements in demographic to cease all new issues of Federal Reserve notes; the same characteristics of households, and productivity per capita, day, an emergency bill is sent to Congress , under provisions changes brought about through the discovery of new scien­ of Article I, creating several trillions of dollars of U.S. Trea­ tific and related types of princiJ>les , a kind of creative-mental sury currency-notes for lending. The loans areissued through behavior which exists only in the member of the human a newly created (by act of Congress) National Bank, mod­ species . This latter set of faets demonstrates , that human elled upon the Washington-Hamilton Bank of the United behavioris intrinsically not-entro pic, neither linear, nor sim­ ,, States. Loans are issued, at between 1 % and 2% per annum, ply "non-linear. 27 in the mode of construction progress-payment tranches , to Thus , the monetary-financial system of accounting is a worthy infrastructure projects operating under authority of linear system, which cannot map the characteristic events of emergency legislation, to vendors to those projects, and to the not-entropic process which a physical economy repre­ other designated high-priority purposes . Success is counted sents. The two systems are axiomatically mutually exclusive, in the number of new productive work-places filled, and in with the qualification that a nc;n-entropic system can always the ration of both the unemployed and the uselessly employed represent a linear one, but a linear one can never repreSent a (such as financial-house employees) transferred into produc­ not-entropic, or even a merely non-linear one. The irony of tive work-places. the matter is, that during the past 500 years of (globally­ During the same 48 hours the U.S. governmentis launch­ extended) modem Europeanc�vilization , the system of agro­ ing those recovery measures at home, the President of the industrial economy which don/.inated the world from the ear­ U. S. A. invites the heads of responsible and willing nation­ ly Eighteenth Century, through the time of PresidentJohn F. states to appear in Washington, D.C. for emergency sessions Kennedy's assassination, has �n a system based upon the establishing both 1) a new international monetary order, re­ mutual interaction of two axi9matically distinct processes, placing the IMF, and 2) guidelines for a new set of bilateral the financial system and the eoonomic process . and multilateral tariff and trade agreements; a set of protec­ For economic analysis, this difference signifies that all tionist financial, monetary , and economic agreements re­ of the real profit (sometimes termed the "macroeconomic ftecting the common vital interests of sovereign nation-states profit") of the real economy, the physical economy, is gener­ engaged in a general recovery-effort. ated through creative (not-entropic) impulses such as techno­ One concluding observation is to be added here, before logical progress from within the real economy . The financial turning to address directly the three questions posed at the system as such can generate no such profit; it can merely outset. appropriate wealth from the real economy . This poses the The key to understanding the causes for the imminent special situation, in which the real economy generates no disintegration of the present global monetary and financial "macroeconomic profit," or is even operating at a physical­ system-the IMF system-is to recognize the crucial differ­ economic loss, in which the financial system appears to be ence between a financial system and a real economy upon enjoying a high degree of profitability, if but temporarily. which a financial system is superimposed. For that reason, This anomalous discrepancy between realand financialprofit the solution to the problems of economic analysis , which we is sometimes termed "primitive accumulation": the looting are next to consider here, depends upon recognizing several of the real economy , and nat\lfe itself: a purely parasitical considerations which areaxiomatic preconditions forcompe­ role of the monetary and financialsystem. tence in economic science. Several among those axiomatic Until 1963, the two interacting, axiomatically-distinct matters are treated in their appropriate place, below; one must be considered at this juncture. The systems of money, financial accounting, and John 27. Too frequently, a streakof scientifipilliteracy found even among ostensi­ ,, bly educated professionals, confuses "not-entropic" with "non-linear." As Von Neumann's "systems analysis 26 are each and all linear noted earlier here, those physical p ' sses, including physical economies, systems. They can represent only those kinds of relations � which arenot-entr opic, can be repre ted mathematically only in the man­ which are themselves approximately of a linear form . Using ner suggested by Cantor's theorem 0 the enumerability of the density of the language of the undergraduate thermodynamics class­ mathematical discontinuities within an arbitarily selected interval of action. room, they can representonly systems which areeither actu­ The advances in technology, as in c;ulture generally, which render one culture superiorto another, reflectcumulative, valid discoveries (e. g. , math­ ally entropic, or virtually so. ematical discontinuities in previously established theorem-Iattices)--in Contrast, the rise of the human population from the sever­ physical science and in Classical forms of culture-which constitute in­ al millions maximum possible for a variety of higher ape: to creases in the numberof historically accumulated discontinuities transmitted several hundredmillions by the mid-Fourteenth Century , and to an interval of thought-directed practice of today's member of society. to more than 5 billions presently. This is the result of willful Those who blunder into using "non-I�ear" to signify "not-entropic," thus show themselves illiterate respecting the dominant, continuing issue of scientific method throughout the present century: the conflict between leo­ 26. Von Neumann, op. cit. More descriptivethan "systems analysis," is the pold Kronecker, James Clerk Maxwell, and Rayleigh, on the one side, and tennwhich Von Neumann himself employed in introducing his economics, Carl F. Gauss, Wilhelm Weber, Bernhard Riemann, Karl Weierstrass, and during the late 1930s: systems of simultaneous linear inequalities. Georg Cantor, on the other.

30 Feature ElK July 28, 1995 processes interacted in a kind of symbiosis: Within the indus­ concentration of the world's leaders in science andtecbnoJo,­ �alized nations, finance, usually, contented itself to taking gy at the beginning of the Nine�nth Century, Gaspard no more than a share of the "macroeconomic" profitgenerat­ Monge's 1794-1814 Ecole Polytecqnique. 29 Newton's meth­ ed by the agro-industrial economic process as a whole. The od was exposed as scientificallyilli �rate by the second most introductionof the cult of "post-industrial society," together brilliant scientificmind of the NineteenthCentury (second to 30 wiUt the degeneration of Bretton Woods into a parasitical his patron, Carl F. Gauss), Bernhatd Riemann. Newto)J's form of "floating exchange-rate" monetary system, broke notions of cause-effect were impU�itly destroyed by tbe the symbiosis: Finance was transformed from a relatively greatest discovery of scientific prin�iple which has occwred benign, to a malignant form of financial "cancer." during the Twentieth Century, MaxjPlanck's developmentof

2. Adam.Smith , sociology, Leory E. Loemker, Gottfried WUhelm Ljeibniz: PbiIoIopIdc8l ...... and Letters, Vol. U (Chicago: University'' of Chicago Press, 19S6),. pp. and Newton 1095-1169 . 29. In the aftermath of Leonardo da Vinci'� 1506 ftight fromItaly, to tile During the 1940s and 1950s, since the popularization of patronage of France's Charles d'Amboise on the Loire, France emerged the pseudo-sciencecults of "operations research," "informa­ quickly as the European nation-state which, "y the earlySeven teenthCentu­ tion theory," "econometrics," and "systems analysis," the ry , was most advanced in science and technology. France continuCdto enjoy that superiority over other nations until the pbSt-1814 BourbonRestoration. profession has been dominated by charlatans economics The figures of Gaspard Desargues, Pierre Fermat, and Blaise Pascal, and whose abracadabra is expressed in densely-packed mathe­ the great Academie des Sciences founded andpatronized by France's Minis­ matical and quasi-mathematical symbols, such as Sigmas, ter Jean-Baptiste Colbert, typified this during the lifetime of Leibniz. The Integral signs, and so on, at the classroom blackboard, or 1794- 1814 version of the Ecole Polytechnique, under the leadership of upon the printed page. Some of this twaddle has limited, Gaspard Monge and Adrien M. Legendre, is a high point in this scientific heritage. From 1815 onward, under the pro-Newtonian leadership of tile practical engineering uses; it is like a police-detective's Marquis de LaPlace and Augustin Cauchy, the . Ecole Polyteclmique .. snitch: The detective might use one, with approbation from French national academy of science degen�rated, with a few e1'CCPl!OII/!•. his superiors; but he should be fired from the force, if he into what became, predominantly, a swamp Qfpositivism.By " approx�ly married it. Similarly, the limited, circumscribed usefulness 1827, with the establishment of Crelle's Journai (Journal tnt;. unci of some of the engineering knick-knacks acknowledged, the angewandte Mathematik), the Germany of Carl F. Gauss, AtexanderYOn" Humboldt, Lejeune Dirichlet, and 8ernhard Riemann, prevailing fact of the matter is, that to pretend that that sort , later, assumed a position of world leadership in science, which Germany maintained until of mathematics proves anything of principled importance for the aftermath of World War I. Ridicule of the silly Ren� Descartes and of economic science, is spewing buncombe. the sillier Isaac Newton, was standard fare among those world leadIm in Why have almost all the economics professionals failed, science occupying the foremost positions, as fo llowers ofGodfriMLeibniz, . " during the past 30 years , to recognize that current policy­ within the Ecole Poly technique. trends were generating a general collapse of the existing 30. See the concluding section from Riemann'sFi-agmente p� monetary and financialsystems? Why did all those supposed en Inhalts, in Bernhard Riemann's GesammelteMa tlle...... ·Werle (New York: Dover Publications, Inc . ,1953), pp. 524-525. Note the fullc.wr experts on economic haberdashery fail to recognize, that the ing excerpts from page 525: Emperor's new suit of clothes left him stark naked? A very "Das Wort Hypothese hat jetzt eine etwas andere Bedeutung ala bei large part of the answer to that question, is that, like today' s Newton . Man pfl egt jetzt unter Hypothese Alles zu den Erscheinungen Hin· credulous layman, most professionals, too, are devotees of zugedachte zu verstehen. the delusion, that science equals statistics, the delusion that "Newton war weit entfernt von dem ungereimten Gedanlcen, ala IciJnne die Erkliirung der Erscheinungen durch AbJllraction gewonnen werden . "generally accepted university-classroom" sorts of mathe­ "Newton: Et haec de deo; de quo utiqUf! ex phaenomenis disserere ad matics are the standard of proof for science. philosophiam experimentalem pertinet. RtUionem vero harum Gravitotis There are other reasons for this prevailing ignorance of propietatum ex phaenomenis nondum potu; deducere, et Hypotheses non both the professionals and most ordinary citizens; but, as we jingo. Quicquid enim ex Phaenomenis non deducitur, Hypothesis vocandtl shall now proceed to demonstrate, those other reasons reflect est. "Arago, Oeuvres completes T.3. 505: the same incompetent assumptions which permeate profes­ "Une fo is, une seule fo is Laplace s' e�a dans la region des. conjec- sional ignorance of the problems of generally accepted class­ tures. Sa conception ne fu t alors rien rrwins qu ' une cosrrwgonie. . room mathematics. Let the case of Isaac Newton serve as the "Laplace auf Napoleon's Frage, weshplb in seiner Mec[anique] cl­ starting-pointfor this line of investigation. II esteJ der Name Gottes nicht vorkomme: Sire, je n' avais pas hesoin decene The incompetence of Isaac Newton's variety of mathe­ hypothese . " In the same loc:ltion, Riemann launches his attack against the arbitrari· matical physics was exposed as incompetent by the greatest ness of the assumption that gravitation mU$! be mathematically equivalent scientificmind of the past three and a half centuries, Gottfried to inertia: Leibniz.28 It was seen as an object for contempt by the largest "Die Unterscheidung, welche Newton zwischen Bewegungsgesetze" , oder Axiomen und Hypothesen macht, scheint mir nieht Iulltbar. Das Trilg­ 28. The most widely known among Leibniz's descriptions of the crucial heitsgesetz ist die Hypothese: Wenn ein materieller Punkt allein in der Welt incompetencies within the work of Isaac Newton are from the so-called vorhanden ware und sich im Raum mit einer hestimmten Geschwindigkeit Leibniz-Clarke correspondence. A convenient reference on this is found in bewegte. so wiirde er diese Geschwindigkeit bestandig helullten."

EIR July 28, 1995 Feature 31 Newts of a fe ather: Isaac Newton (left) and Speaker of the U.S. House of Representatives Newt Gingrich. Thefact that Gingrich's backers are utterly ignorant about Newton's views on mathematics, does not let them off the hookfor supporting the ideological garbage of ''free trade."

the quantum of action. 31 Otherwise, a minority among nota­ port "free trade" today, have no formal education in ble professionals has staked its reputations upon exposing mathematics, and would notrecognize the differences one or more among the additional incompetencies in the between Leibniz and New.on? In other words, how �wtonian scheme. 32 Perhaps, the event which the Newtoni­ does your argument about imathematics apply to the ans found the most embarrassing of all , occurred when the vast majority among those !lcience-illiterates who vot­ economist JQhn Maynard Keynes was entrusted with examin­ ed for Newt Gingrich's "Contract with America" in the ing the cqntents of the chest of Newton's private papers; 1994 elections? ynes showed that Newton's work had been chieflykook­ ery in. the field of black magic, with virtually nothing of To go directly to the point of the question: The spread of redeemably scientific interest among all of those papers. 33 ignorance and superstition is ioot confined to graduates of Those. fallacies in Newton's mathematics which were at­ today's institutions of higher education. Consider a real-life tacked by Leibniz, by the circles of the Ecole Polytechnique' s anecdote, one which should suggest to virtually any reader Gaspard Monge, and by Riemann, are also the key to what some relevant evidence already at his or her disposal, ad­ makes today's generally accepted classroom "mathematical dressing the referenced objection. ecoo9mics')vor,se tl}an worthlessas a way of representing the During 1992, the writer waSacquainted with a number of way in which economies actually do, or should function. persons who were engaged in studying how to make a living, At this point, we imagine we can see someone in our using modest investable resourCes, for speculating in futures. readership audience raising a finger to interrupt this line of That was at a time that "finanCial derivatives" had begun to argument. Let us hear his objection. What he has to say might capture relatively widespread popular attention, at about the be expressed as the following quotable argument: time this speculative frenzy be$an to assume the sociological characteristics of the Seventeenth-Century tulip bubble. "You I think I see where you are going with this. Assume, see: you can't lose," was the remark that first drewthe writer's for sake of argument, that your criticisms of Newton attention to the kind ofimpact the derivatives bubble was mak­ and the mathematical economists are correct. How do ing within one stratum of the lpeople in his immediate sur­ you answer the objection, that most people who sup- roundings: very ordinary people, of the specific sort one would classify as "typical small businessmen." 31. For an historical account of Planck's discovery and the attack upon "You can't lose"? The relevant reaction to that, is the Planck by the followers ofEmst Mach, BertrandRuss ell, et al. , see Caroline time-worn U.S. popular proverb which runs: "Famous last Hartman, "A Tragedy of Science: The Life of Max Planck," 21st Century words." The stratum referenced were not uneducated, but Science & Technology, Summer 1995. were, nonetheless, laymen in the sense implied by the conjec­ 32. Alfred O'Rahilly, Electromagnetic Theory, A Critical Examination tured query we are addressing here. Readers can recognize of Fundamentals (New York: Dover Publications, Inc., 1938). Originally other expressions of the same $ocial phenomenon in persons published as Electromagnetics, 1938. much more poorly educated than the subjects ofthe anecdote 33. See John M. Keynes, "Newton the Man," Newton Tercentenary Cele­ bration (Cambridge, U.K.: Cambridge University Press, 1947), pp. 27-24. just referenced. Keynes deScribes Isaac Newton as, "the last of the magicians, the lastof the In the United States, as elsewhere, it is difficultto con­ Baylonians and Sumerians ...wholly devoid of scientificvalue ." vince most members of Wall Street Yuppie generations, that

32 Feature EIR July 28, 1995 the mere act of obtaining the combination to a neighbor's their body-temperature," for just thatreas on, its advantage safe, does not earnone the right to possess the contents of for our purposes here, is that it has, correspondingly, few that safe: "I did the work; it's mine!" The real-life persons of surface features which might distract our attention from the the referenced anecdote were not concerned with whether bare axiomatic assumptions which underlie it. the betting-scheme they were studying contributed anything At this point, our response to the objection beingconsid­ useful to the economy, or served any other morally signifi­ ered, assumes the form: Professionals and science illiterates cant purpose, excepting the wishful prospect of their own alike accept the putative authority of generally accepted aca­ enrichment. Even the notion that their gain would be some­ demic economics dogmas. They do so, not because they one else's loss, was refused by most of those students of this have learned the academic litanies involved; the dogmas are scheme; most believed that "Don't you see: No one loses." popular because they were designed to appeal to the kind of "No one loses": the remembered voice of every dupe gulled ignorant assumptions which are embedded in the present into joining a "chain-letter" scheme.34 form of popular culture. The widespread acceptance of the Examine the "No one loses" delusion through the eyes two axiomatic assumptions identified immediately above, of a modem Socrates, and the appropriate response to the shows how deep-rooted features of generally accepted popu­ objector's proposition emerges. What are the axiomatic qual­ lar belief, generate the kinds of suggestibilityupon which the ities of assumption which underlie the controlling delusion economist snakes play, to hypnotize thepopulist chickens. of the participantin a "chain-letter" scheme such as the "fi­ It will save time, if we let the completion of our answer to nancial derivatives" racket?35 the considered objection flow fromco ntinuing the historical The most conspicuous of the axiomatic assumptions un­ account on which we were embarked at the point of that derlying the referenced type of social phenomenon are two: interruption. first,the nominalist's metaphysical delusion, that money, by The crucial historical fact is, that the popularassumptions virtueof having the apparent power to command wealth, is on economics matters are identical to the false axiomatic as­ wealth; the second, a delusion which Mrs. Joan Robinson sumptions employed, fromthe beginning of the Seventeenth has identifiedas characteristicof all of the professional output Century, to found what became today's generally accepted of Prof. Milton Friedman, post hoc ergo propter hoc. 36 Al­ university-classroom mathematics. All those forms of rela­ though Friedman's doctrine is tailored for the opinions of tively popular, contemporary universitys ocial doctrine which people of whom it is often said, that "their I.Q. is lower than are termed variously empiricist, positivist, or behaviorist,are derived directly from the same axiomatically flawed ideas of c Newton and his follow­ 34. Typical cases of this "No one loses" sort of mass-hysteria. in addition mathematics met in the work of Isaa to the Seventeenth-Century tulip bubble in the Netherlands, include the ers. All of the trends in public and higher education popular­ Eighteenth-Century "South Sea Island" and "Mississippi" bubbles of John ized in the U. S. during the Twentieth Century, all Twentieth­ Law's time, and, during the recent half-century, the "Pyramid Club" mass­ Century innovations in trends in art and mass entertainment, hysteria of 1949, and compulsive speculator AnthonyDeAng elis's 1963-64 all new trends in notions of mental health, all new trends in "salad-oil bubble." See Norman C. Miller, The Great Salad Oil Swindle generally accepted (Baltimore, Md.: Penguin Books, Inc., 1966) . teaching and practice of religion, and all practice of so-called "news reporting" in mass media, are 35. A subsidiary question might be added: Why are present generations of young adults, for example, more susceptible to such delusions than their products of currents in social theoryshaped by what English­ parents' or grandparents' generations? language tradition usually identifies as "Newtonian" ap­ 36. See Joan Robinson, Economic Heresies (New York: Basic Books, proaches to mathematical physics. Inc., 1971), pp. 86-87; e.g., " ...the modern Chicagoans, led by Milton Newton's degenerated parodies of earlier discoveries in Friedman. A great partof their work consists in historical investigations of mathematics,37 and forms of social theory cohering with the relationshipbetween changes in the supply of money and national income them, were designed in conformity with blind faith in illiter­ in the United States. The correlations to be explained could be set out in nature, quantity theory terms if the equation were read right-handed ....But the ate assumptions respecting the nature of man, and tradition of Chicago consists in reading the equation from left to right. Then cause-effect. Those assumptions were already somewhat the observed relations are interpreted without any hypothesis at all except commonplace then, and are veneratedi n most universities of post hoc ergo propter hoc. There is an unearthly, mystical element in the world today. Friedman's thought. The mere existence of a stock of money somehow Modem empiricist economics dogma is rooted in an apol- promotes expenditure.. .." See, also: Lyndon H. LaRouche , JT. and David P. Goldman, The Ugly Truth About Milton Friedman (New York: New Benjamin Franklin House, 1980). The "dust jacket" of the latter text quotes 37. Take, for example, the fraudulent teaching, that Isaac Newton discov­ economist Arthur Laffer: "You want to prove that Milton Friedman is a ered "universal gravitation." It is readily shown (see, Lyndon H. LaRouche, fascist? It's easy. Quote him." Following Laffer's advice, the publisher JT. , The Science of Christian Economy [Washington, D.C.: Schiller Insti­ cites Friedman's Studies in the Quantity Theory of Money (Chicago: tute, 1991]; see Chapter VII, Note 8, pp. 471-473), that Newton's formula­ University of Chicago Press, 1956): "The object of such controls (on wages, tion for gravitation is derived algebraically from the same famous ThirdLaw prices, and credit) is the restriction of spending on the part of individuals. of astrophysics discovered by Johannes Kepler, and employed by Kepler to ...Such a policy,if rigorously enforced, should restrain a rise in the price define the measurement of that notion of \IIliversal gravitation which had level. This policy appeared to have been successful in Nazi Germany ." been originally and famously discovered by Kepler.

EIR July 28, 1995 Feature 33 ogy for rule of society by a feudal land-owning aristocracy: English as Anthropology, had the same Nineteenth-Century the so-called Physiocrat dogma of Dr. Fran<;ois Quesnay. 38 French-positivist patronage. lJehaviorist psychology, in its Quesnay's central dogma against state interference in feudal several Original varieties, was also a Nineteenth-Century aristocrats' whims, laissez-Iaire, was translated into English concoction of British empiricists and continental positivists. by the British East India Company lackey, Adam Smith, as The method of history prac�ed academically and profes­ "free trade." The only significant difference was, that sionally today, is a creation qf the same array of empiricist Smith's doctrine shifted the rule over society from a feudal and positivist ideologues. EVen modern legal doctrine and aristocracy, to the Venetian species of feudalist financier practice, is derived chiefly frdm irrationalistcurrents of em­ nobility, as typified by the owners of the British East India piricist and positivist sociology. 43 Company, Barings Bank, and the Bank of England.39 Lord And, so on, for the arts and other matters of broad rele­ Palmerston's asset, Karl Marx,40defended Adam Smith and vance for "mass culture" todaf. "free trade" against the United States of America, but other­ 44 wise shifted the future rulershipover society fromthe London The 'begats' of empiriclsm financier nobility to a future world-government, a "dictator­ Modernempir icism, and its appended, generally accept­ ship of the proletariat." Once one knows the rudiments of ed forms ofuniversity-classrocpmmathematics and socialthe­ Quesnay, Smith, Marx, and the Lausanne school's Leon ory , originate with the mathe�atician, and powerful monk, Walras, every essential feature oftoday's generally accepted Paolo Sarpi. This was the Sarji whose faction seized control university classroom economics, can be attained with no of Venice's power in 1582, and used that power to launch more than a smidgeon of linear mathematics. 41 the process of the Venetian oligarchy's takeover of England On the other so-called "social sciences." What is known and the Netherlands. Sarpi launched theefforts which led to as "political science" in today's university curriculum, was the establishment of the Briti�h monarchy in 1714, and the invented, like sociology,b y the Bourbon Restoration follow­ later foundations of the Britisll1Empire, from 1763 onward. ers of Isaac Newton: notably, the positivists Saint-Simon and The array of the creatures iwhomSarpi employed for this AugusteComte .. Emile Dtirkheimestablished "sociology" as takeover of England's influe®al institutions, featured such a certified"diseipline" of universities. 42'Ethnology, known in relevant figuresas the mathentaticanGalileo Galilei, Francis Bacon, and the English monarchy of James 1.4' Galileo had a mathematics student, Tho�s Hobbes, better known as an 38. F�is Quesnay, Tableau Economique (1758). Court physician, intimate of Francis Bacon. Qut of these origins, came the agent of the Venice int-elligence service's powerfulAbbot Ank>nio Conti, relevant, celebrated figures o� Rene Descartes, John Locke, and follndet: gf thecentral dOGtrine� common. to,all empiricist and positivist Isaac Newton, David Hume, Charles Montesquieu, and such nomic dog�a, that ?f JS,ar1,Marx and John Von Ne,\IIIl8IIn included. � Eighteenth-Century devotees 9fNewton (and haters of Leib­ 39. Smith was a lackey ,of the most powerful figure of mid- to late-Eigh­ niz) as Voltaire, Pierre-Louis Maupertuis, GiammariaOrt es, tl;enth-Centuryl.ondon, perhaps themost powerfulEnglishman of the entire I 'ce�tury, williainF itzmaurice PettY, otherwisecommonly ide'!tified as Lord Sh�lburne, orthe Marquessof LanSdowne. ShelbUrne, who served as prime 43. The two leading irrationalist currents within modem philosophy of law 1782 1783, 1783 minister himself during parts of and negotiated the Treaty are those similar, but distinct varietiFs, stemming from British empiricist of Paris with both the U.S.A. and French representatives. During that same John Locke (1632-1704) and the Getman neo-Kantian positivist Friedrich 1782), period, Shelburne created the British Foreign Service (in putting his Savigny (1779-1861). Contrary to ru�or, the U.S. Federal Constitution was lackey, Jeremy Bentham, at the head. Later, he bought, on behalfof Barings referenced to Gottfried Leibniz (life, liberty, and pursuit of happiness), Bank, the relevant number of members of the Parliament, to ensure the in rejection of Locke's "life, liberty; and property." Locke did shape the Prime Minister William Pitt the Younger. He ascension and long tenure of Seventeenth-Century colonial law of, the Carolinas, and his influence was was the key oligarch associated with the British East India Company and resurrected by the preamble and body of the insurrectionary constitution of Barings Bank. From no later than 1763 , Shelburneemployed Adam Smith, the American Confederacy. Savign�, popularly identified as the putative of Nations of later Wealth notoriety, as his lackey, assigning Smithto work father of the Romantic school in law, and a key influence in establishing on a project for destroying the economy of France, and the autonomy and Kantian irrationalism (separation of Geisteswissenschajt from Naturwis­ of the English colonies in North America. Under technological progress sensclulft) in the domain of fine arts , vtas infamous on two additional counts. Shelburne's patronage, lackey Adam Smith visited France and Switzerland, During his lifetime, he was notoriods as a confederate of the Mettemich patching together a theory fromappropriate scraps of the work of the Physio­ agent G. W.F. Hegel, in efforts to ru$the attempts of Alexander von Hum­ crats. boldtto establish modem mathematid and modem physical science at Berlin 40. See Webster G. Tarpley, et ai., "Lord Palmerston's Multicultural University. During the 1930s, his influence contributed a key part to estab­ l Human Zoo," EIR, April 15, 1994. lishing the foundations of the Nazi law otherwise associated with Carl Schmitt. A strictly Lockean practice of law would establish a fonn of fascist 41. Leon Walras (1834-1910), the putative founder of the so-called "Lausan­ tyranny more radical than that Genn Y suffered under the Hitler regime. ne School" in positivist economics, was the notable predecessor of John f Von Neumann in applying systems of simultaneous linear (Newtonian) 44.The content of the following secti� overlapsmaterial covered earlierin expressionsto the attempted modellingof economic processes. Those func­ several published locations, notably: LyndonH. LaRouche, Jr. , " 'Structures tions are assumed to determine the implicit prices and quantities to be of Sin' Still Rule the Nations," ElK,April 28, 1995, pp. 46-56. assigned to the factors listed under assumed conditions of eqUilibrium. 45 . Cf. Webster G. Tarpley, "Venice's War Against Westem Civilization," 42. Emile Durkheim, Rulesof the SociologicalMethod (18 95). FideHo, Summer 1995.

34 Feature ElK July 28, 1995 Francesco Algarotti , Leonhard Euler, Joseph Lagrange, the planet, had been the pictureof societyoff eredby thefirst part Marquis Laplace, and so on. of Aeschylos' famous tragedy, Prometheus:46 at the top of Modern science itself had been founded circa A. D. 1440, society, a collection of "quasirimmortal" oligarchical by Nicolaus ofCusa's De DoctaIgnorantia, the book which families, the real-life guise of the Greek gods of Olympus; shaped the work of such self-proclaimed followers of Cusa immediately below them, their lackeys, who administered as Luca Pacioli and Leonardo da Vinci. At the beginning of the affairs of mankind on orderS from Olympus; below the Seventeenth Century , the most famous acknowledged fol­ that, the 95% subject to the capricious whims of the oli­ lower of Cusa, Pacioli, and Leonardo da Vinci, was Johannes garchs. Kepler, the founder of the firstmodern , comprehensive math­ The influence of the A.D. 1439t40 sessions of the Coun­ ematical physics. Followers of Kepler included such famous cil of Florence, and the echoing effects of Louis Xl's acces­ French mathematicians as Gaspard Desargues , Pierre Fermat, sion to the throne of France in A.D. 1461, changed thehuman and Blaise Pascal; other followers of the work of Cusa, Leo­ condition radically. With the transformation of a reconstruct­ nardo da Vinci, and Kepler included such associates of Fran­ ed France into the first modern niation-state, under Louis ce's ColbertistAcademie des Sciences as the Dutchman Chris­ XI, the order of human affairs was revolutionized, with the tian Huyghens and the German Gottfried Leibniz. The effects of that revolution radiating throughout this planet to followers of Cusa based the development of modern science the present day . The policy of fostering a humanist form of upon the pre-established foundations of the Classical Greek secondary education for orphans and for boys from families work of Plato's Athens Academy and Archimedes. of the poor, broke the barrier which had earlier confinedmore Cusa's launching of modern science had been comple­ than 90% of humanity permanendy to a cattle-like status mented by the use of the Classical Greek tradition for launch­ under oligarchical domination. The building of the modern ing deep-going revolutions in the fine arts of poetry , music, form of sovereign nation-state republic, sometimes called a tragedy , painting, and architecture , and in related advances "commonwealth," on this new social basis, was, and is the in city-building and colonization. This combined scientific modern nation-state. and artistic ascent of Fifteenth-Century Europe out of the That new institution, the modem nation-state, hasrevolu­ Fourteenth-Century "New Dark Age," is the Renaissance. tionized the rate of growth of potential population-density, The opponents of Cusa's, Leonardo's, Kepler's, and of productive powers of labor, and demographic characteris­ Leibniz's current of modern science, based themselves upon tics of family households.47 Taking into account all of the the deductive and metaphysical methods of Plato's adversary just complaints to be placed at the door of the nations of Aristotle . Venice's (and Padua's) Aristotelean efforts to modern Europe and North America, any elimination of the eradicate modern science, were superseded by Paolo Sarpi 's institution of the sovereign nation-state would unleash a glob­ rise to the leading position of power in Venice's foreign al genocide beyond any criminality earlier wreaked upon policy. Sarpi's neo-Aristotelean method , which harked back humanity in known history up to thfs point. in part to nominalists such as William of Ockham, became These new, Renaissance instinitions , the policiesof the known variously as empiricism, or the Enlightenment. Council of Florence and the modem nation-state, came im­ It is useful and fair to say , that all of the past fivecenturies mediately into mortal conflict with two oligarchical forces: of the internal history of extended European civilization, has the landed feudal aristocracy, and the·financial oligarchyled been a continuing war of the Venice-launched Enlightenment by , and typified by, the Venice nobility. The powerful new against the Renaissance. The two represent mutually exclu­ forces sent into motion by the Renaissance came near to sive conceptions of the nature of man , and of the universe; crushing Venice at the beginning of the Sixteenth Century; consequently, these axiomatic differences subsume mutually Venice's successful use of COrrupti4>Dto set its powerfulene­ exclusive notions of the nature of cause-effect relations with­ mies against one another's throats, breaking up the anti­ in society, and in man's practical (e .g., physical-economic) Venice League of Cambrai , enabled Venice to survive, and interaction with the universe . That conflict, between the ideas recover much of its strength, thro�h continuing such "bal­ of the Renaissance and the contrary , empiricist ideas of the ance of power" diplomacy. 48 Nonetheless, during the follow­ reactionary Enlightenment, has shaped the internal and glob­ ing three centuries, all feudalist efforts to destroythe modem al history of extended modernEuropean civilization through­ nation-state failed. The Holy Alliartce,the last major expres- out the past five centuries. This conflict in ideas has an easily recognized practical 46. Prometheus Bound, in Aeschylus, Htn"bert Weir Smyth, trans., Vol. basis. II (Cambridge, Mass.: [Loeb Classical Library] Harvard University Press, Prior to the Fifteenth-Century Renaissance in western 1922); pp. 211-315.

Europe , in all cultures, throughout all prior existence, over 47 . See Lyndon H. LaRouche, Jr. , "What Is God,that Man Is in His ImageT' 95% of humanity had lived in the depressed condition of Fidelio, Spring 1995: graphs and chart on lpopulation and demographics, virtual human cattle , as serfs , slaves, or worse. The typical pp. 25-26. structure of ancient and medieval society , throughout the 48. Tarpley, "Venice's War,"op . cit., passim.

EIR July 28, 1995 Feature 35 sion of feudal-aristocratic imperial power, disintegrated in British clones employed, to adopt the babies, the nation­ 1848-49, and its relics were virtually obliterated49 during the states as such, after sterilizing both those babies and their course of World War I. The financier oligarchy has been a parents , ridding the population of the intellectually and mor­ more durable proposition; Sarpi is key to understanding why. ally fertile influences of the R¢naissance. The topic here is The root of the nation-states' inevitable defeat of the those methods of cultural warf�e , psychological and philo­ feudal aristocracy's imperial institutions, is found in effects sophical warfare , which empiricism has used to enslave the of the nation-state's tendencies toward universal humanist minds of those over whom it n,les. Once the Sarpi-Galileo­ education for the youth from families of the poor. The tenden­ Hobbes-Descartes-Newton dev�lopment of a perverted form cies toward future universal education, combined with em­ of mathematics is understood, and the way in which today's phasis upon technological improvements in the productive generally accepted university-classroom social theory was powers of labor, revolutionized economy and warfare . derived from that empiricist rqathematics, the mechanisms Among similar effects , this educational tendency prompted which control the minds of mo�t U.S.A. citizens today, are a qualitative increase in the society's potential , per capita, immediately recognizable. Th� is the key to the persistence for generating and assimilating the benefits of scientific and of the presently ongoing economic debacle. technological progress. The fostering of advances in technol­ That said, tum to consider �e manner in which the Eu­ ogy and productive powers of labor, translate into increase rope-wide salons created by S�i's most important succes­ in the firepower and mobility of military forces. Against sor, Abbot Antonio Conti, so cqntrolled the destiny of every determined modem nation-states, the imperial obsessions of nation of Europe over the coUr&e of the Eighteenth Century. the old feudal land-owning aristocracies were doomed to From approximately 1582 thro�h the death of Conti in 1749, ultimate defeat. Venice's agents Sarpi and Con1li are twothe most significant Sarpi and his faction committed themselves to establish­ figuresof the European Enlight�nment, the two cabalists who ing a global maritime and financier power within the Protes­ virtually created the mythical pation of Britain from mud. tant regions of northern Europe , selecting the Netherlands We touch only the most relevant highlights of the Conti and England as the new centers of global maritime power, in salon's "begats" here. 51 i which to build up such clones of the Venice oligarchical Members of Conti's Newtop cult included such notables system. Instead of seeking to destroy the nation-state, they as Charles Montesquieu (Spiri� of the Law, 1750) and Vol­ sought to dominate it from within, by a combination of con­ taire . Also an agent of Conti's salon, was the Dr. Fran�ois trol over the finances of the nation-state, and through bal­ Quesnay who produced the dogma of "free trade" (laissez- ance-of-power games pitting one nation-state against the other. In this way, the modem nation-state became, predomi­ 50. Antonio Conti, pen-name "Schinena," the most important oligarchical nantly, a form of "mixed economy" which combined the figure of Eighteenth-Century Europe, but today among the least known to nation-state's original and organic impulse for agro-industri­ history students. Bornas a member of 1l1e Venice nobility, in Padua, 1677, al investment in technological progress, with the superimpo­ a descendant of the Nani clan, on his m�ther' s side, and of SperoneSperoni, sition of a financier oligarchy, controlling the financial and himself an influentialstudent of the fou.der of the Padua schoolof Aristotle, Pietro Pompanazzi. In 1699, young CO ti entered the Venice religious order monetary institutions of the nation-state, on top . $ Oratorio pardi della Fava, and was

49. Or, assimilated, with or without their aristocratic titles, into the ranks of 51. For more background, see Lyndon H. LaRouche, Jr. , "How Bertrand the Anglo-Dutch international financiernobility, as the English and Scottish Russell Became an Evil Man," Fidelio� Fall l994, and Webster G. Tarpley, feudal aristocracy had been earlier. "Venice's War," op. cit.

36 Feature ElK July 28, 1995 \Veekend FT I h�,\\lhuulhjf� Gill hI.! "0:.>('1\ as l�(I

The British oligarchical mind at work, in the London Financial Times of luly J5-J6, J995: "Some of my bestfriends

are cannibals. . . ." fa ire). The most important figures of the salon, after Conti wide efforts leading to the syncretic concoction known as the himself, were, first, the Venetian Camaldolesian monk Gi­ British East India Company's Haile,ybury school of econom­ ammaria Ortes, and second, the Camaldolesian abbot, and ics: Adam Smith, Jeremy Bentham, Thomas Malthus, David teacher of Ortes and Francesco Algarotti, Pisa's Guido Ricardo, James Mill, John Stuart Mill, et al. Grandi. One of the key European figures controlled by the The social dogma which Ortes et al. concoct, to form the Conti Salon was Prussia's Frederick II, the so-called "Freder­ basis for what became Adam Smith's "free trade" hokum, is ick the Great." A nest of Conti's Leibniz-hating Newton-cult traced directly from Galileo's mathematics pupil Thomas figurescontrolled Frederick II's Berlin Academy of Science: Hobbes, by way of John Locke, et al. The clearest insight the hoaxster Pierre-Louis Maupertuis, his accomplice in the into the British empiricist's understanding of this dogma, is hoax, Leonhard Euler, "pretty boy" Francesco Algarotti , a 1725 book by a Dutch-born rapscallion, of the name of who set the pace for the degenerate aesthetical dogmas of Bernard Mandeville, The Fable of the Bees: Private Vices, Immanuel Kant's 1790 Critique of Judgment, and Pierre­ Public Benefits. Mandeville gives the show away, by point­ Louis Lagrange. 52 Throughout all Europe, there was no cen­ ing out that the British empiricist's notion of "freedom" rests ter of scientific thought in which Isaac Newton enjoyed a on the remarkable presumption, that it is immoral, even out­ favorable reputation, which was not controlled by the agents rightly evil deeds by individual persons, which produce all of Conti's Venetian networks of salons. of society's ultimate good. The same network of Venetian salons also deployed, A recent weekend (July 15-16, 1995) edition of the Lon­ against the French monarchy, the "sting agents" Giacomo don Financial Times, illustrates the point, employing author Casanova and, later, Alessandro Cagliostro . Lyall Watson's stomach-wrenching efforts at making the The key figure to study, to expose the manner in which point with attempts at typically Oxbridge "British understate­ these Venetians around Sarpi and Conti's salon pasted to­ ment." The article, featured on page 1 of the weekend sec­ gether their perverted brand of mathematics and their social tion, is entitled "The Case for Cannibalism," a slug which theory, is Giammaria Ortes (1713-90): the "father of Malthu­ leers out from under a six-column photograph image of a ,, sianism, 53 and also the principal coordinator of the Europe- primitive Asmat cannibal tribesman. The caption reads: "The Asmat have turned population dynamics into an intricateand 52. Some Gennan patriots sneaked Ephraim Lessing, the friend of Moses strangely beautiful game: they eat each other, happily." A Mendelssohn, into the Academy, behind Frederick's back, so to speak; few passages from that piece are quotable, to assure the Frederick acted to ensure that Moses Mendelssohn was not appointed, too.

53. Giammaria Ortes, Reflessioni sulla popolazione delle nazioni per rapporto all'economia nazionale (Venice: 1790). This book, published capacity," which the Club of Rome inserted into the population-policy ' soon after in an English edition, was the basis which Jeremy Bentham's discussions of the 1980s, is taken directly from Ortes's Reflessioni, not Rev. Thomas Malthus plagiarized in producing his An Essay on Population Malthus. For more on Ortes, see Lyndon H. LaRouche, Jr. , "How Bertrand (1790) (New York: E.P. Dutton and Co., 1960) . The notion of "carrying Russell Became an Evil Man," loe. cit., passim.

EIR July 28, 1995 Feature 37 reader that Watson (and the Financial Times) are quite seri­ some motives of a nastier type. In addition to percussive ous about this promotion of cannibalism, and that we might interactions so generated, they also radiate sinful and even prepare the reader for an insight into the minds of not only evil impulses upon one another. Now, imagine that a net the perverse Mandeville, but Hobbes, Locke, and Ortes, too. social good comes out of all o� this percussive and radiant Watson begins: "Some of my best friends are cannibals. wickedness. Imagine that this pccurs in the fashion Ray­ They live on the Casuarina Coast, the delta area of Irian in leigh's gas would acquire the �eneral attribute of pressure Indonesian New Guinea ....There are about 20,000 of and temperature, through some �echanism analogous to the them and they call themselves the Asmat, which means 'the kind of kinematic eqUilibrium pqpular with Galileo, Hobbes, human beings.' All outsiders are known very simply as Ma­ Newton, et al. There you have tlte intellectual model which nowe-'the edible ones.' " Near the close of the article, on forms the axiomatic basis in m�thod for all of the principal the jump page, Watson waxes British-philosophical as he theses on social theory in gene , and economics in particu­ gets down to empiricist business: "The fact that humans are, lar, by Hobbes, Locke, Mandevi Ie, Giammaria Ortes, Adam on occasion, both aggressive and violent presents the Asmat Smith, Jeremy Bentham, John� Stuart Mill, and John Von with no problem and requires no heart-searching or remorse. Neumann. ! They have stereotyped and ritualised such tendencies, The hey-day for constructin� such social-theoryconcoc­ allowing them fu ll and satisfying play in headhunting, while tions was the Enlightenment's E�ghteenth Century. Thecen­ at the same time resolving a pressing environmental problem tral figure in this enterprise was �e Conti salon's Ortes; this [emphasis added] . ...There is hope in this, but only if we was understood by Ortes to be I the effort to show that all follow the Asmat example and learn how to bend in favour social processes could be reduce� to the termsof a mechanis­ of that which best allows equilibrium to beestablished ." tic model, using Newton's algebraic designs as a model. That is exactly what Mandeville means by "private vices, After Ortes's recipe had been as�imilated by the British and public benefits," and what Adam Smith definesas individual the continental Newtonians, the empiricists and continental morality in his 1759 The Theory of the Moral Sentiments. positivists have been virtually mass-producing new depart­ That is the same construction which Fran�ois Quesnay em­ ments of social theory, from the second half of theEighteenth ploys in arguing that society must benefitfrom non-i nterfer­ Century, to the present day. It is all essentially gobbledy­ ence with the capricious whims of feudal aristocratic serf­ gook, but the suckers call it "science," or simply "profession­ owners-laissez-Ja ire-and the argument which Adam alism," nonetheless. Smith copies from Quesnay in presenting his case for "free trade" in the 1776 Wealth of Nations. That is way in which Thomas Hobbes argues in his Leviathan; that is the morality 3. How thecont rol works of John Locke, and Jean-Jacques Rousseau. That is, as the item from the Financial Times merely reflects this, the typi­ Mother opens the kitchen dock-, exclaiming, "Junior! You cal, present-day British-empiricist mind-set; that is the mind­ have your hand in the cookie-jar again!" set expressed by the attitude of British diplomats and U ,N. O. The boy recovers quickly, and retorts with what might officialsin explaining why Bosnians must submit to Chetnik pass for injured innocence: "What cookie-jar?" conquest by means of rape and genocide, for the greater Not all charlatans choose to be conscious of the fact that good of a reunited Yugoslavia under control of London's and they are practicing fraud. Milosevic's Chetnik assets. The poet , dramatist, and historian Friedrich Schiller To understand Hobbes's, Locke's, Mandeville's, Adam named one of the importantcategories of such charlatans. In Smith's, and Lyall Watson's curious advocacy of individual German, the term is Brotgelehrten: In English, it translates evil, examine the empiricist axiom we have just described as the professional who passed his time in higher education here from the standpoint of the relevant mathematical studying to learnhow to get a better-paying job after gradua­ physics. tion. It is the end-productproduced by the student who chal­ Think ofthe mechanistic model of a Cambridge Universi­ lenges the teacher: "Teacher, is this going to come up on the ty gas system , as fancied by Lords Kelvin or Rayleigh, for examination?" meaning that the �udent considers it immoral example: a Newtonian gas system. Construct the image. See for the teacher to raise any topid for which the pupil is not the millions of tiny balls roving about in what is otherwise a going to be financiallyrewarded ,: sooner or later. In the pres­ confined vacuum. Remember that beach-side concession, ent writer's long experience, most U.S. professionals­ where, for a brief, but idyllic moment, one might rent the use among others-are Brotgelehrteli, whether or not they speak of an electric-powered "bump-' em" car, ramming other such German. "bump-'em" cars , and being rammed in tum? So, the tiny Any honest scientist works much harder, and with greater gas-particles interact percussively, and, in a more sophisti­ rigor than any member of the tri�s of the Brotgelehrten; he cated version, by radiating upon one another. is motivated by the sheer joy of scientific discovery, just as Now imagine that each of these tiny balls is motivated by any really goodprof essional mus.cian is similarly driven. He either an assortment of the Seven Deadly Sins, or, perhaps, or she is motivated by the consideration, that when doing

38 Feature EIR July 28, 1995 genuinely creative, rigorous work, his or her mind is in a vidual person is born not only intrinsically good, but the more ennobled state, a more joyful one, than would be possi­ noblest creature of creation. As this writer has spent most of ble were he or she not so engaged for a large portion of each his adult life insisting that, were man merely an animal, day , each week. Put aside all the silly litany about "desire subject to the rules of animal ecology, the human species for gain, and fear of losses" in the cant of the empiricist could never have exceeded a living population of several economists and sociologists. The essential motive for doing millions individuals at any time past, under the late Cenozoic good, is that it is fun: much more fun to be that kind of conditions prevailing on this planet during the recent 2 mil­ person, than any other. lions years. Man, unlike any beast, has the creative-mental The importance of having fun, in that way, is better cog­ capacity to effect valid discoveries of scientific principle,

nized if one reflects on the brevity of that historical instant through which to transform man ' s relations with the uni­ we know as the expected life-span of the mortal individual verse, and thus to increase the pbtential population-density person. Once one grasps that one's foremost self-interest lies of the human species, while improving the demographic in acquisition of those things which one may, assuredly, characteristics of the family household. carry into the grave, the things which are not objects of The second, is the question: Since human existence de­ sensory pleasure br pain, then fun is living in the way which pendsupon an unending successionof revolutionarydiscover­ cheats death, the things which leave the world a better place ies of principle in natural science, and otherwise, what is the after one has left it, than one found it, a mere historical instant nature of human knowledge? Since mathematical formalism earlier. represents knowledge in terms ofithe kinds of deductive con­ Once one has learned the joy of having fun, there are sistency we associate with deductive theorem-lattices, how certainquestions which come frequently to one's mind, ques­ can we represent the progress (change) of knowledge which

tions which any of the dismal Brotgelehrten would probably overturns an existing such theorem-lattice? The fun-loving never think to ask. The Brotgelehrten locate self-interest in person who embarks on a rigorous and sustained study of that that which they imagine themselves to get out of the mere question, will end up as a follower of Plato, of Nicolaus of historical instant of their mortal existence; people who have Cusa,Leonardo da Vinci, Kepler,Leibniz, Gauss, and Riemann. fun, worry about what they are putting into that instant. The There are two conceptions to be mastered. First, the no­ Brotgelehrten are therefore much less intelligent, and also tion of ideas, as definedby Plato, which thiswriter addressed less happy, than the people who have fun. in the Spring 1995 edition of Fidelio.54 Second, the under­ The sobersided pragmatist, with his eye fixedon what he standing that mathematics remains a useful tool only as long considers his main chance, will argue in defense of Newton, as we introduce the principles of physical science to mathe­ and so on, "Buddy, this is the way the world is, and if you matics from the outside, principles which occurto us in the wish to get ahead, learn to accept the way things work, the form of scientific ideas, as Plato understood the notion of way the world is." That miserable sobers ides would never ideas, and as Aristotle, Pietro Pomponazzi, Paolo Sarpi,and think to ask, what kind of mathematics exists outside New­ Isaac Newton did not: as this writer has repeatedly addressed tonianism? He would never think about those facts from that issue. 55 Once those conceptions are grasped, and impli­ the known span of human existence which show us that all cations of those ideas are undelTStood, that person is freed empiricist sociology, and economic dogma is flatly absurd from victimization by that corruption recognized as "popular from the start. culture, " and will therefore be free fromthe confidence-game Thus, the facts we are about to reference will probably called empiricism. appeal only to either those who simply enjoy having fun, or The crucial thing to be undel1Stood, is that the prevailing who prefer not to have the world plunged into the kind of popular culture is not a "natural" phenomenon, but a synthet­ New Dark Age in which the population of this planet col­ ic culture, created and shaped by those powerful, presently lapses, very rapidly, through famine, epidemic disease, and London-centered international oligarchical forces which perhaps cannibalistic qualities of homicide, from over 5 bil­ have long sought to contain and control the institutionof the lions persons today, to less than half a billion 20 to 40 years modern nation-state, and are now committed to seeking to fromnow . destroy it. Once it is also recognilZed, what is the significance That Brotgelehrten type, whether he or she has graduated of the demonstrable frauds permeatingNewton 's work, and from institutions of higher learning, or is an illiterate, is the the related frauds permeatingtaught economics-teaching and bearer of that quality which the empiricist tradition values social-theory dogma generally I the citizen is no longer most highly in its victims. This is what the empiricist tradition gripped by the compulsion to believe that "the cookiejar to has worked to ensure remains the standard of popular culture. which mother refers does not exist." For the citizen who prefers fun , there are two questions which ought to be considered of the utmost importance. The first involves the factual evidence showing the true 54. Loc.cit. nature of the human individual: that, as Moses' first chapter 55. See Lyndon H. LaRouche, Jr. , "The Fraud of Algebraic Causality," of Genesis insists, the created universe is good, and the indi- Fidelio, Winter 1994.

EIR July 28, 1995 Feature 39 �ITillInternational

u.s. credibilitya t stake in Bosnia, says LaRouche by Edward Spannaus

As officialsfrom the United States and allied nations, includ­ conversation between Presidents Williarn Clinton and ing Russia, headed into the July 21 emergency meetings Jacques Chirac on July 20. It wasialso notable that the British, on Bosnia in London, U.S. statesmen Lyndon LaRouche apparently fearing the loss of their ability to control and warned that the credibility of the United States would be manipulate the Balkans situation, were said to be giving finished unless the United States and NATO carriedout mas­ grudging support to Clinton's plan, in order to salvage the sive air strikes against the Serbs. U.N. presence in Bosnia. "What has to be done," LaRouche said, is that in this The stated, officialposition of the Clinton administration immediate period,NATO "is going to have to take out all the going into the London meeting was that the U.N. mission in relevant targets of opportunity, logistical heavy weapons, Bosnia must be strengthened and reinvigorated. This ap­ through largely air-strike methods ...to bring about the peared to stand in sharp contras� to the declaration of repre­ defeat of a bunch of war criminals who won't stop commit­ sentatives of Bosnia and Hercegovina that the U.N. mission ting war crimes and crimes against humanity, as in the case in their country is finishedand should be terminated. of Srebrenica. Likewise, the Clinton administration loudly declared its "If that doesnot happen," he continued, "then the credi­ opposition to a unilateral lifting M the arms embargo against bility of the United States, the United States government in Bosnia, as is being advocated by Sen. Robert Dole (R-Kan.) particular, but the United States as a whole, is gone. and an apparent majority in the United States Senate, not to "If we do not act," LaRouche warned, "the United States mention the Bosnians themselves. government, which would mean the Clinton administration However, on both questions�the futureof the U.N. mis­ in this particular case but the whole government, the U.S. sion, and the lifting of the arm/> embargo-the difference military, and the entire United States, has lost strategic credi­ between the Clinton administration's official view, and the bility, and our attempts to project any policy, any foreign contrary course it appears to be opposing, is not as great as it policy whatsoever, will be generally treated with disgust and appears on the surface. And indeed, no matter what the out­ contempt by nations around the world. And therefore the come of the London meeting, events are moving toward a time has come in which we have to act." long-overdue and rapid termination of the U.N.'s criminal operation in Bosnia, combined ,with a lifting of the arms A turning point embargo which has denied to the Bosnians their inherent After months and years of being deterred from such ac­ right to self-defense. tion by the United Nations and by the British, the United One indication of this was the willingness of Senate lead­ States, acting through the Clinton administration, headed ers to accede to President Clinton's request that they delay into the London meetings with an aggressive proposal for the vote on S. 21, the bill to lift the arms embargo, until after what were being called "massive and disproportionate" air the London conference. Another was the repeated declara­ strikes against the Serbs. tions by administration spokesmenof their determination that Of particular importance was the reported French agree­ the U.N. mission would be ended if, after one last chance, it ment with the U.S. proposal, which followed a telephone could not be revitalized, and their insistence that theUnited

40 International EIR July 28, 1995 States and NATO would no longer tolerate the "insane" dual­ British, but that actually, the Serbs are the agents of the key arrangement whereby U.N. officials have a veto over British. "Despite what Margaret Thatcher is saying at pres­ NATO air strikes. ent," LaRouche noted, "it was under her government, and In the likely event that the Unprofor forces in Bosnia are with the connivance of President George Bush, that this oper­ to be evacuated, this will require the same sort of massive ation by the Milosevic Serbs against Croatia, brieflyagainst use of air power which the United States is proposing at Slovenia too, and against Bosnia was launched. This was London. Senate leaders such as Dole are insisting that if U . S . done for British geopolitical reaso�s, initiated, launched, by troops are used to assist a U.N. evacuation from Bosnia, that the governmentof Prime Minister Margaret Thatcher." this should only be done under NATO command, with the LaRouche said that this operation has been runfor some U.N. kept out of it, and with the United States having the time, with the U.N. "policing the warfare to make sure that right of massive retaliation against the Serbs, including tak­ the Bosnians and Croats should never actually defe at the ing out SAM missile sites and other strategic targets. Admin­ Serbs and should be fo rced to submit to Serb victories." istration spokesmen have indicated their agreement with the As a result, LaRouche declared, "high officials of the need for such rules of engagement. British government, high U.N. officials, including Boutros Boutros-Ghali, the secretary general of the United Nations, The Sacirbey declaration have been guilty of complicity in war crimes." Of singular importancewas the statement made by Bosni­ LaRouche noted that the United States has been opposed an Foreign Minister Muhamed Sacirbey in Washington on to this and has, under President Clinton, desired to have this July 17, in which Sacirbey announced that the U.N. mission matter resolved. But, he added: "We have been deterredfrom in Bosnia and Hercegovina "is at an end," and that "the U . N . acting by the United Nations, and by British influence, and, framework is no longer an acceptable basis for the presence formerly, British and French influence, under a revived En­ of internationaltroops within Bosnia and Hercegovina. " Bos­ tente Cordiale, and [by] a British determination to use the nia will henceforth deal with with friendly countries on a Balkans as a lever to try to create a revival of the Triple bilateral basis or some framework other than the United Na­ Entente, nominally against Germany, but actually also tions. Sacirbey also strongly indicated that his nation was against the United States." finished with the so-called Contact Group, saying that "the Analyzing the military situation on the ground in Bosnia, current dance with Mr. [Serbian President Slobodan] Milo­ LaRouche noted that the Croatian and Bosnian infantry is a sevic undertakenby Mr. [Swedish U.N. mediator Carl] Bildt far superior fighting force to the Serb Chetnik forces under and in the past through Mr. Frasure and the Contact Group Radovan Karadzic, but that the margin of advantage of the has shown itself to be at an end," and has become a means Chetniks is the heavy weapons capability which they have for continued aggression rather than peace. obtained from Serbia. This advantage can be eliminatedvery Sacirbey castigated the attitude of some countries which rapidly through the use of U.S. aerospace capabilities, op­ want the Bosnians to fightalongside their troops, but still deny erating under NATO with Frendh-American sponsorship. theBosnian Army theweapons needed to carry on the fight­ And this would mean that President Clinton would have to in what appeared to be a criticism of the French proposals to give the U . S. military the latitude to get the job done, without inject additional ground forces while maintaining the arms limitations. embargo. "I findthis position incomprehensible and morally We have now come to the point, LaRouche emphasized, flawed," the ambassador stated. Sacirbey singled out British that we have to push ahead very quickly, to get agreement Prime Minister John Major for using the London meeting as among France, the United States, and other forces "to imple­ a delaying tactic "which is intended to allow [the U.N. safe ment what Dole is calling for, lifting of the embargo, and go haven] Zepa to die." While covered as a front-page story in in there and act expeditiously using full military capabilities, some daily newspapers, Sacirbey' s declaration was complete­ both to assist in the protection of! the Unprofor troops who ly blacked out by the New York Times and the Washington are there, but also to take out this Serb atrocity, which must Post. (Substantial portions of Ambassador Sacirbey's state­ be removed if there's going to be peace, and a solution to the ment will be found on p. 42 in this issue.) issues of war crimes in Bosnia." "If the United States acts expeditiously-shall we say British perfidy 'with pungency and force and expedition'-this whole mess While other statesmen were beating around the bush and will be under control within a matter of days," LaRouche speaking in diplomatic terms, the most accurate and blunt concluded. "We may have a problem with the U.N., we may assessment of the British role in the Balkans was as usual have a problem with our so-called British ally, but it's time provided by LaRouche in his radio interview with "EIR to have it out. We cannot mush around with so-called sensi­ Talks" on July 19, from which the quotes at the opening of tivity or therapy group types of lIlegotiations, in which the this article aretak en. cost of continuing the therapy group chats with the mentally LaRouche said that, contrary to what often appears to be ill from London, is that tens of thousands of people in Bosnia the case, it is not that the Serbs are being protected by the are butchered. That's not acceptable."

EIR July 28, 1995 International 41 and brought to safety. And finally, we know that there are many Bosnian refugees, columns, now trying to find their way back to government-controlled territory as they have Bosnia's Sacirbey: become separated from the main body of refugees within Srebrenica itself. [Question regarding the �esence of United Nations U.N. role is finished peacekeeping forces in Bosnia.] The U.N. mission will eithervoluntarily withdraw, or at Speaking at the National Press Club in Washington, D.C. on the latest by November, we will, in fact, look for it to be July 17, Bosnian Foreign Minister Muhamed Sacirbey said terminated. I must emphasize that the uncertainty in our tim­ that the United Nations is finishedin Bosnia, that any nation ing only has to do with the practical consequences and [inau­ that wants to help Bosnia should do it bilaterally. Here is dible] the situation to bring abut the least risk to both the Sacirbey's statement, and excerptsfrom his responses to U.N. and the civilian population. That can, to some extent, questions. The transcript is by Federal News Service. be still impacted by an Unprofor withdrawal. But the U.N. framework for the currentmission , as far as we're concerned, First of all, the U.N. mission in Bosnia and Hercegovina is must end as soon as possible. And that really means even at an end. The U.N. framework is no longer an acceptable before November .... basis for the presence of international troops within Bosnia First of all, if, in fact, all U.N. troops are to withdraw, and Hercegovina. we're ready to live with that contingency. Second, to those Second, the arms embargo must be lifted, and it has been who, in fact, believe they can accomplish some good in leftas the only option through which the Bosnians can defend Bosnia, whether on behalf of the Bosnians or on behalf of themselves. the international community, we certainlyare willing to work Three, while others argue about where the line should be with them on a bilateral basis or through a different frame­ drawn in reasserting international credibility in Bosnia, we work to allow them to continue to do their good work. believe there's only one line right now, and that is at Zepa. As an example, we know that some troops within central Those who, in fact, wish to draw the line somewhere else are Bosnia engaged in a more traditional peacekeeping mission trying to find an easy way to reassert their own credibility by are being productive in that mission. But you do not need effectively using the capacity of the Bosnian forces to actual­ 30,000 U.N. troops within BO$nia and Hercegovina to, in ly do the job for themselves. fact, do the job of no more than 3,000 to 5,000. The other In my recent visit to France, in several meetings at the troops are in excess both frool an economic and political highest level, I was asked, "Are the Bosnians willing to fight perspective. They, in fact, have become a hindrance, a clum­ for Gorazde?" I said, "We're willing to fight forZepa and sy reminder of the U.N.'s failures. And needless to say, I Gorazde." The next question was, "Well, are the British, in think it is never an interest to either find a new mission for fact, willing to join theFrench in fighting with the Bosnians these forces or to pull them out. But the U.N. framework has to save Gorazde?" That's, of course, a question for the British shown itself to be flawedand extremely inadequate .... to answer. "Are the Americans willing to provide liftsupport Clearly I think that some within the U.N. structure are and equipment to theFrench and the British to defend Goraz­ more inclined to see a dead Bosnia than a live Bosnia which de?" That is a question for the Americans . fightsback. Explicitly, I'm not sure that anyone is willing to Interestingly, though, while everyone foc uses on whether admit that. But the response of the United Nations and many or not the Bosnians are willing to fight to save Gorazde or Sre­ in Europe to Bosnia's struggle for life has been one of de­ brenica or Sarajevo, no one asks , "What is it going to take for scribing it as an inconvenient factor to the building of a new . the Bosnians to be able to execute this themselves, to be able Europe . . . . to, in fact, fight alongside these allies?" It seems that some want Time is of the essence. I'm not sure that we have any other us to fight alongside of them and still continue to deny us the alternatives, though. If, in fact, the internationalcommunity weapons to beable to carrythe fightmost effectively. I findthis wishes to act to prevent the types of tragedies that you're position incomprehensible and morally flawed. speaking of, then they do have forces on the ground and they If, in fact, you do want someone to fightalongside of you can use those forces to act outside the U.N. framework. It's to defend their territory and defend your honor, then they're up to them to decide to do that o� not. Clearly the withdrawal entitled to the means to defend themselves. And, by the way, of the U.N. forces from Bosnia-Hercegovina will require, the story of Srebrenica is by no means over. Thousands of according to some, a NATO presence in Bosnia. No such people are missing-civilians, mainly. The men and young NATO presence has been approved. boys who have been taken away to uncertain futures must be So to the extent that we're talking about some forces accounted for. The women, raped and others taken off to coming in to help bail out Unprofor, I think we should also once again a most horrible future , need to be accounted for speak of some potential force that could come in or could

42 International EIR July 28, 1995 stay in to help the Bosnians. But I emphasize, we are prepared to live without any forces. And as a consequence, we think that even under those difficult circumstances, the Bosnians are better off with that future than the status quo. Effectively, as a whole , not in every instance but as a whole, the U.N. presence in Bosnia has become an impediment for greater, more effective action to help the Bosnians defend themselves or even to administer humanitarian assistance to our civilian population .. .. [Question on the possibility of international brigades coming to fightwit h the Bosnians.] As far as I know, in this country alone, there appear to be 5,000 people who are willing to go into Bosnia, non-Mus­ lims, as I understand it, to fighton behalf of Bosnia. Certainly Bosnia is much more, bigger than an Islamic crusade. In fact, it is an international crusade . If I may paraphrase President Havel of the Czech Republic when he recently convened the opening of the Human Rights Building in Strasbourg in France. He said the war in Bosnia is between the Serbs and the others , and he said the others are us. So there are plenty of us, in America, in Africa, in Asia, and in Europe. We are not waiting for anyone anymore . The only thing that I wish to do is be cautious so that I give the maximum opportunity for those who are effectively trapped by the U.N. framework to survive over the next few weeks, in particular the people of Zepa and the people of Gorazde . But frankly, Bosnian Foreign Minister Muhamed Sacirbey: "[ think that some within the U.N. structure are more inclined to see a dead Bosnia it seems that even their future has very little to do with the than a live Bosnia which fightsbac k." U.N. , and frankly has everything to do with our own capacity to defend ourselves. I note one point that you made , and that is that under by the fo llowing: I have good information that while Mr. the conditions which Senator Dole has established for U.S. Carl Bildt [the former Swedish prime minister] met with participation in a NATO withdrawal of Unprofor, it is explic­ Milosevic this last weekend and the weekend before the as­ itly stated that the U.S. in fact will not rescue weapons but sault on Srebenica, that General Mladic was with him. Nei­ only Unprofor personnel. . . . ther Mr. Milosevic nor Mr. Bildt were able to dissuade Mr. [Question about the French and British approach.] Milosevic [sic] from undertaking his assault on Srebrenica. I Clearly the French and, I emphasize, British approach think this has been long described, by at least me, as a story has not worked. Therefore , we're already to the next stage. of Frankenstein and his monster, and the monster sometimes

What happens between Greece and Turkey is not so much a is under the control of Mr. Milosevic and sometimes he acts factor of what is done in Bosnia, but in fact what has not been like he's out of control . But I can assure you at all times, it is done in Bosnia. The failure to take constructive measures to Frankenstein who in fact has the influence. bring this war to an end has created a new set of potential It is sometimes more convenient to acknowledge it, confrontation lines. Those confrontation lines cannot be sometimes less convenient, and to make it seem like the eliminated by covering up Bosnia. In fact, they seem to be monster is out of control. only heightened. I emphasize once again that we are not Therefore I would like to announce one, I think, impor­ asking for foreign troops to come to Bosnia. I emphasize tant change in our policy, and that is that we have come to once again that we are only prepared to count on ourselves the conclusion that the current dance with Mr. Milosevic and no one else. But at the same time, those who believe they undertaken by Mr. Bildt and in the past through Mr. [Robert] have a constructive role to play in Bosnia, we're prepared to Frasure and the Contact Group, has shown itself to be at an receive them, to cooperate with them in the context of a end, and in fact to have been converted into, effectively, a bilateral relationship or something else. tune of continued aggression in Bosnia, rather than harmony But the U.N. framework has in fact failed. for peace. [Question about the role of Serbian leader Slobodan We think that we need to find once again, a new frame­ Milosevic. ] work by which Mr. Milosevic is convinced for peace. Mr. Milosevic' s role in the latest assault has been evident [Question about the Jewish community.]

EIR July 28, 1995 International 43 I'm glad you brought the point up. In the past under need something that's going to allow us to match up against maybe less urgent circumstances, I've had the opportunity to the Serbian forces, just have a little bit more, just have ammu­ fully acknowledge the role of the American-Jewish commu­ nition. So I think those who keiep asking us if we need F- 16s nity in helping the Bosnian people, politically and practically are either badly misinformed as to what the war in Bosnia is in addressing this aggression, this genocide. I think the Bos­ all about, what's the sophistication of the weaponry, orin fact nian people, Muslims, Serbs, Croats, Jews, and others, as they are trying to undermine our legitimate call for discussion well as the Jews of the international community, in particu­ about what weapons could be useful in Bosnia and Herce­ lar, the United States , have found common ground in the govina. words of "Never again." While others tend to look at the I think estimates of $500 million to $5 billion worth of Holocaust as a hurdle by which all other acts of war crimes weapons being needed for the Bosnian Army are not legiti­ and genocide are to be judged, the American Jewish commu­ mate . I think they're inflated td scare off congressional deci­ nity and the Jewish community as a whole have recognized sion-makers about the support that the Bosnians need. We that that is not a hurdle but in fact it is a commitment of the need no more than a few hundred million dollars worth of Jewish community to stand up against all genocidesincluding weapons-much less, certainl1, than what in fact Unprofor's those that, in numbers at least, may seem small in comparison costing the United States and ' the international community to what happened during World Warll . right now. I have made it my policy to recognize the Jewish people And when I say what Unprofor's costing, I'm talking for their tremendous friendship and their commitment, to about financial terms there . I'm not talking about terms of " state it whenever I can, including in Muslim gatherings, credibility and effectively the Slow destruction of the United ' including to skeptical audiences. And over the net few weeks Nations system itself. I will direct our government policy to extend friendship to [Question about Sen. Robert Dole and his call to lift the any Jewish community around the world, including the Jew­ arms embargo, saying that the lifting of the arms embargo ish community in Israel , to continue the cooperation between unilaterally by the United Statell could foreclosethe possibili­ our people and the Jewish people. ty of a beefed-up force to defund or protect the remaining In this context, I think it is also important to note that safe havens, and asking if h¢ is willing to foreclose that Bosnia is not just a beneficiary of help. Bosnia, given the option by getting the arms embargo lifted .] opportunity to succeed and persevere as a multi-cultural soci­ It's a tough question, of cdurse. And the question really ety , as a society whose survival is dependent on Jew, Chris­ is, to what extent is that option! real? tian, and Muslim alike, would in fact be once again reestab­ It appears it's not very real on the basis of what's hap­ lished as the bridge between religions, between cultures, pened in London, and I have pOinted out in the United King­ between countries, between, effectively, East and West. dom that the call by Prime Minister Major for a meeting of [Question about whether the Bosnian government has foreign ministers and defense ministers in London on Friday been in consultation with the U.N. Security Council.] was a delaying tactic trying to hoid the very steps needed to I have been in consultation with the U.S. administration defend the safe areas. on this point today and over the last several days . As you It certainly is a measure that is intended to allow Zepa to know, on June 28th I wrote a letter to the United Nations die. On this basis, I question Prime Minister Major's integrity Security Council indicating that we are reviewing our con­ on this point, or at least I question his judgment as being sent. I think that letter says it all until such time that I am reckless. prepared to send the final letter, which says that our consent Now, taking those matters into consideration, I think that no longer exists. I have not sent that letter yet, but it may be the only conclusion that we can come back with is that it is forthcoming very, very soon. . . . us who have to do the job. It is we who have to do the job, [Question concerning where Bosnia could get heavy and on that basis, let's not expect anyone to come, as once weapons.] Foreign Secretary Hurd put it, for the cavalry to come around There are numerous sources of weapons, including, of the hill. We're going to have tb be our own cavalry and our course, the United States. The U.S. Congress has contem­ own defenders , and it's best right now that we in fact address plated providing us with defensive weapons, and we would our future in that context. I don't think, frankly, that we are certainly welcome that. Under all circumstances we would foreclosing any options and, as I made clear in the discussion not be looking for, quote-unquote, "advisers" to come to our between the French and oursel\'es, [we] assumed that in fact country and to help us use those weapons. We think that there the Bosnians would carry the bulk of the obligation to defend are weapons out there that we are more than familiar with Gorazde anyway. So what I'm :really asking is to what extent and could be most effective. is it inconsistent to arm the Bosniansto help defend Gorazde, What someone keeps telling us is, "You have basically with the British and French or without the British and French; right now not much more than simple mortars and rifles. Do or effectively, are we in fact going to be the ones left to you know how to use F- 16s?" And the answer is, we just defend the British and Ukrainians there anyway? . . .

44 International ElK July 28, 1995 of Israel as well as the Arab states-promise to overturn British games, and to give actual sovereignty to the nations of the region. In response, Britain, and its assets in the U.S. Rabbis callfo r establishment, have been fully committed to drown the peace accords in blood. Israeli mutiny Rabbi A vraham Shapira, the chief ayatollah of thegroup, is typical of the operatives who are,acting to create a blood­ bath. To understand Shapira require$understanding his men­ by Joseph Brewda tor, Rabbi Zvi Yehuda Kook, who Jreatedthe settlers move­ ment following the 1967 war, when Israel seized the A group of U . S. -based rabbis meeting in Israel has demanded territories. He was also the figure who ruled that Jews had that Israeli soldiers disobey any potential orders to withdraw the religious duty to destroy the Dome on the Rock and Al from the occupied territories. The meeting took place at the Aqsa mosque in occupied East Jerusalem, in order to rebuild home of the former chief rabbi of Israel, Avraham Shapira, Solomon's Temple at the site. the spiritual leader of the expansionist "settlers' movement" Kook's other followers, notably the late Rabbi Meir Ka­ in the occupiedterritor ies. According to their July 12 ruling, hane, the founder of the Jewish Defense League, and Rabbi "The Torah forbids evacuating army camps and transferring Moshe Levinger, founder of the like-minded Gush Emunim, them to gentiles, because it nullifies a commandment." The have repeatedlytried to destroythe islamic holy sites. A paid group, the Union of Rabbis for Eretz Yisrael (biblical Land informant of the FBI and the Brooklyn office of the Anti­ oflsrael), claims that the Torah (thefirst five books of Moses) Defamation League of B 'nai B'rith, Kahaneformed the JDL enjoins Jews to seize and keep that land, which according to in 1968 in Brooklyn in the aftermath of the war. He subse­ themstretches all the way from the Nile river in Egypt to the quently emigrated to Israel with several of his followers, to Euphrates River in Iraq. assist Kook provocations. Israeli Prime Minister Yitzhak Rabin immediately de­ This cultist ideology is not Jewish, as EIR has repeatedly nounced the ruling on state radio. "It is inconceivable that exposed. Kook was an operative of the Quatuor Coronati we will turn the State of Israel into a banana republic," he research lodge of the United Grand Lodge of England, as said. "It's unbelievable that in Israel, a very small number of was his father, A vraham, the first chief rabbi of Israel. The rabbis will take it upon themselves the right to act against the masons, who claim to have built Solomon's temple, see in law. To cali on a soldier to refuse legitimate orders means the mosque's destruction an easy way to ensure generations anarchy. " In earlier remarks to the Davar newspaperprior to of Jewish-Muslim war. The settlers' movement is their asset. the ruling, Rabin termed the rabbis "ayatollahs." President Hollinger Corporation, the owner ofthe London Daily Tele­ Ezer Weizman, a former defense minister, described the rul­ graph and the Jerusalem Post, helps runtheir politicalopera­ ing as "extremely grave," and said it could lead to "civil tions. The group is pushing former Defense Minister Ariel war." Sharon as a would-be dictator over Israel. Israel and the Palestine Liberation Organization have set a July 25 target date for signing a new agreement which Possible killing sprees would lead to an Israeli army withdrawal from part of the Although it is not expected that many soldiers will heed West Bank, as part of a process which will supposedly lead the rabbis' call, the West Bank is full of JDL, Gush Emunim, to a total evacuation and eventual creation of a Palestinian and other armed groups, easily called on to engage in killing state. sprees against Arabs. Last year, the U.S. rabbis convened hundreds of their Kiryat Arba was an appropriate site for last year's meet­ Israeli counterparts in a meeting in the West Bank town of ing of the rabbis. Shortly after their meeting, Kiryat Arba Kiryat Arba to rule that assisting the evacuation of Jewish officialBaruch Goldstei n, a JDLer originallyfrom Brooklyn, settlements would be as sinful as eating pork. entered a mosque in nearby Hebron in February 1994 and killed some 50 Muslim worshippers. Following that inci­ Next stop, Guatemala? dent-which members of Shapiro's group praised-Rabin Prime Minister Rabin's warning of the danger of Israel denounced Goldstein and the JDL as an "errant weed" trans­ becominga "banana republic," is no exaggeration. For all its planted to Israel from "across the ocean" (that is, the United fierce claims to sovereignty, Israel was created as a British States). The Israeli government soon outlawed the JDL and puppet-state to serve British geopolitical aims, most especial­ its affiliates. Later that year, thci Clinton administration ly to keep the region in continuous turmoil and near-war. banned JDL fundraising in the United States and formally Many of the Arab states in the region have had the same role classifiedthe group as "terrorist." Britain and France contin­ and status. The 1993 Israeli-PLO peaceaccords orchestrated ue to refuse Israeli requests to ban JDL fundraising in their by the Clinton administration-so clearly in the true interests own countries.

EIR July 28 , 1995 International 45 The British are orchestrating the destabilization of Jordan by Our Special Correspondent

Although Jordan is routinely portrayed in the press as a model ban. Shortly thereafter, in th¢ first week of June, a man of stability and a cooperative partner in the peace process, a from a leading East Jordanian Ifamily was reportedly killed closer look at the situation in the Hashemite Kingdom reveals by security forces in his home. quite a different picture. Internal tensions have escalated to The man, Mahmoud Al A�amleh, had voiced his criti­ such a degree over the past two months, that a descent into cism of the normalization prOf;ess, from the standpoint of violence, reminiscent of the 1970 Black September crisis, is the Koran, and had sent his ccbnsiderations to the king and not to be ruled out. Now, as then, when government troops to Prime Minister Sherif Zaid iBen Shaker. The correspon­ killed thousands of Palestinians, the domestic crisis is being dent of the German daily FrO(lkfurter Allgemeine Zeitung artfully manipulated by external forces. in Cairo, Wolfgang Kohler, brcjkethe story on July 9, which, Superficially, the Jordanian crisis appears as the result of he said, had stunned the nation. Kohler underlined the im­ the peace treaty with Israel, signed in October 1994. Opposi­ portance of the fact that the �an who had criticized the tion to the peace plan, particularly among Palestinians who government,belonged to a prominent family of East Jordani­ make up 60% of the Jordanian population, and among hard­ ans, who are traditionally the pillars of support for the king. liners ideologically opposed to dealing with Israel, has been Most Jordanians, Kohler wrote, viewed the death as "an strong from the outset. It was temporarily dampened by the execution without trial." The t�e-day funeral assumed the great expectations raised, that the treaty would bring with it stature of a political stateme�t, as mourners, dressed in economic cooperation and, consequently, more jobs and a white, celebrated the dead map as a martyr. higher standard of living in the kingdom. Then, when it became clear that the international financialsupport required Shubeilat seeks a formal! inquiry for vast infrastructure projects envisioned in the treaty was Among the prominent Jorqanians present at the funeral not forthcoming, the hopes pinned on the peace dividend was Laith Shubeilat, a former independent Islamist parlia­ collapsed. Jordanians have seen no improvement in their mentarian, who has been outspoken in his criticism of the living standard, and the general climate of uncertainty re­ manner in which relations wi� Israel have been handled. garding government intentions on the legislative plane has Shubeilat called for a formal iqquiry into the circumstances paralyzed part of the economy. of Awamleh' s death, about wh�h the governmenthas issued The approach of the government and of King Hussein has no official statements. Shubeilat's demands were answered been to push all the harder to speed up the normalization indirectly by a broadside again$t him, authored by the cultur­ process with Israel. Ironically, the more "successful" this al minister, which appeared pr\:>minently in all major press. has been, the graver the crisis has become. Not only has A response penned by Shubeilat and sent to all major newspa­ opposition broadened; for the firsttime , the king himself has pers, has not been published. Ij'urthermore, the king singled been subject to open criticism, and his authority questioned. Shubeilat out for criticism (thOltghnot by name) in the course Furthermore, the confrontation has led to political upheavals of a speech the king delivered to a group of editors-in-chief and obscure deaths. in late June. The criticism levelled against the government and mon­ Other pressures against Sh�beilat have become so great archy concerns the mode in which relations with Israel are that the former parliamentarianistated in an interview with Al being normalized and the manner in which the government Qods that he thought he had to reckon with the possibility is dealing with its internalopposition . On May 29, a meeting that he could be assassinated. i Shubeilat was the victim in of opposition groups which had been scheduled, was abrupt­ 1992 of a juridical frame-up, lorchestrated by the political ly cancelled by the government. Thereafter, Minister of machine of George Bush thrQUgh corrupt elements in the State for Prime Ministry Affairs Ibrahim Izzedrine resigned, Jordanian security apparatus. 1lbe prime minister at the time in what was considered a protest against the government's was Sherif Zaid Ben Shaker, the same who, having returned

46 International ElK July 28, 1995 to that post, is being credited with organizing the wave of Constitution, despite Zaid Ben Shaker's assurances that for­ repression in the country today. eign ownership of land would be subject to certain restric­ Another person emerging, curiously, as a rallying point tions. The fear uppermost in the minds of Jordanian citizens for opposition is Ahmad Obeidat, a former prime minister is that such changes in the law would open the country up and former chief of intelligence for many years . Obeidat for "colonization" by Israel, througb land purchases. Further had lost his Senate seat fo llowing his vocal opposition to legislation, aimed at making the !country more attractive the treaty with Israel, and in early July, was quoted in the to foreign investors and at satisfying the demands of the Texas-based Arab Times attacking Crown Prince Hassan. International Monetary Fund, includes proposalsto lift price Reports of his comments in Jordan prompted him to deny controls on some basic commodities, increase the price of having made any such statements. water for irrigation, and reorganiz� tax law. The arguments put forth by the opposition contain plenty Elections draw protests of merit. The normalization process has been rammed The straw which broke the camel's back was the way the through with little concernfor the subjective factor, cultural­ municipal elections on July 11 were handled. Candidates ly and historically shaped. There is no way to force a popula­ from the opposition Islamic Action Front (lAF) were expect­ tion to embrace its former enemy as an ally, without there ed to pull up to 50%. Instead, they were credited with 3.02%, being any concrete proof that the peace is just, beneficial, amid charges of widespread rigging. The government had and enduring. sent troops into the city of Zarqa, where the Islamists are particularly strong, just prior to the poll. Even government The question of succession presshad acknowledged that the Islamists were poised to win Yet, there is more involved in the Jordanian crisis than hands down in Zarqa, the second largest city in the land, the issues per se. According to well-informed region special­ where they control universities, hospitals, and social and ists, there are factional tensions rippling throughthe institu­ charitable organizations. tions of the Hashemite Kingdom-fromthe securityappara­ In protest, the Islamists withdrew from the election, tus to the government and up to tihe royal family itself­ while the government trumpeted the results as a clear man­ around the question of the succeSISion. It is reported that date "for the normalization process." Formal protests are Prime Minister Zaid Ben Shaker is heading up a faction being lodged in courtby the IAF, which says it has witnesses which wants to overturn current procedures, which would and documentary proof of election fraud, beginning with see power pass to the king's brother, Crown Prince Hassan, discriminatory actions toward pro-Islamists in voter registra­ and have the line of succession run throughthe king's eldest tion procedures. A radical response, including demonstra­ son. Zaid Ben Shaker, who is a rriilitary man, was trained tions and riots reminiscent of social unrest in 1989, has not at Sandhurst, and is considered to be very close to the been ruled out. British. There are two developments cited by analysts to back Comprehensive peace sought up this hypothesis. First, there is the case of the recent As for the substance of the issue of normalization, the coup in Qatar, a tiny emirate on th¢ Persian Gulf controlled main target of critics is a series of legislative initiatives historically by the British. There,: the ruling emir, Sheik pushed by Prime Minister Zaid Ben Shaker. On June 28, the Kalifa Ibn Hamad Al Thani, wasl overthrown by his son opposition failed to block a government bill to repeal the Sheik Hamad, while the former was! absent fromthe country. boycott against Israel, which Jordan, like other Arab states, Among the first measures introduced by the new sheik was has had on the books for decades. Among the demands made a formal change in the rules of succession; instead of having by opponents of liftingthe ban is that a comprehensive peace power pass to the brother of the ruling emir, it should from agreement be reached, including fulfillment of U.N. Resolu­ now on pass down to the eldest son. The peaceful palace tions 242 and 338, regarding the return of occupied land to coup in Qatar has been widely interpretedas a British-backed the Palestinians. The population more broadly is questioning move to establish a precedent in the region, among other the wisdom of liftingthe Israeli boycott, while an internation­ things. It is known that Hamad, also a Sandhurst graduate, al embargo against Iraq remains in place. King Hussein has was in London two weeks before be seized power, and that been repeatedly outspoken in his demand that the sanctions the British Crown and British gov¢rnment were the first to against Iraq be lifted, most recently during a state visit to recognize the new leader. The change in succession rules Paris. has profound implications for American ally Saudi Arabia, Even more controversial is the government's draft law which is already in the throes of ai succession crisis. It has which would make it legal for Israelis to purchase land in been mooted that the Qatar events could be used in Jordan, Jordan. IAF parliamentary spokesman Hamzeh Mansour to justify a similar move. charged that the law would mean "ceding" territory to Israel. Second, King Hussein has been spending an inordinate Others have charged that the provision would violate the amount of time 0.utside the country, primarily in London,

EIR July 28, 1995 International 47 leading to speculation about his state of health. Just weeks ago, there was the unusual situation, when the king, the crown prince, and the prime minister were all out of the country at the same time. The person given powers in the interim was the king's son. Furthermore, it has been made public that a palatial estate nearing completion after years Amn Intl, of construction near Vienna, is the property ofKing Hussein. esty still Does he plan to withdraw to this residence, perhaps after having handed over power? tryingto save The escalating confrontationinside Jordan must be view­ ed in the context of other dramatic shifts towardconfronta­ Peru's Sh�ingI Path tionism in the region in the past weeks. First, in order of by Gretchen Small time, was the assassination attempt against Egyptian Presi­ dent Hosni Mubarak, which catalyzed an anti-Sudan cam­ paign from Cairo. Then, the Algerian government brokeoff In its 1995 Report, released tCil the world public on July 5, talks with the Islamic Salvation Front (FIS), the opposition Amnesty International singled out Peru as one of the five Islamist party, and an eighty-five-year-old co-founder of the or six worst human rights vioilltors worldwide, alleging the FIS was murdered in a Paris mosque. Both moves conform practice of "severe and systematic human rights violations" to the strategy elaborated by British geopolitical think-tanks, by its government and militahr, and the unjust jailing of for so-called warsof the "North" against the "South," under thousands of "political prison�rs" by illegitimate courts. the rubric of an assault on "Islamic fundamentalism." As Peru is, at last, largely at peace, for the first time Britain's anti-Islam strategy foresees the outbreak of since Pol Pot's allies in Shining Path launched their terrorist chaos along the entire Mediterranean, from North Africa war in 1980, Amnesty's wildlyifraudulent allegations against into the Middle East, and eastward through the Gulf into Peru constitute an internation.l scandal. The "prisoners of the Indian subcontinent. In such a perspective, hopes for conscience" who Amnesty dc;mands be "immediately and a durable settlement to the Arab-Israeli conflict, through unconditionally" released, � precisely the Shining Path mutually beneficial economic cooperation, must be dashed terrorists defeated by Peru's Armed Forces. Amnesty Inter­ by all means. Chaos is the name of the game, chaos leading national, that front for the �ritish Foreign Office which to economic and social disintegration, and demographic de­ parades as the world's premi�r human rights "non-govern­ cline. mental organization," is still mobilizing to resuscitate Shin­ One local variant of the British plan for chaos entails ing Path, one of the worst gangs of "killers and torturers" civil war breaking out among the Palestinian population in known in the 20th century. the autonomous areas and the occupied territories. Such internecine warfare, sparked by opposition to the Gaza­ Revealing timing for Amnesty's attack Jericho arrangement, would quickly spreadinto neighboring Amnesty ran cover for Shining Path throughout 14 years Jordan, whose population is largely Palestinian. In the eyes of war, but the utter absurdity of its listing Peru, today, in of extremist Zionists like Benjamin Netanyahu and Ariel this world, as a human rights crisis, reveals the depth of Sharon, this process would be the prelude to wholesale hysteria which reigns in the British Foreign Office over the expUlsion of the Palestinian population into Jordan, since, collapse of the project, for whi�h Shining Path was the instru­ in their jargon,"Jordan is Palestine." Neither the West Bank ment, to rip Peru into pieces. Palestinians, who rightfully demand sovereignty over the PresidentAlberto Fu jimori, who led the defeat of Shining land which has been taken from them through force, nor Path, beginshis second termin officewith a mandate provid­ the East Jordanians, who wish to maintain a position of ed by 65% of the Peruvianelectorate . Worse, from thestand­ hegemony within Jordan, would accept this. point of London, is that the <::linton administration is now Jordan has entered a perilous spiral of radicalization, working with the Fujimori gpvernment to crush the dope whereby opposition is being met with repression, which in trade's extensive tentacles inside the country, providing Peru tum, is fuelingradical response.To steer the currentlyunsta­ with radar, intelligence collaboration, and possibly military ble situation away from its course towardviolence, requires equipment. The U. S. cooperation effectively ends the Fuji­ a rare quality of leadership:the ability to rise above domestic mori government's status as an international pariah state, intrigues to view ongoing processes from the standpoint of which Britain's friends in the Bush administration had or­ the global, strategic picture, and to act with full sovereignty chestrated. in the long-term, historic interests of the populations of the Either Amnesty "knows absolutely nothing about Peru's region. reality, or it has other intentiqns. To say that [Shining Path

48 International EIR July 28, 1995 chief] Abimael Guzman is a prisoner of conscience is com­ is only part of a broader offensive against the Fujimori gov­ pletely outside reality," President Fujimori responded, as ernment. Peru'sEl Comercio reportedon July 8. Speaking before the Dissecting Amnesty's anti-Pe� campaign provides a Army's Military School in Chorrillos two days later, the useful lesson forother governments, as it typifies the modus President noted Amnesty's designation of terroristsas "polit­ operandi employed by this British 110reign Office hit-squad ical prisoners" has been applied against other countries. "It against developing sector nations generally. appears that it is enough for some people that a terrorist says that he has an ideology for him to cease being a vulgar Justified war saved lives assassin. This is a strange concept which they attempt to Start with a brief review of Peruvian reality. From 1980 apply in generally undeveloped countries." until April 1992, the Pol Pot-alli� Shining Path terrorists "If theArmed Forceshad not supported a plan ofnational conducted what they characterized �s "total war" against all emergency and reconstruction, today there would be no de­ civilized life in Peru, increasing in territorycontrolled, pe0- mocracy in Peru. That is the truth," the President affirmed. ple enslaved, and institutions infiltJlted with increasing im­ He asked if those, who today denounce the government's punity throughout that period. In the firstdo�n years, Shin­ alliance with the Armed Forces as a "civic-military govern­ ing Path killed over 20,000 people; their le�rs spoke of ment" or militarization of society, would also call the prior inflicting 1 to 2 million deaths, if rels, lawyers, the media gling operation," the general explained. were no longer protected zones wbere terrorists could act An assault by 12 armedmen upon the headquarters of the with impunity. Air Police in Lima's Jorge Chavez International Airport on Within 18 months of those actions, the Peruvian Armed July 9, one half-hour before President Fujimori's plane was Forces had stopped the mass killing and tortur6, crushing scheduled to land in that area, signals that Amnesty's interna­ Shining Path with remarkably fe� resources, and with a tional campaign for the narco-terrorist apparatus inside Peru minimu� of bloodshed. The back otlthe insurgency hadbeen

EIR July 28, 1995 International 49 broken, with over 85% of Shining Path's leadership jailed or when operating in terrorist territory, and suspendfrom active killed-most of them were jailed. There was no "scorched service any officer against whom any allegations of "abuses" earth" policy, no razing of villages, but an all-out military had been made. Any such list !wOUld have been nothing but campaign which crushed the terroristapparatus as a whole. a hit-list for Amnesty's terrorist allies. The "human rights investigators" with whom Amriesty worked wereopen advo­ Amnesty's unbroken record cates of Shining Path's "right" to wage war.Amnesty reports The Foreign Office's Amnesty International, joined by cited as its "respectable" soutces the likes of United Left George Soros's Human Rights Watch/Americas, had spent Congressmen Javier Dfez Canseco and Rolando Ames. Dfez years working to prevent the terrorists' defeat. They were Canseco insisted that because Shining Path carried "national never "neutral observers" of the war, but rather partisans in weight," they should be included in any "political solution," the conflict--on the side of Shining Path. From Day One, because, as he told Caretas magazine in 1983, they used their propaganda carried the Goebbels-like Big Lie that the "guerrilla action and . . . mass actions . . . demonstrating government and military of Peru were primarily responsible that the political phenomenonl which we have at hand is a for the deaths occurring in the country, and sought to restrict frontal rejection of governmentpolicy ." Amnesty's collabo­ any military or police action to stop the terrorists. They de­ rator, Ames, told El Nacional1in 1986 that he considered it manded an end to the emergency zones (major areas of terror­ "urgent to fight against the ris� of satanizing" Shining Path, ist activity placed under military rule), and listed in their and "one of the gravest errors would be to treat Shining Path catalogue of "human rights violations" the measures adopted as terrorist criminals. " in those zones, such as the maintenance of roadblocks and identity checks, restrictions on freemovement and assembly, A 'right' to practice terr;orism? and military searches of homes without prior court order-all As the 1995 Report shows� Amnesty still refusesto con­ internationallyrecognized standard conduct under conditions sider Shining Path as "terroristcriminals ." Now the Peruvian of war. Arrests of Shining Path militants operating in trade government is to be attacked for eliminating the "right" of unions-Amnesty launched a whole mobilization on behalf the terrorists to practice terrori$m. of SUTEP leaders-were denounced as ipso fa cto violations The cutting edge of Amneaty's attack today is aimed at of civil liberties. the special anti-terror courts and legislation which ensured Amnesty deployed to cut off international assistance, captured terrorists remained b¢hind bars. If Amnesty's pre­ military and financial, to the Peruvian government, by pres­ scriptions were carried out, evek-ylast terrorist, fromAbimael suring foreign governments. With Shining Path maintaining Guzman on down, could be free tomorrow. Amnesty de­ an "Embassy" in London, and the Bush administration join­ clares the secrecy of the special1war-time civilian and military ing the attack on the Peruvian government, Amnesty's cam­ courts, ipso fa cto grounds for �ismissal of all convictions of paign to cut aid succeeded. terrorists. Often, Amnesty's campaigns were timed to coincide with The report raves that "at l�ast 4,000 political prisoners Shining Path military offensives. A striking example of this awaited trial or were tried under judicial procedures which occurred in the period from July to November 1991, when continued to fall far short of international standards," and Amnesty and Americas Watch launched a coordinated, protests that "thousands of political prisoners charged with worldwide, anti-aid offensive which succeeded in getting the terrorism-related offenses were brought beforesecret civilian U.S. Congress to freeze all aid to Peru, including economic and military courts." The British hit-squad denounces the and humanitarian, precisely as Shining Path began a new Repentance Law, charging th�t any evidence obtained from military campaign featuring a wave of assassinations of for­ other terrorists collaborating With the government under its eign priests. terms, is "uncorroborated evidence . . . used by the courts As the Fuj imori governmentattempted to get Peru's Con­ to secure the conviction of political prisoners. " gress to pass needed anti-terror legislation, Amnesty esca­ Amnesty reiterates that it '1appealed to the authorities on lated, placing a full-page ad in the New York Times on Nov. numerous occasions to release all prisoners of conscience 18, 1991, which was rerun in Peru's three major newspapers, immediately and unconditioDl(lly." It protests that the gov­ denouncing the government as the world's greatest violator ernment "did not accede to a renewed appeal by the leader­ of human rights! Amnesty spokesmen announced that nation­ ship of the Peruvian CommuniSt Party (PCP) [Amnesty uses al organizations in 150 nations around the world would cam­ the name by which Shining Path prefers to call itself-ed.] paign for Peru to turnagainst its Army as the enemy of human to reach a 'peace accord,' " and continues to maintain emer­ rights. gency zones in some areas of the country despite "fewer In 1989, an Amnesty report had demanded the govern­ armed attacks" by terrorists. They protest that Army officers ment turn over to"human rights investigators" the names and have not been subjected to mass trials for the conduct of the identities of all military men engaged in any counterinsurgen­ war. cy patrols, forbid them from wearing camouflage or masks In short, they want the out¢ome of the warreversed .

50 International EIR July 28, 1995 i Chirac restarts nuclear tests to protect the'h igher interests' of France by Christine Bierre

Barely over a month after being elected President of the President Chirac during their las( Strasbourg summit. As Republic, Jacques Chirac announced solemnly, during a could be expected, the British colonies in the Pacific,Austra­ press conference on June 13, his sovereign decision to bring lia and New Zealand, have declared a crusade against the to an end the moratorium on French nuclear tests enacted by French tests. former President Fran<;ois Mitterrand in April 1992, and to restart a series on nucleartests in the Pacific. Anglo-American inspired 'Peaceniks' The President announced that the new series of tests What is really behind this uproar? Who are these would be limited to eight. They will start in September of peaceniks so deployed against the lirench tests? Just as when this year and be concluded by May 1996, just in time to sign de Gaulle confirmed France's decbion to develop its own the new international treaty banning all nuclear tests, which independent nuclear deterrent, the so-called "pacifist" move­ France remainscommitted to signing. The tests are necessary ments have been deployed internatipnally under orders of the to guarantee "the sureness, the security, and the viability of Anglo-American "arms control lo\!>by," not for the sake of thedeterrence upon which our defense and our independence "peace," but in order to maintain an IAnglo-American monop­ is based," and for France to be able "to move toward the oly over nuclear weapons and to stdp any other country from phase of laboratory simulation," he stated in justifying his possessing the bomb. decision. Chirac stated that his decision was "irrevocable" One look at the friends of Greeripeaceconfirms this anal­ and taken after "much reflection and extensive consulta­ ysis. Greenpeace's president in Great Britain is Peter Mel­ tions." "It is necessary" for the "higher interests of the na­ chett, the grandson of Lord Melchett, founder of Imperial tion," he said. Chemical Industries. How is Greenpeacefinanced? The func­ The announcement of his decision immediately provoked tioning credits for its fleet were raised at an art exhibit orga­ a massive uproar internationally, as could be expected. All nized by the aristocratic Sotheby's in Zurich, Switzerland thegreen and pacifistmoveme nts, headed up by Greenpeace, last January, under the heading of "Art for Our Planet. " are mobilized in an attempt to force France to reverse its To understand fully what the aims of the arms control decision. The demonstrations in front of French consulates lobby are, one must go back to Bertrand Russell and certain and embassies around the globe, the petition campaigns, Anglo-American elites' justification for the bomb, as the and other such types of actions are, at this point, countless, ultimate weapon, to be in the possession of a "one-world according to press reports. The deployment of Greenpeace' s government" dictatorship, capable of terrorizing the entire ship Rainbow Warrior to the Mururoa Atoll in the Pacific world into submission. It was to fight against such one-world where the tests are to take place, and its subsequent detaining dictatorship, operating at that time in an Anglo-American by the French Navy, have catalyzed the supportof a powerful condominium with the Russians, tihat de Gaulle decided to international "pacifist"movement. build an independent nuclear force. This was at that time, On the official level, similar to when President Charles and remains today, the very condition for France, or for any de Gaulle said in July 1958 that France would carry out its other nation in the world, to assert national sovereignty. firstatomic tests in early 1960, the majority of France's allies It is interesting to note to what extent Chirac's decision have lined up against her. The United States characterized has provoked an uproar similar to that which met de Gaulle's, the French decision as "unfortunate," while Italy, Spain, even though France today is already a nuclear power and the Benelux countries, Norway, Finland, and others have Chirac's decision is only a continuation of what has been expressed their reprobation. In Germany, even though the traditional French policy for more than 30 years. initial position of the government was that this was "France's sovereigndecision ," pressure from the opposition partieshas Why the tests are necessary been so intense that Secretary of State for Foreign Affairs Why are those tests really necessarytoday? The argument Helmut Schaefer condemned the decision publicly, while of many opponents that, because Qfthe fall of communism, Chancellor Helmut Kohl transmitted a message of regret to it is no longer necessary to continue the modernization of .

EIR July 28, 1995 International 51 "simulation" one should rather talk about "modernization." More important than these two official reasons for restart­ ing the tests, is the necessary continuous evolution of weap­ ons systems, as long as we remain in the nuclear age. Barthel­ emy addressed another crucial problem in this respect: "France and perhaps the Chinese are in a different position relative to other nuclear states. . . . France is currently devel­ oping the M 5 missile [which will replace all the submarine missiles] and had not yet chosen what its power will be. The United States and the United Kingdom have the Trident II; the Russians, the SSN 24, [and] therefore do not need a new weapon." In this context, scientists and military officialsare also pressing the state to develop a miniaturized bomb in order to threaten weaker powers thatnonet heless have nucle­ ar weapons. These air-land, long-range missiles would allow for surgical strikes from several thousand kilometers. These are the reasons why continued testing is necessary, and some expect that at the upcoming negotiations in 1996 to define the treaty that will ban all tests, the French will plead in favor of the continuation of miniaturization tests of less than I 00 tons yield each. Already the eight tests which will be conducted in the Pacific are less than 150 kilotons. Tests under 100 tons do not even show up in a seismograph.

Politically important French President Jacques Chirac is showing signs of The real importance of Chirac's decision to restart the independence from the "arms control lobby" and the anti-nuclear tests, is political. The question is whether the French Presi­ crowd. dent will be able to renew a Gaullist policy of national inde­ pendence vis-a-vis the financialelit e which is presently ruling nuclear forces, is ridiculous. The present massive economic the world for the worse. Will Chirac break with the rules of crisis is the kind of context which has always led to war. the international game, run by a corrupted financial elite? Add to that the fact that Russia, the second world nuclear Regardless of all the limitations of the new President, superpower, has suffered a humiliating political and econom­ there is definitely a potential that he will renew some of ic setback under so-called shock therapy, and we have the the better aspects of that Gaullist tradition. His statements ingredients for a new world conflict. against International Monetary Fund policies in the Third Are those tests necessary for the modernization of the World; against financial speculation, for being the AIDS of French nuclear forces? The French governmenthas indicated the present monetary system; his fight to win the Presidency that it will not be testing new weapons, but only dealing with in favor of a renewed policy of social Gaullism, against problems connected to the aging of the present systems which the most aristocratic rule of his main contender Edouard need replacement, and gathering data that will be used for a Balladur, are signs that Chirac might just come out from computer simulation model of tests. The French claim that under the control of those international circles defining the they are far behind the United States in this latter respect and rules of the game. It is in this context that his decision to have to catch up. Some claim that once the simulation models counter the international community on the question of the are elaborated, there will be no need for further nuclear tests. nuclear tests, to go against the international consensus de­ There is some speculation, however, over whether these fined by the arms control lobby, is extremely significant. If are the only aims of the new series of tests. Can computer the President of France "bucks the system" in that respect, simulation replace actual testing? This seems unlikely. Even could he not also buck it in the Balkans and regarding matters "peaceniks" such as the American Richard Garwin declared, of international financialpolic y? according to the July 14 Liberation, that "it would be irre­ Many have said that they would rather see more courage sponsible to put into place a sophisticated weapon without in the Balkans against Serbian genocide, than in the Pacific. having tested it." The paper quoted engineer Laurent Barthel­ Still, the courage in the Pacificcould be crucial to developing emy, assistant director of the Delegation of Strategic Affairs the same kind of independence on issues which are perhaps at the Defense Ministry, saying that "it is false to suggest more at the heart of the present crisis, such as the war in the that simulation could replace the tests," and that instead of Balkans.

52 International EIR July 28, 1995 in supplemental elections nor in a second electoral roundthat is scheduled for Aug. 13. Those joining the boycott include the Haitian Nationalist Progressive Revolutionary Party (Panpra), whose leader Duly Brutus, former speaker of Haiti 's Chamber of Deputies, Bankers threaten was jailed after the June 25 elections by the Aristide regime and charged with torching an elect()ral office. The National Haiti, Dominican Rep. Front for Change and Democracy also joined the boycott;its leader Evans Paul had been seen as Washington's preferred successor to Aristide, but lost the mayoralty of the capital, by Carlos Wesley Port-au-Prince, to pop singer Charlemagne Peralte. Reports that Suzie Castol-the wife of Lavalas's chief The Dominican Republic will be given the Haiti treatment­ and campaign manager, hard-line communist Gerard Pierre i.e., invaded-unless President Joaquin Balaguer abides by Charles-is in line to be the next prime minister, and moves the terms of the so-called Pact for Democracy and leaves by Aristide's supporters to extend . his mandate three more office next year, threatened Michael Skol, U.S. Assistant years, to make up for the time he spent in exile following his Secretary of State for Inter-American Affairs, in a July 10 overthrow by Haiti's now-dissolved Armed Forces, are also interview on CNN Spanish-language news service. The contributing to the Dominicans' reluctance to carry out the United States is fully behind the pact and Dominicans should Pact for Democracy. reflect on what happened to Haiti, said Skol. "What the Dominicans historically have feared domination by Hai­ international community, particularly the inter-American ti, the country from which they gained their independence. community, did against the Haitian generals and colonels, Aristide is seen as particularly threatening, and with good should be a lesson for everyone." reason. He engaged in hostile behavior towardtheir country The pact forced the Dominican Republic, which shares before his overthrow, and his mental stability is questionable. the islandof Hispaniola with Haiti, to amend its Constitution After all, this is the man who in his autobiography declared overnight. It halved theterm for which Balaguer was elected, himself an admirer of Robespierrei and the other leaders of fromfour years to two, barred him from running again, and the Reign of Terror during the French Revolution. forced the holding of new elections on May 16 of next Dominicans particularly fear that if PeiiaG6mez comes year. Skol helped to ram the accord down the throats of to power in their country while Haiti is under Aristide (also the Dominicans last year, claiming that the defeat in the a member of the Sao Paulo Forum, whose restoration to Presidential elections of Jose Francisco Peiia Gomez was power last year was championed by the lAD), it will leadto due to fraud. the fusion of the two countries, a plot hatched in Great Brit­ The plan is for Peiia G6mez, a member of the pro-drug­ ain, as President Balaguer charged in his inaugural speech legalization bankers' think-tank the Inter-American Dia­ last year. logue (lAD), to win thistime. Once in power, PeiiaG6mez, A high-level Dominican source ;said recently , "'Theonly who is also a vice president of the Socialist International reason Balaguer would scuttle the Pactfor Democracy is if and an ally of the Sao Paulo Forum, the Cuban-spawned Aristide remains in office. In that case, Balaguer will not narco-terrorist umbrella grouping, is expected to implement leave power. " the lAD agenda of British free trade economics, destruction What is happening in Haiti ought to cause the Clinton of the armed forces, and drug legalization in the Dominican administration to stop permitting the lAD to set U.S. policy Republic, just as is happeningon the other side of the island, for the Dominican Republic, before both sides of the island in Haiti, under the defrocked priest Jean-Bertrand Aristide. are plunged into civil wars. Also at stake are Bill Clinton's reelection chances. As the Financial Times of Londonnoted, Haiti: Aristide makes power grab not without glee, on July 17, "Mr. Clinton would bepolitical­ Theoverwhelming victory claimed by Aristide' s Lavalas ly embarrassed if Mr. Aristide were to stay on now." party in the parliamentary and municipal elections held on When the Clinton administration has removed the lAD June 25, was seen by Haitians and Dominicans alike as the from the driver's seat in the past, there have been marked firststep by Aristide to remain in power past next year, when benefits to the best interests of the United States. Such is the his term expires. Nearly every political party in Haiti has case with Peru, where the United Stlates has been collaborat­ called for annulling the elections, charging fraud, and even ing in the war on drugs with President AlbertoFuj imori (see Jimmy Carter's Carter Center representative, Robert Pastor, p. 48), despite the lAD's protestations about his "authoritari­ asked the Clinton administration · to withhold its approval an" rule. Also in Colombia, where pragmatic collaboration because of the widespread irregularities. Most of Haiti's top has won some significant victories against the Cali cocaine politicalleaders have announced that they will not participate cartel this year.

EIR July 28, 1995 International 53 which, "not without its share of mistakes," is judged "sub", Vatican stantially a positive one." The "journey must go on!" he proclaims, "through an effective and intelligent campaign for the promotion of women'1 starting with a "universal recognition of the dignity of women. Our ability to recognize this dignity, in spite of historicW conditioning, comes from 'Genius of women' must the use of .reason itself, which is able to understand the law be of God written in the heart o� every human being. More issue in Beijing than anything else, the Word of God enables us to grasp clearly the ultimate anthropolo�ical basis of the dignity of In a papal letter released on July 10 at the Vatican and ad­ women, making it evident as .part of God's plan for hu­ dressed "directly to everywoman ," John Paul n sets straight manity." what the issues at the United Nations-sponsored Fourth World Conference on Women in Beijing should be, ac­ Mandate of Genesis to both sexes cording to the Catholic Church. While world media have "The Book of Genesis," the pope writes in the sixth chap­ focused on the pontiff's condemnation of "aggressive male ter, "speaks of Creation in summary fashion, in language behavior," other key aspects have been disregarded by the which is poetic and symbolicJ yet profoundly true: 'God press. The pope rejects the feminist irrationalist conception created man in His own imag�, in the image of God He of women and resituates woman's liberation in the context created him: male and female tIe created them' (Gn 1:27). of imago Dei (the image of God) and reason, which are the The creative act of God takes place according to a precise common gifts of men and women. plan. First of all, we are told th*t the human beingis created The Beijing conference"provides an auspicious occasion 'in the image and likeness of GO«' (cf. Gn 1 :26). This expres­ for heightening awareness of the many contributions made sion immediately makes clear what is distinct about the hu­ by women to the life of whole societies and nations. This man being with regardto the rest of creation." contributionis primarily spiritual and cultural in nature, but The letter implicitly refutes ¢fforts led by Britain's Prince socio-political and economic as well. The various sectors of Philip to reshape Christianity ®d other major religions as society, states, national cultures and, the progress of the all Mother Earth-worship. In chapter 8, the pope writes: "After humanity, are certainly deeply indebted to the contribution creating man male and female! God says to both: 'Fill the of women!" earth and subdue it' (Gn 1:28).iNot only does he give them Later on, the pope writes: "You can see, then, dear sis­ the power to procreate as a means of perpetuating the human ters, that the Church has many reasons for hoping that the species through time, but He alsp gives them the earth, charg­ forthcoming U.N. conference in Beijing will bring out the ing them with the responsible! use of its resources. As a full truth about women. Necessary emphasis should be rational and freebeing , man is oalled to transform the face of placed on the 'genius of women,' not only by considering the earth. In this task, which is essentially that of culture, great and famous women of the past or present, but also those woman and man alike share equal responsibility from the ordinary women who reveal the giftof their womanhood by start." placing themselves at the service of others in their everyday The "genius of women" is God's plan, writes the popein lives. " chapter 10. "It is thus my hOI*, dear sisters, that you will "I think," the popewrites in the thirdchapter of his letter, reflect carefully on what it means to speak of the 'genius of "particularly of those women who have loved culture and art, women,' not only in order to be able to see in this phrase a and devoted their lives to them in spite of the fact that they specific part of God's plan wh.ch needs to be accepted and were frequently at a disadvantage from the start, excluded appreciated, but also in order to let this genius be more fully from equal educational opportunities, underestimated, ig­ expressed in the life of society as a whole as well as in the nored and not given credit for their intellectual contributions . life of the church." He pointed to Christ's mother as "the . . . To this great, immense 'feminine' tradition, humanity highest expression of the 'feminine genius' " and "a source owes a debt which can never be repaid." of constant inspiration"; the Wpe explains that the Virgin Declaring that both "justice" and "necessity" require the Mary is invoked as "queen of heaven and earth" by "many removal of all obstacles which prevent the full integration nations and peoples" because "for her, 'to reign' is to serve" of women into social, political, and economic life, the head and "her service is 'to reign.' "I of the Catholic Church underlines, "We need only think of "This is the way," he writdS, "in which authority needs how the gift of motherhood is often penalized rather than to be understood both in the family and in society and in the rewarded, even though humanity owes its very survival to church. Each person's fundamental vocation is revealed in this gift." this 'reigning,' for each person has been created in the 'im­ The pope then praises the fight for women's liberation age' of the one who is Lord of the Heaven and earth."

54 International EIR July 28, 1995 Reportfr om Bonn by RainerApel

Trapped by British geopolitics "provocations" against the Serbs. A "web of lies is at work on a global scale, " and Germany is Yes, the main problem is Bosnian Serb leader Radovan Karadzic, natu­ failing to act against genocide in the Balkans . rally, she said, but it is the "obsession" of the Bosni�s to reconquer their , lands by military force, which will not Mr. Major is talking of the war­ foreign policy advisers at the Institute and cannot worJ.<,but will only lead to ring parties. But who are they? The of the Foundation of Science and Poli­ a long and bloody war. Calic said this Bosnians, who have been disanned? cy (IWP) in Ebenhausen. Its staff is at the time wh�n the Geneva "peace Terms are being used here that are working on the basis of anglophile talks" group under Lord David Owen pure lies. A web of lies is at work on geopolitics, as its director, Michael tried to coerce Bosnia's leaders to ca­ a global scale." These comments were Srurmer, has made clear in inter­ pitulate to the pro-Serbian design for by Christian Schwarz-Schilling of the views, statements, and essays. a carved-up Bosnia that only left the Christian Democratic party, in an in­ The IWP is interwoven with �he six separated enclaves to the Bosni­ terview on July 13 with the daily Ber­ U.N. machinery. For example, in Jan­ ans. It was clear to every sane person, liner Zeitung. It is one of the harshest uary 1995, one of its staffers, Marie­ that the diplomats who designed this statements that has come fromthe po­ Janine Calic, was appointed to the ad­ ill-born concept of "Bosnia" would litical establishment in Germany in visory staff of U.N. Special Envoy one future day also sacrifice these en­ the recent period. Yasushi Akashi. Asked about the claves. Schwarz-Schilling, a former post­ "rapid reaction force" that had just The July 1 � Berliner Zeitung re­ al affairs minister who quit Chancellor been proposed by the French and the vealed a detail about the diplomatic Helmut Kohl's cabinet over govern­ British to "restructure" the U.N. blue betrayal of Bo$nia. It described how ment inaction against the Serbian helmet force in Bosnia, Calic told the in late June, French Gen. Bernard Jan­ genocide against Bosnia, has repeat­ weekly Die Woche on June 9 that it vier and Serbian rebel Gen. Ratko edly over the past two years attacked would be much better to define a Mladic discussed Serbian "permis­ the British role as crucial in the sabo­ "new," reduced mandate for the U.N. sion" for relief convoys to pass tage of any viable solution to the war. blue helmets: through to the 'Bosnian enclaves. At What he proposed in the inter­ "We should say farewell to some this time, British Gen. Rupert Smith, view, is diametrically opposed to the objectives that are too far-reaching. Janvier's superior, already had on his official government view: "First, the The present mandate poses tasks that desk a secret memorandum about the United Nations should withdraw with­ the U.N. cannot carry out: For exam­ coming Serbian attack on Srebrenica. out delay. The Bosnian troops have to ple, the concept of the safety zones As the papJr noted, Janvier failed be supplied with anns. They must be was not well thought out. Its aim was to get permission, but another French enabled to defend themselves. Sec­ to protect the civilian population. In military officer signed a deal with ond, the U.N. must end the fiction of reality, however, strategically impor­ Mladic that brought a few reliefgoods non-partisanship. We should not run tant objects are situated there , and the to the enclaves Ishortly before the Ser­ after the criminals in Pale [headquar­ [Bosnian] governmentArmy has used bian attack began. That officer was ters of the Bosnian Serbs] with ap­ them as a staging ground for offen­ Gen. Andre S

EIR July 28, 1995 International 55 InternationalIntellige nce

State's evidence, has been the key figure in of a joint pperation between the Algerian Nigerian minister warns accusing many Italian politicians of com­ secret serv1ices and the "anti-fundamental­ British oil companies plicity with organized crime. ist" French,circles close to the military hard­ Repubblica's article wonders whether liners in A!Igeria. The use of sophisticated the DOJ's Criminal Division is "under the Petroleum Minister Dan Etete summoned to silencers, lind the fact that Sahroui was shot orders of Republican conservatism, as his officethe heads of British Petroleum and inside a m�sque, are further clues pointing LaRouche states," or, as others believe, "a Shell on July 17 and warned them that their to a secret �ervice operation. politically self-sufficient division, a typical operations in Nigeria could be jeopardized, loose cannon of the State apparatus." if Britain keeps up its criticism of Nigeria's Keeney's associate Mark Richard, reports military rule and "human rights" record. Be­ Green , peaceniks Repubblica, was responsible for creating tween them, the two companies liftmuch of J the Officeof Special Investigations, and ran sabota e Chirac sp eech Nigeria's 1.9 million barrels a day in oil "the coverup of evidence against George f production. Bush and Oliver North's intelligence net­ Greenpeacb and the anti-nuclear lobby's in­ He criticized "the unfriendly posture of works." ternationall campaign against the renewed the British govemment and its general atti­ Repubblica describes the Keeney-Rich­ French nu4lear tests in the Pacific escalated tude" toward the government and people of 1. ard grouping as "neo-McCarthyite" and on July when greenies and other anti­ Nigeria. Said Etete: "In as much as our doors "part of the J. Edgar Hoover complex" nuclear aC Vists sabotaged Jacques Chirac' s are open to foreign investors, we will not be which was at the center of the coverup of speech at e European Parliament in Stras­ dictated to by anybody nor allow our sover­ political assassinations from JFK to Martin bourg. In ddition to trying to end the eight eignty to be subjected to slavery." � Luther King, as well as Italian leaders En­ nuclear te ts scheduled by the French, the According to BBC, Etete singled out for rico Mattei and Aldo Moro. real goal 0 the anti-nuclear lobby is to bring attack Baroness Lynda Chalker, Britain's to an end tlte Gaullist "exception" (national colonial minister in her capacity as head of sovereignty) which still lingers on in the the Overseas Development Administration. domain of �efense. Chalker and other British officials have Cleric's assassination Greeni�s and peaceniks organized a nas­ threatened that Nigeria could finditself sus­ ty receptiqn for Chirac, who had come to pendedfrom the Commonwealth. not in Algeria's interest make a sPfech on the accomplishments of the Frencli chairmanship of the European Just as the Algerian government was an­ Union. Grj!en deputies and their assistants, Italians interested in nouncing that negotiations with the Islamic as well as preenpeace activists, distributed Salvation Front (FIS) had failed, Abdelbaki a "Strasbo g call" against the nuclear tests, U.S. DO} purges Sahroui, an 80-year-old Imam who was one and as Chi ac started speaking, amid general of the founders of the FIS, was assassinated booing an noise, many deputies pulled out II. t A Rome-based news agency, Repubblica, in Paris on July umbrellas ith nuclear mushroom clouds on has published a long article on the "rogue The assassination of Imam Sahroui, the them. Marjyof the deputies boycotted a lun­ apparatus of John Keeney and Mark Rich­ intermediary between FIS and the French cheon witllChirac. The only interesting crit­ ard" suggesting thatthe political shiftin Ita­ government, can only make matters worse icism of Chirac in this context were banners ly against the "Clean Hands" probe, which for the North African country of Algeria, which read something like "more courage in has been devastating traditional parties and which has been plunged into what amounts Bosnia, nqt in the Pacific!" politicians for the last three years in Italy, to civil war since 1992. may reflect the purges initiated by the Clin­ Responsibility for the Imam's death was I ton administration against the permanent claimed by the radical Armed Islamic Group Mexicf,ln pa per betrays bureaucracy of the Department of Justice. (GIA) , which had attacked Sahroui by name Repubblica reflects the views of some in its newsletter El Ansar on May 12. GIA fe ar oj LaRouche intelligence sectors in Italy. The July 7 arti­ also included Rabeh Kabir, the FIS repre­ I cle cites EIR and the Schiller Institute as sentative in Germany, and three other FIS The July ,0 edition of Mexico's business sources for its analysis. It reports that John leaders, on its list of people it would like to daily El I1inanciero ran a diatribe against C. Keeney, deputy assistant attorneygener­ see eliminated. Lyndon 4!Rouche, and Congressmen Ali al, "is the character in charge of managing The GIA is infiltrated by the Algerian Cancino Herrera and Walter Le6n Montoya, the various Buscettas ...delivered to pros­ government and some elements of the who recently toured Europe "in association ecutors and special police of our country." French intelligence community, hence, with the S6hiller Institute, the cultural arm Tommaso Buscetta, a mafia boss turned Sahroui's murder could have been the result of the LaRouche sect." Among other wild

56 International EIR July 28, 1995 Brifdl.y

• RATS art proliferating through the British water system, thanks to combined priyatization and cost-cut­ ting, reportedlthe July 16 London Ob­ charges, the article, written from Germany, main as one of the saddest chapters of Euro­ server. Grah$IIl Jukes, co-author of says that LaRouche was involved in the pean history. " the June 199$ National Rodent Sur­ Oklahoma City bombing. The homily was widely interpreted as a vey, reveals � 39% rise in rat infesta­ The apparent origin of these libels is the call to the West to intervene militarily to tion in Britain between 1970 and desire to discredit the LaRouche political stop the Serbian atrocities in Bosnia, and 1993. movement when it is playing a key role in a majority of Italian political forces were the defense of Mexico's institutions, while reported to favor such action, as of July 17. • MARK 1)IATCHER,son of the the operation to wreck the Presidency of President Oscar Scalfaro, visiting Buenos Baroness and former prime minister ErnestoZedillo is escalating. Author LOpez Aires, read a passage fromDante's Comme­ Maggie, has l>een hit by a third legal writes that the followers of "American fa­ dia to journalistswho asked for a comment action, a multimillion-dollar lawsuit natic Lyndon LaRouche Jr. , are right about on Italian Foreign Minister Susanna Ag­ being filed against him by David G. one thing: Economics is the occult science. " nelli's opposition to direct military interven­ Wallace, the :man once described as tion. The passage, from Paradise, Canto V, Figures, adds LOpez, can be used by people Mark's clos�st friend and business like Zedillo to lie that the worst is over. They ends by reminding Christians that there is partner, acccbrding to the London no guarantee that a priest can save their soul. can also be used, as is the case of LaRouche Times of July 14. and his followers, to "prove looming catas­ ("Christians, be slower to move: Don't be like a feather in every wind, and don't think trophes, which only he-the Great Guru­ • RUSSIA ;'has drawn up an emer­ every water will wash you.") can save the world from." gency plan to combat population de­ El Financiero The scribbler attacks the cline," reported an AFP dispatch of head of the touring delegation, Cancino, for July 13 which picked up an item from "spreading the story according to which the How about a posthumous the Russian tass news agency. The Chiapas rebellion serves a conspiracy orga­ report said the size of the Russian nized by the British Crown. The Internation­ knighthoodfor Hitler? population h�s been falling since No­ al Monetary Fund, lord and master of the vember 1992, and, in the 1993-94 Mexican treasury, was presented here as Following the honorary knighthood granted period, it hacil fallen by 1.7 million. part of the evil monster which threatens the to Henry Kissinger on June 20, the latest Meantime, tije London Guardian re­ Mexico of the ruling PRI." LOpez said that proposal in the London Daily Telegraph ported July 14 fromMoscow that life thetwo congressmen presented "a shameful (Hollinger Corp.) is that Mick Jagger and expectancy among Russian males has spectacle in Paris and Bonn . . . where the the other Rolling Stones be knighted by Her dropped to an average of 57 years. EZLN is perceived with good faith by those Majesty Queen Elizabeth II. The proposal, who believe that the Zapatistas are a move­ printed on July 10, was authored by Boris • THE DEATH PENALTY will ment purely for the uplifting of the indige­ Johnson, son of Paul Johnson, a "Catholic" be abolished �n Poland, if a draft law nous people." There is also "a consensus proponent of Thatcherite "free trade" pol­ approved by the governmenton July that the PRJ government is a corrupt and icies. 11 goes thro�h, Justice MinisterJer­ lying regime." Boris observes that Stones are making zy Jaskierniaisaid. According to Reu­ their latest mega-tour of Europe, and their ters, the bill ,.so provides for life im­ average age now is the same average age as prisonment, replacing the current that of the members of the British Cabinet. system under which the maximum Pope: Serbian atrocities Johnson lauds their contributions to British jail term is 2$ years. wealth and fame. I 'a defe at of civilization' But , overall, it's their "music alone" • JUAN qSCANO, the most anti­ that merits a knighthood. The Stones have oligarchic of the Venezuelan "Nota­ Pope John Paul II stated on July 16: "The made a major "contribution to postwar glob­ bles" who pIlayed a critical role in news and images coming from Bosnia wit­ al culture." He reports that it was their mu­ ousting Carlos Andres P�rez, was ness how much Europe and humanity have sic, "whose Orphic spell, prompted the rock honored on ms 80thbirthday , July 7, sunk into the abyss of abjection." Speaking writer Albert Goldman, in 1969, to compare as the "patri�ony of Venezuela" by in Les Combes (Val d'Aosta), where he is Mick Jagger to Adolf Hitler." Johnson his old friencil, President Rafael Cal­ vacationing, Wojtyla stressed that "No quotes another "music" critic, from 1971: dera. This c�urnnreported last week cause, no project can justify such barbarous "The Stones are perverted, outrageous, vio­ on Liscano'� incisive attack on Brit­ actions and methods: They are crimes lent, repulsive, ugly, tasteless, incoherent. ish ideology, which was published on against humanity. What is occurring is a A travesty. That's what's good about July 7 in Caracas. defeat of civilization. Those crimes will re- them. "

EIR July 28, 1995 International 57 �ITillNational

Stench of coverup fi1l$ Congress on Waco prpbe by Jeffrey Steinberg

Two days into the House of Representatives probe into the Recent reports in the Wall Street Journal and the Wa sh­ 1993 governmentassault on the Branch Davidian compound ington Post, based on leaks [from the office of Whitewater in Waco, Texas that left over 80 people dead, Congress special prosecutor Kenneth iStarr, suggest that after more appeared well on the way to covering up the crimes of the than a year of round-the-cltck investigation, at a cost of permanent bureaucracy of the Department of Justice and oth­ over $8 million in taxpayers'· money, the Starrprobe has run er federal agencies-just as V.S. statesman Lyndon aground, turning up no evid�nce of criminal wrongdoing by LaRouche warned might happen in the July 17 issue of the the Clintons. A recent outsid� audit submitted to the Resolu­ weekly New Federalist newspaper. tion Trust Corp. by a former aush-appointed V.S. Attorney, From the moment that Republicans announced the eight Jay Stephens, also concludetl that the Clintons did nothing days of hearings by subcommittees of the House Judiciary wrong, and in fact lost monh on their Whitewater invest­ Committee and the House Government Reform and Over­ ment-just as they have been saying all along. sight Committee, the stench of partisan politics was unmis­ All of this translates intolone simple fact: that afterover takeable. Rep. Bill Zeliff (R-N.H.), chairman one of the two years of massive media !black propaganda, directed by subcommittees sponsoring the hearings, predicted on nation­ the Hollinger Corp. of Canada and Great Britain, promising wide TV on the eve of the hearings that they might lead to that the Whitewater scandal 1Nould land the President in jail the impeachment of President Clinton! Although the claim before the end of his firstte onin office, it turnsout that there was absurd, it provided an insight into the mind-set and were apparently no crimes ot improprieties by the Clintons. motives of at least some of the GOP partisans. Would-be Clinton-bashers have one last hope: that they can Zeliff's opening statement to the hearings on July 19 come up with some scent of White House attempt at coverup, included gratuitous references to a possible role by the late and thereby salvage their "Get Clinton" offensive. Hence the White House Deputy General Counsel Vincent Foster in the fixationon the death of Vinctnt Foster. Waco tragedy, further evidence that some Republicans are Two-and-a-half days of �enate Whitewater Committee more interested in scoring points against the Clinton White hearings, dominated by testiplOny by former Deputy Attor­ House than in getting to the bottom of the fiasco at Waco. ney General Webster Hubb,ll, have so far produced little On the other side of Capitol Hill, the Senate was at that grist for the GOP and British propagandamill-{)r for special very moment holding hearings on the so-called Whitewater prosecutor Starr. V.S. Park Service investigators, who testi­ scandal, focusing on the circumstances of Foster's death in fied on June 20, reiterated tileir findings that Foster's death July 1993, which investigators determined was suicide. The was a suicide, and complain�d that distraught White House Senate hearings, convened by Al D' Amato (R-N. Y.), aim to officials had failed to seal dff Foster's office, as they had create the appearance of a White House coverup-either of requested, in the hours immd

58 National EIR July 28, 1995 A scene during the standoffin Waco, Texas, April 3, 1993 . Anybody who is concerned about "Gestapo tactics" in the Waco affa ir should investigate the permanent bureaucracy in the Department of Justice, rather than pursuing a partisan agenda against the Clinton administration.

White House attorneys provided senators and the media with the ADL, had foisted the original ATF probe of the Branch the opportunity to review Foster's Whitewater files several Davidians, and had continued to pois�m the Waco investiga­ days before the hearings began. The near-unanimous conclu­ tion with wild disinformation, passed on through a network sion: There was no "smoking gun." of CAN- and ADL-controlled "deprogrammed" former Branch Davidians, right up to the final FBI tear gas assault A dog-and-pony show on the compound on April 19, 1993, which resulted in the Unfortunately, the Republicans on the House panels fire that killed over 80 sect members . probing the Waco tragedy do not appear to be alone in their Throughout the first two days of hearings, Schumer and zeal to cover up for the permanent bureaucracy at the pepart­ Lantos's comments were loaded with formulations drawn ment of Justice and elsewhere. Among the Democrats on verbatim from the CAN-ADL dis information. the committees, Reps. Charles Schumer (D-N. Y.) and Tom There were moments, however, when some elements of re­ Lantos (D-Calif. ), both longstanding assets of the Anti-Defa­ ality crept into the proceedings. On July 19, one of the panelists, mation League of B 'nai B'rith (ADL), one of the complicit Stuart Wright, associate professor of sociologyat LamarUniver­ parties in the Waco assault, immediately cast themselves in sity in Beaumont, Texas, asked the subcommittees: "How is it the role of partisan combatants , defending every action by the possible that a deprograrnmer associated with the Cult Aware­ fe deral agencies and casting every allegation of government ness Network, Rick Ross (an ex-convict with a psychiatric re­ error or wrongdoing as a ploy by either the right-wing militias cord) , came to be an outside 'expert'? Who in the ATF or FBI or the National RifleAs sociation (NRA) to wreck the federal decides who is an expert? What kinds of professional criteria government's ability to enforce gun control laws. Unfortu­ or credentials are considered, if any? What role did these anti­ nately, even President Clinton, in a speech to federal law cultists play in the holocaust at Mt. Carmel?" enforcement directors at Blair House on July 20, lapsed into The EIR Sp ecial Report answered those questions in con­ some of the same rhetoric displayed by Schumer and Lantos; siderable detail; but, the subcommittees did not even subpoe­ and, a week before the hearings began, Treasury Secretary na Ross, CAN President Cynthia Kisser, or any of the myriad Robert Rubin issued a media advisory that the hearings of federal and state law enforcement agents who have probed threatened to be an ambush by Republican right-wingers out CAN and developed evidence that has led to a string of to dismantle the Treasury Department Bureau of Alcohol , nationwide kidnapping prosecutions against members of the Tobacco, and Firearms (ATF) . group, including Ross. The stage was further set for this gang-countergang diver­ sion by revelations on the eve of the hearings, that officials It didn't start with Waco of the NRA had been apparently brought into the official The key to the coverup lies more in what the panel refused congressional probe, and had on at least one occasion falsely to take up. A total of 93 witnesses will be called, and already passed themselves off as panel staffers in order to gain pro­ some of the witnesses, including Wright and a panel of a half­ files of potential hearing witnesses. dozen U.S. Army Special Forces personnel, have provided As EIR reported in a June 30 Special Report, outside marginally useful information about the blunders and willful­ agencies , led by the Cult Awareness Network (CAN) and ly fraudulent aspects of the governmentaction . Those bits and

EIR July 28, 1995 National 59 pieces of testimony, sadly, are so far destined to be lost in a But as the Waco and Whitewater hearings in the Congress sea of irrelevant details and partisan bickering. were starting up, other events are threatening to block the The real criminals, who ought to be facing serious coverup from being locked into place. On July 14, FBI Direc­ charges, are an army of permanent government bureaucrats tor Louis Freeh announced that the number two man in the and their outside partners in the ADL and CAN. Their crimes FBI, Larry Potts, was being Idemoted and transferredto the didn't begin with Waco. As EIR recently showed, the same Bureau's training academy at Quantico, Virginia, and that a DOJ personnel-led by Deputy Assistant AttorneysGeneral probe was under way of doqument-shredding and other ef­ Mark Richard and John Keeney, who, between them, have forts to cover up the role of senior officials inFBI headquar­ served for more than 72 years in the Department of Justice ters in the issuance of illegal and unconstitutional "shoot to bureaucracy-who ran Waco, were also behind the rail­ kill" rules of engagement in the 1992 Weaver affair. Already, roading of Lyndon LaRouche; the "Friihmenschen" ("early another FBI officialhas been !Suspended, and both the Justice man") DOJ-FBI program to frame up hundreds of Afro­ Department's Office of Prof�ssional Responsibility and the American elected officials; the near frame-up execution of FBI are conducting polygraph examinations of senior offi­ Cleveland retired auto worker John Demjanjuk on manufac­ cials to get to the bottom of 1jhe FBI and Justice Department tured charges that he was Nazi mass murderer "Ivan the handling of the Ruby Creek �iege and shooting. Terrible" of the Treblinka concentration camp; and the cold­ The White House, accorUing to news accounts, has or­ blooded killings of ex-Green Beret Randy Weaver's wife and dered Freeh to launch a hous�-cleaning; and sources close to teenage son during an August 1992 FBI siege in Ruby Creek, the Oval Office say that a similar cleanup at the Department Idaho; as well as dozens of other crimes and atrocities. of Justice is also high on the President's agenda. To get to the bottom of the corruption, the panel would Under these circumstances, the momentum could build have had to probe all of these cases-not just the Waco quickly for the kind of "war dn entrenchedcorruption" in the fiasco. It is the effort to avoid that cleanout of the crooks DOJ-FBI that Lyndon LaRouche has been advocating for inside the DOJ and the rest of the federal "continuity of over a decade. And under thiose circumstances, the best ef­ government" operation that has bonded the Conservative forts of the congressmen running the bogus Waco hearings, Revolution Republicans and the ADL-run Democrats in an to de facto protect the permanent Justice Department bureau­ unholy alliance to block the truth from coming out. cracy, could blow up in their faces.

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60 National EIR July 28, 1995 i Bosniandelegat ion seeks end tp anns embargo. withdrawal of U.N. forces I by William Jones

The Schiller Institute hosted the first visit ever in Washing­ fell when the U.N. Protection Forc�s (Unprofor) troops had ton, D.C. of parliamentarians from the embattled nation of taken over a part of the defense perinteter, and the Serbscould Bosnia-Hercegovina on July 17-23. The visit came at a time break through, she explained. "Amil from news I learnedjust when the Serb genocide against the Bosnian people, which today," Mehadzic-Cero said, "som� of these Serbs came in has shocked the world time and again but has been allowed wearing blu,e helmets which they h�d gottenfrom Unprofor to proceed with impunity, was again made manifest, with troops." I Serb forces attacking the Bosnian enclaves in the easternpart Hidic, who represents a districf in the Bihac area, had of Bosnia-Hercegovina. been the second-in-command of the.'!Bosnia n military forces With the fall of Srebrenica and the increased pressure on that had defended Bihac . He stressed that the Bosnians didn't thetown ofZepa, the brazen Serb flauntingof the U . N. "rules want U.S. troops in Bosnia. "We �ave soldiers. We don't of engagement" has made a mockery of the western world. need more help," he said. "They should leave Bosnia-Her­ The atrocities reported by survivors of the attacks, in which cegovina. Until now they have done nothing. Unprofor has the Serbs again went on a rampage of slaughter, separating become simply a tourist organization with employees pock­ themales for transport to an uncertain fate , and raping women eting high salaries .... Mr. [U.N. Secretary General and children, has increased the pressure on the governments Boutros] Boutros-Ghali, [U.N. Special Envoy Yasushi] of the West, and particularly on the United States, to act to Akashi, [U. N. negotiator ThorvaldJ Stoltenburg, should all stop the butchery. The public outrage is particularly great as be taken to the Hague to stand trial for war crimes. . . . Now the areas attacked, overrun, and "ethnically cleansed" had they have created this Rapid Reaction Force. If they were been declared "safe havens" by the United Nations. The Serb really rapid, they would have come to Srebrenica to defend aggression has made apparent to even the most obstinant the people there ." skeptics, the total bankruptcy of the United Nations. Speaking before television cameras at a press conference Disappointment in the United States at the National Press Club on July 19, the two parliamentari­ The parliamentarians also expressed great bitternessover ans, Mr. Safet Hidic and Mrs . Razema Mehadzic-Cero, the failure of the West to act, the:ir disappointment being called on the United States to lift the arms embargo and greatest perhaps with the United States, in which they had allow the Bosnians to defend themselves against the Serb placed their greatest hopes. "When the Contact Group pro­ aggressors . posals were generated [with the proposed territorial division Mehadzic-Cero, a representative from Banja Luka, an of Bosnia-Hercegovina] they were not to our liking, but we area of Bosnia-Hercegovia now under Serb occupation, signed the resolutions," Hidic said. ,"When the resolution on blasted the role of the U.N. forces. "Three years ago, the safe havens was produced, we signed that, too." The fall of U.N. was supposed to protect the Bosnians. And how did "safe haven" Srebrenica was the ultimate disappointment they do that? After three years, there is more killing than over the agreements that they had gone along with, Hidic ever. Afterthree years, our people and children are starving. explained. "Srebrenica is a great wound." And after three years, U.N. forces have still to set foot on "We have done everything thel U.S. has asked of us," any Serb territory ," she said. Mehadzic-Cero said. "Our faith in tlileU.S. was unwavering. We now ask the help of the United States." The story of Bihac They also spoke of the atrocities that have been perpe­ When the U.N. tried to surrenderBi hac into Serb hands, trated again and again with impunity ever since the beginning the Bosnian Army would not let them do it, she explained. of the Serb aggression-the "ethnic cleansing," the rapes, The Bosnians produced their own weapons in the area and the torture , and the murders. "The 'first day the Serbs came they used them to defend themselves. Bihac is today still a into Srebrenica," Hidic said, "400people were slaughtered." safe haven-but no thanks to the U.N. The town of Srebreni­ Hidic described one incident where the Serbs had rounded ca, which previously had been defended by Bosnian forces, up little girls 11 to 14 years of age. " They then took the little

EIR July 28, 1995 National 61 Two parliamentarians fromBosnia­ Hercegovina. Mrs . Rasema Mehadzic-Cero (left ) and Mr. Safe t Hidic (right. at podium) speak in Washington. D. C. fo llowing the fa ll of the U.N. "safe haven" in Srebrenica. girls into a room full of bearded, dirty Serb Chetniks. The gations was unable to be a part of the delegation. "Until now girls were raped all night while the parents were forced to the international community was permanently denying the stand outside the door and listen. The girls came out the right of the Bosnian and Croatian people to defend them­ next morning and the Chetniks raped the mothers while the selves against Serbian aggression," the Pandzic message children were forced to watch." read. "Giving an opportunity for committing crimes against Mehadzic-Cero said that there were reports from Tuzla Croatian and Bosnian people at the end of the 20th centuryis that there were over 500 bodies piled up in Srebrenica after an unforgettable crime against the human race. We are all the Serbs were finished, people they had simply butchered. witnesses of the political failure of the United Nations." "We are a civilized, dedicated people," Mehadzic-Cero said. "We are an industrious people, devoted to family life. Zepa and Gorazde You can't kill our will to survive. We will survive or we will The parliamentarians were asked several questions at the all perish. There is no middle ground." press conference. A former U.S. congressman asked about the reaction in Congress to their visit. Another question was Air-drops must be resumed raised about the situation in Zepa and Gorazde, two other Hidic urged the United States to resume air-drops in the safe havens now under Serb attack. Bihac area in order to provide food and supplies to the popula­ "The Serb Chetniks have had the project of retaking tion there . "The air-drops have been virtually suspended," these cities on their plate for some time," Hidic said. "Zepa Hidic said. Although the air-drops to Bihac had been part of has been under siege for quite some time. The heavy weap­ the agreement constituting it as a "safe haven," the drops ons were taken away from the Bosnians and the Croats by have been discontinued for over a year. Unprofor, and the Serbs took these weapons from Unpro­ Hidic also stressed the urgency for the United States to for ." Hidic said that "the Serbs are cowards. They only fight bomb the Serb artillery positions outside the safe havens. from the mountains with their heavy artillery, killing women "The embargo against the Serbs must also be strengthened, and children. The U.S. must bomb the artillery placements as well as the borders between Bosnia-Hercegovina and Yu­ around Gorazde and Zepa while the arms embargo is being goslavia," he said. Hidic explained how the heavy weapons lifted. " had been handed over by the Bosnians and the Croats to the In response to a question about the reaction of the reli­ care of Unprof or in accordance with the U.N. "ground rules." gious leadership to the atrocities occurring in Bosnia, Meha­ These same weapons were then taken by force by the Serbs, dzic-Cero said, "Both the Catholics and the Muslims have who had no interest in playing by the "rules." condemned the genocide. Only the Serbian Orthodox Church A message was also sent by a third parliamentarian, Vla­ is supporting it. The ecumenical mandate of the Serbian Or­ do Pandzic, a Bosnian Croat, who because of previous obli- thodox should be taken away from them."

62 National EIR July 28, 1995 Wage stagnation, economic insecurity sources of voter anger, says Clinton

by William Jones

President William Clinton, speaking at Georgetown Univer­ and wonder what they have done wrong. What did they ever sity on July 6 on "Responsible Citizenship and the American do to fail. And they're riddled with worries about it. Millions Community," stressed that wage stagnation and economic more who are poor have simply giv�n up on ever being able insecurity are the sources of voter anger and frustration. to work their way into a stable lifestyle." While British-spawned propaganda blames President Clin­ ton and the federal government for the discontent of the 'Failure is not an option' population, President Clinton pinpointed declining incomes "I believe we face challenges Of truly historic dimen­ as the real problem. There are "real reasons for ordinary sions," the President said, "challeng�s here at home perhaps voters to be angry , frustrated, and downright disoriented," greater than any we faced since the beginningof this century but these reasons are rooted in economic insecurity, Clinton we are about to finishand the dawn of the industrial era." In said. meeting those challenges, "failure is, not an option," he said, The speech marks a significant shift in outlook on the quoting NASA flightcontrol director Gene Kranz, who used economy. Although prior to the 1994 elections, Clinton was the expression when faced with the Ulsk of bringing thedam­ stressing the economic "recovery," in recent months he has aged Apollo- 13 spacecraft back to earth in 1969 (recently increasingly emphasized the decline in real wages and the popularized in a new box-office hit movie). fact that the "recovery" is not being felt by most working President Clinton underlined the need for such a deter­ people. In the Georgetown speech, he explicitly cited the mined attitude in order to solve the problems facing the nation 1994 elections as representing a turning point in his thinking . and the world today. "You read the Declaration of Indepen­ dence and the Constitution," the President said. "This coun­ A two-decade trend try is an idea. And it is still going . now in our 220th year President Clinton expressed his disappointment with the because we all had a sense of possibility. We never thought results of that election. "I kind of felt sorry for myself," he there was a mountain we couldn't climb, a riverwe couldn't said. "And then I realized, how could they [the voters] ford , or a problem we couldn't salve .... You have to possibly feel anything in two years? . . . These income believe in possibility. And if you're cynical, you can't be­ trends are huge, huge trends-sweeping over two decades. lieve in possibility ." Fast international forces behind them. Trillions of dollars of money moving across international borders working to A more sober economic assessment findthe lowest labor cost and pressing down [wages]. Untold The President has adopted a more sober, and realistic improvements in automation-so fast that you just can't view of the economic scene, warning of the many difficulties create enough high-wage jobs to overcome the ones that are that lay ahead, which stands in sharp contrast to the disas­ being depressed in some sectors of the economy." trous 1994 Democratic congressionlll campaigns. In 1994, While the "aggregate indices" say "that the economy the optimistic references to the "X number of months of has done well-almost 7 million new jobs, the stock market continuous economic recovery" characterized all too much is over 4,500-the median income, the person in the middle the political slogans from the Dem(>cratic side. The disas­ has declined with all the downsizing. More and more people trous results of the 1994 elections served as a wake-up call are temporary workers ," the President said. for the Democratic Party, a warning that it would be the "This is the only advanced country in the world where kiss of death in a period of serious financial convulsions there's a smaller percentage of people under 65 in the work­ like the present, to base an electoral strategy on optimistic force with health insurance today than 10 years ago," Clinton figures drawn from the "leading eCQDomic indicators." The said. "Millions of American people go home at night from Federal Reserve's recent lowering iof the interest rates, a their work and sit down to dinner and look at their children measure the Clinton administration has been quietly urging

EIR July 28, 1995 National 63 for some time, indicates that there is considerable concern mark of his successful 1992 Presidentialcampaign . On Nov. that the "economic upswing," so glibly touted by administra­ 8, 1994, he gave the Carroll Quigley lecture, a memorial tion spokesmen, is not something administration policymak­ lecture named after the lrish�American Georgetown history ers are really counting on. teacher who was a seminal influence in the development of The coming global financial collapse, not dealt with at the President's political philosophy. In that lecture, President the recent Group of Seven summit of leaders of major indus­ Clinton extended the olive b�anch of cooperation to the Re­ trial nations in Halifax, has tended to also color the political publicans, giddy in their euphoria over winning majoritiesin rhetoric. If the world financial system unravels during Presi­ both houses of Congress. Ret�ing to Georgetown (his alma dent Clinton's first term, as seems likely, he will have to mater) now, the President presented a similar offerof cooper­ make the tough choices for emergency measures to meet ation, as a means to bring the country together. Although it that crisis, and his reelection will largely be determined by seems unlikely that Republicans, caught up in election fever, his ability to deal with it. If the financial blowout is delayed will respond any better to the President's offer than they did until after the 1996 elections (a less likely option), he will in November, the voters, to whom the message is ultimately have to prepare the population for the mobilization needed addressed, may feel differently. to carry out the typeof emergency measures outlined repeat­ In his recent speech at Georgetown, Clinton attacked his edly by physical economist Lyndon LaRouche. President opponents for harping on a populist "anti-big government" Clinton's attempt to contrast his theme of "responsible line without posing any real alternatives, whipping up hyste­ government" to the Republican attempt at making "gov­ ria rather than appealing to reason. "Americans don't want ernment" a bogeyman, without clutching at the straws of 'just say no' politics," Clinton said. "If they can get thetruth , the "leading economic indicators" as proof of administration they'll make the right decision 99 times out of 100.And we success, could provide the psychological and political basis have to offer an alternative.'And so do they [the Republi­ for the needed measures to be taken as the financialblowout cans] ....When we differ, we should say what we're for, erupts. not just what we're against." In 1994, many Democrats learned to their bitter disap­ On the surface, his message was one of bipartisanship, pointment the foolishness of trying to play to the same tunes calling for "more conversation and less combat," and for as their Republican counterparts. This was underlined by finding "common ground" rather than reverting to the "ex­ Sen. Edward Kennedy (D-Mass.) in a speech on Jan. 11 at tremism of rhetoric and excessive partisanship." "We can't the National Press Club, in which he indicated the problems restore the American Dream unless we can findsome way to many candidates created for themselves by pretending to bring the American people ¢loser together," the President be something-Republicans-they weren't. "I reject such said, evoking the spirit of thej "conciliator" in contrastto the qualifiers as 'new' Democrat or 'old' Democrat or 'neo' "attack dogs" of the Conserv.tive Revolution. Democrat," Kennedy said. "I am committed to the enduring But Clinton also lambasted the "anti-government"rheto­ principles of the Democratic Party, and I am proud of its ric of his Republican opponents, who "communicate more great tradition of service to the people who are the heart and more with people" in "3@-second ads designed far more and strength of this nation: working families and the middle to inflame than to inform." While saying that there must be class." If Democrats try to be like Republicans, as many an effort to change government in order to make it more Democratic incumbents tried to do in November, they will effective, he warnedagainst ltttemptsto "eviscerate" govern­ always lose, he explained. ment. "We have triedweak government, nonexistent govern­ Kennedy himself had been behind in the polls initially ment, in a complex industriall society where powerful inter­ and was a particular target for elimination by Republican ests that are driven only by short-termcons iderations call all strategists, but succeeded in winning his election on classical the shots," President Clinton warned. "We tried it decades Democratic issues by a sizeable margin. "I ran as a Democrat and decades ago. It didn't work out very well. It didn't even in belief as well as name," he said. "This turned out to be produce a very good economic policy. It had something to not only right in principle; it was also the best politics. I do with the onset of the Depression." talked about the issues that mattered to working families In order to meet these <)hallenges, the President said, and about what I had tried to do to address their needs and "we've got to challenge every American in every sector of concerns. If we be what we traditionally have been, we can our society to do their part. We have to challenge in a positive win." He urged Democrats "to prove to working families way and hold accountable pe<1lplewho claim to be not respon­ and average citizens that we are on their side fighting hard sible for any consequences Oftheir actions that they did not for them," rather than adapting to the GOP agenda. specifically intend-whethelt it's in government, business, labor, entertainment, the metIia, religion, or community or­ Real alternatives needed ganizations ....None of us: can say we're not accountable In 1991, President Clinton presented his "New Cove­ for our actions because w� did not intend those conse­ nant" speech at Georgetown University that became the hall- quences."

64 National EIR July 28, 1995 court" brief in support of the fedeqU government and the State of New Jersey, in the Third Circuit Court of Appeals. "A favorable decision for New Jersty in the Third Circuit N.J. law pulls 10,000 will make it much tougher for reform opponents to prevail when they bring suit against Virginia," Gilmore said. babies safetynet off Issue unites opposition The clear danger to the welfare of thousands of children by Marianna Wertz under these new laws has served to uI).iteotherwise disparate groups in opposition. The staunchly anti-abortion Roman The modelwelfare refonn law which went into effect in New Catholic Church has joined with sucl� feminist "pro-choice" Jersey 18 months ago has cut approximately 10,000 newborn organizations as NOW, to oppose these anti-child laws. babies from the social safety net of Aid to Families with In 1992, when the New Jersey l.w was first proposed, Dependent Children (AFDC), according to David Sciarra, Regina Purcell, Associate Director Of Social Concerns for attorney for New Jersey Legal Services, who spoke with EIR the New Jersey Catholic Conference,jreleased a statement in July 17. Under the new law, the first of its kind in the nation which she denounced the proposed la}V, because, she said, it and themodel for pending federal welfare refonn legislation, "places the family at risk, is punitiv� and destructive." The women in New Jersey no longer receive the roughly $800 Conference argued that, since middlerclass or wealthy fami­ annual additional income for children conceived while they lies receive a tax deduction of $2, 1�0 for each dependent are on welfare. child, families on welfare are entitled! to an increase in child "My problem with the exclusion is even if you concede support, rather than an elimination qf that support. Purcell that you might prevent some births from occurring, either also argued that taking the additionajl $800 per year away, through abortion or through women deciding not to get preg­ "however meager an amount it is, dops mean the difference nant, the problem is you're throwing thousands of kids off between being able to take care of a n!!wbaby or not. " the safety net when you do that. And nobody seems to care In Virginia, the state's American Civil Liberties Union what happens to those kids. That's the tragedy ," Sciarra said. director Kent Willis told this news service July 10 that the In addition, Sciarra said, a rise of 3-4% in the rate of ACLU is right now deciding on a cOU!rse of action to oppose voluntaryabortions by indigent mothers under state Medicaid the "family cap" policy under the new Ilaw-which, like New fundinghas occurredsince the law went into effect, and the Jersey's, stipulates that a child bornto a woman while she is birthrate in New Jersey has declined by 11% overall in that on welfare will not receive the additio�al approximately $700 time period. per year that the AFDC program formerly provided. The New Jersey Legal Defense Fund, together with the While the ACLU has been a leadipg advocate of a wom­ National Organization for Women (NOW) Legal Defense an's "right to choose"-i.e., abortioll on demand-it finds Fund, sued the State of New Jersey and the federal govern­ itself defending the right of a woman to bear a child. ment, which had to give clearance to the "experiment," when the law went into effect. While they lost the initial suit, C.K. The constitutional question ; et at. vs. Shalala et al., when Newark Judge Politan ruled in "We do have a reproductive freedom question here," favor of the law May 4, they filed a notice to appeal in Willis told EIR News Service. "The c�ps essentially amount the Third Circuit Court of Appeals before the July 1 filing to governmentpolicy that attempts to �et conditions for wom­ deadline. en in tenns of choosing whether or :not they will have an abortion. The ACLU does not maint3lin that welfare itself is Virginia 'on the offensive' a requirement of the Constitution. H�wever, once the gov­ That filing prompted the Commonwealth of Virginia to ernment creates a system, such as �e welfare system, it make a public stance in defense of the brutal New Jersey law. must implement it in a fair manner: that does not violate Virginia's Republican Governor George Allen, who shares constitutional principles. You have tq essentially isolate the the "Conservative Revolution" outlook of New Jersey's Re­ universe of welfare , and say, now that you're in this universe, publican Governor Christine Todd Whitman, pushed a bill obviously the government can requir¢ conditions to partici­ similarto New Jersey's through the Virginia State Assembly pate in a program, but it can't remove constitutional rights. earlierthis year, which went into effect July 1. On July 11, A program that attempts to dictate wij,en women will repro­ in response to the filing of notice to appeal the case in New duce and not reproduce is a violation of constitutional rights. " Jersey, Virginia Attorney General Jim Gilmore announced The U.S. Congress is currently d�bating a new welfare that he will ':go on the offensive" to protect Virginia's new law for the nation, which may include:the same "family cap" welfarelaw against a similar legal challenge. provision. Should this pass, the tragepy of New Jersey will Gilmore said he will file an amicus curiae "friend of the become the tragedy of the entire Unit� States.

EIR July 28, 1995 National 65 The LaRouche Cases

Billington fe deral habeas filing exposes governmentviolations

The Commonwealth of Virginia, in concert with corrupt fed­ Federalist on July 17, LaRouche, in a statement issued by his eral law enforcement officials, knowingly violated the U.S. Presidential campaign, warnedthat upcoming congressional Constitution when it prosecuted Michael Billington, a politi­ hearings into the Waco and W �aver cases would bea massive cal associate and co-defendant of Lyndon H. LaRouche, Jr. , cover-up if congressional Republicans failed to investigate according to papers filed in federal court in Richmond on the permanent bureaucracy typified by Richard and Keeney July 17. The petition for a writ of habeas corpus charges and their private collaboratoll such as the Anti-Defamation that prosecutors, "motivated by unlawful political animus," League (ADL) of B'nai B'ritti and the Cult Awareness Net­ conducted a secret campaign to violate Billington's rights work. A good place for any seiriousinvestigation to begin, is including: withholding exculpatory evidence, suppressing with the pattern of abuses in the LaRouche cases, as docu­ evidence of government misconduct, tampering with wit­ mented in the Billington habeas petition. nesses, knowingly presenting false evidence and peIjured I testimony, conducting illegal searches and seizures, and in­ A void a cover-up terfering with Billington's right to counsel. To avoid a cover-up, LaRpuche said that any competent Additionally, the petition charges that Billington's attor­ investigation must investigat� the LaRouche cases, and also ney was ineffective and disloyal; the trial judge was political­ the case of retired Cleveland i autoworker John Demjanjuk, ly biased; the jury was wrongly instructed on the law; and who was falsely accused of war crimes, and the campaign the jury was polluted by pre-trial publicity generated by the to prosecute black elected officials under the FBI's racist prosecution and its allies (see Documentation for a summary "Friihmenschen" ("early man") program (see EIR Special of the evidence contained in the petition). Report, June 30, for an expose of the corrupt Department of Billington is asking the federal courts to overturnhis state Justice bureaucracy). conviction because state authorities violated his constitution­ The more than loo-page l petition, filed by Richmond, al rights in order to obtain that conviction. Virginia attorney Gerald T. Zerkin, is a detailed account of Billington, who is currently serving a barbaric 77-year a shocking judicial atrocity perpetrated against Billington. prison sentence in Virginia, was falsely convicted along with On the eve of his 1989 trial in Roanoke, Virginia, his lawyer, LaRouche and fiveothers in a 1988 federal frame-up trial in Brian Gettings, a former U.S. Attorney, tried to have Bill­ Alexandria, Virginia. While wrongly incarcerated in federal ington declared mentally oindompetent for insisting on his prison, Billington was prosecuted on virtually the same constitutional right to a jury trial. What followed was a sham charges by then-Virginia Attorney General Mary Sue Terry, trial in which Gettings was Imore interested in protecting a partner of the federal prosecution. himself than defending his client, in some instances actually Virginia authorities also charged 15 other political associ­ becoming Billington's adver!lary. Consequently, Billington ates of LaRouche in their bogus prosecution. Five of those received no effective defensel charged, Billington, Anita Gallagher, Paul Gallagher, Don­ ald Phau, and Laurence Hecht, are currently wrongly incar­ Billington falsely charged cerated in Virginia prisons serving sentences from 25 to 77 A post-trial investigationl by Billington's attorneys un­ years. covered details of a massive: conspiracy involving govern­ Billington's petition focuses attention on the need to ment and private organizations bent on fraudulently con­ clean out the Bush-linked corrupt permanent bureaucracy of victing Billington at all costs because of his political the U.S. Department of Justice and the FBI typifiedby Depu­ association with LaRouche. The investigation showed that ty Assistant Attorneys General Mark Richard and John prosecutors knew that Billin�on was innocent of the crimes Keeney, both of whom played a role in supervising the fraud­ charged, but knowingly pre!/ented a false case in order to ulent prosecution of LaRouche and Billington. obtain a conviction. The inve$tigation also showed that pros­ Richard and Keeney also supervised the deadly shootouts ecutors lied in court to cover "lIPtheir illegal activities. in Waco, Texas and Ruby Ridge, Idaho. In the weekly New The petition documents that prosecutors used coercive

66 National EIR July 28, 1995 Political prisoner Michael Billington and his wife Gail. Falsely charged and convicted on bogus "securities . fra ud" violations. I Billington is cu"ently I serving a 77-year I sentence in a Virginia

I prison . His habeasfiling i asks the fe deral courts to overturn his conviction because state authorities violated his constitutional rights in order to obtain that conviction . techniques on financialand political supporters of LaRouche support for a promotion to a highen :ourt. Weckstein's ac­ in order to get them to present false testimony against Bill­ tions during the Billington trial shdw that Weckstein was ington. One witness, former LaRouche associate Chris Cur­ in fact prejudiced by the ADL. tis, was actually "deprogrammed," i.e., brainwashed, by Janus is now facing indictment dn state bribery charges Cult Awareness Network kidnapper Galen Kelly and former stemming from a case in which his law partner has already Loudoun County, Virginia Sheriff's Deputy Donald L. pled guilty to attempting to sodomi�e a potential client� Moore. Both Moore and Kelly have served federal prison sentences for a CAN-related kidnapping. Prosecutors chastised Billington also presents extensive evidence of illegal It is this kind of conduct whicH has already led three activities conducted by government officials. According to different judges to severely chastis� prosecutors for their the petition, Moore illegally entered buildings without a misconduct in various phases of � LaRouche cases. In warrant, illegally obtained photographs, and seized comput­ 1988, Boston federal judge RobertKeeton said federalprose­ er printouts , including lists of financial supporters and note­ cutors were guilty of "institutional i and systemic miscon­ books. Moore also engaged with others in illegal wiretaps, duct," in the Boston federal trial of LaRouche, in which and interfered with the finances and operations of the Consti­ Billington was a co-defendant. In 1�89, U.S. Bankruptcy tutional Defense Fund which was assisting in Billington's Judge Martin V.B. Bostetter found thbgovernment 's actions defense. against LaRouche's associates to beiJil "bad faith" and "fraud Billington was also denied an impartial trial judge. Just on the court." Most recently, in 199$, N.Y. State Supreme months after Billington's conviction, evidence surfaced in Court Judge Stephen G. Crane found ian "inferenceof a con­ the case of his co-defendant Richard Welsh, that Judge spiracy to lay low these defendants at any cost here and in Clifford Weckstein, who presided over several of the Virginia." LaRouchecases , had ties to the ADL. Under pressure from Former U. S. Attorney General Rlkmsey Clarktold a blue Welsh's attorneys, Weckstein revealed a series of correspon­ ribbon panel of legal experts thatthe LaRouchecases , "repre­ dence between himself and ADL National Commissioner sented a broader range of deliberate qunning and systematic Murray Janus, ADL Regional Director Ira Gissen, and Janus misconduct over a longer period of time utilizing the power law partner and Weckstein family friend John Lichtenstein. of the federal government than any other prosecution by the The ADL sought to influence Weckstein while offering him U.S. governmentin my ti�e or to m)!knowledge ."

EIR July 28, 1995 National 67, request, forcing Billington to $tand trial with Gettings, who Documentation had abandoned his interests and now became his adversary. Billington was forced to fi.ewritten pro se objections in an effort to protect his rights. . In the sham trial that fol�owed, Gettings entered into false stipulations with the pro ecution without Billington's Summaryof evidence in consent. Gettings refused to p operly investigate and cross­ examine witnesses, allowing f.!the prosecution to present a theBillin gton case false case. Gettings ref used t prepare Billington to testify, and threatened to prevent him rom testifying if he tried. He The Billington federal habeas petition seeks to overturn the refusedto call a key defense �itness on Billington's behalf. conviction on 11 separate violations of the U . S. Constitution. He failed to make crucial obj�ctions, which allowed irrele­ vant and inadmissible evidenqe to be presented to the jury . I. Billington was denied effective assistance of counsel be­ In closing arguments, he conc4ded the government's case. cause his lawyer abandoned his interests and became his I adversary. U. Prosecutors improperly in erfered with Billington's de- . Billington had retained Brian Gettings, a former U.S. fense. � Attorney, to represent him. On the eve of trial, Gettings AfterBi llington was indict�d, Loudoun County, Virginia urged Billington to waive his right to a jury trial. Gettings's Sheriff's Deputy Donald Moo¢, a key prosecution investiga­ advice followed an unrecorded backroom conference be­ tor, regularly obtained documepts from the dumpsters located tween the prosecutor, John Russell, the trial judge, Clifford on private property next to o ces occupied by the Constitu­ R. Weckstein, and Gettings, in which Weckstein stated he tional Defense Fund, which oore and prosecutors knew to would not reduce a jury sentence, no matter how outrageOus. be assisting in Billington's de� ense. Moore also sought and Weckstein pressured Gettings to, in tum, pressure Billington obtained information from C F employees and monitored to give up his right to trial by jury. amounts of funds expended o� lawyers. He also coordinated After careful consideration, Billington insisted on his with the ADL and private litigants to seize fundsfrom CDF constitutional right to a jury trial. On this basis alone, Get­ with the intention of hamperiIljg Billington's defense. tings tried to have Billington declared insane, adopting the prosecution's false portrayalof the LaRouche political move­ UI. Billington was denied his nght to a lawyer of his choice ment as a "cult," which he later told the court he did not by actions of the judge and th� prosecutors. believe. Gettings knew this "cult" theory was also promulgat­ After Billington fired Ge�ings, he sought to substitute ed by the Anti-Defamation League, which had been actively attorneyJohn Flannery, who hadpreviously represented Ro­ assisting the prosecution's case. This was particularly dam­ chelle Ascher, a co-defendant pf Billington. Prosecutor Rus­ aging because Judge Weckstein had ties to the ADL, some­ sell objected, saying he inten�d to call Ascher as a witness, thing Gettings refused to investigate. thus raising a conftict-of-inten�stis sue. Russell had no inten­ Over Billington's objection, Judge Weckstein ordered tion of calling Ascher as a witness, and only raised this to Billington to undergo a psychiatric exam, which found Bill­ prevent Billington from hirin, a lawyer who would defend ington competent. Gettings then joined with the prosecutor his interests. Judge Weckstein refused to allow the substi­ and asked for a second exam to be undertaken at the FBI­ tution. linked Institute for Law, Psychiatry, and Public Policy. Prior to the second exam, Russell sought to put the institute in IV. Trial judge Clifford R. Weckstein was biased. contact with Mira Lansky Boland of the ADL as an expert Four months afterBil lington's trial, evidence surfaced in on cults, and Gettings falsely told the institute that he had the case of Richard Welsh, a co-defendant of Billington, that received a "death threat." Billington refused to be examined Judge Weckstein was a partisan of the ADL, a branch of by the institute. the prosecution. In response to a motion filed by Welsh's Gettings's actions led to pre-trialpUblicity prejudicial to attorneys, Weckstein disclos¢d a series of correspondence Billington. The Roanoke newspapers quoted the ADL' s Mira between himself, ADL National Commissioner Murray Ja­ Lansky Boland as an authority on �illington, LaRouche, and nus, ADL Regional Director liraGiss en, and Janus law part­ cults. As a result of Gettings's actions, Billington tried to fire ner and Weckstein family friend John Lichtenstein. The cor­ Gettings and substitute John Flannery. At a hearing on the respondence revealed a pattern of corruption of Weckstein issue, Gettings, who appeared disassociated and confused, by the ADL, including an attempt to bribe Weckstein with was represented by his partner Harvey Cohen, who had pre­ the promise of ADL support f6r Weckstein's appointment to viously acted as a spokesman for the ADL. Billington had a position on a higher court. no lawyer at all. Judge Weckstein refused the substitution Janus is currently under indictment in Richmond for brib-

68'.'(JNational EIR July 28, 1995 ery in a case in which his law partner has already pled guilty former officials, and secretly recorded FBItape recordings , to attempted sodomy. Virginia Attorney GeneralMary Sue 1jerry, Loudoun County Weckstein knew of the ADL's role in the prosecution and SheriffJohn Isom, and his deputy Don Moore engaged in a concealed his relationship with the ADL. Nevertheless, he politically motivated campaign to destroy the political move­ demonstrated his prejudice throughout Billington's trial, in­ ment of LaRouche. cluding forcing Billington to go to trial with Gettings, Isom told a meeting of his top deputies in 1985 that he allowing Gettings to fill the record with false accusations would do "anything to stop LaRouche." Isom assigned against his client, and making numerous gratuitous, unwar­ Moore to coordinate anti-LaRouche activities outside of nor­ ranted, and inappropriate on-the-record remarks about Get­ mal Sheriff Department channels. M�re than illegally en­ tings's competence, plainly intended to thwart Billington's tered buildings without a warrant, obtaiined photographs, and ability to challenge the conduct of Gettings. seized computer printouts, including lists of financial sup­ At sentencing, Weckstein refused to reduce the barbaric porters and notebooks . Moore also e�gaged with others in 77 -yearsentence imposed by the jury. illegal wiretaps. The activity of Teqy and her underlings was so egregious that even the FBI called her "politically V. The prosecutor systematically withheld eXCUlpatory evi­ motivated" in their memos. dence. Prosecutors deliberately withheld evidence that their wit­ VIII. All the above circumstances combined, deprived Bill­ nesses werebrainwashed . According to statements made by ington of a fair trial. Sherifrs Deputy Donald Moore, which were secretly record­ ed by the FBI, key prosecution insider witness Chris Curtis IX. The jury was tainted by pre-trial publicity. had been "deprogrammed" by Moore, Cult Awareness Net­ The prosecution participated in a nationwide campaign work "deprogrammer" Galen Kelly, and others . Moore and of defamation and vilification of LaRquche and his political Kelly have each been sentenced to federal prison for their associates for years prior to Billington ',s trial. Terryand Rus­ involvement in CAN-linked kidnapping and deprogramming sell repeatedly made comments to the qews media, and Terry attempts of others . The effect of the "deprogramming" was made the prosecution of Billington and LaRouche anissue in to make Curtis so hostile to his former associates that his her reelection campaign. Despite the inundation of the jury testimony was totally unreliable. pool with this prosecution-generated injftammatorypublicity, Prosecutorsalso concealed that Curtis received immunity Judge Weckstein would not allow prospective jurors to be fromCalifornia prosecutors and escaped severe civil penalt­ questioned about their exposure to it. A post-trial investiga­ ies in New Mexico in exchange for his testimony. Curtis also tion produced evidence that the jury was polluted by exposure received a recommendation to law school from Moore and to the government's pre-trial propagankia. federal prosecutor John Markham. Additionally, prosecutors withheld evidence that they X. The jury was wrongly instructed on the law of the case. used coercive techniques on financial and political supporters Billington was charged with knowingly andwillfully fa il­ of the LaRouche movement in order to get them to present ing to register as a securities broker. lNevertheless, thejury false testimony against Billington. Prosecutors concealed was not instructed that to findBi llington guilty on any count, statements which contradicted the testimony of those wit­ they had to find beyond a reasonable dpubt that he knew the nesses. Furthermore , prosecutors concealed evidence that notes at issue were securities. the government itself engaged in interference with the fi­ In fact, Billington could not have known the notes were nances of the LaRouche political movement, in effect creat­ securities because the State Corporatioh Commission did not ing the crimefor which Billington was prosecuted . determine these notes to be securities' until after Billington was indicted. Elizabeth Lacy, the chaiqnan of the SCC, eyen VI. The prosecution suppressed evidence that Billington's said that this issue was a "case of firsti tnpression"in Virgin­ double jeopardy rights were violated. ia. Eventually, Lacy decided the notes }veresecuriti es, clear­ In pre-trial hearings, government officials gave false tes­ ing the way for the criminal prosecutions. Lacy was later timony in order to conceal the relationship between the feder­ appointed to the Virginia Supreme Court. al and state cases. Government documents obtained under the Freedom of Information Act, prove the officials lied un­ XI. Billington's rights were denied when Judge W�kstein der oath at those hearings. refused to reduce the barbaric 77-year Jurysentence . Prior to trial, Judge Weckstein ulled the threat that he VII. The prosecutors were motivated by unlawful political would not reduce the jury sentence to pressureBi llingtoninto animus and engaged in a secret campaign to interfere with waiving his right to a jury trial . This threat precipitatedGet­ Billington's rights. tings's previously described treacherqus actions. After the According to government documents, interviews with sham trial, Weckstein imposed the entire 77-yearsentence.

EIR July 28, 1995 National 69 ) NationalNe ws

Power Supply System in 1983, and the 1975 ment he4Js "are afraidto ." New York City default-rigged by Wall The � .S. Congress, in a repudiation of Streetto put the city under financialdictator­ its prescpbed constitutional responsibilit­ Orange Co. moratorium ship and destroy the bulk of its vital services ies, recently imposed a financial control and infrastructure. board ov¢r the District of Columbia, dump­ enrages Wall Street ing the bw-den of maintaining its infrastruc­ The futilityof mere financial solutionsto the ture and iservices upon a local government current economic collapse has once more which w�s never intended to sustain the cap­ ital city df the entire nation. been underscored by the case of Orange i County, California. The destruction of its D.C. aid to the needy tax base, coupled with the blowout of its investment in the derivatives market, forced denounced as 'criminal' the county to declare bankruptcylast year. Washington Mayor Marion Barry and other Now it has predictably been unable to pay officials of the nation's capital have been Leag�e of Cities otTers off $800 million in one-year notes due in threatened with criminal prosecution, for re­ July and August-a simple fact of life which fusing to slash medical care and welfare as­ fiscalI fantasy report has driven Wall Street into a frenzy. sistance for impoverished residents of the At a Wa\;hington press conference on July Holders of 99% of $800million of one­ District of Columbia. Rep. James Walsh (R­ 10, the National League of Cities reported year Orange County municipal bonds voted N.Y.), chairman of the House Appropria­ that mu�cipal financesare generally in bet­ on July 7 to accept a one-year delay in pay­ tions subcommittee which oversees the Dis­ ter shaptj than they were two years ago­ ment, in effect granting the county a one­ trict, has reportedly asked AttorneyGeneral while conditions of urban life continue to year debt moratorium-in retum for a $10 Janet Reno to consider instituting charges deterior*. The NLC's latest annual budget million premium. Affected were $600 mil­ against the city's leaders for "illegal over­ survey, dovering417 cities, claims that 60% lion in notes due July 3, some $169 million spending" during fiscal 1994. of muni¢ipal finance officers say they are in notes due July 19, and $31 million in Walsh's threats were issued in response better a�e to meet their budgets than they notes due Aug. 19. The county was report­ to a report that Mayor Barry had ordered the were tw�' years ago, when two-thirds of edly short some $335 million in repayment District's department heads on June 30 to them re rted difficulties which frequently funds . continue needed payments for health care, amounte to major shortfalls. The bondholders' decision drove Wall welfare, and foster child care "without re­ It wduld come as no surpriseto most of Street's usurers to foam at the mouth. Stan­ gard to whether the activity exceeds any line the natiokt's urban residents that such fiscal dard & Poor's and Moody's credit-rating item of the 1995 appropriation." "improv�ment" has beenattained simply by agencies declared the county in default, de­ According to the Washington Times, refusingi to fund vital services at the levels spite the rollover approved by the note-hold­ Walsh declared on July 12 that "what necessarf. Even the president of the NLC, ers. Still enraged by the recent refusal of [Barry] is proposing is a clear violation of Atlanta : City Councilwoman Carolyn Orange County voters to approve a sales tax the anti-deficiency law, for which he could Banks, �bserved, ''The survey doesn't an­ increase to pay off the speculators, Wall be held responsible." The Times said that swer the question, 'Compared to what?' Be­ Street hopes this rough treatment will stop the law "requires a minimum penaltyof sus­ ing able Ito balance the city's checkbook is other governments from taking a similar pension without pay and a maximum of two only on�partof the process. What may have path. years in prison ...for governmentemploy­ gone into that--cutting services or neglect­ S&P dropped its rating on the $600mil­ ees who knowingly overspend their ing nee�-is another. lion in notes due July 3 to D (default). "Stan­ budgets." "An1 some of those needs-especially dard & Poor's believes that the county again At a July 12 hearing before Walsh's sub­ infrastruCture--cannot go unmet indefi­ will lack the resources to repay the debt on committee, acting D.C. Inspector General nitely �thout running the risk of greater the agreed upon scheduled due date, June Thomas E. Brown, Jr ., testifiedthat Mayor costs latp"." Banks also reported that, for 30 , 1996. Consequently, the note rating will Barry's directive to the city's Department of the first ' time, infrastructural requirements remain D, barring some unforeseeable event Human Services conformed with require­ have be¢ome the most critical factor on the that lends merit to the workout plan," said ments of federal laws and court orders, as list of fiscal concerns confronting the na­ an S&P spokesman, according to Reuters. opposed to particular line items in the D.C. tion's cities. Moody's had already assigned a default rat­ budget which might violate those require­ The!je concessions to reality, as well as ing to the bonds and took a similar line. ments. Congressman Walsh interrupted concernj over the effect federal welfare re­ Were the county actually to default, it Brown's testimony by declaring, "That's form will have on city budgets, still did not would be the third-largest in the history of not the point at all," the Times reported. prevent �ome NLC officials from indulging the municipal bond market, after the $2.25 Walsh then claimed that Barry "wants to in some, outright fantasy. NLC Executive billion default of Washington state's Public spend more than $3.25 billion," and depart- Directo� Donald Borut stated that "the les-

70 National EIR July 28, 1995 Brilifly

• DUKE UNIVERSITY Econom­ ics Professor Emeritus Thomas Nay­ lor issued a call for dissolving the Union in the July 3 Journal a/ Com­ merce. The nation has become too son" of the overall improvement in munici­ narc'o-trafficking business, holds that Rees­ diversified and "unwieldy," he de­ pal budget balances "is that cities and towns Mogg and Evans-Pritchard are part of a Brit­ clared. "The time has come to begin are at the forefront of finding new ways to ish Intelligence plot to destabilize the Clin­ planning the downsizing of America. serve their taxpayers better, more efficient­ ton administration." LaRouche is the only · .. Alaska, Hawaii, Oregon, and ly, and more economically, as well." figure presented who defends President Vermont should be allowed to se­ Clinton. cede," while "mega-states" such as The Guardian recently merged with the California, Texas, and New York London Observer, which recently ran an ar­ "may not only �e candidates for se­ ticle referencing LaRouche's role in cession but do�nsizing as well. " Brits mull retreat from exposing the British-orchestrated campaign against the President of the United States. • NEWT GINGRICH dangled the The Observer included a typical sampling LaRouche counterattacks idea of drug legalization before the of British slanders of LaRouche. The steady barrage of exposes directed by July 14 meeting of the Republican Lyndon LaRouche on the British campaign National COIIlII\ittee. The only alter­ against President Clinton has produced native is the death penalty for interna­ some telling results. Various mouthpieces tional traffickers, he said, declaring for Britain's ruling circles have recently ac­ House ethics committee that the choice is "either legalize it or knowledgedthat the Whitewater "scandals" get rid of it." He called for a national they floated are sinking fast. The July 14 stalls on Gingrich case referendum, ev¢n though no legisla­ London Guardian, in typically prune-faced Recent explanations by House Standards of tion may be adqpted by that method fashion, pointed to LaRouche as the source Official Conduct Committee Chairman under the Constftution. of the problem. Nancy Johnson (R-Conn.) as to why its in­ In a lengthy feature entitled "Losing the vestigation of Speaker Newt Gingrich (R­ • RUPERT MURDOCH'S Fox­ Plot: Whitewater and the Conspiracy Theo­ Ga.) is still not under way have drawn a TV affiliate in Washington, D.C. ran rists," the Guardian's Washington corre­ skeptical response. David Bonior (D­ a news segmen� on July 11 alleging spondent lashed out at what he called an Mich.) declared on July 11 that Johnson has a "public outcry" over public access "American pathology," dating back "to the offered nothing more than the old "a dog­ television, for providing an outlet for archetypal conspiracy theory of the JFK as­ ate-my-homework excuse ....After you political "fringe�' groups. A brief clip sassination and the fabled second gunman go six months without calling a single wit­ followed from ''rfheLaRouche Con­ on the original grassy knoll. " ness or issuing a single subpoena, it's a little nection," broad¢ast on public access Yet a prominent box accompanying the late for excuses. " stations, with L.aRouche comment­ feature itemizes the roles of the two most The committee is charged with investi­ ing that "the world financial system prominent British propagandists who have gating, among other things, Gingrich's con­ starts to spin tovrard catastrophe." been afterClinton 's head: Ambrose Evans­ tracting for a $4.5 million book advance Pritchard and Lord William Rees-Mogg­ from Rupert Murdoch, who was simultane­ • HEALTH CARE for 1,500 in­ who also happen to be the media orchestra­ ously lobbying him for measures advanta­ mates of the Washington, D.C. jail tors most frequently targeted by LaRouche. geous to his media empire. Gingrich had was placed un

EIR July 28, 1995 National 7.1 Editorial

Now is the timeJo r action

France's President, Jacques Chirac, took the occasion ed under the aegis of the Thatcher governmentbecause of the July 14 celebration of Bastille Day, to draw of its perceived geopolitical interests, which were sup­ a comparison between the Nazi genocide during the ported by Bush. Essentially the British have tried to Second World War and genocide being committed by revive the pre-World War I I Entente Cordiale between the Serbs today. The parallel is well-taken, since, for Britain and France, along with Russia. Both then and all the rhetoric on this 50th anniversary of the end of now, the most obvious tar�t has been Germany; but World War II, once again, British support for a fascist chaos in the Balkans is also' a British lever against the . government is being allowed to dictate the course of United States as well. history. Just as the British forced the Czech government The role of the United ,Nations Organization has to concede to Nazi aggression, so, today, the British are been to police the warfare in order to ensure that the doing everything in their power to force the Bosnians to Serbs would not be defeat�d. This means that high capitulate. officials in the United Natio�s and in Britain, are guilty Unfortunately, despite President Chirac's keen of acting as accomplices to, war crimes committed by awareness of the need for action against the Serb fas­ Serbians. That includes U. N. Secretary General cists, there are differences between the French and Boutros Boutros-Ghali. American governments on how to proceed. These must The United States has been demanding the use of be settled quickly. air power to stop Serbian �ggression. Unfortunately, The surest avenue to transforming the situation, is President Clinton has been �eterred from acting by the for NATO to deploy its air power in order to destroy United Nations, thanks to British influence(and , while the Serbian heavy weapons capability. The Serbians Fran<;ois Mitterrand was President, French influenceas are brazenly committingcrimes against humanity; they well). French commitment to the use of ground forces are war criminals, and in this situation, the United is still a problem for the United States; however, if one Nations has not only abjectly capitulated to them, but looks at the profile of the forces on the ground, it is has abetted them by preventing the Bosnians from de­ clear that the Croatian and $osnian infantry can do the fending themselves. job themselves, with sufficientair support from NATO. The United Nations has destroyed any remaining The Croatian and Bosdian infantry, as such, is a credibility which it might have had; the question now much superior fighting fOf(te to the Serb forces under is whether the United States and France will maintain Karadzic, the so-called Chetniks. The margin of advan­ their credibility, unless they agree to move with effec­ tage of the Chetnik forces so far, is the lack of armament tive military force to stop the Serbians. This can be of the Bosnians, in particular, because of the arms done through NATO air strikes. embargo imposed by the U.�. This has not, in practice, There can no longer be any argument over the role stopped the Serbs from g�tting weapons, but it has of the British. It is not the case that the Serbs are being effectively disarmed the Bosnians. protected; the Serbs are acting as agents of the British The Serbian Chetniks i are operating with heavy government. This was a policy initiated by Margaret weapons capability, delivered to them largely from Ser­ Thatcher when she was Britain's prime minister, and bia proper, by the Milosevip government. The Serbian supported by President George Bush. infantry , the Chetnik infantry, is an inferior fighting Despite Thatcher's efforts to distance herself from force , which would collap$e rather readily in front of the government of John Major, it should be remem­ Bosnian and Croat forces, without this heavy weapons bered that the first phase of Serbian aggression was capability and this radar support. Serbian President Slobodan Milosevic' s war against The time to act is now; fascism must never again be Croatia, and brieflyalso Slovenia. This war was initiat- allowed to triumph !

72 National EIR July 28, 1995 S E . E LAROUCHE ON CAB L E TV

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