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Executive Intelligence Review, Volume 21, Number 26, June 24

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Executive Intelligence Review, Volume 21, Number 26, June 24 CCJhope to convince you tha"ty in order to solve the political problem in experience) one musttake the path through the aesthetical) because it is through Beauty that one proceeds to Freedom.)) . - Friedrich Schiller FIDELIO Journal of Poetry, Science, and Statecraft Sign me up for Fidelio: $20 for 4 issues �ME _________________________________________ ADDRESS ________________________________ _______ CITY ______,.-- ___________ STATE __ ZIP ______ TEL(daYl( __l _______(evel( -_l ______ Make checks or money orders payable to: Schiller Institute, Inc. Dept E. P.O. Box 20244 Washington, D.C. 20041-0244 Founder and Contributing Editor: Lyndon H. LaRouche, Jr. Editor: Nora Hamerman Managing Editors: John Sigerson, Susan Welsh From the Managing Editor Assistant Managing Editor: Ronald Kokinda Editorial Board: Warren Hamerman, Melvin Klenetsky, Antony Papert, Gerald Rose, Edward ' Spannaus, Nancy Spannaus, Webster Tarpley, Now, don't worry; everything's going to be al right," whispers Carol White, Christopher White l Science and Technology: Carol White the parent to the terrified child. "Don't worry, the hanking system's Special Services: Richard Freeman fine; everything will be all right," whisper the bankers in New York Book Editor: Katherine Notley and London to their terrified investors. But what jf, as in Goethe's Advertising Director: Marsha Freeman Circulation Manager: Stanley Ezrol famous poem Erlkonig, the elf-king is not just in the child's imagina­ INTELLIGENCE DIRECTORS: tion? What if the elf-king actually comes to snatch the child away? Agriculture: Marcia Merry What if the entire banking system is about to collapse? "I can't judge Asia: Linda de Hoyos Counterintelligence: Jeffrey Steinberg, that," you might reply. Well, dear reader, the time is come to grow Paul Goldstein up and prove both to yourself and to your fellow' citizens, that the Economics: Christopher White European Economics: William Engdahl current speculation-bloated financial system is doomed to extinction Ibero-America: Robyn Quijano, Dennis Small in the near term. Law: Edward Spannaus And unlike children, who are $till vulnerable to Russia and Eastern Europe: irrational fears, we adults must prove this with a c�rtainty that is not Rachel Douglas, Konstantin George i Special Projects: Mark Burdman merely logical, but apodictic. United States: Kathleen Klenetsky To assist you in that endeavor, we include the most recent fruit INTERNATIONAL BUREAUS: of Lyndon LaRouche's efforts, in which he supplies the tools for Bangkok: Pakdee Tanapura, Sophie Tanapura Bogota: Jose Restrepo understanding why the ninth major forecast of his career will be Bonn: George Gregory, Rainer Apel borne out just as forcefully as the other eight. If, afterreading it, you Copenhagen: Poul Rasmussen find yourself arguing over the dinner table about why John Von Houston: Harley Schlanger. Lima: Sara Madueno Neumann's game theory of economic behavior is dead wrong, you'll Melbourne: Don Veitch Mexico City: Hugo Lopez Ochoa know you are on the right track. Milan: Leonardo Servadio Afterthat, please tum your eyes southward and.readthe Strategic New Delhi: Susan Maitra Paris: Christine Bierre Studies, which makes an even shorter-term forecast that a terrorist Rio de Janeiro: Silvia Palacios upsurge will engulf the nations of Ibero-Americ� by no later than Stockholm: Michael Ericson Washington, D.C.: William Jones June. Wiesbaden: Goran Haglund All this, however, is scarcely grounds for gloo1nand doom. The collapse of the doomed financial EIR (ISSN 0273-6314) is published weekly (50 issues) and economic rctgime presents us except for the second week of July. and the last week of with a golden opportunity to build a new and trul human one. See December by EIR News Service Inc .• 333'/2 l Pennsylvania Ave .. S.E .. 2nd Floor. Washington. DC page 14 for a follow-up on the Chinese plan for bew "Silk Route" 20003. (202) 544-7010. For subscriptions: (703) 777- 9451. railway, which represents a crucial link in the Eurasian railway European Headquarlers: Executive Intelligence Review Nachrichtenagentur GmbH. Postfach 2308. network proposed by EIR in 1992. Once we stand on the firm ground 65013 Wiesbaden; Otto von Guericke Ring 3. 65205 Wiesbaden-Nordenstadt. Federal Republic of Germany of our intent to cut the Gordian knot and industrialize the entire Tel: (6122) 9160. Executive Directors: Anno Hellenbroich. Michael Liebig world, we can laugh along with God at the insane antics of the In Denmark: EIR. Post Box 2613. 2100 Copenhagen 0E. bloodthirsty one-worlders at the United Nations in New York (page Tel. 35-43 60 40 In Mexico: EIR. Francisco Dlaz Covarrubias 54 A-3 8) and inside the walls of the Cini Foundation in Venice (page 18). 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 © 1994 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-$396. Single issue-$\O Postmaster: Send all address changes to EIR. P.O. Box 17390. Washington. D.C. 20041-0390. TIillContents Departments Strategic Studies Economics 17 Science Policy 50 Terrorist upsurge 4 Regulators pay homage to Europe takes a step toward the threatens entire Western Babylon's Whore in Moon. Hemisphere London Although the explosion of terrorism Bankers gathered in London for the 20 Australia Dossier is a national security threat to the 300th birthday of the Old Lady of British funds pour into Australia. United States,among other Threadneedle Street vowed to do countries,the U.S. State nothing to bring derivatives under 21 On the Green Front Department is backing revolts and control. A "wilderness" for drug pushers? insurrections in lbero-America. 6 Balsam failure brings 47 Andean Report 52 Will the Zapatistas go international financial Open skies for cocaine. Mexico-wide? collapse one step closer 67 Letters to the Editor 54 A volcano of political 8 Ghouls testify at U.N. Don't be defensive about violence is set to erupt in hearings Rostenkowski. Brazil 9 Currency Rates 72 Editorial 56 British are caught running Out of the morass. terrorism 10 China turns away from shock therapy, as threat of 58 Left-right pincer is forcing mass unrest grows Photo and graphic credits: Cover, Venezuela into civil war National Archives. Pages 7,55,63, 12 P.R.C. never stopped 64, EIRNS/Stuart Lewis. Page 25, EIRNS. Page 28,EIRNS/Carlos de 59 Hugo Chavez's pseudo­ looting its peasants Hoyos. Page 44, EIRNSI Zamora Christopher Lewis. Page 53, 14 China and Russia promote EIRNS/John Sigerson. Eurasian high-speed rail and bridge projects 18 'Malthusian International' proposes global environmental law court 22 Business Briefs Volume21, Number26, June 24, 1994 Feature International National 38 Calls grow to boot out 62 North candidacy is a test IAEA and develop Korea for the natien Direct U.S. talks with North Korea Can a proven drug-runner make it are crowding out the one-worldist into the U.S. senate by warmongers who wield the masquerading as a conservative International Atomic Energy family man? Agency. 64 ARGUS head Bryant faces 40 Haiti invasion means charges A scene of panic on Wall Street in 1933, as depositors disaster for Clinton Another member of the "Get queue up to withdraw their money from the banks. LaRouche" task force bites the 41 Opposition wants IMF dust. 24 The coming disintegration program for Nigeria of financial markets 6S Single-payer. health care Lyndon LaRouche urges plan is no stlution to responsible governments to put to 42 European Parliament the "sanity test" all incumbent and elections show impact of medical crisis The Canadian-style program would prospective economics and central economic crisis replace the hea th insurance banking officials: "Prove l industry with the federal conclusively that the near-term 44 Germany: Zepp-LaRouche government as the sole provider of disintegration of the presently brings reality to election health insurance for Americans. bloating global financial and The problem is. it does nothing to monetary bubble is unstoppable by 4S France: An Italian-style expand the tax base, and hence any means alternative to shakeup of the system means less health care all around. governments acting to place the relevant institutions into bankruptcy reorganization. " 46 What is the UNDP doing in 68 Congressioaal Closeup your country? 26 Bank of England replies, 70 National News defends derivatives 48 International Intelligence �TIillEconolllics Regulators pay homage to Babylon's Whore in London by Anthony K. Wikrent The heads of the 103 largest banks in the world gathered in bank dealing in derivatives is insolvent or not. London at the beginning of June, for the annual meeting of The problem, Padoa-Schioppa explained, is that "we cen­ the International Monetary Conference (IMC), and to cele­ tral bankers are still lacking a reliable set of analytical propo­ brate the tercentenary of the "Old Lady of Threadneedle sitions on which to draw in formulating our policy methods Street," as the Bank of England is known in the high circles in a derivatives-influencedfin ancial environment." of internationalbanking and finance. The meeting was espe­ Thus, it is not surprising that the measures advocated in cially noteworthy for the gaggle of financial regulators from the BIS's annual report-issued just days after the bankers' around the world, who, except for some very rare birds from revelry in London-downplayed the danger of derivatives, continental Europe, came to prostrate themselves, and assure focusing instead on a need for "better monitoring." The BIS the bankers that the regulators had no desire to burden or hin­ report asserted that "the ongoing debate about the potential der the bankers' derivatives markets with more regulation.
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