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Executive Intelligence Review, Volume 25, Number 18, May 1, 1998

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Executive Intelligence Review, Volume 25, Number 18, May 1, 1998 EIR Founder and Contributing Editor: Lyndon H. LaRouche, Jr. Editorial Board: Melvin Klenetsky, Lyndon H. LaRouche, Jr., Antony Papert, Gerald Rose, From the Associate Editor Dennis Small, Edward Spannaus, Nancy Spannaus, Jeffrey Steinberg, William Wertz Associate Editor: Susan Welsh Managing Editors: John Sigerson, n his discussions of the conceptual framework for a New Bretton Ronald Kokinda I Science Editor: Marjorie Mazel Hecht Woods system, Lyndon LaRouche frequently emphasizes one im- Special Projects: Mark Burdman portant correction to the original Bretton Woods approach: We must Book Editor: Katherine Notley Advertising Director: Marsha Freeman adopt national banking, as opposed to central banking. This point Circulation Manager: Stanley Ezrol goes to the heart of why the sovereign nation-state is indispensable INTELLIGENCE DIRECTORS: for the transmission of human creative discoveries, to foster the de- Asia and Africa: Linda de Hoyos Counterintelligence: Jeffrey Steinberg, velopment of science and technology, and the progress of society as Paul Goldstein a whole. Economics: Marcia Merry Baker, William Engdahl The work of U.S. Treasury Secretary Alexander Hamilton is of History: Anton Chaitkin singular importance in this context. “If you don’t approve of Hamil- Ibero-America: Robyn Quijano, Dennis Small Law: Edward Spannaus ton,” LaRouche writes, “you have chosen, probably, to die of eco- Russia and Eastern Europe: nomic chaos world-wide.” The revival of Hamilton’s ideas in Brazil, Rachel Douglas, Konstantin George United States: Debra Freeman, Suzanne Rose with the publication in 1995 of the first Portuguese translation of INTERNATIONAL BUREAUS: Hamilton’s Report on the Subject of Manufactures (with a prologue Bogota´: Jose´ Restrepo by LaRouche), is the subject of our National Economy feature in Bonn: George Gregory, Rainer Apel Buenos Aires: Gerardo Tera´n this issue. We present a preliminary outline of the history of the Caracas: David Ramonet Hamiltonian faction in Brazil: the advocates of the American System Copenhagen: Poul Rasmussen Houston: Harley Schlanger of political economy, as against British free trade. In future issues, Lima: Sara Maduen˜o EIR will have a great deal more to say about the hitherto almost Mexico City: Hugo Lo´pez Ochoa Milan: Leonardo Servadio unknown history of the pro-Yankee, anti-British forces in Ibero- New Delhi: Susan Maitra America: the networks of Hamilton, Henry Carey, and Friedrich List. Paris: Christine Bierre Rio de Janeiro: Silvia Palacios Indeed, we shall show that there is no patriot in Ibero-America who Stockholm: Michael Ericson is not also pro-American, in that specific sense. Washington, D.C.: William Jones Wiesbaden: Go¨ran Haglund Our second major feature this week is the transcript of a fasci- nating dialogue between LaRouche and a group of Italian scientists, EIR (ISSN 0273-6314) is published weekly (51 issues) except for the second week of July, and the last week of mostly physicists involved in “cold fusion” research. The discussion December by EIR News Service Inc., 317 Pennsylvania Ave., S.E., 2nd Floor, Washington, DC 20003. (202) ranges from specialized matters involving quarks and longitudinal 544-7010. For subscriptions: (703) 777-9451. World Wide Web site: http://www.larouchepub.com force, to issues that are on the minds of all of our readers: “What does e-mail: [email protected] the stock market rise signify? When is the crash going to come? Will European Headquarters: Executive Intelligence Review Nachrichtenagentur GmbH, Postfach 2308, it be worse in my country, or somewhere else? Does Clinton have D-65013 Wiesbaden, Otto von Guericke Ring 3, D-65205 Wiesbaden, Federal Republic of Germany enough guts to fight the oligarchy? Why do you attack the British?” Tel: (6122) 9160. Homepage: http://www.eirna.com E-mail: [email protected] Executive Directors: Anno Reading “over the shoulders” of LaRouche and his Italian interlocu- Hellenbroich, Michael Liebig In Denmark: EIR, Post Box 2613, 2100 Copenhagen ØE, tors, will give you new insight into these vital questions, as seen Tel. 35-43 60 40 through the eyes of a master statesman. In Mexico: EIR, R´ıo Tiber No. 87, 5o piso. Colonia Cuauhte´moc. Me´xico, DF, CP 06500. Tel: 208-3016 y 533- 26-43. Japan subscription sales: O.T.O. Research Corporation, Takeuchi Bldg., 1-34-12 Takatanobaba, Shinjuku-Ku, Tokyo 160. Tel: (03) 3208-7821. Copyright © 1998 EIR News Service. All rights reserved. Reproduction in whole or in part without permission strictly prohibited. Periodicals postage paid at Washington D.C., and at an additional mailing offices. Domestic subscriptions: 3 months—$125, 6 months—$225, 1 year—$396, Single issue—$10 Postmaster: Send all address changes to EIR, P.O. Box 17390, Washington, D.C. 20041-0390. EIRContents Interviews National Economy Economics 58 Var Huoth 4 In the aftermath of G-22, His Excellency Var Huoth has been new catastrophe looming the Ambassador of the Royal While some of the discussions at Cambodian Government to the Washington meeting were Washington, D.C. since 1995. Prior useful, they were far from adequate to that, he was Commerce Minister, to dealing with the current world and took part in the first democratic breakdown crisis. elections in Cambodia in 1993. Documentation: Statements by world leaders, the media, and the 63 Poul Rasmussen IMF. The head of EIR’s bureau in Copenhagen recently visited Iraq, at The statue of U.S. Treasury Secretary Alexander 9 Asian national economies the invitation of the College of Hamilton, outside the Treasury Department in Wash- are descending into the Administration and Economics at ington, D.C. Baghdad University. Inferno An Asian “export offensive,” which 18 Tradition of nation- would be predicted by the textbook builders is still alive in economic theory of currency Brazil devaluations, has not materialized, Departments There is a rich tradition, found in because the structures of Asian the 19th- and early 20th-century economies are being torn apart. 15 Australia Dossier proponents of Alexander Health care might kill you. Hamilton’s, Henry Carey’s, and 11 U.S. exports plummet as Friedrich List’s American System of political economy, with which ‘Asia crisis’ hits 72 Editorial today’s nationalists can find an Time to investigate the Kigali gang. alternative to the disaster of 13 Neurolab opens new globalization and neo-liberalism. pathways for studying the life sciences 19 Reviving Hamilton’s The third Space Shuttle mission ‘American System’ dedicated to studying the impact of Photo and graphics credits: “The Influence of the American microgravity on living systems, Cover, pages 5, 31, EIRNS/Stuart System of Political Economy in focussed on the development and Lewis. Page 20, Library of Brazil,” an article which first functioning of the brain and nervous Congress, Prints and Photographs appeared in 1995, as an appendix to system. Division. Page 27, EIRNS. Page 28, the first Portuguese-language EIRNS/Philip Ulanowsky. Page 58, edition of Alexander Hamilton’s 16 Business Briefs Courtesy of Ambassador Var Report on the Subject of Huoth. Page 63, EIRNS/Michelle Manufactures. Rasmussen. 22 Dr. Carneiro: Brazil must adopt LaRouche’s proposals The Presidential candidate of Brazil’s Party for the Rebuilding of the National Order attacks free trade. Volume 25, Number 18, May 1, 1998 Feature International 26 LaRouche meets with 48 Clinton challenges British 58 Moving toward peace and Italian ‘cold fusion’ geopolitics in Asia reconstruction in scientists U.S. diplomacy is unusually active, Cambodia On April 4, Lyndon LaRouche including initiatives with respect to An interview with Cambodian participated in an informal India, Pakistan, Afghanistan, Iran, Ambassador Var Huoth. discussion in Rome with a group of Cambodia, and China. Italian scientists, on methodological 61 British prepare new questions of scientific research, as 49 Washington expands operations vs. Iraq well as on vital issues of economics, dialogue with India politics, and world history. The United States, for the first time 63 Iraq wants to be part of the since the Cold War ended, is putting world again 32 LaRouche on cold fusion in place a South Asia policy. An interview with Poul Rasmussen. 45 Einstein’s Theory of 50 Its economy ‘critical,’ 65 Paris jet-set pushes drug Relativity refuted Russia gets a new legalization government 66 International Intelligence 51 Italy’s choice: EMU or New Bretton Woods 53 Germany’s Social Democrats advocate National monetarism with a ‘socialist’ face 68 As his scandals mount, it’s time for Starr to go! 55 France’s elite opts for The Attorney General has the power national suicide to fire the independent counsel she appointed, and to launch a full and 56 Knives are out for Japan’s impartial investigation of the Hashimoto astonishing record of misconduct by Kenneth Starr and his office. 57 Paris judge attempts to crack Diana murder case 70 National News The investigating magistrate has convened an extraordinary meeting of witnesses, and has ordered a review of Diana’s medical dossier, to determine whether the emergency medical teams contributed to her death. EIREconomics In the aftermath of G-22, new catastrophe looming by Jeffrey Steinberg On April 23, the Singapore Business Times published an edi- the new chairman of the World Bank-International Monetary torial, perfectly summing up the previous week’s Group of Fund (IMF) Development Committee, at a meeting of the Seven and G-22 economic summits in Washington, D.C. United Nations Economic and Social Council. The Asia fi- “The East Asian economic turmoil, by uncovering weak- nancial crisis has taken the region “from Paradiso to Inferno nesses in the foundations of the global financial system, has in a matter of months,” he said. “It’s unfair, it’s altogether produced a healthy debate on creating mechanisms to prevent unjust simply to blame the governments . for the crisis. and contain future crises,” the editorial began. “But ironically, If the fundamental flaws in the global financial system .
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