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, his is our last issue before the Willard Group meeting of 22 nations Ronald Kokinda T Science Editor: Marjorie Mazel Hecht in Washington, at which the question of reorganizing the bankrupt Special Projects: Mark Burdman world financial-monetary system will be either resolutely faced, or Book Editor: Katherine Notley Advertising Director: Marsha Freeman cravenly avoided, with tragic consequences. I remind our readers of Circulation Manager: Stanley Ezrol the editors’ preface to an article by Lyndon H. LaRouche in our Feb. INTELLIGENCE DIRECTORS: 6 issue, the preface titled “John Paul II and the Ides of March.” Asia and Africa: Linda de Hoyos Counterintelligence: Jeffrey Steinberg, We wrote: Paul Goldstein “An announced outbreak of suicides among some officials in Economics: Marcia Merry Baker, William Engdahl Japan lends dramatic irony to the desperate efforts of the Japan gov- History: Anton Chaitkin ernment, and others, to pretend that Japan now has its part of the Ibero-America: Robyn Quijano, Dennis Small Law: Edward Spannaus pulsating, ongoing, global financial crisis under control. The cur- Russia and Eastern Europe: rently preferred policy of bankers and most governments, to pour Rachel Douglas, Konstantin George United States: Debra Freeman, Suzanne Rose monetary gasoline on the fires of financial holocaust, is feeding an INTERNATIONAL BUREAUS: early new round of explosions, soon to become more devastating than Bogota´: Jose´ Restrepo those of late 1997. Indeed, this year, although the timing of matters Bonn: George Gregory, Rainer Apel Buenos Aires: Gerardo Tera´n is not yet certain, it is fair to say that the ‘ides of March’ are once Caracas: David Ramonet again menacing, and that the current Caesars of world finance appear Copenhagen: Poul Rasmussen Houston: Harley Schlanger to have learned nothing from Shakespeare’s drama, or other appro- Lima: Sara Maduen˜o priate past tragedies.” Mexico City: Hugo Lo´pez Ochoa Milan: Leonardo Servadio Now, the Ides of March have passed, taking a toll of human New Delhi: Susan Maitra livelihoods and lives from Tokyo to Indonesia to Kosova. We are Paris: Christine Bierre Rio de Janeiro: Silvia Palacios moving into the second financial quarter, a period fraught with the Stockholm: Michael Ericson utmost danger, as our reports in the Economics section show. Washington, D.C.: William Jones Wiesbaden: Go¨ran Haglund In this strategic context, the dismissal of Paula Jones’s lawsuit against President Clinton is very good news indeed: a potentially EIR (ISSN 0273-6314) is published weekly (51 issues) except for the second week of July, and the last week of devastating setback to the British oligarchy’s assault against the Pres- December by EIR News Service Inc., 317 Pennsylvania Ave., S.E., 2nd Floor, Washington, DC 20003. (202) idency. Clinton, on tour in Africa, greeted the news with the comment 544-7010. For subscriptions: (703) 777-9451. World Wide Web site: http://www.larouchepub.com that he is looking forward to “getting back to work.” The world e-mail: [email protected] urgently requires that he do so. European Headquarters: Executive Intelligence Review Nachrichtenagentur GmbH, Postfach 2308, A vital aspect of that job of “getting back to work,” is to roll back D-65013 Wiesbaden, Otto von Guericke Ring 3, D-65205 Wiesbaden, Federal Republic of Germany the treasonous, British-controlled permanent bureaucracy in the U.S. Tel: (6122) 9160. Homepage: http://www.eirna.com E-mail: [email protected] Executive Directors: Anno Justice Department. Our Feature presents Congressional testimony Hellenbroich, Michael Liebig In Denmark: EIR, Post Box 2613, 2100 Copenhagen ØE, submitted by the Schiller Institute, documenting the outrageous pros- Tel. 35-43 60 40 ecutorial abuses perpetrated against LaRouche and associates. Clean- In Mexico: EIR, R´ıo Tiber No. 87, 5o piso. Colonia Cuauhte´moc. Me´xico, DF, CP 06500. Tel: 208-3016 y 533- ing out this corrupt apparatus is essential for the nation’s future; so, 26-43. Japan subscription sales: O.T.O. Research Corporation, too, is the full exoneration of LaRouche. 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 Departments Economics 7 Lyndon H. LaRouche, Jr. 51 Report from Bonn 4 April global financial shock From an interview with “EIR New horizons for U.S.-German begins with Japan Talks.” relations. With the end of the fiscal year in Japan on March 31, and the 48 Babiker Ali Eltom 72 Editorial implementation of the “Big Bang” Mr. Eltom is the chairman of the The shift against managed care. policy of financial deregulation, the state legislative council in the economic situation is becoming Sudanese capital of Khartoum. increasingly desperate, while the government’s bailout efforts are 62 Peter Wray Photo and graphics credits: becoming increasingly foolish. Mr. Wray is Communications Cover, page 27, EIRNS/Stuart Director, Ohio Civil Service Lewis. Pages 9, 11-17, 20, EIRNS/ 6 World press calls for a New Employees Association. John Sigerson. Page 40, EIRNS. Bretton Woods Page 65, EIRNS/Becky Jones. 63 Alphonse Gerhardstein 7 Save nations, don’t bail out Mr. Gerhardstein is an attorney the banks representing the inmates at the An interview with Lyndon H. Northeast Ohio Correctional Center. LaRouche, Jr. 64 Jonathan Smith 9 Brazil’s ‘Real Plan’ masks Mr. Smith is Executive Director, hyperinflation Washington, D.C. Prisoners Legal The decision by the Brazilian Service Project. government to inject enormous amounts of liquidity into the 65 Vermel Whalen economy starting last November is Representative Whalen is a member leading to a hyperinflationary of the Ohio Legislative Black explosion. Caucus. 13 Bankers whistling past the 65 Ron Wieczorek graveyard A LaRouche Democrat and cattle Record bank profits can’t hide the farmer, Mr. Wieczorek is a fact that the system is hopelessly candidate for the Democratic bankrupt. nomination for U.S. Congress. 19 How to finance the 60 Dr. William F. Pepper Eurasian Land-Bridge Dr. Pepper is the attorney for James under conditions of Earl Ray and author of Orders to financial crisis Kill: the Truth Behind the Murder A speech by Helga Zepp- of Martin Luther King. LaRouche. 24 Business Briefs Volume 25, Number 15, April 10, 1998 Feature International National 26 New effort launched to end 34 Mideast headed toward Justice Department war, unless Clinton tyranny intervenes Documentation: Testimony If there is no resolute intervention submitted by the Schiller Institute to in the Middle East in the short term the House Appropriations to force Israel to implement the Committee Subcommittee on Oslo Accords of 1993, there will be Commerce, Justice, State, and the war in the region, probably not later Judiciary, at hearings on the than summer. Department of Justice. 36 Brits send terrorist Paula Jones at a press conference in October 1997. 31 When will Congress finally controller to Mideast take action? 54 British-instigated Jones A timeline of filings and case thrown out 37 British Army fuels N. With the dismissal of Paula Jones’s interventions on behalf of Lyndon Ireland conflict LaRouche, which have attempted to lawsuit against President Clinton, induce the U.S. Congress to the nation, hopefully, has come to investigate misconduct by the 38 Kosova like N. Ireland: the end of a sorry episode of treason Justice Department. Serbs impersonate KLA and foreign intrigue, which should never have been permitted to go as 32 Bill to curb DOJ abuse 39 Ukrainians vote against far as it did. introduced in Congress IMF policies The Citizens Protection Act of In Ukraine’s second parliamentary 56 Starr witness-tampering 1998, introduced by Reps. Joe elections since independence, the under invesigation McDade (R-Pa.) and John Murtha Progressive Socialist Party of (D-Pa). Ukraine, headed by Dr. Natalya 57 LaRouche’s New Bretton Vitrenko, a leading advocate of a Woods policy at the center New Bretton Woods financial of Washington debate 33 Rep. Harold James backs system, entered the parliament. McDade-Murtha bill 59 New evidence explodes the A letter from the chairman of the 42 The Miracle Field in the Pennsylvania Legislative Black coverup in Martin Luther Caucus. Land of Fools Roman Bessonov writes from St. King assassination case Including an interview with Dr. Petersburg about the campaign to William F. Pepper. bury skeletons believed (by some) to belong to the last Romanov Tsar, Nicholas II. 62 Battle breaks out in Ohio against prison privatization 47 Sudan’s uphill battle for Interviews with Peter Wray, peace, democracy Alphonse Gerhardstein, Jonathan Smith, and Vermel Whalen. 49 Pope in Nigeria makes 68 Congressional Closeup overture to Muslims 70 National News 52 International Intelligence EIREconomics April global financial shock begins with Japan by William Engdahl Since late 1997, with the collapse of Japan’s fourth-largest where. In South Korea, during 1998’s second quarter, more securities house, Yamaichi, and a series of bank and company than $20 billion in corporate debt to foreigners comes due, failures, the government of Prime Minister Ryutaro Hashi- plus there are due dates for large amounts of domestic-held moto has passed a dazzling array of emergency measures debt before June 30. This portends chain-reaction defaults. designed to prop up Japan’s rotted banking system as well as Physical-economic activity is contracting by the hour.