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Executive Intelligence Review, Volume 26, Number 45, November

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Executive Intelligence Review, Volume 26, Number 45, November EIR Founder and Contributing Editor: Lyndon H. LaRouche, Jr. Editorial Board: Lyndon H. LaRouche, Jr., Muriel Mirak-Weissbach, Antony Papert, Gerald From the Associate Editor Rose, Dennis Small, Edward Spannaus, Nancy Spannaus, Jeffrey Steinberg, William Wertz Associate Editors: Ronald Kokinda, Susan Welsh Managing Editor: John Sigerson f all the many ironies posed in this rich and fascinating issue of Science Editor: Marjorie Mazel Hecht O Special Projects: Mark Burdman EIR, perhaps the most piercing one is the little item reported on Book Editor: Katherine Notley page 20: the change in the composition of the Dow Jones Industrial Advertising Director: Marsha Freeman Circulation Manager: Stanley Ezrol Average. Effective Nov. 1, four companies—Union Carbide, Chev- INTELLIGENCE DIRECTORS: ron, Goodyear Tire & Rubber, and Sears Roebuck—will be dropped, Asia and Africa: Linda de Hoyos to be replaced by Microsoft, Intel, SBC Communications, and Home Counterintelligence: Jeffrey Steinberg, Paul Goldstein Depot. The “Industrial Average” has become a “Post-Industrial Av- Economics: Marcia Merry Baker, erage.” William Engdahl History: Anton Chaitkin Think of this in terms of Lyndon LaRouche’s famous “triple Ibero-America: Robyn Quijano, Dennis Small curve” schematic diagram (see page 8). The physical economy of the Law: Edward Spannaus Russia and Eastern Europe: United States is collapsing, while financial and monetary aggregates Rachel Douglas, Konstantin George soar, even as the inflationary nature of this is temporarily concealed United States: Debra Freeman, Suzanne Rose by an ever-increasing mountain of debt. INTERNATIONAL BUREAUS: Bogota´: Jose´ Restrepo The wizards of Wall Street, rather than admit that the physical Bonn: George Gregory, Rainer Apel economy is bankrupt, have waved their magic wands and declared Buenos Aires: Gerardo Tera´n Caracas: David Ramonet that they are simply not going to count the stocks of industrial firms Copenhagen: Poul Rasmussen any more—but only those “high-tech” stocks that are feeding the Houston: Harley Schlanger Lima: Sara Maduen˜o hyperinflationary bubble. “The top two lines on LaRouche’s triple Melbourne: Robert Barwick curve are thriving, don’t you see? We, the financier oligarchy, will Mexico City: Hugo Lo´pez Ochoa Milan: Leonardo Servadio simply ignore the bottom line!” New Delhi: Susan Maitra In contrast to this bald-faced lying, let me draw your attention Paris: Christine Bierre Rio de Janeiro: Silvia Palacios to a particularly poignant formulation in LaRouche’s speech in our Stockholm: Michael Ericson United Nations, N.Y.C.: Leni Rubinstein Feature section. “Truthfulness,” he says, “is to know how to be truth- Washington, D.C.: William Jones ful, first. And secondly, to take personal, individual responsibility for Wiesbaden: Go¨ran Haglund thinking and acting in a truthful way, on all practical and related EIR (ISSN 0273-6314) is published weekly (51 issues) questions before you.” except for the second week of July, and the last week of December by EIR News Service Inc., 317 Pennsylvania That is quite a challenge. It is the challenge that LaRouche put Ave., S.E., 2nd Floor, Washington, DC 20003. (202) before a group of trade unionists on Nov. 4, during his second cam- 544-7010. For subscriptions: (703) 777-9451, or toll- free, 888-EIR-3258. paign dialogue conducted via the Internet (see National). “The voters World Wide Web site: http://www.larouchepub.com e-mail: [email protected] have to realize that they represent power,” he told them. “And people European Headquarters: Executive Intelligence Review Nachrichtenagentur GmbH, Postfach 2308, who are union leaders, as well as civil rights leaders, and people like D-65013 Wiesbaden, Bahnstrasse 9-A, D-65205, Wiesbaden, Federal Republic of Germany that, have to get that message out. We the people are the power in the Tel: 49-611-73650. Homepage: http://www.eirna.com E-mail: [email protected] Executive Directors: Anno United States, and if we don’t exert that power, we’re not going to Hellenbroich, Michael Liebig have it much longer.” In Denmark: EIR, Post Box 2613, 2100 Copenhagen ØE, Tel. 35-43 60 40 In this issue, you will find many illustrations of how and why In Mexico: EIR, R´ıo Tiber No. 87, 5o piso. Colonia Cuauhte´moc. Me´xico, DF, CP 06500. Tel: 208-3016 y 533- that power is so dangerously in jeopardy. That is the first part of 26-43. LaRouche’s definition of truthfulness. The second part, depends upon Japan subscription sales: O.T.O. Research Corporation, Takeuchi Bldg., 1-34-12 Takatanobaba, Shinjuku-Ku, Tokyo what you do. 160. Tel: (03) 3208-7821. Copyright ” 1999 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 Departments Strategic Studies Economics 19 Australia Dossier 54 How to catch a British 4 German banks slash credits The end of an industrial era. agent to medium-sized industry Stu Rosenblatt’s third review The traditional partnership between 80 Editorial cataloguing the perfidious careers of Germany’s banks and small and President Clinton must fire some of the 20th century’s leading medium-sized industry is Albright! British agents-of-influence within crumbling, as the large private the U.S. political establishment. banks, operating on the “Anglo- Here he takes up McGeorge and Saxon” model, cut off funding to Book Reviews William Bundy, who were industry in favor of financial responsible for many of the speculation. wretched, British-steered turns in 48 The evil of banality American foreign policy and The Road to Democracy: Taiwan’s 5 Zepp-LaRouche: national outlook, during the period Germany’s existence is at Pursuit of Identity, by Lee Teng- between the end of World War II hui. stake and the beginning of the Reagan An open letter to German Presidency. 56 How the Bundy family Chancellor Gerhard Schro¨der from the president of the Schiller Institute ruined America in Germany. The Color of Truth, by Kai Bird. 8 Speculative bubble feeds off economy Photo and graphics credits: Cover, pages 6, 39, 55 (McGeorge 10 IMF wages protracted Bundy), EIRNS/Stuart Lewis. economic warfare against Pages 8, 9, EIRNS. Page 14, the Balkans EIRNS/Gonzalo Huertas. Pages 23, 29, 31, EIRNS/Christopher Lewis. 12 Fall issue of ‘21st Century Page 24, Bundesbildstelle. Page 25, Science’: Real calculus vs. Bundesbildstelle Bonn/Schambeck. Page 33, Anooshiravan merat page what you learned at www.sums.ac.ir/~merata/ khatami. Page 49, Office of the 13 Mahathir rallies Asia to President of Taiwan. Page 55 build economy (William Bundy), EIRNS/Phillip The Malaysian Prime Minister is Ulanowsky. Page 58, Yoichi R. conducting diplomacy in order to Okamoto, LBJ Library Collection. bolster national economies against Page 65, AP/Wide World Photos. the International Monetary Fund Page 69, EIRNS/Philip Valenti. and the financial speculators. Page 71, EIRNS/Don Clark. 15 African leaders are challenging the credibility of the IMF system 17 The IMF caused the floods in Mexico 20 Business Briefs Volume 26, Number 45, November 12, 1999 Feature International National 32 Iran’s Khatami advances 68 LaRouche campaign heats ‘dialogue of civilizations’ up as Gore’s problems Iranian President Seyyed mount Mohammad Khatami’s visit to Lyndon LaRouche was the first to France was a giant step forward in file in Kansas and New Hampshire, the Islamic Republic’s stride toward and petitioning is under way to put normalization of relations with the him on the ballot in at least 48 West, and will boost stability, in the states. Meanwhile, Al Gore can’t Persian Gulf and Central Asia. figure out how to act like an “alpha male,” while labor is walking away 35 Pakistan’s Musharraf faces from his campaign in droves. an uphill task Documentation: Statement by Lyndon LaRouche’s Presidential Lyndon LaRouche in 1998, with his Triple Curve 37 The British factor in the campaign on the Democratic schematic, showing the collapse of the physical econ- National Committee’s attack on the omy, while financial paper grows hyperbolically. Strauss-Kahn exit The French Finance Minister’s Voting Rights Act; endorsements of resignation has weakened France’s LaRouche by former South 22 To make a revolution, we “political clout,” according to the Carolina State Senator Theo must make a renaissance London Financial Times. Mitchell and Austrian diplomat Lyndon LaRouche addresses a Prof. Ernst Florian Winter. conference of the Civil Rights 38 Italy: The acquittal of Movement Solidarity (Bu¨So) party 71 LaRouche in dialogue with in Germany, on Oct. 17. “We must Andreotti and the crisis of D’Alema’s government labor movement undertake no lesser objective Excerpts from the candidate’s Nov. globally now,” he says, “than 4 live campaign webcast. launching a new renaissance, a new 41 Christian Solidarity Classical renaissance, in which International loses NGO 74 CIA will return some Stasi people become happy through status at UN being—sometimes reluctantly— files to Germany impelled to realize they have 42 East Africa needs peace, 76 Congressional Closeup something within them which is economic development, not beautiful: the experience of a validatable act of discovery of a witchcraft 78 National News universal principle, whether as a scientific principle, a physical 45 Mexico’s Vincente Fox principle, or as an artistic promotes globalization principle.” 47 Burundi is at the danger point 50 From Korea to Kosovo: the No Gun Ri massacre 51 The cost of not being ready A guest commentary by retired Army Colonel Carl F. Bernard. 52 International Intelligence EIREconomics German banks slash credit to medium-sized industry by Lothar Komp Approximately 3 million small and medium-sized businesses The large private banks in Germany now want to decouple constitute the backbone of the German economy.
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