Executive Intelligence Review, Volume 25, Number 34, August 28
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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, s this issue of EIR was heading to the printer, we unexpectedly Ronald Kokinda A Science Editor: Marjorie Mazel Hecht received Lyndon LaRouche’s article on the current array of strategic Special Projects: Mark Burdman options, titled “What Will Happen, If...?”Because of the article’s Book Editor: Katherine Notley Advertising Director: Marsha Freeman particularly urgent nature, we have rushed it into print; we introduce Circulation Manager: Stanley Ezrol it here, in the author’s own words. INTELLIGENCE DIRECTORS: “There is very little time remaining,” LaRouche writes, “for gov- Asia and Africa: Linda de Hoyos Counterintelligence: Jeffrey Steinberg, ernments and other relevant influentials, to begin to understand the Paul Goldstein deeper processes afoot throughout this planet, the processes which Economics: Marcia Merry Baker, William Engdahl will determine the outcome of the now-concluding century. History: Anton Chaitkin “Our task in the present report, is to make clear some of the Ibero-America: Robyn Quijano, Dennis Small Law: Edward Spannaus principal, if, unfortunately, rarely understood, determining features Russia and Eastern Europe: of that process which threatens not only an early general disintegra- Rachel Douglas, Konstantin George United States: Debra Freeman, Suzanne Rose tion of the world’s economies, but the extinction of most of the na- INTERNATIONAL BUREAUS: tions, and most of the population of all continents of this planet.” Bogota´: Jose´ Restrepo Explosive developments all around the world reveal how fully Bonn: George Gregory, Rainer Apel Buenos Aires: Gerardo Tera´n LaRouche’s policies are now at the center of policy deliberations— Caracas: David Ramonet but also how determined the most insane wing of the British oligarchy Copenhagen: Poul Rasmussen Houston: Harley Schlanger is to strike back against those policies. Lima: Sara Maduen˜o In Hong Kong on Aug. 14, the authorities—backed by the Beijing Melbourne: Robert Barwick Mexico City: Hugo Lo´pez Ochoa government—struck hard against the currency speculators, vowing Milan: Leonardo Servadio to save the nation-state, even if it means the end of free trade (see p. 8). New Delhi: Susan Maitra Paris: Christine Bierre Then in Russia on Aug. 17, the government adopted a series of Rio de Janeiro: Silvia Palacios emergency measures in defense of the nation’s financial existence. Stockholm: Michael Ericson United Nations, N.Y.C.: Leni Rubinstein As Rachel Douglas reports (p. 4), LaRouche’s ideas are circulating Washington, D.C.: William Jones widely among the opponents of free-market monetarism. The issue Wiesbaden: Go¨ran Haglund now for Russia, is whether LaRouche’s concept of physical economy EIR (ISSN 0273-6314) is published weekly (51 issues) will determine the reform of the system—rather than short-term des- except for the second week of July, and the last week of December by EIR News Service Inc., 317 Pennsylvania peration moves such as the devaluation of the ruble. Ave., S.E., 2nd Floor, Washington, DC 20003. (202) 544-7010. For subscriptions: (703) 777-9451. In Brazil, as our Feature reports, the visit of Helga Zepp- World Wide Web site: http://www.larouchepub.com e-mail: [email protected] LaRouche brought to the fore an enthusiastic outpouring of support European Headquarters: Executive Intelligence Review from leading political figures, for her husband’s ideas, for an alliance Nachrichtenagentur GmbH, Postfach 2308, D-65013 Wiesbaden, Otto von Guericke Ring 3, D-65205 of sovereign nation-states for the development of man. Wiesbaden, Federal Republic of Germany Tel: (6122) 9160. Homepage: http://www.eirna.com If such an alliance can be forged in the weeks and months ahead, E-mail: [email protected] Executive Directors: Anno Hellenbroich, Michael Liebig the British geopolitical gameplan, as revealed in the recent tragic In Denmark: EIR, Post Box 2613, 2100 Copenhagen ØE, Tel. 35-43 60 40 events in Africa, can be defeated once and for all. 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 Strategic Studies Economics 12 David Hall 48 Behind the bombing at the 4 Russia re-regulates David Hall leads the Tennessee U.S. Embassy in Kenya: finances; can it revive Valley Authority’s work with What will happen, if...? production? China. Lyndon H. LaRouche, Jr. evaluates Moscow’s emergency program the current array of strategic options carries some promise, that at this 42 Lawal Idris confronting President Clinton. The late hour a concert of governments A businessman from Kaduna, terrorist action against the U.S. might act to save nations and their Nigeria looks to his nation’s future, Embassy in Nairobi, he writes, must people, instead of killing both in a at a time when the leadership is in be assessed, “not as an FBI parody futile attempt to save the bubble. transition. of some ‘Sherlock Holmes’ whodunit, but in historic terms of 6 A timely LaRouche reference.” forecast published in Departments Russia 26 Report from Bonn 8 Hong Kong uses power of A long overdue debate on Photo and graphics credits: the state to hit speculators sovereignty. Cover, EIRNS/Steven Meyer. Page The commitment of China’s 12, courtesy of David Hall. Page 22, leadership to the national economic 27 Australia Dossier NASA. Page 49, Official White security of their country, gave the “Tax reform” will wreck the House photograph. Page 56, government of China’s Hong Kong economy. EIRNS/Stuart Lewis. Special Administrative Region the ability to strike a blow against 80 Editorial speculators. Time to end free trade. 11 Economic recession deepens in India 12 TVA model is being applied to flood control in China An interview with David Hall. 16 U.S. farm crisis shatters ‘market’ myths; emergency measures required Documentation: Testimony from farmers from five states at hearings held by Senate Democratic leaders on the farm crisis. 21 The railroad and the space program The construction of the U.S. railroads in the 19th century was an “Apollo project,” fostering the development of the nation. 28 Business Briefs Volume 25, Number 34, August 28, 1998 Feature International National 38 London set terror-trap for 72 Kenneth Starr’s hidden President Clinton conflict of interest The decision to bomb Sudan was a The independent inquisitor’s catastrophic diversion for the objective is not uncovering crime, President, orchestrated by British but to bring down the President. He and Israeli sources. has utilized one pretext after another since 1994. 39 LaRouche gives preliminary assessment of 75 Town hall meetings build Helga Zepp-LaRouche (left) in Sa˜o Paulo, Brazil, Au- U.S. strikes coalition to end DOJ gust 1998, with Dr. Eneas Carneiro (right), a candidate tyranny for the Presidency of Brazil, and his father (center), The Schiller Institute is organizing a a City Council member. Dr. Carneiro is receiving 40 Terrorism: Britain’s an award from the City Council, designating him an geopolitical tool growing coalition to end injustice. honorary citizen of Sa˜o Paulo. Look to the strategic dimensions of As Debra Freeman, national the bombing attack in Northern spokeswoman for Lyndon 30 Zepp-LaRouche urges Ireland on Aug. 15, just three weeks LaRouche, told an audience in Brazil to dump IMF before President Clinton is Maryland, “What the Department of scheduled to arrive there. Justice represents is the chief globalization enforcement arm of the financial Helga Zepp-LaRouche, during her establishment and their Nazi- third visit to Brazil since 1989, 41 Nigeria’s Abubakar tells economics/slave-labor policies.” called on the nation to become a nation: ‘Let us all move leader in the mobilization to forward’ reorganize the world financial In a nationally televised address, 77 Houston meet: Revive Non- system, through an alliance of Nigerian head of state Gen. A.A. Aligned Movement sovereign nation-states. Abubakar announced that the military will hand the government 78 National News 32 Zepp-LaRouche speaks over to an elected President on May with Brazilian press 29, 1999. 33 As the financial crisis hits, 42 Nigeria requires a national humanity is all ‘in one identity boat’ An interview with Lawal Idris. A speech by Helga Zepp-LaRouche to the Brazilian Institute for 44 How Peru is defeating Economic Freedom and Social narco-terrorism Development. A speech by EIR’s Lima correspondent Luis Va´squez, at a 37 ‘The world must organize Bogota´ seminar on “The Peace itself’ Processes in Peru and in A speech by Dr. Jose´ Carlos Grac¸a Colombia.” Wagner, president of the Brazilian Institute for Economic Freedom and 46 International Intelligence Social Development, welcoming Helga Zepp-LaRouche. EIREconomics Russia re-regulates finances; can it revive production? by Rachel Douglas Abrupt actions by the Russian government on Aug. 17, in- gram,” at such locations as the St. Petersburg Economic Fo- cluding the imposition of capital and exchange controls, dealt rum, held in June. One written version was Glazyev’s “Key the second blow in the space of a week, to the axioms of Measures for a Transition to Economic Growth in Russia,” the post-1971 world bubble economy.