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Executive Intelligence Review, Volume 29, Number 9, March 8, 2002

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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 Editor: Paul Gallagher Associate Editors: Ronald Kokinda, Susan Welsh yndon LaRouche, in a speech published in last week’s EIR, made Managing Editor: John Sigerson L Science Editor: Marjorie Mazel Hecht the point that “religious war has the peculiarity, that it never really Special Projects: Mark Burdman stops.” The fanaticism, the revenge and counter-revenge, which Book Editor: Katherine Notley Photo Editor: Stuart Lewis turned all Europe into a killing field between 1511 and 1648, threatens Circulation Manager: Stanley Ezrol to engulf the world once again, as a deliberate policy on the part of a INTELLIGENCE DIRECTORS: financier oligarchy desperate to maintain its power. You can see it in Counterintelligence: Jeffrey Steinberg, Michele Steinberg the war crimes being committed by the Sharon government in Israel; Economics: Marcia Merry Baker, in the new outbreak of sectarian violence in India; and in our reports Lothar Komp History: Anton Chaitkin in this issue on South and Southeast Asia. Ibero-America: Dennis Small This is the explosive mixture into which the incendiary gang that Law: Edward Spannaus Russia and Eastern Europe: includes Zbigniew Brzezinski, Samuel Huntington, Paul Wolfowitz, Rachel Douglas John McCain, and Joseph Lieberman, proposes to throw a match, United States: Debra Freeman, Suzanne Rose with their drive for war against Iraq. “Coalition be damned!” they INTERNATIONAL BUREAUS: Bogota´: Javier Almario say. “If the rest of the world is against us, so what? We will go Berlin: Rainer Apel it alone!” Buenos Aires: Gerardo Tera´n Caracas: David Ramonet LaRouche pinpointed this Nietzschean mind-set last year (“The Copenhagen: Poul Rasmussen Insanity of Bush and Sharon: The Bentham Syndrome,” EIR, May 4, Houston: Harley Schlanger Lima: Sara Maduen˜o 2001). The oligarchy is operating according to a clinical model, “like Melbourne: Robert Barwick Adolf Hitler’s Nazi regime, of the Nietzschean existentialist principle Mexico City: Marivilia Carrasco, Rube´n Cota Meza of ‘the triumph of the (arbitrary) will,’ ” he wrote. Having adopted a Milan: Leonardo Servadio course of action, they will pursue it, “in willful disregard for the New Delhi: Ramtanu Maitra Paris: Christine Bierre consequences of their actions, either for the welfare of the U.S. econ- Rio de Janeiro: Silvia Palacios omy and our citizens, or the peace of the world.” Stockholm: Michael Ericson United Nations, N.Y.C.: Leni Rubinstein Many people of good intentions today are speaking out against the Washington, D.C.: William Jones war on Iraq, and against Sharon’s war crimes. But only LaRouche’s Wiesbaden: Go¨ran Haglund personal leadership will make a difference, as he demonstrates, in EIR (ISSN 0273-6314) is published weekly (50 issues) several contributions to this week’s issue: “Can the Democratic Party except for the second week of July and the last week of December, by EIR News Service Inc., 317 Pennsylvania Survive?” “God Only Knows!” and “LaRouche and Teller vs. the Ave., S.E., 3rd Floor, Washington, DC 20003. (202) 544-7010. For subscriptions: (703) 777-9451, or toll- ‘Utopians.’ ” The danger of war—even nuclear war—will not go free, 888-EIR-3258. World Wide Web site: http://www.larouchepub.com away, until the power of the financier oligarchy is broken, and the e-mail: [email protected] global economic breakdown crisis is reversed, by means of European Headquarters: Executive Intelligence Review Nachrichtenagentur GmbH, Postfach 2308, LaRouche’s New Bretton Woods policies. And that will not happen, D-65013 Wiesbaden, Bahnstrasse 9-A, D-65205, Wiesbaden, Federal Republic of Germany until people (including, but not limited to, the donkeys of the Demo- Tel: 49-611-73650. Homepage: http://www.eirna.com E-mail: [email protected] Executive Directors: Anno cratic Party!) change the way they think about the problems we face. Hellenbroich, Michael Liebig In Denmark: EIR, Post Box 2613, 2100 Copenhagen ØE, The responsibility rests with the readers of EIR, to make sure that Tel. 35-43 60 40 happens. In Mexico: EIR, Serapio Rendo´n No. 70 Int. 28, Col. San Rafael, Del. Cuauhte´moc. Me´xico, DF 06470. Tels: 55-66- 0963, 55-46-2597, 55-46-0931, 55-46-0933 y 55-46-2400. Japan subscription sales: O.T.O. Research Corporation, Takeuchi Bldg., 1-34-12 Takatanobaba, Shinjuku-Ku, Tokyo 160. Tel: (03) 3208-7821. Copyright 2002 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 Economics 4 The Downfall of J.P. Morgan Chase Cover The indications are growing that the This Week world’s largest derivatives bank has failed. If EIR’s surmise is correct, the level of panic behind the scenes LaRouche: “The ass must be extraordinary. you save, may be your own.” 6 Tokyo ‘Just Trying To Reach the End of March’ 10 Andropov’s ‘Free Trade’ Turn Still Hurts Russia 22 A Swift Modest Proposal: Can the Democratic Party Survive? 11 New German Data End By Lyndon H. LaRouche, Jr. “The problem is, that Election Economic Fakery saving the Democratic Party, if that is, indeed, still possible, requires something more than a simple proposal 13 A ‘Keplerian’ Dialogue: for action. The necessary action could not be understood, What Do You Know About unless we change the way in which most in the party, and Economics? outside it, think about politics up to now.” Part 1 of a pedagogical exercise by Jonathan Tennenbaum. 19 Croatian Highway Is A Key European Project 20 Is the IMF Blocking Croatia Reconstruction? Photo and graphics credits: Cover, pages 31, 32, 51, 55, EIRNS. Pages 8, 27, 34, 40, 59, EIRNS/Stuart Lewis. Pages 12, 44, Bundesbildstelle Bonn. Pages 14, 19, EIRNS/Michael Leppig. Pages 15, 35, EIRNS/Philip Ulanowsky. Page 17, USDA/D.J. Feeley. Page 20, NATO. Page 23, EIRNS/Donald Mallory. Page 24, Franklin D. Roosevelt Library. Page 33 (McCain), 37, DoD Photo/Helene Stikkel. Pages 33 (Lieberman), 68, Senator Lieberman’s website. Pages 46, 47, 48, Murder in the Name of God. Page 61, Library of Congress. Page 66, PRNewsFoto. www.larouchepub.com Volume 29, Number 9, March 8, 2002 International National Reviews 36 Prince Abdullah’s Peace 60 Abraham Lincoln Rips 7 LaRouche and Teller vs. Plan, and the Drive forSamuel Huntington’s Lies the ‘Utopians’ War on Iraq The so-called Institute for American Lyndon H. LaRouche, Jr. comments The much-discussed new Saudi Values has hijacked the views of on Sunday Telegraph author initiative is provoked by threats of President Lincoln, among others, to Alasdair Palmer’s review of destabilization and a broader war support their aim of launching a Edward Teller, Memoirs: A around Iraq; but only U.S. pressure new imperial war, a Clash of Twentieth-Century Journey in on Israel, and peace-making based Civilizations. But the real Abraham Science and Politics. on economic development, as Lincoln would have had none of it, Lyndon LaRouche has proposed it, as Anton Chaitkin reports. 46 Can Israel Save Itself From has a chance of stopping that war. Fascism? 63 Iraq a ‘Phantom Threat’ Murder in the Name of God: The 39 Primakov Warns of World Says UN Arms Inspector Plot to Kill Yitzak Rabin, by War Over Iraq Michael Karpin and Ina Friedman. 64 Wall St. Dirty Tricks Hit 40 God Only Knows! LaRouche Campaign By Lyndon H. LaRouche, Jr. The The American Family Foundation is Departments current crop of Washington spreading well-worn slanders, to governmental and think-tank intimidate campus volunteers for 72 Editorial geniuses “are babbling like fools the LaRouche campaign. Give Colombia Immediate Help, drunk on Zbigniew Brzezinski’s Not Troops. utopian brand of home-made 65 Who Owns ‘Bull Moose’? strategic moonshine. A profile of Sen. John McCain III. 41 U.S. Threats Bring Iran 67 The Senator from ‘Mega’ and Iraq Closer A profile of Sen. Joseph Lieberman. 43 Will Britain’s Blair Crack 70 National News Before ‘Iraq War Summit’ With Bush? 49 Nepal’s Crisis Endangers South Asian Stability 52 A Divided Bangladesh Is Fertile Ground for Extremism To Grow Correction: In “Derivatives Write Epitaph for Financial Markets,” in 54 Hype and Falsehoods our March 1 issue, an editor’s error Abound About Terrorism misidentified “credit derivatives.” in S.E. Asia Credit derivatives cover potential defaults, and do not include the much larger category of “interest 57 The Destruction of the rate derivatives.” Thus credit Philippines Since the derivatives do not constitute a ‘Edsa’ Revolution quantitatively large portion of the A guest commentary by Herman derivatives market, estimated Tiu Laurel. officially at $100 trillion, and much higher by EIR author John Hoefle. EIREconomics The Downfall of J.P. Morgan Chase by John Hoefle Has J.P. Morgan Chase & Co., the world’s largest derivatives ahead of both was Citigroup, which became the first U.S. bank bank, gone bankrupt? The indications are growing that the holding company to break the trillion-dollar barrier, with bank has indeed failed, and that emergency operations are $1.05 trillion in assets. These three easily outdistance the rest under way to wind down its huge derivatives portfolio and of the pack, reflecting the rapid consolidation talking place in prepare the public for some sort of dramatic bailout or restruc- the banking world. The number-four bank was Wachovia (ne´e turing.
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