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Executive Intelligence Review, Volume 25, Number 42, October 23

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Executive Intelligence Review, Volume 25, Number 42, October 23 EIR Founder and Contributing Editor: Lyndon H. LaRouche, Jr. Editorial Board: Lyndon H. LaRouche, Jr., Muriel Mirak-Weissbach, Antony Papert, Gerald From the Managing Editor Rose, Dennis Small, Edward Spannaus, Nancy Spannaus, Jeffrey Steinberg, William Wertz Associate Editor: Susan Welsh Managing Editors: John Sigerson, he world cannot afford a loss of nerve, a failure of command on Ronald Kokinda T Science Editor: Marjorie Mazel Hecht the part of the United States, as, at any given moment, the world may Special Projects: Mark Burdman be just seconds away from the disintegration of the global financial Book Editor: Katherine Notley Advertising Director: Marsha Freeman system. That, of course, means leadership from the Office of the Pres- Circulation Manager: Stanley Ezrol ident. INTELLIGENCE DIRECTORS: The LaRouche movement is defending that Office and President Asia and Africa: Linda de Hoyos Counterintelligence: Jeffrey Steinberg, Clinton from British-inspired attacks whose purpose is to emasculate Paul Goldstein the power of the United States to lead the world into a New Bretton Economics: Marcia Merry Baker, William Engdahl Woods system. As we go to press, a major rally is scheduled at History: Anton Chaitkin the White House on Oct. 17, at which signatures on the petition Ibero-America: Robyn Quijano, Dennis Small Law: Edward Spannaus “Americans to Save the Presidency” will be delivered to the White Russia and Eastern Europe: House. Rachel Douglas, Konstantin George United States: Debra Freeman, Suzanne Rose But, it is also necessary for President Clinton to take on the finan- INTERNATIONAL BUREAUS: cial establishment. In this week’s Feature, Lyndon LaRouche picks Bogota´: Jose´ Restrepo up where he left off with “Time to Tell the Truth” (last week’s issue), Bonn: George Gregory, Rainer Apel Buenos Aires: Gerardo Tera´n in addressing Clinton’s weaknesses. The President cannot simply Caracas: David Ramonet wait for favorable opportunities to act, but must himself create them. Copenhagen: Poul Rasmussen Houston: Harley Schlanger As a result of the failure to act in the G-7, G-22, and IMF-World Bank Lima: Sara Maduen˜o meetings in Washington in early October, the world has entered a Melbourne: Robert Barwick Mexico City: Hugo Lo´pez Ochoa more critical, reverse-leverage phase of global collapse. Clinton’s Milan: Leonardo Servadio “fatal, or nearly fatal political blunder during the period of that confer- New Delhi: Susan Maitra Paris: Christine Bierre ence, was his loss of nerve in a crucial situation, a situation not of his Rio de Janeiro: Silvia Palacios making, but a situation occurring ‘on his watch,’ occurring at a time Stockholm: Michael Ericson United Nations, N.Y.C.: Leni Rubinstein when the commanding responsibility lay in his hands,” says Washington, D.C.: William Jones LaRouche. Wiesbaden: Go¨ran Haglund As the world knows, LaRouche would show no such weakness. EIR (ISSN 0273-6314) is published weekly (50 issues) Our cover story (see National), reports the growing demand for Clin- except for the second week of July, and the last week of December by EIR News Service Inc., 317 Pennsylvania ton to name LaRouche as an economic adviser. In Economics, we Ave., S.E., 2nd Floor, Washington, DC 20003. (202) 544-7010. For subscriptions: (703) 777-9451. have an exclusive interview with leading Russian economist Dr. World Wide Web site: http://www.larouchepub.com e-mail: [email protected] Sergei Glazyev, who calls for new economic leadership in the European Headquarters: Executive Intelligence Review United States. Nachrichtenagentur GmbH, Postfach 2308, D-65013 Wiesbaden, Otto von Guericke Ring 3, D-65205 In Strategic Studies, we dispel more of the myths of U.S. postwar Wiesbaden, Federal Republic of Germany Tel: (6122) 9160. Homepage: http://www.eirna.com history—related to the role of John J. McCloy—which is crucial to E-mail: [email protected] Executive Directors: Anno Hellenbroich, Michael Liebig understanding the mess that the United States is in today. In Denmark: EIR, Post Box 2613, 2100 Copenhagen ØE, Tel. 35-43 60 40 In International, we update British-instigated wars (see the article In Mexico: EIR, R´ıo Tiber No. 87, 5o piso. Colonia on Ariel Sharon, in particular), which are also designed to destroy the Cuauhte´moc. Me´xico, DF, CP 06500. Tel: 208-3016 y 533- 26-43. power of the United States to act for the good. 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 6 Sergei Glazyev 48 How our world was nearly 4 After financial crash, Dr. Glazyev, the prominent Russian destroyed Russia acts on food supply economist, outlines the changes Lyndon H. LaRouche, Jr. and banks needed in Russia and the world introduces the story of Wall Street The Primakov government is economy. lackey John J. McCloy, the interacting with the fatally ill global “sorcerer’s apprentice” who, in financial system, but Russia cannot 12 Erik Hoffmeyer concert with Nikita Khrushchev, delay the adoption of emergency The recently retired Governor of and much of the London and Wall economic measures on the part of Denmark’s Central Bank admits, Street establishments, collaborated the state, before this winter. “We now have a recession or worse in a wildly utopian, one-worldist in a large part of the world.” project, aimed at eliminating the 6 ‘Serious changes’ needed in sovereignty of all nation-states. Russia and the world 40 Viveca Hazboun Their collaboration is the watershed of every principal catastrophe economy Dr. Hazboun, director of the the An interview with Sergei Glazyev. Guidance and Training Center for suffered by the U.S.A., among others, since the Cuba Missile the Child and Family in Bethlehem, 8 Global reverse-leverage is the only female child psychiatrist Crisis. in Palestine. collapse is under way 51 How Mr. Fixit nearly wrecked the world 9 U.S. exports, industry nose- Book Reviews Stuart Rosenblatt reviews Kai dive under ‘Asian phase’ of Bird’s biography of John J. world crisis 51 How Mr. Fixit nearly McCloy, The Chairman. wrecked the world 10 Indonesia nears brink of The Chairman, by Kai Bird. 58 Supplement I: British disintegration aimed for end of Germany, not Nazism 12 Danish former Central Departments Bank chief on crisis 60 Supplement II: Churchill’s An interview with Erik Hoffmeyer. 15 Report from Bonn plans for World War III A lot of ugly trouble lies ahead. 13 Mexican government panicked over economy Correction: In “ ‘Bailouts’ Won’t 45 Australia Dossier Work: The Whole Financial System Off in La-La Land. 14 Blair becomes unhinged as Is Disintegrating,” in last week’s economy crumbles issue, Figures 2 and 4 should have 72 Editorial been reversed. Kissinger spills some beans. 16 Business Briefs Photo and graphics credits: Cover, pages 7, 19, 37, EIRNS/ Stuart Lewis. Page 20, EIRNS. Page 27, EIRNS/Carlos de Hoyos. Page 49, U.S. National Archives. Page 55, Library of Congress Prints and Photographs Division. Page 57, ©Simon and Schuster Volume 25, Number 42, October 23, 1998 Feature International National 18 Paul Krugman’s cargo-cult 32 Cardoso wins elections in economics Brazil . sort of By Lyndon H. LaRouche, Jr. “What The narrow re-election of President will occur during the temporary Cardoso reflects not a popular phase which comes next, after the mandate, but nationwide discontent, October 12-15 interval of transition, as the financial storm begins to hit no one knows with certainty, and full-force. almost no one could imagine. What is certain, is that all that assortment 34 ‘Balkan graveyards are of ‘crisis-management’ tinkering, as filled with President proposed by Tony Blair, from Schiller Institute demonstrators at the Capitol Build- Milosevic’s broken ing in Washington, D.C. on Oct. 13, the International France, from circles around former Day of Action, call for President Clinton to turn to Chancellor Helmut Schmidt in promises’ Documentation: Commentaries LaRouche, and for the nation to rally to the President. Germany, and Clinton, will from the Kosovan press demand accomplish nothing, but to worsen intervention from NATO to stop the 62 Name LaRouche Clinton’s the situation much more than had genocide. economic adviser, say they made no such efforts; already, the effect of such tinkering has been thousands worldwide Rallies, demonstrations, and town to divert discussion of real solutions 36 Sharon appointment in meetings were held on Oct. 13 in from the agenda.” Israel makes death of Oslo Accords official North and South America, Europe, A dossier by Joseph Brewda. and Australia, responding to a call issued by Helga Zepp-LaRouche. 40 ‘We are greater than the pain’ 64 Starr’s quest to seize the An interview with Dr. Viveca Paula Jones case Hazboun. 66 CIA Inspector General 42 Unity conference challenges confirms Bush-North ties to silence on Rwanda cocaine Contras Documentation: Common You read it first in EIR’s September Declaration of the Rwandan 1996 Special Report, “Would a Democratic Opposition. President Bob Dole Prosecute Drug Super-Kingpin George Bush?” 46 International Intelligence Now, Volume II of the declassified report of the CIA Inspector General documents the links between the Contras and major Colombian drug- trafficking organizations. 68 EO 12333 and the Contra drug-running cover-up Executive Order 12333, signed in 1981, permitted U.S. intelligence agencies to enter into secret contracts with “private companies or institutions”—the core of the Contra operation.
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