Executive Intelligence Review, Volume 20, Number 2, January 8, 1993
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I I ' ! . J", ! . , J I I t l Did you ever wish your friends and relatives understood what you do about how the world really works� In this holiday season ... Give them T1Ie Power of Reason. This SeasonS Offeringsfrom EIR: 1. The Power of Reason: 1988 By Lyndon H. LaRouche, Jr. $10.00 Special Dope, Inc., Third Edition 2. - Holiday The Book that Drove Kissinger Crazy $16.00 Offer! 3. The Ugly Truth About the Anti-Defamation League $ 7.00 Buy the other 5 books and get LaRouche's 4. George Bush: The Unauthorized Biography By Webster Tarpley and Anton Chaitkin $20.00 The Power of Reason FREE! EIR Also Recommends $78.00 VALUE, now $68.00 5. The Franklin Cover-Up (includes shipping and handling) By John DeCamp $ 9.95 Or you can 6. Global Warming, The Rest of the Story order each book By Gerd R. Weber $ 9.95 separately. Make check or money order payable to: For shipping and handling, add to all Ben Franklin Booksellers orders: $3.50 first book, plus $.50 for $ . each additional book. 107 South King Street Leesburg, VA 22075 Phone: (800) 453-4108 (703) 777-3661 Visa and MasterCard accepted. Virginia residents please add 4.5% Fax: (703) 777-8287 sales tax. Founder and Contributing Editor: Lyndon H. LaRouche. Jr. Editor: Nora Hamerman Managing Editors: John Sigerson, Susan Welsh From the Editor Assistant Managing Editor: Ronald Kokinda Editorial Board: Warren Hamerman. Melvin Klenetsky. Antony Papert. Gerald Rose. Edward Spannaus, Nancy Spannaus, Webster Tarpley, he Feature this week is directed to independent thinkers. The Carol White, Christopher White Science and Technology: Carol White upsurgeT in both Nazi and "anti-fascist" violence in Germany has Special Services: Richard Freeman received much international media attention (especially the former, Book Editor: Katherine Notley although the latter is equally a threat). This medi� campaign is de Advertising Director: Marsha Freeman Circulation Manager: Stanley Ezrol signed to weaken Germany as a potential force for the good in INTELLIGENCE DIRECTORS: the world, by portraying Germans as innately prone to right-wing Agriculture: Marcia Merry fascism. Our report shows that whatever ideological flaws a tiny Asia: Linda de Hoyos Counterintelligence: Jeffrey Steinberg, minority of Germans may harbor, Germany's gravest error has been Paul Goldstein to tolerate the meddling into its economic, political, and cultural life Economics: Christopher White European Economics: William Engdahl by racists of the Anglo-American oligarchy. Ibero-America: Robyn Quijano, Dennis Small Law: Edward Spannaus Meanwhile, that oligarchy, operating through Its "secret govern Medicine: John Grauerholz, M.D. ment," handed a fresh setback to the cause of justice in the United Russia and Eastern Europe: Rachel Douglas, Konstantin George States, when a jury in Alexandria, Virginia on Dec. 31, 1992 acquit Special Projects: Mark Burdman ted four defendants on trial for conspiracy to kidnap 36-year-old United States: Kathleen Klenetsky Lewis du Pont Smith, an heir to the du Pont fortune, and his wife INTERNATIONAL BUREAUS: Bangkok: Pakdee Tanapura, Sophie Tanapura Andrea Diano-Smith, and "deprogram" them of their allegiance to Bogota: Jose Restrepo the political cause of Lyndon LaRouche. The decision came after Bonn: George Gregory, Rainer Apel Copenhagen: Poul Rasmussen the judge in the case, Timothy Ellis, undermined the charge he had Houston: Harley Schlanger made only one day earlier and in effect ordered the jury to acquit on Lima: Sara Madueiio Melbourne: Don Veitch bizarre technical grounds, despite the massive evidence of a crime Mexico City: Hugo Lopez Ochoa which had been presented in the courtroom_ Milan: Leonardo Servadio New Delhi: Susan Maitra Before the verdict was ordered by a corrupt j�dge, the trial first Paris: Christine Bierre exposed in a courtroom the blatantly criminal m�thods of the "Cult Rio de Janeiro: Silvia Palacios Stockholm: Michael Ericson Awareness Network" against LaRouche. The transcripts of taped Washington. D.C.: William Jones conversations between the defendants are now a· permanent part of Wiesbaden: Goran Haglund the public record_ EIR will be involved in the publication of these EIR (ISSN 0273-6314) is published weekly (50 issues) records and we urge you to assist us in circulating:the truth as widely except for the second week of July. and the last week of December by EIR News Service Inc" 3331/, as possible. Pennsylvania Ave" S.E .. 2nd Floor. Washington. DC 20003. (202) 544-70/0. For subscriptions: (703) 777- The interview with Lyndon LaRouche in Economics offers a 9451. fresh portrait in his own words of the man the Ang.lo,American European Headquarters: Executive Intelligence Review Nachrichtenagentur GmbH, Postfach 2308, establishment most fears, because his moral and scientific approach 0-6200 Wiesbaden. Otto von Guericke Ring 3, 0-6200 Wiesbaden-Nordensladt. Federal Republic of Germany to economics is one essential element for getting �he world out of its Tel: (6122) 2503. Executive Directors: Anno Hellenbroich, Michael Liebig current dangerous mess. Finally, we would stress, inharmony with In Denmark: ElR, Post Box 2613. 2100 Copenhagen 0E. Tel. 35-43 60 40 the Bosnian foreign minister's statements in the U.S. on Dec_ 18 In Mexico: EIR, Francisco Diaz Covarrubias 54 A-3 (see p. that the criminal western indifference to B9snia still can, Colonia San Rafael. Mexico OF. Tel: 705-1295. 54) Japan subscription sa/es: O.T.O. Research Corporation. and must, be reversed. Takeuchi Bldg .• 1-34-12 Takatanobaba, Shinjuku-Ku. Tokyo 160. Tel: (03) 3208-7821. Copyright © 1993 EIR News Service. All rights reserved. Reproduction in whole or in part without pennission strictly prohibited. Second-class postage paid at Washington D.C., and at an additional mailing offices. Domestic subscriptions: 3 months-$I25, 6 months-$225, 1 year-$396. Single issue-$IO Postmaster: Send all address changes to EIR. P.O. Box 17390, Washington, D.C. 20041-0390. ,�TIillContents Interviews Strategic Studies Economics 7 Lyndon LaRouche 26 Qin Shi-huang, Klein, and 4 B�nkers push forbearance The economist and statesman the destruction of China to �eep debt bubble a80at speaks from his prison cell on the The P.R.C. government's The con job by the banks to save deadly disease of "political announcement of a new annual thelDselves by further looting the correctness," the crisis in Russia, fe stival, dedicated to the most economy and the public, is being and what to do to solve the world infamous tyrant of Chinese history., pre�ented not as the thievery and economic depression, is equivalent to holding a fe stival in fraud that it is, but as an attempt to the West in honor of the Roman stiIfulate the "recovery." 28 Lawrence Klein Emperor Caligula. Not The former director of Wharton coincidentally. it coincides with 6 Gaidar is out, but his Econometric Forecasting at the strengthened ties to U.S. economist policies remain Whart<JD School of the University Lawrence Klein. Michael of Pennsylvllnia, and now professor Billington reports. 7 Return to fundamentals of at the University of Pennsylvania, pr�uction-based Klein was recently hired as chief 28 China 'economic czar': ecqnomics economic a(fviserto the State Don't develop quickly An iinterview with Lyndon Planning Commission of the An interview with Lawrence Klein. LaRouche. People's R�public of China. 30 Profile: Lawrence Klein "" 14 KtVnes's fascism with a Books Br,tish face ,J> Jonathan Tennenbaum warns the Departments patriots of eastern Europe and the 56 Liberal! 'democracy and the Third World not to fall for fascist 'end oflriankind ' 22 Report from Bonn economics in Keynesian disguise; The Endo/History and the Last Blue overalls, not blue helmets. Man, by ncis Fukuyama. I ..' Fra",- 16 In memoriam: Minoru 51 Report from Rio Toyoda The end of the Collor farce . Photo credfts: Cover, EIRNS. 17 Currency Rates 52 Andean Report Page 8, Ford Motor Co. Pages 10, 49 , Stuart Lewis. Pages 27, 33, Shining Path steps up war in Peru . 18 Vatican's Cardinal Sodano EIRNS. Page 39, Prints and backs neoliberal economics 53 Panama Report Photographs Division/Library of , Congress. Page 39, Triangle Studio POWs score prelate's "complicit 20 Transport associations of Photography. silence ." att�mpt to head offClinton retreat 72 Editorial The; President -elect has already Cold turkey. begun to backpedal from the cen�rpiece of his economic stimulus program: a $20 billion increase in spending on U.S. phy�ical infrastructure. 23 AgHculture Australian farmers fight back. 24 BU$iness Briefs a Volume 20, Number 2, January 8, 1993 Feature International National 42 Beijing and Moscow enter a 60 Bush pardons 'political' 'new era' in relations targets-but not LaRouche Boris Yeltsin's visit to China, and If Bush were truly concerned, as he the array of agreements signed there says he is, about "criminalization of in all areas, point up the abject policy differences," he would have failure of Anglo-American policy granted executive clemency to toward the East. Lyndon LaRouche. Instead, observers are asking whether Bush 44 From the sellout of Bosnia will pardon himself next. A scene in a Gennan city: Rightist graffitti urging that to the maelstrom of World foreigners be expelled. have been painted over with 62 Corrupt judge fixes counter-slogans urging that the Nazis be expelled. War III Who benefits from the rising tide of violence? acquittal of 'Kidnapers, 46 Inter-American Dialogue Inc.' gang in Virginia 32 Anglo-Americans fostering 'sharpens dagger' against Nazi revival in Germany national sovereignty 64 Congress continues BNL The Nazi revival would not be Documentation: Excerpts from probe despite Justice occurring except for a sweeping Convergence and Community: The Departmeat coverup destabilization of Germany by the Americas in 1993. same British, American (and, now, 66 U.S. family farmers tell Israeli and Zionist lobby) factions, 50 The Dr.