Executive Intelligence Review, Volume 24, Number 26, June 20
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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, Webster Tarpley, William Wertz Associate Editor: Susan Welsh n June 6, the U.S. Department of Labor announced that the official Managing Editors: John Sigerson, O Ronald Kokinda unemployment level for May was 4.8%, the lowest level in 23 years. Science Editor: Marjorie Mazel Hecht All around the country, radio and TV commentators babbled that “the Special Projects: Mark Burdman Book Editor: Katherine Notley economy has never looked so good.” Advertising Director: Marsha Freeman Our Feature this week, is an historical and scientific dissection Circulation Manager: Stanley Ezrol of just how it is that people could be so stupid. We take the example, INTELLIGENCE DIRECTORS: not of America in 1997, but of France in 1814-15, when Augustin Asia and Africa: Linda de Hoyos Counterintelligence: Jeffrey Steinberg, Cauchy and his confre`res smashed the great Ecole Polytechnique, Paul Goldstein Economics: Marcia Merry Baker, and introduced the virus of positivism. William Engdahl Some among our readers may complain, “But this is about math. History: Anton Chaitkin Ibero-America: Robyn Quijano, Dennis Small Math is not my specialty! This is over my head!” Law: Edward Spannaus Look more closely. As Lyndon LaRouche writes in his intro- Russia and Eastern Europe: Rachel Douglas, Konstantin George duction to Pierre Beaudry’s report, Cauchy’s perversion of French United States: Kathleen Klenetsky science has everything to do with the idiotic opinions people hold INTERNATIONAL BUREAUS: these days: “Both the putative economics and finance professionals, Bogota´: Jose´ Restrepo Bonn: George Gregory, Rainer Apel and generally accepted popular opinion ‘about how economy works,’ Buenos Aires: Gerardo Tera´n supports the delusion, that increasing the number of incidents of paid Caracas: David Ramonet Copenhagen: Poul Rasmussen employment, or the simple financial turnover daily, means economic Houston: Harley Schlanger growth, even if the real income and output per-capita of labor-force Lima: Sara Maduen˜o Mexico City: Hugo Lo´pez Ochoa has been collapsing, for more than a quarter-century. That defec- Milan: Leonardo Servadio tive, but prevailing sort of textbook and classroom economics, is New Delhi: Susan Maitra Paris: Christine Bierre premised, axiomatically, upon precisely the same fallacies which Rio de Janeiro: Silvia Palacios Cauchy introduced to destroy France’s science. Not only that, but Stockholm: Michael Ericson Washington, D.C.: William Jones U.S. private and governmental policy-shaping, is dominated by the Wiesbaden: Go¨ran Haglund influence of radical positivism in the sundry realms of so-called ‘so- EIR (ISSN 0273-6314) is published weekly (50 issues) cial sciences,’ and in academic programs generally.” except for the second week of July, and the last week of Just look at France today: The elites are paralyzed by the eco- December by EIR News Service Inc., 317 Pennsylvania Ave., S.E., 2nd Floor, Washington, DC 20003. (202) nomic crisis. The Maastricht Treaty is tearing Europe apart, and yet 544-7010. For subscriptions: (703) 777-9451. World Wide Web site: http://www.larouchepub.com governments swear their fidelity to it. Beaudry underlines that it was e-mail: [email protected] European Headquarters: Executive Intelligence Review precisely because of the destruction of the Ecole Polytechnique by Nachrichtenagentur GmbH, Postfach 2308, D-65013 Wiesbaden, Otto von Guericke Ring 3, D-65205 Cauchy et al., that France “lost its soul as a nation-state, and was Wiesbaden, Federal Republic of Germany Tel: (6122) 9160. Homepage: http://www.eirna.com turned into a Maastricht bureaucratic zombie state at the service of E-mail: [email protected] Executive Directors: Anno Hellenbroich, Michael Liebig the City of London, and of the European oligarchy.” In Denmark: EIR, Post Box 2613, 2100 Copenhagen ØE, The issues of methodology presented in these pages, will deter- Tel. 35-43 60 40 In Mexico: EIR, R´ıo Tiber No. 87, 5o piso. Colonia mine whether France, and other nations, can summon up the moral Cuauhte´moc. Me´xico, DF, CP 06500. Tel: 208-3016 y 533- 26-43. and intellectual fitness to survive the crisis now upon us. Japan subscription sales: O.T.O. Research Corporation, Takeuchi Bldg., 1-34-12 Takatanobaba, Shinjuku-Ku, Tokyo 160. Tel: (03) 3208-7821. Copyright © 1997 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 Departments Economics 51 Baroness Caroline Cox 58 Report from Bonn 4 BIS admits the financial Lady Cox is the Deputy Speaker of A government collapse-in-progress. system is finished the British House of Lords, and the The annual report of the Bank for head of Christian Solidarity 59 Australia Dossier International Settlements, citing International. Royal Commission pushes drugs. “bank fragility” here, the “downside” of “liberalized financial 72 Editorial sectors” there, candidly remarks: Exonerate LaRouche. “When the bubble bursts, banks and Photo and graphics credits: their customers will face major Cover: EIRNS/John Sigerson, Alan difficulties.” Yue. Page 16, Library of Congress Prints and Photographs Division. Correction: An editorial error 6 Europe at a crossroads: Page 24 (Volcker), EIRNS/Stuart appeared in our review of Conor ‘Maastricht Depression’ or Lewis. Page 28, EIRNS/Philip Cruise O’Brien’s book The Long Ulanowsky. Page 31, Albert Betler, economic development Affair. In drawing the parallel The new French government of The Discovery of Nature (New between the current genocide in Lionel Jospin may derail the York: Simon and Schuster, 1965), Zaire to the 1970s reign of terror in timetable for the Maastricht Treaty, courtesy AIP Niels Bohr Library. Cambodia, French Minister Jacques sending the other EU governments Page 41, EIRNS/John Sigerson. Godfrain was comparing Pol Pot to into a panic. Page 42, EIRNS/Christopher Lewis. Laurent Kabila, not to O’Brien, Page 46, EIRNS/Andrew Spannaus. whom we otherwise accurately 8 Currency Rates described as “one of the chief conceptual architects” of the mass 9 Bush blockade set to blow murder in Africa. up Korea 11 Emergency food relief for N. Korea A Plan of Action issued by the Schiller Institute. 12 Business Briefs Volume 24, Number 26, June 20, 1997 Feature International National 14 How Cauchy ruined France 62 Labor urges Clinton to put Lyndon H. LaRouche, Jr. situates Africa on Denver G-8 the historical importance of agenda Augustin Cauchy’s frauds against Led by the AFL-CIO’s John science. “The destruction of French Sweeney, the labor movement is science and culture,” he writes, going beyond “trade union” issues, “beginning the reign of the and organizing for social, political, Restoration monarch, Louis XVIII, and moral imperatives. is the best available choice of clinical case, for understanding how 64 FDR-PAC seminar in the quality of culture determines the moral fitness for leadership among Seattle maps out necessity modern nations.” for Eurasian Land-Bridge Hutu refugee children at a camp near Kisangani, Zaire, 1997. 25 The Bourbon conspiracy 65 Ethnicism hinders Africa’s that wrecked France’s development 40 British pick new targets, as The speech of the former Ethiopian Ecole Polytechnique Africa quagmire deepens ambassador to the Soviet Union to Pierre Beaudry analyzes the British- Even the American media are now the Seattle FDR-PAC seminar. Venetian cabal that imposed the admitting that the “new leaders of “linear classroom mathematics” we Africa” are as bloodthirsty as their 67 DOJ hit squad goes against have today, and eliminated the pride British puppet-masters. of the French nation-state—its White House Platonic educational system. 45 What will Italy do to stop African genocide? 68 Congressional Closeup 36 Napoleon and Pozzo: The Italian member of Parliament Venetian agents deployed Publio Fiori submitted this 70 National News against France interrogatory to the minister of external affairs. 48 Africa needs economic development as the precondition for lasting peace A speech by Jerome Ndiho of Burundi’s National Council for the Defense of Democracy. 50 Baroness Cox stokes the flames of war in Africa for British Intelligence 54 Mexican elections: Narco- terrorists ready ‘final offensive’ 56 Algerian regime stages fraudulent elections 60 International Intelligence EIREconomics BIS admits the financial system is finished by John Hoefle While it is not at all unusual for central bankers to rail at To make sure that its insider audience gets the message, nation-states for “interfering” in the regulation of the global the BIS put its new disclaimer right up front, in paragraph two financial system, the Bank for International Settlements of the report’s introduction. “While plausible explanations added a critical new element to the diatribe, in its annual can be suggested for many of the economic and financial report, released on June 9, admitting that it does “not fully developments in 1996, they were nevertheless surprising in a understand” the forces which are controlling the world’s number of respects,” the BIS