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EIR Founder and Contributing Editor: Lyndon H 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, ur Feature this week picks up from EIR’s expose´ of the media Ronald Kokinda O Science Editor: Marjorie Mazel Hecht cartel back in January 1997, which documented the pivotal role of Special Projects: Mark Burdman the British-controlled news outlets in dictating American opinions. Book Editor: Katherine Notley Advertising Director: Marsha Freeman Over the last six months of intensive journalistic assassination efforts Circulation Manager: Stanley Ezrol against the U.S. President, there has been an increasing realization INTELLIGENCE DIRECTORS: that the media (“the elite”) represent a viewpoint diametrically op- Asia and Africa: Linda de Hoyos Counterintelligence: Jeffrey Steinberg, posed to that of the majority of “the people.” But the mind-control Paul Goldstein has yet to be broken. Economics: Marcia Merry Baker, William Engdahl A quick comparison of the stories in this issue of EIR, for exam- History: Anton Chaitkin ple, with the fare which is included in most of the rest of the mass Ibero-America: Robyn Quijano, Dennis Small Law: Edward Spannaus media, will give you a good idea of how the control is still operating. Russia and Eastern Europe: Start with the world financial meltdown. This week we are high- Rachel Douglas, Konstantin George United States: Debra Freeman, Suzanne Rose lighting the vastly underplayed story of the collapse of U.S. mutual INTERNATIONAL BUREAUS: funds, upon which untold numbers of pensions funds, colleges, and Bogota´: Jose´ Restrepo public entities have gambled their future revenues. Behind that, we Bonn: George Gregory, Rainer Apel Buenos Aires: Gerardo Tera´n review the world financial blowout, and the extremely significant Caracas: David Ramonet moves toward FDR-style measures which are being mooted by the Copenhagen: Poul Rasmussen Houston: Harley Schlanger Primakov government in Russia. Lima: Sara Maduen˜o What a contrast with the puff pieces for pumping up the financial Melbourne: Robert Barwick Mexico City: Hugo Lo´pez Ochoa bubble again, which are appearing in most of the U.S. media. Milan: Leonardo Servadio Then, look at our coverage of the Middle East summit, which has New Delhi: Susan Maitra Paris: Christine Bierre been going on at Maryland’s Wye Plantation over the past nine days, Rio de Janeiro: Silvia Palacios and compare that with other media. By and large, the most significant Stockholm: Michael Ericson United Nations, N.Y.C.: Leni Rubinstein story around the talks—the Israeli intelligence role in the terrorist Washington, D.C.: William Jones incident that interrupted the negotiations—has been blacked out by Wiesbaden: Go¨ran Haglund all English-language media. EIR (ISSN 0273-6314) is published weekly (50 issues) Most telling of all, is the fact that most English-language media except for the second week of July, and the last week of December by EIR News Service Inc., 317 Pennsylvania continue to black out the impressive record, and increasing world- Ave., S.E., 2nd Floor, Washington, DC 20003. (202) 544-7010. For subscriptions: (703) 777-9451. wide recognition of our Founder, Lyndon LaRouche. The cartel World Wide Web site: http://www.larouchepub.com e-mail: [email protected] hopes that if they don’t cover it, you will be intimidated out of acting European Headquarters: Executive Intelligence Review on the truths which LaRouche, and EIR, represent. Nachrichtenagentur GmbH, Postfach 2308, D-65013 Wiesbaden, Otto von Guericke Ring 3, D-65205 A final caution, which our Feature draws out: The British-con- Wiesbaden, Federal Republic of Germany Tel: (6122) 9160. Homepage: http://www.eirna.com trolled media cartel also, by and large, runs the “alternative” media E-mail: [email protected] Executive Directors: Anno Hellenbroich, Michael Liebig as well, which is crucial to their overall control of opinion-setting in In Denmark: EIR, Post Box 2613, 2100 Copenhagen ØE, Tel. 35-43 60 40 the United States. 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 Economics 15 Chalmers Johnson 4 Equity mutual fund losses 18 India under globalization’s An old “Asia hand,” Johnson gives wiping out Americans’ shadow his analysis of the proposal by the savings The country has not totally Japanese Finance Minister to At the end of July, equity mutual succumbed to the “free trade” establish a $30 billion fund to fund held assets were worth $2.81 mania, but neither has it taken on protect Asia’s currencies from trillion; by the end of August, some the larger task of fighting it. collapse. $450 billion in assets had disappeared. And yet, some 26 22 Space research is still a 54 Yossi Beilin million households own equity in major priority in Asia The former Israeli Foreign Minister mutuals. Pacific nations backs peace and the formalization The 49th annual congress of the of a Palestinian state. 10 Questions raised on LTCM International Astronautical scandal in Italy Federation, held in Australia, deliberated on the future of Asian Departments 11 Russian government, nations to join the “space race.” industry look to lessons of 25 Report from Bonn ‘Mittelstand,’ New Deal 24 Banking Ecologism in, technology and jobs More leading figures are speaking Going, going . out. out to revive industry, by supporting innovative small firms 26 Business Briefs 63 Australia Dossier and to adopt the dirigist initiatives Leiblers take a hit. of U.S. President Franklin D. Roosevelt. 72 Editorial The hour of the nation-state is here. 12 LaRouche ‘action program’ published in Moscow 13 Georgian political figure Photo and graphics credits: urges Clinton to appoint Cover, pages 53, 54, 69, EIRNS/ LaRouche Stuart Lewis. 14 Japan’s policymaking takes positive turn 15 IMF, Federal Reserve discredited in Japan An interview with Chalmers Johnson. Volume 25, Number 43, October 30, 1998 Feature International National 52 Netanyahu’s paid terrorist 66 Congress must first targets Wye summit investigate Starr! No sooner had President Clinton The House first has a responsibility forced the Israeli Prime Minister to to find out how the independent sit at the negotiating table, than an prosecutor carried out a coup “Islamic terrorist” grenade attack against the U.S. Constitution. gave Netanyahu the excuse to try to leave. Except that the “Islamic 68 Victory won vs. DOJ on terrorist” was a paid informant of McDade-Murtha Israel’s Shin Bet. A media mob confronts President Bill Clinton, shown A central feature of the “Citizens here with British Prime Minister Tony Blair, at a Protection Act” has been passed White House press conference on Feb. 6, 1998. 54 ‘A Palestinian state is the into law, undercutting the ability of only solution’ Federal prosecutors to carry out 28 Time to explode your An interview with Yossi Beilin. biased and political prosecutions. myths about the U.S. media Disgusted as most people are with 55 London’s warlords annex 69 Rallies tell Clinton: Bring the media, they are spending more eastern Congo in LaRouche! time accumulating “information” The message is ringing out from than ever before. We expose the 57 Congressional yahoos Lafayette Park, to Mexico City, to puppetmasters, and their policies, peddle ‘big lie’ on Stockholm. behind this paradoxical mass Cambodia addiction to something nearly Some 90% of the voters of a once 70 Congressional Closeup everyone hates. war-torn nation cast their sovereign ballots and choose their prime 71 National News 30 Who controls the media minister. That’s not good enough cartel for the “democracy mafia” in Congress and their unelected allies 34 How the media cartel in the NGOs. works 61 Pakistan’s Sharif gets yet 36 Don’t be a junk mail another opportunity to set junkie! things right One of the most pervasive con-jobs to come along in decades, targets 64 International Intelligence U.S. conservatives, to manipulate them in the direction London, and its cohorts in the U.S. eastern establishment, desire. 38 Media blackout of the real stories 42 The ‘black art’ of spreading slander 44 How the media brainwash you EIREconomics Equity mutual fund losses wiping out Americans’ savings by Richard Freeman In the recent period, Americans opening letters from invest- pension and retirement funds. Today, on average, a record ment houses informing them about the performance of their 45-50% of the financial assets of the American family, are mutual funds, stock portfolio, or pension plan, have had stock holdings. They accomplished this by going far beyond shocking news: Instead of the usual monthly gains, they are the normal method of using family savings to pay for stock incurring heavy losses. Indeed, this will increasingly be the purchases. Instead, they borrowed heavily: margin loans from case in the months ahead. brokers; borrowings from credit cards; borrowing against The latest example is the reported return of mutual fund home equity, against the assets in their stock-holding retire- equity funds (mutual funds that invest in stocks) for August ment accounts, and so on. They even threw their food and rent (the latest available month), which was reported at the end of money into the market.
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