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 Associate Editors: Ronald Kokinda, Susan Welsh Managing Editor: John Sigerson he British oligarchy’s whirlwind courtship of Russia’s President Science Editor: Marjorie Mazel Hecht T Special Projects: Mark Burdman Putin (see p. 46), sets the urgent strategic context for Lyndon H. Book Editor: Katherine Notley LaRouche, Jr.’s contribution to this issue, “When Andropov Played Photo Editor: Stuart Lewis Circulation Manager: Stanley Ezrol Hamlet.” In 1983, when President Reagan offered General Secretary INTELLIGENCE DIRECTORS: Andropov the opportunity for joint development of strategic ballistic Asia and Africa: Linda de Hoyos missile defense, in the interests of world peace and scientific progress, Counterintelligence: Jeffrey Steinberg, Paul Goldstein Andropov—tragically for his nation and for our own—replied, Economics: Marcia Merry Baker, “Nyet!” As LaRouche writes, Andropov chose to go with the proffers William Engdahl History: Anton Chaitkin of the British and Henry Kissinger, rather than accept Reagan’s pro- Ibero-America: Robyn Quijano, Dennis Small posal, made in the spirit of Franklin D. Roosevelt’s wartime coopera- Law: Edward Spannaus Russia and Eastern Europe: tion with Russia. Rachel Douglas, Konstantin George There is no person better qualified than LaRouche, to tell the true United States: Debra Freeman, Suzanne Rose story of the battle over the Strategic Defense Initiative (SDI), as he INTERNATIONAL BUREAUS: Bogota´: Jose´ Restrepo tells it in our Feature. LaRouche was at the center of the political Bonn: George Gregory, Rainer Apel fight, as the person who had conceived the idea which President Buenos Aires: Gerardo Tera´n Caracas: David Ramonet Reagan adopted as his own. Indeed, it was LaRouche’s role in this Copenhagen: Poul Rasmussen historic confrontation with Kissinger and the British, that was one of Houston: Harley Schlanger Lima: Sara Maduen˜o the principal reasons LaRouche was sent to prison by George Bush Melbourne: Robert Barwick six years later. Even if you have read LaRouche’s discussions of the Mexico City: Hugo Lo´pez Ochoa Milan: Leonardo Servadio SDI in the past, you will find many fresh and jolting insights in the New Delhi: Susan Maitra current discussion, such as that “Andropov’s tilting U.S. politics in Paris: Christine Bierre Rio de Janeiro: Silvia Palacios the direction favorable to Bush’s cause, led to the destruction of his Stockholm: Michael Ericson United Nations, N.Y.C.: Leni Rubinstein own nation, and the present state of moral, political, and economic Washington, D.C.: William Jones ruin of my own.” Wiesbaden: Go¨ran Haglund A second theme this week concerns the global ramage by Project EIR (ISSN 0273-6314) is published weekly (51 issues) Democracy—otherwise known as vox populi—against the republi- except for the second week of July and the last week of December, by EIR News Service Inc., 317 Pennsylvania can nation-state. See our coverage of Peru, and the historical prece- Ave., S.E., 2nd Floor, Washington, DC 20003. (202) dent to the Jacobin Terror now threatening the United States. 544-7010. For subscriptions: (703) 777-9451, or toll- free, 888-EIR-3258. We regret to inform our readers of the death, on April 11, of World Wide Web site: http://www.larouchepub.com e-mail: [email protected] Italian Christian Democratic leader Sen. Flaminio Piccoli, 85, one of European Headquarters: Executive Intelligence Review Nachrichtenagentur GmbH, Postfach 2308, the most important political figures in the postwar history of his D-65013 Wiesbaden, Bahnstrasse 9-A, D-65205, Wiesbaden, Federal Republic of Germany country, and a dear friend of Lyndon and Helga LaRouche, whom he Tel: 49-611-73650. Homepage: http://www.eirna.com E-mail: [email protected] Executive Directors: Anno first met in Italy in 1976. In our next issue, we shall commemorate Hellenbroich, Michael Liebig his rich and productive life, placing current history in the perspective In Denmark: EIR, Post Box 2613, 2100 Copenhagen ØE, Tel. 35-43 60 40 provided by the living simultaneity of eternity. 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 ” 2000 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 Departments Economics Feature 57 Report from Germany 4 Dollarizers out to impose Christian Democrats join “new slavery on nation-states wave.” Dollarization isn’t intended to protect targetted nations’ productive 80 Editorial assets, or their populations, or to Why the anti-IMF charades? create the conditions for rebuilding the economy, as in a properly executed bankruptcy reorganization. Were that to be the case, the first step would be writing off unpayable debt and other President Reagan delivers his televised speech an- speculation-linked paper that is nouncing the Strategic Defense Initiative, March destroying the physical economy. 23, 1983. Photo and graphic credits: Cover, page 27, National Archives. Pages 7 U.S. current account deficit 14 On the subject of missile- 9, 74, 75, EIRNS. Page 15, Fusion defense: When Andropov Energy Foundation drawing by could rupture economy Christopher Sloan. Pages 18, 23, 26, The U.S. current account deficit, played Hamlet By Lyndon H. LaRouche, Jr. “The 35, 38, 43, 61, 64, EIRNS/Stuart fuelled by a growing trade deficit, focus of my present report on that Lewis. Page 20, EIRNS/Marivilia reached $99.8 billion for the fourth matter, is the way in which Soviet Carrasco. Page 29 (Grant, quarter of 1999, the highest level in General Secretary Andropov’s Sherman), Library of Congress history. Hamlet-like, . knee-jerk reaction, Prints and Photographs Division, both against the original proposal photos by Mathew Brady. Page 29 10 Debt crisis builds: What for a Strategic Defense Initiative, (Sheridan), Chicago Historical Japanese recovery? and also against me personally, Society and the trustees of doomed the Soviet Union to the Northwestern University. Page 33, 12 Business Briefs choice of either war, or, in the EIRNS/Philip Ulanowsky. Page 49, alternative, that disintegration of the Courtesy of the Apostolic combined Soviet and Warsaw Pact Nunciature to the U.S. Page 52, systems, which, in fact, erupted Bundesbildstelle/Julia Fassbender. during 1989,” he writes. Page 54, UN. Volume 27, Number 16, April 21, 2000 International National 42 Project Democracy to Peru: 60 Nationwide meetings press 70 ‘The Democratic Party is ‘It ain’t democracy, unless‘new violence’ initiative not a private club’ our guy wins’ Preparations for the founding of a An amicus brief to the U.S. In an astonishing show of sheer National Commission on the New Supreme Court, which, on March hypocrisy, the London- and Wall Violence, have been moving 27, let stand a lower court ruling— Street-led “international forward quickly, as Lyndon in a case brought by Lyndon H. community” announced that, LaRouche’s Presidential campaign LaRouche, Jr. and voters from regardless of the actual vote, Peru’s held a first Internet conference with several states in 1996—affirming incumbent President Alberto leading experts on the destruction of that the DNC can function as a Fujimori will not be receiving the young Americans’ minds through “private club,” thus gutting the 50% required to avoid a run-off “kill-’em” video games and drugs Voting Rights Act of 1965. election with his bankers’ boy such as Ritalin and Prozac—and opponent, Alejandro Toledo. also by new forms of lynching. 74 Consensus emerges across ideological lines for death 46 The British are promoting 63 New York Times caught in penalty moratorium a new Entente Cordiale lie to protect media with Russia murder-promotion 77 National News 47 Pope brings message of 64 A replay of the Jacobin 78 Congressional Closeup peace to Holy Land Terror on the streets of Washington 51 States of mind clash at EU- The ruckus in the nation’s capital Africa summit was arranged by Wall Street-backed Although the news of the famine forces who are want to use mob razing the Horn of Africa was being action in order to prevent any real widely reported in the international alternative to the collapsing world media during the summit, the financial system. It was no different European leaders expressed, once in 1789, when banker Jacques again, their obsession with Necker backed the storming of the “globalization,” “free trade,” Bastille. “environmental protection,” and “democracy.” 67 LaRouche campaign battles un-Democratic DNC for 53 Anglo-American cabal ballot access targets Zimbabwe Alleging “corruption,” “dictatorial 69 ‘A LaRouche victory will excesses,” and “systematic be the world’s good oppression of white farmers,” the fortune’ British are setting up the pretext for International endorsements of possible military intervention. Lyndon H. LaRouche, Jr.’s campaign for the U.S. Presidency. 58 International Intelligence EIREconomics Dollarizers out to impose slavery on nation-states by Cynthia R. Rush On the front page of the April 9 Washington Post, over the ment, handing it instead over to Alan Greenspan’s Federal headline “Putting Faith in the Dollar,” readers were greeted Reserve. And the brutal austerity conditionalities attached to with a picture of a shredding machine, fast at work at Ecua- Ecuador’s acceptance of dollarization—privatization, liber- dor’s Central Bank, they were told, chewing up 50,000 sucre alization of the banking sector, and dismantling “costly” labor notes of that nation’s soon-to-be non-existent currency.