Executive Intelligence Review, Volume 28, Number 27, July 20, 2001

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Executive Intelligence Review, Volume 28, Number 27, July 20, 2001 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 Editor: Paul Gallagher Associate Editors: Ronald Kokinda, Susan Welsh he events surrounding Lyndon LaRouche’s trip to Moscow, re- Managing Editor: John Sigerson T Science Editor: Marjorie Mazel Hecht ported in our Feature, bring to fruition a dialogue with Russian intel- Special Projects: Mark Burdman lectuals that began with LaRouche’s first visit to Moscow, in 1994, Book Editor: Katherine Notley Photo Editor: Stuart Lewis and has been enriched with each passing year. Presidents have come Circulation Manager: Stanley Ezrol and gone, in Moscow and in Washington, but LaRouche’s influence INTELLIGENCE DIRECTORS: has continued to grow, nurturing a grouping of economists and politi- Asia and Africa: Linda de Hoyos Counterintelligence: Jeffrey Steinberg, cal leaders who have the vision required to steer their nation out of Michele Steinberg its economic and social crisis, and into a 21st Century leadership role Economics: Marcia Merry Baker, William Engdahl of statecraft for the benefit of all mankind. History: Anton Chaitkin Economist Dr. Tatyana Koryagina summed up what many in Ibero-America: Dennis Small Law: Edward Spannaus LaRouche’s Moscow audiences were thinking, when she said, “Imag- Russia and Eastern Europe: ine, the United States had the chance to elect a person of such pro- Rachel Douglas United States: Debra Freeman, Suzanne Rose found knowledge and integrity, as its President. And instead he was INTERNATIONAL BUREAUS: put into jail. This shows how stupid people have become.” Indeed, Bogota´: Javier Almario LaRouche should be addressing the U.S. Congress, as well as the Berlin: Rainer Apel Buenos Aires: Gerardo Tera´n Russian Duma. The fact that he isn’t, shows the damage done to this Caracas: David Ramonet country by both the free-market Republicans and the Gore Demo- Copenhagen: Poul Rasmussen Houston: Harley Schlanger crats. Lima: Sara Maduen˜o In this issue, we continue our serialization of the Moscow events, Melbourne: Robert Barwick Mexico City: Marivilia Carrasco, Rube´n Cota with the speeches at a hearing before a committee of the Duma. We’ll Meza have more to come: LaRouche’s lecture to the Lebedev Institute of Milan: Leonardo Servadio New Delhi: Susan Maitra the Academy of Sciences. Special thanks to Rachel Douglas, Paris: Christine Bierre LaRouche’s translator, who prepared the speeches for speedy publi- Rio de Janeiro: Silvia Palacios Stockholm: Michael Ericson cation with painstaking care. United Nations, N.Y.C.: Leni Rubinstein Washington, D.C.: William Jones A new theme stands out in LaRouche’s Moscow discussions: Wiesbaden: Go¨ran Haglund the vital importance of state regulation of infrastructure and natural resources, for any nation. This is the most neglected element of econ- EIR (ISSN 0273-6314) is published weekly (50 issues) except for the second week of July and the last week of omy in the past 30 years, he says. This idea is precisely what Russians December, by EIR News Service Inc., 317 Pennsylvania Ave., S.E., 3rd Floor, Washington, DC 20003. (202) need to understand, as they come to terms with their own history: the 544-7010. For subscriptions: (703) 777-9451, or toll- free, 888-EIR-3258. collapse of the Soviet “command economy,” and the horrors of the World Wide Web site: http://www.larouchepub.com free-market looting which followed it. It is also what Americans e-mail: [email protected] European Headquarters: Executive Intelligence Review need to know, as they see their energy and health-care infrastructure Nachrichtenagentur GmbH, Postfach 2308, D-65013 Wiesbaden, Bahnstrasse 9-A, D-65205, demolished by the Bush Administration. Wiesbaden, Federal Republic of Germany Tel: 49-611-73650. Homepage: http://www.eirna.com The pace of events is escalating, as the global crisis deepens. E-mail: [email protected] Executive Directors: Anno Hellenbroich, Michael Liebig After leaving Russia, LaRouche was welcomed in Italy (see Econom- In Denmark: EIR, Post Box 2613, 2100 Copenhagen ØE, Tel. 35-43 60 40 ics), and he will be delivering an international webcast on July 24, as In Mexico: EIR, Serapio Rendo´n No. 70 Int. 28, Col. San an intervention of his 2004 Presidential campaign. The topic is “How Rafael, Del. Cuauhte´moc. Me´xico, DF 06470. Tels: 55-66- 0963, 55-46-2597, 55-46-0931, 55-46-0933 y 55-46-2400. To Survive the Onrushing Global Financial Crash.” Japan subscription sales: O.T.O. Research Corporation, Takeuchi Bldg., 1-34-12 Takatanobaba, Shinjuku-Ku, Tokyo 160. Tel: (03) 3208-7821. Copyright ” 2001 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 Feature 28 LaRouche Addresses Russian Duma on Cover Economic Crisis This Week On June 29, Lyndon LaRouche joined a panel of international economists and political figures, to An Israeli Python address an official hearing in the air-to-air missile. Russian Parliament “On Measures Inset: Israeli Prime To Ensure the Development of the Minister Ariel Russian Economy Under Sharon. Conditions of a Destabilization of the World Financial System.” 60 Sharon War Plan Exposed; Hamas Gang Is 29 Sergei Yu. Glazyev: Russia His Tool Is Facing Financial Shocks Israeli Prime Minister Sharon plans to use the Hamas countergang to trigger a war that would demolish the 31 Lyndon H. LaRouche, Jr.: Palestinian Authority and destabilize Jordan, ultimately Policy Changes Needed To overthrowing King Abdullah II and establishing Jordan Overcome the Collapse as a “Palestinian homeland” under Hamas control. He counts on the Bush Administration, seeking a U.S. 33 Jonathan Tennenbaum: military buildup, to go along with his manipulations. An The Financial Crisis Grips EIR exclusive, by Jeffrey Steinberg. the United States 39 Dmitri Lvov: Russia Must Initiate Solutions to the Crisis 42 Datuk Yahya Baba: Malaysia’s Battle With the IMF System 43 Sergei Yegorov: Challenges Confronting Russia’s Banking System 46 Senator Ivo Tarolli: Cooperative Solutions to the Global Crisis 48 Andrei Kobyakov: World System More Overheated Than in 1929 50 Dmitri Mityayev: Russia Must, and Can, Act To Protect Itself Volume 28, Number 27, July 20, 2001 International National 52 Helga Zepp-LaRouche: 62 U.S. Khobar Towers Case 72 The Battle Over D.C. The Eurasian Land-BridgeHas a Warlike Look General Hospital Is Not As a War-Avoidance Finished Strategy 63 Bush Provocations Meet As emergency rooms in the nation’s Rising Anger in Asia capital back up in the wake of D.C. 54 Tatyana Koryagina: General’s shutdown, and people are Financial Crisis Will Sweep 65 NATO and the Hague literally dying in the streets for lack of bed-space, 150 hospital Away Governments Blowing Up the Balkans employees and community activists, stabbed in the back by the Al Gore 57 LaRouche Forecasts Are 67 Chavismo’s Last Stage: “New Democrats,” pledged, “We’re Big News in Russia Fascism in Venezuela here to save the spirit of D.C. General.” 69 Britain Moves Toward Economics Crisis-Emergency Rule 73 LaRouche: The Issue Is the General Welfare 4 LaRouche Tours Italy’s 71 British Legalizers Aid A statement to a meeting of the North After Russian Duma Narco-Coup in Colombia Coalition to Save D.C. General Session Hospital. In speeches and interviews in Milan and Vicenza, LaRouche explained 76 Congressional Closeup the role of Italy’s industrial powerhouse in rescuing the world 78 Bush Objects as Senate from a systemic crisis, and building Finally Takes on HMOs the Eurasian Land-Bridge. 79 LaRouche To Address: 7 LaRouche Explains How To Survive the Systemic Crisis to Milan Onrushing Global Bankers at Catholic Financial Crash University The 2004 Presidential pre-candidate will give an international webcast 18 EIR Energy Crisis Update: address on July 24. Blackouts, Price Chaos In Southwest States Departments 20 Europe Faces Chaotic Euro Photo and graphics credits: Cover Transition design, Alan Yue, cover photos 80 Editorial (missiles): Rafael Armament The Argentina Blowout: “Planet 22 Germans Rediscover the Development Authority; (Sharon) Risk.” Maglev Train EIRNS/Stuart Lewis. Pages 4, 8, EIRNS/Chris Lewis. Page 13 23 IMF and Energy Pirates www.arttoday.com. Page 16, www.mintrans.ru. Page 24, EIRNS/ Made Brazil’s Electricity Dennis Small. Page 25, Courtesy of Crisis, ‘California Style’ Nuclep. Pages 28, 30, 32, 51, 55, The history of the systematic 77, EIRNS/Karl-Michael Vitt. Page takedown of the Brazilian national 53, Schiller Institute. Page 66, electricity industry. NATO photo. Page 72, EIRNS/ Stuart Lewis. EIREconomics LaRouche Tours Italy’s North After Russian Duma Session by Claudio Celani On July 3-5, Lyndon LaRouche visited Italy, and was the ists as well as politicians, in support of LaRouche’s proposals guest speaker at three events promoted by the Italy-Russia to meet the global economic crash with a New Bretton Woods Chamber of Commerce, the Chamber of Commerce of Vi- world financial system, and the infrastructural development cenza, and the Milan-based Association for the Development of the Eurasian Land-Bridge. of Banking and the Stock Market Studies. These events were The proposals originating with LaRouche have been at the result of the growing movement in Italy, among industrial- the center of numerous public initiatives by members of Par- Media coverage of LaRouche’s address to Vicenza-region industrialists and exporters, was extensive. Here, he speaks at the Vicenza Chamber of Commerce.
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