fast track to rule by the big banks EIR Special Report, May 1991 Auschwitz below the border: Free trade and George 'Hitler' Bush's program for Mexican genocide A critical issue facing the nation in this presidential election year is NAFTA, the North American Free Trade Agreement. Bush and Clinton both back it. This proposed treaty with Mexico will mean slave-labor, the rampant spread of cholera, and throwing hundreds of thousands of workers onto the unemployment lines-on both sides of the border-all for the purpose of bailing out the Wall Street and City of London banks. In this 75-page Special Report, ElR's investigators tell the truth about what the banker-run politicians and media have tried to sell as a once-in-a-lifetime opportunity to get economic growth started across the Americas. The Wall Street crowd-led by none other than Henry Kissinger-are going berserk to ram this policy through Congress. Kis­ singer threatened in April: "It should be signed by all parties, and should be defended on all sides as a political vision, and not merely as a trade agreement." Kissinger's pal David Rockefeller added: "Without the fast track, the course of history will be stopped." With this report, ElR's editors aim to stop Rockefeller and his course of history-straight toward a banking dictatorship. $75 per copy ,. ' Make check or money order payable to: �ITlli News Service P.o. Box 17390 Washington, D.C. 20041-0390 Mastercard and Visa accepted. Founder and Contributing Editor: Lyndon H. LaRouche, Jr. Editor: Nora Hamerman From the Editor Managing Editors: John Sigerson, Susan Welsh Assistant Managing Editor: Ronald Kokinda Editorial Board: Warren Hamerman, Melvin Klenetsky, Antony Papert, Gerald Rose, Allen Salisbury, Edward Spannaus, Nancy Spannaus, We publish in this issue two speeches, which are especially rele­ Webster Tarpley, Carol White, Christopher White vant in light of the current monetary crisis. Both were delivered last Science and Technology: Carol White May-one in Kiedrich, Germany, the other in Tlaxcala, Mexico­ Special Services: Richard Freeman by associates of presidential candidate Lyndon H. LaRouche, Jr. In Book Editor: Katherine Notley Advertising Director: Marsha Freeman the Feature, Cynthia Rush tells the little-known story of the fight Circulation Manager: Stanley Ezrol against British free trade in Ibero-America, particularly in the last INTELLIGENCE DIRECTORS: century when patriots there took up the heritage of Colbert and the Agriculture: Marcia Merry Asia: Linda de Hoyos American System to fightBritish imperialism. In National Economy, Counterintelligence: Jeffrey Steinberg, Bill Engdahl outlines a plan for a national banking system in the Paul Goldstein Economics: Christopher White tradition of Alexander Hamilton, to be applied to the economies of European Economics: William Engdahl Ibero-America: Robyn Quijano, Dennis Small central and eastern Europe which have been liberated from Marx, Law: Edward Spannaus only to be subjected to a new slavery under Adam Smith. Medicine: John Grauerholz, M.D. Russia and Eastern Europe: Yet, no one should have any illusions that the genocidal British Rachel Douglas, Konstantin George free trade system is only a problem in less developed parts of the Special Projects: Mark Burdman United States: Kathleen Klenetsky world, like eastern Europe or Ibero-America. As the National lead INTERNATIONAL BUREAUS: article reports, the International Monetary Fund has spelled out in Bangkok: Pakdee Tanapura, Sophie Tanapura painful detail its plan for turning the rustbucket U. S. economy into Bogota: Jose Restrepo Bonn: George Gregory, Rainer Ape/ an irreversible rubbleheap. Copenhagen: Poul Rasmussen Anyone who has traveled to the underdeveloped world cannot Houston: Harley Schlanger Lima: Sara Madueiio help but realize how much the rest of humanity depends on the Melbourne: Don Veitch revival of the American economy. But it is no longer even necessary Mexico City: Hugo L6pez Ochoa Milan: Leonardo Servadio to travel to evoke the mission of the Good Samaritan for the United New Delhi: Susan Maitra States. With a staggering percentage of American children growing Paris: Christine Bierre Rio de Janeiro: Silvia Palacios up in poverty, and our schools in shambles, we desperately need to Stockholm: Michael Ericson get back on the track of the American System. Washington, D.C.: William Jones Wiesbaden: Goran Haglund W. Allen Salisbury, a longtime member of EIR' s editorial board of advisers who passed away on Sept. 14, made a crucial contribution EIR (ISSN 0273-6314) is published weekly (50 issues) except for the second week of July, and the last week of to the solution with his discovery in the 1970s ofllie anti-free trade, December by EIR News Service Inc., 3331h Pennsylvania Ave., S.E., 2nd Floor, Washington, DC Christian economists-like Henry Carey-who advised Abraham 20003. (202) 544-7010. For subscriptions: (703) 777- 9451. Lincoln. Last year, while he was already fighting the cancer that EuropeanHeadquarters: Executive Intelligence Review claimed his life, he investigated JFK's plans to revive the American Nachrichtenagentur GmbH, Postfach 2308, D-6200 Wiesbaden, Otto von Guericke Ring 3, D-6200 System, just before Kennedy was assassinated in .963. Allen's arti­ Wiesbaden-Nordenstadt, Federal Republic of Germany Tel: (0611) 8840. Executive Directors: Anno Hellenbroich, cle on that subject was published in New Federalist newspaper, Michael Liebig EIR In Denmark: EIR, Post Box 2613, 2100 Copenhagen 0E, which has kindly granted permission to to reprint it in a forth­ Tel. 35-43 60 40 coming issue. We will sorely miss Allen, but we are also happy to In Mexico: EIR, Francisco Diaz Covarrubias 54 A-3 Colonia San Rafael, Mexico DF. Tel: 705-1295. be part of ensuring that his contribution lives on. Japtul subscription sales: O.T.O. Research Corporation, Takeuchi Bldg., 1-34-12 Takatanobaba, Shinjuku-Ku, Tokyo 160. Tel: (03) 3208-7821. Copyright © 1992 EIR News Service. All rights reserved. Reproduction in whole or in part without permission strictly prohibited. Second-class postage paid at Washington D.C., and at an additional mailing offices. Domestic subscriptions: 3 months-$125, 6 months-$225, I year-$396, Single issue-$10 Postmaster: Send all addresschanges to EIR, P.O. Box 17390, Washington, D.C. 20041-0390. ITillContents Interviews National Economy Economics 10 Dr. Janos Goyak 18 A Hamiltonian national Dr. Goyak, a priest and professor banking plan for East of social ethics who works with the Europe Christian Democratic People's William Engdahl presents a detailed Party of Hungary, discusses the alternative to the devastating perspectives for economic reform in austerity programs of the his former communist country. International Monetary Fund. A speech to the Schiller Institute's 35 Hike Babookhanian conference in Kiedrich, Germany in The editor of the newspaper of the May, to an audience which Republican Party of Armenia, Mr. included many representatives from 4 Central bank system Babookhanian is also vice president former communist countries of cracks; new monetary of the Union of Constitutional central and eastern Europe. system urgent Rights of Armenia and deputy of The British pulled the pound out of the Yerevan City Parliament. Europe's Exchange Rate Reviews Mechanism, in a move that will go 39 Yuri Chernichenko down in the history books as that The president of the Farmer Party 66 Classical LaserDiscs: many which plunged the world into the of Russia describes the grain advantages, and a few Great Depression of the 1990s. acquisition crisis in Russia this caveats summer as the worst since 1927 and "Macbeth," by Giuseppe Verdi, 6 Harvard intervenes to 1928. conducted by Giuseppe Sinopoli; aggravate relations "Giovanna d' Arco," by Giuseppe between Russia and Japan Verdi, conducted by Riccardo Departments Chailly; Beethoven Lieder, Peter 8 Centesimus Annus, a Schreier, tenor, and Norman challenge for East Europe 15 Report from Bonn Shetler, piano; Beethoven, A speech by Dr. Janos Goyak to a Monetarist solutions won't work. Symphony No. 9, conducted by conference of the Schiller Institute. Kurt Masur. 51 Australia Dossier 10 Why should we pay the Imperial myths collapsing slowly. communist debt? An interview with Dr. Janos Photo credits: Cover, page 59, 52 Middle East File Goyak. EIRNS. Page 8, Stuart Lewis. Page Iraq issues appeal on "no fly" zone. 35, Philip Ulanowsky. Page 39, Rachel Douglas. 12 Currency Rates 53 Dateline Mexico Shining Path is on the march. 13 Ethanol use debated while millions starve 72 Editorial Ethanol is a fuel made from com, Choose the LaRouche alternative, and is being touted as a way to now . boost agriculture markets. But it's a fraud: a waste of energy and money. 14 Banking Banks claim record earnings. 16 Business Briefs Volume 19, Number 38, September 25, 1992 Feature International National 24 Mercantilism vs. free 32 Shining Path arrest is a 56 IMF moves to seize control trade: the war for Ibero­ black eye for State Dept. over United States economy America The Peruvian government's capture The International Monetary Fund's There is a tradition of of Shining Path terrorist ideologue executive board took the highly "Hamiltonian" economics in lbero­ Abimael Guzman, along with a unusual step--in an election year, America which has been viciously dozen of his top henchmen, was the at that-{)fdemanding that the U.S. suppressed, but which provides the opening shot of an anti-terrorist government immediately enact a key to getting out of the current strategy which could break the back combination of draconian tax economic crisis in the region. A of that organization. increases and spending cuts. The speech by Cynthia Rush to the treatment that has long been meted founding conference of the Ibero­ 34 Serbian regular forces out to the Third W orId has now American Solidarity Movement in move to crush Bosnia come home to ·roost. Tlaxcala, Mexico in May.