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 ohn Chambers, the CEO of Cisco Systems, the world’s largest Managing Editor: John Sigerson J Science Editor: Marjorie Mazel Hecht producer of Internet equipment, announced a 30% decline in sales Special Projects: Mark Burdman during the first quarter of 2001, and the layoff of 8,500 employees. Book Editor: Katherine Notley Photo Editor: Stuart Lewis He said that he had previously thought that a “100-year flood” would Circulation Manager: Stanley Ezrol be a 10% decline in sales within a quarter, and it would probably not INTELLIGENCE DIRECTORS: happen in our lifetimes. Instead, “not only did it occur in our lifetimes, Asia and Africa: Linda de Hoyos Counterintelligence: Jeffrey Steinberg, but the magnitude was about five times what we thought possible. Michele Steinberg We never built models to anticipate something of this magnitude. Economics: Marcia Merry Baker, William Engdahl This may be the fastest any industry our size has ever decelerated. History: Anton Chaitkin . Changes that used to occur over quarters are now literally occur- Ibero-America: Dennis Small Law: Edward Spannaus ring over months.” Russia and Eastern Europe: These bozos, in their infinite wisdom, didn’t listen to LaRouche! Rachel Douglas United States: Debra Freeman, Suzanne Rose They “never built models” that corresponded to reality, because they INTERNATIONAL BUREAUS: were not interested in reality. And now they, and the people of their Bogota´: Javier Almario nations along with them, are getting slammed. A “100-year flood” is Berlin: Rainer Apel Buenos Aires: Gerardo Tera´n mild, compared to what is coming fast upon us. Caracas: David Ramonet If you, dear reader, have been holding back from throwing your- Copenhagen: Poul Rasmussen Houston: Harley Schlanger self into all-out support for LaRouche’s leadership, deluding yourself Lima: Sara Maduen˜o that “he must be exaggerating,” it’s past time to wise up. Melbourne: Robert Barwick Mexico City: Hugo Lo´pez Ochoa In this issue, we report LaRouche’s April 18 statement of what Milan: Leonardo Servadio must urgently be done (see page 66), to put an end to Alan Green- New Delhi: Susan Maitra Paris: Christine Bierre span’s hyperinflationary insanity. Rio de Janeiro: Silvia Palacios We also feature dossiers on the oligarchy that is steering the Stockholm: Michael Ericson United Nations, N.Y.C.: Leni Rubinstein United States toward certain doom, unless LaRouche prevails. See Washington, D.C.: William Jones LaRouche’s article on “Political Theocracy Defined,” for an under- Wiesbaden: Go¨ran Haglund standing of the Nietzschean reign of President George W. “Do As I EIR (ISSN 0273-6314) is published weekly (50 issues) Say, or I Might Have To Kill You” Bush. Our Feature provides an except for the second week of July and the last week of December, by EIR News Service Inc., 317 Pennsylvania investigative report on KKK-Katie Graham and her “Kritter Ave., S.E., 3rd Floor, Washington, DC 20003. (202) 544-7010. For subscriptions: (703) 777-9451, or toll- Kompany”—the fascist Tories behind the plan to shut down D.C. free, 888-EIR-3258. World Wide Web site: http://www.larouchepub.com General Hospital and drive blacks out of the District of Columbia. e-mail: [email protected] We also report the exciting news of serious resistance emerging to European Headquarters: Executive Intelligence Review Nachrichtenagentur GmbH, Postfach 2308, this plan (see National), in a reborn Civil Rights Movement. D-65013 Wiesbaden, Bahnstrasse 9-A, D-65205, Wiesbaden, Federal Republic of Germany The opposition to LaRouche’s solution to the crisis is coming Tel: 49-611-73650. Homepage: http://www.eirna.com E-mail: [email protected] Executive Directors: Anno from the same crowd, in Wall Street and London, those behind Presi- Hellenbroich, Michael Liebig In Denmark: EIR, Post Box 2613, 2100 Copenhagen ØE, dent Bush and Chairman Greenspan now, which backed Hitler and Tel. 35-43 60 40 opposed Franklin Roosevelt in 1933. That is the pivot on which world In Mexico: EIR, Serapio Rendo´n No. 70 Int. 28, Col. San Rafael, Del. Cuauhte´moc. Me´xico, DF 06470. Tels: 55-66- history today is precariously balanced. 0963, 55-46-2597, 55-46-0931, 55-46-0933 y 55-46-2400. 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 Economics 4 The ‘Trilateral Depression’ Increases Its Toll Cover Following the April 18 desperation This Week interest-rate cuts by the Federal Reserve, and that day’s pattern of severe losses and bankruptcies at Katharine Graham: major U.S. corporations, She doesn’t want all Presidential pre-candidate Lyndon the “Negroes” H. LaRouche, Jr. called for removed from emergency counter-actions by the Washington. European countries, Japan, and the U.S. itself. 12 ‘Planned Shrinkage’: Washington, D.C. Gets 6 Energy Deregulation Also Threatens Crisis in U.S. the New York Treatment Transmission Grid What is being done to the nation’s capital today—the destruction of city services, the forced, brutal reduction 8 ‘California Effect’ Set for of the city’s impoverished minority population—was all U.S. Northeast done first to New York City by the same players, the same institutional networks, and the same methods. 9 Spring Energy Cutoffs, Protests Mounting 19 The Imperial Katharine Graham in Washington 10 EIR Energy Crisis Update: Agenda for National 21 Gingrich-Gore Fascist Hand behind ‘The Energy Emergency Action Plan’ 23 The ‘Bleaching of Chocolate City’ 27 KKK-Katie Graham’s Own Secret Society Rules in Nation’s Capital Volume 28, Number 17, April 27, 2001 International National Books 30 Nazi Jurist Carl Schmitt 56 Political Theocracy Defined 50 Anwar Ibrahim Defends Revived as Legal Model forBy Lyndon H. LaRouche, Jr. “The His Colonial Masters Venezuela’s Cha´vez subject on which our attention is The Asian Renaissance, by Anwar How would you react if a state were focussed in this report, is among the Ibrahim. to emerge in the Americas which, in most important, and also the most all its essential aspects, were a copy politically sensitive. As it 54 The American Intellectual of what Adolf Hitler imposed in touches upon the matters of the Tradition, Imprisoned Germany? Such is Venezuela today. privacy of personal religious Reflections of an American Political professions, it is a hot issue; but, Prisoner: The Repression and 33 Teddy Goldsmith Deploys like the evils of . the pagan Promise of the LaRouche Terrorists in Phony ‘Anti- religion of Hitler’s Nazis, it is a Movement, by Michael O. matter of law and statecraft which, Billington. Globalization’ Drive by its practice, loses its cloak of privileged immunity from 37 Sharon Attacks Syrian obligatory public close scrutiny.” Positions, as War Nears Departments 61 Coalition To Save D.C. 39 Indian Planners Look At Hospital Announces 72 Editorial U.S. Economic Meltdown Strategy for Victory Counter Bush-Greenspan Recklessness. History is being made, at weekly 40 India and Iran Are town meetings at Union Temple Strengthening Their Baptist Church, as the movement ‘Civilizational’ Ties for the General Welfare becomes international in scope. 42 Saudi Arabia, Iran Sign Security Accord 64 ‘Time to Get Serious’ A dialogue between Dr. Abdul 43 ‘St. Augustine Links Islam Alim Muhammed of the Nation of and the West’ Islam and Lyndon H. LaRouche, Jr. 66 LaRouche Calls for 44 New Bretton Woods Debate Emergency Actions After in San Marino Reckless Rate Cut 45 Brazil Stands at a 67 D.C. Mayor Williams’s Crossroads Lies to Residents About Hospital Closing, Refuted 46 Bosnia Pushed into an Ethnic War, Again Photo and graphics credits: 71 Cincinnati Disturbances Cover, pages 13, 14, 16, 20, 22, 26, Threaten ‘Garden Plot’ 47 The Cracks Get Wider in 31 (Cha´vez), 38, 57 (Falwell, Windsors’ Britain Weyrich), 61, 63, 69, EIRNS/Stuart Lewis. Page 5, EIRNS/Claudio Celani. Page 7, the Aluminum 49 EIR’s Peru Office Association, Inc. Pages 9, 17, 24, Burglarized: Investigate 25, 44, 57 (Robertson), EIRNS. Goldsmith Networks Page 31 (Schmitt), National Archives. Page 58, (Mussolini) www.arttoday.com. Page 59, Library of Congress. EIREconomics The ‘Trilateral Depression’ Increases Its Toll by Lothar Komp Following the April 18 desperation interest-rate cuts by the foreign orders is reported in more and more sectors of the U.S. Federal Reserve, and that day’s pattern of severe losses “old economy” as well, from motor vehicles to the chemical and bankruptcies at major U.S. corporations, economist and industry. The companies concerned are expected to cut capac- Presidential pre-candidate Lyndon H. LaRouche, Jr. called ity. A survey conducted by the IFO economic research insti- for emergency counter-actions by the European countries, tute found that 37% of German companies plan to reduce Japan, and the United States itself. These nations must raise investments this year, and only 4.4% expect to increase them. short-term rates, said LaRouche, and dry out speculative mar- The construction sector, which depends on domestic demand, kets; and they have to issue large volumes of low-interest, is in the worst crisis of the postwar period, and will have to long-term credits as governments, especially into infrastruc- cut another 60,000 jobs this year.