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 hen Felix Rohatyn, one of the erstwhile grand old men of the Managing Editor: John Sigerson W Science Editor: Marjorie Mazel Hecht Wall Street establishment, calls for a “new Bretton Woods confer- Special Projects: Mark Burdman ence” and seems to sound (a little bit) like Lyndon LaRouche, you Book Editor: Katherine Notley Photo Editor: Stuart Lewis know that something very big is going on. The “sticker shock” that Circulation Manager: Stanley Ezrol hit some people, when the U.S. so-called budget surplus evaporated INTELLIGENCE DIRECTORS: (as EIR said it would), is just the most obvious sign of the times. Asia and Africa: Linda de Hoyos Counterintelligence: Jeffrey Steinberg, Another sign is the debate in Russia over a “new financial architec- Michele Steinberg ture” and the role of gold, as Rachel Douglas reports. Economics: Marcia Merry Baker, William Engdahl The fact of the ongoing economic and financial collapse is now History: Anton Chaitkin widely discussed, even in the blissfully ignorant American press. But Ibero-America: Dennis Small Law: Edward Spannaus only in EIR, can you find the solutions. Russia and Eastern Europe: As LaRouche points out in his challenge to Rohatyn in this issue, Rachel Douglas United States: Debra Freeman, Suzanne Rose when a patient is mortally ill, we cannot have two different medicines INTERNATIONAL BUREAUS: circulating under the same brand name—the one therapeutic, and the Bogota´: Javier Almario other deadly poison. With his usual refreshing precision, LaRouche Berlin: Rainer Apel Buenos Aires: Gerardo Tera´n cuts through all the delphic “spin,” demanding that Rohatyn clarify Caracas: David Ramonet where he stands on the actual conception of a New Bretton Woods, Copenhagen: Poul Rasmussen Houston: Harley Schlanger as LaRouche has defined it in hundreds of locations over the past Lima: Sara Maduen˜o five years. Melbourne: Robert Barwick Mexico City: Marivilia Carrasco, Rube´n Cota We feature this week two occasions on which LaRouche elabo- Meza rated his approach: the Summer Academy of the Schiller Institute in Milan: Leonardo Servadio New Delhi: Susan Maitra Oberwesel, Germany, on Aug. 19; and the videoconference dialogue Paris: Christine Bierre that LaRouche held with Mexican accountants on Aug. 2. In both, Rio de Janeiro: Silvia Palacios Stockholm: Michael Ericson he discussed the three steps that must be taken now: 1) intensive United Nations, N.Y.C.: Leni Rubinstein Washington, D.C.: William Jones discussion of the New Bretton Woods by those experts competent to Wiesbaden: Go¨ran Haglund define policy; 2) education of the relevant political figures who must implement that policy; and 3) education and mobilization of the gen- EIR (ISSN 0273-6314) is published weekly (50 issues) except for the second week of July and the last week of eral public, to fight for the policy, as they would fight in time of war. December, by EIR News Service Inc., 317 Pennsylvania Ave., S.E., 3rd Floor, Washington, DC 20003. (202) Success requires that people on all three levels grasp the mission 544-7010. For subscriptions: (703) 777-9451, or toll- free, 888-EIR-3258. before us, which is nothing less than stopping the current plunge into World Wide Web site: http://www.larouchepub.com a dark age. That is the leadership task which LaRouche has assumed, e-mail: [email protected] European Headquarters: Executive Intelligence Review and without which, no “objectively correct” solutions will work. Nachrichtenagentur GmbH, Postfach 2308, D-65013 Wiesbaden, Bahnstrasse 9-A, D-65205, Wiesbaden, Federal Republic of Germany Tel: 49-611-73650. Homepage: http://www.eirna.com E-mail: [email protected] Executive Directors: Anno Hellenbroich, Michael Liebig In Denmark: EIR, Post Box 2613, 2100 Copenhagen ØE, Tel. 35-43 60 40 In Mexico: EIR, Serapio Rendo´n No. 70 Int. 28, Col. San 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. 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 8 Russia Dollar Debate Is Cover Really Over New System This Week 10 Governors in Denial as State Budgets Blow Financiers’ 13 U.S. Infrastructure in $8-9 spokesman Felix Trillion Deficit Rohatyn (left), and defender of the General Welfare, 15 Lucent: Sad Tale of the Lyndon LaRouche. Southern Strategy 16 Why the Balkans Disaster? 4 LaRouche Issues Challenge to Banker Felix The IMF, NATO, and the Rohatyn “Washington Consensus” economic U.S. 2004 Presidential pre-candidate Lyndon H. policies lead to the breakup of LaRouche, Jr. issued a challenge to former U.S. nations and war. A firsthand report Ambassador to France, banker Felix Rohatyn, to state by Elke Fimmen. whether his use of LaRouche’s widely circulated proposal for “A New Bretton Woods” means that he is 22 Business Briefs supporting LaRouche’s proposal, or attempting to make a delphic end-run against LaRouche’s growing influence world-wide on this matter. 6 Rohatyn Must Not Duck the Issue A statement by Lyndon H. LaRouche, Jr. released by the Presidential candidate’s LaRouche-in-2004 political committee on Aug. 24, after Felix Rohatyn had been reported internationally calling for a New Bretton Woods monetary conference. Photo and graphics credits: Cover, pages 5, 54, 66, EIRNS/ Stuart Lewis. Page 9, EIRNS/Karl-Michael Vitt. Page 11 (Varney), National Conference of State Legislators. Page 11 (Ohio state Capitol), www.arttoday.com. Page 12, State of Tennessee website. Page 12, State of Arizona website. Pages 18, 35, 56, EIRNS. Page 19, Bosnia-Hercegovina website. Page 21, European Commission website. Pages 25 (LaRouche), 27, 37, EIRNS/Christopher Lewis. Pages 25 (crowd), 33, EIRNS/ Maria Schmitz. Page 40, Franklin D. Roosevelt Library and Museum. Page 42, United Nations. Page 44, Library of Congress. Page 46, Coordinacio´n de Material Gra´fico. Page 53, Macedonian government website. Page 68, Photo by Bill Hackwell, from the Free Mumia website. Page 69, Representative Lantos’ website. www.larouchepub.com Volume 28, Number 33, August 31, 2001 Feature International National 24 Rally the Citizens Behind a 52 NATO Reaches Nadir: 62 Israeli Spies: ‘Mega Was Mission for All MankindProtects Ethnic War in Not an Agent—Mega Was Keynote speech by Lyndon Macedonia the Boss’ LaRouche to the Summer Academy Religious buildings and cultural Mega, the Israeli espionage of the Schiller Institute, in artifacts are being destroyed by the operation, was not an individual, Oberwesel, Germany. This year’s Kosovo Liberation Army narco- not a deep mole inside the White Academy had the theme “The Battle terrorist gangs—which are House, but was a far more visible, for the Mind—What Is the Prospect operating from NATO-controlled far more powerful entity, known Facing Young People Today?” territory. among its several dozen members as “the Mega Group.” Political Economy 54 Brazil: Prince Philip’s WWF Tries To Muzzle EIR 65 Is Rail Union Pension 38 LaRouche to Mexican Moynihan’s Precedent? Accountants: We Have 55 Eurasian War Threat Rises Reason for Optimismin Caucasus 67 ABA Says Death Penalty On Aug. 2, Lyndon H. LaRouche, System ‘Broken’ in U.S. Jr. gave the keynote address to a 57 Pope John Paul II in meeting sponsored in Mexico City Ukraine: Appeal for 69 Profile: Rep. Tom Lantos: by the National Institute of Public Reconciliation George Soros’ Walking Accountants at the Service of the State (INCOPSE), the first ‘Clash of Civilizations’ conference of a series entitled 58 The Pope in Ukraine “Currents of Economic Thought.” Sought a True Friendship 71 National News Following the speech was a wide- An interview with Father Romano ranging dialogue with those present, Scalfi. Interviews which we publish here 61 Moscow Patriarch Greets 58 Father Romano Scalfi 50 Sinking Mexico Debates Hungary’s Christians Roman Catholic Father Romano Survival With LaRouche Scalfi is chairman of “Russia- Christiana,” whose aim is to make known to the West the spiritual and cultural tradition of Russian Orthodoxy, to promote ecumenical dialogue, and to contribute to the Christian mission in Russia. Departments 72 Editorial Senators, Have You Seen the State Budgets? EIREconomics LaRouche Issues Challenge To Banker Felix Rohatyn by Mark Burdman On Aug. 23, U.S. 2004 Presidential pre-candidate Lyndon H. or that item from LaRouche, while denying him any credit. LaRouche, Jr. issued a world-wide challenge to former U.S. Paradoxically, this will increase his influence.” Ambassador to France, banker Felix Rohatyn, to state So, on Aug. 18, top Wall Street banker Felix Rohatyn, whether his use of LaRouche’s widely circulated proposal Clinton’s Ambassador to France, authored a commentary, in for “A New Bretton Woods” means that he is supporting the City of London’s main daily, the Financial Times, entitled LaRouche’s proposal, or attempting to make a delphic end- “Back to Bretton Woods.” In it, he called for “a new Bretton run against LaRouche’s growing influence world-wide on Woods, convened by the President of the U.S.,” the which this matter. would be “a serious response to real issues.” Any informed To understand the significance of Rohatyn’s action, the reader would have known, that Lyndon LaRouche has been reader will need to know the following essential facts about intensively organizing precisely for such an initiative, even Rohatyn himself.