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 e enter the new year—EIR’s 30th year of publication—at a Managing Editor: John Sigerson W Science Editor: Marjorie Mazel Hecht unique moment in history. The promise and opportunity of 2003 are Special Projects: Mark Burdman illustrated by our cover photo: the breakthrough in maglev tech- Book Editor: Katherine Notley Photo Editor: Stuart Lewis nology secured in Shanghai, thanks to the dedicated efforts of Chi- Circulation Manager: Stanley Ezrol nese and German political leaders, engineers, and workers, and INTELLIGENCE DIRECTORS: thanks to more than a decade of organizing by the LaRouche move- Counterintelligence: Jeffrey Steinberg, Michele Steinberg ment. This opens the way to the construction of what Lyndon Economics: Marcia Merry Baker, LaRouche has called “infrastructure corridors” of Eurasian high- Lothar Komp History: Anton Chaitkin technology development, from Pusan to Rotterdam, and then span- Ibero-America: Dennis Small ning the continents to the Mideast, Africa, and into the Western Hemi- Law: Edward Spannaus Russia and Eastern Europe: sphere. Rachel Douglas But on the other hand, a catastrophic economic crisis is upon United States: Debra Freeman, Suzanne Rose us, as LaRouche forecast. Even the U.S. Department of Labor has INTERNATIONAL BUREAUS: Bogota´: Javier Almario announced that it will stop publishing monthly reports on layoffs, for Berlin: Rainer Apel lack of money! The dollar is collapsing, and the whole dollar-based Buenos Aires: Gerardo Tera´n Caracas: David Ramonet global financial system will plummet, during the first weeks of the Copenhagen: Poul Rasmussen new year. The airlines are bankrupt, consumers are buried in debt, Houston: Harley Schlanger Lima: Sara Maduen˜o and U.S. cities and states face fiscal catastrophe. Melbourne: Robert Barwick LaRouche’s New Year’s Day message, “The Weeks of Crisis Mexico City: Marivilia Carrasco, Rube´n Cota Meza Before Us,” published in this issue, will be issued as a mass-circula- Milan: Leonardo Servadio tion item in 1 million copies. It tells you and your government repre- New Delhi: Ramtanu Maitra Paris: Christine Bierre sentatives what you and they need to know, about what to do in this Rio de Janeiro: Silvia Palacios immediate time of crisis. In LaRouche’s Jan. 28 webcast, “The State Stockholm: Michael Ericson United Nations, N.Y.C.: Leni Rubinstein of the Union: Now, Two Years Later,” the world’s best economic Washington, D.C.: William Jones forecaster will deliver another history-making analysis of what lies Wiesbaden: Go¨ran Haglund ahead, and what the tasks of leadership are in this period. EIR (ISSN 0273-6314) is published weekly (50 issues) In this issue, we feature the strategic briefings given by Lyndon except for the second week of July and the last week of December, by EIR News Service Inc., 317 Pennsylvania and Helga LaRouche in Berlin on Dec. 18—the latest in a rapid-fire Ave., S.E., 3rd Floor, Washington, DC 20003. (202) 543-8002. For subscriptions: (703) 777-9451, or toll- series of interventions they have made around the world, from Italy, free, 888-EIR-3258. World Wide Web site: http://www.larouchepub.com to France, to Hungary, and—by telephone—to Peru. Expect more e-mail: [email protected] surprises to come. European Headquarters: Executive Intelligence Review Nachrichtenagentur GmbH, Postfach 2308, At the top of LaRouche’s agenda for the new year is the expansion D-65013 Wiesbaden, Bahnstrasse 9-A, D-65205, Wiesbaden, Federal Republic of Germany of the international LaRouche Youth Movement. To this end, the Tel: 49-611-73650. Homepage: http://www.eirna.com E-mail: [email protected] Executive Directors: Anno author is preparing a new pedagogical document, titled “Reviewing Hellenbroich, Michael Liebig In Denmark: EIR, Post Box 2613, 2100 Copenhagen ØE, an Original Discovery: Believing Is Not Necessarily Knowing.” EIR Tel. 35-43 60 40 will bring this to you as soon as possible (and you don’t have to be In Mexico: EIR, Serapio Rendo´n No. 70 Int. 28, Col. San Rafael, Del. Cuauhte´moc. Me´xico, DF 06470. Tels: 55-66- between the ages of 18 and 25 to enjoy it!). 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 2003 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 11 American Air Transport Cover Grid Is Disappearing This Week 13 U.S. Household Credit Bubble Set To Explode Chinese Prime 20 Philippines’ Leader’s Bold Minister Zhu Rongji Step Offers Hope and German Chancellor Gerhard Schro¨der, on the 21 Mahathir Points to Dollar maiden voyage of Crisis the world’s first commercial maglev 22 Signs of Depression in train from Shanghai 4 The Weeks of Crisis Before Us to its airport, on A New Year’s statement by Lyndon H. LaRouche, Jr. America’s Cities Dec. 31, 2002. “We have reached the point at which the institutions of the states of the Americas and Europe will either end 23 Business Briefs their hysterical denials of economic reality, or those nations which have not already plunged into an accelerating process of disintegration will begin to do so very soon.” 8 Shanghai’s Maglev Launched: Revolutionary Step for Eurasia The world’s first commercial maglev project, a German- Chinese effort, inaugurates the railroad technology of the 21st Century. The breakthrough in Shanghai was a victory for Lyndon and Helga LaRouche, who have been campaigning for magnetically levitated rail for more than a decade, against the opposition of budget-cutters and deranged environmentalists. www.larouchepub.com Volume 30, Number 1, January 10, 2003 Feature International Interviews 24 LaRouches in Berlin: 48 Sharon and His ‘Mafiya’ 62 Liz Angela Garcı´a Learn the Lessons of Allies Plot Israel Election The acting concertmistress of the Germany’s History Theft Colombian Symphony Orchestra Report from an EIR seminar in the Among the hidden hands behind comments on the importance of German capital on Dec. 18. Ariel Sharon’s drive to install a music in a nation’s culture, and the fascist war Cabinet in Tel Aviv, are significance of the fiscal budget- 26 Conflict Is Not the Natural Russian “mafiya” dons and cutters’ decision to eliminate the Condition Among Men and American organized crime figures, state-funded orchestra. Nations whose own longstanding goal is to Speech by Lyndon H. LaRouche, complete the process of Jr., and discussion with the transforming Israel into a bastion of Departments audience. organized crime. 64 Editorial 41 The Lautenbach Plan and 53 Sharon Faces Election An Opportunity, Not a Threat. Its Consequences Scandal, Threatens War Speech by Helga Zepp-LaRouche. 55 Israel’s Central Bank Warns 56 Iran’s Diplomacy Aims at Eurasian Cooperation 57 Khatami Hails Role for Pakistan’s National Poet 58 No ‘Allende Solution’ for the Cha´vez Problem A statement from the LaRouche in 2004 Presidential campaign. 59 Venezuela Facing Civil War Photo and graphics credits: Cover, page 9, Transrapid 60 IMF Orders Closure of International. Page 5 (Bush, Kim), Colombia’s Symphony White House Photo. Page 5 (organizers), EIRNS/Steven Carr. 62 ‘We Are the Nation’s Real Page 10 (train), CCTV. Page 10, 11, (maps), Transrapid International. Educators’ Pages 25, 41, EIRNS/Christopher An interview with Liz Angela Lewis. Page 27, Indian Prime Garc´ıa. Minister’s website. Page 28, Bundesbildstelle. Page 30, (Franklin), Library of Congress. Page 30 (Roosevelt), Franklin D. Roosevelt Library. Page 36 (bomb), U.S. National Archives. Page 36 (Russell), Library of Congress. Page 39, Coordinacio´n de Material Gra´fico. EIREconomics The Weeks of Crisis Before Us by Lyndon H. LaRouche, Jr. This statement was released by the LaRouche in 2004 Presi- The question now, is whether people have finally learned dential campaign committee on January 1, 2003. their lesson. Have the members of the incoming Congress learned their lesson? Has the President learned this lesson? We have reached the point at which the institutions of the Are they willing to change, while they still can? states of the Americas and Europe will either end their hysteri- So, now, between this month’s opening session of the cal denials of economic reality, or those nations which have U.S. Congress and about January 29th, the credibility of the not already plunged into an already accelerating process of present major national parties’ leadership, the Congress, and disintegration will begin to do so very soon. The statistic left U.S. Presidency will be put to an awful test of their fitness to hanging on the drooping Christmas trees sends a simple, plain lead this republic. Here, in this summary report to you, and to message. The world in general has now been plunged already the President and Congress, I point to the nature of the crises into the greatest economic depression since 1929-1932. Up those institutions of government must face during the present to now, the Congress and Presidency have shown no interest month. On January 28th, when I shall deliver my own “state in any actually competent measures for dealing with that re- of the union” webcast, I shall be able to tell you how those ality.