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 his Summer’s months are characterized by two crises, which can Managing Editor: John Sigerson T Science Editor: Marjorie Mazel Hecht be felt by citizens of any nation where this issue is being read: acceler- Special Projects: Mark Burdman ating economic collapse; and increasing turmoil and threat of war, as Book Editor: Katherine Notley Photo Editor: Stuart Lewis the “utopian” faction looks for the military “solution” to the finan- Circulation Manager: Stanley Ezrol cial crash. INTELLIGENCE DIRECTORS: This issue’s National section focusses on that threat in the United Counterintelligence: Jeffrey Steinberg, Michele Steinberg States, centered in the actions of Senators John McCain and Joseph Economics: Marcia Merry Baker, Lieberman to bully the White House into “perpetual war.” Jeff Stein- Lothar Komp History: Anton Chaitkin berg reveals the real McCarthyite and organized-crime backgrounds Ibero-America: Dennis Small and backers of these two “reformers.” Lyndon LaRouche spells out Law: Edward Spannaus Russia and Eastern Europe: the battle required to save the U.S.A. from what threatens to become Rachel Douglas the worst crisis in its history as a constitutional Republic, by defend- United States: Debra Freeman, Suzanne Rose ing the institution of the Presidency. To supply ammunition for this INTERNATIONAL BUREAUS: Bogota´: Javier Almario fight, EIR is producing an updated offprint of our July 19 cover story, Berlin: Rainer Apel “The Real Scandal: McCain and Lieberman.” The first edition sold Buenos Aires: Gerardo Tera´n Caracas: David Ramonet out in less than two weeks. Copenhagen: Poul Rasmussen In Economics, we present documentation of the economic col- Houston: Harley Schlanger Lima: Sara Maduen˜o lapse, starting with John Hoefle’s analysis of the rise and fall of the Melbourne: Robert Barwick global stock markets since 1997-98, which is similar in some striking Mexico City: Marivilia Carrasco, Rube´n Cota Meza respects to the Great Depression (as our cover graphic shows)— Milan: Leonardo Servadio except that this time the physical economy is in much worse shape. New Delhi: Ramtanu Maitra Paris: Christine Bierre Italian Senator Oskar Peterlini, in his speech to an EIR seminar in Rio de Janeiro: Silvia Palacios Rome, draws out the demographic implications for Italy of the global Stockholm: Michael Ericson United Nations, N.Y.C.: Leni Rubinstein financial breakdown, notably the crisis in pensions. Mohd Peter Washington, D.C.: William Jones Davis, a biotechnology researcher in Malaysia, tells how the global- Wiesbaden: Go¨ran Haglund ized free-trade system blocked highly promising technologies that EIR (ISSN 0273-6314) is published weekly (50 issues) could have given the nation food self-sufficiency—and how except for the second week of July and the last week of December, by EIR News Service Inc., 317 Pennsylvania LaRouche’s New Bretton Woods system could quickly restore that Ave., S.E., 3rd Floor, Washington, DC 20003. (202) 396-0398. For subscriptions: (703) 777-9451, or toll- potential. See also the fascinating analysis in International by St. free, 888-EIR-3258. World Wide Web site: http://www.larouchepub.com Petersburg correspondent Roman Bessonov, on the effects in Russia e-mail: [email protected] of the post-Communist schisis of free-trade ideologues intertwined European Headquarters: Executive Intelligence Review Nachrichtenagentur GmbH, Postfach 2308, with former KGB operatives. D-65013 Wiesbaden, Bahnstrasse 9-A, D-65205, Wiesbaden, Federal Republic of Germany The economic breakdown, as EIR has shown, is fueling the drive Tel: 49-611-73650. Homepage: http://www.eirna.com E-mail: [email protected] Executive Directors: Anno for war on the part of the Anglo-American “utopian” faction. See our Hellenbroich, Michael Liebig In Denmark: EIR, Post Box 2613, 2100 Copenhagen ØE, reports in International on Israeli Prime Minister Ariel Sharon’s war Tel. 35-43 60 40 crimes against the Palestinians, and the push of the “Wolfowitzers” In Mexico: EIR, Serapio Rendo´n No. 70 Int. 28, Col. San Rafael, Del. Cuauhte´moc. Me´xico, DF 06470. Tels: 55-66- in Washington for war against Iraq, even before Fall. 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 2002 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 9 The Usefulness of Nepad for Africa Cover The New Partnership for Africa’s This Week Development (Nepad), a plan of African Presidents to get aid and investment from the developed The four-year countries, in exchange for policies “downslope of of privatization, austerity, and delusions,” political good behavior, has done 1929-33—when negative service of raising for “recovery was African debate, the vital alternative: around the industrialization. corner”— compared to the two years of 4 Two Years Into the Worst Financial Crash in 12 Italian Senator Shows delusions since History Worldwide Plight of Election Day, 2000. Pension Funds Stock markets are down some 50% from their peaks in Sen. Oskar Peterlini gave this 2000, back to their 1997-98 levels, but carrying half a speech at an EIR seminar in Rome decade’s more debt, leverage, and speculation. How far on July 2. and how fast we fall, is largely a matter of actions taken, or not taken, on fundamental economic policy. The 15 Wall Street Takes a Hit in future of mankind depends on those people who respond Peru, As Anti-Privatization to the crisis by reexamining the axioms which caused Spreads them to be deluded, and by figuring out why Lyndon LaRouche could see so clearly, what they did not. 16 Drug Shortages Plague United States Part 1 of a series on “The Other Security Risk.” 18 National Food Self- Sufficiency Planning: The Case of Malaysia An interview with Mohd Peter Davis. Photo and graphics credits: Cover design, Alan Yue. Page 18, Universiti Putra Malaysia. Pages 25, 50, DOD/R.D. Ward. Page 32, Palestinian Red Crescent website. Pages 42, 49, Bundesbildstelle Bonn. Pages 43 (Sobchak), 45, 46, 63 (LaRouche), EIRNS/Stuart Lewis. Page 44, UN Photo. Page 48, www.redstar.ru. Page 53 (Lewis), Princeton Weekly Review. Page 53 (Yassine), Courtesy of Abdessalam Yassine. Page 56, 57, I.B. Tauris Publishers. Page 59, EIRNS/Sylvia Spaniolo. Page 65, White House photo. Page 69, EIRNS videograb. www.larouchepub.com Volume 29, Number 29, August 2, 2002 International Books National 24 Sharon Orders a Massacre 52 Islam: Bernard Lewis’ Lie, 58 Knock Out Lieberman and and Prepares for WarAbdessalam Yassine’s McCain to Save the The Israeli Prime Minister, backed Truth Republic by Labor Party members of his What Went Wrong? Western Impact Beyond the well-known weaknesses Cabinet including Foreign Minister and Middle Eastern Response, by of President George W. Bush and Shimon Peres, ordered the bombing Bernard Lewis. his immediate circle of Presidential in Gaza precisely at the point that advisers, the greatest obstacle to Winning the Modern World for Islam, by strenuous international efforts had effective leadership from the Abdessalam Yassine. nearly organized a cease-fire. institution of the U.S. Presidency, is the insurgency against the Bush 27 If U.S. Patriots Defeat the 55 Russia at the Launch of the Presidency, led by Senators Joseph Tory Faction, We Can Stop Great Game Lieberman (D-Conn.) and John the Drive to War Diplomacy and Murder in Tehran: McCain (R-Ariz.). Alexander Griboyedov and Imperial Iran’s IRIB Radio interviews Russia’s Mission to the Shah of Lyndon H. LaRouche. 61 The Electable LaRouche Persia, by Laurence Kelly. “Some people who ought to know 31 Sharon’s Collective better, exclaim, ‘But, LaRouche is Punishment: A War Crime not electable!’ Do not become upset Departments when you hear such foolish things being said. When people say that, 33 ‘Regime Change’ in Iraq 41 International Intelligence they are not actually thinking; it is Begins in Turkey just another case of a mouth 72 Editorial shooting itself off in a knee-jerk, 34 Dark Attacks Against The Big Crash: Substance and Pavlovian reflex.” A statement by LaRouche in Germany Shadows. Lyndon H. LaRouche, Jr. 36 U.A.E.’s Economic 64 ‘Homeland Security’ Humanism Builds a Interviews Threatens Constitution Modern Nation At a seminar held in Washington by 18 Mohd Peter Davis the Coalition on Defending American Constitutional Rights and 37 Mexico in Crosshairs of A British-born Lecturer in the Liberties and the Founders’ Views Human Rights ‘Mafia’ faculty of Veterinary Medicine, of Mankind, speakers did not toe Universiti Putra Malaysia, the “inside the Beltway” line. 39 LaRouche Interviewed: Selangor, Malaysia, Mr. Davis studied biochemistry in Britain, U.S. Like Roman Empire 68 Ritter Debunks Iraq War From an interview with the Russian worked in animal husbandry in weekly newspaper Vek. Australia, and has been active for Hype in London many years in R&D for Malaysian Former UN weapons inspector agriculture. Scott Ritter spoke before a cross- 40 The Murky Dismissal of party group of British German Defense Minister parliamentarians. 42 Schisis in Putin’s Russia 70 Congressional Closeup Roman Bessonov explores the impact on Russia’s elites of years of mental splits, which have created susceptibility to geopolitical entrapment.