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: Nancy Spannaus Associate Editors: Ronald Kokinda, Susan Welsh yndon LaRouche’s new flanking attack against George Shultz’s Managing Editor: John Sigerson L Science Editor: Marjorie Mazel Hecht fascist “Vulcans”—the controllers of President Bush—begins in this Technology Editor: Marsha Freeman issue, with LaRouche’s review of the explosive new book Confes- Book Editor: Katherine Notley Photo Editor: Stuart Lewis sions of an Economic Hit Man, by John Perkins. Perkins knows from Circulation Manager: Stanley Ezrol the inside a good bit about some of the crimes that have been commit- INTELLIGENCE DIRECTORS: ted against Third World nations by Shultz’s crowd. But he also makes Counterintelligence: Jeffrey Steinberg, Michele Steinberg some important blunders, because he lacks the strategic-historical Economics: Marcia Merry Baker, overview, and competence in economics, which LaRouche provides. Lothar Komp History: Anton Chaitkin LaRouche has been at war with these Economic Hit Men—or Ibero-America: Dennis Small EHMs, as Perkins dubs them—for more than 30 years, as we docu- Law: Edward Spannaus Russia and Eastern Europe: ment in this issue (see “ ‘Hit Men’ vs. LaRouche’s Fusion Energy Rachel Douglas Foundation,” page 17), and as we shall report in further detail next United States: Debra Freeman week. It is they, and their controllers such as George Shultz, who INTERNATIONAL BUREAUS: Bogota´: Javier Almario railroaded LaRouche to prison for five years on trumped-up charges, Berlin: Rainer Apel because he represents the most potent intellectual force opposing Caracas: David Ramonet Copenhagen: Poul Rasmussen their vicious destruction of the nation-state. Houston: Harley Schlanger Elsewhere in this issue are news stories that show the “hit men” in Lima: Sara Maduen˜o Melbourne: Robert Barwick action around the world, including Arnold Schwarzenegger’s brutal Mexico City: Rube´n Cota Meza austerity program in California; Tony Blair’s in Britain; and the rav- New Delhi: Ramtanu Maitra Paris: Christine Bierre aging of the Israeli economy on the same free-trade model. Rome: Paolo Raimondi The release of LaRouche’s new “shaped charge” against the oli- United Nations, N.Y.C.: Leni Rubinstein Washington, D.C.: William Jones garchial enemy comes at a time when the dollar has reached a new Wiesbaden: Go¨ran Haglund low, and America’s friends, allies, and trading partners are looking EIR (ISSN 0273-6314) is published weekly (50 issues), desperately for a route to survival. See International for our report by EIR News Service Inc., 217 4th Street, S.E., on the Chinese diplomacy in South America, and LaRouche’s com- Washington, DC 20003. (202) 543-8002. (703) 777- 9451, or toll-free, 888-EIR-3258. mentary on that in his webcast address to Argentine and Peruvian World Wide Web site: http://www.larouchepub.com e-mail: [email protected] students. The dollar collapse and the need for a new world monetary- European Headquarters: Executive Intelligence Review Nachrichtenagentur GmbH, Postfach 2308, financial system are addressed in our Editorial, as well as by D-65013 Wiesbaden, Bahnstrasse 9-A, D-65205, Wiesbaden, Federal Republic of Germany LaRouche in his various contributions in this issue. Tel: 49-611-73650. With our publication of Rep. Henry Waxman’s (D-Calif.) open Homepage: http://www.eirna.com E-mail: [email protected] letter demanding additional hearings on the contracts of Dick Executive Directors: Anno Hellenbroich, Michael Liebig Cheney’s Halliburton in Iraq, we initiate a policy of running extensive In Montreal, Canada: 514-855-1699 In Denmark: EIR, Post Box 2613, 2100 Copenhagen ØE, excerpts of important Congressional documents that are being given Tel. 35-43 60 40 short shrift by the media. Though blocked by a “Vulcanized” House In Mexico: EIR, Serapio Rendo´n No. 70 Int. 28, Col. San Rafael, Del. Cuauhte´moc. Me´xico, DF 06470. Tels: 55-66- and Senate leadership, some Congressmen are taking important ini- 0963, 55-46-2597, 55-46-0931, 55-46-0933 y 55-46-2400. Copyright 2004 EIR News Service. All rights reserved. tiatives that deserve widespread publicity and support. Reproduction in whole or in part without permission strictly prohibited. Postmaster: Send all address changes to EIR, P.O. Box 17390, Washington, D.C. 20041-0390. EIRContents National 28 Schwarzenegger Savages California, Aims at Cover Presidency This Week George Shultz and others will be watching closely to see if their Hollywood front-man is capable of George Shultz— pushing through fascist looting then-U.S. Secretary policies on California. If so, they of State, and are ready to unleash him on the only decades-long juicier target there is: the United controller of the States. “Economic Hit Men”—addresses the United Nations 30 Congress Passes a War and General Assembly 4 LaRouche Launches Attack on Shultz’s Austerity Budget in 1985. Fascist Vulcans A new book by John Perkins, Confessions of an 32 Rep. Waxman Demands Economic Hit Man, has prompted Lyndon LaRouche to Halliburton Hearings launch a flanking attack against George Shultz’s fascist “Vulcan” apparatus in the Bush Administration. The networks and operations identified by Perkins are, in many cases, known to EIR from events in which we have been prominent players over decades; but on certain key aspects, Perkins misses the point. 6 The Follies of the Economic Hitmen: Re- Animating the World’s Economy By Lyndon H. LaRouche, Jr. In John Perkins’ otherwise notably useful book, “there are four systemic errors concerning the principles of physical economy, and one, added point of curious unclarity, concerning his references, there and elsewhere, to the meaning of the events of September 11, 2001.” 17 ‘Hit Men’ vs. LaRouche’s Fusion Energy Foundation A case study of the Nuclear Club of Wall Street. 19 FEF Led Nuclear Science, Development Battle 20 Perkins’ Expose´ Shows Free Trade Enslavement A telephone presentation by Lyndon H. LaRouche, Jr. to the LaRouche Youth Movement in Denmark. www.larouchepub.com Volume 31, Number 47, December 3, 2004 International Economics Science & Technology 34 Huge Potential in China’s 52 Dangers of Cartel 64 Nuclear Power: The Ibero-American InitiativesMonoculture Threaten Litmus Test for Space Chinese President Hu Jintao made a Nations’ Food Supplies Exploration two-week diplomatic and trade An interview with Dr. William A review of To the End of the Solar foray to Brazil, Argentina, Chile, Heffernan. System: The Story of the Nuclear and Cuba. He announced that China Rocket, by James A. Dewar. is prepared to invest $100 billion in 59 Sharon, Netanyahu Are Ibero-America over the next ten Making Israel Poorer 66 Why Use Nuclear Energy? years, and would double the current level of business over the next 69 Dr. Glenn Seaborg on ‘The three. 61 Bush FDA Protects Profit Rather Than Health Nuclear Space Age’ 36 Argentina’s Enemies Are Congressional hearings showed gross negligence of the U.S. Food the Synarchist Bankers and Drug Administration. Lyndon H. LaRouche, Jr. gave this presentation to a webcast video- Interviews conference with youth in Argentina and Peru. 52 Dr. William Heffernan For three decades, Dr. Heffernan 47 Austerity, Fear Basis for has led research into the control Blair Re-Election over U.S. farm and food sectors by a small number of firms. He is now engaged in a review of the global 49 Conference Report: patterns and implications. ‘Eurasian Youth Initiative’ in Moscow Photo and graphic credits: Cover, UN Photo 165831/Miguel Jimenez. 51 Ivory Coast: West Behind Page 5, (Shultz et al.), Department Departments Rebels in Raw Materials of State/Michael Gross. Page 5 Grab (LaRouche), Page 21 (Indira Gandhi), EIRNS/Stuart Lewis. 63 Report From Germany Pages 7, 13, 25, National Archives. Poverty Is Increasing Dramatically. Page 20, CNN.com. Page 21, (Torrijos), Omar Torrijos Foundation. (Herrhausen), Bundesbildstelle. (Ponto), Ju¨rgen Editorial Ponto Stiftung. Page 24, Coordinacio´n de Material 72 It’s Not Just the Dollar, It’s Gra´fico. Page 29, Governor Schwarzenegger’s website. Pages the System 37, 41, EIRNS. Page 38, EIRNS/ Carlos Perez Galindo. Page 44, UNICEF/Ray Witlin. Page 45, President Kirchner’s website. Page 47, EIRNS/Alan Clayton. Page 55, USDA, APHIS (Animal and Plant Health Inspection Service). Pages 57, 58 (Hostein), USDA/Keith Weller. Page 58, (Angus), USDA/ Scott Bauer. Page 65, 67, 70, NASA. EIRFeature LaRouche Launches Attack On Shultz’s Fascist Vulcans by Jeffrey Steinberg The publication and initial widespread circulation of a book, to defend the interests of their own people against the vultures Confessions of an Economic Hit Man, by John Perkins, has of the International Monetary Fund and World Bank, assassi- prompted Lyndon LaRouche to launch a major new interna- nated in fiery plane crashes: Panama’s chief of state Omar tional flanking attack against George Shultz’s fascist Torrijos and Ecuador’s President Jaime Roldos. “Vulcan” apparatus, an attack which could catapult the Per- Perkins named George Shultz, the former Bechtel execu- kins book to the top of the international best-seller lists, and tive, Secretary of State, and creator of Condoleezza Rice’s drive the would-be controllers of the Bush-Cheney “Halli- “Vulcan” neo-con apparatus, as a pivotal player in the appara- burton Regime” into