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 Associate Editors: Ronald Kokinda, Susan Welsh Managing Editor: John Sigerson here is truly a mind-boggling disparity between events surround- Science Editor: Marjorie Mazel Hecht T Special Projects: Mark Burdman ing the U.S. Presidential election campaign, and reality. I am not Book Editor: Katherine Notley generally given to citing the British press as a means to give our Photo Editor: Stuart Lewis Circulation Manager: Stanley Ezrol readers insight into the political situation, but the cover of the latest INTELLIGENCE DIRECTORS: London Economist sums it up pretty well: Two cartooned babies in Asia and Africa: Linda de Hoyos diapers, Al Gore and George W. Bush, are bauling and battling one Counterintelligence: Jeffrey Steinberg, Paul Goldstein another in the nursery, under a headline that reads, “They’re Fighting Economics: Marcia Merry Baker, over Foreign Policy!” William Engdahl History: Anton Chaitkin That is what the rest of the world sees, with amazement, when Ibero-America: Robyn Quijano, Dennis Small they look at America. People spending the money that was supposed Law: Edward Spannaus Russia and Eastern Europe: to pay the rent, in order to buy lottery tickets. Day-traders at the stock Rachel Douglas, Konstantin George market popping Prozac, so as not to get “stressed out” when the lows United States: Debra Freeman, Suzanne Rose get too low, or the highs get too high. INTERNATIONAL BUREAUS: Bogota´: Jose´ Restrepo When will the insanity stop? Bonn: George Gregory, Rainer Apel Lyndon LaRouche, in a speech published in this issue, warns Buenos Aires: Gerardo Tera´n Caracas: David Ramonet that we are entering the “terminal phase” of the financial breakdown Copenhagen: Poul Rasmussen crisis. As in the case of an earth dam that is beginning to disintegrate, Houston: Harley Schlanger Lima: Sara Maduen˜o it is impossible to say on what date the floodwaters will sweep in; but Melbourne: Robert Barwick that day will come soon. Mexico City: Hugo Lo´pez Ochoa Milan: Leonardo Servadio Asian leaders, seeing such disaster looming, have set up a joint New Delhi: Susan Maitra fund to try to defend themselves against a renewed speculative attack Paris: Christine Bierre Rio de Janeiro: Silvia Palacios against them (see Economics). Stockholm: Michael Ericson United Nations, N.Y.C.: Leni Rubinstein All around the globe, there are wars, hunger, and devastation: Washington, D.C.: William Jones In the Mideast, as our Feature presents the case, the danger of a Wiesbaden: Go¨ran Haglund renewed outbreak of war can only be prevented by tackling the crucial EIR (ISSN 0273-6314) is published weekly (51 issues) issue of water, and specifically the program for nuclear desalination except for the second week of July and the last week of December, by EIR News Service Inc., 317 Pennsylvania that LaRouche has called for. Ave., S.E., 2nd Floor, Washington, DC 20003. (202) The entire continent of Africa is going up in flames, while pan- 544-7010. For subscriptions: (703) 777-9451, or toll- free, 888-EIR-3258. demic diseases rage, and nobody in the West does anything. World Wide Web site: http://www.larouchepub.com e-mail: [email protected] In Asia, storms are raging. We report on the war in Sri Lanka, European Headquarters: Executive Intelligence Review Nachrichtenagentur GmbH, Postfach 2308, and the dismantling of the national institutions of Thailand. D-65013 Wiesbaden, Bahnstrasse 9-A, D-65205, Wiesbaden, Federal Republic of Germany From Ibero-America, we have reports on Brazil and Venezuela, Tel: 49-611-73650. Homepage: http://www.eirna.com E-mail: [email protected] Executive Directors: Anno both nations whose sovereignty and national existence is being de- Hellenbroich, Michael Liebig stroyed by the financier oligarchy—“melting like ice cream in the In Denmark: EIR, Post Box 2613, 2100 Copenhagen ØE, Tel. 35-43 60 40 sun,” as one Brazilian commentator put it. In Mexico: EIR, R´ıo Tiber No. 87, 5o piso. Colonia Cuauhte´moc. Me´xico, DF, CP 06500. Tel: 208-3016 y 533- These, and the related issues of the breakdown of America’s own 26-43. infrastructure, health care, and education, are the issues which the Japan subscription sales: O.T.O. Research Corporation, Takeuchi Bldg., 1-34-12 Takatanobaba, Shinjuku-Ku, Tokyo U.S. Presidential campaign should be addressing. 160. Tel: (03) 3208-7821. Copyright ” 2000 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 Books Economics Feature 24 Who Was Charles 4 Financial Crisis Prompts Babbage? Asian Chiang Mai A review by Lyndon H. LaRouche, Initiative Jr. of The Cogwheel Brain, by As Asia, Europe, and the United Doron Swade. States alike face a renewed global financial crisis, East Asian finance ministers reached what Thailand’s Departments The Nation called “an historic agreement to redesign Asia’s Palestinians in Jordan wait in line to get water. 13 Australia Dossier financial architecture” to protect their currencies from attack. 16 Solving the Water Shortage “Pacifying” Rural Unrest. Is the Key to Mideast Peace When peace talks resume, between 72 Editorial 6 Europeans Are Getting Uncomfortable on the the Israeli and Syrian governments, Currrent History as Classical or as the Palestinian-Israeli track is Tragedy. Titanic With the euro collapsing, the refusal revived, there will be one central of European governments to enter a issue which must be faced, if serious debate on how to implement progress is to be made. That issue is a production-based economic water. There can be no viable system that bans financial Palestinian state, no future speculation and creates millions of perspectives for hundreds of Photo and graphic credits: Cover, thousands of returning Palestinian CARE. Pages 9, 56, 57, 63-65, jobs, condemns them to stumble from one emergency to the next. refugees, unless the basis is EIRNS/Stuart Lewis. Pages 17, 18, established for a productive, 29, EIRNS. Page 23, Metropolitan growing agricultural and industrial Water District of Southern 7 Danish Parliamentarian economy; and that requires water California. Page 32, EIRNS/Linda Backs New Bretton Woods currently not available. And, the de Hoyos. Page 35, EIRNS/Muriel technology is available to provide Mirak-Weissbach. Page 46, EIRNS/ 8 The Genocidal Policy it. Carlos Wesley. Page 47, EIRNS/ behind the Creation of the Carlos de Hoyos. HMOs 21 A Nuclear-Powered A Wall Street-directed team of Correction: In “U.S. Families’ Desalination Plant for Use budget-cutters in the Nixon in the Mideast Exposure to Stock Market at administration authored the Health Unprecedented Level,” in the May Maintenance Organization Act of 22 Generating Water, Power: 12 EIR, “transaction accounts” were 1971, which passed in 1973, incorrectly identified as including inaugurating the murderous system Beautiful, and Necessary Certificates of Deposit. of HMOs, which have imposed Nazi medical standards, destroyed America’s health system, closed hospitals, and led to unnecessary suffering and death. 12 A Call for Action on Russia’s Health Crisis 14 Business Briefs Volume 27, Number 20, May 19, 2000 International National 28 Sri Lanka in Turmoil as 41 Hugo Cha´vez’s Venezuela: 54 LaRouche Continues Drive, Tamil Tigers Gain GroundLittle Bread, But Many as Gore Self-Destructs The Tamil Tigers’ recent victory Circuses Unless a qualified dark-horse over the Sri Lankan Army, candidate emerges at the 11th hour, threatening to re-gain possession of45 The Terminal Phase of the to rescue the Democratic Party from the northern Sri Lankan peninsulaBankrupt System: What nominating Al Gore for President, of Jaffna, is a threat to the stability the party is going to go up in flames of South Asia.Nations Must Do Now in November—as Lyndon U.S. Democratic Presidential pre- LaRouche warned. candidate Lyndon H. LaRouche, 31 Thailand: Transparency Jr.’s videotaped address to the International Attacks the founding conference of Australia’s 56 Al Gore and George W. Institutions new political party, the Curtin Bush: Wall Street’s Two- Labor Alliance. Headed Freak 34 Momentum Builds in With this article, EIR initiates a Congress To Change U.S. 52 International Intelligence score-card, showing that Gore’s and Iraq Policy Bush’s policies of genocide and Opposition is growing to the UN corruption are essentially the same. sanctions which have killed hundreds of thousands of children. 60 The Dirty Justice Department Is the Dirtiest 37 ‘Brazil Is Melting Like Ice of Them All Cream in the Sun’ The DOJ is coming under another Opposition is growing to President round of public attack, this time for Cardoso’s destruction of national its cover-up of false testimony institutions. given to the court during the 1983 trial of rogue CIA officer Edwin Documentation: An “Order of the Wilson. Day” by Army Commander Gen. Gleuber Viera, and statements by Brigadier Ercio Braga, warning that 63 Warfield on Tour, Uplifts the policies under President Audiences with Classical Fernando Henrique Cardoso must Art: ‘Live It, Baby!’ be reversed or the nation of Brazil For those privileged to spend some will cease to exist. time with world-renowned baritone William Warfield, it is clear that he is a rare example of what Friedrich Schiller envisioned when he wrote of the “beautiful soul.” 66 Sing the Music Lyndon H. LaRouche, Jr. wrote this essay to honor the 80th birthday of William Warfield, who is one of the great Classical singers and musical pedagogues of our time.