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 he battle against Social Security privatization in the United States Managing Editor: John Sigerson T Science Editor: Marjorie Mazel Hecht is the crucial international flank for the defeat of fascism. But as this Technology Editor: Marsha Freeman week’s issue makes very clear, that battle cannot be won in its own Book Editor: Katherine Notley Photo Editor: Stuart Lewis terms alone. The town meetings by Democratic Senators and Con- Circulation Manager: Stanley Ezrol gressmen, the AFL-CIO, AARP, and others, to outflank the mega- INTELLIGENCE DIRECTORS: bucks propaganda campaign by Team Bush-Cheney, are useful and Counterintelligence: Jeffrey Steinberg, Michele Steinberg necessary. But the indispensable ingredient, which only the Economics: Marcia Merry Baker, LaRouche movement supplies, is to situate this fight within the strate- Lothar Komp History: Anton Chaitkin gic context of the global financial-economic breakdown crisis. Only Ibero-America: Dennis Small a bankruptcy reorganization, stabilizing the dollar while wiping out Law: Edward Spannaus Russia and Eastern Europe: trillions of dollars worth of purely speculative paper, and returning Rachel Douglas to a fixed-exchange-rate system modelled on Franklin Roosevelt’s United States: Debra Freeman Bretton Woods system, can actually restore economic health. Exactly INTERNATIONAL BUREAUS: Bogota´: Javier Almario this proposition is now scheduled for debate in the Italian House of Berlin: Rainer Apel Representatives (see page 13). Caracas: David Ramonet Copenhagen: Poul Rasmussen Jeffrey Steinberg presents the overview in our Strategic Analysis. Houston: Harley Schlanger In Economics, we publish the foreword to Lyndon LaRouche’s new Lima: Sara Maduen˜o Melbourne: Robert Barwick book, The Earth’s Next Fifty Years. Our reporters further develop the Mexico City: Rube´n Cota Meza picture: the stratospheric rise of commodity prices, as the “smart New Delhi: Ramtanu Maitra Paris: Christine Bierre money” moves out of the dollar; the impending bankruptcy of the Rome: Paolo Raimondi auto sector; and an analysis of the fatal axiomatic flaws propounded United Nations, N.Y.C.: Leni Rubinstein Washington, D.C.: William Jones by those who insist that Social Security is “like the Titanic heading Wiesbaden: Go¨ran Haglund for an iceberg.” In fact, with a growth policy even close to that EIR (ISSN 0273-6314) is published weekly (50 issues), LaRouche has demanded, Social Security will face no problems by EIR News Service Inc., 912 Pennsylvania Ave., S.E., whatsoever. See also the short, pungent fact sheet on the failure of Washington, DC 20003. (202) 543-8002. (703) 777-9451, or toll-free, 888-EIR-3258. the Chile Model of pension privatization, on page 29. World Wide Web site: http://www.larouchepub.com e-mail: [email protected] In foreign and military affairs, the Bush-Cheney policy is running European Headquarters: Executive Intelligence Review Nachrichtenagentur GmbH, Postfach 2308, into increasingly significant opposition. We have exclusive stories D-65013 Wiesbaden, Bahnstrasse 9-A, D-65205, Wiesbaden, Federal Republic of Germany on the factional alignment in Lebanon; the Italian government and Tel: 49-611-73650. intelligence services’ reaction to the killing of SISMI agent and Homepage: http://www.eirna.com E-mail: [email protected] hostage-rescuer Nicola Calipari by U.S. troops in Iraq (we have an Executive Directors: Anno Hellenbroich, Michael Liebig interview with former SISMI head Luigi Ramponi, now a parliamen- In Montreal, Canada: 514-855-1699 In Denmark: EIR, Post Box 2613, 2100 Copenhagen ØE, tary deputy); and in the United States, the effort by Congressmen, Tel. 35-43 60 40 retired military, and others, to defeat those who would cover up and In Mexico: EIR, Serapio Rendo´n No. 70 Int. 28, Col. San Rafael, Del. Cuauhte´moc. Me´xico, DF 06470. Tels: 55-66- justify Pentagon war crimes. 0963, 55-46-2597, 55-46-0931, 55-46-0933 y 55-46-2400. Copyright 2005 EIR News Service. All rights reserved. Reproduction in whole or in part without permission strictly prohibited. Canada Post Publication Sales Agreement #40683579 Postmaster: Send all address changes to EIR, P.O. Box 17390, Washington, D.C. 20041-0390. EIRContents Economics 6 Soaring Commodity Prices Show Threat to Dollar Cover System This Week As a result of central banks pumping liquidity into the financial system, and the control of raw The New York Stock commodity prices by futures Exchange. exchanges in London and New York, the prices for a wide spectrum of raw materials have gone to stratospheric levels. 8 Economy and Ideas Lyndon H. LaRouche, Jr.’s foreword to the forthcoming book The Earth’s Next Fifty Years. 4 World on the Verge of a Dollar Crash A breaking pattern of international developments led 13 Italy Reps. Debate New Lyndon LaRouche to warn that the world is now on the Bretton Woods verge of a collapse of the entire dollar-based post- Bretton Woods floating-exchange-rate system. While 14 GMAC Is a Big Soft Spot in this does not guarantee the immediate crash of the dollar, Global Debt Bubble and the evaporation of the entire global financial superstructure, it does mean that governments must be 16 Auto Leader: ‘We Face an prepared to act now, to put the system through Economic Collapse’ bankruptcy reorganization. An interview with Eugene Morey. 19 India Puts Energy Security on Fast Track 22 Change the Assumptions to Growth, and Social Security Is in Fine Shape 29 Fascist Chile Model of Pension Privatization 30 Can You See Jose´? Jose´ Pin˜ero is on the run. 31 Business Briefs Photo and graphic credits: Cover, www.lss.fd.cvut.cz. Page 9, EIRNS/Stuart Lewis. Page 16, www.uawregion1a.com. Page 30, josepinera.com. Page 36, Italian Parliament. Page 41, British Foreign & Commonwealth Office website. Page 50, James Carville. Page 42, www.chinfo.navy.mil. Page 57, EIRNS/Michael Leppig. Pages 63-71, EIRNS/Randy Kim. www.larouchepub.com Volume 32, Number 11, March 18, 2005 International National Civil Rights 32 U.S. Administration’s 48 John Bolton Will Push 62 LaRouche Youth Join Lebanon Ploy Is BlowingPreventive War at the UN Amelia Boynton Robinson Up In Its Face Coming at the time that the Bush The commemoration of the 40th Bush’s demand for “democracy” in Administration is in a full court anniversary of Selma, Alabama’s Lebanon, as in Iraq, is bringing press for regime change in “Bloody Sunday.” forward a mobilization of precisely Damascus, the appointment of the those political forces which the Administration’s leading WMD 64 A Vote-Less People Is a Administration wanted to destroy, disinformation specialist, and the Hopeless People and even the local collaborators architect of the passage of the An interview with Amelia Boynton with the U.S. plan are nervous. Syrian Accountability Act, is a Robinson. particularly provocative gesture. 34 U.S. Killing of Intelligence Official Shakes Italian-U.S. 50 Washington Post Hits Interviews Relationship Dems on Social Security The paper spreads lies against the 16 Eugene Morey 36 Italy Paid No Ransom to Democracy Corps group of James The president of United Auto Kidnappers Carville and pollster Stanley Workers Local 849 in Ypsilanti, Greenberg. An interview with Luigi Ramponi. Michigan, represents employees of Visteon Corporation. 37 Dirty-Money Scandal 51 War Crimes Was the Policy Points to Sharon, Mega The report by Navy Inspector 36 Luigi Ramponi General Vice Adm. Albert Church, Representative Ramponi heads the The case of Israel’s Bank on Defense Department detention Hapoalim. Defense Committee of the Italian and interrogation policies, continues House of Representatives. A four- the cover-up, but Congressmen and 40 Behind the Kelly/Wilson/ star general, he was head of the others are demanding the truth. SISMI in 1991-92. Duggan Affair: Anatomy of Documentation: From the hearing a Defamation Campaign of the Senate Armed Services 64 Amelia Boynton Robinson Committee hearing on March 10, in Mrs. Robinson, a fighter for civil 43 Discontinuity in Current which Senators asked Admiral rights for nearly a century, is vice World Affairs Church about a secret Justice chairwoman of the Schiller Institute A presentation by India’sbyMaj. Department memorandum. in the United States. A participant Gen. Vinod Saighal (ret.) to EIR’s in the events of Bloody Sunday in Jan. 12-13 seminar in Berlin. 54 Arnie’s Lies Can’t Hide Selma, Alabama, she and her late Shultz’s Fascism husband S.W. Boynton had been 47 International Intelligence fighting for voting rights for 30 56 Supreme Court Majority years before the Selma march. Bars Death Penalty for Minors Departments 58 DeLay Is Nervous; Pals’ Legal Troubles Mount 46 Report from Germany Schro¨der Visits Arabian Peninsula. 59 National News 60 Congressional Closeup Editorial 72 Stop the Avian Flu Pandemic! EIRStrategic Analysis World on the Verge Of a Dollar Crash by Jeffrey Steinberg Lyndon LaRouche announced on March 9, based on a break- of such potential sparks. ing pattern of developments, that, in his judgment, the world In response, LaRouche warned, governments in the is now on the verge of a collapse of the entire dollar-based Americas and Eurasia must be prepared to abandon the false post-Bretton Woods floating-exchange-rate system. This axiomatic assumptions that have plagued policymakers for does not guarantee the immediate crash of the dollar, and the the past 30 years or more—since the abandonment (by Shultz evaporation of the entire global financial superstructure. It and President Nixon in 1971) of Franklin Roosevelt’s Bretton does mean that governments around the world, particularly Woods System of fixed exchange rates, pegged to a monetized the United States government, must be prepared to act, to value of gold.