...... ...................Larouche Online Almanac

Published: Tuesday, June 14, 2005

Volume 4, Issue Number 24

This Week You Need to Know:

Remember Walther Rathenau

by Lyndon H. LaRouche, Jr.

June 10, 2005

Today, the echo of the July 24, 1922 assassination of Germany's great industrialist Walther Rathenau once again reverberates in leading events of today's world history. Once again, today, as then, terror chills the will-power of prominent statesmen shuddering in fear of those malignant financial powers behind the scenes, powers which would once again arrange the assassination of any political or kindred leading figure who gets in the way of current plans to loot the pensions and other instruments of the general welfare of the peoples of the world, as the murder of Walther Rathenau and other veterans of the Rapallo negotiations was unleashed in waves following the April 10, 1922, so-called Rapallo Treaty adopted at Genoa, Italy.

Three months after Rathenau's assassination, Venice's British asset, "Young Turk" veteran and banker Count Volpi di Misurata, orchestrated Benito Mussolini's October 24, 1922 March on Rome. Thirteen months after that, the abortive Hitler Munich coup d'état was unleashed by then Mussolini copy-cat Adolf Hitler.

There was no mere coincidence among those connected incidents. The forces behind these events of 1922 were one and the same London- and Paris-dominated, oligarchical circles whose influence dominated Europe from the period of the Versailles Treaty-negotiations on. The world was then well on the way to the likelihood, if not yet the certainty, of what is known today as World War II. Once again, today, threats of the type which felled Rathenau and others are being delivered, or are messages being prepared to be sent soon to leading political figures around the world.

It was the failure of leading European circles to react with courage and competence to the threat from the Versailles Treaty-negotiations-based financier circles, implicated in the murder of Rathenau, which led directly into what later became known as fascism and World War II. Similar fates overtook the lives of many of the leading participants in Rapallo soon after, excepting Britain's Lloyd George. Similar negligence, today, to that which allowed the authors of that wave of deaths to continue, is to be found among relevant political figures. Such negligence now could lead rather quickly into something even far worse than what we once called "World War II."

We should have learned from history of such and kindred processes, that we rarely find among us leaders with both the wisdom and courage needed to prevent such awful turns in history. It is therefore urgent that, from time to time. well-meaning people in positions of important influence must discover in themselves the exceptional qualities of wisdom and courage not to evade the extraordinary risks which leaders must accept for the sake of present and future generations, the courage to look the Devil in the eye, and face him down. Such a time is now....

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Latest From LaRouche

LYNDON LAROUCHE ON BUTCH VALDES' — PHILIPPINES RADIO SHOW

June 10, 2005

BUTCH VALDES: Tonight, we have the distinct privilege of having a great statesman, physical economist, leader of a worldwide movement, and the LaRouche Youth Movement. And we want not to waste too much time—we'd like from the United States of America: Mr. Lyndon LaRouche.

LYNDON LAROUCHE: Hello there. We are in a very interesting situation. I'm in the middle of producing an article for this week's EIR, which will be of some international relevance. It deals with the crisis we have here, which is actually an international crisis. For example, we have the GM crisis: General Motors and Ford are going down. The United States is in the process, unless we stop it, of losing not only our automobile industry, essentially—except for the Japanese companies operating inside the United States; and also, losing more: losing our machine-tool capacity, which is largely concentrated in the automobile industry. So therefore, if we lose the auto industry, we become essentially, maybe not a Third World country, but sort of a Second World country at best, or a One-And-A-Half World country.

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New: Proposed Rail Development Corridors in the Indiana-Ohio-Pennsylvania Industrial Belt
The Economy

World and Nation-State

This Week in History

.June 14 - 20, 1941

President Franklin Roosevelt Looks Back at the Blitzkrieg Against the New Deal

On June 16, 1941, President Roosevelt completed writing the introduction to the 1938 volume of his collected papers and addresses. Much had happened in the interval between 1938 and 1941, and events had proven that Roosevelt's efforts to restore the American economy had been most crucial. Not only had the New Deal brought America back from the precipice of destruction, it had also remoralized the population. Horrific events in Europe and Asia were about to hurl those American citizens into a world war against Fascism on two fronts, and thanks to Roosevelt's efforts they were at least partly prepared to face it.

But in 1938, as is also happening today, there had been forces hell-bent on destroying the policies of the New Deal. The control wielded by the "Economic Royalists" over much of the media ensured an outlet for a steady stream of vituperation. Using their favorite destructive method, the Tory Faction first did everything they could to sabotage Roosevelt's economic policies, including manipulating currency and investments, and then blamed the President when the beleaguered New Deal policies did not produce instant prosperity.

In writing his introduction to the 1938 volume, Roosevelt pointedly used terms associated with the contemporary Nazi onslaught to describe the actions of the financiers who opposed saving and developing the American economy. With the hindsight of only a few years, FDR opened by writing: "It has frequently been said that eternal vigilance is necessary to preserve our liberties. It is equally true that eternal vigilance is necessary to keep democracies and their governments truly liberal. We in the United States have had first-hand experience with that truism since the end of 1933, when, for the first time, the full effects of our program of recovery and reform began to be felt. For, as soon as the clear action of the new administration in 1933 had started the wheels of industry turning, there came the demand from some sources to stop all of the reforms, and to let things begin again to run on as they had during the previous decade.

"Of course, the people of the United States have always understood that the new administration never intended to be a mere rescue party—organized to save the economic system and turn it back to the small, powerful group which had formerly controlled it through their concentrated economic power. The Government in 1933 was determined not only to save the system, but also to remove from it the abuses, evils, and widespread maladjustments which had brought it to the very brink of destruction. The Government was determined that the system, thus preserved and reformed, should no longer be subject to the control of the handful of men and corporations that had dominated it in the false boom days before 1929.

"To carry out that determination was to resist, from 1933 down to date, all the efforts of mighty forces—day by day, year by year. These forces had tremendous interests at stake—wealth, privilege, economic power, political power. Although few in number, they had the resources which enabled them to make the most noise, and to become the most vociferous in the press, over the radio, through newspaper and outdoor advertising, by floods of telegrams and letters to the Congress, by employment of professional lobbyists, by all the many means of propaganda and public pressure which have been developed in recent years.

"In 1938 the efforts of this minority, consistent in its opposition since 1933, rose to new heights. They had tried stubbornly at the polls in 1936 to stop our program of reform. They had failed. They had tried in 1937 to stop it in the courts, where they had been so successful during 1935 and 1936. Here, too, they failed. Therefore, through the years of 1937 and 1938, their activities to impede progress and bring about a repeal or emasculation of the New Deal measures of reform were redoubled.

"There were several reasons for this particular burst of effort this year. First, the Supreme Court fight, although it had been finally successful in obtaining its objective, had been defeated in the Congress. The enemies of liberal government tried to hail that loss of a single battle as a defeat of the entire progressive program of the administration. A strong "putsch" was organized to try to make it appear as though the representatives of the people in the Congress had, by failing to pass the Supreme Court bill, repudiated the principles and conduct of the New Deal.

"Second, there had come a substantial business recession—commencing in the fall of 1937, and continuing through the first half of 1938. These same minority groups sought at once to take advantage of it by blaming it exclusively on the attitude and legislation of the Government, claiming that the administration was 'strangling business' and 'ruining confidence,' and preventing 'full recovery.'

"The policy of the Federal Government, however, continued to follow the only path of true recovery and the only assurance of preservation of our system of private profit and free enterprise—the continuance and strengthening of social reform and progressive legislation. These recommendations were renewed by me when the Congress reassembled in regular session in January, 1938. I recommended, for example, that new tax legislation was necessary—first, to prevent continued tax evasion by some few individuals and corporations; and, second, to make sure that the principle of ability to pay was not violated by the tax structure.

"I also called attention to some of the grave social abuses which had grown up in the use of capital—not all capital, but in a limited portion thereof. In other words, I made it clear that what I was attacking was not business in general or all business practices, but certain clearly wrongful business practices which were ruinous to the rest of the economic system of the country. I pointed out that, in addition to tax avoidance, these practices included: excessive capitalization, continued write-ups of investment values, security manipulations, collusive bidding and price rigging, high-pressure salesmanship which creates cycles of overproduction and recessions in production, the use of patent laws for monopolistic purposes, and unfair competition.

"I also called attention to the unfortunate practice of industry to move from one locality or region of the country to another—in an effort to find the cheapest possible wage scales, or in order to intimidate local and state governments from the passage of progressive legislation for the protection of labor.

"Above all, I stressed the grave danger and serious problems which had arisen, and which always arise, out of the growing concentration of economic power, involving, as it did, the control by a relatively few men of other people's money, other people's labor, and other people's lives.

"Many of the great measures debated in 1937 and 1938—farm legislation, reorganization of government, minimum wages and maximum hours, increased public works, monopoly controls, judicial reforms, water-power development, low-cost housing—have, by now, become more or less accepted as part of our economic life. It is a little difficult, therefore, to look back even across the short period to 1938 and remember how bitter and how difficult was the struggle—in the Congress and out of the Congress—which was necessary in order to have some of these laws adopted. The opposition to them—chiefly from the same sources which had opposed the whole program of reform since 1933—developed into 'blitzkrieg' proportions. Misrepresentation as to motives, and falsehoods as to objectives and results, became common practice, especially in the columns of some of the large newspapers."

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Feature:

Remember Walther Rathenau
by Lyndon H. LaRouche, Jr.
June 10, 2005
Today, the echo of the July 24, 1922 assassination of Germany's great industrialist Walther Rathenau once again reverberates in leading events of today's world history. Once again, today, as then, terror chills the will-power of prominent statesmen shuddering in fear of those malignant financial powers behind the scenes, powers which would once again arrange the assassination of any political or kindred leading figure who gets in the way of current plans to loot the pensions and other instruments of the general welfare of the peoples of the world, as the murder of Walther Rathenau and other veterans of the Rapallo negotiations was unleashed in waves following the April 10, 1922, so-called Rapallo Treaty adopted at Genoa, Italy.

  • Helga Zepp-LaRouche: What Germany Needs Now!
    In the event that on June 13, German Federal Chancellor Schröder fails to announce a substantial change in his economic policy, Helga Zepp-LaRouche, chairwoman of the Civil Rights Movement Solidarity (BüSo), intends to announce her own candidacy for the office of Chancellor of Germany. In the following statement, she explains why:

New GM Mass Layoffs Mean Auto Is Falling Fast
by Richard Freeman
General Motors CEO Rick Wagoner effectively announced on June 7 that GM senior management intend to liquidate GMas a functioning enterprise in the United States; Wagoner told a stockholders meeting that he will oversee the elimination of 25,000 additional hourly UAW production workers' jobs, accompanied by the closure of an unspecified number of production facilities—probably seven—all by 2008. Given the speed with whichGMis being dismembered, manyof these cuts in production and employment will occur in the immediate future. And Wagoner's June 7 announcement must be taken as the bare minimum GM intends to cut, on Wall Street demand.

'Enron Accounting' and Dereg Kill Pensions
by Paul Gallagher
The ugly face of the U.S. corporate pensions collapse was exposed in the United States Senate on June 7: The head of the retired airline pilots' association explained why he's getting a pension of $205/month after 26 years flying for TWA; and the flight attendants' union leader, Patricia Freund, testified that most of her members will receive less than half of their contracted pension benefits, because of bankrupt United Airlines' dumping of its pensions on the Federal Pension Benefit Guaranty Corporation (PBGC). Many of those employees, having already 'given back' large chunks of their wages, will have to stay in airline work to age 65 or older. The spectacle of life-long skilled employees retiring on the equivalent of a welfare check (plus their Social Security benefits, fortunately), shows the severity of the rapidly worsening pensions crisis.

Hedge-Funds Crisis Breaks Into the Open
Since the May 5 downgrade of General Motors' and Ford's corporate debt to 'junk' status by Standard & Poor's, the signs of a catastrophe in the hedge-funds markets has exploded into public view. Hedge funds are a form of mutual fund for the super-rich, which are permitted to engage in aggressive speculative activities prohibited to ordinary mutual funds; a substantial amount of betting in derivatives is done through hedge funds, with no government regulation whatsoever. An estimated $2 quadrillion in derivatives is traded per year— although nobody really knows the full dimensions of this house of cards.

Real Estate Bubble Brings 'Depression' Foreclosures
by Michele Steinberg
One of the great nightmares of the 1930's Great Depression— sheriff's sales and home foreclosures—has returned to the United States with a vengeance, while George W. Bush touts his 'ownership society,' and brags that the number of new homeowners is the highest in American history. Indeed, the National Association of Realtors reported that in April 2005, the sales of existing homes reached an all-time record—but, so did the number of foreclosures. According to RealtyTrac(R), which publishes a monthly report on foreclosures, the April number hit a new high, rising 2.6% over March, which had itself increased 17% over February.

Pentagon's Hiding of BRAC Data Intensifies the Base-Closing Fight
by Carl Osgood

While Pentagon officials are running around the country promoting the 'economic opportunities,' of the current proposed rounds of base closings, local communities, their elected officials, and many members of Congress from both parties are digging in their heels for a difficult uphill battle to stop the plan.

  • The Major Bases To Be Lost in Rumsfeld's Plan
    by Marcia Merry Baker

    The map and the profile below identify the 33 military installations having the highest 'economic replacement value,' out of the 180 bases and other facilities targetted for closing in Defense Secretary Donald Rumsfeld's Base Realignment and Closing (BRAC) plan, currently being fought by affected states and communities, and by members of Congress of both parties. These 33 facilities are slated by the Pentagon for either total shutdown, or some more partial 'realignment.'

International:

'X Committee' Out To Blow Up Southwest Asia
by Jeffrey Steinberg
A number of well-informed sources in Israel, the U.S.A., and the Arab world have warned this news service of growing evidence that a 'silent preparation for war' is now under way in Washington and Tel Aviv, which could blow up Southwest Asia in the immediate weeks ahead.

Israeli Computer Spying Linked to 'X Committee'
by Edward Spannaus

A computer espionage scandal with ties into the United States and Britain is wracking Israel, with top executives from a number of major Israeli companies, and employees from three private detective agencies, having been placed under arrest. The probe centers on the use of 'Trojan Horse' computer software to spy on other companies and to steal secret computer data from them.

Science in Russia: Alive, But Malnourished
by Jonathan Tennenbaum
On May 16-18, the Vernadsky State Geological Museum, located across from the Kremlin in the center of Moscow, hosted a remarkable conference entitled 'Science and Our Future: Ideas to Change the World.' The conference, the second yearly event of this kind, brought together 65 Russian scientists and research workers from a wide spectrum of fields of research, ranging from geology and geophysics, biology and medicine, theoretical physics and engineering, to areas related to improving the living conditions and infrastructure of human populations. And, indeed, several of the ideas, discussed during the three days of sessions, do have the potential to change the world in a significant manner.

Luis Posada Carriles Gives the Lie To George Bush's 'War on Terrorism'
by William F. Wertz, Jr.

Immediately after Sept. 11, 2001, President George W. Bush righteously threatened any nation that 'harbored terrorists.' But now, EIR investigations show that the Bush Administration itself is harboring a nest of terrorist assassins in Jeb Bush's Florida—foremost among them being the Cubanborn operative Luis Posada Carriles, whose career in terrorism and intelligence 'black bag jobs' spans more than four decades.

Uganda Is President Museveni Losing U.S. Support?
by Lawrence Freeman

For almost 20 years, since President Yoweri Museveni emerged from 'the bush' to take dictatorial control of Uganda, he has received unwavering support from the principal Western political and financial institutions centered in the United States and the United Kingdom. At a June 2 forum in Washington, D.C., entitled, 'Uganda: An African 'Success' Past Its Prime,' two speakers not representing any policy institution, presented detailed criticisms of the Museveni regime, for the first time in a significant public forum outside of those organized by the LaRouche movement. Although it is not yet known for certain, if this portends a major policy reorientation, at the very least it shows signs of a reversal of a decade's long 'love affair' with Museveni.


The LaRouche Show:

Helga Zepp-LaRouche: We Are In a Pre-Revolutionary Period
Helga Zepp-LaRouche is the chairman of the Civil Rights Movement Solidarity party (BüSo) in Germany, and the founder of the Schiller Institute—as well as being the wife of EIR Contributing Editor Lyndon LaRouche. On June 4 she was the guest on The LaRouche Show, a weekly Internet radio program that airs on Saturdays from 3:00-4:00 p.m. Eastern Time.

  • A New Bretton Woods Now!
    Here is the petition which Helga Zepp-LaRouche issued in April, which is gathering international support. The full list of signers can be found at www.bueso.de.

National:

ON THE NORTH KOREA FLAP
But, Gentlemen, Our Presidency Is, After All, Collectively Insane...
by Lyndon H. LaRouche, Jr.
June 5, 2005
The implication of the recorded CNN interview of the Cheney pair with Larry King, is that the collective George W. Bush Administration has gone beyond 'nuts,' to wildly, dangerously insane. When the outbursts of Lynne Cheney and her snarling yard-dog, the President of Man-de-villain Vice, are read against the background of the Atlantic Monthly's current report of a war-game simulation on the subject of U.S. nuclear war with North Korea, and when this wild-eyed behavioral pattern is compared with the sheer lunacy of the Bush Administration's response to the conditions of the presently onrushing general economic collapse of the world's present monetary-financial system, we are confronted with a constitutional crisis consistent with the nightmarish image of Mrs. Laura Bush approximating the role of 'Mrs. Woodrow Wilson' in her husband's second term.

Detroit City Council Calls for Retooling Bankrupt Auto Sector
The Detroit City Council on June 8 passed a resolution calling upon Congress to intervene on an emergency basis to save and retool the nation's bankrupt automobile sector (see text, below). The collapse of auto has reduced the former 'Motor City' to a catastrophic fiscal crisis. According to the Council's May 2005 budget report, the city's budget problem has been 50 years in the making, and the GM and Ford crisis, as well as Bush's Iraq War, will only worsen the situation.

Interview: LaMar Lemmons III
Retool Auto Industry To Solve Detroit Crisis
LaMar Lemmons III, a Democrat, represents District 3 in the Michigan House of Representatives, which lies in the heart of the city of Detroit. On May 18 he introduced House Concurrent Resolution 0013 (2005), joined by 19 other representatives, calling on the U.S. Congress to intervene to rescue the automobile industry now facing imminent bankruptcy.

How FDR Battled the 'Tories' To Protect His New Deal Policies
by Pamela Lowry

On June 3, 1937, President Franklin Roosevelt recommended to Congress that it pass legislation providing for Federal planning and development of the nation's natural resources, and that this comprehensive effort be coordinated by seven regional authorities. This was not a mere academic proposal for better administration—it was part of Roosevelt's knockdown, drag-out fight in 1937 against the Tory faction, which wanted to stop the New Deal programs and go back to laissezfaire, free trade, and unregulated speculation.

Economics:

Debate in Europe Intensifies Over Future of Euro Currency
by Andrew Spannaus
The future of the European common currency, the euro, is now being openly questioned, after the bombshell of the French and Dutch votes, May 29 and June 1, respectively, against the European Constitution. After years in which serious debate over the European Union's economic policy has been virtually prohibited, a public backlash is becoming an explosion, and certain political forces have begun to suggest that the euro could actually fall apart.

France's New Leaders Ignore Popular Mandate To Reject Globalization
by Christine Bierre
Friedrich Schiller, the great poet and Republican of the 18th Century, said that three elements are necessary to make world-historical changes: the right historical moment, ideas of universal import, and world-historical personalities with the courage to brave opposition in order to carry them out. On May 29, the French population rose to the occasion, and on a silver platter, served its leaders the historical context for making sweeping changes for the better. The resounding 'no' to the European Constitutional Treaty, after months of intense political debate, gave President Jacques Chirac a golden opportunity to announce fundamental changes in the economic policies adopted by France and the European Union, since the turn toward free-market globalization, away from the FDR-inspired Bretton Woods system of the postwar era.

Start Now Building 28 U.S. Nuclear Plants!
by Marsha Freeman
Forecasts for this Summer are that entire sections of the United States, particularly the West and East coasts, will likely experience brownouts and blackouts, because of shortages of electricity. If millions of manufacturing jobs had not disappeared over the past 30 years, capped by tens of thousands of layoffs recently announced in the automobile and related machine-tool industries, this country would have already reached Third World conditions, where electricity is rationed and available for only a few hours per day.

  • Nuclear Plant Designs Ready To Be Built Now
    by Marjorie Mazel Hecht
    For an industrial nation that has a large demand now for electric power, 600to 1,300-megawatt advanced standardized nuclear power plants are the most efficientway to go. Three standardized U.S. designs for advanced nuclear plants are approved by the U.S. Nuclear Regulatory Commission (NRC), and ready to be built: the Westinghouse AP-600 and AP-1,000 and the General Electric Advanced Boiling Water Reactor (ABWR). Another plant design, the ABB System 80+ (designed by a company now also owned by Westinghouse), is also certified.
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