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

Published: Tuesday, Oct. 11, 2005

Volume 4, Issue Number 41
*Sponsored and paid for by LaRouche PAC

This Week You Need To Know:


THE GREAT CRISIS OF 2005

End-Game 2005
by Lyndon H. LaRouche, Jr.

October 6, 2005
It may now be said, that the great End-Game of 2005 had already begun in October 1987, when the U.S. was struck by the great new, 1929-style New York stock-market crisis. The incoming, new Federal Reserve Chairman Alan Greenspan said, in effect: "Hold everything until I come on board."

Now, that inflationary cycle, which was launched by Greenspan then, is coming to an end. This cycle, which has recently, already entered its hyperinflationary phase in the market for primary commodities, will be the greatest international, hyperinflationary, financial-monetary collapse in modern history, unless U.S. and other policies are suddenly changed radically from the U.S. trends of the past thirty-five years.

I know; I speak with the authority of one who, on the public record, has been the most successful of the publicized long-range economic forecasters since the 1960s. Look at some highlights of that heavily documented record....

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The Economy

World and Nation-State
Proposed Rail Development Corridors in the Indiana-Ohio-Pennsylvania Industrial Belt

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Sept. 3, 2005
"LaRouche Addresses Urgent Changes in Economic and Monetary Policy"
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June 16, 2005
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This Week in History


Columbus Day, 1944

October 11-17, 1944

President Roosevelt Tells Latin American Diplomats About the New Age of Discovery They Helped To Build

President Roosevelt chose Columbus Day in 1944 to show the representatives of the Latin American republics how the Good Neighbor policy and the wartime hemispheric defense policy were about to be extended to the whole world as the basis for the new United Nations Organization. In his 1933 inaugural address, Roosevelt had declared that "In the field of world policy I would dedicate this Nation to the policy of the good neighbor—the neighbor who resolutely respects himself and, because he does so, respects the rights of others—the neighbor who respects his obligations and respects the sanctity of his agreements in and with a world of neighbors."

But the American isolationists, and the emerging fascist movement in Europe, had prevented him from implementing his plan across the Atlantic, so Roosevelt built a model of cooperation on a smaller scale—with the sister republics of Latin America. Roosevelt abhorred colonialism, and followed a policy of non-intervention in Latin America, backing up his policy with concrete actions.

Cuba was still a U.S. Protectorate in 1933, and when the Cubans overthrew their government and disorder reigned in the streets, everyone expected the American military to land, as it had done in the past. But Roosevelt called in the envoys from Argentina, Brazil, Chile, and Mexico to assure them that the warships which he did send to Cuba were only there to evacuate the Americans, which they did. Then he ended the protectorate. The next year, FDR brought the last Marines home from Haiti, which had been occupied by the U.S. since the Wilson Administration. Roosevelt also renegotiated the Panama Canal arrangements with Panama, and refused to collect monies from the Latin American nations on behalf of American bondholders and oil companies.

When Secretary of State Cordell Hull attended the Seventh International Conference of American States at Montevideo in December of 1933, he laid the basis for a reciprocal trade program. In June 1934, Congress passed enabling legislation to expedite imports of tropical products and raw materials that the U.S. did not produce, in return for sales to Latin America of manufactured goods.

By 1936, Roosevelt was convinced that the fascist takeovers in Europe would lead to war, and he therefore took major steps to secure the American continent. He called for an inter-American meeting in Buenos Aires, and travelled to Argentina to personally keynote the conference. There, he stated that the role of the democracies must be to consult with each other on their mutual safety against aggressors, to raise their living standards, to promote social and political justice, and to exchange both commodities and ideas with other nations.

Out of that conference came a number of treaties and bilateral agreements on security, promotion of trade, and cultural exchange. For his part, Roosevelt directed that U.S. orders for raw materials should be directed to Latin America in order to support its developing economies.

Once the Munich agreement betraying Czechoslovakia to Hitler was signed in the fall of 1938, Roosevelt knew America was running out of time. In December, he sent Secretary Hull to Lima, Peru for the International Conference of American States, and included Alf Landon, the Republican Presidential nominee for 1936, in the delegation. The resulting Declaration of Lima provided for consultation in case of a threat to the security of any member nation.

When war broke out in Europe in 1939, trade between the U.S. and Latin America increased enormously. Roosevelt estimated that Latin America had lost 40% of its export trade due to the war, and he attempted not only to remedy the situation, but to greatly strengthen the Central and South American economies. In July 1940, the President asked Congress for legislation to allow the Export-Import Bank to increase its lending authority. The resulting measure led to credits for the central banks of Argentina, Brazil, Chile, Colombia, Ecuador, Panama, Costa Rica, Peru, Uruguay, Venezuela, and the Dominican Republic. Loans were approved "to finance the purchase of commodities, machinery, and services required in connection with the development of these countries, such as steel mills, railroad improvements, highways, and industrial purposes."

Now that France and the Netherlands had been overrun by the German Army, and Great Britain was being attacked, there was great danger that the European powers' defeat would mean that their possessions in the Western Hemisphere would be taken over by Hitler's Germany and used as bases. President Roosevelt therefore called for a Pan-American Conference in Havana in the summer of 1940, and the resulting Act of Havana sufficed to empower the United States to seize islands where there was a change of sovereignty, or the threat of indirect control by an Axis power. That power never had to be used.

In the fall of 1940, Hitler asked his staff to draw up plans to seize Atlantic islands as a first step toward invading Latin America. There was also the threat posed by Vichy-held Dakar in French West Africa, the westernmost African port which could serve as a base to invade Brazil.

It was attacked unsuccessfully in 1940 by General de Gaulle with British backup, and did not enter the Allied camp until December of 1942. But the foremost threat was Nazi fifth column activity in Latin America, which actually did aim at an attack on the U.S. through Mexico.*

To counter these possibilities, Roosevelt had the Chiefs of Staff of both the Mexican and Canadian military establishments come to Washington to participate in joint defense studies. The President also sent FBI teams to Latin America to train their police and army in tracking down fifth columnists and saboteurs.

During the course of World War II, the Latin American republics, with the exception of Argentina, cooperated with the United States against the Axis. In September 1943, Roosevelt reported to Congress that "The policy of Good Neighbor has shown such success in the hemisphere of the Americas that its extension to the whole world seems to be the logical next step."

Thus, Roosevelt addressed the Chiefs of Mission of the Latin American republics on the occasion of Columbus Day in 1944: "Today is the birthday of the new world. The peoples of the American Republics are joining in paying tribute to the courage and vision of Christopher Columbus, whose name we honor and whose adventurous spirit we perpetuate.

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LaRouche on 'America AM'

'We Don't Have a Government Willing To Do the Job'

Lyndon H. LaRouche, Jr., was interviewed Oct. 5 by Henry Raines on America AM, broadcast over air on WWPR-AM, and also streamed over the Internet. WWPR is based out of Bradenton, Florida with an audience in the Brandenton-Sarasota-Tampa Bay area of Florida's West Coast. Raines was joined by Manatee County Democratic Party Chairman C.J. Czaia, and aired all the commercials before LaRouche went on air, in order to have an uninterrupted interview.

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InDepth Coverage

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Links to articles from
Executive Intelligence Review,
Vol. 32, No. 40
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Economics:

THE GREAT CRISIS OF 2005
End-Game 2005
by Lyndon H. LaRouche, Jr.

October 6, 2005
It may now be said, that the great End-Game of 2005 had already begun in October 1987, when the U.S. was struck by the great new, 1929-style New York stock-market crisis. The incoming, new Federal Reserve Chairman Alan Greenspan said, in effect: 'Hold everything until I come on board.'

A New LTCM Is In the Making
by Lothar Komp

Seven years ago, the world financial system stood directly on the edge of collapse.On Sept. 23, 1998, the NewYork Federal Reserve called the heads of the 16 largest banks of the world together, overnight, in order to start an immediate joint rescue operation for the already sunk hedge fund, Long-Term Capital Management (LTCM). LTCM had come to this point by transforming around $3 billion in investment capital, into $100 billion in bank credit, and then issuing further financial bets with a nominal value of at least $1.2 trillion. Other estimations of the derivatives obligations of LTCM place them at up to $3 trillion.

A Delphi Bankruptcy Threatens To Trigger a Pension Blowout
by Paul Gallagher

The U.S. news media are consumed with accounts of many tens of thousands of Americans filing for bankruptcy in the last days before a new, more stringent Federal bankruptcy law takes effect Oct. 17. But those Americans, according to one recent University of Pittsburgh study, have an average personal income below $25,000 a year, and credit card debt alone greater on average than the worth of their total assets, other than a home. The flood of filings is concentrated in the collapsed industrial heartland states of the Midwest; it simply shows the growing poverty and debt burden of the working population. With the ongoing collapse of real wages and explosion of household debt, these bankruptcies, only slightly accelerated, were a matter of time.

Fuel Spikes Trigger Contraction of Airlines
by Paul Gallagher and Anita Gallagher

Since simultaneous bankruptcy filings by Delta and Northwest Airlines on Sept. 14, continuing price spikes in jet fuel have triggered a wave of contractions in U.S. domestic air service—called 'temporary,' but more likely to intensify and spread, as inflationary shocks buffet the airlines and other transportation industries.


Feature:

Lyndon LaRouche Says: Cheney Must Go Now!
by Jeffrey Steinberg

Just days before his widely anticipated Oct. 12 international webcast, Lyndon LaRouche issued a call for the immediate removal of Vice President Dick Cheney from office, 'for the good of the country and the world.' LaRouche's call for Cheney's ouster came in the context of reports from senior military sources that the U.S. and British occupation of Iraq 'has already been defeated,' and any prospect of averting a new Thirty Years War engulfing the entire Southwest Asian region requires a demonstrable change in policy and leadership in the United States. That change, LaRouche insisted, must start with the Vice President stepping down.

  • Let Cheney-Bush Go Quietly Now
    The Lyndon LaRouche Political Action Committee issued the following statement on Oct. 2.
    Suddenly, recently, the White House Cheney-gang seemed to shift away from their lust for an immediate attack on Iran to target Syria. Then, the answer became clear, in Defense Secretary Rumsfeld's fit of hysteria at the blackboard, as Rummy attempted frantically to deny the rapidly deteriorating position of the U.S. military forces in Iraq. An attack on Syria would be an obvious cover for a desperate attempt to allow the U.S. forces to shoot their way out Iraq...

'The Greatest Strategic Disaster in U.S. History'
by Michele Steinberg

Eyewitness reports from U.S. soldiers returning from Iraq, as well as from exiled Iraqis who have just visited Baghdad after many years, establish, without question, that the United States must immediately initiate the process to leave Iraq now— while such an exit is still possible. The only question remaining, one retired Special Forces officer told this news service, is whether the United States can 'walk out of Iraq,' or whether it has to 'fight its wayout.'

Will There Be an Iraq?
by Hussein Askary

A closer look at the situation in Iraq during a recent visit to the region filled me with the fear and anxiety that the Iraq that I once knew, from my childhood to adult years, is no longer the same, and could become something else other than an Iraq. Iraq today is a divided nation physically and mentally. Civil wars, not only one civil war, are now an immediate and live threat. Iraq's different provinces are not run by 'the government,' but by different sectarian and ethnic militias that are fighting for dominance against both organized crime gangs and militant groups—whether part of the 'Sunni' insurgency or newly created terrorist groups—and against the U.S. and British troops.

  • Documentation
    Southwest Asia: The LaRouche Doctrine
    by Lyndon H. LaRouche, Jr.

    The statement excerpted here was released by the LaRouche in 2004 Presidential campaign committee on April 17, 2004.
    On the War . . . "The immediate subject ofmypresent policy-statement here, is the task of successfully and quickly extracting U.S. military forces back to safety, out of the hopeless Hell-hole of the presently disintegrating U.S. military occupation of Iraq. .."

National:

Senate Defies Cheney, Passes Anti-Torture Measure
by Edward Spannaus

In an overwhelming—and thoroughly bipartisan—rebuff of Dick Cheney and the White House, 90 U.S. Senators, including 46 Republicans, voted to reiterate the U.S. ban on torture, and to establish uniform standards for the treatment of prisoners in the war on terrorism. In adopting the anti-torture amendment on Oct. 5, the Senate defied a threat of a Presidential veto which had been delivered personally by Vice President Cheney, who had claimed that any assertion of Congressional authority would 'interfere' with the President's conduct of the war on terror.

LaRouche on 'America AM'
'We Don't Have a Government Willing To Do the Job'

Lyndon H. LaRouche, Jr., was interviewed Oct. 5 by Henry Raines on 'America AM,' broadcast over air onWWPR-AM, and also streamed over the Internet. WWPR is based out of Bradenton, Florida with an audience in the Brandenton-SarasotaTampa Bay area of Florida's West Coast. Raines was joined by Manatee County Democratic Party Chairman C.J. Czaia, and aired all the commercials before LaRouche went on air, in order to have an uninterrupted interview.

Documentation
LaRouche's 1988 Forecast Of German Reunification

On Oct. 12, 1988, Lyndon LaRouche announced the impending collapse of the Soviet system, a collapse which he said would begin soon in Poland and would lead to the restoration of Berlin as the future capital of Germany. Not one leading figure of the world agreed with LaRouche then; but it happened the next year. The following is the text of his speech at a press conference at West Berlin's Kempinski Bristol Hotel. He was at the time an independent candidate for the Presidency of the United States.

With a Blunt Instrument
by Anton Chaitkin

Rep. Roy Blunt (R-Mo.) has not yet summoned the nerve to move into the perhaps haunted office-suite of the House Majority Leader, in the second week after Blunt's appointment to replace Tom DeLay. Tom 'The Hammer' DeLay was indicted on Sept. 28 and again Oct. 3, charged with conspiracy and money laundering, for channeling $190,000 in corporate political donations to the Republican National Committee and back into Texas state election races, thus apparently trying to hide the origin of contributions illegal in Texas.


International:

One Thing Clear in Germany: Less Merkel, More FDR Needed
by Rainer Apel

The Oct. 2 vote in the Dresden-I district completed the national election in which the other 248 districts had voted on Sept. 18, but the election result is still as inconclusive as it was before the Dresden vote. Although the candidate of the Christian Democrats (CDU) won the direct mandate in Dresden district 160, the Social Democratic Party (SPD) of Chancellor Gerhard Schro¨der won the vote for party slates. This party vote is the so-called 'second vote' that every German voter has, in addition to the district vote.

Quo Vadis Germany?
For a New Atlantic Alliance in the Tradition of FDR
by Helga Zepp-LaRouche

This statement was issued by the chairwoman of the Civil Rights Movement Solidarity party (Bu¨So) on Oct. 6, following the election in Dresden.

Interview: Prince El Hassan bin Talal
U.S. Can't Ignore Arab-Israeli Conflict

His Royal Highness, El Hassan bin Talal, was born in Amman, Jordan, on March 20, 1947, the youngest son of Crown Prince Talal bin Abdullah (later King Talal) of Jordan, and is the younger brother of the late King Hussein of Jordan. He was educated in Britain, and has been deeply involved in humanitarian and social projects aimed at resolving the Arab-Israeli conflict and in improving the economic and social standard of living for all peoples in the region. Prince El Hassan bin Talal gave an interview to EIR's Bill Jones and to two other newspapers on Sept. 28, following his presentation at the Dwight D. Eisenhower National Security Conference, an annual event sponsored by several Washington based foreign policy think-tanks and the Department of the Army.

Ganging Up On the IMF: Will Ibero-America Get It Right?
by Dennis Small and Gretchen Small

On Oct. 23 of this year, two decisive votes will take place in South America's Southern Cone. On that day in Argentina, mid-term congressional elections will put to the test President Ne´stor Kirchner's political mandate in his battle against the International Monetary Fund and the international financiers' vulture funds. And on that same day, Brazil will become the first country in the world to hold a national referendum on whether the sale of all types of guns should be banned for everyone except the police and military.

  • Documentation
    'To Change Brazil'

    These are excerpts taken from To Change Brazil, a program of government issued by the PMDB party of Brazil in August 2005. It was drafted by a team of economists led by Dr. Carlos Lessa, the former president of Brazil's National Economic and Social Development Bank (BNDES).

LaRouche: Duhalde Is the Sancho Panza Of the Southern Cone
This statement was issued by the LaRouche Youth Movement in Mexico and the Ibero-American Labor Committees on Oct. 5, 2005.
Argentine President Ne´stor Kirchner's government has just called for a New Bretton Woods to replace the IMF system— and guess who is attacking him in response? It's a situation that the great Miguel de Cervantes would have understood perfectly.


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LaRouche: `The Immortality of Martin Luther King'

Lyndon H. LaRouche, Jr.

speaks to the Martin Luther King Day Prayer Breakfast in Talladega County, Alabama on Jan. 19, 2004

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