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.
During the Spring and early Summer of 1987, in repeated, public announcements as a Presidential candidate, I had forecast the near inevitability of a major New York stock-market crash at some point during the first two weeks of the coming October, just as I had forecast the virtual inevitability of the 1971 crash of the U.S. dollar under President Richard Nixon, and had warned, beginning 1979, of the threatened inevitability of the process which led into the conditions of the 1987 New York stock-market crash. Similarly, in February 1983, I had warned the Soviet government's "back-channel" representative that its economy would collapse "in about five years," if it rejected the policies which President Reagan was to name, the next month, as the U.S. Strategic Defense Initiative (SDI). When I forecast medium-to-long-term things like that today, serious economists listen respectfully, whether they agree entirely, or not....
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.
RAINES: Well, perhaps George Bush had the wrong plan at the wrong time, but we have a distinguished gentleman joining us who does have a plan: Mr. Lyndon LaRouche, Jr. is a well-known defender of justice and civil rights. He's an internationally known economist, author, and statesman. He is an architect of an emerging new economic order, modelled on the Bretton Woods system developed by Franklin Roosevelt. He has been a controversial figure in the past, including his efforts to destroy the international drug trafficI think that is referring to the Iran-Contra era, and the drug-smuggling that went on there. And he currently has campaigned to force the resignation of Vice President Richard Cheney. Mr. Lyndon LaRouche, thank you very much for joining us on American AM.
LAROUCHE: It's fun to be with you.
RAINES: Yes. Well, before we get into the substance of some of the issues at hand, for our listeners that aren't familiar with Lyndon LaRouche or your organization, could you please just give us a quick synopsis of how you founded the movement, and a brief history?
LAROUCHE: Well, of course, my qualifications are largely [in] economics. I'm a physical economist; I'm a specialist in the areaactually the best at it, in this areaand the most successful long-range forecaster.
Among the other things which I'm taking up on Oct. 12th, again, is, I gave a forecast on Oct. 12, 1988 in Berlin, at the Bristol Kempinski Hotel. This was later rebroadcast as a televised broadcast, later that month in October, in the United States, as a national network broadcast: In which I forecast the impending collapse of the Soviet system; saying that it would start in Eastern Europe in the immediate period ahead; it would start in Poland, it would spread throughout Eastern Europe, and the Soviet Union. And the result of this would be the reunification of Germany, with the designation of Berlin to become, again, the nation's capital.
Now, this was not too popular, and was not believed. For example, the incoming President didn't believe it, that is, Bush 41. Most people in Germany didn't believe it. In France, they didn't believe it. In Britain they didn't believe it. But it happened!
So, I have a little reputation, not only in that case but others, for accuracy in forecastingwhich does not mean predicting, but it does mean defining the situation, which we're going to face and we will have to make decisions about....
complete interview, pdf format
InDepth Coverage
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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 servicecalled 'temporary,' but more likely to intensify and spread, as inflationary shocks buffet the airlines and other transportation industries.
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.
'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 groupswhether part of the 'Sunni' insurgency or newly created terrorist groupsand against the U.S. and British troops.
Senate Defies Cheney, Passes Anti-Torture Measure
by Edward Spannaus
In an overwhelmingand thoroughly bipartisanrebuff 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.
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.
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.
U.S. Economic/Financial News
The International Monetary Fund estimates that this year, oil exporters will earn $383 billion, nearly twice the previous (inflation-adjusted) peak of $197 billion in 1980. The oil majors, according to the Wall Street Journal Oct. 4, in an article headlined, "Oil Producers Gain Global Clout from Big Windfall," are "investing" their billions in the U.S., becoming the largest American creditors, outpacing China, Japan, and all of Asia.
Inflation's surface phenomenarising energy and commodity pricesare starting to worry some economists. An Oct. 3 Bloomberg wire headlined, "Inflation, Bottled Up by Fed, Threatens To Burst Its Container," quotes various economists' views on the Federal Reserve's 11 pronouncements this year that inflation is "well contained." Instead, they indicate, it is about to burst the bottle. "Rising energy costs are rapidly spilling over into the prices of everything ... and may accelerate throughout the economy," Bloomberg says. Hinting that all bets are off that the Fed would quit raising interest rates by the second quarter of 2006, the article notes that a just-released Bloomberg survey of economists found they now believe the Fed will raise the federal funds rate to 4.5% or even 5.5%. It notes that as early as Aug. 9, at the Federal Open Market Committee meeting, Fed policymakers warned that "energy price increases probably would feed through ... to the core measure of inflation."
Inflation risk is the "greatest" in the U.S., Bloomberg reports: "Crude-oil prices are up more than 40% since May. Gasoline prices have more than doubled since December 2001. Natural-gas prices have more than doubled since May. Ocean-freight charges are up more than 72% since early August. Utility rates have risen by 13% in 11 months." Bloomberg quotes a former Fed staff economist, Roger Kubarych, now at HVB America Inc., worrying, "The tremendous rise in all these costs has been steep enough and has gone on long enough that it's putting an awful lot of pressure on business costs." He pointed out that energy costs go through the economy faster now than a decade ago due to use of just-in-time inventory practices which rely on the fragile transportation system.
Meanwhile, the Cincinnati Enquirer reports that the energy price spike, hitting farmers in particular, will mean your Thanksgiving Day turkeys and Christmas trees may not be affordable.
As the shockwave of speculative energy prices propagates through the physical economy, Houston's Reliant Energy says it is now paying 50% more for natural gas than it did in December 2004, and is asking the Public Utility Commission to allow it to pass on this fuel increase to customers, a PRNewswire reported Oct. 3. The 14% increase would go into effect at the end of October. Texas, Florida, and California are dependent upon natural gas for a large share of their electricity production.
As the housing market "cools," home builders are dumping their own companies' stocks. Executives at the nation's largest home-building companies are selling their stock in their own companies, apparently getting out while the getting is still good, according to the New York Times Oct. 4. So far this year, nearly $1 billion worth of stocks in the 10 largest home-building companies has been cashed in by industry executives. Perhaps they've noticed what people trying to sell their grossly over-priced houses have noticed.
Previous "hot spots" in the bloated housing market are now seeing houses go on sale and stay unsold for months, until the price is lowered. In Manhattan, sales prices fell 13%; in Fairfax County, Va., the number of homes on the market in August rose by 50%, as people tried to off-load their white elephants; in the Boston suburb of Brookline, the inventory of homes for sale has also increased. The Times wonders whether this is a temporary "cooling off," or a more "pronounced downturn."
With no Federal aid forthcoming, New Orleans Mayor Ray Nagin announced Oct. 4 that 3,000 city employees had been laid off, because the city has no money to pay them. The Mayor stated that he would try to avoid reducing the number of public-safety and other essential workers. Local officials meeting in Baton Rouge with Louisiana Gov. Kathleen Blanco Oct. 3 said that they have no tax base left, with homes and businesses wiped out, and that Federal help is needed to avoid bankruptcy.
World Economic News
An expert in the avian flu who saw the globalized poultry operations in Southeast Asia, described to EIR Oct. 5, how the avian flu pandemic, now threatening the world's population, emerged from these ill-conceived and criminally mismanaged operations.
The veterinary epidemiologist said that the H5N1 pandemic was bred in some of the large-scale poultry operations introduced into Southeast Asian countries in recent years. (Thailand, for example, is now the fourth-largest poultry producer in the world.) Infected flocks should have been completely destroyed, but they were not. Once the virus spread beyond the big poultry operations to peasant flocks in Vietnam, the country completely lacked the infrastructure to deal with it.
The situation is now out of control, because the mutated strain of the virus has now re-infected the migratory wild fowl population, which has moved across Asia and is presently in Europe. Most of the 126 human cases to date have been among people with close contact with poultry. But each infection of a new animal is another opportunity for a mutation or reassortment of the virus to a form that is easily transmissible from human to human. Once that happens, the pandemic is on, in a world ill-prepared to deal with it. 1918 may look like a good year in comparison.
Like all type-A influenzas, the virus came from the wild-bird reservoir, where it had been relatively benign. Through contact of wild birds with some of the unprotected factory farm animals, the virus was able to mutate or reassort into a deadly form. The virus is passed through the intestinal tract to the feces where it maintains a deadly concentration. By sticking to clothing, footwear, truck tires and the like, it was moved to other poultry operations, including across borders, probably among Thailand, Vietnam, and China. The virus can live for up to a week on the outside. One Thai company with ties to agricultural cartels, CP Group, maintains operations in all three countries.
The veterinary expert said he believed there was also use of infected poultry as breeding stock, and that smuggled chickens played a part.
The virus re-infected the wild-bird population, and got out of control. At that point it became too late to control by killing off flocks. The Qinghai Lake, China outbreak among migratory fowl was the sign that it had gone out of control. The threat to European flocks is not controllable, and will become pandemic, he thinks.
United States News Digest
A group of senior House Democrats is calling on U.S. Attorney General Alberto Gonzales to investigate the interference by former lobbyist Jack Abramoff and Department of Justice officials with a criminal probe in Guam, and obstruction of a report to expose national security weaknesses in the Northern Mariana Islands after 9/11. The letter, dated Oct. 6, was submitted to Gonzales by Reps. George Miller (Calif), John Conyers (Mich), Nick Rahall (WVa), William Delahunt (Mass), and Madeleine Bordallo (Guam).
Miller's statement on the matter outlines the following issues to be investigated:
* The sudden demotion of Fred Black, U.S. Attorney for Guam and the North Mariana Islands, just after a Federal grand jury issued subpoenas in an investigation of Abramoff's dealings with the Guam Superior Court;
* Whether Abramoff, using connections to top DOJ officials, gained access to a classified immigration report concerning national security;
* Whether Abramoff attempted, using connections to top DOJ officials, to suppress the latter report concerning possible breach of homeland security due to weak immigration rules in the Northern Marianas.
Miller notes that "Abramoff was hired to protect his clients in the Northern Mariana Islands and Guam from investigations and from legislative reforms by the U.S. Congress," and that his clients were some of the most abusive garment manufacturers in the world, exploiting lax labor laws.
The lawmakers' letter to Gonzales notes that U.S. Attorney Black's replacement was someone recommended by the Guam Republican Party to White House Deputy Chief of Staff Karl Rove. It also raises the question of whether Abramoff's access to the DOJ classified report constitutes several violations of the Espionage Act. An Oct. 1, 2001 e-mail from Abramoff, attached to the letter, says that the Northern Marianas immigration matter was discussed in Abramoff's Redskins skybox with the chief of staff of the DOJ, and that he hoped to see the Attorney General [i.e., John Ashcroft] about it in the following week.
The Army Corps of Engineers' objective is to rebuild the levees around New Orleans only to category-three hurricane protection by the time the 2006 hurricane season begins, even though that's the level of protection that Hurricane Katrina smashed through in at the end of August. When asked why, Lt. Gen. Carl Strock, the chief of engineers of the Corps, explained, during an Oct. 6 press briefing at the Pentagon, that the Corps could only do what it is authorized by law to do, and the law only authorizes category-three protection.
"I'm not anti-war, I'm anti-failure," said one of six Iraq war veterans who are campaigning for Congressional seats in next year's elections, Associated Press reported Oct. 4. Bryan Lentz, 41, an attorney from Swarthmore, Pa., and an Army Reserves major who volunteered to go to Iraq with a civil affairs unit, continued, "We need to define what victory is, and we need to set a plan to get there," He is campaigning against the 10-term GOP Rep. Curt Weldon, vice chairman of the House Armed Services Committee.
Another lawyer, Patrick Murphy, who fought with the 82nd Airborne Division, and who is challenging first-term Rep. Mike Fitzpatrick, a Republican in northern Philadelphia's 8th District, said, "We need to have an exit strategy now."
This summer, Iraq War veteran and Democrat Paul Hackett nearly defeated Republican Jean Schmidt in a special election in a primarily Republican district in Ohio. Now, with the support of Senate Minority Leader Harry Reid and others, Hackett is seeking the Senate seat held by two-term Republican Mike DeWine.
David Ashe, who served as a Marine judge advocate in Iraq, is trying to unseat first-term Republican Rep. Thelma Drake in Virginia's 2nd District.
Lt. Gen. H. Steven Blum, the director of the National Guard Bureau, told a House Defense Appropriations subcommittee on Sept. 29 that the National Guard has an acute equipment shortage for responding to domestic assignments such as those in the Gulf Coast states following hurricanes Katrina and Rita. He said they lack radios, trucks, construction machinery, and medical gear because Guard units sent to Afghanistan and Iraq have taken with them the units' newest equipment, and left it there when they returned home. The Guard needs $7 billion to acquire these items; to immediately handle its current domestic-only deployments, it requires $1.3 billion. Under questioning by Rep. John Murtha (D-Pa) a former Marine who served in Korea and Vietnam, Blum replied, "I'm dealing with radios, sir, that you probably saw the last time you were in battle fatigues," i.e., dating from the 1960s.
Blum also testified that in 2001before Bush-Cheney warsthe Guard estimated it had 74% of the equipment it required at home, and at that time it was deemed sufficient, as the Guard was seen as a "strategic reserve" and would have time to acquire materiel in time of need. But the Sept. 11, 2001 attacks and Hurricane Katrina have shown that the Guard needs to be fully equipped and ready to deploy.
Senators Christopher Bond (R-Mo) and Patrick Leahy (D-Vt) added an amendment to the Defense Appropriations Bill adding $1.3 billion to replenish the National Guard equipment stocks, which passed the Senate on Sept. 28.
A Pentagon-mandated report on the Katrina response hits troop shortages due to the National Guard being in Iraq, and other gross planning failures across the board. The confidential report, covered in the London Independent Oct. 3, was prepared by Stephen Henthorne, a former professor at the Army War College, and now an advisor to the Pentagon, as well as deputy-director of the Louisiana relief effort. His conclusion: "Failure to plan, and train properly, has plagued U.S. efforts in Afghanistan, Iraq, and now that failure has come home to roost in the United States." The report adds: "The U.S. military has long planned for war on two fronts. This is as close as we have come to that reality since the Second World War: The results have been disastrous."
"Another major factor in the delayed response to the hurricane aftermath," says the report, "was that the bulk of the Louisiana and Mississippi National Guard was deployed in Iraq. Even though states have compacts with each other, pledging to come to the aid of other states takes time, money and effort to activate and deploy."
The reaction to President Bush's suggestion that the Federal government, especially the military, in the response to natural disasters, has been almost universally negative, crosses party, ideological, and institutional lines, as the following examples show:
* Senators Patrick Leahy (D-Vt) and Christopher Bond (R-Mo), the co-chairmen of the Senate National Guard Caucus, wrote in a Sept. 29 letter to President Bush that "The worst lesson to take away from recent natural disasters would be to alter our emergency management system in a fundamental way and change the presumption against using the military as the lead organization. Such a radical change would go against our Constitution, threaten civil liberties in emergency situations, and ignore the full capabilities of the National Guard."
* Gen. Richard Cody, the vice chief of staff of the Army, indicated during a press conference, on Oct. 3, that he sees no need to change the present structure. He said that providing support to civil authorities is part of the mission set of the Army. The National Guard is fully empowered to conduct state missions and when Federal forces are brought in, the powers exist to make the right decisions on how to use them. As for possible conflict with Posse Comitatus, "law enforcement is not our mission," he said.
* A front-page article in the Oct. 3 issue of USA Today is headlined: "Govs to Bush: Relief our job." The article reports, that of 38 state governors who responded to a request for their reactions to President Bush's call to have the Pentagon take the lead in responding to catastrophic disasters, only two backed the idea. Half said they were opposed, or had reservations, including the President's brother, Florida Gov. Jeb Bush.
* An Oct. 3 Heritage Foundation panel featuring speakers from Heritage, the Center for Strategic and International Studies, and Congress, was unanimous in its condemnation of Bush's proposal. When asked afterwards by EIR why they did not present an opposing viewpoint, as Heritage usually does, the organizer of the event explained, "We're completely against amending the Posse Comitatus Act."
* On Oct. 7, Rep. Ike Skelton (D-Mo), the ranking Democrat on the House Armed Services Committee, reported that Secretary of Defense Donald Rumsfeld told him that he has no plans to recommend to President Bush any changes in the Posse Comitatus law.
Though no official announcement has been made, yet, as to the final numbers, the Army finished Fiscal Year 2005, which ended on Sept. 30, about 7,000 soldiers short of its recruiting goal of 80,000. Gen. Richard Cody, the Vice Chief of Staff of the Army, told reporters on Oct. 3, on the sidelines of the Association of the U.S. Army annual conference, that this shortfall is forcing the Army to rely on stop loss in some military specialties much more than it would have otherwise, if it had made its goal. Stop loss is used to keep people in the Army past their contractual date of return to civilian life.
Ibero-American News Digest
Were Angela "Locust" Merkel to ever became Chancellor, German-Mexican relations might collapse. At the initiative of PRI Senator Adrian Alanis Quinones, on Sept. 27, there was a discussion on the floor of the Mexican Senate of Merkel's remarkable suggestion, published in her book, My Path, that if the United States wishes to pressure Europe to permit Turkey to join the European Union, it should first admit Mexico "as one of the states of the U.S. federation."
Alanis initially proposed that the Mexican Senate pass a resolution calling upon the Mexican Foreign Ministry to send a diplomatic note to Germany protesting Merkel's statement. While that step was not taken, members of the PRI, the PRD, and even from the PAN, protested her remarks on the Senate floor. PRI heavyweight Dulce Maria Asuri, a member of the Foreign Relations Committee, argued that the Mexican government should press German Chancellor Gerhard Schroeder for an explanation to Mexico of Merkel's remark. PRD Sen. Antonio Soto slyly suggested that in addition to any government protest, the PAN could use its excellent ties with right-wing parties and groups around the world to demand the neo-con Merkel explain herself. PAN Sen. Fernandez de Cevallos called her remarks crazy, saying no Mexican could accept such a barbarous proposal, but his fellow party member, Sen. Cesar Jauregui, defended Merkel on the revealing grounds what she really meant, was that the U.S. should permit Mexico to be an active member of the North American free-trade block!
La Cronica, in reporting the Merkel flak on Oct. 3, described Merkel's book, as "a kind of political testament which is reminiscent, at least in form, of Mein Kampf, which Adolf Hitler wrote in his day."
In a mass leaflet calling on Mexicans to listen to Lyndon LaRouche's Oct. 12 webcast, the LaRouche Youth Movement suggests smart Mexicans take courage from the Cheney-Bush meltdown in Washington, and change course.
"These developments in Washington are of the utmost strategic importance for Mexico, and other nations of Ibero-America. They open the door to saving our nations from otherwise assured destruction under the collapsing IMF system," the LYM leaflet states.
"U.S. statesman and former Presidential candidate Lyndon LaRouche explained: 'With the global financial system in a state of terminal collapse, neither the United States nor the rest of the world can survive much more of this Bush-Cheney fiasco.... The time has come to tell the President and Vice-President to go quietly, for the sake of the nation, and also, like Nixon, to avoid the legal consequences of continuing to attempt to 'tough it out'....
"What does this mean for us in Mexico and for Ibero-America? One thing it means is that Bush machine operatives such as Carlos Salinas de Gortariwho are run by the same bankrupt and desperate international financiers who control the Cheney-Bush governmentare living on borrowed political time. Those political candidates in the upcoming Mexican Presidential election who have struck a Faustian deal with Salinas and his mastersare there any who have not?would be smart to look a little more closely at what is happening in Washington. Their masters' political machine is disintegrating.
"It also means that, if Mexico is to reverse more than two decades of economic devastation under the policies of IMF looting and free trade, we must ally with the bipartisan political forces headed by Democrat LaRouche in the United States, to replace the entire defunct international financial system with a New Bretton Woods. The Kirchner government in Argentina has just added its voice to those internationallylike the Italian Parliamentcalling for a New Bretton Woods.
"As former Mexican President Jose Lopez Portillo stated in 1998: 'It is now necessary for the world to listen to the wise words of Lyndon LaRouche.' "
Mexico's infamous step-brothers, Andres Rozental and Jorge Castaneda, both made pilgrimages to Washington in the last three weeks. Castaneda, the former Foreign Minister turned political wannabe (his Presidential bid having fallen flat, he's now set his sights on becoming Mayor of Mexico City), snuck in and out of Washington quietly around Sept. 23, to brief a dinner of Wall Street heavies organized by JP Morgan, on his view of the state of Mexico and Ibero-America today.
Rozental, wearing his current cap as the head of the Mexican Council of Foreign Relations, was in town Oct. 6 and 7, to promote a new report, "The United States and Mexico: Forging a Strategic Partnership," co-authored by the Mexican Council on Foreign Relations and the Mexico Institute of the Woodrow Wilson Center. The report was presented officially to the U.S. Congress on Oct. 6, at an event held in a small conference room in the Capitol's basement, secured by Rep. Silvestre Reyes (D-Texas). Reyes, however, did not even stay for the presentation.
The report may be new, but the "strategic partnership" they are proposing is not: It comes down to Kissinger's old idea, which Mexico has resisted since President Jose Lopez Portillo, of handing Mexico's oil over to the oil cartels, under the cover of a free-market oil and gas alliance among the U.S., Mexico and Canada. Rozental cited the high price of oil as the latest motivation for this old policy. "The idea is to use the resource oil today, rather than keep it underground, because these high prices probably will not occur again," said Rozental. The Heritage Foundation's Stephen Johnson, invited to comment, was supportive of the initiative, but the other invited commentator, Peter Smith, professor of political science at the University of California in San Diego, noted that the proposal was part of the reforms imposed on Mexico "on the insistence of the international organizations," whose promises for solving poverty and backwardness have yet to fulfilled after two decades. The proponents of this latest scheme have yet to show people how their "oil partnership" would be any different, Smith remarked.
EIR's Dennis Small was on television in La Paz, Bolivia on Oct. 4 for over 90 minutes, on the "Bolivia Is Viable" show, hosted by Anibal Aguilar, and broadcast on University TV Channel 13. This was Small's third interview on that polemical program in the last few months. This latest program focussed on Lyndon LaRouche's analysis of the post-Katrina economic and political effects in the U.S. and globally, and the hope which Cheney and Bush's potential political demise opens up for Bolivia, and its desire to develop, finally, into an industrial state.
Small and Aguilar discussed the role of technology, President Franklin Roosevelt's successes, and the concepts underlying the American System of economics, in how to bring this about.
Bolivians, who got a taste of hyperinflation in the early 1980s, are frightened by LaRouche's shock-wave analysis of the hyperinflationary explosion underway globally. To provide the conceptual tools to understand LaRouche's analysis, "Bolivia Is Viable" showed EIR's now-famous schematic graphic of the plane breaking the sound barrier, as well as a brief video-clip of an actual supersonic jet which is visibly producing a conical shock front in the clouds it is moving through. In this context, the ongoing disintegration of the Bush-Cheney Administration in Washington, and what this means for nations such as Bolivia, and for avoiding the oligarchy's plan for permanent war in South America, were discussed.
Aguilar showed EIR's "Moon over Parana" map (see EIR Online #36, Sept. 6), and asked about the U.S. military base in Paraguay and the role of the Moonies in particular. He explained to his audience that Rev. Moon was anything but a Christian, showed a picture of Moon being crowned at some ceremony, noted that Moon had been involved with the Garcia Meza "cocaine colonels" coup in Bolivia in the early 1980s, and added that the Moonies were involved in various strategic ports in Chile. Small used the opportunity to review the role of Prince Philip's Worldwide Fund for Nature, along with the Moonies, in targetting the nation-state and deploying against development.
LaRouche's upcoming Oct. 12 webcast was repeatedly announced on the air, while the website address was shown on the screen.
Chile is using the funds from its exports of copper, whose price has increased due to wild hedge-fund speculation, to offset increases in gasoline, kerosene, and benzine pricesalso due to hedge-fund speculation! On Sept. 29, Chile's state oil company ENAP announced that, as previously indicated by President Ricardo Lagos, price increases for gasoline and other fuels wouldn't be as high as originally anticipated, thanks to the "stabilization fund" built up by revenues from Chile's large copper exports. Beginning Oct. 3, the prices for gasoline and other petroleum derivatives will increase by "only" between 19 and 25 pesos. The percentage increase for the cheapest kind of gasoline is 3.6% (or 19 pesos).
A Chilean trade union source commented to EIR on Sept. 30, that since the majority of Chileans are poor, any price increase will cause hardship.
Western European News Digest
The London Financial Times Oct. 1 reported on New York Times reporter Judith Miller's decision to testify before special prosecutor Patrick Fitzgerald's grand jury, and features an editorial, "Blow to the Hammer," which locates this in a long list of scandals around the White House, including the indictment of House Majority Leader Tom DeLay. The paper says this is the most dangerous of the scandals for the White House, and then poses the question: Will the Democrats seize this great opportunity, and come forward with "real alternatives" and a "powerful advocate" leading a "unified party"?
The London Times carries a full-page report the same day, titled: "Why Did Cheney Aide Stay Silent Over CIA Leak as Journalist Was Locked In Jail?" and the Guardian headlined its piece: "Cheney's Aide Revealed as Source of CIA Leak." They carry a profile of Lewis "Scooter" Libby, saying he "has been called Dick Cheney's Dick Cheney: a constant presence behind the scenes enforcing loyalty, providing the means to meet his boss's ends." The Guardian adds that Libby was key in compiling the case against Iraq for WMD, going to CIA headquarters at Langley with Cheney several times in 2002. Libby also "contacted the Pentagon before a substantial contract to repair Iraq's oil fields was awarded to Halliburton, Mr. Cheney's old firm." Finally, they note his having been groomed in Wolfowitz's Yale classes, before becoming one of the Vulcans.
The Sept. 30 London Guardian reports that British Nuclear Fuels Ltd (BNFL), which is government-owned, has drawn up plans to sell Sellafield and other major British nuclear plants to the private sector for more than 10 billion pounds. "American companies such as Halliburton and Fluor are seen as likely contenders in any race to take over British Nuclear Group," the main operating arm of BNFL, reported the Guardian. Chancellor of the Exchequer Gordon Brown, who has run up a huge deficit with New Labour spending, and of course the economic collapse, is very likely to approve such a selloff.
In a political earthquake, in the state elections in Styria, a heavily industrial region of Austria, the parties of Austria's neo-conservative governing coalition lost, combined, more than 16%, compared to the last elections.
For the first time ever since 1945, the People's Party (OeVP) of Austrian Chancellor Wolfgang Schuessel (who, in the recent German national elections, campaigned for Angela Merkel) lost its status as the biggest party in Styria, coming in with 38.7%, a loss of 8.6%, getting 24 seats. The "Freiheitliche" party (FPOe), which was recently split by its former chairman, neo-con loudmouth Joerg Haider, in order to preserve Schuessel's majority in the National Council, lost 7.8%, coming in with 4.6%, and was voted out of the state parliament. Haider's new party, the Alliance for Austria's Future (BZOe), fared even worse, coming in with 1.7%, the least of all parties running.
The big winners were the Social Democrats (+9.3%), who are now the biggest party, with 41.6%, getting 25 seats, and the Communist Part (KPOe), getting 6.3% (a gain of 5.3%) and four seats in the state parliament, becoming the third-biggest party. The Green Party stagnated at 4.7%, barely making it into Parliament, with three seats. One other list of a renegade OeVP Parliamentarian got 2.0%.
The result is a political earthquake, massively weakening Chancellor Schuessel. While it is very much in line with the recent German elections, where the parties representing the neo-liberal austerity policies were punished, it is even more devastating to the neo-con crowd, on both sides of the Atlantic, whom Joerg Haider represented in Austria.
Speaking during a meeting of the UMP group (French President Jacques Chirac's party headed by Nicolas Sarkozy), Prime Minister Dominique de Villepin stated that, "in the history of France, the only 'break' there was, was the French Revolution, and that ended up in blood. Never in history has this type of 'break' succeeded. We should mistrust our invented utopias," he added. Another UMP Deputy stated that Sarkozy "was pale" when hearing this. Villepin is referring to the speeches of Sarkozy, who is always raving in favor of a "break."
More than a million persons demonstrated Oct. 3 across France in about 150 towns and cities, in a national day of action and strikes organized by the six largest trade unions to "defend employment, buying power and the rights of employees in the public and the private sector." Some 150,000 demonstrated in Paris in one of the largest demonstrations in the recent period. More than 100,000 demonstrated also in Marseille, where a strong protest movement has developed against the government's attempt to privatize the public SNCM, a ferry company operating between Corsica and continental France.
Demonstrations were strong in many other cities, with 25,000 people participating on average in the larger cities. Public-sector employees were the main contingent, with significant representation from education, transportation, utility and postal workers.
Many private-sector employees also joined their public-sector colleagues, coming particularly from those companies threatened by outsourcing, such as Hewlett Packard, which just announced major layoffs, electronics companies, Airbus Industry, Ford, Renault, etc. The social climate is particularly tense in France due rising unemployment over the last couple of years, sharp drops in living standards provoked by massive inflation in the housing sector, and considerable rises in transport and utilities costs.
German Social Democratic Party vice chairman Kurt Beck, whose trip to Washington, D.C. for a German Unity Day event at the German Embassy Oct. 3 had been planned for some time, extended his visit to five days, and, according to the very sparse press reports available, he said that "the situation in Germany after the elections was at the center of discussions."
Beck met with President Bush at the sidelines of an event at St. Matthew's Cathedral in Washington; he met with Nicholas Burns of the State Department as well as James Baker III; Gen. (ret.) Joseph Ralston, and Senators John Warner (R-Va) and Chuck Hagel (R-Neb). Ralston, a leading U.S. military figure, had spoken out vehemently against the planning for the Iraq War in January 2002, warning against an "over-stretching of resources" after the Afghanistan operation.
The most paradoxical aspect of Beck's tour is that, being one of the leading Social Democrats, he would have been expected to meet with leading U.S. Democratsbut not even his staff back in Mainz (Beck is Governor of Rhineland-Palatinate) knows anything concrete.
Citing the U.S. STRATCOM's preemptive nuclear war doctrine, Richard Norton Taylor, the security correspondent of the London Guardian, writing in the Oct. 5 issue, called for Parliamentary hearings on British nuclear policy.
Taylor quotes directly from the "Doctrine for Joint Nuclear Operations," which was posted, and then withdrawn from the Pentagon website, where it states, that "U.S. forces are determined to employ nuclear weapons to prevent or retaliate against WMD (Weapons of Mass Destruction)." He writes that the document "significantly lowers the threshhold for triggering the use of nuclear weapons, notably America's 480 tactical nuclear bombs in Europe, including the 110 at the U.S. base at Lakenheath in East Anglia." After noting that "where U.S. nuclear policy leads, the UK generally follows," he calls for a Parliamentary debate on British nuclear policy, including whether any changes have taken place, and on the question of Britain's Trident ballistic missile submarines, which are up for replacement in the next decade. He warns that the British Defense Ministry refuses to answer any questions concerning this policy, saying that it is not in the "public interest."
Russia and the CIS News Digest
Writers in Russia have begun to point up "neo-Bolshevik" qualities in current U.S. policies. Columnist Igor Torbakov, in an overview published by Eurasianet.org on Sept. 28, cited recent articles by political scientist Boris Mezhuyev and by a former adviser to Mikhail Gorbachov named Alexander Tsipko (both of whom Torbakov oddly dubbed "arch-conservatives"). "The leader of the biggest world power has actually turned himself into a champion of world revolution," wrote Mezhuyev about George W. Bush, in an APN.ru commentary. Tsipko titled a recent article, "The Colored Revolutions, or the Revival of Bolshevism." He compared Bush with Lenin, with respect to "exporting revolution."
None of the commentaries cited by Torbakov touched on how today's "right-Synarchist" doctrines of permanent war, espoused by the neo-cons, are rooted in the "left-Synarchist" campaigns by Leon Trotsky and Alexander Helphand Parvus for "permanent revolution," 100 years ago. EIR of Sept. 23 (EIR Online #38, Sept. 20) presented that historical continuity in depth.
Russian President Vladimir Putin welcomed leaders from Central Asian countries to St. Petersburg on Oct. 6, for a two-day meeting of the Central Asia Cooperation Organization (CACO). Putin travelled to St. Petersburg from Moscow with Tajikistan's President Emomali Rakhmonov. Kazakhstan President Nursultan Nazarbayev was already in the northern Russian city. Uzbekistan's President Islam Karimov and Kyrgyzstan's President Kurmanbek Bakiyev also attended. CACO has been working, under various names, since 1998. Its recent sessions have focussed on cooperation in the areas of water and energy, food supplies and transport, as well as common anti-crime and anti-terrorism policies. Rakhmonov told the meeting that he and Putin, together with President Alexander Lukashenka of Belarus, were working to merge CACO with another post-Soviet association, the Eurasian Economic Community (YevrazES).
NTV television reported during the CACO summit (see above), that Russia was going to step up investment in the aluminum industry in Tajikistan, and to modernize one of that country's hydroelectric plants, even as the United States tries to court Tajikistan as a replacement military staging groundUzbekistan having kicked U.S. forces out of the base they were using there.
Other recent economic negotiations likewise reflect a concerted intensification of Russian activity in Central Asia.
* On Sept. 26, CEO Alexei Miller of the giant Russian company Gazprom signed agreements with officials in Uzbekistan, regarding the disposition of natural gas produced in there, as well as Turkmenistan's natural gas, which is transported across Uzbekistan. Gazprom is to invest $1.4 billion in Uzbekistan's gas pipeline system and development of two new gas fields, the latter on a production-sharing basis. According to Kommersant-Ukraine, Gazprom has now "spoken for" all the natural gas to be exported from Uzbekistan for the next five years, thus putting a crimp in Ukrainian hopes to arrange direct purchases of gas from Turkmenistan. Gazprom intends to triple gas prices for Ukraine on Jan. 1, 2006.
* The Eurasian Development Bank, created by agreement between Presidents Putin and Nazarbayev (of Kazakhstan), is going operational with initial capital of $1.5 billion. Two-thirds of that initial investment will come from Russia's state budget. According to Vedomosti, the bank is headquartered in St. Petersburg and Almaty and will invest in joint economic projects.
* Russia's largest oil company, LUKoil, will buy Nelson Resources Ltd., a Bermuda-registered Canadian company, operating in Kazakhstan. Vedomosti reports that financing will come from J.P. Morgan bank. Nelson Resources owns half of two Kazakhstan oil fields and has a joint venture with the Chinese National Petroleum Corporation (CNPC) for Caspian Sea oil development.
The Oct. 3-4 visit by Russian President Vladimir Putin to Brussels, and then to London for bilateral talks with Prime Minister Tony Blair and an EU-Russia summit meeting, produced no dramatic headlines. The EU-Russia agenda covered four cooperation "road map" areas, agreed upon last spring, with slight progress being reported in reaching an acceptable visa regime. At a London press conference, Putin continued his recent emphasis on Russia as an energy supplier for Europe, including through the projected Baltic Sea gas pipeline, which is chiefly a Russian-German project.
On Oct. 7, back in his home city of St. Petersburg, Putin hosted German Chancellor Schroeder for a two-day visit. The agenda was to include, besides Putin's 53rd birthday celebration, international crisis hot spots (Iran, Palestine, Iraq, etc.), energy (oil, gas pipeline projects) and aerospace cooperation issues (bilateral, EU-Russia), and increased German industrial investments in Russia.
Swiss authorities on Oct. 3 agreed to extradite former Russian Atomic Energy Minister (1998-2001) Yevgeni Adamov to the United States, as opposed to Russia. Adamov was detained last May on a warrant from the U.S. Department of Justice, which seeks to put him on trial for embezzlement of funds from the U.S.-backed program to provide security for nuclear fuels and processes in post-Soviet Russia. Russian authorities, who have sought to have Adamov sent home instead of to the USA, on grounds that he knows state secrets, immediately charged that the Swiss decision was politically motivated.
Several leading members of the State Duma denounced the move as part of a plot to extract state secrets from Adamov. RFE/RL Newsline analyst Robert Coalson reported Oct. 5 that some Russian sources have gone further, warning that Adamovlike former Ukrainian Prime Minister Pavlo Lazarenko, who was arrested and convicted in the United States for financial crimescould be used as a tool for implicating other Russian officials in corruption, thus destabilizing the regime. Defense Minister Sergei Ivanov said Oct. 4 that Adamov no longer possessed classified information, but his former ministry, Rosatom, indicated that what he knows will be classified for at least six more years. On Oct. 5, Russian press reported Justice Minister Yuri Chaika's announcement that Russia will continue to fight Adamov's extradition to the United States.
Southwest Asia News Digest
Pentagon analyst Lawrence Anthony Franklin signed his life away to the Department of Justiceat least for the next several yearsin a plea agreement over charges that he passed classified information to people whom he knew to be "agents" of Israel, and who could do injury to the national security of the United States. The charges were read aloud in detail by Federal District Judge T.S. Ellis, in Alexandria, Va. Ellis asked Franklin if he understood both the charges against him, and the consequences of his pleading guilty. Franklin, who had spent more than 30 years in the U.S. military, and then as a civilian working in both the Defense Intelligence Agency (DIA), and in the Pentagon, said that he understood fully both the charges, and the consequences, but then told the judge, that he "never intended" to harm the United Stateseven though the laws, to which he pleaded guilty, explicitly state that he threatened the security of the United States.
For many observers in the courtroom, the severity of the sentence, which Franklin faces, was a bit of a surprise: a maximum of 25 years in prison, more than $600,000 in fines, and up to nine years of supervised release after he serves his prison sentence. In addition, Franklin forfeits his U.S. government pension, except for a "survivor's benefit," which will go to his wife, provided that she continues to cooperate with Federal authorities in their continuing investigation of unspecified matters about which Franklin and she were knowledgeable. Franklin will be sentenced in January 2006.
From Judge Ellis's reading of the plea agreement, in the courtroom, on Oct. 5, Franklin's superiors at the Pentagon, and the Israeli conduits to whom he gave information, have much to be nervous about.
Ellis told Franklin, "You have agreed to cooperate on any criminal conduct you know about,..." and that this cooperation is not restricted to the specific charges filed against him. This "cooperation" includes that Franklin agrees to testify at any grand jury investigations, or trial, in which the Federal prosecutors require his testimony; agrees to make himself available for debriefings on any subjects of criminal investigation about which the Justice Dept. wants to question him; agrees to provide all documents or "any other materials" that he has possession of, that might assist the DoJ in their investigations; agrees to submit to a government-selected polygraph test; understands that he has no protection from being prosecuted by the state or local authorities for matters relating to the indictments against him; agrees that he will cooperate with other Federal prosecutors, in any other cases that may concern his activities or knowledge; agrees that his wife, who has already been cooperating with the Federal prosecutors, will continue to "fully cooperate." If either Franklin or his wife is determined to have given anything less than full cooperation, her pension will be forfeited. Franklin also agreed to renew all "non-disclosure agreements," as to classified and other materials that he had with the government, and he is forbidden to speak to, or give interviews to any author of a book, film, documentary, article, or memoir; or write, or participate in the writing of any book, film, etc. for as long as his sentence and supervised release continues, without submitting all statements, etc., to the DoD for approval. Violations of these agreements, or any false statement that Franklin were to make to the government debriefers or lawyers, would mean that all his statements, on any subject in the debriefings, could be used against him, in prosecuting the cases to which he pleaded guilty.
What are these charges? And who is involved with Franklin? As reported in several past articles in EIR Online, Franklin's immediate principals in receiving the classified information are Steve Rosen and Keith Weissman, two of the leading lights of AIPAC, the American Israel Public Affairs Committee, which calls itself "America's Pro-Israel Lobby," and which ranks among the "top five lobbying groups" in America, by its own description. Rosen, who has held a number of titles regarding "research" and "Middle East" matters, for more than 25 years, is more than an employee. According to several sources close to AIPAC, Rosen "is AIPAC," and reportedly made the organization what it is today. But after the offices of AIPAC were raided by the FBI, in the Franklin case, in 2004, AIPAC "fired" Rosen and Weissman, apparently on advice of their attorneys.
AIPAC could then cynically tell its contributors and the press that "no current employee" of AIPAC is under Federal investigation. This also provided the cover needed for top Bush Administration officials, such as Condoleezza Rice, to speak at AIPAC affairs, and to invite AIPAC to the White House and State Dept. for consultation.
But, it is widely reported that the "firing" of Rosen and Weissman is only cosmetic, since AIPAC reportedly continues to pay their substantial legal bills.
There is also the matter of Israeli diplomat Naor Gilon, who served as the chief political counselor at the Israeli Embassy in Washington, D.C., and with whom Franklin admitted meeting eight times. Franklin directly passed Gilon classified information. But various Israeli officials in sensitive positions, such as Defense and Foreign Affairs Committee chairman Yuval Steinitz, insist that Israel was not "running Franklin" as a spy. Steinitz is reported in the Jerusalem Post of Oct. 6, as saying, "Israel is not spying in the United States or against the United States.... The conviction doesn't accuse Israel of activating Franklin or tempting him."
But, the investigation of the role of Israel, whose embassy was involved in another case of spying against the United Statesthat of Jonathan Jay Pollard in 1985is far from over.
Finally, there are officials in the neo-conservative cabal run by former Deputy Secretary of Defense Paul Wolfowitz, and former Undersecretary of Defense Douglas Feith, who also have to be concerned. Franklin told the court on Oct. 5, that he worked under Feith at the Office of Special Plans, which has been identified as a "rogue intelligence unit," that manufactured bogus intelligence to justify the Iraq war. Franklin went to Europe with neo-con warmonger Michael Ledeen, to make contacts with Iranian operatives, reportedly to discuss how to engineer an overthrow of the Iranian regime. It was classified documents about Iran, which Franklin claims he gave to the Israelis and their agents.
But Franklin was no wallflower in the Pentagon, buried among hundreds of thousands of employees. He was occasionally included in the highly selective "brown bag lunches" run by Feith, the #3 in the Defense Dept., and Wolfowitz, the #2. Franklin also told the Federal Court that he illegally took home classified documents, so that he would be "prepared" to answer questions when he had face-to-face meetings with Secretary of Defense Donald Rumsfeld, and Wolfowitz.
Israel still keeps the Gaza Strip under siege, despite its evacuation of settlements. For the first time in one month, Israel allowed only 20 truckloads of food to enter Gaza where 1.5 million souls live. This is having catastrophic consequences which the international media have refused to cover. Even the Rafah crossing into Egypt is closed because of pressure by Israel and the U.S., based on the ridiculous claim that al-Qaeda terrorists and rockets were being smuggled into Gaza.
Former World Bank head James Wolfenson, who is supposed to be the international community's coordinator for aid for Gaza, is totally inept because of his own weakness or maybe his own intentions, in getting Israel to come to reasonable agreements on key issues such as the entry and exit of goods and people to and from Gaza, and the opening of the Gaza airport and harbor. As of now Gaza is little more than a concentration camp.
These conditions are the main source of the current chaos and clashes between Hamas militants and the Palestinian police. While Israel demands that the Palestinian Authority crack down on Hamas, Israel refused to allow the official importation of ammunition into Gaza for use by the police. On Oct. 2, several Palestinian police officers entered the Legislative council and fired the weapons in protest of this fact, after a clash with Hamas which left three of their comrades, including their commander dead. They demanded at least to have ammunition to defend themselves.
Meanwhile, demands by Israel and the U.S. that President Abu Mazen crack down on Hamas, under present conditions, are a setup to attempt to destroy his government.
Speaking at the National Press Club in Washington D.C., Maltese Prime Minister Lawrence Gonzi warned that the tensions in the Middle East, especially in regard to Israel and the Palestinian occupied territories, cannot be solved without addressing the question of water and the need for desalination, the Jerusalem Post reported Oct. 3.
"Tensions in the region are unlikely to subside as long as a real, serious problem remains unaddressedprovision of reliable water supply to a territory that has none." He said that Malta, in cooperation with the European Union, wants to share its expertise in desalination with the Palestinians through "an appropriate partnership," and that he had been in contact with the special coordinator for Gaza, former World Bank president James Wolfensohn, on the question.
"The Bush Administration [is] planning to make the U.S. the first country in history to initiate war with nuclear weapons," warned Paul Craig Roberts, a Republican and former high-level Congressional staffer, in his syndicated column Oct. 1. His analysis closely parallels what LaRouche warned of, in his "Guns of August" statement.
Roberts says that the "Bush administration, ... mired in interminable conflict" in Iraq and Afghanistan, is moving towards two more wars, to rally support around itself. But, "with no troops available," U.S. war doctrine is being revamped "to allow for 'preventative nuclear attack.' "
The U.S. is manufacturing false evidence about Iran, which the rest of the world rejects, to launch a nuclear strike. This would cause hell to fall down on U.S. forces in Iraq, and destroy the region, but the administration, "filled with hubris and delusion, is too stupid to know this."
"If the U.S. doesn't want other countries to develop nuclear weapons, the U.S. must stop bombing, invading, and threatening invasions and nuclear attacks ... for there to be peace, the U.S. must drop its belligerent role." But Bush won't do this.
Given Bush's delusions and hubris, "Congress and the American people must find a way to supply the judgment that is missing in the executive branch."
According to BBC and Ha'aretz Oct. 6, Bush told Palestinian leaders that he was on a "Mission from God." Nabil Shaath, Foreign Minister of Palestine, reported that in a June 2003 meeting: "President Bush said to all of us: 'I'm driven with a mission from God. God would tell me "George, go and fight those terrorists in Afghanistan." and I did, and then God would tell me, "George, go and end tyranny in Iraq," and I did. And now again, I feel God's words coming to me, "Go get the Palestinians their state and get the Israelis their security, and get peace in the Middle East." And by God, I'm gonna do it ... [And,] now I am determined to solve the problem in the Middle East. If you help me, I will act, and if not, the elections will come and I will have to focus on them.' "
Questioned about these reports, White House Press Secretary Scott McClellan said: "No, that's absurd. He's never made such comments." Asked if he had been in the meetings with Bush and Abbas, McClellan was forced to admit "I didn't travel on that trip."
Asia News Digest
On Sept. 28, Philippines President Gloria Macapagal Arroyo issued a Presidential directive that government officials and military and police officers must get clearance from her before testifying before the Congress. The next day, Gen. Francisco Gudani (who happens to be the leading Philippines representative of the military wing of the Fellowship of Tom DeLay, et al.) testified before the Senate on his direct knowledge of vote fraud in the May 2004 election in Mindanao. The general and an associate who testified with him were immediately sacked from their positions and threatened with court martial. Gudani had been referenced on the famous "Hello Garci" tapes (of the President talking to an election official about fixing the elections) as a general unfriendly to Arroyo, and was in fact removed from his position in Mindanao at the time of the election.
Members of the Senate from both the government and the opposition reacted angrily to the Arroyo directive. Sen. Panfilo Lacson said that the Senate will continue to call on officials to testify, and that if they refuse because of lack of permission from the President, they will issue subpoenas and cite them for contempt. Already, the National Security Advisor to the President, Norberto Gonzales, has been detained by the Congress for several weeks for refusing to reveal the secret financial source that was paying for a contract with a Washington lobbying firm.
A team of 16 Indonesian defense officials visited Moscow in early October, to arrange for Russia to essentially replace the U.S. as Indonesia's defense provider; the U.S. has refused to lift the embargo on most military equipment sales to Indonesia, left over from the East Timor conflict "sanctions." Also on the requested purchase list are submarines, tanks, and missiles. Indonesia is looking for Russian loans and to barter trade for oil and food to finance the deal, the Sunday Mail of Australia reported Oct. 2.
Indonesia has told Exxonmobil that the government would take over the Natuna gas field if the company failed to develop and market the output from the field by the end of its contract period in January 2007. ExxonMobil has a 76% stake in the field with Indonesia's state oil company Pertamina holding 24%. "There is no need to extend [ExxonMobil's] contract after 2007 if it fails to develop and produce from the block and find buyers for the gas.... If Exxon does not do that, the block should be given back to the government." Indonesia's Medco Energi International has already expressed an interest in taking over and developing the block after ExxonMobil's contract expires.
Exxon recently coerced Indonesia to extend by 20 years their rights to Cepu, a huge oil field in Java, for which they held rights until 2010, under threat that they would not develop it otherwise. Indonesia did not assert its rights in that case.
A Philippine-American spy admitted he had worked in the White House, including in Vice President Dick Cheney's office. Leandro Aragoncillo, a naturalized U.S. citizen from the Philippines, joined the FBI after leaving the Marines (at a date which is not yet clear). He was arrested on Sept. 18, together with former Philippine Police Senior Superintendent Michael Ray Aquino, for stealing over 100 documents concerning U.S./Philippine relations. It is now being reported that Aragoncillo is cooperating, and has confessed to working in the White House since at least 2000, both in Vice President Al Gore's office and in Cheney's office.
The documents stolen include reports from the U.S. Charge d'Affaires in Manila, Joseph Musomeli, about interviews with generals and opposition political leaders about a possible coup against the Arroyo government, and included a "job interview" with Vice President Noli de Castro, which advised against allowing him to take over in any regime change. The U.S. role as coup-maker was clear from the reports. It is not yet publicly known where the pilfered documents came from, or whether any U.S. officials are implicated.
Japanese Trade Minister Shoichi Nakagawa went on TV Oct. 1 to complain that China had sent five high-tech missile-equipped warships near the disputed East China Sea ocean border between Japan's Okinawa and China. "This ... violates what Prime Minister Koizumi and [Chinese President] Mr. Hu Jintao have confirmed: that this is a sea of cooperation, a sea of peace," Nakagawa said. China said they were only conducting normal training.
Talks between Japan and China failed again Oct. 1 to agree on how to develop the giant gas fields halfway between Okinawa and Shanghai, the subject of military maneuvers on both sides in this dangerous situation.
South Korean President Roh Moo-Hyun moved to end U.S. control over joint Korean-American forces in Korea, which could prevent the U.S. side from starting a war. In his Armed Forces Anniversary speech Oct. 1, Roh described the ROK's "complete determination to achieve independence in defense capability ... to be reborn as independent armed forces that fit its name and reality as well, especially by exercising our own wartime operational control." Under the current treaty since 1950, South Korea only controls its own 680,000 troops in peace time; should war commence, control over all troops on the peninsula, is to be given to the U.S. Recovery of wartime operational rights, handed to U.S. authorities during the Korean War, is seen by many South Koreans as a matter of national sovereignty.
Roh's statement comes during severe tension in the U.S.-ROK relationship. Thousands of students are demonstrating in Incheon to pull down the statue there of Gen. Douglas MacArthur, while South Korean newspapers are full of rumors attacking the Pentagon and claiming that Defense Secretary Donald Rumsfeld is about to pull even more troops out.
Under intense pressure from the U.S. Secretary of State Condoleezza Rice, Pakistani President Pervez Musharraf has ostensibly agreed to allow the CIA to interview the intrepid nuclear proliferator and "Father of Pakistani Atom Bomb", Abdul Qadeer Khan. Reports indicate Secretary Rice told President Musharraf that he has "no option" but to hand over Khan to U.S. intelligence for questioning. Khan is presently under "house arrest " in Pakistan.
Analysts claim that Khan's testimony is needed by the United States to present its case against Iran at the United Nations Security Council for actions against Tehran.
Under pressure from India's communist parties, the Congress Party-led coalition government, under the United Progressive Alliance (UPA), has backed out of disinvesting 10% equity of the public sector unit, Bharat Heavy Electricals Ltd. (BHEL), to the private sector. The four Indian communist parties, who have 65 seats in India's 540-member Parliament, support the minority UPA, but are not part of the coalition. However, it is the communist parties' support that has kept the 16-month-old Manmohan Singh-led UPA government in power.
Reports indicate the communists threatened to boycott participation in the UPA-Left Front meetings, demanding the UPA abandon its disinvestment plans. They made known their intent by sending separate letters to the Prime Minister and the UPA chairperson Sonia Gandhi. It is said that Gandhi has intervened on behalf of the Left Front.
The ostensible reason behind disinvestment of public-sector units, cited by New Delhi, is to generate cash for developmental investment. As of now, no government has met this promise, and the money raised went quickly to reduce India's yawning fiscal deficits to please the foreign financial institutions.
Africa News Digest
More than 400 have now died of Marburg Hemorrhagic Fever in the Angolan epidemic, according to ANGOP, the Angolan press agency, Sept. 28.
ANGOP reported that donated medicines and materials arrived from France Sept. 28 to help end the outbreak.
The World Health Organization issued its last update on the Angolan outbreak on Aug. 24, when it claimed there had been a total of 374 cases and 329 deaths. WHO and ANGOP have generally understated the numbers of cases and of deaths.
In South Africa, electricity generation has contracted 1.3% in the last 12 months, according to Statistics SA, the government statistical bureau, reports Fin24 (South Africa) Oct. 6. The decline is coupled with a sharp net increase in the import of electricity.
The Algerian generals' Charter for Peace and National Reconciliation, approved by referendum Sept. 29 (according to the official results), may not achieve peace or national reconciliation. One of the charter's clauses states that Algerians "decide, as a sovereign people, to forbid all those who instrumentalize religion from taking part in any possible political activity under any form that may take." Despite this, leaders of the Islamic Salvation Front (FIS) have formally agreed to the charter to obtain the benefits of amnesty and the release of prisoners. (The FIS was denied its electoral victory in 1992 by the generals' coup.) However, not all FIS leaders agreed to do so.
Madani Mezrag, one of two leaders in the 1990s of the FIS armed wing, the Army of Islamic Salvation, now dissolved, told Reuters Sept. 26, "Our goal, as an Islamic movement, is to set up an Islamic republic in Algeria. Unlike [what] you would think, it is much more possible today than ever. The regime was responsible for this national tragedy, and we will work day and night to change the system through democratic means."
The government claims the charter was supported by 97% of voters. But the level of voter participation is in serious question. Reuters reported Sept. 30 that "many polling stations were half-empty." There were no independent organizations monitoring the balloting.
For national reconciliation to work, there would have to be economic progress; unfortunately, the generals destroyed the Algerian economy on behalf of the IMF. Thus, figures such as Mezrag may find fertile ground.
This Week in History
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 neighborthe neighbor who resolutely respects himself and, because he does so, respects the rights of othersthe 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 scalewith 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.
"The survival of that spirit is more important than ever, at this time when we are fighting a world war, and when we are building the solid, durable foundations for future world peace.
"The little fleet with which Columbus first crossed the ocean took ten weeks for the voyage. And the crews of those three ships totalled approximately ninety men.
"Todayevery daymany times that number of men and many tons of cargo are carried across the ocean by airthey go across in a few hours. And by sea transport, an entire division of some fifteen thousand men can be sent across the Atlantic in one ship in one week....
"Thus the margin between the Old World and the New Worldas we have been used to calling the hemispheresbecomes constantly narrower. This means that if we do not now take effective measures to prevent another world war and if there were to be a third world war, the lands of the Western Hemisphere would be as vulnerable to attack from Europe and Asia as were the Island of Crete and the Philippine Islands five years ago....
"The Fascists and the Nazis sought to deceive and to divide the American Republics. They tried not only through propaganda from across the seas, but also through agents and spies and fifth columnists, operating all over the Western Hemisphere. But we know that they failed. The American Republics were not deceived by their protestations of peace and friendship; and they were not intimidated by their threats.
"The people of the United States will never forget how the other American Republics, acting in accord with their pledges of solidarity, rallied to our common defense when the continent was violated by Axis treachery in an attack on this country. At that time Axis armies were still unchecked, and even the stark threat of an invasion from Dakar hung over their heads.
"We have maintained the solidarity of the Governments of all the American Republicsexcept one. And the people of all the Republics, I think without exception, will have the opportunity to share in the achievement of the common victory.
"The bonds that unite the American Republics into a community of good neighbors must remain strong. We have not labored long and faithfully to build in this New World a system of international security and cooperationmerely to let it be dissipated in any period of postwar indifference. Within the framework of this new world organization that we have heard so much of latelythis world organization of the United Nations, which the Governments and people of the American Republics are helping to establish, the inter-American system can and must play a strong and vital role.
"Secretary Hull has told me of the conversations he has had with representatives of our sister Republics concerning the formation of a world security organization. We have received important and valuable expressions of opinions and views from many of these Governments. And I know that Secretary Hull, and Under Secretary Stettinius who led the United States delegation at Dumbarton Oaks, are looking forward to further exchanges of views with our Good Neighbors before the meeting of the general conference to establish the world organization. We must press forward to bring into existence this organization to maintain peace and security. There is no time to lose. And this time I think it is going to work....
"Like the Constitution of the United States, and of many other Republics, the Charter of the United Nations must not be static and inflexible, but must be adaptable to the changing conditions of progresssocial and economic and politicalall over the world.
"So, in approaching the great problems of the futurethe future which we shall share in common with all the free peoples of this Earthwe shall do well to remember that we are the inheritors of the tradition of Christopher Columbus, the Navigator who ventured across uncharted seas.
"I remember that when Columbus was about to set forth in the summer of 1492, he put in the beginning of his log-book the following words: 'Above all, it is very important that I forget sleep, and that I labor much at navigation, because it is necessary.'
"We shall requireall of usthe same determination, the same devotion, as we steer our course through the great age of exploration, the age of discovery that lies before us."
*For a study of the Nazi strategy in the Western hemisphere, see the definitive series on Synarchism in the Americas, published in EIR Nos. 27 and 28, July 2004.
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