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EIR Executive Intelligence ReviewSeptember 28, 2007 Vol. 34 No. 38 www.larouchepub.com $10.00Bankers Know: Something Catastrophic This Way ComesCheneys Iran War Is on the Front BurnerLYM Sets the Stage for Action on Housing FirewallPut the Eurasian Land-BridgeOn the International Agenda

Founder and Contributing Editor:Lyndon H. LaRouche, Jr.Editorial Board: Lyndon H. LaRouche, Jr., MurielMirak-Weissbach, Antony Papert, Gerald Rose,Dennis Small, Edward Spannaus, NancySpannaus, Jeffrey Steinberg, William WertzEditor: Nancy SpannausManaging Editor: Susan WelshAssistant Managing Editor: Bonnie JamesScience Editor: Marjorie Mazel HechtTechnology Editor: Marsha FreemanBook Editor: Katherine Notley

Photo Editor: Stuart LewisCirculation Manager: Stanley EzrolINTELLIGENCE DIRECTORSCounterintelligence: Jeffrey Steinberg, MicheleSteinbergEconomics: Marcia Merry Baker, Paul GallagherHistory: Anton ChaitkinIbero-America: Dennis SmallLaw: Edward SpannausRussia and Eastern Europe:Rachel DouglasUnited States: Debra FreemanINTERNATIONAL BUREAUS

Bogot: Javier AlmarioBerlin: Rainer ApelCopenhagen: Poul RasmussenHouston: Harley SchlangerLima: Sara MadueoMelbourne: Robert BarwickMexico City: Rubn Cota MezaNew Delhi: Ramtanu MaitraParis: Christine BierreUnited Nations, N.Y.C.: Leni RubinsteinWashington, D.C.: William JonesWiesbaden: Gran Haglund

ON THE WEBe-mail: [email protected]/eiwWebmaster: John SigersonAssistant Webmaster: George HollisEIR (ISSN 0273-6314) is published weekly (50issues), by EIR News Service, Inc., 729 15th St. N.W.,Washington, D.C. 20005.(703) 777-9451European Headquarters: E.I.R. GmbH, Postfach2308, D-65013 Wiesbaden, Bahnstrasse 9-A,D65205, Wiesbaden, Federal Republic of Germany

Tel: 49-611-73650Homepage: http://www.eirna.come-mail: [email protected]


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Director: Georg NeudekkerMontreal, Canada: 514-855-1699Denmark: EIR I/S, Sankt Knuds Vej 11, basementleft, DK-1903 Frederiksberg, Denmark. Tel.: +45 3543 60 40, Fax: +45 35 43 87 57. e-mail: [email protected]: EIR, Manual Ma. Contreras #100,

Despacho 8, Col. San Rafael, CP 06470, Mexico, DF.Tel.: 2453-2852, 2453-2853.Copyright: 2007 EIR News Service. All rightsreserved. Reproduction in whole or in part withoutpermission strictly prohibited.Canada Post Publication Sales Agreement #40683579Postmaster: Send all address changes to EIR, P.O.Box 17390, Washington, D.C. 20041-0390.EI RFrom the Assistant Managing EditorThis week, we bring you the first reports from the historic Sept. 15-16conference of the Schiller Institute in Kiedrich, Germany (Feature). As

Helga Zepp-LaRouche noted in her introduction, while the danger ofwar and economic chaos would not be overlooked, the purpose of theconference was an optimistic one, aptly expressed in the conferencetitle, The Eurasian Land-Bridge Is Becoming a Reality!In his keynote address, Lyndon LaRouche made clear that the fundamentalconflict todayas it has been for centuriesis that betweenthe Republic and the Empire. For the United States, the enemy hasalwaysbeen the British-centered financial oligarchythe same crowdthat put Hitler in powerthat must be defeated if we are to overcomethe the immediate threat, and establish a Westphalian peace and developmentpolicy.Making the Eurasian Land-Bridge a reality was the overarching

concept of the panel entitled, RussiaEurasias Keystone Nation,which featured four outstanding presentations from leading membersof the Russian intelligentsia, who addressed both the prospects andproblems of developing Russias vastly underpopulated, but resourcerichFar East. Upcoming issues of the magazine will present additionalspeeches from the conference (the full program is included in thisissue).Wasting no time, LaRouche was in Rome immidiately followingthe conference, addressing a Senate committee on his firewall proposalto defend homeowners and banks (International). There, you willalso find Muriel Mirak-Weissbachs report on Dick Cheneys latest attemptsto get a war going against Iran, by challenging IAEA headMohammadElBaradeis reportsjust as he did with Iraq.Our Economics lead by John Hoefle, whose headline ironicallyechoes the witches warning in Macbeth, shows that the runs on bankslike Countryside and Northern Rock are harbingers of the total disintegrationof the system.And, from the LaRouche Youth Movement War Room, there is anup-to-date report on the promising results, so far, of the drive to putthrough LaRouches Homeowners and Bank Protection Act (National),followed by the first wave of what is becoming a flood of endorsementsof, and resolutions for, the Act.Helga Zepp-LaRouche

addresses theSchiller Institutesconference in


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Kiedrich,Germany.4 Schiller Institute Conference: The EurasianLand-Bridge Is Becoming a Reality!Helga Zepp-LaRouche introduces the Institutes Sept.15-16 conference in Kiedrich, Germany.10 This Present World Financial Crisis: Credit vs.

Monetarist UsuryThe keynote address on Sept. 15 by Lyndon H.LaRouche, Jr. The task I have to perform here today, isunusual, and its not necessarily by my choice, hebegan. The choice has been made for us: Weve nowcome to the point that civilization as a whole is in dangerof collapse. The transcript of the question and answerperiod follows LaRouches speech.24 Conference Resolutions30 Conference ProgramRussiaEurasias Keystone Nation31 Industrial Policy and Politics in Russia

By Dr. Stanislav Menshikov.36 Eurasia-North America Multimodal TransportBy Dr. Victor N. Razbegin.43 Raw Materials and Russian InfrastructureBy Dr. Sergei Cherkasov and Academician Dmitri Rundqvist.48 Space Industry Cluster in Russias Amur RegionBy Yuri Krupnov, delivered on his behalf by Ilnur Batyrshin.Economics52 The Bankers Know:Something CatastrophicThis Way ComesSenior financial figures, from SirAlan Grerenspan to Bank of

England governor Mervyn King, aregoing to great lengths to defendtheir reputations, as the bankingcrisis deepens. What do they seecoming that causes them to go into avery public not my fault mode?54 Global Warming: Sciencevs. NonsenseEI R Contents EIRNS/Julien LematreCoverThis Weekwww.larouchepub.com Volume 34, Number 38, September 28, 2007International56 The Iran War Is on theFront BurnerA script being prepared to justify aU.S. war against Iran, is theconstruction that Iran is responsiblefor rising casualties among U.S.troops in Iraq, and for the process ofdestruction of the nation.60 Italian Institutions ShowStrong Interest inLaRouches Approach toHousing Crisis

Lyndon LaRouche visited Rome,presenting to Italian politicalleaders his emergency firewall


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legislation to deal with the housing/mortgage crisis.61 Two Ways To Do PoliticsFrom LaRouches testimony to theItalian Senate Labor and SocialSecurity Commission.62 British Press and Officials

Caught Lying in DugganAffair63 International IntelligenceNational64 LYM Sets Stage forCongress To Act on HBPAFirewallThe LaRouche Youth Movement iscampaigning to get Congress to passLaRouches Homeowners and BankProtection Act of 2007,immediately.

66 Lawmakers SupportLaRouches Solution forMortgage CrisisState legislators and otherprominent figures are signing andcirculating resolutions in support ofthe Homeowners and BankProtection Act of 2007.Book Review70 Profile of a British Agentof-InfluenceWoodrow Wilsons Right Hand:The Life of Colonel Edward M.

House, by Godfrey Hodgson.Editorial72 After Weimar, There WasFascismFeature EIR September 28, 2007SCHILLER INSTITUTE CONFERENCEThe Eurasian Land-BridgeIs Becoming a Reality!by Helga Zepp-LaRoucheEditors note: On Sept. 15, Helga Zepp-LaRouche, the chairwomanof the Schiller Institute in Germany and its founderinternationally, welcomed some 350 members and guests, to atwo-day conference in Kiedrich, Germany, with the theme,The Eurasian Land-Bridge Is Becoming a Reality! Mrs.LaRouche became known as The Silk Road Lady, for hertireless organizing on behalf of this idea, beginning in the early1990s. The following are her remarks opening the conference,and introducing Lyndon LaRouche, who gave the firstkeynote presentation; she herself gave a keynote on the followingday. In this issue, we publish the speeches by participantsfrom Russia. Other presentations will appear in futureissues. The entire conference will be archived on the websiteof the Schiller Institute, www.schillerinstitute.org.I want to welcome you again, distinguished guests from manycountries, and Im actually glad to report that we have, so far,

people from 29 countries assembled in this conference. Thisconference is taking place at a truly awesome moment in history,where even the financial media cannot fail to report that


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the global financial system is in an advanced stage of disintegration,of a complete meltdown of the entire system. Andnaturally, this is not disconnected from the fact that we are ina world situation of a heightened danger of a new war, thistime against Iran. If this would happen, it would be the beginningof global asymmetric warfare, and therefore a plunge ofthe entire civilization into a dark age.

So, while I dont want to play down the dangers whichcome from these two immediate situations, the actual purposeof this conference is a very optimistic one. We will hear inmany presentations and discussions, how easy it would be toreconstruct the world. And that, provided we get through thisimmediate danger zone, mankind can enter a completely differentphase, having rational discussions about how to buildthings; how to overcome bottlenecks; how to overcome poverty;how to build industries, agriculture; how to bloom andgreen the deserts. And the purpose of this conference is to getpeople optimistic, not only in the two days of this discussion,but beyond. Because this conference is supposed to be the beginning

of a worldwide dialogue, and forum, of people whowant to reconstruct the world; of putting together the combinationof people who want to fight for the old idea, which usedto be the agenda, for example, of the Non-Aligned Movement,to build a just new world economic order.And the key to this is, obviously, the building of the EurasianLand-Bridge, which, from the beginning, never wasmeant to be limited to Eurasia, but we always thought the EurasianLand-Bridge to be the cornerstone of a global reconstructionprogram.The System Is Totally BankruptNow, to situate the conference, let me just briefly remindyou of what happened in the recent weeks, which were truly

dramatic.The present world financial system is bankrupt beyondrepair. And all the beautiful, creative financial instrumentsgiven to the world by Alan Greenspanthe hedge funds, theprivate equity funds, the conduits, the investment vehiclesand whatever theyre all calledthey are all basically worthlesspaper. Or not even paper, theyre just e-paper, electronicpaper, and you can eliminate them by pushing the delete buttonon the computer, because they dont exist; theyre just virtual.Now, how many trillions of dollars are out there, nobodyknows. Not one government, not one central bankthe effortsby the German government at the last G-8 meeting to atleast get transparency, failed, so we are still sitting in a situationwhere nobody knows the exact amount of money whichEIR FeatureSeptember 28, 2007 EIR Featureis presently unpayable. But what one can say is, this is severalmagnitudes beyond the entire physical GDP of world production.And we have now reached a situation where if the banksare trying to bail out the hedge funds and other funds, theythemselves will go bankrupt.Now Mr. LaRouche, of course, has forecast that this presentfinancial system would end sometime in a systemic crisis.And Im sure that there is nobody right now, of any significancein the financial world, who, when you have a crash of a

hedge fund, when you have new figures of collapse, who isnot thinking of this gentleman. Because he is like the incarnationof the warning that the present system cannot function.


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Now, in May, when Mr. LaRouche and I were in Moscowat the beautiful occasion of the 80th birthday of ProfessorMenshikov, who is here today, together with his wife, he saidthat he expected a major financial crisis for his birthday, whichis in this month of September. We took his words seriously,and I thought it would be good to have a conference aroundthis time, so that basically we could discuss what would be the

alternative. And so, here we are.Mr. LaRouche, then, on the 25th of July, made an historicwebcast in Washington, where he declared that the system hadalready collapsed, and that we are only seeing the aftermath,the playing out of this collapse. And he also said that Americaninfrastructure is completely rotten, and falling apart.And exactly two or three days later, the first hedge fundsof Bear Stearns went under, as a consequence of the collapseof the subprime mortgage market in the United States. And atthe same time, the bridge in Minnesota collapsed. So, he wastruly prophetic. Then, also, the Japanese yen carry trade startedto come to an end, and you had at that point, the trigger of

what Mr. LaRouche called the two bookends of a reverseleveragecollapse process, and then you had unfolding what isgenerally called the cluster risk: that, because all marketsegments are interconnected, you had the beginning of a systemiccollapse.Now, the proponents of the casino economy used to say,Oh, the hedge funds are something very positive, becausethey distribute the risk on many shoulders. Well, this is trueas long as you have the bubble economy continuing at twodigitprofit rates, but the moment you have a reverse-leveragecollapse, then this chain-reaction collapse occurs throughoutall market segments.At the beginning of August, you had the first major German

bank, the IKB bank, about to go bankrupt, which wasthen bailed out by the Kreditanstalt fr Wiederaufbau [ReconstructionFinance Agency, KfW], with 8 billion euros. TheIKB lost major monies in the subprime market through theirRhineland investment vehicle. And then, the SddeutscheZeitung said that at that point, at the beginning of August, theentire German banking system was at risk. The head of theGerman credit authority organization, BaFin, warned that thiswas the worst crisis since 1931, which is a complete undercharacterization,because the present crisis is way beyondthat.Then, very quickly, in the month of August, which supposedlyis a lull normally, you had West LB, which is thestate-owned bank from North Rhine-Westphalia. Basically,EIRNS/Julien LematreHelga Zepp-LaRoucheopened the Kiedrichconference, calling onthe audience to mobilizeurgently to implementthe Eurasian Land-Bridge, to be thecornerstone of a globalreconstructionprogram. With her on

the podium is herhusband, LyndonLaRouche.


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Feature EIR September 28, 2007they were about to go bankrupt.They were bailed out,and there it turned out thatthe entire board had coveredup and lied about the lossesfor half a year. So, they all

were kicked out. Some ofthem are facing criminalcharges for covering up theamount of losses.Then the next bank, SaxonLB, which is the stateownedbank of Saxony, wasabout to go bankrupt, andwas bailed out with 17 billioneuros from the savings andloan banks from Saxony, becausethey had lost major

moniesthe full extent isnot known to anybody yetthrough so-called conduits inDublin, which probably areinvolved with around $40, or$60, or even $65 billion inthe U.S. subprime mortgagemarket.So, very quickly, these banks were about to go bust. Theywere bailed out, but the main problem was then that you hadthe development of a credit crunch, because with the reverseleveragecollapse coming from both the collapse of the U.S.subprime market, and the ending of the yen carry trade, the

refinancing of the so-called asset-backed commercial papersbecame impossible. So, then in the case of Saxon LB, BaFin,the credit authority, on Saturday, gave them two days time tosell, or they would be shut down on Monday. Then MinisterPresident [Governor] Milbradt of Saxony, put the state Constitutionout of business for two days, because according tothe Saxony Constitution, the parliament has to be consultedand agree to a sale of a state-owned bank, and because it wastoo short notice, they just put the Constitution out of business.That really casts some big doubts on the duration and value ofdemocracy in this country.Then, on the 8th of August, an American analyst by thename of Jim Cramer, had a public freakout on TV. He said,Bernanke, the head of the Federal Reserve, has no idea! Hehas no idea! He doesnt know what hes doing. Doesnt he understandthat 7 million homeowners involved in the subprimemarket are about to lose their homes? Open the discount window!Open the sluices! Pump money! It was really quite aremarkable freakout.The Homeowners and Bank Protection ActShortly thereafter, on the 22nd of August, Mr. LaRoucheproposed the first very important measure, the Homeownersand Bank Protection Act of 2007, which calls for the Federalgovernment and the Congress to put homeowners into bankruptcyprotection, so that people can stay in their homes; that

the banks have to reorganize the payment of mortgages in theform of rent; and then the banks have to, in an orderly process,readjust the payments, so that the people can stay in


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their homes, and that the banks should be protectedbecauseif the banks close down, then the economy shuts down,and an enormous hardship for the population would be theresult.But naturally, the hedge funds and the so-called creativeinvestment vehicles, conduits, and so forth, cannot be bailedout, because they are unsalvagable.

Now, the Congress, obviously, is very dependent on thesehedge funds. All the major Presidential candidates have received$40-50 million for their campaigns already, so there isgigantic pressure on them not to act. And we, as an organizationin the United States, and internationally, went into a mobilizationto focus on the state legislators, the mayors, thegovernors, to push for this Federal emergency action, becauseon a state level, on the level of the cities, people naturallyfeel the heat of this crisis much more than you can feelit in Washington.Then, at the beginning of September, there were hearingsin the U.S. Congress on this financial crisis, and 75% of all the

visitors sitting in these hearings, were lobbyists from thehedge funds, putting excruciating pressure on the Congressmennot to act, actually blackmailing them, delivering threatsFIGURE 1Some Main Development Corridors of the FutureSeptember 28, 2007 EIR Featureof quite some dimensions. But Mr. LaRouche made it veryclear that these hedge funds are paper tigers. They may haverepresented some power in the past, but their weight is actuallyvery little, because they are bankrupt.So, the situation has now boiled down to this: If the bankscontinue to bail out the hedge funds, they will go bankrupttoo.

Mr. LaRouche has said that the Homeowners and BankProtection Act must be enacted in September, or there will beno United States, and the same goes for Europe, and for all theother countries in the world.The pressure is building up right now, in Ohio, in Michigan,in California, in Florida, in New Yorkin Brooklyn, inQueensbecause millions of people are in danger of losingtheir homes. And obviously that would represent an even biggersocial crisis than is already the case with the collapse ofthe auto industry.Now, obviously, the Homeowners and Bank ProtectionAct is only the first step. But given the poor condition of theCongressmen, of the Senators, and of the responsible peoplein general, to understand the complexity of this present systemiccrisis, you have to give it to them in small pieces. But itis very obvious that you need the full package of the FDR solution,which includes a national infrastructure bank, whichhas to provide a capital budget for long-term investment. Becausethis Minnesota bridge which collapsed was just one, butthere are 130,000 bridges in the United States which are in asimilar condition. And in Germany, we are not very far behindin terms of the condition ofinfrastructure.But we need also an economicrecovery act. We need

a New Deal. We need a BrettonWoods system. And Mr.LaRouche has called for a


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Four-Power agreement, andIm sure he will speak aboutthat himself: that you need achanged United States, plusRussia, plus China, plus India,because only if you puttogether the four most powerful

nations of this world,do you have any chance tosolve this problem.Now, I want to turn to theactual subject of this conference.The Eurasian Land-Bridge SolutionThe Eurasian Land-Bridge is becoming a reality.Exactly at the moment whenglobalization is failing, the global alternative is taking shape.This is something we have been fighting for since the fall of

the Wall, in 1989-90. When the Berlin Wall came down, weproposed, and especially Mr. LaRouche proposed, the idea ofa Productive Triangle, which was supposed to be the area betweenParis, Berlin, and Vienna, which is the largest industrialconcentration in the world, still; and to use high-technologyinvestments in this regionhigh-temperature reactors, maglevtrains, and similar thingsto develop so-called corridorsto Eastern Europe.Now, if that had been implemented, it would have beenquite a different situation than what then happened, becausethen you had truly the possibility to put the East-West relationshipon a completely different basis.In 91, when the Soviet Union collapsed, we proposed

the development of the Eurasian Land-Bridge [Figures 1and 2], which was the idea to connect the industrial and populationcenters of Europe, with the population and industrialcenters of Eurasia, through so-called development corridors.Which was the idea to take the transport arteries along theTrans-Siberian railway, and the old Silk Road, and build socalleddevelopment corridors of 100-kilometer width, whereyou would put in energy production and distribution, andcommunication, to then have in these development corridors,the condition previously found only in the non-landlockedareas of the world, so that you would open up Eurasiafor development.This idea we proposed in hundreds of conferences andUrban, nuclear-basedindustrial complexIntensive agricultureregionRoad networkRegional railway andmaglev networkMain trunk line(rail, maglev,superhighway)River / canalOil or gas pipeline

Smaller towns100 -150 km widedevelopment corridor


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Graphic Representation of a Development Corridor*FIGURE 2Feature EIR September 28, 2007seminars, and, in 1996, we participated in a big conference inBeijing, which was organized on our suggestion, by the Chinesegovernment, with the participation of 34 countries, to

discuss the economic development among the regions of Eurasia.At that point, the Chinese government declared this programto be the long-term perspective of China, until the year2010, and as you can see, this was 11 years ago. Then severalsetbacks occurred: the Asia crisis of 1997, so-called; then thefact that the Chinese government, for a long period, did notwant to risk their relationship to the United States by going inthis direction. But then came the Bush Administration andSept. 11 in 2001. And following, you had the war against Afghanistanand Iraq.And then something happened which is really extremelyinteresting, in terms of how historical processes actually develop.

Because of the policies of the Bush Administration, toturn the republic of the United States, into an empire, or atleast attempting to do so, by insisting on the unitary executiveconception of the Presidency, by trying to run world politicsin a unilateral way, the countries of Eurasia moved togethermuch more quickly than would have otherwiseoccurred. And a strategic partnership happened between China,Russia, and India, and the Shanghai Cooperation Organizationincluded many more countries of Eurasia.At the same time, you had the economic integration andcooperation in Latin America, with respect to a new Bank ofthe South.So, now we have a dramatic situation, where for a long

time, we were only talking about these projects, but nowbecause the collapse of the system is becoming obvious, becauseit is clear that we are in a complete transformation ofthe historic period, all these projects are now becoming areality.On the 10th of April, President Putin had a Cabinet meetingin which he decided to make the railway development ofRussia a priority of his Presidency. Then on the 24th of April,a conference took place in Moscow on the development of theBering Strait, which is the idea which Mr. LaRouche has beenpushing since the 70s, which is the idea to connect Alaska,through the Bering Strait, with Siberia.Now, this is a fantastic project. It involves, from the Russianside, the intention to build 6 ,000 kilometers of railway,and a 100-kilometer tunnel underneath the Bering Strait, andit obviously involves the development of the vast resources ofSiberia and the Far East under permafrost conditions. In thisregion, you have the richest raw materials of any part of theworld. But the idea is not just to loot them, but to use the tremendousscientific potential of Russia, to apply the ideas ofMendeleyev and Vernadsky to develop new raw materials,new isotopes, and really go into a science-driver for the worldeconomy as a whole.This is not only a fantastic project, which would really bea science-driver for the world economy already by itself, but

it was put on the agenda very consciously by the Russian governmentas a war-avoidance policy. While at the same time thedanger of a new confrontation is emerging around the antiballistic-


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missile systems, which the United States wants toput in Poland and the Czech Republic, this idea of workingtogether on great projects is clearly the alternative as a waravoidancepolicy.Obviously, this is not a project just of interest to the UnitedStates and Russia, but immediately China and Japan expressedtheir interest to cooperate. And the scientists who

were at this conference immediately said that this would bethe key part of a world link of railroads; of transport systemsconnecting six continents, and bringing the transport lines allthe way to Chile, and all the way to Africa.Now, we have talked about this for a long time, that Egyptis both an Asian country and an African country, and would bethe link to bring the Eurasian Land-Bridge to Africa. We willhear presentations about this from our Italian economist Mr.Galloni, that the Bridge of Messina, connecting Italy withSicily,can be the bridge to then bring this development fromSicily to Libya, and have a third corridor going through the

Strait of Gibraltar.The Russian government is expected, despite the governmentchange which just took place, to adopt this projectof the Bering Strait tunnel as the official Russian policy thisyear. But there are also many other projects of the EurasianLand-Bridge coming into being. The Indian government announcedthat they are planning to build a corridor from Delhito Mumbai, which will be 1,400 kilometers long, and willaffect the economic life of 180,000 million people. There isthe plan to build another development corridor from Calcuttathrough Myanmar to China. Between China and India,they want to build a tunnel underneath the Himalayas. ThenKazakstan is involved in major projects to bring the water

from North Russia down to irrigate the Central Asian countries,and refill some of the lakes which have almost driedout.Spread the Nuclear RenaissanceThen you have also everywhereexcept in Germany,but we are going to change thata renaissance of nuclearenergy. And I should tell you that one purpose of this conference,apart from addressing the world issues at large, is tocause a paradigm shift in Germany, and overcome the longtermanti-technology tendencies in this country. BecauseChina, Russia, and India are all building 30 to 4 0 nuclearplants. India is planning to build plants on the basis of thethorium cycle. China and South Africa are in the vanguardof building the high-temperature reactor [HTR], which wasinitially developed in Germany by Professor Schulten in Jlich,who in the 50s already started to work on the inherentlysafe nuclear technology of the high-temperature reactor.Which is a perfect way of providing energy security, becauseit provides efficient industrial heat and electricity, and soProfessor Schulten, when it became clear that this technolSeptember28, 2007 EIR Featureogy was not realizable in Germany, gave this model of theHTR as a turnkey technology to China. And today, alsoSouth Africa, which is working with China, is working onthis most advanced fourth-generation reactor, the Pebble

Bed Modular Reactor.This is inherently safe, because the ceramic materialwhich contains the fuel, can withstand very high temperatures,


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actually 1,800C when the operating heat of the nuclearprocess is only 1,000C. So, because the cooling device is helium,and the design of the reactor is what it is, the danger of achain reaction getting out of control is completely, 100%eliminated.Therefore, this reactor is also extremely important for thetransition to hydrogen production for various energy applications.

For example, one can produce methanol from coal,which is a much better idea than to produce it from biofuel,while driving up the prices of wheat and other foodstuffs inthe world.The first Pebble Bed Reactor will be finished in South Africain the year 2011. And then it will be commercially massproduced.They already have agreed to export 31 reactors, andthat is just the beginning. Twelve countries have already madeclear they want to import this reactor from South Africa. Andit is indeed perfect for the developing countries, because it canalso apply desalination to large quantities of ocean water,greening the deserts.

The decision by the German government, or actually theCommission for Reactor Security, in 1990, to stop all work onthe HTR, was a complete mistake, and needs to be reversed.China developed this reactor, and its now been a functioningtest reactor, for several years, on the outskirts of Beijing. Andwe are absolutely determined to educate the population to acceptthis technology in Germany, because if Germany is supposedto survive as a modern industrial nation, this idiotic decisionhas to be reversed. The same goes obviously for othertechnologies developed in Germany, but not used here, namelythe maglev, where the first commercial line is now functioningin China, between the Pudong airport and Shanghai.This was built in 22 months by Commander Wu, while the

Germans could not even build the ICE [high-speed train] betweenCologne and Frankfurt in ten years. So we want to importCommander Wu to help us!Today, the maglev is on the agenda in many countries.Latin America wants to build maglev. At the Bering Straitconference in Moscow, the Academicians were very excited,talking about how soon, it would be quicker to take the maglevfrom Acapulco via the Bering Strait to Mumbai, than youcan go by ship across the ocean right now. The Persian Gulfstates are talking about an 1,100-km-long maglev line alongthe coast. Denmark, due to the efforts of the Schiller Institute,is now considering building a maglev from Aarhus to Copenhagen,in the hope that it will then go to Hamburg, Moscow,and Beijing, connecting Scandinavia to the Eurasian Land-Bridge.The German government at this point is even dragging itsfeet on building a tiny stretch of maglev from Munich to theairport. But we are determined to make a campaign to turn thisaround in Germany, and elsewhere.An Historic Turning PointNow, we have reached an historic moment, where the neoliberalsystem of the free-market economy, and the unbridledfree-market system, is coming to an end. Globalization, whichis just another word for the Anglo-American empire, has attemptedto turn the world into a global plantation to the advantage

of a small oligarchy, while turning the vast majority ofpeople into poor people, having slave labor, and cheap laborproduction places. And they have actually committed gigantic


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crimes. Dont kid yourself! What the hedge fund system, thesystem of global looting which goes with that, has done interms of crimes, in terms of killing people, has been absolutelygigantic. But this system is now coming to an end.So, we have reached a situation where either we establisha new world economic order based on the EurasianLand-Bridge, and go for global reconstruction, or we will

plunge into a dark age. Now, we are committed to put theEurasian Land-Bridge on the agenda in this period, as a waravoidancepolicy, and establish a political order which isworthy of the dignity of man: a political order which is incohesion with the laws of the universe. And I want to showyou now a video from a speech which Jos Lpez Portillo,the President of Mexico, gave on the first of October 1982 tothe United Nations.The prehistory of that video which you will see now, isthat in the Summer of 1982, President Lpez Portillo calledMr. LaRouche to come to Mexico, and he asked him to defendthe Mexican economy, which was under massive attack at that

point, because there was an organized capital flight out of thepeso. So, Mr. LaRouche, after meeting with President LpezPortillo, not only wrote a program for the defense of Mexico,but for the integration of Latin America as a continent, whichLpez Portillo then implemented on the 1st of September of1982. At that point, there would have been the chance to havean orderly reorganization of the banking system, which actuallywas the proposal.This did not function at that point, despite the fact thatLpez Portillo implemented these measures for Mexico as acountry, because at that point, Argentina and Brazil did not actin solidarity with Mexico. So 25 years have been lost. But asyou can see, the question of the new world economic order

has been our lifes work, and it is now the time to implementit.[She shows a video clip from President Lpez Portillosspeech. It was published in EIR, Sept. 7, 2007. The video, inSpanish and with English translation, is at www.larouchepac.com/media/2007/08/27/jos-l-pez-portillo-tuvo-raz-n-en-1982-y-tiene-aun-m-s-raz-n-.html.]10 Feature EIR September 28, 2007Here is an edited transcript of Lyndon LaRouches keynoteaddress to the Schiller Institute conference, The EurasianLand-Bridge Is Becoming a Reality! held in Kiedrich, Germany,on Sept. 15-16. Subheads have been added.The task I have to perform here today, is unusual, and its notnecessarily by my choice. The choice has been made for us:Weve now come to the point that civilization as a whole is indanger of collapse. Were not faced with merely a depression;were far past that. Were at the point where a chain reaction,a collapse of the dollar value, which has already collapsed significantlyin recent months, but a further, sudden collapse ofthe dollar, would ruin China, damage India inconceivably,and blow out Europe; that Europe, China, India and othercountries could not survive a sudden collapse of the dollar, ofthe type which is about to take place. It is already in process oftaking place.So therefore, this is an unusual time. Were looking, not at

the threat of a depression: Were looking at the threat of aglobal, prolonged, new dark age of humanity.And the question before us is, can we overcome this threat


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at this stage. It should have been done before, but sometimesin the course of history, necessary decisions come very late.Only when conditions are absolutely impossible, will peoplegive up the foolishness which they have contributed to causingthe crisis to occur.Now, in such a state, you do not go back and say, We aregoing to reaffirm our traditions. Because, as I emphasize today,

the tradition we have in the world today, is best understoodby people about my age, or older, like Amelia [BoyntonRobinson]. We were there when the change came. And thechange, as I experienced it, started when I was in military serviceoverseas. And I was in India for a time, at the close of myservice there, when President Roosevelt died. And on that occasion,some soldiers came to me, and said, Can we meetwith you later tonight? They did not say what the subjectwas, but I had a sneaking suspicion what it might be. And thequestion was put to me: What, in your opinion, is our fate,now, with the death of Franklin Roosevelt? Whats going tohappen to us, now, that Roosevelt is dead? And I told them,

off-hand, I said, Well, I can say that we have lived and foughtwar, under a great United States President. We are now left inthe hands of a very little manand Im afraid for us.Then, I came back out of BurmaI had been stationed innorthern Burma in the closing period of the warand cameback, and at that point, what I had feared earlier with the deathof Roosevelt, was already taking place. The United States, underFranklin Roosevelt, had a very unsteady alliance with theBritish Empire. The British Empire was the agency which putHitler into power in Germany. Not just the kingdom, but theBritish Empire, typified by the Bank of England, and by thecorrelation of elements, financial elements which are the BritishEmpire. The British Empire is modelled upon ancient Venice,

medieval Venice, in which a group of bankers, like a clusterof parasites, forms an empire. And finds instruments ofgovernment to do its bidding.Roosevelt vs. the British EmpireWhat happened is, Roosevelt had been committed toeliminating that. But, in order to defeat Hitler, he had to getinto an alliance with Britain. And he had to force them intothat alliance, because they didnt want to do it! They liked Hitler!They invented him! They created him! They put in himinto power, with the help of some people in the United States:the Harriman bank, for example, known for its racist policiesin an earlier period. It was the grandfather of the present Presidentof the United States, Prescott Bush, who was generalsecretary for the firm of Brown Brothers Harriman, who wrotethe check, in effect, the message to a German bank, at a pointthat the Nazi Party was bankrupt, and saved the Nazi Party! Itwas the British monarchy, and its representative, HjalmarSchacht, who put Hitler into power.We had to get rid of Hitler. We couldnt do it alone. Wehad an alliance with the Soviet Union on this issue. We had tohave the British alliance. And we were dragged down duringthe war, by the fact that we had an untrustworthy ally, Britain.I once had met a German general, who had been a colonelin North Africa; a distinguished fellow, a great man in internationallaw. And at my first encounter with him, I said, Well,

General, would you agree with me that Montgomery was theworst commander in World War II? And he answered me,and said, Well, you cant say anything bad about Montgomery.


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He saved my life. He said, I was commanding the rearguard for Rommel, in the retreat from Egypt, and if he hadever flanked me, Id be dead! [laughter]This Present World Financial Crisis:Credit vs. Monetarist Usuryby Lyndon H. LaRouche, Jr.September 28, 2007 EIR Feature 11

Well, if you know what Montgomery was, you know whathe was in [Operation] Market Garden: He prolonged thewar in Europe, for over a year, by moving a First Army operationthrough a field where the roads couldnt carry the supportingtroops to rescue the parachuters that had jumped inthere! And he continued the war for a year! The war wouldhave been over, by the end of 1944, but for Montgomery. Andhe was stuck in there, not only because he was a very bad general,very incompetent, but he had provided precisely thatmargin of incompetence that Churchill wanted: BecauseChurchill took out competent commanders on the British side,for fear they would help to win the war too soon. So, this is the

kind of problem we faced.So, when Roosevelt died, what went into action? Rooseveltsprogram for the postwar world was something the Britishwere determined would not occur: And that was, to eliminatecolonialism, in all its manifestations. That all nations,and Roosevelts speech in Casablanca, where he confrontedChurchill on this, was explicit. He said, Take this part of Africa!What can we do after the war? What can we do to rebuildthis area? And laid it out: Roosevelts policy was eliminationof the British Empire, elimination of colonialism.And when I got back to Calcutta, from northern Burma,with Truman as President, rather than Roosevelt, I saw it inaction. I saw it through Southeast Asia: The Japanese troops

had surrendered to the forces of Ho Chi Minh, who had beena U.S. ally under Roosevelt. And the British ordered the Japanesetroops to be taken out of the internment camps, givenback their weapons, and reoccupy Indo-China. And you rememberthat history? What that led to? The wars of France inIndo-China, the other wars?How about the Dutch, what the damned Dutch did in Indonesia,in the same way? A long war, to suppress where thereshould have been development. The promotion of the split,the civil war, in India. And all through Africa! Africa is theworst of all cases! What the British have done in Africa, is oneof the worst crimes against humanity ever imagined. And thatstarted back with Kitchener, not with someone laterKitchener,in 1898.So, what we have is that.The UN Mission: To Liberate Colonial NationsNow, Roosevelts conception and alliance were based ona number of things, for the postwar period: The first thing was,bringing Russia and Chinaeven though China was a shatterednation in part at that timeinto a bloc to create the UnitedNations. And the United Nations was supposed to be a forum,for the liberation of areas which had been victims ofcolonialism, or similar kinds of things. To build up new nations,and to assist them in their development as new nations.And to build a community of sovereign nation-states on this

planet, of perfect sovereignty of each nation-state, but boundtogether by an understanding of the lessons of the recent war:What we had to do, to live with one another, and to achieve the


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common aims of mankinddifferent cultures, but the resultdesired is the same: the common aims of mankind, from theEIRNS/Helene MllerThe question before us, LaRouche said, is whether we can overcome the threatof a prolonged new dark age. There is only one pathway out: by returning to therepublican principles exemplified by the anti-depression policies of PresidentFranklin Roosevelt. It can still be done, but there is no time to waste. Above,

attendees to the Schiller Institute conference listen intently to LaRoucheswords.12 Feature EIR September 28, 2007top. To create a community of nations, which, as a force,would prevent anything contrary to that ever happening.And under a British policy, dictated to the United States,by treasonous elements in New York City and elsewhere, weadopted the opposite policy.Now, the first thing we did, under Churchills prompting,was to virtually declare war on the Soviet Union. And BertrandRussell, a great Liberal, proposedactually earlier thanhe published it, but proposed it earliera preventive nuclear

attack on the Soviet Union, even though the United States nolonger had the weapons to do that, because we had used up ourlast two nuclear weapons as prototypes on Hiroshima and Nagasaki;a totally unnecessary attack. Japan was already defeated;and the terms of surrender had been negotiated throughthe Vatican, with Hirohito. But under Churchills and Britishpressure, the Truman government did not accept the surrenderof Japan. All they had to do, was what was negotiated with theVatican office of special affairsthe man who later becamePope Paul VI [Cardinal Giovanni Montini]all they had todo, the one condition in the agreement, was to negotiate thesurrender with the office of the Emperor of Japan, the Mikado.Thats all they had to do. Because, the Mikado otherwise

would not have the authority to tell his own troops to stop thefighting.Japan was hopelessly defeated! The main island of Japanwas completely blockaded. U.S. air power and naval forces hadthem bottled upthey werent going anywhere! Either out ofthere, or in there. Supplies werent coming in; resources didntexist; it was a defeated and crushed nation, with one island,with a fragile control there. And we prolonged the war unnecessarily,because the British wanted us to do it!And then, in the process, we went ahead with this attack onthe Soviet Union, because it was believed, that the Soviet Uniondidnt have the capability of developing nuclear weapons intime to counter the British. Once they discovered, about 1948,that the Soviet Union was developing weapons which could dothatthen they changed their mind somewhat. And that wasthe end of Truman.The United States Becomes a Great PowerBut the rest of the policy was a return to the British Empire!And the British Empire was founded, actually, at theTreaty of Paris, the Peace of Paris, of 1763the same Treatyof Paris which caused the patriots in the United States to realizethey were going to have to fight to free themselves fromthe new British Empire, which led to the American Revolution.And only the traitors and scoundrels in our country stillfelt loyal to the British. The world has been living under a

British empire! We threatened that British Empire, as a nation,as the United States, with a defeat of Britains agents insideour own country: the Confederacy! The Confederacy was created


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by the British Empire, by Lord Palmerston.We defeated that, and we developed a continental nation,which had been our policy always: to accept the CanadianThree generations of treason: Prescott Bush and George H.W. Bush (left); andH.W. with little George W.: It was George W.s grandfather Prescott Bush,working for the Wall Street firm of Brown Brothers Harriman, who arranged, onbehalf of the British, to bail out the Nazi Party which was then bankrupt. He

saved the Nazi Party!September 28, 2007 EIR Feature 13border, accept the Mexican border,and have a border at the Atlantic andPacific Oceans. We would developourselves as a continental, sovereignnation-state.And we did it. We did it with thetranscontinental railroads and otherthings. We did it with immigrationfrom Europe and elsewhere. We tookwhole areas of land, brought Germans

from various parts of Germany, andbrought them into the United States,into the Dakotas and elsewhere, Nebraska.They were farmers. We gavethem tracts of land, we gave them assistance.We built a supporting system.We became the most powerful nationof any individual nation-state on thisplanetunder the conditions of civilwar!What this did in Europe, this unleashedin Europe a desire for freedomfrom the British Empire. It occurred

after the fall of Napoleon III in France,developments there. It occurred inGermany in a very significant way:Bismarck responded to the Americansuccess, and challenged the BritishEmpirenot seeking war, but challenging it in terms of economicdevelopment. Mendeleyev, the great scientist, attendedthe 1876 Convention in Philadelphia, and went back and convincedthe Czar to build the transcontinental railroad. Germanydecided to build railroads from Berlin to Baghdad.Great railroad building occurred. Great changes in the lawsoccurred in Germany, the Bismarck reforms, 1877-79, weredone directly in consultation with the United States, by leadingcircles in the United Statesthe Lincoln tradition.And the British Empire didnt like it. Because, if the nationsof Europe, the nations of Eurasia, were to develop theirown land-area with railroads, especially of the type we hadbuilt as transcontinental railroads in the United States, then,by means of railroads, you could develop more economicallyefficient methods of transporting goods, over long distances,than you could by water, by sea! This was the issue. If youhave internal control over your own territory, efficient internalcontrol, and modern technology, and modern science, you donot use inefficient methods of transporting goods, which is bysea, because you can transport by land. And every inch of

movement, on land, in mass transport, well organized, increasesthe productive power of the nations economy! Movementby sea, does not, as a movement by sea, contribute anything


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to the economy. The geopolitical fraud.And weve now entered a time, with magnetic levitation,and with the kinds of projects that Helga [Zepp-LaRouche]was reporting on earlier, weve reached the point, where wecan develop systems to take what has been previously consideredthe undevelopable or undesirable areas of the world,where development is potential. We now have the means, on

this planet as a whole, to transform the planet, to increase theproductive powers of labor, the ability to survive, to earn a decentliving, as never before in human history! With new formsof mass transit on land; with emphasis on nuclear power, onhigher forms than nuclear fission, in terms of developing isotopes,and things like that; to open up the unreachable areas,where raw materials lie on this planet, with vast populationsin China, India, and elsewhere, in great need of these kinds oftechnologies, these kinds of materials; we can now proceed toassure the provision of those materials for the development ofpeople, even in the poorest areas of the world. We now havethat potential. It lies before us.

What this represents: This represents a threat to Empire.The United States, which was the most powerful nation thatever existed in 1945, is now a piece of wreckage. And exceptfor nuclear weapons, it does not have much power in theworld. Ruined. The issue is, all the way, especially since 1648,since the Treaty of Westphalia, the issue has been the developmentof sovereign nation-states, according to the Peace ofWestphalia, throughout the world. We have demonstrated inEurope, in the United States, and elsewhere, that that can bedone. The thing is, to continue the job.Forest History SocietyUnder the brilliant wartime economic policies of President Abraham Lincoln, theUnited

States became a continental nation. We built a transcontinental railroad, brought immigrantsfrom Germany and elsewhere, to settle the interior. Here, construction is completed on theGreat Northern Railways transcontinental railroad, in Scenic, Wash., on Jan. 6.1893.14 Feature EIR September 28, 2007But! What that represents, the veryobjective of bringing about that kind ofworld, is a threat to the existence of empirein any form. And therefore, what theUnited States represented on the day thatRoosevelt died, was the greatest threat theBritish Empire had ever faced. And everythingbad, of importance, thats happenedto the world, since Roosevelt died,has been the result of forces centered inthe Anglo-Dutch Liberals of Europe, butwith treasonous elements in my owncountry. Treasonous elements, like someof our past Presidentsand idiots likeone of our present ones.And therefore, the geopolitical issueremains the same. Its not geopolitics ofland-area against sea. Its the fact that the

time has come, the long period of timewhen power lay with maritime power, asopposed to land powerthat has ended,


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technologically. Weve now reached thepoint that we can provide, by land, in developmentof land-area, a much greaterpower, much greater efficiency, in economy,than we could by sea. Oh, well use the ocean! The oceanhas a lot of minerals in it, we have to manage that. Well use itin many other ways. But the basic power, of productive power,

lies in that. And the productive power lies, not just in people;the productive power lies in the development of people:the development of their technologies, their freedom to invent,the power of discovery, the rejoicing in improvement.And therefore, thats what the fight is.And that has been the issue of wars! Ever since the Renaissance,the 15th-Century Renaissance: The issue of all majorEuropean wars has been that issue! Stop this system ofimperialismwhether its ancient Persian imperialism;whether its the imperialism of the Roman Empire, or theByzantine Empire, or the medieval Crusader/Venetian system,or the British Empire. The challenge to humanity is to

become human: We must get rid of this factor of empire.We must create a system of sovereign nation-states, whichis based on using the culture of a people, and the developmentof that culture, to enable people to participate with parity, inthe work of a community of nations, of sovereign nations, andto develop man as man can be developed.And thats what this crisis is all about.Long Wars to No PurposeIt didnt start recently. It didnt start with the death ofRoosevelt. It was there, already. It was the great, long-sweepingcrisis of humanity, from as far back as we know the insideof the history of any part of the world; back to about 700 B.C.,for Europe.

So, what happened is, the crisis were facing today,started as the Cold War. Now, the United States continuedto prosper, with some ups and downs, until the assassinationof John F. Kennedy; we continued to progress, but theevidence is all there. We dont need to discuss that. But thebeginning of the so-called Cold War, the war of recolonization,and the seeking of a war with the Soviet Union, forwhich there was no reason. Not on Stalins sideonly onthe British side.That is the beginning of the crisis, because, the geopoliticalissue was the motive of both London, and also of thoseforces centered in New York City, which we associate with thefinancier oligarchy, the people who were behind Hitler, andthe people who were behind this. At that point, it was impossibleto shut down the United States, as what it had becomeunder Roosevelt, because we had a great productive potential.The world had been shattered by war; Europe needed us to rebuild,the Soviet Union needed us to rebuild, China needed usto build, and so forth.So therefore, we went along with fits and starts, until theassassination of John F. Kennedy. And that was not an Oswaldmistake, nor was that a mistake of any side. It was intentional.The intention was to destroy the United States. John Kennedy,unlike his father, had come into the Presidency, under associationwith Franklin Roosevelts tradition. He campaigned for

the revival of the Roosevelt initiative.So you have a phase which is from 1945 to 1964, the assassinationof Kennedy and so forth63 and what happened


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afterwardyou have a period in which the UnitedLibrary of Congress/Victor Hugo KingThe United States progressed with fits and starts following the death of Franklin Roosevelt.President John F. Kennedy had attempted to revive the FDR tradition, but with hisassassination in Dallas, on Nov. 22, 1963, a phase-change took place. The crisis

wereliving through today, began with that assassination. Here, the President and First LadyJacqueline Kennedy, moments before he was shot.September 28, 2007 EIR Feature 15States economy is still powerful, and its still growing; thestandard of living of people is still increasing. Then somethingstartsand this is where the crisis begins. The crisiswere living through today, begins actually with the assassinationof President John F. Kennedy. The roots of the crisisalready existed. The roots of the crisis were the conflict betweenthe United States and the British Empire, essentially

since the time of Lincolns victory over the British puppetcalled the Confederacy. But the ability to wreck the U.S.economy, wreck the U.S. system, began with the assassinationof Kennedy.What happened was, of course, as you know, we got intothe war in Indo-China. There was never any damn good reasonfor getting into that war in Indo-Chinanone! We had thewrong policy, and we tried to shove the wrong policy downthe throat of Ho Chi Minh. Ho Chi Minh was a man who wasvery favorably disposed toward the United States. He hadbeen an ally of the United States, when Roosevelt was President!Any decent treatment of [Ho Chi Minh] by the UnitedStates would have been respected. It might have been difficult

but, diplomacy is always supposed to deal with difficulties.The fact that its difficult is no reason to avoid it.So, with this war, we did something which is the samething that was done by the Persian Empire to Athens, whenAthens committed a war crime against the people of Melos.And this led, through the introduction of Sophistry by the PersianEmpire; the Persian Empire had been defeated on the sea,it was outflanked, and therefore was defeated by land. But itconquered through the Cult of Delphi, through the corruptionof the Sophistry, which destroyed the morality of Athens, andinduced Athens to commit crimes against its neighbors and allies!Which continued as the Peloponnesian War. And Athenshas not come back since then!Over the history of mankind, since the rise of Europeancivilization, from about 700 B.C., centered on Greece andCyrenaica, as an ally of Egypt, and allied with the Ionians, andallied with the Etruscans, since that period of the birth of whatis a distinctly European civilizationwhich is unique; therewere traces of it from earlier times, but it was unique: Thiscivilization has been constantly destroyed, in itself, by thesekinds of methods.The method that is most frequent is long wars, like thePeloponnesian War, a war with no purpose; that is, with nomoral purpose; with no objective, with no strategic objective.A war, you get into with great reluctance and promptness,

when you must do it: You get through and get out, as quicklyas possible. You dont prolong a war. You dont want your nationfighting a war for two, three years. You want it short,


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snappy, and out! And the major weapon in warfare today, is,good diplomacy. Theres no condition or conflict on this planet,that can not generally be handled with diplomacy, or aidedby good diplomacy, including the whole mess in SouthwestAsia.All right, so we had that war.The Destruction of the United States

Then, we had the 68ersand this is something thats avery sensitive subject in Europe, as well as in the UnitedStates. What were the 68ers? Go back to the early 1950s andthe middle of the 1950s; you take two books, which were ratherpopular in that period: One was called White Collartheearlier one; the second was called The Organization Man. TheU.S. population of my generation had childrenthey hadchildren whom they taught a certain ideology, which theywere conditioned to teachwhich became known as theBaby-Boomer generation. It was not a biological generation,it was a cultural generation; or, I used to call it a cultural degeneration.So, this generation has a peculiarity, strategically, which

you will not find in history otherwisenot to my knowledge,not in the history of the United States since my first ancestorlanded there in the early part of the 17th Century. Every culturaltradition in the United States, as generally in Europe, hasbeen, the individual person thinks of themselves as an adult,as being an adult generation which is going to produce a generationof children, which are in turn going to produce a generationof grandchildren. So the normal sense of self-interestof a healthy person in a healthy culture: They know theyregoing to die; and thereforeobviously, the purpose of livingis not to dieits a contingency of life; its not a purpose oflife. The purpose of life is to use what you have, as a life, inyour development, in your self-development, in what you

think is good, in what you are going to contribute, to at leastyour children and grandchildren. Thats elementary moralityin virtually any part of the world, where there is morality.The Baby-Boomer generation did not have morality. Andthat is not a biological generation; that is the so-called whitecollargeneration of a group of people who were educated inthe same way that Sophistry was produced in Pericles Athens.By a corruption, a cultural corruption, introducedanexistentialist corruption, of the type typified by Hannah Arendtand Theodor Adorno, and so forth in Germany; and alsoBertholt Brecht. This corruption, this Dionysian, Nietzscheancorruption of the culture, was induced as a method of educationand family culture, in the United States. This was associatedwith a period of a reign of terror, which some peoplethink of as the name McCarthyism: That if you wanted tohave a secure position, and gain an advantage, well, you hadto get through a university, you had to get employed in a placewhere you could get a security clearance; otherwise, youcould not get the kind of household you wanted. But as a conditionof keeping your security clearance, on various levels,both formally and otherwise, you had to behave in a certainway. And the main thing was to instruct the children not to doanything that would get their parents, and their fathers income,into trouble. Because all this juicy middle-class incomewould vanish!

This generation then went through the shock effect, aschildrenthey were born largely between 1945 and 1958, be16Feature EIR September 28, 2007


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cause it was in the earlier period that the adult members of thefamily of the so-called white-collar class, developed this ideathat they had made it. They were not like the blue-collarpeople whom they treated as inferiorfarmers, blue-collarworkers, so forth, Oh, theyre inferior. We are the goldengeneration. We have the jobs in the corporations, where werewhite collar. Were engineers, were this, were that! Weve

made it! Were the Golden Generation! And they imbued thisidea in their childrens generation as an ideal standard of dynamics.And so, thus, this thing came to an end, because the 57-58 depression spoiled the party for the parents of the Baby-Boomer generation.And we had the explosion in Europe, as in the UnitedStates, for the same general reasons: the so-called 68er explosion.The 68er explosion was pre-orchestrated, it was pre-orchestratedfrom the beginning of the postwar period, as anoperation to destroy culture. As in the Paris Review, for example,which is one of the abominations which typifies this

systemic destruction of culture, by people who remain my enemiestoday, like John Train, and his crowd there.So, we were destroyed. Now, this is the generation whichhated blue collar! The youth, the 68ers, they hated blue collar!They hated industry. They hated technology. They hated Classicalculture. And from 1968 on, they did two things: Theydestroyed the Democratic Party inside the United States, becausethe division between blue collar and white collar insidethe Democratic Party on the issue of the Vietnam War and soforth, that destroyed the Democratic Party! That brought usNixon and the Nixon Administration. And the Nixon Administrationwas a vehicle to proceed with the actual destructionof the U.S. economy. From the day that Nixon entered office,

virtually, and said that he was a man of Adam Smith, that wasthe beginning, that was the signal. And from there on, we wentthrough this.So, we went through several periods, and Ill go throughthis, identifying this. Remember, this is against the backgroundof the prolonged Indo-China War, 1964-1975, approximately,this period, 72-75. The Indo-China War was themarker which produced the Hate Generation, called the Baby-Boomer Generation. And that generation said, no nuclearpower, no technology, no more investment in infrastructure.We wanna smoke our pot, and take our LSD. We want ourcrazy sex life. We invented new sexeswere going to trythem all out.So, what we went through, with the floating of the dollar,we broke up the Bretton Woods system, and we started a processof liberalization which is the root of the destruction of theeconomy and financial system of the world today, especiallythe United States and Europe. We went through a secondphase, the destruction of the economy, the Trilateral Commissionthing, of that crowd. What we did is, then we destroyedthe structure of the economy: The first thing they did, they orchestratedThree Mile Island, and that was an orchestrated operation,and that was to get rid of nuclear power. Thats howthey did that.The Baby-Boomer

generations contemptfor anything connectedwith blue-collar work


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extended to anythingproductive: technology,industry, nuclear power.Boomers were easilymanipulated by suchfrauds as the Three MileIsland hoax, which was

used to shut downnuclear power in theUnited States. Here,TMI, on theSusquehanna River atHarrisburg, Pa.September 28, 2007 EIR Feature 17They also destroyed every method of stabilization whichhad been set up by Roosevelt for the internal economy. Theyunleashed a reign of usury. They wiped off the books, all antiusurylaws in the United States. They destroyed the mortgagesystem, under which housing had been developed in the postwar

period. And the banking system, the kind of banking, realestate banks which were associated with the promotion of thehousing industry, and continued to loot it.So, by 1981, wed gone through two phases. We had destroyedthe international monetary system on which our livesdepended, and we had destroyed the internal integument ofthe political-economic culture of the United States.In comes Reagan: And for peculiar reasons, you had a lotof Democrats who had left the Democratic Party and wentover to Reagan, because they hated the Democratic Party somuch, in what it had done in destroying the economy, and destroyingthe social life of the country.So, this led into a period of continued collapse of the U.S.

economy, over the period 1981 to 1987. In October of 1987,in the first two weeks of October, we had a 1929 depression,in terms of the markets. The collapse was that deep, just asdeep as had occurred under Hoover. But what happened? Adecision was made. Paul Volcker at that time was chairman ofthe Federal Reserve Board, and Paul was uncertain aboutwhat to do. But Alan Greenspan, who had been nominated totake the position, said, Hold everything, Im going to fix everything.Im coming in. So we went through a monetary lunacyperiod, of 1988 to 2007, and to the present day, in whichwe have destroyed much of the worlds economy.For example, the physical economy of the United States,the industrial economy of the United States depends uponwhat? It depends upon military-related production: Halliburton,for example. The war in Iraq is a way of makingmoney for firms which are producing military goods, anddoing military things, in civilian guise, for that war. Whatweve done with these things: We have changed the characterof the society.The Revolution in Military AffairsAnd theres one thing thats most important through all ofthis process: Remember, theres a book by Samuel P. Huntington,called The Soldier and the State. And The Soldier andthe State is actually an echo of not only the Nazi system, theNazi SS system, but also, earlier, the Roman legions. This is

called, in the United States today, the Revolution in MilitaryAffairs. This is whats being conducted: is to create privatearmies, that is, eliminating all militarythats why theyre


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not too unhappy when the U.S. military goes down in Iraq,because theyre eliminating every part of the military, exceptthe Air Force, and related systems. Because, the objective, underthis regime, if it continues, was to have space-based systemsof delivery of weapons, so that you could, on some placeon Earth, with a monopoly of weapons based in space, youcould push a button and annihilate any part of the human race

you chose to eliminate. So they want a space-based system, aninternational space-based system, which can exert tyrannyover the world, in the way the Roman legions tried in the timewhen they were doing that sort of thing.The policy of the United States has been, since the timethat Dick Cheney was put into the position of Secretary ofDefense, in the first Bush Administration, has been this policy:the Revolution in Military Affairs. People like GeorgeShultz, are part of this; Felix Rohatyn, a real fascist little dictatorin finance, is part of the same thing: Revolution in MilitaryAffairs.The other side of this thing, is globalization. A feature of

globalization is this so-called global warming hoax, forwhich there is no competent scientist, who believes in globalwarmingunless hes a liar. He cant believe in it. It contradictsall science, and theres no evidence to support it. But thegreen philosophy, just as the green philosophy was used todestroy nuclear power and other things in Germany, this ideologyis one of the weapons, together with the Revolution inMilitary Affairs, which characterizes a change in the culturalcharacteristics of the population of the United States and othercountries.This is another version of the Apollo-Dionysian cult tradition,which is what we saw with the Paris Review, for example,back in the 1950s, and so forth.

Now, this is what Eisenhower defined, in his last days asPresident, as a military-industrial complex. Thats themeaning of military-industrial complex. But what hemeant, referred to what had happened under British directionwith the death of Franklin Roosevelt and Trumans entryinto the office: We have been on that road, toward thisreform in military affairs to eliminate the citizen army!To eliminate national military forces, as national forces,and to turn more and more of control over military powerinto private hands, in the hands of supranational agencies.This is true empire! This is the New Empire, the new formof what was proposed to the head of the British operation,Lord Shelburne, by Gibbon in the Decline and Fall of theRoman Empire.Again, the center of this is the Anglo-Dutch Liberal system,typified by the British Empire. Thats where the problemlies.So, this is not a war among nations. This is not wars amongnations. This is not strategic conflicts among nations; this isnot what runs this thing. What runs this thing, is a struggle, ofthe legacy of empire, and the form of empire, from before thetime of the great Council of Florence in the 15th Century, tothe present. Its the determination to eliminate the sovereignnation-state as an institution from the planet, to establishwhats called globalization.

Maastricht vs. the Nation-StateFor exampleand Ill get to this, under the next headingherebut, the problem were facing today, is that Europe, in


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18 Feature EIR September 28, 2007particular, Western and Central Europe, do not function. Whydont they function? Because Maastricht, in its present implementation,has destroyed the effective sovereignty of the nation-states of Western and Central Europe. Sovereign decisionsbased on national interest are no longer a right of thepeople or governments of these nations, as long as this arrangement

continues to be the case. The Maastricht Treaty didit. Therefore, the great reform, which Im coming to now,which we have to make, can not be undertaken, initiated, fromanyone in Western or Central Europe, not by any government;it cant be done. They have lost their independence! Theyvelost their sovereignty! Maastricht took away the sovereignty.Maastricht proposed it as a British proposalbut they didntjoin it. It was meant for others consumption, not theirs,hmm?Therefore, we depend upon those nations which still havea sense of sovereignty, and power, as a combination, to makethose reforms which eliminate everything that went wrong, in

general, from the time that Franklin Roosevelt died. Thatswhat the issue is. Thats the issue of every struggle on thisplanet of any significance.Therefore, we depend upon getting the United States torecognize its own self-interest. And this bill that Ive proposed,which is being pushed now, by people in the Congress,on this protection of housing and banks, this is simplythe kind of measure that will mobilize the Americanpeople to take back their sovereignty, their sense of sovereignty.Under those conditions, conditions in which thePresident of Russia has been assiduously pursuing somekind of cooperation with the United States, and correctlysosince the time Putin met Bush for the first time, Putin

has stuck to that policy, repeatedly. Hes continuing it now.There are important parts of the U.S. institutions which arecontinuing that discussion, with the Putin government. Youwould be surprised at some of the names involved in that,but its there.Only by the United States realizing that potential, andcoming to an agreement with Russia, which also has to bein an agreement with China and India, would we have apossibility of an initiative, to change the way things are goingnow, away from doom, into an immediate change into anew system. That does not mean were talking about fourpowers to run the world. It means, we need an initiatingforce, around which the nations of the world can rally. Theyneed that. They need an initiating force, of authority, aroundwhich they can rally to say, Me, too. Then we can use theUnited Nations, and what that implies, as a vehicle for whatRoosevelt had intended, to create a system of sovereign nation-states, and nothing but sovereign nation-states, on thisplanet.So therefore, thats where the problem lies. Go back to thedeath of Roosevelt: Thats the problem! And all the otherthings are diversionsoften caused by people who try to distractour attention from what the real issues are.Creating a Public Credit SystemThis involves, now, a special problem. And this is where I

become somewhat technical, but its necessary: There is noway, no conceivable way, in which the existing monetary-financial


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systems, among nations, or of any nation, could besalvaged. The degree of bankruptcy within the existing financialsystems, is so far gone, there is no possible way of refinancingany part of this, within the terms of the system.Theres only one thing you can do, and from that flows theonly method that can work: What you can do, is put the entire,international monetary-financial system into bankruptcy.

Now, thats easily done, technically. Because these systemsare so intertwined with each other, there is no such thingas a national monetary-financial system. The banks of theUnited States, the banks of Europe, dont own anything! Theyare controlled by the hedge funds. The hedge funds have beenusing the banks like toilets; they visit once in a while for comfort!Banks dont have resources in them. Its not a matter ofsettling how many dimes for a dollar. Its impossible. Thereare no reforms within the framework of the system that canwork! Not only because it cant work on a national basis, andbecause it cant work for a system as a whole. The monetaristscan all be unemployed: We dont need monetarists any more.

Matter of fact, we would like to get rid of them!Because, were going to have to go to a completely newworld system, and its going to have to go by a certain kind ofstep. And this is the remedy: What has to be doneand mylittle proposal for this new legislation, for Federal protectionof households, mortgaged households, but households in general,and banks; that is, legitimate banks, banks that actuallytake deposits and loan money, and conduct that kind of business.We need them, and everybody knows that. You needthese banks, because those are the ones on which the communitydepends, for managing its affairs. Without these banks,communities dont function. So those banks, even if theyrebankrupt, are going to be protected under this act.

Secondly: No householder can be put out of their homebecause of foreclosure. Were going to settle it? No! Were notgoing to settle anything! Were just going to take all this wholepackage of mortgage paper, were going to take it, in one bigpackage, and say its all frozen. Its all taken in receivershipby the Federal government. And its going to sit there. Andwell arrange that the people who live in those houses will paysomething to the relevant bank on that account, every month.But they will stay in their houses! We are not going to try tosettle the accounts, because we know that the value of thesemortgages is going to collapse to a very small fraction of theirpresent nominal value. So any attempt to write down some ofthe mortgages, or buy off part of it, is not going to work. Becausethe intrinsic value of these mortgageswe dont knowwhere it lies, but it lies way down there, someplace!And therefore, our problem is, to prevent a disruption ofthe U.S. economy, in particular. Therefore, how do you preventa disruption? Well, you freeze it! Its like taking a firmSeptember 28, 2007 EIR Feature 19into bankruptcy, into receivership for protectionyou freezeit.It now lies in the Federal government. The Federal governmentis now responsible, at some time in the future, toclean this mess up. In the meantime, its frozen. The peoplewill stay in their homes; they will pay a reasonable amount, as

the equivalent of rent, into the accounts against these mortgages.But the mortgage will sit there in the banks! Were notgoing to try to renegotiate them now.


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In other words, were creating a firewall, against a chainreaction, already in process. We will have to do the same thingin other categories. What does that mean? It means that theFederal governmentand we recommend this heartily to Europeanand other governments to do the same thingfacedwith this situation, you have to realize that you have to eliminatethe factor of the present system, from the economic and

related life of the people in the nation. And its only by neutralizingthat, by putting it in a cagelike a little squirrel in acage, let it spin as fast as it wants, but its going to stay in thatcage. Because were going to a new kind of system.Were going to get out of a monetary system which is thebasis for empires, of the type weve been discussing, andwere going to a public credit system, which is what the UnitedStates Constitution prescribes. The U.S. Constitution says,Were not owned by banks. Were not owned by bankers. Weown the bankers. Because, in our Constitution, the printing,or uttering of money, or the uttering of a promise to deliver acreated money, is the power of the Federal government. The

states have no power to utter money. Only the Federal governmenthas the power to do so, and does so, only with the consentof the House of Representatives.Now, the uttering of money, under this kind of system, isa credit system, not a monetary system. The government uttersthe currency, or utters the credit, against an issuable amount ofcurrency, as the Congress has allowed it to do: The Congressvotes a bill; the government can now utter so much currency,which will be charged to the debt of the United States. That isthe equivalent of money.What do you do with it? Well, you can do necessary things,but you also do something much more fundamental: You usethis money, that youve created, this credit, you use this for

large-scale infrastructural development, primarily. BecauseEIRNS/Stuart LewisUnder LaRouches Homeowners and Bank Protection Act, no onewill be put out of their home because of foreclosure. This photo wastaken in Leesburg, Va., ground zero for the housing bubble.Only the Federal government, through the U.S. Treasury, has thepower to create money. Ours is a credit system, not a monetarysystem, which will issue credit for primarily large-scaleinfrastructure development, to rebuild the physical economy of theUnited States.20 Feature EIR September 28, 2007large-scale infrastructural developmentand were way shortof it in the United States and in Europe, right nowit meansall the things that are the public sector: power stations, masstransportationsystems, health-care systems, so forth. Theseare things which are essential to all parts of the population.They have no control over their need for themhmm? Theyare facilities on which we depend. So therefore, we issue credit;we issue credit for fixing up infrastructure, maintaining it.Now, when you start to fix up infrastructure, then you reallyput the rest of the economy to work, in contributing to thiswork of building up the infrastructure. So now, you issuecredit to people who are doing that. Now, youre into the privatesector, and youre bringing in firms which supply this orthat facility, this or that job. And now, you are stimulating the

business, in the community, through infrastructure for the future.And youre doing it in a way which keeps a balance betweenthe ratio of the public sector and the private sector.


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But how is this going to function? Lets take another problemhere: We have now a floating condition of currencies. Underfloating conditions of currencies, the price for lending isuncontrollable. Because, if the currency that youre dealingwith is dropping in value against your currency, what are yougoing to charge for your interest rate? So, under a floating exchangerate in a declining economy, the tendency is, on the

one hand, for a demand for cheap credit, and on the other, adenial of a possibility of generating it through the private sector,or through central banking.So therefore, we have the problem, that, for global development,we must have a fixed-exchange-rate system internationally.What does that mean? Essentially, you try, as close aspossible, to actually freeze currencies at their present relativevalues. Freeze them.And then go to a state public credit system. How do youdo the state public credit system? Well, we have China, wehave India, we have Russia, we have the United States, andother nations, which all need a lot of things. And these things

involve a heavy reliance on trade, trade goods. So therefore, ifwere going to have lending and credit issuing across nationalborders, we must have a fixed-exchange-rate system. Otherwise,how are we going to determine what the rate of interestis going to be, in terms of medium- to long-term loans?So, now, what do you have to do? You say, whats the basisfor an international credit system? Is it a monetary system?No. The monetary system was a bad idea, didnt work out toowell. We get rid of that. Were going to have long-term treatyagreements. What do I mean by long term? I mean 25, 50years, minimum. That governments, of the world, will enterinto treaty agreements, long-term treaty agreements, in theform of trade and related agreements, in a fixed-exchangerate

system; and instead of trying to balance the system by let-LPACA table of organization for a U.S. economic recovery. A National InfrastructureBank will issue credit for large-scale physical-economicdevelopment; this will be correlated with Federal legislative initiatives, creating millions of new productive jobs both the publc and privatesectors, as shown here. For a full discussion, see: www.larouchepac.com/files/pdfs/070810_fdr_era.pdf.September 28, 2007 EIR Feature 21ting currencies float, you balance thesystem, by letting the prices of goodswithin currency domains, float, withina regulated range.So, the problem here, is that, onthe one hand, we must immediatelytake this action. We must immediatelybring a group of nationsand weretalking about weeks, now, because thisthing is blowing! This is finished.Theres no bottom to this crisisnone!You either stop it, by the methods Iveindicated, or you dont stop it at all!And pretty soon, you have somethingworse than Germany, 1923.You have no choice, that is, no rational

choice. Do this, or else, theworstll happen to you.So, governments will tend to go


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along with this, only when they perceive,that they have no choice. Somegovernments are clinically insane, andwont go along. So therefore, we needto have a stable system, created byagreement among a growing numberof nations who are joining the list of

those who enter this agreement. And,essentially, we will try to reform theUnited Nations Organization, to performa function in accord with thistype of agreement.Creating the FirewallNow, in order to do that, youre making a transition from amonetary system to a credit system. You have to make it turn ona dime. Because a week of chaos, or two weeks of chaos, maydestroy your countryyou cant have it. So therefore, youhave to come in with a firewall. And the housing and bankingprotection act is a firewall: The Federal government takes this

categorythe housing market poses a threat, a threat to thebanking system; its a threat to the entire system. Therefore, wemust protect those two pivotal elements of the economic system,otherwise, we dont have a chance of surviving!Are we willing to plug the hole in the bottom of the boat?If were not, were not fit to survive. And our elimination willprobably help the human race of the future.So therefore, we need a method of firewalls; now I mentionedtwo kinds of firewalls. I mentioned this act; its a firewall.It is a feasible form of firewall under U.S. law. We just need thatone piece of legislation, no more complicated than what Ivewritten. That piece of legislation will create a firewall.Now, we need another firewall: We need a firewall for the

transition from the way the U.S. financial system is operatingnow, to what we are installing. We also need, in that, we needa firewall in the form of treaty agreements among a powerfulaggregation of nations. In other words, if the majority of thepowerful nations of the world agree that something is going tobe protected, it can be protected. Without such an agreement,it cant be protected: Thats a firewall. If these nations agree tocome to each others support and defense, on this issue, knowingthat its their interest thats at stakea firewall, a transitionfrom a system that has failed, the Cold War system, thepresent system, the globalization system: These systems havefailed. We must, with one fell swoop, get rid of them! Well,you can not reform them, piece by piece: You have to create afirewall, to contain the disease.And you have to have the backing and support for thisfirewall, from a sufficiently powerful group of firemen, firefighters.Those firefighters are powerful governments, whoagree to cooperate with one another to defend each others interest,their mutual interest: the same thing as the Treaty ofWestphalia, the Peace of Westphaliathe interest of the other.The nations know theyre going to Hell, if they dont protectone another. Therefore, the interest of that nation, just as thepeople in the Peace of Westphalia after the Thirty Years War,knew: They had to go to this, to protect themselves! They hadto put the interest of the other, first! And that had to make that

a firewall, and all decent European civilizations since thatIn addition to the firewall needed to protect our population from economic chaos, we need a


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firewall, LaRouche said, in the form of treaty agreements among a powerful aggregation ofnations, who will come to each others support and defense, to build a new, anti-globalizationsystem. The historical model for the kind of firewall needed today is the 1648 Treaty ofWestphalia, which ended the Thirty Years War in Europe, by placing the advanta

ge of theother above selfish interest. This painting by Gerard ter Borch depicts the signing of theTreaty.22 Feature EIR September 28, 2007time, depended upon that 1648 Treaty of Westphalia. We needthe equivalent now: Firewalls!And we need, above all, to educate people, to understandthat there is no alternative. Because there is no alternative!The boat is sinking! Fix the leak, or get off the boat! Dont tryto get a better stateroom.Theres a principle involved in this, which is a sticking

point: Most systems, economic forecasting systems that areused, the formal ones, the mathematical ones, are junk. Agood economist does not depend entirely on figures. A goodeconomist always looks behind the figures, to what the realityis. He does not go by the financial figuresnever believe anaccountant. Use the accountant, employ the accountant, butnever believe what he writes. You need his figures, you needhis head, but youre going to have to

euraisian land bridge

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