Volume 8, Number 20, May 19, 1981



Middle East Report

by Robert Dreyfuss

Armand Hammer plots against Riyadh

Dateline Mexico

by Josefina Menéndez

Restricting imports, stepping up exports?

Energy Insider

by William Engdahl

Michael Halbouty discusses the U.S. oil exploration potential.

Congressional Closeup

by Barbara Dreyfuss and Susan Kokinda

Eye on Washington

by Stanley Ezrol


Washington’s Currency Warfare Against Europe

by Kathy Burdman

High U.S. interest rates have already incited a capital drain there; currency nonintervention could be the coup de grace.

Documentation: Interviews with Citibank’s Harald Cleveland, the IMF executive director for the. U.S., and a White House source.

Foreign Exchange

by David Goldman

The new “malign neglect.”


by Kathy Burdman

No mortgages yet from Merrill, Lynch.


by Susan B. Cohen

Spotlight on exports.

Water for Mexico’s Agriculture

by Patricio Estevez and Eduardo Quiroga

Mexico City correspondents provide a progress report on the central hydraulic plan for the northeast region: Part II of our Sonora report.

Currency Rates

World Trade

by Mark Sonnenblick

Business Briefs

Special Report

Will the American Economy Survive a New Credit Crunch?

by Richard Freeman

Why the Fed’s interest rate hikes will accelerate both inflation and industrial asphyxiation.

The Debt Time Bomb Volcker Has Triggered

A secular survey of the liquidity-that is, illiquidity-of the U.S. economy.

Documentation: Eleven graphs and tables.


The ‘LaRouche Doctrine’ on Israel and the Holocaust

by Lyndon H. LaRouche, Jr.

Writing from West Germany, EIR founder Lyndon H. LaRouche, Jr. discusses how the principle of national sovereignty and the lessons of Nazi extermination apply to policy by and toward Israel.

Documentation: Excerpts from statements by President Reagan and Prime Minister Begin.

Britain’s Anti-Technology Networks Sponsor New Disarmament Campaign

by Luba George

Part 1 of an intelligence dossier on the “peaceniks.”

Western Powers Leave Teheran Up For Grabs

by Thierry LeMarc

Thierry LeMarc analyzes the shifting strength and composition of the opposition to Khomeini, and the “vacuum” in U.S. and European policy toward Iran.

Trudeau Takes Aim at Quebec’s Waterway Expansion Program

by Pierre Beaudry

Fuel taxes are jeopardizing Canada’s transport system.

International Intelligence


Foreign Policy Progress and an Array of Traps

by Richard Cohen

Richard Cohen reports from Washington on the Administration’s positive moves and shaky assets.

China Card Faction Boosts Pol Pot

by Richard Katz

One of the worst foreign policy tracks: aid and comfort to Pol Pot’s forces.

‘U.S. Policy Is Population Triage’

by Lonnie Wolfe

A further report on the RAPID/Global 2000 network in and around the State Department.

Documentation: Interviews with population strategists Philander Claxton and Marshall Green.

The Next Stage for Abscam/Brilab

by Scott Thompson

To the extent that this Administration won’t tolerate pure frameups, a “Reagangate” against the executive branch is in the cards.

The Liberal PACs Team Up Against Moderate Congressional Democrats

by Barbara Dreyfuss

The Harriman crew and the Buckley types explicitly target Representatives Wright, Jones, and Rostenkowski as too pro-growth.

National News