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

Published: Tuesday, Mar. 8, 2005

Today is:

Volume 4, Issue Number 10

This Week You Need to Know:


by Lyndon H. LaRouche, Jr.

The following is the foreword to the forthcoming book Earth's Next Fifty Years, to be issued by LaRouche PAC.

February 28, 2005

The Spring 2000 collapse of Alan Greenspan's "IT" financial-derivatives bubble of the 1990s, set the stage for the immediate onset of what has been the George W. Bush Administration's accelerating, 2001-2005, general economic breakdown-crisis of the world's monetary-financial system.

This breakdown is not something which might happen, or soon will happen. It has been happening already, that at an accelerating rate, every day President George W. Bush, Jr. has remained in office. The end will come when the Bush trolley soon reaches the end of the line.

The five pieces comprising the following pages of this volume summarize both the interrelated deep causes, and the essential replacement for the inevitably doomed present world monetary-financial system.

The first lesson which must now be drawn from that experience, is that there is no way in which the world monetary-financial system set into motion during 1971-1975, can now be continued much further. In other words, there is no way in which the kind of thinking which is dominant among leading business and political circles of the world, even still today, would not lead the world as a whole, very soon, into a hopeless situation.



Latest From LaRouche

Dialogue with Lyndon LaRouche: The Passion To Communicate Profound Ideas

Here are selections from the discussion with Lyndon LaRouche following his Keynote address Feb. 20, to the Presidents' Day weekend conference of the LaRouche political movement. The complete transcript of LaRouche's Keynote, "The Great Crash of 2005" appeared in the March 7 issue of New Federalist. The two questions posed here are from members of the LaRouche Youth Movement.


Animation Studies of the
U. S. Physical Economy

(Provided and Funded by
Lyndon LaRouche's Political Action Committee.)

The Economy

World and Nation-State

This Week in History

March 7-13, 1933

First Fireside Chat

President Roosevelt Averts a Banking Collapse During His First Week in Office

Probably no U.S. President except Abraham Lincoln had ever entered office under such crisis conditions as did Franklin Delano Roosevelt on March 4, 1933. There were four months between Roosevelt's election and his inauguration, and during those months the Depression escalated toward intolerable conditions. The defeated Herbert Hoover, instead of adopting measures to save the American population, concentrated his efforts on strong-arming President-elect Roosevelt to support his high-tax policies, and keep America on the gold standard. A heavy run on gold in 1932 had caused serious deflation in America, and when Britain and other European nations went off the gold standard, America's exports went down by half.

Then came another attack on the American economy by desperate, largely European, speculators, which drained off millions in gold. The situation of American banks and their depositors was desperate. From 1930 until March 3, 1933, a total of 5,504 banks had shut their doors, representing deposits of over $3 billion. As the Inauguration approached, more and more Americans, desperate for money, and worried about the solvency of their banks, withdrew what money they had.

As President Roosevelt wrote: "This situation was indicative of the fear, bordering on panic, which had seized the people of the Nation as the depression deepened, as unemployment increased, and as the Government remained stagnant in the face of impending disaster. In the absence of any governmental action to assist in the general unemployment situation and in the industrial and agricultural crisis, people began to fear for their savings in banks and were withdrawing large amounts in the form of currency and gold, and putting the money in various places of hiding....

"In different States, the State Governments were trying to do something to help. Even as early as February 4, 1933, it was necessary for Louisiana to declare a one-day bank holiday. Michigan followed on February 14th with a four-day holiday, which was later extended. On February 25th, Maryland declared a holiday, which was followed by restrictions on bank-deposit withdrawals in Indiana, Arkansas and Ohio.... By Inauguration Day, practically every bank in the country had either been closed or placed under restrictions by State Proclamations....

"I had come to the conclusion ... that the "Trading with the Enemy Act" of October 6, 1917...was still in effect. This Act gave the President power to regulate or prohibit transactions in foreign exchange and in gold and silver, and also to prohibit the hoarding of gold, silver coin, bullion, and paper currency. I determined to use this power to close all the banks in order to prevent complete chaos on the Monday following Inauguration Day, which was a Saturday."

Roosevelt then issued a Presidential Proclamation on March 6, declaring a national bank holiday, to be continued through March 9, which was the day of the convening of the U.S. Congress in extraordinary session. Roosevelt had called for the session in a Proclamation issued the day after his inauguration. He stated that the purpose of closing all the banks was fourfold: "First, to prevent continued runs on banks which would enable one depositor to obtain an unfair advantage over another. Second, to permit the reopening of all sound banks in an orderly manner. Third, to keep closed the many banks which were insolvent and to permit their liquidation in a just and orderly fashion. Fourth, to permit a resumption of banking under circumstances which would instill confidence in the people as to the solvency of their banking system."

When Congress then passed Roosevelt's Emergency Banking Act on March 9, the bank holiday was extended in order to give the government time to reorganize the banking system. The Act provided for massive influxes of credit into the system by authorizing national banks to issue and sell their preferred stock to the Reconstruction Finance Corporation. This permitted them to obtain funds without creating claims superior to the claims of their depositors. The legislation also made it possible for any member bank to meet all demands for currency so long as it had sound assets, because it could borrow against these assets from the Federal Reserve banks.

While the reorganization was in progress, President Roosevelt issued an announcement that he would speak to the American people via radio on March 12. Roosevelt stated that "The Constitution has laid upon me the duty of conveying the condition of the country to the Congress assembled at Washington, I believe I have a like duty to convey to the people themselves a clear picture of the situation at Washington itself whenever there is danger of any confusion as to what the Government is undertaking. That there may be a clear understanding as to just what has taken place during the last two days since the passage of this Act it is my intention, over the national ratio networks, at ten o'clock Sunday evening, to explain clearly and in simple language to all of you just what has been achieved and the sound reasons which underlie this declaration to you."

This was the first of President Roosevelt's "Fireside Chats," but it was also the method that he had used as Governor of New York State. In those days, his office had sent press releases to the state's local papers, but most of the newspapers were Republican outlets, and would not print the releases. So, the state Democratic Committee bought radio time once a month so that Governor Roosevelt could talk to New York's citizens about his policies and programs.


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Put Out the Flames Of the Oligarchy's Thirty Years' War
by Helga Zepp-LaRouche
Here is Mrs. LaRouche's keynote speech to the Schiller Institute/International Caucus of Labor Committees Presidents' Day weekend conference on Feb. 19, 2005. She was introduced by civil rights heroine Amelia Boynton Robinson, the vice president of the Schiller Institute in the United States, who turned the podium over to LaRouche Youth Movement activist Erin Smith. The keynote was entitled: 'It's Time To Put Out the Flames of the Thirty Years War: Let's Create a Beautiful Mankind!'

U.S. National Studies:

Bring Back FDR's Democratic Party
by Debra Hanania Freeman
... the spokeswoman for Lyndon H. LaRouche, Jr. She gave this speech to the Schiller Institute/ ICLC conference on Feb. 20, in a panel with Jeffrey Steinberg and Harley Schlanger.
As Jeff said, the last time that we met here—it's really, in some ways hard to imagine that it was less than six months ago. But, it was a Labor Day weekend conference.Wehad just come out of a very significant intervention in the Democratic Convention. And I just want to remind people what the situation was during the course of that convention. We went in there, with about 100 members of the LaRouche Youth Movement. And we met a Democratic Party that was in complete chaos. They had no platform to speak of. The convention itself got more boring as it proceeded. And it was without question the case, that the activity of the LaRouche movement, the singing of the youth, and most importantly, the saturation of the city of Boston with Lyn's Platform statement, really became the basis for any legitimate discussion that went on there.

Hitler on Steroids: Nietzschean Roots Of the 'Governator'
by Harley Schlanger
...West Coast spokesman for Lyndon LaRouche, gave this presentation to the Schiller Institute/ ICLC Presidents' Day weekend conference on Feb. 20. In the Summer of 2003, a former child actor named Gary Coleman announced his candidacy for the governor of California. Within days, he was joined by pornographer Larry Flynt and more than 130 others, including a former steroidpopping, female-groping body-builder, and Hollywood action figure, Arnold Schwarzenegger. As became very clear, this was going to be a very different kind of campaign.

A Strategic Mission: Make Bush a Lame Duck
Jeffrey Steinberg, a member of the Executive Committee of the International Caucus of Labor Committees and co-editor of counterintelligence for EIR, addressed these remarks to the Schiller Institute/ICLC conference on Feb. 20.
...Lyn had said, during the Presidential campaign—both during his own campaign for the Democratic nomination, and then afterwards during his campaign in support of John Kerry and John Edwards— that he was backing Kerry and Edwards, because the alternative was unthinkable. And he furthermore said, that if Bush and Cheney were to be re-elected, that there would be more wars. And he specifically talked about the targetting of Iran, Syria, and North Korea.


Social Security: No, It's Not the Demographics, Stupid
by Dennis Small
It's pretty much the way Lyndon LaRouche called it, back in mid-February. If the LaRouche Youth Movement does its job, he said, and makes sure that the Democratic Party and sane Republicans get into fighting shape against the Bush Administration's plan for Chilean-style privatization of Social Security, then that fascist policy can be turned into a loser for Bush. That is essentially what has transpired over the last 2-3 weeks, as we report elsewhere in this magazine. But, LaRouche warned at the time, do not expect Bush to stop the privatization drive, no matter how unpopular it becomes...

  • Mexico's Privatization: A José Piñera Disaster
    by Dennis Small
    In an April 10, 1998 open letter to President Bill Clinton, José Piñera, the architect of Chile's fascist Social Security privatization, wrote: 'This [Chilean] success has led seven other Latin American countries—Argentina, Bolivia, Colombia, El Salvador, Mexico, Peru, and Uruguay—to emulate our example in the last five years.' Let's look at what Piñera and his Wall Street sponsors wrought in Mexico—a country that Piñera personally visited in 1997, to help ram through pension privatization.

Bush's Plan to 'Kill Amtrak' Meets Bipartisan Opposition
by Mary Jane Freeman

President Bush's 2006 budget proposes to zero out of existence the national passenger rail system, Amtrak. His scheme to sell off a part of America's most vital infrastructure, cheap, is incompetent economics at best, suicidal at worst. Fortunately, the proposal quickly ran into bipartisan opposition, as U.S. Senator Patty Murray (D-Wash.) fired off a letter to Transportation Secretary Norman Mineta, demanding answers on Bush's plan 'to push Amtrak into bankruptcy,' with his 'no subsidies' budget for the national railroad.

Argentine Bond Deal: 'Revolt' Against the IMF
by Cynthia R. Rush
There is an audible sound of teeth-gnashing coming from various world financial centers, not to mention from the International Monetary Fund (IMF), as financial predators try to digest the fact that Argentina has just successfully concluded a complicated bond swap to restructure $82 billion in defaulted debt, with a bondholder participation rate of 76.07%.

Interview: Luigi Olivieri
Italian Banks Unload Argentine Bonds In Italy; Investigation Blocked Italian Parliamentarian

Luigi Olivieri, a member of the Left Democratic Party (DS), reports on the IMF-caused crisis in Argentina. To resolve the crisis, without destroying their country, Argentine President Nestor Kirchner arranged a swap of new bonds for old defaulted bonds. Olivieri reports how Italian banks illegally sold the original bonds to Italian citizens, and how his investigation of this matter has been stalled. Olivieri was interviewed by Claudio Celani of EIR.


Will Lebanon and Syria Resist Regime Change?
by Muriel Mirak-Weissbach
'We don't want American freedom!' This is the slogan on a poster (with a tank and a missile), sported by a young girl in a headscarf, participating in one of the daily demonstrations in Beirut, Lebanon. This picture, carried on many Middle Eastern websites, points up one paradox of the current Lebanese crisis: Although the entire mobilization against the government of Omar Karameh, who resigned on Feb. 28, has been steered from the United States, as part of the 1996 'Clean Break' doctrine to balkanize the region, there are currents among the opposition who decidedly do not want to play the role of American puppets.

  • Interview: Gilles Munier
    Hariri Stood For Unitary Nation-State

    EIR correspondent Christine Bierre interviewed Gilles Munier, Secretary General of the Franco-Iraqi Friendship Association, on Feb. 24 in France.
    EIR: You are an expert of the Western Asia region. Who had an interest in killing former Lebanese Prime Minister Rafik Hariri? Munier: Cui bono? Especially Israel and the American neoconservatives. Rafik Hariri had his drawbacks, but also some qualities, including that he favored a unified Lebanon, while those who killed him wanted the partition of the country.

Strategy of Tension: Bankers, Bush Put Squeeze on Philippines
by Mike Billington

The long-simmering crisis in the Philippines reached the boiling point, both economically and strategically, in the opening weeks of 2005.Awide variety of Western institutions, including the leading financial rating agencies, the U.S. State Department, and the Asian Development Bank (ADB), released reports highly critical of Philippine policies, warning of a debt collapse in the near term, and demanding ever more vicious austerity measures to meet foreign debt payments.

Ibero-America Wants Integration, Not War
by Valerie Rush and Gretchen Small

Even as U.S. Assistant Secretary of State Roger Noriega threatened on March 2 that the Bush Administration 'expected' Venezuela's neighbors to join the U.S. drive for regime change in Venezuela, the Presidents of Argentina, Brazil, and Venezuela were announcing the formation of a 'trilateral strategic alliance' premised on economic integration. Our alliance excludes no one, they said, but serves as a model of the concrete steps needed to turn the 'South American Community of Nations,' agreed upon last December by all the nations of the region, into a reality.


Former Military Lawyers Join Lawsuit Against Rumsfeld
by Edward Spannaus
'Mr. Rumsfeld's policies have stained our military. . . . We want to remove that stain,' said retired Army General James Cullen, one of two retired military lawyers who are part of the legal team in a newly filed lawsuit against Defense Secretary Donald Rumsfeld. The action was filed on March 1 by the American Civil Liberties Union (ACLU) and Human Rights First, on behalf of eight former prisoners, four Afghan and four Iraqi citizens, who were tortured and abused at the hands of U.S. military personnel acting under Rumsfeld's direction.

Scientists: White House Ignores Public Health
by Marcia Merry Baker
The March 4 issue of Science magazine features a letter and supporting documentation from over 750 scientists, protesting the policy of the Bush Administration, since 2001, to focus funding for research on a select few microbial agents considered as candidates for bio-weapons, and to sharply reduce funding for research on bio-agents of general public health importance. As of Feb. 28, there were 758 signators, including the president-elect, and seven past presidents, of the American Society for Microbiology.

Mobilization To Stop Shultz's Fascism
Special to EIR
On March 1, Senator Minority Leader Harry Reid issued a press release announcing a series of high-profile events around the country, to mobilize citizens to protect and strengthen Social Security. These events, scheduled to begin in New York City and Philadelphia on March 4, will feature many members of the Democratic Senate leadership, including Senators Clinton, Schumer, Durbin, Dorgan, Kerry, and Reid himself. This initiative represents a qualitative escalation on the part of the Democrats, and a show for force against the Bush Administration's desperate drive for privatization.

Cheney's Perpetual War Doctrine Revived
by Jeffrey Steinberg
When President George W. Bush met with Russian President Vladimir Putin, on Feb. 24 in Bratislava, the Russian leader had more on his mind than looking 'into the soul' of his American counterpart. In the aftermath of the U.S.-backed 'rainbow revolutions' in Georgia and Ukraine, threats of U.S. or joint American/Israeli military actions against Iran's Russian-built nuclear energy facility at Bushehr, and growing Bush Administration demands for increased 'democracy' in Russia itself, the Russian leader no doubt was taking a measure of just how far American policy had tilted back to a revived Cold War posture.

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The Israeli Attack On the USS Liberty

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