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

Published: Tuesday, Apr. 26, 2005

Today is:

Volume 4, Issue Number 17

This Week You Need to Know:

Science: The Power To Prosper

by Lyndon H. LaRouche, Jr.

April 16, 2005

This report is about economics as that form of science without which no recovery from the presently onrushing world-wide monetary-financial collapse were possible. However, in science, as in preparing a decent meal, it is necessary to clean the kitchen of noxious debris.

However, the intention of this report is not simply to haul out the garbage. Consider that removal of noxious elements of currently widespread opinion as a necessary attack on certain groups of economists who continue to play the role of charlatans, at public expense. These predatory fellows need to be denounced for reason of the damage they would continue to do to the U.S.A. and other nations through the widespread influence of their deceits upon governments and others. I include this attack on them at the outset of this report, if only as a secondary feature of this report as a whole; I do so, because it would be virtually fatal negligence not to attack those dogmas for what will surely be their increasingly desperate frauds at this time. Unless they are denounced for their frauds, on exactly the issues I pose again here, the damage their erroneous opinions have already caused would not only continue, but worsen.



Latest From LaRouche


This was a meeting on April 20, sponsored by the LaRouche organization in Peru, and workers from several unions, especially oilworkers, in the PetroPeru headquarters, devoted to reversing privatization in Peru. There were about 100 people there. Lyndon LaRouche gave the presentation, after being introduced by Sara Vasquez.

Animation Studies:
U. S. Physical Economy
New: From Latest Webcast

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

The Economy

World and Nation-State

This Week in History

April 25 - May 1, 1936

FDR Tells Democrats: 'We Are Becoming "Nation-Minded'"

President Franklin Roosevelt addressed the Democratic Party's annual Thomas Jefferson Birthday Dinner in New York City on April 25, 1936. As it was a Presidential election year, it was important for Roosevelt's party to really grasp the outlook which had guided him during the past three years as he worked to pull America out of the Great Depression and ensure that it would not happen again. The "Economic Royalists," as Roosevelt had dubbed the Wall Street crowd and its international allies, were screaming bloody murder about the government credit which the President had extended to American agriculture and industry, and wanted to end the employment programs which had whittled down the number of idled workers.

In countering these attacks, Roosevelt took a comprehensive view of the nation's welfare: "A century ago this country was regarded as an economic unity. But as time went on, things happened. The country, bit by bit, was cut up into segments. We heard, more and more, about the problems of particular localities, the problems of particular groups. More and more people put on blinders; they could see only their own individual interests or the single community in which their business happened to be located.

"It is only in these comparatively recent days that we have been turning back to the broader vision of the Founding Fathers.

"That is why, while I may be breaking another precedent—and they say in Washington that my day is not complete without smashing at least one precedent—I can come here to the City of New York and talk with you about the cotton problem of Georgia, the corn and hog problem of Iowa, the wheat problem of the Dakotas, the dust storms of the West, the destructive tornadoes in the South, and the floods in the Northeast. In the same way I would not hesitate to discuss the slum clearance problems or any other problems of the big cities of the East with any farmer audience in Georgia or Iowa or the Dakotas or anywhere else, because we are becoming nation-minded.

"The strong arm of the Nation is needed not in immediate relief alone. We all grant that. It is needed also in taking measures or prevention before natural disasters occur. It is needed equally in taking measures to prevent economic disasters which are not natural, but are made by man...."

"Some economists are still trying to find out what it was that hit us back in 1929. I am not a professional economist but I think I know. What hit us was a decade of debauch, of group selfishness—the sole objective expressed in the thought—'every man for himself and the devil take the hindmost.' And the result was that about 98% of the American population turned out to be 'the hindmost.'

"Let me illustrate what happened by taking the case of the garment workers in the City of New York. They make about 40% of all the clothes of the Nation worn outside of New York City. Their work and wages in this city were dependent on the sales they made all over the country. The garment workers' depression here did not begin in 1929. It began back in 1921, when the depression began on the farms of the Nation. But back in the '20s, people in power still thought of prosperity chiefly in industrial or financial terms. They overlooked the farm depression; and because it went unrelieved, the troubles that started among the farmers in 1921 finally and inevitably reached the garment workers on Eighth Avenue.

"Nebraska's corn and Eighth Avenue's clothing are not different problems; they are the same national problem. Before the war a Nebraska farmer could take a 200-pound hog to market and buy a suit of clothes made in the City of New York. But in 1932, in order to get that same suit of clothes, he had to take two and a half hogs to market. Back in the '20s, a cotton farmer had to raise seven pounds of cotton to buy one pair of New York-made overalls. By 1932, however, he had to raise 14 pounds of cotton to get those New York overalls...."

"If all of the 7 million people living in the City of New York could afford to buy the bread and meat and vegetables and milk and fish and cotton and wool that their health and decent living call for, then we in this country would need crop production from 3 million more acres of good crop land than we are using today to feed and clothe the City of New York...."

What our success has been you can prove by the simple process of putting the financial pages of any newspaper published in 1936 alongside the financial pages of the same newspaper published in 1932. By financial pages, I do not mean, as some of you might think, merely the stock market quotation pages, although you will agree that they, too, have at least passed panic prices. By financial pages I mean the published prices of farm products and raw materials and the many reports of industrial earnings...."

"Some individuals are never satisfied. People complain to me about the current costs of rebuilding America, about the burden on future generations. I tell them that, whereas the deficit of the Federal Government this year is about $3 billion, the national income of the people of the United States has risen from $35 billion in the year 1932, to $65 billion in the year 1936. And I tell them further that the only burden we need to fear is the burden that our children would have to bear if we failed to take these measures today.

"Building national income and distributing it more widely, mean not only the bettering of conditions of life, but the end of, and insurance against, individual and national deficits in the days to come.

"Nationwide thinking, nationwide planning and nationwide action are the three great essentials to prevent nationwide crises for future generations to struggle through.

"Other individuals are never satisfied; one of them, for example, that I read about the other day, belongs to a newly organized Brain Trust—not mine. He says that the only way to get complete recovery—and I wonder if he really admits we have had any recovery at all—is to lower prices by cheapening the costs of production...."

"Reduction of costs of manufacture by cutting wages or lengthening hours does not mean more purchasing power and more goods consumed. It means the exact opposite.

"The history of that period from 1929 to 1933 shows that consumption of goods actually declines with a declining price level. And the reason is obvious. The reason is that in such periods the buying power of the Nation goes down faster than the prices go down.

On the other hand, if you increase buying power, prices will go up, but more goods will be bought. Wages ought to, and must, go up with prices. It does not mean unsound inflation or skyrocketing prices; those should be avoided, just as we seek to avoid deflation and bankruptcy sale values. What we do seek is a greater purchasing power and a reasonably stable and constant price level, and we are attaining that end.... The objective cannot be obtained in a month or a year—we know that. But, my friends, results, proven by facts and figures, show that we are on our way—very definitely on our way. Higher wages for workers, more income for farmers, mean more goods produced, more and better food eaten, fewer unemployed and lower taxes.

"That is my economic and social philosophy, and, incidentally, that is my political philosophy as well."

Missed the Presidents' Day
Schiller Institute Conference?
Visit the Media Archives
InDepth Coverage








Links to articles from
Executive Intelligence Review,
Vol. 32, No. 17
*Requires Adobe Reader®.


Science: The Power To Prosper
by Lyndon H. LaRouche, Jr.
April 16, 2005
This report is about economics as that form of science without which no recovery from the presently onrushing world-wide monetary-financial collapse were possible. However, in science, as in preparing a decent meal, it is necessary to clean the kitchen of noxious debris. However, the intention of this report is not simply to haul out the garbage. Consider that removal of noxious elements of currently widespread opinion as a necessary attack on certain groups of economists who continue to play the role of charlatans, at public expense. These predatory fellows need to be denounced for reason of the damage they would continue to do to the U.S.A. and other nations through the widespread influence of their deceits upon governments and others.


Bolton and DeLay Fiascos Highlight Revolt Against Bush
by Jeffrey Steinberg
A bipartisan Congressional revolt against the Bush Administration gained further momentum during the week of April 18, as United Nations Ambassador-nominee John Bolton and House Majority Leader Tom DeLay (R-Tex.) both appeared on the verge of being shot down. But the revolt is not restricted to reactions against outrageous personalities and fringe politics. There is a growing recognition, among sane elected officials on both sides of the aisle, that the Bush-Cheney Administration is thoroughly bankrupt on economic policy, at a moment when the entire global dollar-based financial system is at grave risk, and when what remains of the physical productive sector of the U.S. economy is about to be shut down.

  • Republican and Democratic Opposition Blocks Bolton in Senate Committee
    by Edward Spannaus

    Insisting that the Senate must confirm his nominee John Bolton as UN Ambassador, an obstinate President Bush urged the Senate on April 21 'to put politics aside.' The President should be careful what we wishes for: It is precisely because one Republican Senator did 'put politics aside' and follow his conscience, that 'serial abuser' John Bolton's nomination is in trouble. Other Republicans also are indicating their willingness to put partisanship aside, and to consider the Bolton nomination on its merits, or lack thereof—which portends a further weakening of the lame-duck President.
  • Fact Sheet
    Why Bolton Should Not Be Confirmed
    by Michele Steinberg and Mark Bender
    On April 12, Carl Ford, former Director of Intelligence and Research (INR) at the State Department, testified at the Senate Foreign Relations Committee on the behavior of John Bolton. Ford's testimony was a bombshell that showed Bolton to be a liar. And, there is more evidence of that quality, if the chairman, Richard Lugar (R-Ind.), honors the Democrats' request to call more witnesses.
  • Documentation
    'Behaving Like a Madman'

    The following letter was submitted to members of the Senate Foreign Relations Committee in opposition to the nomination of John Bolton. The author is Melody Townsel, now a Texas businesswoman, who was working as a subcontractor on a U.S. Agency for International Development (USAID) project in Kyrgyzstan in 1994. Since Bolton's abusive behavior has become an issue of investigation, Bolton cheerleaders tried to claim her charges were not made at the time, and that she is partisan, having organized a group called 'Mothers Against Bush.' But witnesses have come forward to confirm Townsel's letter...

Social Security
Andy Jacobs: The Second Battle of Parkersburg
by Nina Ogden
On Aug. 15, 1994, in a ceremony in the White House Rose Garden, President Bill Clinton signed the Social Security Independence Act with the same pen Franklin Delano Roosevelt had used to sign the Social Security Act of 1935. The 1994 Act returned the Social Security Administration to the status of the independent agency President Roosevelt had set up in 1935. President Clinton quoted President Roosevelt speaking to the New York State legislature in 1931, saying; 'The success or failure of any government must be measured by the well-being of its citizens.'

From the Congress
Rangel: Will U.S. Honor Obligations to Retirees?
Rep. Charles Rangel (D-N.Y.), the ranking minority member of the House Ways and Means Committee, sent this letter to Treasury Secretary John Snow on April 13.

California Dems Must Shape National Agenda
by Harley Schlanger

The author is the Western States spokesman for Lyndon LaRouche.
The last time California Democrats held a state convention, in San Jose in 2004, it was more of a wake than a deliberative gathering. Dispirited delegates were given no reason for optimism, as party leaders moped through the proceedings, clearly unnerved by the apparent Arnold Schwarzenegger juggernaut, which had swept Gov. Gray Davis (D) out of office in a recall election the previous November. Many party officials expressed concern that Arnold's 'charisma' and celebrity status might doom the Democrats to a marginal role for years to come.

LaRouche Answers Queries From National Institutions on Rebuilding the Economy
The following are questions to Lyndon LaRouche, and his answers, from eight Washington, D.C. institutions, submitted in response to his April 7 webcast. LaRouche's opening speech to the webcast appeared in EIR on April 15, and a portion of the question period, dealing with questions and answers from Democratic circles, in EIR on April 22.

Book Review
President Reagan Was Fierce Opponent of Mutually Assured Destruction Doctrine
by Jeffrey Steinberg

Ronald Reagan and His Quest To Abolish Nuclear Weapons
by Paul Lettow
New York: Random House, 2005 327 pages, hardbound, $25.95

At a moment when the credibility of the institution of the U.S. Presidency has plummetted to perhaps an all-time low, as the result of the first four-year term and re-election of George W. Bush, Paul Lettow's new biography of President Ronald Reagan offers an invaluable counterpoint and message of hope. The book focusses almost exclusively on the single great legacy of the Reagan Presidency—his Strategic Defense Initiative (SDI). But, in painstakingly reviewing the process through which President Reagan launched, and then fought for the implementation of a global defense against nuclear weapons, the young Princeton and Oxford historian has provided a case study in Presidential leadership that is an inspiring lesson for all.


President Kirchner: 'There Is Life After the IMF'
by Cynthia R. Rush
On the final day of his five-day state visit to Germany, Argentine President Ne´stor Kirchner delivered a pointed warning to the International Monetary Fund and its allied financial beast-men who are determined to crush Argentina for daring to defy them. 'There is life after the IMF, and it's a very good life,' Kirchner said from Munich on April 15. And remember, he added, that 'being in the embrace of the IMF isn't exactly like being in heaven.'

Financial Sharks Call For Dismantling Of General Motors, As LaRouche Warned
by Richard Freeman
General Motors' announcement April 19 of a $1.1 billion loss for the first quarter of 2005, and the disclosure of a far worse situation in its hemorrhaging of cash flow, created the opening for the Wall Street financial institutions to intensify their campaign to tear apart GM. Within hours, they called for the permanent closing of several assembly and feeder plants, which would dismantle considerable production capacity, and lay off many tens of thousands of workers. GM would break into several pieces, confirming what Lyndon LaRouche warned of the week of April 11. GM may undertake some of these close-downs as early as this Summer.

Interview: Carlos Lessa
The Financial Dragon Must Be Tamed!

Carlos Lessa was named president of Brazil's National Bank for Economic and Social Development (BNDES) when President Luiz Inacio Lula da Silva took office in January 2003, remaining at that post through November 2004. The previous government of Fernando Henrique Cardoso had reduced BNDES to a mere instrument for financing foreign takeovers of the Brazilian state sector, as it was privatized. Lessa, with Lula's authorization, restored BNDES to its historic role as Brazil's national bank for economic development, at the same time that it took the lead in financing numerous infrastructure projects for South America's physical integration.

Colombia's Uribe Tours China, Japan
by Maximiliano Londoño Penilla

The author is president of the Lyndon LaRouche Association in Colombia
During his recent tour to China and Japan, April 6-13, Colombian President Alvaro Uribe put into motion several economic and security alliances which are important from the standpoint of a commitment to turn Colombia into an industrial and agricultural power, free of the plague of narco-terrorism.

China and India Must Lead the Way For Nuclear Power
by Ramtanu Maitra
The world's two most populous nations, China and India, representing more than 2.2 billion people, are now seemingly committed to an economic development program which would strengthen both nations and pull the entire population out of miserable poverty. The most immediate requirement for both these nations is to ensure a long-term supply of energy in its most efficient form—electricity. In addition, of course, both nations have to make sure that energy in the form of oil and gas also remains in abundant supply in the years to come.


German State Election Could Decide Schröder's Fate
by Helga Zepp-LaRouche

The author is the chairman of the Civil Rights Movement Solidarity party (the BüSo) in Germany.

On May 22, Germany's most populous state, North Rhine Westphalia, will hold legislative elections. If the Social Democratic Party (SPD), which currently governs there in a coalition with the Green party, loses this election—and at the moment they have 35% of the vote, according to the polls, 10% behind the Christian Democratic Union (CDU)—then the situation for Social Democratic Chancellor Gerhard Schröder's national government in Berlin will become critical.

Malaysia's Anwar Ibrahim: Wolfowitz's Knife in Asia's Back
by Mike Billington
Simultaneous with the confirmation of Paul Wolfowitz to become the head of the World Bank (where, it can be credibly argued, he will be in a position to kill more people than he did at the Defense Department), a longtime friend of Wolfowitz, Malaysia's Anwar Ibrahim, made a reappearance in the international limelight. When Anwar was released last year after six years in prison in Malaysia, he flew directly to Germany, and Wolfowitz took time from his busy schedule at the Pentagon to join his old friend in Europe.

In Memoriam
Norbert Brainin: Founder and Primarius of the Amadeus Quartet
by Hartmut Cramer
The death of violinist Norbert Brainin on April 10, 2005, came as a shock, and is still difficult to grasp. He died at the age of 82 in London. With him the world loses one of those truly great artists and human beings, who, because of their moral integrity and extraordinary charisma, are able to shape an entire epoch, since they are able to successfully mediate in all cultures precisely that which makes man unique: the joy in creative work.

What Did LaRouche Say,
and When Did He Say It?
Visit the Audio-Visual Archive Page.*

*Paid for by LaRouche in 2004

The LaRouche Show
3pm, Eastern Time
2000-2100 UTC
(live and archived)


LaRouche: `The Immortality of Martin Luther King'

Lyndon H. LaRouche, Jr.

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


Order Online

or call 1-888-EIR-3258 (toll-free)

The LaRouche Show
3pm, Eastern Time
2000-2100 UTC
(live and archived)


(*all but the 'In Depth' section.)

.zip file archive of past issues

Do you wish to change your account information?

"Our Purpose is to organize people to contribute, intellectually and otherwise, to the organizing of a mass-based movement—a Gideon's Army, but with mass-base potential and actual support—to mobilize the members of Gideon's Army to study, to read, to think, to consult together, to organize together, to try to reach out and influence broader and broader layers of the population."
Lyndon H. LaRouche, Jr.

Coverup Exposed!

The Israeli Attack On the USS Liberty

``The Loss of Liberty,"
a video by filmmaker Tito Howard, proves beyond any doubt that the June 8, 1967 Israeli attack against the USS Liberty, in which 34 American servicemen were killed and 171 wounded, was deliberate. The video includes testimony from Liberty survivors, many Congressional Medal of Honor winners, and from such high-ranking Americans as:

  • Adm. Thomas H. Moorer,
  • Adm. Arleigh Burke
  • Gen. Ray Davis
  • Secretary of State Dean Rusk.

Plus — a new interview with James Bamford, author of ``Body of Secrets: Anatomy of the Ultra-Secret National Security Agency.''

$25, plus $2.95 shipping and handling

53 minutes, EIRSV-2003-1

Order from EIR News Service at 1-888-347-3258 (toll-free).

Or write P.O. Box 17390, Washington, D.C.

Or contact the Webmaster:

Visa and MasterCard accepted.

All rights reserved © 2005 EIRNS

Subscribe to EIR Online

For all questions regarding your subscription to EIW, or questions or comments regarding the EIW website's contents or design, please contact eironline@larouchepub.com.

Phone: 1-888-EIR-3258