From Volume 4, Issue Number 18 of EIR Online, Published May 3, 2005

This Week You Need To Know

Bonkers in the Bunkers: Bush White House Flight Forward Is a National Security Threat

April 30—

Executive Intelligence Review and the LaRouche Political Action Committee have been informed by several extremely reliable Washington, D.C. sources that in the past several days, a prominent Republican United States Senator has been confronted by Karl Rove and other White House officials on his alleged "connections with Lyndon LaRouche." The Senator (who is not, in fact, in any way associated with LaRouche) denied the charges, but his denials were not believed by the White House officials. He was pressed by Rove, according to the sources, to issue a public statement denouncing LaRouche, to "prove" his denials. EIR has cross-checked the initial incident report with several other well-informed Washington, D.C. sources, and is satisfied that the essential features of the report are accurate and can be further documented.

Upon being informed of the incident today, April 30, Lyndon LaRouche observed that this account of the confrontation with the U.S. Senator, combined with President Bush's public performance on Thursday evening, April 29, makes it clear that the entire White House inner circle has gone stark-raving mad. This insanity and apparent flight-forward reaction to the growing political influence of Lyndon LaRouche and his associates, pose a serious national security threat. At a moment when the United States is facing a global disintegration of the post-Bretton Woods floating-exchange-rate, dollar-based monetary system, and is also facing an imminent loss of the combined physical productive capabilities of the U.S.A. aerospace/airline and auto industries, such insanity at the top of the Executive Branch of the Federal government is a matter of grave concern. Emergency remedial action is going to be forced upon a reluctant Executive Branch and U.S. Congress by the imminent bankruptcies of both General Motors and Ford. Yet the White House leadership is apparently losing all touch with reality.

LaRouche singled out President Bush's performance during his Thursday evening White House press conference. In response to a reporter's question about his Social Security privatization scheme, the President, in effect, announced the sovereign default of the United States government, by declaring that the U.S. Treasury Bonds in the Social Security Trust Fund were worthless IOUs. Yet, just seconds later, the President said that worried investors could place their privatized Social Security accounts in bonds, rather than in risky Wall Street stocks.

The President said, according to the official White House transcript of the April 29, 2005 press conference: "Now, it's very important for our fellow citizens to understand that there is not a bank account here in Washington, D.C., where we take your payroll taxes and hold it for you and then give it back to you when you retire. Our system here is called pay-as-you-go. You pay into the system through your payroll taxes, and the government spends it. It spends the money on the current retirees, and with the money left over, it funds other government programs. And all that's left behind is file cabinets full of IOUs.... I want people to have real assets in the system."

Then, in response to the same question, the President continued: "People say, well I don't want to have—take risks. Well, as I had a line in my opening statement, there are ways where you don't have to take risk. People say, I'm worried about the stock market going down right before I retire. You can manage your assets. You can go from bonds and stocks to only bonds as you get older."

But the President had just described the U.S. Treasury Bonds in the Trust Fund as "file cabinets full of IOUs." This, LaRouche observed, is clinical insanity. How will the governments of Japan, South Korea and China, who all hold vast reserves of U.S. Treasury Bonds respond to the President's declaration that these are not "real assets?" Has the President, by his foolishness, triggered a potential pullout of U.S. Treasuries, thereby triggering a near-term dollar crash? How close are we to such a cataclysmic event, as the result of the President's foolishness?

LaRouche added that the credible report of the Rove incident with the Republican U.S. Senator also indicates that others in the inner circle of President Bush are equally mad, and that this pervasive insanity in and around the Oval Office is a matter of immediate grave concern for all Americans, and for leading officials around the world, whose own security is very much tied to the state of mind of the U.S. Presidency. The collective insanity at the White House, LaRouche concluded, can not go ignored, but at the gravest threat to world stability.

All rights reserved © 2005 EIRNS