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

Published: Tuesday, Oct. 18, 2005

Volume 4, Issue Number 42

This Week You Need To Know:

Strategic Bankruptcy Revisited

It was almost six months ago that economist and statesman Lyndon LaRouche first issued a memorandum to the U.S. Senate on the catastrophe shaping up in the automobile sector, a catastrophe which he insisted must be dealt with immediately by a Congress committed to restoring the general welfare of the nation. Under the title "Emergency Action by the Senate," LaRouche put forward a cogent argument:

"Any liquidation of the present structure of the physical productive capabilities of that industry, especially its vital machine-tool sector, would mean both the end of the U.S.A. as a leading physical economic power, and related kinds of chain-reaction damage to the world economy as a whole. Emergency action to avert that outcome must be taken now."

One month later, the crisis of General Motors and Ford, not to mention the airline industry, had gotten much, much worse—but the Congress had done exactly nothing. LaRouche delivered a second memorandum to the Senate, entitled "On the Subject of Strategic Bankruptcy."


The Economy

World and Nation-State
Proposed Rail Development Corridors in the Indiana-Ohio-Pennsylvania Industrial Belt

Recent LaRouche Webcasts*

This Past Week:
"Rediscovering America"
Oct. 12, 2005
Sept. 16, 2005
Emergency Webcast,
"Pulling This Nation Together Now!"
Sept. 3, 2005
"LaRouche Addresses Urgent Changes in Economic and Monetary Policy"
Short video (WMA format)
June 16, 2005
April 7, 2005
*Sponsored by LaRouchePAC

This Week in History

October 18 - 24, 1693

Lord Thomas Fairfax Becomes an American and Helps the Colonies Break Through to the West

October 22, 1693 was the birth date of Thomas Fairfax, the Sixth Baron Cameron and heir to the estates in England and Virginia of a very interesting family. The Fairfaxes were known as statesmen and soldiers who also showed talent in the literary field. The third Lord Fairfax, also a Thomas, became Commander of the New Model Army in 1645 during the English Civil War. He was superceded by Oliver Cromwell, whom Fairfax did not support because he suspected Cromwell was heading for a military dictatorship.

Fairfax resigned his commission when he was ordered to invade Scotland, and he also resigned his appointment as a judge at the subsequent trial of King Charles I, when he realized that the king's execution had been predetermined. This Thomas Fairfax was also responsible for saving the priceless contents of the Bodleian Library when it was threatened with destruction during the Civil War.

The Thomas Fairfax born in 1693 was only sixteen years old when his father died. He succeeded to the title of Baron Cameron only a few days before he was to leave for college at Oxford. According to contemporary accounts, most students at the Oxford of that time lived a riotous, pleasure-seeking life, but although Thomas Fairfax was sociable, he studied seriously and became known for his accomplishments in literature. It is said he contributed an article to "The Spectator," a well-known literary magazine which also printed many articles by Jonathan Swift.

Thomas's mother, Lady Fairfax, was active in Whig circles in England, and the unofficial leader of those circles was Jonathan Swift, recognized today for his brilliant satires, but less known for his activities as a statesman. Swift and his circle had succeeded, during the reign of Queen Anne, in freeing England from the "perpetual war" policy of the Venetian Party and its leader, the Duke of Marlborough. Swift was also able to see that the colonies of Virginia and New York/New Jersey received able governors who promoted the development of the colonies, and supported their attempts to break through the Appalachian Mountains to the fertile lands of the Ohio Valley.

When Thomas Fairfax left college, Swift's circles were battling a new threat. This was the return to power in England of the Venetian Party's Robert Walpole, a man so corrupt that he was popularly known as "Bob Booty." Walpole had coined, so to speak, the phrase "Every man has his price," and he proceeded to demonstrate it by bribing the Commons, the Lords, and even the King. Walpole was also an inveterate enemy of any attempt to develop the American colonies beyond an existence as coastal depots for exporting raw materials to England.

As soon as Walpole became prime minister in 1721, Thomas Fairfax, an anti-Walpole Whig, was thrown out of his post as Deputy to the Treasurer of the King's Chamber. Fairfax was able to obtain a commission as Cornet in the Royal Regiment of Horse Guards, commanded by the anti-Walpole Marquis of Winchester.

During this time, Fairfax was trying to administer his family's English estates while dealing with a clone of Robert Walpole in America.

This second embodiment of greed was Robert "King" Carter, who had been appointed many years previously to oversee the Fairfax Proprietary in Virginia.

This proprietary, like William Penn's in Pennsylvania, was nominally under the British Crown, but was administered by the Fairfax Barons under a grant from the King. The Northern Neck Proprietary, as the Fairfax Grant was called, extended from the western shore of Chesapeake Bay up the peninsula between the Potomac and Rappahannock Rivers. In 1688, King James II had amended the grant to state that the grant went westward as far as the "first heads or springs" of those two rivers.

This was a very crucial statement, for the Fairfax lands extended northwestward like an arrow toward the Ohio River, and that was where the colonists would have to go to be able to extend their settlements across the continent. But King Carter had marked out huge tracts of Fairfax lands for himself, his family, and his cronies, and used them as a speculative investment, not for the development of farms and towns. As a result, settlers wanting to move west had to leapfrog over Carter's huge and empty holdings, leaving the pioneers with no infrastructure or military support immediately behind them. And the Virginia Council, of which Carter was a member, was pressing London to declare that the Potomac River only extended to its confluence with the Shenandoah River, not to the high Allegheny Mountains.

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Truth in Economic Forecasting: To Recover America

This is a transcript of Lyndon LaRouche's keynote speech to an Oct. 12, 2005 webcast, delivered in Washington, D.C., along with a selection from the questions and answers. The keynote began with a video segment of LaRouche's press conference at Berlin's Kempinski Bristol Hotel on Oct. 12, 1988. The webcast was moderated by Debra Hanania Freeman.

  • Dialogue with LaRouche
    What Should Democrats Do Next?

    Freeman: As part of the questions which have been submitted, these webcasts in Washington have been principally characterized by an ongoing dialogue between Mr. LaRouche and leading institutions attached to the Federal government, and that will continue today. And in some cases, what I will do, because we get a lot of questions on the same topic, where necessary, and where it's convenient, I'll group those questions together.


Congress Must Stop Global Vultures From Destroying Auto
by Richard Freeman
The Delphi Automotive Corporation management's massive fraud on a New York City bankruptcy court, which began on Oct. 8, sends the clearest possible signal to the United States Senate, whose membersreceivedmemossix months ago from physical economist and statesman Lyndon LaRouche warning of the 'strategic bankruptcy' of the auto industry. The U.S. Congress must intervene to support and regulate the American auto industry as LaRouche proposed, giving it credit, and a new national mission to 'retool' to build vitally needed new economic infrastructure for the nation; and it must protect auto from the global gang of destructive vulture capitalists of which Delphi CEO and hatchet-man Robert 'Steve' Miller is an operative.

Speaking of Delphi . . .
by Antony Papert

Editor's note: The declaration of bankruptcy by Delphi Corporation, and the sophistical garbage coming out of the mouth of its CEO Steve Miller, inspired us to provide the following historical perspective on the role of the Delphic Oracle in destroying great civilizations.
The faithful Fifth Century, B.C., historian Herodotus records as follows how the oracle of Apollo at Delphi tricked King Croesus of Lydia into a doomed attack against the Persian Empire. After first deluding the king into believing anything that Delphi might tell him, it then answered his question as to what would happen if he crossed the Halys River to attack the Persians, by telling Croesus that if he did so, he would destroy a mighty empire. But once emboldened to cross the river, Croesus realized almost immediately—but too late—that the 'mighty empire' of the prophesy was his own.

World Is Still Unprepared For the Deadly Avian Flu
by Laurence Hecht

The deadliest strain of flu virus ever known, the H5N1 avian influenza, is nowspreading into southeastern Europe and Turkey, carried by infected populations of migratory birds which began their journeys in China last spring. New outbreaks are also now appearing in Indonesia and the Philippines. So far, the virus has infected millions of domestic poultry and 120 human beings, of whom 62 died quickly. Most of the human victims caught the flu from direct contact with infected birds. But with each new infection, the virus evolves toward a form that will become easily transmissible from human to human. When that happens, an almost unstoppable pandemic will spread around the world as fast as the common cold, quickly killing perhaps one out of five of every human beings now alive.


Cheney Plots New Wars To Save His Hide
by Jeffrey Steinberg

Lyndon LaRouche's call for Dick Cheney's immediate ouster from the Bush Administration has resonated around the world. Leading American, Israeli, and Arab sources have told this news service that the Vice President is busy plotting military confrontations with both Syria and Iran. As one Israeli source put it: 'Cheney has told Ariel Sharon that the American people will never tolerate the removal of a President or Vice President during wartime. He is pressuring Sharon to back up U.S. war plans, targeting Syria and Iran. Cheney sees his political days numbered, and he is desperate for a war to save his political hide.'

California Arnie Set To Implement Fascist Economics
by Harley Schlanger

Following his announcement in late September that he will run for re-election in 2006, Gov. Arnold Schwarzenegger is concentrating on fulfilling the goal chosen for him by his controller, the old Chicago School fascist, George Shultz. Despite the dramatic decline in his popularity, which is confirmed by all the opinion polls, he has plunged ahead aggressively in a desperate, all-out campaign to destroy representative government in California.

Army Dives Into Cheney's Permanent War Scenario
by Carl Osgood
If there was any doubt that the senior leadership of the U.S. Army is fully committed to Samuel Huntington's 'Clash of Civilizations,' one need only have attended the relevant panels of the annual conference of the Association of the U.S. Army during the first week of October. There, one would have heard Brig. Gen. David Fastabend, the deputy director of the Army Training and Doctrine Command's Futures Center, declare that a significant percentage of the Muslim world is 'violently opposed to our ideas,' and that there could be 30-50 million potential combatants out there, all guaranteeing that the present U.S. war against terrorism, or against Islamic extremism, or whatever the label du jour is for this war, is going to last decades.

Book Review
You Can Tell a Book by What It Doesn't Cover
by Stuart Rosenblatt

John Jay: Founding Father
by Walter Stahr
New York: Hambledon and London,2005
482 pages,hardcover,$29.95,£19.99

Walter Stahr's new book on John Jay certainly helps to reestablish Jay as one of the most important leaders in creating the United States during and after the American Revolution. The author underscores Jay's seminal contributions in crafting the foreign policy of our young nation, and his indispensable role in collaboration with Alexander Hamilton and James Madison in helping to shape the Constitution and guaranteeing its adoption in 1789. This book appears amidst a spate of works on the Founding Fathers which portray their accomplishments, as against the dismal performance of our nation's officials over the past two generations.


German Neo-Cons Are Main Losers of the Elections
by Rainer Apel

The bad news from Germany is that the new Chancellor will be Angela Merkel of the Christian Democrats (CDU), and that outgoing Chancellor Gerhard Schro¨der will not be part of the new Grand Coalition government composed of the CDU and the Social Democrats (SPD). But the good news is that Merkel, who started out as a rabid neo-con in the election campaign, is getting cut down to size, notably by her own CDU party apparatus...

Helga Zepp-LaRouche
The Promise of a True German-American Alliance

Helga Zepp-LaRouche, Chancellor candidate of the LaRouche Movement's BüSo party in the recent Federal elections in Germany, was interviewed Oct. 8 on 'The LaRouche Show,' an Internet radio show.1 We reproduce here her answers to two questions: first, what the content of the GermanAmerican alliance for which she has called would be, and second, what effect the BüSo had in the election campaign. The show was hosted by Harley Schlanger, and the panelists were LaRouche Youth Movement members Gaby Arroyo from Boston and Abdul Aliy Muhammed from Los Angeles.

Italy Says:
Less Maastricht And More Hamilton
by Claudio Celani
If there were any doubts that Italy, like other major European Union (EU) members, would do little more than nothing in order to enforce budget discipline next year, those doubts were swept away no later than Sept. 4, when the initial results of the German general elections were made known. Four days after that vote, Italian Finance Minister Domenico Siniscalco announced his resignation. Siniscalco, a technocrat,knewthat his time was over...

Neo-Cons: The View From Russia
by Lyndon H. LaRouche, Jr.

October 8, 2005
A set of dispatches from Russia viewed by EIR today, point to the importance of developing a shared, common-interest strategic outlook on the so-called 'neo-conservative' phenomenon today. For Russians today, this requires a rapid and accurate general review of the role of the notorious Alexander Helphand ('Parvus') during the period from his visit as a guest of British intelligence services in London, through his role as a British agent in London's 'Young Turk' operation, through his role in two Russian revolutions, his role as an arms-trafficker, and his interventions into Germany before and after World War I, including his supporting role in the circles of Hitler predecessor Coudenhove-Kalergi.

Quo Vadis Iraq; Quo Vadis Bush?
by Jürgen Hübschen

Col. Jürgen Hübschen, retired from Germany's Air Force, was German defense attache´ in Baghdad from 1986-89. He worked in Latvia for several years with the Organization for Security and Cooperation in Europe (OSCE), and served in the German Defense Ministry until March 2004. EIR published an interview with him on Aug. 6, 2004, and a transcript of a briefing to EIR staff in our issue of April 8, 2005.
'God told me to end the tyranny in Iraq, and I did.' With these words, former Palestinian Foreign Minister Nabil Shaath quoted American President George W. Bush, from the Israeli-Palestinian summit in July 2003 in Sharm al-Sheikh. It would be good if the U.S. President were to receive some advice from God on how he might master the situation in Iraq and in his own country. The current problems in the United States and in Mesopotamia are actually two sides of the same coin.


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


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