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This memorandum appears in the April 2, 2004 issue of Executive Intelligence Review.

How Must We Deal With the New
Turn in This Worsening Crisis?

by Lyndon H. LaRouche, Jr.

March 24, 2004

The combination of the terrorist attack at Madrid and the U.S. Bush Administration's tacit condoning of the escalated assassination policies of Israel's Sharon government, represent a sudden, inevitably reverberating change in the situation surrounding all leading crisis-points in the world today. In that sense, the planned March 28-29 Arab League meeting in Tunis will occur under current global strategic crisis-conditions qualitatively different from the conditions existing even as recently as a few weeks ago.

I explain.

It has been known to me for some months, that a new wave of terrorist attacks, ultimately targetting the U.S.A. and other parts of the Americas, was being prepared by a Spain-coordinated terrorist organization based chiefly in Italy, France, and Spain.

This organization is a reactivation of the same network, currently associated with a leading public role of Spain's veteran fascist Blas Piñar, responsible for the wave of right-wing terror in Italy and elsewhere during the interval 1969-1980. That post-World War II, Spain-based organization, originally built up in Franco's circles around the circles now featuring Blas Piñar, is a part of the former SS security apparatus led by Nazi SS General Walter Schellenberg—the section of the Nazi system's apparatus, and its associated international banking circles, which first entered into collaboration with such U.S. notables as Allen Dulles and James Jesus Angleton during the 1944-1945 interval.

Dulles and the Anglo-American faction of which he and his brother John Foster Dulles were an integral part, had been associated, in concert with head of the Bank of England Montagu Norman, in deploying Hjalmar Schacht for the purpose of bringing Adolf Hitler to power in Germany. Through channels such as the associates of Schacht, such as Switzerland's Nazi representative Francois Genoud, Dulles had reopened channels to the Göring banker networks, and SS General Schellenberg, during the course of the period following the Nazi defeat at Stalingrad. U.S. agents Dulles, General Draper, and Angleton were key in the U.S. side of the arrangements which brought those elements of the Nazi SS into the post-war Anglo-American intelligence apparatus built up around the so-called utopian faction among the Anglo-Americans. These Nazi SS assets, including Schacht's Otto Skorzeny, played key roles in bringing this multinational, Nazi-SS apparatus into the so-called anti-Communist military intelligence establishment of the post-World War II period.

The "strategy of tension" operations of the 1969-1980 interval, like the earlier Spain-based, 1960s targeting of France's President Charles de Gaulle, were operations of the same network responsible for the terror events in Spain. This Spain-based component of those networks, is significant for its intended role in deploying terrorist and related operations against the U.S.A. in the Americas themselves, provocations intended to provoke a disoriented United States into even wilder actions than we have seen from the hands of Vice-President Cheney and Secretary of Defense Donald Rumsfeld thus far.

The recent and current editions of the weekly EIR, and the Internet EIW editions, contain a large amount of information on this matter. This information, and more, is readily available to you through both my campaign website, and I have summarized as much of the background here as is indispensable for a grasp of the nature of the threat now deployed from those present-day continuations of the Nazi-SS apparatus under Hitler.

1. Why Now?

The timing and savagery of the present attacks could not be competently understood unless we compare the presently ongoing collapse of the IMF's 1972-2004 floating-exchange-rate monetary-financial system, to the 1928-1933 collapse of the Versailles monetary-financial system. The first, 1928-1933 crisis produced the Hitler dictatorship and World War II; the onrushing collapse of the present IMF monetary-financial system, has set into motion the exact-same types of social-financial interests, including some of the same interests, which placed Hitler into power in January-February 1933. A clear-headed view of the facts behind the absolutely fraudulent U.S. insistence on a recovery of its economy, demonstrates why the situation of the present moment, approximately a mere six months before the next U.S. general election, is so extraordinarily dangerous.

When the present world and U.S. monetary and financial data are examined in light of the degree of ongoing, and accelerating collapse of the U.S. and European physical economies, it is clear that the U.S. is being propped up politically by a wishful delusion. The U.S. physical economy is collapsing, while the collapsing, debt-ridden U.S. dollar is being kept afloat by hyperinflationary methods of monetary flooding of dollar markets, roughly comparable to the mechanisms of the German hyperinflation of June-November 1923.

The instant that hyperinflationary dollar-bubble pops, the world as a whole is plunged into a strategic crisis relatively far worse than that of 1928-33. Then, the economies of Europe and the Americas were powerful agro-industrial producer economies; today, the U.S. leads Europe in transformation into a self-doomed form of "post-industrial" society sustained by the social-control mechanisms of "bread and circuses." In the 1930s, Americans fled to family farms for food. President Roosevelt began to reopen closed, but still existing manufacturing facilities. Those physical-economic safety-valves do not exist in comparable degree today.

While the exact date of the general panic is not yet determined, the explosive charge which will set off that panic is bloated to such a degree that the only competent forecast for the new general collapse is "any time."

Remedies exist. These remedies require a sudden turn in economic and monetary-financial policies, away from the post-industrial track of the 1964-2004 trend, back to the agro-industrial emphasis on physical economy of the 1933-1964 interval. These actions would require that the governments place the generally bankrupt, presently leading financial institutions into government receivership for reorganization in bankruptcy. While the success of such emergency actions depends upon cooperation among a leading group of the world's nations, a recovery would become possible. However, it would mean an end to the presently overreaching political-financial power of the same kind of array of financial oligarchies which were the political force behind the establishment of fascist control over Europe during the 1922-1945 interval.

Then, the fascist threat came from an international bankers' cartel known as the Synarchist International. Today, many of the same financial entities are integral parts of the financial cartel behind the present deployment of the fascist apparatus built up around a kernel adopted from the Nazi-SS apparatus around Schacht, Schellenberg, Genoud, et al., in 1944-45. Today, the same financier circles are determined to pre-empt the presently onrushing world-wide financial-monetary collapse with the installation of an international Nazi-like order.

Vice-President Dick Cheney and his associated "neo-conservatives" are a highly decadent, present-day outcrop of that Nazi-SS apparatus brought into the Anglo- American security establishment during 1944-45. They are not particularly intelligent. They are, as we have seen in Iraq, monstrous clumsy and ignorant bunglers; but like Mexico's poisonous Gila Monster, they are not only stupid, but also dangerous. To behave like a beast toward man does not require the heights of human intelligence.

The source of the danger to civilization, is, therefore, essentially, the reluctance of nations to unite to crush this Nazi-like serpent in its nest. If we can agree upon the measures of reorganization in bankrutpcy which sovereign national governments will impose upon the relevant international, Venice-style financier-oligarchical circles, civilization can escape the worst of the present danger, and move on to general recovery. It is, therefore, our own hesitation to unite around such measures which is the greatest of the sources of mortal threats to global civilization today.

Merely to begin discussing such facts openly, even at this dangerously late point in the process, would be an important step forward.

2. Now

My only actual rival for the U.S. Democratic Presidential nomination, Senator John Kerry, is a good man, with most of the needed qualifications for a good President—but one. He lacks the knowledge and strategic determination which could come only with an understanding of economics, an understanding he sorely lacks. The danger is, that were he to be elected in November, his present lack of understanding of economics, would hold him prisoner to a network of his present financial backers. Under such conditions, he would become a virtual office boy in the Presidency, controlled by a faction of those financier oligarchs who are today's representatives of the same oligarchs who brought fascism to Europe during the 1922-1945 interval.

His vacillation on the practical measures required to deliver on his doubtless sincere promises of help to the increasingly impoverished lower eighty percentiles of the U.S. population, would make him a virtual "Herbert Hoover" in fact, where a "Franklin Roosevelt" is urgently required.

Therefore, under such world circumstances, plans for Middle East peace are worthless if they are premised upon a mere rearrangement of presently existing chairs and tables of Middle East policy-shaping. The first step toward practically effective action is comprehension of the extraordinary nature of the present strategic situation merely implied by the recent Madrid terrorist action by the present-day heirs of Hitler's Schellenberg, Schacht, and Skorzeny.

Were I President, the measures to be taken are clear. Sharon's latest atrocities were not possible without the implicit agreement of the current U.S. Bush Administration. The great mistake of much of the Arab world, in 2000, was the assumption that Bush would be better news for the Arabs than Clinton. We see the result of that error today. On the other side, it is clear that a U.S. President, such as Kerry or LaRouche, elected on the basis of opposition to the current Bush Administration's strategic and economic policies, could unite most of the world around a U.S. initiative for a strictly-imposed peace and economic reconstruction of the Southwest Asia region. Such a change in U.S. direction would make possible what is presently impossible under the current U.S. administration: a commitment to the kind of reconstruction of world affairs, which has the kind of effect on areas of today's bloody strife, which the 1648 Treaty of Westphalia brought to a Europe despoiled by the accumulation of religious and related hatred brewed by the religious warfare of Europe's 1511-1648 interval.

I suggest that the idea of that Treaty of Westphalia be studied in depth, and invoked as a programmatic campaign for the kind of peace which would be durable and profitable for each and all of the peoples involved.

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