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

Published: Tuesday, June 28, 2005

Volume 4, Issue Number 26

This Week You Need to Know:

The Battle for the U.S. Senate: It's Cheney vs. LaRouche


by Debra Hanania-Freeman


With just days to go before the Congress adjourns for its traditional July 4 recess, the U.S. Senate has been rendered almost dysfunctional because of unrelenting White House pressure on Senate Majority Leader Bill Frist and the GOP leadership, in the face of intractable opposition to the Bush Administration's agenda.

Lyndon LaRouche, in his June 16 webcast, placed tremendous responsibility on the Senate, as the key institution of government under the U.S. Constitution, with the authority to act and provide systemic leadership during this time of great crisis, when the United States is faced with the greatest financial and economic collapse in modern history, and at a time that the inescapable truth is, that the President is mentally and intellectually incompetent to serve.

LaRouche stated: "[George Bush] has shown that mental incompetence: A man who says, as President of the United States, in a time that the national credit of the United States is in jeopardy, that U.S. government bonds are worthless, nothing more than worthless IOUs, that man is obviously mentally ill. And I think that mental illness is sufficient cause to remove him from office. The only problem in removing George from office is that, you've got to get rid of Cheney, too! Because Cheney is a sociopath, a killer! And you cannot have that guy in the White House."

At the time that LaRouche delivered his address, a bipartisan coalition of U.S. Senators, representing the majority of that body, had just successfully put down what was explicitly recognized as an attempted coup d'état by Vice President Dick Cheney and company, by defeating Cheney's so-called "nuclear option." LaRouche identified that group as the nucleus of a bipartisan concert of action that could be mobilized under his leadership to launch an economic recovery.

However, as George Bush's already very tenuous grasp on reality grows weaker in the face of mounting opposition from even his own party, Cheney is being increasingly driven to try to hold the situation together, and block the emerging bipartisan cooperation by any means necessary....

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Latest From LaRouche

'THE KEY TO THE UNITED STATES IS THE UNDERSTANDING — OF THE PRINCIPLE OF IMMORTALITY'

Here is Lyndon LaRouche's address to the European LaRouche Youth Movement Summer Academy on June 23, 2005. The nearly hour-and-a-half presentation before some 70 young people, was followed by some three hours of open discussion, which is not included here.

Recent LaRouche Webcast Presentations*

"A New Bretton Woods: Time To Reverse George Shultz's Destruction of Exchange Controls"
April 7, 2005
*Paid for by LaRouchePAC
New: Proposed Rail Development Corridors in the Indiana-Ohio-Pennsylvania Industrial Belt
The Economy

World and Nation-State

This Week in History

June 26 - July 4, 1936

FDR Nominated for Second Term as President

More than 100,000 people jammed into Franklin Field at the University of Pennsylvania when President Franklin Roosevelt arrived, on June 27, 1936, to accept the Democratic Party's nomination for a second term as President. It was one of the most hard-hitting speeches of Roosevelt's career, an answer to the disturbing events which had challenged the nation over the previous nine months.

The American economy had been improving since Roosevelt's New Deal programs had begun to take effect. Payrolls had doubled, the cash income of farmers had almost doubled, and both stock market and real estate values had risen. But, the more that conditions improved, the louder and more strident became the personal attacks on President Roosevelt. These attacks came from the major investment banking houses, major corporations, and their propaganda outlets, the American Liberty League, and many of the major newspapers.

On Feb. 25 of 1936, a conclave of FDR-haters gathered at the Mayflower Hotel in Washington to cheer former Democratic Presidential candidate Al Smith as he stated that "There can be only one capital—Washington or Moscow." Smith had sounded one of the main themes of the anti-New Dealers, and that was that Roosevelt was taking American down the path to a socialist or Communist dictatorship. The Chicago "Tribune" ran a headline that said "Moscow Orders Reds in U.S. to Back Roosevelt," reporting on a speech made by Earl Browder which was reprinted in Russia. The other anti-Roosevelt theme was that he was leading the country to bankruptcy.

Governor Philip LaFollette of Wisconsin said that the vengeful reaction against Roosevelt's program was like the drunk you picked up from the gutter, who now resented you forever because you had seen him in such an embarrassing position. Roosevelt liked to tell a different story on the same theme. A man in a silk hat fell off a pier and was drowning in the ocean. A bystander jumped off the pier and saved him, but the drowning man's silk hat floated away. The bystander was thanked profusely by the man for saving his life. But three years later, the same man attacked the bystander for not saving the silk hat.

One of the ways that the now-rescued man tried to regain his silk hat was demonstrated by the DuPont family, many of whose members had attended Al Smith's diatribe and were reported to have great influence with him. Treasury Secretary Henry Morgenthau noted in his diary that he had been informed by a banker in strictest confidence that the executives of General Motors, in which the DuPonts had heavy interests, had been selling the dollar short and buying British sterling.

Another side of the attempts to destroy the New Deal was provided by the actions of the Supreme Court in 1936 to return to deregulation of the economy. On January 6, the Court had declared that the Agricultural Adjustment Act was unconstitutional because it was a scheme to impose federal regulations in a matter reserved to the states. The AAA had paid farmers to produce less, using funds collected from taxes on those companies that processed the food. The majority opinion was written by Justice Owen Roberts, a former corporate lawyer who had had as his client the Philadelphia affiliate of J.P. Morgan.

The Roosevelt administration rightfully saw the decision as aimed specifically at federal regulation, for a state legislature would find it very difficult to regulate farm production unless other states followed the same policy. Agricultural policy had to be national. Although the Supreme Court's next move was to uphold the Tennessee Valley Authority, it soon moved on May 18 to strike down the Guffey-Snyder Act, which had tried to improve conditions in the coal fields through collective bargaining, wages and hours provisions, and price controls.

Although the government lawyers had proved that strikes in the coal industry affected the railroads, and therefore interstate commerce, the Court's majority ruled that such "incidental effects" on interstate commerce were not enough to justify federal regulation. Ironically and tellingly, the Court had previously held the coal industry to be enough involved in interstate commerce to require a federal judge to sentence striking miners to jail.

The straw that broke the camel's back, and even shocked many Republicans, was a High Court decision in June that invalidated the New York State minimum wage law for women. One-third of the 48 states had adopted laws like that of New York. Three of the four conservative judges who voted to overturn the New York law had been corporation lawyers. Their decision more than implied that the states, just like the federal government, were not allowed to regulate industry. Hours after the decision was handed down, Roosevelt commented that "The 'no-man's-land' where no government can function is being more clearly defined."

The other area where danger to America lurked, and one which was linked to the attempts to destroy Roosevelt's reassertion of the American System, was the international situation. In October of 1935, Mussolini's troops had entered Ethiopia. In March of 1936, Hitler reoccupied the Rhineland, and France did nothing. The rise of Francisco Franco in Spain brought the possibility that fascism would overcome the legitimate government, and in July the Spanish Civil War began. Congress had extended the Neutrality Act for another year, but Roosevelt knew that a weakened economy would not prepare America for a future war that might have to be fought.

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Links to articles from
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Vol. 32, No. 26
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Feature:

The Battle for the U.S. Senate: It's Cheney vs. LaRouche
by Debra Hanania-Freeman
With just days to go before the Congress adjourns for its traditional July 4 recess, the U.S. Senate has been rendered almost dysfunctional because of unrelenting White House pressure on Senate Majority Leader Bill Frist and the GOPleadership, in the face of intractable opposition to the Bush Administration's agenda. Lyndon LaRouche, in his June 16 webcast, placed tremendous responsibility on the Senate, as the key institution of government under the U.S. Constitution, with the authority to act and provide systemic leadership during this time of great crisis, when the United States is faced with the greatest financial and economic collapse in modern history, and at a time that the inescapable truth is, that the President is mentally and intellectually incompetent to serve.

  • LaRouche in Dialogue With the U.S. Senate
    Here is Lyndon LaRouche's discussion with Senate sources who sent questions following his webcast address on June 16. A few additional questions and answers have been included, where they pertain to issues of immediate concern to the Senate. Other questions came in from labor leaders, state representatives, youth, and others, and can be viewed in the archive at www.larouchepac.com. The dialogue was moderated by Debra Hanania-Freeman, LaRouche's spokeswoman.

National:

Senators Battle White House on Issues of War, Torture, Vets
by Nancy Spannaus

'Mr. Bush now has to decide how to respond in a way that shows he's not a lame duck,' wrote the pro-Administration Wall Street Journal in its June 22 editorial, reviewing the implications of the failure of the Administration to ram through the nomination of John Bolton as U.S. Ambassador to the United Nations. In fact, it's already too late. Faced with intractable opposition to his agenda on multiple fronts— Bolton, the Iraq war, Social Security, the torture scandal, and the military base closings, to mention just the most prominent—President Bush is losing his already tenuous grasp on reality, and the Administration is being held together increasingly by the sheer thuggery of Vice President Dick Cheney.

Hysteria in the Shultz Camp: The Incredible Shrinking Governator
by Harley Schlanger
In the time it takes to read this article, the popularity of California Governor Arnold Schwarzenegger may have dropped another point or two! With his announcement on June 13 that there will be a special election on Nov. 8 to vote on his 'reform' agenda, it became clear that Arnie's string-pullers, headed by archfascist George Pratt Shultz, are prepared to go all the way to transform the state into a low-wage, deregulated, postindustrial looting ground, to benefit the financial and corporate interests which funded his election in the 2003 recall campaign.

Interview: John R. Pierce, M.D.
Save Walter Reed Medical Center From the Scrapheap

Dr. Pierce, Colonel Medical Corps, U.S.Army(ret.), has been the Medical Inspector for the Veterans Health Administration since November 2004. He was on active duty in the U.S. Army Medical Corps for 30 years, stationed in Hawaii, Germany, Colorado, and Washington, D.C. His assignments included Chief, Department of Pediatrics, Residency Program Director, Deputy Commander for Clinical Services, and Director of Medical Education—all at Walter Reed Army Medical Center. He also served as Consultant in Pediatrics to the Surgeon General for seven years.


Investigation:

Ohio Funding Scandal Leads to Bush-Cheney Election Theft
by Richard Freeman and Edward Spannaus

Investigators in Ohio are probing whether missing and lost funds from the Ohio Bureau of Workers' Compensation, were used to help the Bush-Cheney ticket steal theNovemberPresidential elections in that state. Without Ohio's electoral votes, Bush would not be President. Last Nov. 9, in his first post-election webcast, Lyndon LaRouche declared that the vote-suppression operations run by the Bush-Cheney campaign in Ohio and elsewhere should be treated as a criminal matter. 'The kinds of fraud which were perpetrated by the Republicans alone in this election, were sufficient to send these guys to jail, if not to un-elect them,' LaRouche said. With recent developments in Ohio, we may be nearing that objective.


International:

It's Time for Maastricht's Control Over Europe To End
by Rainer Apel
After the collapse of the June 16-17 European Union summit, it is evident that the EU is in a profound crisis. For several days after the June 1 'No' vote in the Dutch referendum on theEU constitution, European leaders were still trying to play down the fact that with this vote, and the 'No' vote in France, May 29, the project is dead. Even when Britain, Sweden, Denmark, Ireland, and Portugal cancelled their constitution ratifications during the first two weeks of June, leaders were still trying to create the impression that 'it is bad, but not a disaster,' that some solution would be worked out, and the ratification process would continue.

Interview: Prof. Karl Albrecht Schachtschneider
Europe Should Establish Itself As a Republic Of the Republics—Not As a Super-State
On behalf of Member of Parliament Dr. Peter Gauweiler, Prof. Karl Albrecht Schachtschneider has filed suit against the Constitutional Treaty. He is Professor of Public Law at Erlangen-Nürnberg University, and is a well-known specialist in European law and the European Union's (EU's) proposed Constitutional Treaty. In 1992, it was he who petitioned the Federal Constitutional Court of Germany,3 in an attempt to prevent Germany from ratifying the Maastricht Treaty. In 1998, alongside Professors Wilhelm Hankel, Wilhelm Nölling, and Joachim Starbatty, he again entered a petition in the Federal Constitutional Court to prevent Germany from adopting the euro.

LaRouche Replies to Ibero-American Queries Provoked by His Webcast
In addition to the high number of questions to Lyndon LaRouche during and after his June 16 webcast from especially the U.S. Senate (see Feature, page 7), numerous questions also came from Ibero-America. LaRouche's answers to some of these are reproduced below.

Iran Elections Defeat of Rafsanjani Poses New Dangers
by Muriel Mirak-Weissbach

Every Iranian I have spoken with over the past two months about the June 17 Presidential election, whether political figures, journalists, or ordinary citizens, including those living abroad, was unhesitatingly categorical: Akbar Hashemi Rafsanjani, who had served in that position for two terms between 1989-97 would win hands down. Yet, when election day came rolling around, a shock was delivered...

Russian Editor: Revive 'National System Of Political Economy'
by Rachel Douglas
A 300-page volume of seminal 19th-Century writings on 'national economy' has just been published in Russian by the Yevropa Publishing House in Moscow. Prepared for press by Ekspert magazine editor-in-chief V.A. Fadeyev, who wrote the introduction, the volume includes Friedrich List's 'The National System of Political Economy'; Count Sergei Witte's pamphlet, 'On Nationalism: National Economy and Friedrich List'; and D.I. Mendeleyev's celebrated'ALiterate Tariff, or an Investigation of the Development of Russian Industry in Connection with the General Tariff of 1891.' Fadeyev's introduction is posted on Ekspert's website.

Interview: Antonio Parlato
Italy Is Endangered by Unbridled Globalization
Hon. Antonio Parlato is a leading member of Italy's National Alliance party (Alleanza Nazionale, AN). He was elected to the Chamber of Deputies five times from 1979 to 1996, on the AN slate in Naples. During the first Berlusconi government, he was appointed Undersecretary of the Budget Ministry, with special responsibilities for the Mezzogiorno region, Italy's south. As a Parliamentarian, he was one of the most outspoken critics of the tendency toward financial speculation, and initiated several institutional actions on this issue. He was one of the first supporters of Lyndon LaRouche's New Bretton Woods proposal, and was recently among the first signers of Helga Zepp-LaRouche's Appeal for an Ad Hoc Committee for a New Bretton Woods.


Economics:

FREE TRADE MEANS SLAVE LABOR
What's Behind the 'Hispanic Immigration Crisis'?
by Dennis Small
In his opening presentation at the June 16 international webcast (EIR, June 24), Lyndon LaRouche explained how globalization had 'lowered the productive power of the world, per capita,' taking as an example the way that 'we destroyed the levels of productivity which existed, and standard of living in Mexico, and in South and Central America, while we put the employment there.'

Interest Rates
Sometimes, Nature Conspires
by Lyndon H. LaRouche, Jr.
June 20, 2005
Today, EIR's Kathy Wolfe sent a dispatch featuring the following included element: 'Since before Alan Greenspan's June 6 Beijing speech 'Unprecedented Inversion of the Yield Curve,' the Federal Reserve, Bank for International Settlements, et al. have been hyping a great 'mystery.' This may have something nasty to do with the nomination of Fed Governor Benjamin Bernanke, to the White House Council of Economic Advisors. Bernanke is one of the main architects of the Asian central bank bailout of the U.S. dollar. It is probable he will try to expand this operation, with disastrous consequences. It certainly sends a very strong, foul signal to the Japanese and Chinese.

Will Congress Help Bush Kill Passenger Rail?
by Mary Jane Freeman
At the very moment that the United States desperately needs to rebuild its collapsing economic infrastructure, a policy war is raging over whether to shut down our national passenger rail service, Amtrak. On June 15, a Congressional subcommittee vote slashed Amtrak funding for Fiscal 2006 to $550 million—a 55% cut from its current, completely inadequate level of $1.2 billion. As these maps graphically demonstrate, this slashed funding is, de facto, the zero budget for Amtrak which President Bush demanded.

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Lyndon H. LaRouche, Jr.

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"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.
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