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Date Posted: 16:00:01 11/26/07 Mon
Author: part 1
Subject: November 26, 2007

ICLC BRIEFING INTERNATIONAL VERSION

[A7-48-1/BFG001]:SLG:L: [07/11/25][06:1 ]AM BRIEFING, ENGL
STAND:[0.1.00/ ][1.0.00/ ][ . . / ] [23: ]AREA SECTOR INTEL
SUBJT:[3.3.00/ ][3.1.00/ ][ . . / ] [21: ]ECO-FIN
TOPIC:[210.020 :ECONOMY ]
SUB-T:[210.608 :BANKING CRISIS ]
TITLE:[AM BRIEFING MONDAY NOV 26 2007 ] 1 of Pages

SYNOPSIS:

TO: AM BRIEFING BY: MARCIA M/MIKE B/DAVID C
RE: LAROUCHE. PEOPLE'S DAILY. BAE EXPOSE IN NEW YORK TIMES.

+---------------------------------------------------------------+
| |
| |
| MORNING BRIEFING |
| |
| Monday, November 26, 2007 |
| |
| |
+---------------------------------------------------------------+


LAROUCHE PROVIDES THE FACTOR OF OPTIMISM

Yesterday, the official Chinese government media--Xinhua
News, People's Daily, and China Daily--all published very
positive coverage of Lyndon LaRouche's evaluations and proposals
from his Nov. 24 presentation in Los Angeles at the "Forum on the
U.S.-China Relationship and the Peaceful Reunification of China,"
sponsored by the Institute of Sino Strategic Studies.
Provided on the Xinhua website in Chinese, English, French,
Spanish, and perhaps more, the basic initial release on
LaRouche's presentation was headlined, "Economist: U.S., China
Should Join Hands to Reform World Financial System." Among the
quotes of LaRouche provided in the eight-paragraph article, is
his statement that, "Whenever a powerful combination of national
governments can arrive at a suitable agreement to change a failed
financial-monetary system, a solution for any modern financial
crisis can be found."
A reputable source in Leesburg reported yesterday that these
articles in the government press of China--reporting in a highly
favorable manner on LaRouche's presentation Saturday to the LA
forum on China's peaceful reunification, and on the content of
LaRouche's call for cooperation between the U.S. and China on
finding a solution to the collapse of the global monetary system
in the context of a four-power agreement including Russia and
India--must be considered as an introduction of a factor of
optimism, which is urgently needed in the world today.
LaRouche's speech will be in great demand around the world,
the source said, as it is seen that LaRouche has proposed a
solution for the current global mess.
LaRouche has passed the policy test, he added, while the
others have failed: there is his solution to the domestic crisis
with the HBPA; and his global solution--which has now been
embraced by the Chinese government press.
The text of the Chinese coverage is provided here, as is the
preliminary transcript of the full Question & Answer period
following LaRouche's main Nov. 24 presentation.
As for the factor of (vanquishing) evil, the BAE scandal
attracted new attention this past weekend in the form of a
three-page feature in the Sunday New York Times, giving details
of political crimes by the Tony Blair government and its Saudi
partners, in the BAE affair. While the Times reports aspects of
the live U.S. investigations (under the Foreign Corrupt Practices
Act) of BAE dirty doings, mention is also made of the
investigation of Halliburton, for its activities "during and
after Mr. Cheney's tenure at the company."


- NEWS SUMMARIES -

- LaRouche -

CHINA'S OFFICIAL PRESS COVERED LAROUCHE'S SPEECH IN LOS
ANGELES AND HIS POLICY PROPOSALS EXTREMELY POSITIVELY, showing
the optimism engendered by LaRouche, and that LaRouche's policy
solutions are proving to be uniquely capable of getting the world
out of the mess it is in. (See slug)

AT LEAST FIVE U.S.-BASED CHINESE LANGUAGE PRESS COVERED
LAROUCHE'S SPEECH IN LOS ANGELES. More reports to follow.

XINHUA'S STORY ON LAROUCHE WAS POSTED ON ITS SPANISH-
LANGUAGE AND FRENCH-LANGUAGE SITES by Sunday afternoon, the
French one illustrated with a nice picture of LaRouche on the
home page. Iran's Press TV also covered the Xinhua report.

QUESTIONS AND ANSWERS, FOLLOWING LAROUCHE'S ADDRESS IN LOS
ANGELES, are available in rough, first draft transcription. (See
Leading Developments, below)

IN AUSTRALIAN ELECTIONS, BUSH/CHENEY ALLY HOWARD DUMPED;
LAROUCHE ASSOCIATES IN CEC/LYM GET 28,000 VOTES; LaRouche's
associates in LYM and CEC were the only voice of reality in
Australian Federal election Nov. 24. (See slugs)

- United States -

EXTENSIVE REPORT ON THE U.S. CRIMINAL INVESTIGATION OF THE
BRITISH BAE SCANDAL was published by The New York Times
yesterday. While leaving out the EIR-documented links of BAE to
international terror operations, the report reveals that the
Swiss and a British bagman for the BAE are cooperating with the
DOJ--while the Brits are stonewalling. (See slug)

NEW REPORT SHOWS AMERICAN YOUTH ARE CEASING TO READ. The
National Education Association Nov. 19 report gives shocking
details on Internet and video-game habituation among the 18- to
25-year-old bracket. (See slug)

- Europe -

Democratic Neocon Richard Holbrooke, who orchestrated the
last Balkan wars, is threatening to unleash another by backing
"Kosovo independence" against Serbian and Russian interests. (See
slug)

- Russia -

Russia held a brainstorming conference, under Dr. Yuri
Gromyko, on the urgency of building bridges connecting Sakhalin
Island with both the Russian mainland and Japan. (See slug)

Russia has decided on Svobodny as the site for the Eastern
Cosmodrome--a subject discussed at the Schiller Institute's
Kiedrich Conference (See slug)

- Asia -

A U.S. National Security Council report documents the total
failure of the U.S. war in Afghanistan. Despite the "victory" of
every military operation, the Taliban are taking over. (See slug)

The Chinese Consul General in Los Angeles, speaking at the
same conference with LaRouche, blasted the Bush Administration
and the Congress for duplicity on Taiwan, supporting Taiwan
"independence," and bringing on itself the negative consequences.
(See slug)


LEADING DEVELOPMENTS

Chinese Government Press Covers LaRouche in Los Angeles

Nov. 25 (LPAC)--The official Chinese government press--Xinhua
News, People's Daily, and China Daily--all published the
following report today on Lyndon LaRouche's speech Saturday in
Los Angeles. LaRouche noted that this coverage by the government
press represents the introduction of a factor of optimism which
is urgently needed to deal with the ongoing collapse of the world
monetary-financial system.

ECONOMIST: U.S., CHINA SHOULD JOIN HANDS TO REFORM WORLD
FINANCIAL SYSTEM
Los Angeles (Xinhua)--The United States and China should
join hands in an effort to reform the world financial system,
which has currently entered the most deadly crisis in recent
centuries, a renowned U.S. economist said Saturday.
"The end of the present world monetary-financial system is
inevitable, unless the system is replaced by a new world system
during a relatively brief, remaining time available," said Lyndon
La Rouche at a luncheon at the Forum on U.S.-China Relations and
China's Peaceful Reunification.
La Rouche, also a famous political activist, said the
present international financial crisis could only be brought
under control when major countries like the U.S. and China
cooperate.
"Whenever a powerful combination of national governments can
arrive at a suitable agreement to change a failed financial-
monetary system, a solution for any modern financial crisis can
be found," he said.
He said that the United States should propose to form an
initial sponsoring group made up of the governments of the U.S.,
China, Russia and India, therefore to rally a majority of nations
in order to stabilize the world system.
LaRouche lamented that all evidence has confirmed the
current crisis, notably the recent collapse of the U.S. dollar's
exchange rates against other major currencies, but nothing
visible had been done so far by any government to change the
world financial system to solve the problem.
The forum, jointly organized by several local Chinese-
American, gathered nearly 100 government officials, scholars and
activists from the U.S. and China, who were expected to discuss
issues on U.S.-China relations and their implications on the
Taiwan issue during the two-day event.
"The Taiwan issue remains the sensitive core issue in
China-U.S. relations," said Zhang Yun, consul general of China in
Los Angeles, while speaking earlier at the forum's opening
ceremony. (Ron)


Questions & Answers Following LaRouche Presentation
At Los Angeles, Nov. 24, Forum Sponsored by
Sino Strategic Studies

{Here is the dialogue with Lyndon LaRouche, following his
keynote address, "The United States and China," to the
Forum on the U.S.-China Relationship and the Peaceful
Reunification of China, sponsored by the Institute of Sino
Strategic Studies, in Los Angeles on Nov. 24. [Note: Parts
of the questions were inaudible on the taping; competent
paraphrases and better editing will be forthcoming].}

MODERATOR: Do you mind answering some questions?
LAROUCHE: Oh sure.
MODERATOR: Are there any questions?
MALE: [question not completely audible] I admire
Lyndon LaRouche very much, and I have admired him for a
long time. Now I have question concerning, from the point
of U.S.-China economical relation evolving, we know in the
United States there are so many, many [inaudible], many
parts are made in China, through their hard labor, and
leading to damages of the environment and the character of
wealth. United States' corporation at the upper level are
profit so much of this process. And this process help
United States [inaudible] situation so much.
My question is: [inaudible] answer that as
specifically as possible, is, is there any force in the
world--[inaudible], government, among the people,
governors--is there any force in the world can stop this
process?
LAROUCHE: The point is, this--yes, this is something
I've concentrated on a great deal. You have in China, you
have a mass of dollar obligations, which are held by
China. These dollar obligations are important to the
people of China, for investment in infrastructure. People
talk about environmentalism: This is nonsense talk. Yes,
if you do not develop infrastructure, you have an
environmental problem. If you do not develop water
systems, if you do not develop improved systems against
contamination, to clean the air, to clean the water: If
you do not do these things, you will have a problem!
Therefore, the capital for transportation systems, for
water systems, for power systems, and so forth, is
essential to the people of China, without which the
interior areas of China can not be developed, and the
coastal areas can not be cleaned up of this smog. Hmm?
Therefore, it's important that China have the {use} of its
dollar holdings, to purchase assistance, in terms of
capital goods, for these missions. If the dollar
collapses in value, and the Chinese currency collapses as
a result, then the Chinese people are cheated of their
possibility of a good future.
Therefore, the solution is, is to take the advantage
that the United States government is going to become
terrified in the coming weeks. Because the U.S. dollar
and the U.S. economy is now in the process
{disintegrating}! And that will become apparent to
everybody in a short period of time. The great asset that
the United States has, is China: Because China has become
the leading trading partner for the United States, and the
ability to maintain the economy of China, is to get the
economy of the United States to fix its value, and to get
back to increasing its exports into China!
A stabilized relationship on this basis, between
China and the United States, would change the world!
Every part of the world would have to cooperate. They
would have no choice. Because the {whole world} is
bankrupt, not just the United States, the entire world
system is bankrupt. Money, today, is not worth anything!
You think it's worth something, but it's not--you'll find
out tomorrow, it's not worth anything. The collapse of
the housing crisis, the collapse of the banks--{every bank
of the United States, major bank, is bankrupt}--hopelessly
so--not just Citibank. They're all bankrupt! The U.S. is
bankrupt! The Federal Reserve System is bankrupt!
The U.S. dollar is fictitious, there's no backing for
it. We've been printing dollar obligations all over the
world, and there's nothing to substantiate it. This has
been a criminal insanity.
So therefore, what do you do?
Well, very simply: The government of China and United
States, assuming the United States government is going to
be {increasingly terrified}, every person in the Senate
who voted against China, is in trouble right now,
politically, when they come to back to office, because the
U.S. economy is collapsing: Therefore, the solution is, if
the United States and China negotiate a treaty agreement,
to fix the value of yuan and the dollar, now, as a
fixed-exchange-rate system, every leading economy in the
world will have to join. If we go to a
fixed-exchange-rate system, shut down all so-called
central banking systems, because they're all bankrupt--the
British are bankrupt, hopelessly bankrupt. The Bank of
England is bankrupt, the whole system is bankrupt! The
Queen's personal bank, Coutts, and the Bank of Scotland
are bankrupt. Every country in western Europe is
bankrupt, hopelessly so.
So they have no choice: The world is bankrupt in
financial terms. The only thing we can do, is get
agreements among governments, to return {to a
fixed-exchange-rate system} of the type of that Roosevelt
created during the end of the 1940s.
Then we say, we freeze everything. We have national
banking systems in every country, because you have
bankrupt systems--you can not have the money running free,
you have to have regulated systems: national banking
systems. And you negotiate long-term treaty agreements,
of a 25- to 50-year duration, as packages among countries.
And that way, we can get out of it.
We are going to wipe out many claims to dollars.
We're going to wipe them from the books, or they'll wipe
themselves from the books. We will simply say, "We're
going to pay the essentials, and the other debts are going
to be frozen, until we investigate them." We're going to
have an operating economy.
But the key thing here, is the interdependency of
China on the United States, and the United States on
China, is such, that the Chinese economy would suffer,
internally, from a lack of development if these dollars,
if these claims were devalued. The United States would
collapse without China as a market. {Therefore, these two
nations need each other.} They are prisoners locked as in
a marriage that can not be broken. And they have to
legalize the marriage. [laughter] [applause]

FEMALE: I have a very crucial question to ask. My
question is how do you promote, most emphatically, how do
you promote and convince the government or either any
parties to adopt to your idea, your philosophy, and your
perspective on that strategy? Or the people of the United
States?
Q: Well, the people in the United States are
suffering. They're suffering--the people of the United
States have a 10% popularity for the present Democratic
Party leadership. The people of the United States have
contempt for the Congress, where they did not have
contempt last November, a year ago. The people of the
United States do not like what the Congress is failing to
do right now, with the housing crisis. And the housing
crisis is not only a housing crisis--that's a lie. It's a
banking crisis: The institutions of government and every
bank are in crisis. The people of the United States have
interests, such as housing, such jobs, such as
health-care, things which they're now {losing}! The people
of the United States are ready to revolt--maybe not
tomorrow, but two days from now, or three days from now.
Therefore, you go to the Congress. Now, I have many
friends in the Congress--they're cowardly friends, but
they're friends. And in the institutions of government, in
the professionals in government, you have a better quality
than you do, actually in the elected officials, in many of
them: They understand these kinds of problems. You have
to break the will--.
Let me speak very frankly: You have, out here, you
have a predator who controls the Speaker of the House, is
controlled by a fascist banker, Felix Rohatyn. Who also
control Senator Feinstein from out here, which is what
many of the politics in California suffer from. And good
Democrats are afraid to act politically, because of the
control exerted by these forces, which are actually
fascist forces, like Felix Rohatyn, the man who helped put
Pinochet in power in Chile! He was part of the
administration. And George Shultz, who is no better, was
also part of it.
So the question is, as I said, here today: You have a
powerful financier interest, which is a predatory
financier interest, which is fascist, in point of fact.
Just as fascist as Hitler. They don't yet have the
dictatorship Hitler had, but they have the same direction
of thinking.
The power lies with the people. The problem is, that
the lower 80% of family-income brackets of the people of
the United States have been for over two, three decades,
they've been shut off from real access to their
government, as their government. Now, they're losing their
housing, they're losing their employment, they're losing
everything; they're losing their health-care, they're
losing their pensions. They want an answer! We can
provide answers, and I find that our going directly to the
people on the state level, and the county level, the
county politicians, the elected ones, the state
officials--you get a response there, you don't get in the
Congress now, which is controlled by--the Senate and the
House are totally controlled under the predatory enemies.
So therefore, it's a matter of power: The system is
collapsing, the leading power in the world that controls
the world is losing power. Those in powerful positions in
elected office, are losing power, especially at the
Federal level.
So therefore, if we mobilize the people at the base,
that is, on the state level or the county level, find
officials who are honest and who are responsive, we can
get a change. We're on the verge of the greatest change
in modern history, either for the worst or for the better.
And what we do in organizing the base of the population is
going to determine that.
If we get cooperation, in spirit, between the United
States and China, among the people of the United States
and China, the people of the United States and Russia, the
people of the United States and India, and so forth,
{then} we will find that we have power, in a time of
crisis.
But this is crisis politics. And that's the only
answer to your question: We're in crisis politics. Are
we prepared in an understanding way, as to what we must
do, practically, in these circumstances. We can win. If
we don't win, we're not going to have much of a planet.

Q: [via translator] He said: You guys consider
themselves to be a democratic country, and they believe
themselves to be a responsible member of the international
family. What do you think, Mr. LaRouche, about this Iraq
and Afghanistan war, where the U.S. spends billions and
billions in dollars, only those, people like Cheney
benefitted from such a war? What do you think? That's
number 1.
Number 2, about the environmental situation. U.S. is
the largest CO2 producer in the world. And it's actually
on an increase, the CO2 consumption [sic], and what do you
think in that respect?
LAROUCHE: Well, let's take the second one first,
because the first one has more substance to it.
The idea, the environmental rage associated with Al
Gore, the former Vice President of the United States,
spread among the people of the United States today, is a
fraud. It's based on the shrinkage of the number of
people with scientific qualifications in the leading
population.
My generation, as you know, is the generation--I was
born in 1922--we had some years ago, we had a science
called the Fusion Energy Foundation. It was one of the
leading scientific institutions in the United States, and
was influential internationally. Then, we find, as that
generation, my generation has died out, the younger
generation, the generation that is now in power in
Congress, between the ages of about 50 and 65 years of
age, are scientifically incompetent and inert. And they
appeal to a similar stratum in their own age-group in the
population, which is similarly anti-scientific inert.
These are the 68ers, and they have a 68er ideology, which
is against science, and which is against progress, it's
against agriculture, it's against industry, it's against
blue collar. And this is part of our acute problem.
Now, there is no scientific competence behind what Al
Gore says: It's a fraud. His famous address, television
address, it contains an absolute scientific fraud. This
is nothing but Malthusianism! It's the same kind of
thing, of reduction of population through starvation and
similar types. This is a complete fraud: This is the
enemy of civilization. And I think Bill Clinton, as
President, has recognized by now, that Al Gore was no
friend of his, as President. He was a nuisance; he's a
right-wing fascist, and he should be exposed as that. He
eats too much, among other things. Maybe we would have
less problems!
But the thing on the actuality of this: Most of the
heat in the entire Solar System comes from only one
source, the Sun. The idea that carbon has something to do
with heating is {nonsense}! If you take all--cut down the
carbon, what you'll do, is you're going to increase the
heat! By converting to methods which use biological
materials instead of other kinds of materials for power.
Because if you take a beam of sunlight, and you inject it
into agriculture, or the forests, by the magic of
chlorophyll, you transform solar radiation into viable,
living biomass. This transformation by chlorophyll,
lowers the temperature of the planet, through this growth.
Whereas if you allow this sunlight to just float
around there, or use these methods that he talks about,
the environmentalists talk about, you will actually
{raise} the temperature, by having less development.
So what we need, is a high-technology.
Now, back to the question of the war. The war policy
is related. The war policies come largely from Britain,
because the United States under the present President is
simply controlled by largely international British
financier interests. And the problem is, as has often
been the case in our past history, that the United States
has been controlled from the top by alien interests from
outside the country, usually associated with the dirty
side of finance--as is the case, in this case.
The policy we're dealing with, is that for a long
time, there's been a policy called the "Revolution in
Military Affairs." This was denounced by President
Eisenhower, in his outgoing speech, as President, and it
came from a certain section of what he called "the
military-industrial complex." The idea was to get rid of
regular armies, regular military forces of the United
States, and introduce privately funded warfare, and
private wars, of the type like the British East India
Company used to run, in the world of the 19th century, and
still runs today.
The policy behind these wars, in Southeast Asia, and
more recently in Southwest Asia all come from London.
Dick Cheney, for example, his career was made by the
British interests which are behind Tony Blair, the Prime
Minister. We got into a war in the 1960s, in Vietnam, it
was fraud. It was voted by a fraud, under the terror
conditions, arising out of the assassination of President
Kennedy. The war in Indo-China was that.
The subsequent wars we've gone into, are all the same
thing. This war was started by fraud, it was initiated by
the British. I was involved personally in fighting against
this thing; I was personally victimized on this thing.
This came from London, and Cheney and his wife are
instruments of London. And also there are other people in
the United States, like Rohatyn and like George Shultz,
and so forth, who are essentially more British than they
are American.
And you know what the President is--he's a piece of
waste material, politically. He has no control over his
own government. He's an idiot, he's a mental case, and he
was put in there because he was a mental case, that would
enable other people to control him.
So you're right, this is evil. We have to stop it.
It has to be stopped. We can stop it. And the way to
stop it is very simple: If we build, in the context of
what I already said: If we build cooperation among the
United States, Russia, China, and India, we have a
combination of power, which would be the most powerful
combination of power on this planet. If those powers
agree, on a common interest, {it will be realized}. The
problem is, these nations {are divided against each
other}, on one issue or another. If we can unite these
nations, and others, around a combination of power which
can change world policy, we can solve that problem.
In the case of the environment, the solution is: Go
to high technology. More nuclear power, more high tech,
more promotion of greening of the desert. All of these
things, which will control the climate quite nicely. And
scientists know how to do it. Unfortunately, we have
people in government who are of an age-group that don't
know what science is any more.

MODERATOR: Thank you very much.
LAROUCHE: Thank you. Thank you. [applause]

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