The Howard Family: Stooges for the Synarchy - Citizens Electoral ...

Page The New Citizen July/August 2006LaRouche’s June 9 Webcast: “We’re on the edge of Hell, Globally”The following are La-Rouche’s opening remarks. TheDVD of this powerful webcastis available from the CEC.We are now in times, asyou shall soon discover,throughout the United States,throughout the hemisphere, andthroughout Europe in particular,we’re living in times of the typethat most of you living todayhave never dreamed couldhappen, let alone experience.I am a forecaster, amongother things, and probablythe best economist in theworld. And that’s not a brag,that’s simply a fact. I madesome discoveries back in thecourse of the late 1940s, early1950s, and as a managementconsultant, I applied someaspects of my discoveries tothe current situation at thattime, 1956. I was looking atthe situation, 1955-1956, in theautomobile and other industriesin the United States, and I said,“This has come to an end.We’re going to have, by early1957, the deepest recessionof the post-war period.” Andin February 1957, we had thedeepest recession of the postwarperiod.by John HoefleReprinted from ExecutiveIntelligence Review.In the world of internationalfinance, there are those whosteer events, and those whoreact to events. While the latterare often better known, greaterin number, and seeminglymore powerful, true powerrests with the former. At thecentre of the global financialsystem, squatting like a spiderat the centre of its web, are theultramontane imperialists, theVenetian financier oligarchyand its Norman chivalricpartners. The wealth ofthese oligarchic families ishistorically concentrated intangible things—land, oil,precious metals, strategicminerals —and in controllingthe financing and trade ofthose items and othernecessities and conveniencesof life.In the Venetian system, theperpetuation of the power ofthe group over world affairsis paramount. The families’funds, or fondi, are pooled formaximum effect, and deployedthrough a network of financialinstitutions which hide theirorigin from an unsuspectingpublic. This network includesinsurance companies likeAssicurazioni Generali ofVenice, central banks likethe Bank of England and theU.S. Federal Reserve, andmerchant/investment bankslike Rothschild and LazardFrères, whose individualpower is but a reflection ofthe power of the system asa whole.The Con ofGlobalisationThe post-World War IIactivities of Lazard (the Frèreshas been dropped) is indicativeof the way this fondi systemworks. Lazard has been at theforefront of the mergers andacquisition business, whichitself is a euphemism for thecreation of a global networkof giant cartels more powerfulLazard’s Felix Rohatyn (l.) and former U.S. Senator Warren Rudman announceda Lazard-run private “Infrastructure Fund” last year as a counter to LaRouche’sproposals for a national banking-financed, infrastructure-led recovery. Lazard ispartners in three joint ventures with Macquarie Bank, another notorious looterof infrastructure.Encouraged by that, Iwent further with longrangeforecasting, basedon an understanding of thecharacteristic mistakes built intothe current policy of the 1950sof the United States, includingthe policies of [Federal ReserveChairman] Arthur Burns. AndI warned, I said we face thefollowing situation: “Unlesswe change these policies whichare now in effect, the policiesestablished in 1954 under theArthur Burns change in thecredit practices of the UnitedStates, we will go into the1960s, and by the middle of the1960s, we will enter a period ofcrises, of serious internationalmonetary crises. And if it isnot corrected then, by thebeginning of the 1970s, weshall experience a breakdownof the existing internationalmonetary system.” Each one ofthese forecasts came on, wasfulfilled in a timely fashion.In 1967, the British poundsterlingwent belly-up, inOctober-November of that year.From January through Februaryof 1968, the U.S. dollar went,not belly-up, but went into aLooking Behind The Venetian Curtaint h a n n a t i o n s ,which control thenecessities of life,and set the termsfor their availability.T h i s p r o c e s s ,which is explicitlydesigned to destroythe United Statesand the very conceptof the nation-state,is Felix Rohatyn’slife’s work.The oil industryis perhaps the best exampleof how this process works.It is dominated by a cartelof giant companies whichcontrol the distributionand processing of crudeoil and its byproducts,and a network of financialinstitutions which set theprice through manipulationsof the futures markets. Thissystem, which reaches deepinto the pockets of peoplearound the world, was setup by Royal Dutch/Shelland its investment banks,Rothschild and Lazard, usingthe manipulated oil crises ofthe 1970s and people likethe notorious Marc Rich.(Rothschild and Lazard werealso behind Enron, whichwas part of an operation todo to electricity and naturalgas pricing, what they hadalready done to oil.)Rothschild, in particular,has a long history withRoyal Dutch/Shell. Bythe early 1900s, grabbingcontrol of newly discoveredoil fields and the oil tradewas a major concern of thefondi. Rothschild, actingfor its masters, boughtoil interests in pre-SovietRussia and built up a fleet oftankers. In 1911, Rothschildconsolidated its Russianoil interests into RoyalDutch and Shell Transportand Trading, making theHouse of Rothschild thelargest shareholders ineach of those since-mergedcompanies. The closerelationship between thebank and the oil companyremain to this day, as bothThe Venetians founded modern central banking.They proclaimed their continuity from whatthe Bible called the “Whore of Babylon”, byadopting its symbol of a winged lion.push globalisation. Lazardhas its own connectionsto Royal Dutch/Shell,representing the companyin France, and both Lazardand Rothschild have beenactive in Houston. Lazard,through its investments in thebusiness enterprises of theBush family, has played a keyrole in inflicting two BushPresidents upon the world,and it was Rothschild’sGeorge Soros who bailedGeorge W. Bush out of hisfailed oil venture.B o t h L a z a r d a n dRothschild are tightlyconnected to the internationalmetals and minerals business.Rothschild was involved inthe financing, and with it,ownership interests, in CecilRhodes’ De Beers diamondoperations and Rio Tinto,now one of the world’s largestmetals companies. Lazardcounted among its clientsPhilipp Brothers, then theworld’s largest metals-tradingcompany, and EnglehardIndustries, the world’slargest refiner of preciousmetals, which it merged intoa company 22% owned byAnglo American. Lazardis also closely tied to theshadowy Société Générale deBelgique (SGB), a companywith extensive raw materialsholdings. SGB’s chairman isViscount Etienne Davignon,who is also the chairman ofthe Bilderberg Group anda former European Unionsteel czar, who launched theglobal restructuring of thesteel industry.The Australian wing of the Synarchy sponsored fascist armies in the 1930s, andare pushing a police state today, as the CEC documented in its groundbreakingApril 2004 New Citizen (right, and top).severe crisis. In 1971-1972, theexisting world monetary systemof that time was shut down.I have never made a mistake,in a long-range forecast. Everytime I have forecast, it hashappened precisely as I forecastit: that unless certain changeswere made, certain thingswould happen. It has alwayshappened.It is now happening.I warned earlier this year, ofthis crisis presently happening.It is now happening. Duringthe past three months, the rateof acceleration of collapse oninternational markets, as wellas in the U.S., has increased;there is a combination ofhyperinflation like that ofGermany 1923, and collapsesin whole sections and wholechunks of financial markets.That process will continue.I have estimated that, unlessthere’s a change, the entireinternational financial systemcould collapse by approximatelySeptember of this year, or evenearlier.It will happen. I don’t makemistakes in these matters.And many people in the worldnow, reluctantly or otherwise,agree with me, that I’ve beenright on this, that that’s thesituation.There is no hope for theUnited States, if the Congresswalks away from this session,and goes out and campaignsto a population that hatesit increasingly, especiallyDemocrats, and there’s notmuch hope that this nation willnot go into chaos.The Road to Hell Is PavedWith DenialNow, you have additionalproblems here, and I’ll dealwith this —this is going to be atough presentation for many ofyou, because you will tend todeny the facts that I present toyou. Because people do that. It’slike looking at what happenedin New York City on Sept. 11,2001. When people are facedwith horrible events, they tryto say, “It’s not happening.Tell me, it’s not happening!It isn’t happening! It couldn’thappen! It’s not happening!”And they say, “You have tobe wrong. Because I can’tbelieve it would happen”—evenwhen it’s happening! “No! Itdidn’t happen. I can’t believe—it couldn’t have happened!”That’s what people are like. Andtherefore, they will deny, anddeny, and deny.And that’s how they go toHell.Now, my job is not to sitback and gloat, and say, “Okay,you’re going to Hell.” I don’ttake much pleasure in thatsort of thing. Besides, I’m notworking for that guy, downthere. But, Rohatyn is!And therefore, it’s importantthat you understand the ugliestfacts you’ve ever heard about,in truth. Facts that pertain to theimmediate situation, now.You’re going to have tolearn, also, a couple of historylessons, that almost no onehas learned in any educationalinstitution generally, in the past40 or 50 years. You’re going tohave to learn something aboutwhat the United States is, andwhy enemies of the UnitedStates, such as Felix Rohatynand his ally, George Shultz,are determined to destroy thiscountry! And to face the uglyfact that many members of theCongress, Senators and others,are either not going to fightRohatyn on this, or are going tolook the other way and pretendthey didn’t know what washappening.You’re going to find yourselfin a situation, comparable insome respects to what happenedto ancient Athens, which wasdrawn into sophistry, the cult ofsophistry, which is the precedentfor the sophistry that occupiesmost of the people in the UnitedStates today. People never tellthe truth! They say what theywant to be overheard saying—not the truth. Faced with thetruth they don’t want to admit,they deny it. They lie. They lieto themselves, above all. Andtherefore, they make decisionsbased on their own lies. Andthey go to Hell. Or the nationgoes to Hell, as Greece did inthe Peloponnesian War, andthereafter.And you face a time where ourcountry was almost destroyed,beginning with the death ofPresident Franklin Roosevelt.And I’m going to give you thathistory lesson, the essentialsof it, because the world is, asmost of you don’t believe itever was. And we’re on theedge of Hell, globally. We’reon the edge of a Dark Age forall humanity, unless we makecertain changes. And you’regoing to have to kick ass in thepolitical layers of the UnitedStates, as asses have never beenkicked before! You’re going togive them this special kind ofuplifting experience!Pathetic Whinge-bag Attacks LaRouche, CECALP Victorian Senator Kim Carr (r.). This tub of jelly is the “hard man ofthe Victorian Left”? While crusading against McMansions, hypocrite Carrlives in one himself in Pascoe Vale. But maybe that is the only size house he could fit in. See http://andrewlanderyou.blogspot.com/2005_12_01_andrewlanderyou_archive.html for more info. Carr ranted in Parliament on June 20 thatLaRouche and the CEC are “anti-Semitic”, a line cooked up by the Leibler brothers.

Rohatyn's Fascist Roots Are Showingby Jeffrey Steinberg andPierre BeaudryReprinted from ExecutiveIntelligence ReviewDuring and immediatelyfollowing the SecondWorld War, U.S. intelligenceagencies, including MilitaryIntelligence, the StateDepartment, and the Officeof Strategic Services (OSS),developed exhaustive files onthe Synarchist International,the international financier andindustrial cartel behind theFascist and Nazi Axis.To appreciate the depth ofunderstanding of the SynarchistInternational among U.S.intelligence professionalsof that era, just consider thefollowing brief summary ofa 100-page July 1941 U.S./French dossier on the FrenchSynarchist organisations—the Synarchist Movement ofEmpire (SME), the SynarchistRevolutionary Convention(SRC), and the SecretCommittee of RevolutionaryAction (SCRA), the militaryleadership arm of the SME,also known as the “Cagoulards”(“the hooded ones”):“The Synarchist movementis an international movementborn after the VersaillesTreaty, which was financedand directed by certainfinancial groups belongingto the top internationalbanking community. Its aim isessentially to overthrow in everycountry, where they exist, theparliamentary régimes whichare considered insufficientlydevoted to the interests ofthese groups and, therefore, toodifficult to control because ofthe number of persons requiredto control them.”The dossier continued, “SMEproposes therefore to substitutethem by authoritarian régimesmore docile and more easilymaneuverable. Power wouldbe concentrated in the handsof the CEOs of industry andin designated representativesof chosen banking groups foreach country.”Vichy FranceIn France, the United Statesmaintained diplomatic relationswith the Nazi puppet Vichyrégime, in part, as a means ofmaintaining links to Frenchresistance circles, includingmilitary resistance networksinside the Vichy government.Thus, the U.S. had extensiveaccess to intelligence on theFrench Synarchist apparatus,which dominated the Hitlercollaborationist Vichy governmentin southern France (Hitlerdirectly occupied the north ofFrance, including Paris, and,in 1942, grabbed all of France,sending the remnants of Vichyinto exile in North Africa).In 1943, President FranklinRoosevelt assigned WilliamLanger, the Director of theResearch and Analysis Branchof the OSS, to prepare an officialaccount on the complex andcontroversial U.S. diplomacytoward Vichy France. His reportwas published in declassifiedform in Our Vichy Gamble(New York: Alfred A. Knopf,1947). Langer drew uponthousands of pages of classifiedwartime documents. He wouldlater take a leave of absencefrom his post as chairman of theHistory Department at HarvardUniversity to organise the CIA’sOffice of National Estimates,the premier U.S. intelligencecommunity analytical agency,and he served on the President’sForeign Intelligence AdvisoryBoard from 1961 until his deathin 1977.Langer’s Our Vichy Gamblecarefully delineated the Vichyrégime factions, and identified“the Banque Worms clique”as the most hard-core of thepro-Hitler elements. … “Thesepeople were as good fascists asany in Europe. They dreaded thePopular Front [France’s 1930spro-labor government –ed.] likethe plague and were convincedthat they could prosper evenunder Hitler’s iron rod. Manyof them had long had extensiveand intimate business relationswith German interests andwere still dreaming of a newsystem of ‘synarchy,’ whichmeant government of Europeon fascist principles by aninternational brotherhood offinanciers and industrialists.”Langer continued: “Butpeculiarly identified with theDarlan régime was the BanqueWorms et Cie, headed byHippolyte Worms …”And, as another late 1940report from U.S. intelligencerecorded, “The aims of theBanque Worms group are thesame as those of ‘Synarchie,’and the leaders of the twogroups are, in most cases,identical.”Royal Dutch Shell, Lazard,and Banque WormsIt is no surprise that themanaging director of LazardFrères, André Meyer, shouldshow up on a 1944 U.S. MilitaryIntelligence list of knownwartime Synarchists. BanqueWorms, from its inception, wasvirtually a creation of Lazard,and both Lazard and the Wormsgroup were leading French assetsof the Anglo-Dutch combine,centred in Royal Dutch Shelland in the Rothschild bankingorganisation. Hippolyte Worms,the founder of Banque Worms,was a shipping magnate,whose business was built onits contracts to deliver RoyalDutch Shell oil. He was alsoone of 12 founding membersof the Synarchist Movementof Empire (SME), the secretorganisation behind the deliveryof France over to Hitler and theNazis. Lazard Frères was theFrench investment bank forShell, and it was in that capacitythat Lazard was instrumental inthe creation of the banking armof the Worms group, BanqueWorms et Cie. …“The Lazard managers,” thedocument continued, “did notwant to burn all their bridgeswith Germany because theystill had friends in the Germanworld of finance. Furthermore,the Lazard house in France wasthe official bank of the RoyalDutch, a Dutch company withBritish capital. Furthermore, thepresident of Royal Dutch, SirHenri Deterding, after havingserved England for a long time,had shown a certain sympathyfor Hitler’s Germany andThe Synarchist Devastation of the U.S. Economy (cont. from p.4)Cont. from Page 4Royal Dutch Shell boss of the 1920s-1930s, Sir Henri Deterding, above left, andin his Nazi uniform, financed Hitler in the 1930s. Sir Robert Menzies was hisrepresentative in Australia.The New Citizen July/August 2006 Page Can you pick the Fascist?Notorious Jewish fascist Vladimir Jabotinsky twice tried to join forces withHitler in the 1930s. The journal of Mark Leibler’s Australia/Israel & JewishAffairs Council (AIJAC), The Review, was founded by supportersof Jabotinsky. Its former editor, ALP Victorian MP and LaRouche-haterMichael Danby, proclaimed Jabotinsky to be merely a “much misunderstoodcentre-right Zionist ideologue”. Leibler is a “tax minimisation”specialist for Australia’s Synarchy; the billions he has saved the Big Endof Town ultimately come out of your pocket.provided funds to the NationalSocialist Party without breakingwith the business world ofthe City of London. At thetime of Munich, Deterdingcontributed to ‘expediting’Mr. Chamberlain before Hitlerin Godesberg in September1938. Because of the positionof Deterding, the directors ofLazard and especially AndréMeyer, had to adopt an attitudeof expectation vis à vis Hitler,regardless of his anti-Semitism.It appears that they approved ofMunich.”The André Meyer of theMunich treachery and thepromotion of the Worms clique,would, at the close of WorldWar II, adopt Felix Rohatynas his protégé and successor asmanaging partner of Lazard.Meyer once described Rohatynin a New York Times interview:“In some respects, I considerhim as my son.”income. So despite the majorauto companies’ cheapeningof cars by outsourcingand globalisation, they arecheapening the wages at thesame time, and their sales crisisgets worse.What is happening to theseplants? Their machinery contentis being sold off within monthsof their closing, in auctions ofentire plants at once, from floorto ceiling. The machine tools,even if new, are usually soldfor 15-20 cents on the dollarof their replacement value.Those that are not scrappedare then, for the most part,shipped out of the country,because the majority of thebuyers in these, largely Internet,auctions are foreign firms, andin some cases, foreign divisionsof the same auto companieswhich are selling them off.The destinations, most often,are in Asia, or in Mexico anda few other Ibero-Americancountries.This Internet auctionprocess—tens of millionsof square feet of the mostproductive capacity which U.S.industry still has—has causedshock among those in Congress,and other elected officials, whohave learned about it fromLaRouche’s Political ActionCommittee.At the beginning of June, wedelivered another shock—therevelation that the Delphi Corp.bankruptcy—the centrepiece ofthe unravelling and outsourcingof the entire industry, with 25auto plants of that companyclosing down—had been“strategically planned” forThe Yonggwang nuclear power station, South Korea. America’s idle auto plants could be converted to produce nuclearpower plants and other vital infrastructure.Delphi by the fascist bankerFelix Rohatyn, personally.Rohatyn is Lyndon LaRouche’sleading enemy for influencein the Democratic Party in theUnited States.Felix Rohatyn is perhapsthe most active “mergers andacquisitions” banker in theworld; he has represented theLazard Frères bank group, andwas trained there by AndréMeyer; this places Rohatyn inthe centre of the heritage ofsynarchist fascist bank circles inEurope in the 1920s and 1930s,centred around Lazard Frèresand Banque Worms. For ITT’sboard, Rohatyn helped plan thePinochet takeover in Chile. Hispublic U.S. roles have been inplanning bankers’ takeoversof government functionsand infrastructure, includingprivatisation of military logisticsand warfighting, and includingthe bankers’ dictatorshipestablished over New YorkCity in its bankruptcy crisis of1974-75.S i n c e R o h a t y n h a sprominently opposed LaRoucheon the entire auto crisis question,the revelation that he personallyplanned the worst outsourcingdebacle in U.S. industrialhistory, has had a very healthyshock effect.Mexico and U.S.,Nuclear PowerOn June 14, another shockingrevelation in a Midwestnewspaper is that Ford MotorCompany’s top managementhas been in secret talks withMexico’s government aboutmoving a large part of the autoassembly it is closing down inthe United States, to Mexico,with tax concessions and othersubsidies from the Mexicangovernment. It seems that withglobalisation, the United Statesprivate sector requires Mexicansto do everything, because atmuch cheaper wages—whetherby importing the immigrants, orby exporting the industry.Is this good for Mexico?LaRouche has said that thecooperation policy must beone of cross-border economicdevelopment, Great AmericanDesert greening projects andother infrastructure, with aborder open to migration. Hereis how he has discussed thisspecific question:“We have to think aboutupgrading the entire worldpopulation.... How do we dothat? We create large projects,which utilize high technology,as expressed by science andby the machine-tool sector,to drive projects. We absorbthe less-skilled layers of thepopulation, into supportingroles, but being upgradedthrough their association withtechnological progress. Wethen take the United Statesand Western Europe, whichstill have advanced-technologyand have the technologydrivercapabilities.... And weinsist that those areas whichare capable of maintaininga high-technology driverprogram, commit themselvesto specialising in things that areneeded by the rest of the worldwhich needs access to thattechnology.... They need a largeinfrastructure-developmentprogram, of cooperation amongthem, to be able to develop theircountries, in concert.”The remains of a steel plant near Pittsburgh, Pennsylvania. Not content withmerely shutting plants, the Synarchy is literally dynamiting them to stop the U.S.from any hope of an economic recovery.This is the role of nucleartechnology—but also, of theretooling of the auto industry’sadvanced capacities. TheUnited States still has advancednuclear technology institutesand firms—the LaRoucheYouth Movement in SouthernCalifornia toured one of thesecompany’s facilities two weeksago, seeing the entire potentialprocess of constructing thepebble-bed type fourthgenerationhigh-temperaturenuclear reactor. But let us startbuilding the reactors! Then itbecomes obvious, the UnitedStates no longer has supplyfirms to build the pressurevessels, the heat-exchangers,the compressors and vacuumpumps, the mass productionof pumps, valves, and pipinginvolved. The constructing firmwill have to turn to the militaryor the national laboratories forfuel assemblies.These systems can be builtin auto plants, especially in theauto supply plants which aremuch more rich in machinetools, than the assemblyplants—in the past, in fact,auto plants in both St. Louisand Adrian, Michigan havebuilt nuclear fuel assemblies;auto plants in many locationshave built compressors and fullaircraft jet engines; auto plantsin Michigan and Louisianahave built rockets for the spaceprogram; auto suppliers inCalifornia have built satellites.Probably only for the nuclearpressure vessels’ construction,will entirely new facilities haveto be built.The relationship LaRouchedescribed is not only thatbetween technology-drivereconomies and those nationswhich need nuclear technology.It is also the relationship, ininfrastructure projects, betweenthe skilled machining withoutwhich they can’t be done, andthe much larger number ofsemi-skilled and unskilled jobswhich are always thus created.As the financial marketscrash, the demand for suchprojects will force the U.S.Congress to act, given thatLaRouche and his movementhave clearly shown them, whataction must be taken.

Page The New Citizen July/August 2006The Synarchist Devastation of the U.S. Economyby Paul GallagherThe following are excerpts froma presentation by EIR economicseditor Paul Gallagher to a June 15,2006 Mexico-Argentina conferenceon nuclear energy. His account of thecarnage the Synarchists have wroughtagainst the American economy—supposedlythe world’s strongest—isbreathtaking. Australia has been hit bythe same forces, with the same result.Subheads have been added.Beginning in February 2005,economist Lyndon LaRouchepublicly forecast that the major UnitedStates automobile companies were ina profound debt crisis and headed forcollapse. Within 30 days, LaRouchehad written a memo, “Strategic Actionby the Senate,” which warned thatpreventing the virtual disappearanceof the U.S. auto sector, depended ona Congressional intervention to usethe discarded capacity of that sector,for large-scale modern infrastructureprojects desperately needed by thenation. In April 2006, in a meeting withstate elected officials and heads of autounion locals, LaRouche introduced anoutline of Congressional emergencylegislation, to create a Federal PublicCorporation, and to act through it totake the scores of auto plants beingclosed down, and issue credits for theirretooling for building rail transport,power, water and other infrastructure.Arsenal of DemocracyHere is the way Lyndon LaRouchedescribed the auto/machine-tool sector,the “last line” of such technologicalcapability left in the United States:“We have in society, certain categoriesof people who are associated with themachine-tool sector of industry. If youwant production, if you want progress,science is not enough.“For example: Suppose you’re ascientist, you make a discovery: Howdo you certify a discovery? Well, youhave to design a test apparatus, whichactually is a test-of- principle apparatus.Now, in that apparatus, you will havebuilt in something, which actually isnew. It tests the principle you havenever consciously used before. You’retesting to see if it actually works, theway you have conjectured it would.“Now, once you’ve done that, andit does work, now you have a secretyou’ve discovered: That test apparatus,that you designed, is the basis for whatFREECOPYFor a free copy of the CEC's April 2004 edition (pictured above),and LaRouche's DVD call toll-free 1800 636 432 or send inthis coupon to CEC PO Box 376 Coburg Vic 3058, and leaveALL your details below.Name:Address:Phone:Email:++we call, a ‘machine-tool design.’“Now, this is the way you takea population which has moderateskills, moderate scientific skills, andthrough the machine-tool approach,you produce product and systemswhereby a large population, thousandsof people, can work around a fewhundred people, who are involved inmachine-tool design. In a sense, themachine-tool designer, by introducinginnovation into the productive process,and employing thousands of peoplein using the innovation, increases theproductive powers of labour of theentire population. So, what they’retrying to do by destroying GeneralMotors, and the rest of the autoindustry, and the aircraft industry, isdestroying the machine-tool capabilityof the United States! Which means,what? We no longer have the abilityto develop technology, we can onlycopy other people’s. We’re beingdestroyed.”Already today, the United States:has only two domestically ownedpotential builders of nuclear plants,and those builders have no suppliersat all in the United States, shouldthey receive contracts to resumebuilding nuclear plants at home; hasno builder of any kind of railroadcars, and only one maker of railroadlocomotives; has no domesticallyowned producer of modern tanksfor warfare; does not domesticallyproduce guidance elements for spacerockets and missiles; has outsourcedproduction for the majority of partscontent for civilian aircraft, and a largefraction of parts content for militaryaircraft. As the Machinists union’spresident Thomas Buffenbarger told aWashington, D.C. conference in May,“the United States doesn’t producethe means of its own prosperity; andnow, it can no longer even produce themeans for its own military security.”The lathe is one of the oldest andmost common of machine tools.The “potter’s wheel” of productionof industrial machinery, the lathe’sflexibility and precision determinesthe exactness and the variety ofmachine shapes that can be made,symmetrically around an axis. In theproduction of high-speed electricrail locomotives and cars, wheels,magnets, springs, and many other partsmust be “turned” to within tolerancesof one-tenth or one-twentieth of amillimetre—for magnetic levitationsystems, even greater precision in!relatively large mechanical parts isrequired. And these tolerances mustbe optically measurable over an entireassembly—say, of a rail car’s wheeland-axletruck, or its suspension.Lathes capable of this precisionare found in the auto supply plantsnow being closed down wholesalein the United States, along with theflash-optical systems to measurethe tolerances—and these machinetools are being auctioned off over theInternet, at pennies on the dollar, as theplants close.This is but one example. If Congresstakes this priceless unused capacity,and preserves the workforce whichis experienced in using it, and issuescredit and contracts, it has takenhold of the basis for a new nationalinfrastructure for the United States.If not, the completely post-industrialeconomy crashes in the ongoingcollapses of its financial bubbles.During World War II, the leadershipon whom the entire anti-fascist worldof nations depended for production ofthe sinews of war—President FranklinRoosevelt, and his chief productionaide Harry Hopkins—showed thenumber-one importance they gave tothe number and quality of machinetools America’s factories and machineshops possessed, by referring to theentire nation’s productive capacityas “machine tools.” Following majorwartime conferences, Hopkins wouldissue summaries: the orders for militaryoperations which had to go out to eachof the top U.S. and British commanders,would be listed; and then, “and ordersto be given to Machine Tools, thatpriority is the production of lightwarships for transport...” or somethingsimilar.“Machine Tools,” to Hopkins andRoosevelt, referred immediately tothe Defence Plants Corporation; andto the national machine-tool reservewhich they had deliberately called intobeing, stored at various armories andmilitary bases, immediately availablefor lease to any corporation that wasretooling for a war-industry productionmission. “Machine Tools,” to Hopkinsand Roosevelt, meant the ability toretool, to shift production to what wasurgent to the national economy andmilitary capability—and the ability toproduce entirely new types of facilities,for new breakthroughs like the nuclearManhattan Project. Thus, to them,“Machine Tools” were the primarypotential to defeat the fascist powers.The Synarchists are dismantling America’s vital machine tools,represented here, which are centred in the U.S. auto industry.Australia’s machine tool sector has already been obliterated.You Can Help!In coordination with LaRouche’s efforts in the U.S., we have to force thepolicy makers in this country to dump globalisation, and go with a nationalbanking-financed, infrastructure-centred recovery policy.You can help by ordering extra copies of this New Citizen and spreadingthem far and wide, including to any and all elected officials.Call toll-free 1-800-636-432 to order.Already in 1996, the CEC issued the above pamphlet which exposed Rio Tinto’s early “IR reforms”aimed to destroy our skilled, unionised labour force. Without it, we will never rebuild our devastatedmachine tool industry, in which we were world leaders during World War II, when we built this100-ton drawing press, used for pressing, or “drawing” metal blanks into the desired shapes.From at least October 1940 onwards,the United Auto Workers union founderand leader Walter Reuther had callednational attention to the fact thatthe strongest retooling capacity thenation had was in its auto and autosupply plants—the country’s mosttechnologically progressive industry,and the creation of just the previous 25years. As Reuther foresaw, these autoplants became the nation’s retoolingreserve for military production, itsArsenal of Democracy.“A Century of American Empire”What has happened underglobalisation, that LaRouche declaredwar upon in his [Democratic]Party Platform, and is fighting toreverse? Here are the most importantparameters.In 1989-90, “the Berlin Wall camedown,” and the economic/nationalsecurity competition between twosuperpowers, the United Statesand Soviet Union, quickly lost allapproximation of a balance. Aroundthe United States Administrationof George H.W. Bush, father of thecurrent White House resident, anexplicitly “imperial” faction emergedtoward power, epitomized by currentVice President, then Defence SecretaryDick Cheney, his controllers in theProject for the New American Century(PNAC) and Committee on the PresentDanger (CPD), notably George Shultz,and others. This faction believedthat global, “imperial” looting ofpoorer nations’ workforces shouldtake the place of national production.Globalisation, from that policyshift onwards, no longer knew anybounds.From 1990-97, an incredible 65million square feet of industrial spacein the American defence/aerospaceindustries, was closed down and theadvanced machine-tool reservoirwithin it, auctioned off. Nationalemployment in the aerospace industryfell from 900,000 to 550,000—by40%—in those few years, and hasfallen more slowly but continuouslysince.During 2004, Internet auctions wereheld at military bases in California, bywhich most of the “national defencereserve” of the United States wassold off, as if on E-Bay. This nationaldefence reserve consisted primarilyof a reservoir of advanced machinetools “packages” for various lines ofindustrial production. After WorldWar II, it had been preserved andmaintained by act of Congress—the National Industrial Reserve Actof 1948—expanded by the 1973National Defence Reserve Act of 1973;modernised in Defence Appropriationsannual bills. But amendments in1992—when Dick Cheney wasDefence Secretary—and then in 2002,focussed instead on the DefenceSecretary’s responsibility to declarethis reserve surplus and sell it off,relying instead on private machine-toolcapabilities—which had themselvesbeen auctioned off continuously duringthe 1990s. Under Defence SecretaryRumsfeld’s “military modernisation”doctrine, the machine-tool reserve wassurplus and was sold off.The third leg of the United States’once-pre-eminent machine-toolingcapabilities was auto.Now, in 2006-07, we face thescheduled closing down of at least65 major auto plants, taking intoaccount closings announced onlyby General Motors, Ford, and theirbiggest suppliers Delphi Corp., VisteonCorp., and Tower Automotive Corp.Many of the other major suppliershave been thrown into bankruptcy inthe crisis, such as Dana Corp., Collinsand Aikman Corp., and JohnsonControls, as well as Delphi and TowerAutomotive—but their shutdowns arenot shown here.Although there have been periodsof layoff and shutdowns in auto for 25years, this is a completely new orderof magnitude.More major plants are being closeddown in two years, 2006-07, thanin the previous three decades. Some75,000 skilled industrial jobs are beingeliminated directly, and including theindirect effects on the supplier industries,300,000 skilled jobs will disappear ifthis is allowed to proceed, representinga third of the entire auto sector.The closing plants constitute nearly80 million square feet of capacity, mostof it full of versatile machine tools. Thisis more than the frightening shutdownof 60 million square feet of aerospacecapacity in eight years during the 1990s.And it is the only large, diversifiedreservoir of machine-tool capability—and matching workforce skills—whichremains to this country.The immediate factor closing theseplants is the global fall of real wages ofworkforces, in the globalised economy.Indeed, this fall in real wages is theobjective of globalisation, and itis working. Real wages are fallingthroughout North America, Europe,and Japan, while the lowest-wagenations and regions are looted oftheir labour. Under these conditions,auto sales steadily fall; they are verysensitive to drops in real householdContinued Page 3.The New CitizenPublished & printed by:Citizens Media Group Pty Ltd595 Sydney Rd Coburg VicPO Box 376 Coburg Vic 3058ACN: 010 904 757Tel: 03 9354 0544Fax: 03 9354 0166Editor Craig Isherwood