- (EIRNS) -- Executive Intelligence Review and the LaRouche
Political Action Committee have been informed by several extremely reliable
Washington, D.C. sources that in the past several days, a prominent Republican
United States Senator has been confronted by Karl Rove and other White
House officials on his alleged "connections with Lyndon LaRouche."
The Senator, who is not, in fact, in any way associated with LaRouche,
denied the charges, but his denials were not believed by the White House
officials. He was pressed by Rove, according to the sources, to issue a
public statement denouncing LaRouche, to "prove" his denials.
EIR has cross-checked the initial incident report with several other well-informed
Washington, D.C. sources, and is satisfied that the essential features
of the report are accurate and can be further documented.
- Upon being informed of the incident today, Lyndon LaRouche
observed that this account of the confrontation with the U.S. Senator,
combined with President Bush's public performance on Thursday evening,
April 28, makes it clear that the entire White House inner circle has gone
stark-raving mad. This insanity and apparent flight-forward reaction to
the growing political influence of Lyndon LaRouche and his associates,
pose a serious national security threat. At a moment when the United States
is facing a global disintegration of the post-Bretton Woods floating-exchange-rate,
dollar-based monetary system, and is also facing an imminent loss of the
combined physical productive capabilities of the U.S.A. aerospace/airline
and auto industries, such insanity at the top of the Executive Branch of
the Federal government is a matter of grave concern. Emergency remedial
action is going to be forced upon a reluctant Executive Branch and U.S.
Congress by the imminent bankruptcies of both General Motors and Ford.
Yet the White House leadership is apparently losing all touch with reality.
- LaRouche singled out President Bush's performance during
his Thursday evening White House press conference. In response to a reporter's
question about his Social Security privatization scheme, the President,
in effect, announced the sovereign default of the United States Government,
by declaring that the U.S. Treasury Bonds in the Social Security Trust
Fund were worthless IOUs. Yet, just seconds later, the President said that
worried investors could place their privatized Social Security accounts
in bonds, rather than in risky Wall Street stocks.
- The President said, according to the official White House
transcript of the April 28, 2005 press conference: "Now, it's very
important for our fellow citizens to understand that there is not a bank
account here in Washington, D.C., where we take your payroll taxes and
hold it for you and then give it back to you when you retire. Our system
here is called pay-as-you-go. You pay into the system through your payroll
taxes, and the government spends it. It spends the money on the current
retirees, and with the money left over, it funds other government programs.
And all that's left behind is file cabinets full of IOUs."
- Then, in response to the same question, the President
continued: "People say, well I don't want to have-take risks. Well,
as I had a line in my opening statement, there are ways where you don't
have to take risk. People say, I'm worried about the stock market going
down right before I retire. You can manage your assets. You can go from
bonds and stocks to only bonds as you get older."
- But the President had just described the U.S. Treasury
Bonds in the Trust Fund as "file cabinets full of IOUs." This,
LaRouche observed, is clinical insanity. How will the governments of Japan,
South Korea and China, who all hold vast reserves of U.S. Treasury Bonds
respond to the President's declaration that these are worthless IOUs? Has
the President, by his foolishness, triggered a potential pullout of U.S.
Treasuries, thereby triggering a near-term dollar crash? How close are
we to such a cataclysmic event, as the result of the President's foolishness?
- LaRouche added that the credible report of the Rove incident
with the Republican U.S. Senator also indicates that others in the inner
circle of President Bush are equally mad, and that this pervasive insanity
in and around the Oval Office is a matter of immediate grave concern for
all Americans, and for leading officials around the world, whose own security
is very much tied to the state of mind of the U.S. Presidency. The collective
insanity at the White House, LaRouche concluded, can not go ignored, but
at the gravest threat to world stability.