[CN Editor -- In the past, I have pointed out that "LaRouche is 
not infallible." Yet at times, the "Wacky Frenchman" really seems 
to be *extraordinarily* on-target. This is especially true, I 
think, in his economic analyses. What follows is from the May 30, 
1994, *The New Federalist*.]


In an interview with the weekly radio program "EIR Talks" on May 
19, Lyndon LaRouche commented on the jailing of Carlos Andres 
Perez (CAP), a former President of Venezuela.

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Carlos Andres Perez in his second incarnation as President 
inaugurated the group of IMF [International Monetary Fund] 
conditionalities measures which caused a shock to the entire 
country of Venezuela, and had an effect on neighboring economies.

Now, CAP was very close to the organization of Diego Cisneros, 
which is Gustavo Cisnero's organization. Gustavo Cisneros was 
engaged in very wild speculation, together with putting his 
brother Ricardo Cisneros in charge of the Banco Latino. According 
to all the reports of the examination so far, they ran Banco 
Latino the way that some people were accused of running 
syndicates of savings and loan associations back in the 1980s.

This was against the interest of those in Venezuela who were 
investing in the nation of Venezuela. So very rapidly, CAP went 
from being a popular President to one of the most hated men in 
Venezuela. He eventually was pretty much hounded out of office 
for his financial irregularities as President.

New election, we have a new President: Caldera. The Cisneros 
organization and its friends were not satisfied with that. They 
had to try to wreck the country politically with the support of 
foreign agencies; and they set out to destroy the new presidency 
of Caldera.

In the process of that, they went after my friend, Alejandro 
Pena. While CAP's old friend, Cisneros, starts to go after Pena 
*to protect CAP* and CAP's faction, CAP himself ends up in the 

But what this represents is more importantly defined as follows:

We are coming to the point, at which the IMF system, the Federal 
Reserve system, in their present forms, are DOOMED. Nothing can 
be done to save them, and no money should be wasted trying to 
save them. But what happens is, you have this doomed dinosaur -- 
its eggs aren't fertile anymore -- and it becomes desperate and 
frantic as the Cisneros organization did.

They were doomed. They were caught with their hands in the till. 
Ricardo Cisneros is a fugitive from justice because of what 
happened to the bank. But they won't give up. They sit in there 
in their fight like a species facing extinction; and they have 
this attitude of *apres nous le deluge*, after me comes nothing, 
comes chaos. I don't care, I'm going to fight to get every moment 
of power and wealth I can have before I go down; and if I go 
down, I'm going to take the world with me.

But that's not just a Venezuelan problem: It's a problem around 
the world. The policies and the policy complex behind Maggie 
Thatcher in London and her crony, or what she describes in her 
memoirs as her virtual stooge, then President George Bush: that 
system, that way of life, that new world disorder, is doomed.

But George ain't going quietly; neither are the Thatcherites; 
neither is the Diego Cisneros organization, or CAP. So CAP goes 
to prison. IT'S A SIGN OF THE TIMES GLOBALLY. Fundamental changes 
are in order. Probably the most important crisis in all modern 
history is now falling around our ears. And old institutions that 
seemed to rule the world for decades, are now going down into the 

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