EIR Daily Alert Service
MONDAY, DECEMBER 14, 2015
Volume 2, Number 81
EIR Daily Alert Service
P.O. Box 17390, Washington, DC 20041-0390
• This Week: Shut Down Wall Street, No More Suicides!
• ‘Riot in the Casino’ This Week?
• COP21: This Murderous Bomb May Fail To Explode
• Bay Area LaRouche PAC Event Gives Tour d’Horizon of World Potential
• Los Angeles Times Upends New York Times, and Obama, on California Terror
• New York Times Cowers in Fear of Obama and Covers for San Bernardino Terrorist Attack
• How Obama’s Usurping of Powers Set the Stage for Trump
• Turkish Fishing Boat Provocation of Russian Ship Aborted
• China Pushing Japan into Competition in the New Paradigm
EDITORIAL
This Week: Shut Down Wall Street, No More Suicides!
Dec. 13 (EIRNS)—With so-called “junk debt” markets plunging and experts warning of a “riot in the Wall Street casino” this week if the Federal Reserve raises rates, EIR Founding Editor Lyndon LaRouche today made a very strong proposal; indeed, a demand on the elected representatives and citizens of the United States.
“Close in on this and shut this Wall Street casino down, this week.” LaRouche said, “Remember what is the effect on the people of this kind of crash. We cannot have more suicides, or any more of what happened in Italy last week.”
Italy is in an uproar since an Italian citizen committed suicide after an insolvent bank expropriated all his savings in an outrageous “bail-in” procedure, which also expropriated many others across four failing banks. This infamous “Cyprus-style” procedure has been repeatedly used in Europe as banks collapse, and more expropriations are coming. “People have been being murdered by their banking systems,” as LaRouche put it.
In the United States the sudden “junk debt collapse” is only a harbinger of a Wall Street collapse worse than 2008, with worse impacts on human livelihoods on a global scale.
“We cannot allow it to continue,” LaRouche added. “You have worthless accounts, of so-called debt ‘assets’ which are in collapse, and they’re being used to kill people’s income, their employment, potentially their food supply, and even to kill them. If you don’t shut down these Wall Street ‘funds,’ now, you will see what has just happened in Italy, on a grand scale.
“I mean it is an ‘edge of death’ situation, if we don’t shut down those pretended assets. Close down the Wall Street system, bankrupt it as Franklin Roosevelt did during his Presidency.
“Then, countries have to create national credit for productivity and employment, again as Roosevelt did.”
It is Barack Obama who has blocked restoration of the Glass-Steagall Act, which is the key to bankrupting Wall Street and allowing productive credit to take effect on the economy.
The same Obama has brought in the “Paris climate agreement,” so-called, which—if it were to be carried out—would reduce the economy’s ability to support human life, by 80-90% in the next 35 years.
“This is a bold human genocide if allowed to occur,” LaRouche said. “We can’t allow it to occur.
“That means closing out Wall Street—and that includes Donald Trump—and getting Obama out. Good people in both political parties can agree, to move the responsible authorities in Congress to get these objectives done.”
COLLAPSING WESTERN FINANCIAL SYSTEM
‘Riot in the Casino’ This Week?
Dec. 13 (EIRNS)—That was the forecast of former Reagan Administration budget official David Stockman, referring to the Federal Reserve’s apparent intention to raise interest rates—for the first time in 10 years—in the teeth of an accelerating junk-debt and commodity price collapse.
Junk debt (junk bonds and leveraged loans) in the U.S. economy, as a reminder, totals at least $2 trillion in “assets” mainly held by banks, although many mutual, pension, and hedge funds are also involved. The junk-debt market decline has gotten very sharp in December, with interest rates on middling (CCC-rated) junk bonds hitting 17.25% Dec. 10 and shooting upwards. This debt is essentially impossible to refinance. In recent weeks the ratings agencies and banks have charted a “spike” in defaults and bankruptcies of junk debtors—concentrated in oil and gas exploration and related services—and warned the “spike” will become a “wave” in January-February.
Now, two junk creditors have gone under. Two debt-invested funds have liquidated in the past few days. The first was actually a mutual fund: the $1.8 billion, “well-respected” Third Avenue Capital on Dec. 10. Its founder Martin Whitman is designated a “legendary vulture investor.” Just as that was being explained away (“it was investing in unrated debt”), the second went under on Dec. 11. Thus was Stone Lion Capital, a $2 billion hedge fund which was one of those investing in Puerto Rico distressed debt.
Some see a “Bear Stearns moment”—i.e., the bankruptcy of the two CLO-invested hedge funds in June 2007, which exposed the “non-containment” of the mortgage securities/derivatives meltdown. Vulture investor Carl Icahn gave a “keg of dynamite” interview on CNBC, saying “I believe the meltdown in High Yield is just beginning.”
The Wall Street Journal wrote Dec. 11, “The move is also a sign of how much the market for [all—ed.] corporate debt is deteriorating. ‘Investors have been dazzled that yields on bonds have climbed so high, even while default rates remained low,’ said … a longtime junk-bond analyst. ‘Currently, though, the ability to sell a large position is especially poor. When that tension gets especially high, you can see something snap.’ ”
The century-old British colonial looter Anglo American, which was making “energy-junk” loans on a large scale, is suddenly at the brink of junk itself, with Moody’s downgrading it Saturday to one step above junk for all its divisions and placing a negative advisory on all of them. Credit default spreads on both Anglo American and Glencore rate them at more than a 50% chance of default, requiring $1,000 cash up front to insure $10,000 of their debt.
SCIENCE & INFRASTRUCTURE
COP21: This Murderous Bomb May Fail To Explode
Dec. 13 (EIRNS)—Obama “gets far more energized about slashing energy use than about Islamist terrorism,” write Paul Driessen and Roger Bezdek in their report on the Paris “greenhouse gas” agreement for which Obama, British Crown agent Hans-Joachim Schellnhuber are claiming triumphal credit.
Driessen and Bezdek show that if the Paris agreement were actually carried out, the releases of CO2 and other greenhouse gases would have to be reduced by 80% from 1990 levels to 2050, “which means the world would have eliminate 96% of the greenhouse gases that all humanity would likely release if we reach world population levels, economic growth, and living standards predicted for 2050.” The elimination of such huge proportions of economic activity and high-flux energy production, would mean the elimination of billions of people, dying early and needlessly from disease, malnutrition, lack of water, lack of heat, and other burdens.
“There is a strong positive relationship between GDP and carbon-based energy consumption,” they write. “Slashing fossil energy use that far would thus require decimating economic growth, job creation and preservation, and average per-person incomes. In fact, average world per capita GDP would plummet from a projected $30,600 in 2050 to a miserable $1,200 per year.
“Average per capita GDP in 2050 would be less than what Americans had in 1830!… That would be catastrophic for jobs, health and welfare in developed countries—and lethal to millions in poor nations, who would be denied the blessings of electricity and fossil fuels for decades to come….” [Emphasis in original.]
COP21 mastermind Schellnhuber, who has stated his belief that 1 billion people is the Earth’s maximum “carrying capacity,” said after the agreement: “To stabilize our climate, CO2 emissions have to peak well before 2030, and should be eliminated as soon as possible after 2050.” This is absurd, since CO2 emissions are already falling globally, according to a scientific report presented in Paris during the conference and published in Nature Climate Science. This is largely due to economic decline, concentrated in the Trilateral economies, and resulting drops in consumption of fossil fuels.
To get the agreement, Obama, the European Union countries, and the Vatican had to bribe developing countries with a $100 billion fund to sign, and substitute “agreement” for “treaty”—i.e., the countries’ pledges to reduce greenhouse gases are voluntary, and so are the money pledges. The U.S. Congress is not likely to allow any U.S. funds for this purpose.
So the genocidal intention of the British Royal planners of COP21 may be aborted—but in the United States, Obama will accelerate his drive to enforce this Paris agreement by Executive Orders. He will impose great further ruin on the U.S. industrial economy, unless he is removed from office now.
U.S. POLITICAL AND ECONOMIC
Bay Area LaRouche PAC Event Gives Tour d’Horizon of World Potential
Dec. 13 (EIRNS)—On Saturday, Dec. 12, the San Francisco Bay Area LaRouche PAC conference, “End Obama’s Threat of Nuclear War—Establish the New Paradigm,” proved a riveting four-hour session of deliberative discussion of mankind’s common aims and urgent tasks. Presentations by Lyndon LaRouche, former U.S. Sen. Mike Gravel, Erik Wilson of My Job Depends On Ag, and Ben Deniston of the LaRouche PAC Science Team provoked an activating discussion of what U.S. citizens must do.
American statesman LaRouche opened the meeting with a Q&A dialogue with the audience which included 40 people in Alameda, California, another 25-30 attending satellite meetings in Los Angeles and Seattle, and an unknown number watching via YouTube. See
The Bay Area audience was delighted at the opportunity to speak directly with LaRouche. LaRouche focused the Q&A on the urgent necessity of uniting sane Democrats and Republicans right now to immediately remove Obama, in their activity to grow the two major political parties, respectively, by bringing the Obama administration to an immediate end.
U.S. Senator Mike Gravel (1969-1981) presented his current mission of breaking Obama’s foreign policy, such as Obama’s attempt to militarily re-occupy the Philippines in order to prepare for war with China, in a repeat of the Thucydides trap.
Senator Gravel also inspired the audience by insisting to a somewhat demoralized member of the audience that all citizens have power, which led to another audience member pointing out one of the sponsors of H.Res.198, to impeach Obama, was Congressman Tom McClintock of California, whom the questioner had been working over for years, prompting the whole audience to understand Senator Gravel’s point.
Erik Wilson, one of the co-founders of the Facebook group, My Job Depends On Ag, gave an uplifting explanation of “Why Farm a Desert?” which is the title of a two-part article he wrote for the group. Going after those who claim that California’s Central Valley is a desert, Wilson made the point that the Valley, 300 miles long and 60 miles wide, not only has the best growing soil in the world, but the dry, low humidity climate there is the perfect growing condition for the 400 different crops produced. A paradigm for problem-solving, if, as Wilson said, Americans again think like President John Kennedy about how to build the future.
Ben Deniston concluded the meeting with LaRouche’s challenge to citizens today: Defining what it means to be human and enhancing that quality by driving scientific discovery as a Galactic species on the water problem.
Los Angeles Times Upends New York Times, and Obama, on California Terror
Dec. 13 (EIRNS)—The Dec. 11 New York Times’ blatant denial, for Obama, of the Paris-San Bernardino-ISIS connection, was contradicted by a Los Angeles Times article the same day, which accessed FBI and other government sources below Obama.
Several Federal investigators who remained anonymous told the Los Angeles Times that the still-expanding investigation into the San Bernardino terrorist mass murder attack is moving toward finding outside coordination or possibly control of the husband-and-wife terrorists. The article gives the context of the terrorist attack at Fort Hood in 2009, and the aborted attack on a Texas cartoonists’ meeting this year; in both cases the “homegrown” terrorists were given direct orders to carry out the killings, by al-Qaeda’s Al-Awlaki and ISIS’ Muhammad Miski, respectively.
After FBI Director James Comey testified that the San Bernardino killers were both radicalized separately—in Saudi Arabia and in California—long before they met each other, and that both of them pledged allegiance to ISIS on the day of the murders, “ ‘Somebody had to put these two people together,’ said one FBI source. It’s a big world for them to just find each other.’ ”
The Los Angeles Times continues, “ ‘At the least they were inspired to do this,’ said one Federal law enforcement official. ‘At the worst, they were not only told to do something, but got help. We’re working toward the worst.’
“Said another, ‘This could end up either way. But, the source added, ‘it’s likely we’ll find some other hands involved, some way.’ ” [emphasis added]
The paper’s sources also indicated the investigation is likely to be a long one, and could take “weeks or months” to establish the operation. It remains to be seen whether it will be allowed by the White House to continue on the necessary scale, or blocked by more preemptory, false statements from Obama that “the homeland” is safe from ISIS’ reach.
In Saudi Arabia, according to the Tribune Newspapers, the monarchy has forbidden all media from interviewing relatives or acquaintances of Tashfeen Malik, the terrorist wife.
New York Times Cowers in Fear of Obama and Covers for San Bernardino Terrorist Attack
Dec. 12 (EIRNS)—The New York Times shamelessly gave cover to President Barack Obama’s latest Big Lie, claiming that the San Bernardino terrorist attack was not a replay of the Paris armed blind terror attack of Nov. 13. The Times devoted the lead front-page story in today’s edition to a fractured fairy tale account of the San Bernardino terrorist couple, Syed Rizwan Farook and Tashfeen Malik, by focusing on Farook’s childhood friend, now a key government witness, Enrique Marquez.
The Times went to great lengths to portray Marquez and Farook as losers who engaged in wild fantasies and drunken bar tales about terrorist plots. The Times’ profile of Marquez quoted him talking about sleeper cells all over the United States, but dismissed the claims as bar talk which no one took seriously. Marquez has admitted to Federal authorities that he purchased two rifles for Farook, which were both used in the San Bernardino attacks, and he claims that he and Farook were planning a terrorist attack in 2012, but backed out after the FBI busted a local group of Arabs in a sting around a similar plot.
The Times interviewed patrons at a local bar where Marquez worked and socialized, all intended to bury the actual leads on terrorist ties by portraying Marquez and Farook as “average Joes” who gave no actual clues about their activities or plans. The Times failed to note that the Sept. 11 hijackers, including ringleader Mohammed Atta, cultivated similar profiles in the months leading up to the attacks.
In discussion with colleagues on Saturday, Dec. 12, Lyndon LaRouche blasted the New York Times for engaging in a flagrant fraud, clearly demanded by the Obama White House. Federal government sources have confirmed that Obama immediately ordered the FBI to downplay the San Bernardino incident, by denying it was linked in any way to the Nov. 13 Paris attacks, or that Farook and Malik had any ties to ISIS or any other foreign terrorist networks. This, despite the fact that Farook traveled to Saudi Arabia to arrange the marriage to Malik long after he had been radicalized and more than a year after he purchased the two rifles.
LaRouche noted that Obama still conducts his Tuesday kill sessions, and has already targeted New York Times reporters, including James Risen, who reported on whistleblowers inside the U.S. intelligence community. “Obama is a killer and the people at the New York Times are clearly terrified of Obama and are now acting under Obama threats and orders.”
LaRouche emphasized that the character of the Paris attacks and the San Bernardino attacks was the same. In both instances, there were blind terror targets, heavy weapons and plans for a mass kill/suicide mission. The Times story failed to remind readers that Farook and Malik had assembled 20 pipe bombs and had thousands of rounds of ammunition. They carefully destroyed electronic evidence that might lead to accomplices before launching the attack. Malik had attended a notorious Saudi Wahhabi-run madrassa in Pakistan, and had been inculcated with that neo-Salafist ideology over a long period of time.
The New York Times, which three years ago had exposed Obama’s kill lists and Tuesday sessions, has been turned into a dishrag out of fear of Obama retribution.
How Obama’s Usurping of Powers Set the Stage for Trump
Dec. 13 (EIRNS)—Nationally recognized U.S. Constitutional law authority Jonathan Turley of Washington, D.C., a nemesis of Executive Privilege, attacks Obama’s continuous illegal use of it to make the point that this is exactly what Democrats hate about Trump. But now, those Democrats who cheered Obama’s illegal use of Presidential power, have themselves to blame for Donald Trump.
In an op-ed in today’s Washington Post, “How Obama’s Power Plays Set the Stage for Trump,” Turley points out that GOP front-runner Trump sees no need to defer any Presidential action to Congress, which Trump describes as “grossly incompetent” and “pathetically weak.”
“But if Democrats are alarmed by this glimpse into a Trump administration … which would bar Muslims from entering the U.S. and build a wall all along the Mexican border … they are in part to blame…. Obama has used his willingness to go it alone as a rallying cry for Democrats…. ‘Where [Congress] won’t act, I will,’ said Obama. Though the expansion of Presidential authority did not start with Obama, and George W. Bush was widely criticized for seeking unilateral powers after 9/11, Turley says, “Obama has been particularly aggressive.”
“The problem with allowing a President to become a government unto himself is that you cannot guarantee who the next President might be,” says Turley, pointing out that the legislative changes which candidates have promised, citing Ted Cruz, Ben Carson, Mike Huckabee want to make, might be made by Executive order such as Obama did on the Affordable Care Act and immigration. Turley warns, “The Obama model will be attractive to successors who, although they may have a different agenda, have the same appetite for unilateral decisions.”
So, Americans—including Jonathan Turley—should nip this threat of dictatorship in the bud and take up American statesman Lyndon LaRouche’s call to impeach Obama now.
STRATEGIC WAR DANGER
Turkish Fishing Boat Provocation of Russian Ship Aborted
Dec. 13 (EIRNS)—Early Sunday morning in the Aegean Sea, a Russian destroyer anchored off the coast of a Greek island in the Aegean had to fire warning shots across the bow of a Turkish fishing vessel that sailed on a collision course toward it, RT reported, citing a Russia Ministry of Defense statement. The Turkish vessel did not respond to flares, light or radio contact signals by the Russian destroyer Smetlivy. Only when the Russian ship fired small arms fire across the Turkish ship’s bow—which was “strategically aimed to guarantee that the Turkish ship was out of the way”—did the Turkish ship change course, without ever replying to the Russian signals,” RT reported.
Following the incident, the Russian Defense Ministry warned the Turkish military attaché in Moscow about “the possible harmful consequences of the reckless actions by Ankara against the Russian military contingent involved in tackling international terrorism in Syria.” RT reported, “Deep concerns were voiced over another provocative action by the Turkish side against the Russian patrol ship Smetlivy in the Aegean Sea, which forced them to open warning fire in order to avoid a collision with the Turkish vessel.”
The incident occurred in the northern Aegean, approximately 12 nautical miles from the Greek island of Lemnos. The crew of the Kashin-class guided missile destroyer Smetlivy spotted the Turkish fishing trawler some 1,000 meters from the Russian warship early Sunday morning, sailing towards the destroyer while ignoring all attempts to communicate. When the Turkish vessel approached to about 600 meters, the Smetlivy opened small arms fire at a spot in front of the trawler. The Russian Defense Ministry reported that the Turkish fishing ship changed course after that, and kept about 540 meters from the Smetlivy.
The Turkish military and naval attaché at the Turkish Embassy in Moscow, Rear Adm. Ahmet Gunes, was summoned on an urgent basis to the Russian Defense Ministry for a meeting with Russian Deputy Defense Minister Anatoly Antonov this morning, where he received “a strict representation concerning detrimental consequences of the reckless actions of Ankara towards the Russian military contingent, which is performing counterterrorist tasks in Syria.” The Russian Defense Ministry’s statement concluded, “Just by good fortune, the tragedy had been avoided.”
NEW WORLD ECONOMIC ORDER
China Pushing Japan into Competition in the New Paradigm
Dec. 13 (EIRNS)—In the high-speed rail and “Make in India” agreements between Japanese Prime Minister Shinzo Abe and India’s Prime Minister Narendra Modi this week, there are clear signs of the extraordinary China-Japan competition which has been created by China’s new “win-win” paradigm of international relations, especially the Silk Road development corridors.
After China bested Japan to win the agreement to finance and build Indonesia’s first high-speed rail corridor, Japan has now beaten out China to finance and build India’s first high-speed rail, from Mumbai to Ahmedabad. Japan gave a new definition to “low-cost infrastructure credit” for the $15 billion project: 50 years at 0.01% interest! India’s Rail Minister Suresh Prabhu told the Indian daily Business Standard, “In 50 years, India’s economy would be $20 trillion with an organic growth of 7.5%. We have to create the awareness in people that you can’t reach that level unless you invest in infrastructure.” The Japanese loan is likely to account for 81% of the total cost of this project. Prabhu added, “When this [bullet train] will come, it will create an entire ecosystem of opportunities, as 85% of the trains would be made in India. So spin-off benefit would be huge.”
Nikkei Asian Review reported that Abe, at the same time, signed a memorandum of cooperation with India to modernize and upgrade other railways in India. This long-term agreement was valued at $90 billion by a senior official of Japan’s Ministry of Economy, Trade and Industry, the Review said.
And Press Trust of India reported that besides Indian participation in making the train sets, there is also a general “Make in India” fund of about $12.5 billion set up by Japan, and India is committed to provide incentives for attracting investments into “Japan Industrial Townships” in India.
On Dec. 13 the competition “went nuclear,” with a major article in Tokyo’s Yomiuri Shimbun warning that China may race away from Japan in exporting nuclear power plants, where Japan has been primus inter pares among Russia, fading France, and upstart South Korea. The article huffs and puffs about the “dangers” of China’s “untested Hualong 100 reactors” flooding Eurasia. But it ends, “For Japan, the export of nuclear power technologies is a pillar of the nation’s infrastructure export drive. It is crucial to further polish the nation’s technological capability and produce tangible results. We also urge the government to start discussions about constructing new reactors in Japan.”
IF CONGRESS WILL NOT IMPEACH O’BAMA THEN YOU NEED TO CONTACT YOUR ATTORNEY TO IMPEACH YOUR CONGRESSPERSON AND GET SOMEONE ELSE IN OFFICE WHO WILL DO HIS JOB…CONGRESSPERSONS NOW ARE TRAITORS (LARGELY) AND COMMITTING MALFEASANCE AGAINST THEIR CONSTITUENTS, TREASON, DERELICTION OF DUTY, ETC.
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