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MONDAY, JANUARY 25, 2016

Volume 2, Number 109

EIR Daily Alert Service

P.O. Box 17390, Washington, DC 20041-0390

EDITORIAL

The Cannibals Are Taking Over—Blame Obama!

Jan. 24 (EIRNS)—The massing of evidence of the genocidal assault against the American people is the single most damning reason why President Barack Obama must be immediately removed from office, as the first step towards shutting down everything for which Wall Street and London stands.

While the heroin epidemic was given a national spotlight when theNew York Times prominently reported on the Jan. 19, 2016 findings of the Centers for Disease Control and Prevention study, declaring a heroin epidemic in every county in the country, state and local authorities have been on an emergency alert for many months, as the body count piles up, and the death rate among young adults and middle-aged Americans from all walks of life, all socio-economic groupings and all job categories skyrockets. A survey of local media in every part of the country reveals a real sense of panic over the heroin epidemic, which has infected every community at an accelerating rate under Obama.

This opium war against the American people is being run directly out of the Oval Office, where President Obama has given the British Empire’s Dope, Inc. a carte blanche to carry out a multi-faceted menticide and genocide against the American people. Obama’s policy of non-prosecution of too-big-to-fail banks that launder the drug money for the Mexican, Colombian and Afghan cartels is an obvious impeachable crime. This constitutes nothing less than complicity in mass murder (starting with the 47,000 Americans who died of drug overdoses in 2014 alone) on the part of the President of the United States.

More to the point, the conscious mass kill policy is the clearest evidence, in the words of Lyndon LaRouche that “The cannibals are taking over.”

Obama has presided over a program of drug legalization, authored by one of his earliest political patrons, George Soros, a notorious British agent whose hedge funds operate offshore, in the Dutch Antilles and outside the reach of American laws.

Obama has also been caught, red-handed, in the mass kill of citizens of Flint, Michigan, who have been systematically poisoned with lead from the Flint River water, with the full knowledge of Obama’s Environmental Protection Agency and the financial control board installed by the Michigan Governor. EPA is a lesser agency of the Federal government—Obama is responsible above all others. The people of Puerto Rico are being put through the same mass kill policy, courtesy of Obama.

Obama’s slavish loyalty to Wall Street and London, as opposed to the American people, has brought on countless other disasters, with the biggest disasters coming in the immediate days and weeks ahead. The five biggest too-big-to-fail banks hold over $250 trillion in worthless derivatives, which, in the case of Morgan Stanley, among others, have been spread out to households across America. This is mass robbery, on the same scale as the Obama-planned bail-in looting—and this gigantic bubble is now exploding out of control.

Some 94 million working age Americans have been excluded from the labor force and are dying. The rate of acceleration of the loss of labor power has increased exponentially under Obama’s watch, while he lies incessantly about the so-called recovery.

The same British assault is being escalated by the day against the nations of continental Europe, as well. Europe has reached a breaking point, between the total disintegration of the banking system, accelerated by the ECB’s bail-in program, and the crisis spilling into Europe from the Middle East and North Africa, where a million refugees have already sought safe haven in Europe, and millions more are expected to arrive. These refugees are fleeing the British-Obama instigated population wars, using regional proxies like Saudi Arabia and Turkey to create conditions for a new Hundred Years War. The crisis has reached an existential point, where the European Union is about to dissolve, if the Schengen open border system is ended, and where even Germany’s hated Finance Minister Schäuble is calling for a Marshall Plan for the Middle East, echoing Helga Zepp-LaRouche, in the hopes of saving Europe from total chaos and collapse.

The entire trans-Atlantic system, in fact, is going through the process of social and economic disintegration, while major parts of Eurasia, under the leadership of China, Russia and India, are pursuing a new paradigm of “win-win” cooperation and real growth. Chinese President Xi Jinping’s just-concluded trip to Saudi Arabia, Egypt, and Iran is indicative of the prospects for mankind’s advancement—if the assault by the British Empire and its proxies can be defeated now.

The real assault against the trans-Atlantic population is being conducted on a cultural level, attacking the cognitive powers of the population through drugs, mass media brainwashing and enhanced techniques like the killer point-and-shoot video games that have addicted so many American and European youth, to the point that they have no productive skills.

As the war is principally cultural, the solution is cultural, as well. As the recent two Schiller Institute performances of Handel’s Messiahin New York City, attended by over 1,000 people illustrated, great Classical music, performed in the proper tuning, can have an extraordinary uplifting impact on people. The revival of Classical music is one of the most powerful weapons to inspire and elevate a population that has been beaten down and demoralized by a century of British assault, dating back to the era of Lord Bertrand Russell, H.G. Wells and the Huxley brothers, on the American and European people.

Step number one for defeating this cultural assault on America is the removal of Obama from the White House—now.

COLLAPSING WESTERN FINANCIAL SYSTEM

FDIC’s Hoenig Restates the Obvious: Bank Bail-In Will Make ‘Panic’ Worse

Jan. 22 (EIRNS)—Reuters reports that FDIC Vice-Chairman Thomas Hoenig, in a Jan. 20 speech to the Peterson Institute for International Economics, repeated what nearly all senior U.S. regulators believe: Bank bail-ins won’t work, and will further destabilize the financial system in an attempt to keep units of insolvent banks in operation.

Hoenig focussed on the latest rule proposed by the Federal Reserve mandating that banks raise as much as $550 billion in “loss-absorbing capital,” informally called “bail-in bonds.” As big banks become insolvent in the crash, their holding companies would be liquidated, and the “bail-in bonds” would instantly become stock of next-to-no value in a new holding company.

“ ‘Mandating increased levels of debt as part of a broad, prescribed resolution strategy has potential effects that, paradoxically, may undermine the very financial stability being sought,’ Hoenig said. “The proposal would force banks to issue hundreds of billions of dollars in new debt and encourage them to acquire riskier, higher-yielding assets or expand into non-bank activities to cover costs.’

“The proposal ‘offers no assurance that the amount of debt required would prove sufficient to avoid a failure, or panic,’ Hoenig added.”

Morgan Stanley the Fifth Horseman of Derivatives Apocalypse

Jan. 24 (EIRNS)—Four of the too-big-to-fail U.S. banks: Citibank, JPMorgan Chase, Goldman Sachs, and Bank of America are sitting on 90.8% of the $192.2 trillion in derivatives “officially listed” on the books of FDIC-insured commercial banking units. When the derivatives on the books of their holding companies are added, these four have 93% of $242 trillion in nominal exposure to derivatives.

But a column by Pam and Russ Martens warns that the exposure of a fifth TBTF institution, Morgan Stanley, poses an even greater risk to American households. Morgan Stanley holds $31 trillion in derivatives, including $1.6 trillion in credit derivatives. But unlike the other banks holding the lion’s share of derivatives, Morgan Stanley is far more involved in retail brokerage accounts and has 15,771 retail brokers as of July 2015 data from the Office of the Comptroller of the Currency. With $404 billion under management, Morgan Stanley has more “mom and pop” clients, investing their retirement and other personal savings, which means that a blowout of their derivatives portfolio can have devastating consequences for an unspoken number of households.

During the 2008 blowout, Morgan Stanley got more than $2 trillion in bailouts from the Fed (they got one lump sum bailout of $107.3 billion on Sept. 29, 2008 alone). Since July 2015, Morgan Stanley stocks have plunged by 38%.

STRATEGIC WAR DANGER

Perry, Others Continue To Warn of Dangers of Nuclear War

Jan. 23 (EIRNS)—Former Secretary of Defense William Perrycontinued his campaign against nuclear war with an op-ed in theHuffington Post on Wednesday (Jan. 20). During the Cold War, he writes, any nuclear war, however it might have started, “could have brought about the end of our civilization.” But the danger is greater now. “I believe that we are now on the verge of a new nuclear arms race, and that we are drifting back to a Cold War mentality,” Perry writes. “Moreover, I believe that the risk of a nuclear catastrophe today is greater than it was during the Cold War—and yet our public is blissfully unaware of the new nuclear dangers they face.”

The other main thrust of Perry’s piece, is that the U.S. should not respond symmetrically to Russia (and says, instead, that “it is time to take a deep breath and ask what we really should be doing on this issue that affects the very survival of our civilization.”) Perry argues that we should not accept the idea that diplomacy on this and other matters between the U.S. and Russia is impossible. “Even as we confront Moscow on disputed issues, we must work together on others such as preventing nuclear proliferation and nuclear terrorism.” He concludes by repeating his call for eliminating the ICBM force and cancelling the program for a new cruise missiles.

In the face of such warnings, Adm. Cecil Haney, the commander of U.S. Strategic Command is lobbying for a bigger budget for nuclear weapons. He told an audience at the Center for Strategic and International Studies in Washington, D.C. on Jan. 22, that the U.S. needs to modernize all three legs of the so-called nuclear triad in order to keep near-peer nations such as Russia and China from feeling they can gain a qualitative edge over America’s military.

Obama Escalates: More Troops for More War in Iraq and Syria

Jan. 24 (EIRNS)—President Obama is throwing more troops into Iraq and Syria, including “boots on the ground.” In the last two weeks, Secretary of Defense Ash Carter made three announcements that the U.S. is deploying 1,800 more troops into Iraq. This is no small increment of Special Forces here and there (200 more in Iraq and 50 in Syria announced last month), but a massive increase in ground forces to more than 5,000 in Iraq—another clear violation of the Constitution’s war powers provision.

On Jan. 13, Carter gave a speech to the 101st Airborne Division at Fort Campbell, Kentucky announcing 1,600 additional U.S. trainers from the Division will go to Iraq. On Jan. 20, he again announced this increase at the Davos conference, and then on Jan. 22, wrote about it in an op-ed in Politico.

The troops will “head there with the support of the American people,” Carter said in the op-ed; a total lie, since the illegal Obama war has never gotten Congressional approval, and, as Middle East veteran Rep. Tulsi Gabbard (D-HI), Gen. Michael Flynn (U.S. Army, ret.) and others have stressed, has been a dismal failure.

At the same time, U.S. Special Forces have reportedly deployed to Rmeilan airfield in Syria’s northern province of Hasakah to support the U.S.-backed Kurdish People’s Protection Units (YPG) against ISIS, a spokesperson for the Syrian Democratic Forces (SDF) told Al Jazeera on Friday. The small, mainly agricultural airfield which is very close to Syria’s borders with Turkey, was previously controlled by the Kurdish YPG, This development could create a rift between Washington and Ankara, since Ankara repeatedly labels the YPG, along with other Kurdish organizations, as a terrorist outfit.

Other dangers are also being reported. Rmeilan is about 71 kilometers from a Russian expansion of an airfield in Qamishli which has Turkey expressing alarm. The Wall Street Journal today raised the specter of possible U.S.-Russian conflict in such close vicinity. And, in the National Interest, that publication’s Defense Editor Dave Majumdar wrote an article, Jan. 22 asking, “Are U.S. Special Forces Facing a Syrian ‘Black Hawk Down’?”

Kerry, Lavrov Work To Salvage Syria Talks against Anglo/Saudi Sabotage

Jan. 24 (EIRNS)—Secretary of State John Kerry and Russian Foreign Minister Sergey Lavrov have stayed in close contact this week about the planned Syrian talks for a ceasefire, after UN Special Envoy Staffan de Mistura’s complained to the UN Security Council on Jan. 18 about the Saudi-backed opposition groups sabotage of his efforts to bring the factions to the table.

On Jan. 23 Kerry and Lavrov spoke by phone, reported TASS,—before Kerry’s arrival in Riyadh where he is meeting the Saudi King and numerous others, including the foreign ministers of Saudi Arabia’s closest allies in the Gulf Cooperation Council (GCC), and the Saudi-created opposition umbrella known as the “High Negotiations Commission” (HNC). The HNC, with Saudi backing, has rejected UN’s role in deciding who to include.

Kerry and Lavrov “expressed [the] common view” that the format of the diplomatic process on Syria should continue to be “the International Syria Support Group [ISSG] led by Russia, the U.S. and UN.” The ISSG meeting in Vienna was the first time that Iran was included in a U.S.-backed meeting on Syria.

In the last week the British Empire’s Saudi and Turkish puppets have done their utmost to stop the meeting originally scheduled for Jan. 25th, by threatening to boycott the ceasefire talks. Despite the delay, Kerry told reporters that, “with good initiative in the next day or so, those talks can get going.” However, these will be “proximity,” not direct talks. In fact, reliable, but unofficial reports, indicate there will be two separate lists of opposition groups—a Saudi list and list suggested by Russia that includes the Kurdish PYD that has been fighting ISIS along with Russian and Syria.

U.S. POLITICAL AND ECONOMIC

Heroin Epidemic Spreading Across the U.S.A.

Jan. 24 (EIRNS)—With the Jan. 19 publication by the Centers for Disease Control and Prevention (CDC) of “Drug Poisoning Mortality: U.S. 2002-2014,” public attention has been focused on the nationwide epidemic. Local authorities have been battling the massive increase in heroin addiction in every part of the country. A Google News sort on “heroin epidemic” turned up over 133,000 news articles, mostly from local and state publications facing the alarming increases in deaths and crime.

New York State has released data showing the skyrocketing of heroin deaths, which went from 923 statewide in 2003 to over 2,300 in 2014. Staten Island has the highest rate of heroin deaths of all of the five boroughs of New York City.

Ohio State Attorney General Mike DeWine convened an emergency statewide meeting last week, in which he warned that the state is now seeing three to four heroin overdose deaths every week.

In New Hampshire, where the first presidential primary election will take place soon, voters say that the number one issue on their minds is the drug epidemic, trumping the major other concerns, including jobs and the overall economic collapse.

Huffington Post reported that Mexican drug cartels are flooding areas of the U.S. with heroin, where there are the highest documented incidents of prescriptions of OxyContin and other doctor-prescribed opiates. The Sackler family, which owns Purdue Pharma, the manufacturer of OxyContin, was recently listed on the Forbesmagazine richest families list, with a personal fortune of $14 billion, almost exclusively based on domestic and foreign sales of the opioid.

Wall Street’s Ace in the Hole for November Elections

Jan. 23 (EIRNS)—The New York Times, CNN and other mainstream media are touting a possible independent presidential run by former New York City Mayor Michael Bloomberg. According to all the news reports, Bloomberg is considering a third party run if it appears by mid-March that Donald Trump and Bernie Sanders are serious possible nominees of the Republican and Democratic parties. Bloomberg aides, speaking on condition of anonymity, said the ex-Mayor was prepared to put up $1 billion of his own money. Mid-March is a deadline for his decision, if he is to meet requirements for ballot status in all 50 states.

Bloomberg was part of a grouping that contemplated a third party slate eight years ago, which included former Sen. David Boren, former California Gov. Arnold Schwarzenegger and former Pennsylvania Governor and DNC Chairman Edward Rendell. Their schemes for staging internet national primary elections collapsed and the entire effort was cancelled.

Rendell told the New York Times that he was interested in a Bloomberg run only if Hillary Clinton faltered or dropped out.

Bloomberg is a real Mussolini type, who imposed brutal austerity as New York mayor. His Bloomberg News has a major spot on cable television and on nationwide FM radio. He is clearly the Wall Street “Plan B” if, as many now anticipate, Hillary Clinton winds up facing criminal charges in the email scandal or the Benghazi investigation blows up further in her face, due to her cover-up of Obama’s role in that tragedy.

THE NEW GLOBAL ECONOMIC ORDER

Xi Praises China’s Long-Term Relations with Iran

Jan. 22 (EIRNS)—A letter by President Xi Jinping to the Iranian people was published in the Iranian papers on the eve of his arrival in Tehran. It underlined the long-standing relations with Iran (earlier Persia) dating back to the ancient Silk Road.

“Over 2,000 years ago during the Western Han Dynasty in China, the Chinese envoy Zhang Qian’s deputy came to Iran and received a warm welcome,” Xi writes. “Seven centuries later during the Tang and Song dynasties, many Iranians came to China’s Xi’an and Guangzhou to study, practice medicine and do business. In the 13th century, the famous Iranian poet Saadi wrote about his unforgettable travel to Kashgar, Xinjiang. In the 15th century, a renowned Chinese navigator Zheng He from the Ming Dynasty, led seven maritime expeditions, which took him to Hormuz in southern Iran three times.”

Iran or Persia was more than any other country in the Middle East a key link on the old Silk Road. Many of the documents and transactions conducted in the historic Silk Road we were written in old Persian.

In the letter, Xi also underlines the close relationship between the two countries during the past 45 years, when Iran was largely under a variety of sanctions from the West. While Iran supplies less than 10% of China’s oil, China represents the biggest client for Iranian oil. The Minister of Energy said on Chinese TV that Iran will not forget the friendship with China as numerous countries come to Iran to initial major energy deals. Chinese engineers are already involved in Iranian oil production.

“In 2013 I put forward the proposal of jointly building the Silk Road Economic Belt and the 21st Century Maritime Silk Road, Xi writes, “which received positive response from Iran. As two important stops on the ancient Silk Road, both China and Iran have high expectations for reviving this road of peace, friendship and cooperation.”

Zepp-LaRouche on Sputnik Radio: Xi Visit the Best Hope for the Mideast

Jan. 22 (EIRNS)—Helga Zepp-LaRouche, the President of the Schiller Institute, was interviewed today on Radio Sputnik’s “Redline” program regarding the emergence of Iran from its pariah status. First she was asked by host Andrew Korybko what she saw resulting from this emergence of Iran on the world situation.

“If Europe and the U.S. would get rid of the casino economy and cooperate with China and the other nations on the New Silk Road, it would be of great benefit,” she said. Zepp-LaRouche noted that all the P5+1 countries were now sending delegations to Tehran to sign deals, but that they would only succeed if they got rid of the casino economy.

Asked about the effect Iranian production would have on the oil prices, Zepp-LaRouche said that some commentators were predicting that oil would go down to $10 a barrel, but that this would be a new version of the sub-mortgage crisis, since all the investment in shale oil would now be worthless.

“The Fed has told the banks that they should keep the old price on the books. And this represents a tremendous cover-up by the banking firms of the real situation,” she said. She noted that Venezuela had already called for an OPEC summit because of the seriousness of the crisis. Everybody is pumping oil in spite of the glut, she said. “Iran is coming back into the market at a critical moment, but they’re preparing for alternative production and moving quickly to nuclear energy and to fusion energy.”

Korybko then asked her view of the Xi visit to the Middle East and his proposal for expanding the Silk Road Belt there.

“The Silk Road Economic Belt and the Maritime Silk Road are presently the only constructive model of cooperation in the world,” she said. “Look at the successful visit of President Xi to the Middle East. The Belt and Road are the only chance to overcome the Sunni-Shi’a divide. President Xi made the point in his beautiful comments on Iran and its connection to the ancient Silk Road. You have to extend the New Silk Road to Southeast Asia and to Africa. We can then create new sources of water through nuclear desalination and building infrastructure. It is the only hope for the people living there to have a future. And the visit therefore offers the greatest hope for the region.”

SCIENCE AND INFRASTRUCTURE

Spread of Dangerous Zika in the Americas Marks Latest Success of Green Intent To Protect Mosquitoes and Kill People

Jan. 22 (EIRNS)—After its arrival in the Americas in Spring 2015, the Zika virus (named for landform in Africa), took hold in Brazil, and since has appeared in 18 nations, the latest of which is the United States, as of this month. At first, the virus was thought to be mild, but now has been identified to be associated with microcephaly (unusually small craniums in newborns, which affect brain development), the life-threatening Guillain-Barré Syndrome (GBS), and potentially other cerebro-neurological damage. Zika is mosquito-borne, by the Aedes aegypti, which also carries related viruses for dengue, chikungunya, and West Nile.

What this spreading scourge marks, is the latest phase of a series of new or resurgent illnesses, whose impact is to sicken and kill off people, which all along was the intent of the green downshift into anti-science, anti-chemical, anti-infrastructure policies of the last 50 years. In particular, for over 40 years, there has been an unwarranted prohibition on the use of chemicals to eradicate or contain disease-carrying mosquitoes, since the time of George H.W. Bush in government, and the banning of DDT. The British green movement succeeded in institutionalizing the environmentalist-genocide outlook in U.S. government.

A new paradigm is urgent, to recommit to science and public health infrastructure, in particular for a crash program of vaccine development, insecticide campaigns, and a return to science and economic development policies.

This week, three U.S. states reported cases. Last week in Hawaii, a microcephaly case was reported in an infant whose mother spent time in Brazil during her pregnancy. In Brazil’s Northeast region, the focal point of the Zika outbreak, hundreds of cases of GBS have been reported. Estimated Zika cases in Brazil range from 400,000 to 1.4 million, with 3,893 suspected cases of Zika-related microcephaly. While many “experts” caution that the link between Zika and GBS isn’t proven, GBS is now showing up in those countries where Zika is spreading rapidly. In El Salvador, where the annual average of GBS cases is 169, public health officials report an “unusual increase” in GBS. The first Zika case was reported there in November 2015, and as of Dec. 31, 2015, there were 3,836 cases identified.

OTHER

Helga Zepp-LaRouche Responds to Schäuble’s Call for a Marshall Plan To Solve Refugee Crisis

Jan. 24 (EIRNS)—Quite unexpectedly for most, German Finance Minister Wolfgang Schäuble took the occasion of a panel discussion on “Europe’s Future” at the World Economic Forum in Davos, Switzerland on Jan. 21, to propose that a “coalition of the willing” invest “billions” in the development of the Middle East and Africa. This comes less than a week after Schiller Institute founder Helga Zepp-LaRouche’s article on the subject, with the headline: “To Break Free Germany Needs the Silk Road Marshall Plan!

We will have to “invest billions into those regions,” in fact, “much more than we thought,” in order to stem the flow of people fleeing to Europe, Schäuble said. “We need a Marshall Plan for the regions that are being destroyed,” Schäuble stated. And given the refusal of a number of European countries to accept imposed quotas on refugees, he proposed a “coalition of the willing” to finance the development plan, and pledged support from Germany. He even agreed with Greek Prime Minister Alexis Tspiras that it would be shameful for Europe to turn itself into a “fortress” and refuse entrance to all those outside the borders.

Mrs. Zepp-LaRouche has long proposed a Marshall Plan approach to Southwest Asia and Africa, and is the co-author of an EIR Special Report, “The New Silk Road Becomes the World Land-Bridge,” a project which includes those same regions. In an international overview article written Jan. 22, she asked what one should think of the German Finance Minister’s apparent about-face on the issue.

“Has Schäuble of all people, the Super-EU European, the bankers’ man, the one who demands discipline from Greece, the Troika’s spokesman for austerity, suddenly discovered his concern for the development of these countries? Whatever—Henry IV already believed that, to work for the good cause, everyone need not be motivated by the highest ideal, some people need to feel the fire under their feet to achieve that goal. Because Schäuble knows that without Schengen there is no euro, and without the euro, there is no more EU. Since there is no solidarity within the EU, it’s better not to exert pressure, which would only make the failure of the Lisbon EU more visible, but just count on ‘the willing.’ ”

Her article goes on to stress the importance of Chinese President Xi’s recent visit to the Middle East and his offer to have those countries join the New Silk Road policy. That, at a time when the overindebted financial system is headed toward a new mega-crash. Schäuble, as Finance Minister, is well aware of that fact. Therefore, if he is serious about a Marshall Plan for the Middle East and Africa, he has to promote Glass-Steagall reforms in all of Europe, as the only way to organize an orderly write-off of the toxic debts and to develop the real economy.

That, concludes Helga Zepp-LaRouche, is the test of whether Saul has really converted to Paul.

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