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THURSDAY, MARCH 17, 2016

Volume2, Number 147

EIR Daily Alert Service

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

EDITORIAL

Face Reality: The Trans-Atlantic Is Doomed, and the Future of Mankind Lies in Eurasia

March 16 (EIRNS)—The Daily Telegraph’s Ambrose Evans-Pritchard has gone hysterical on his recent “discovery” that the trans-Atlantic region is now entering a hyperinflationary blowout. In fact, anyone in their right mind should be well aware that the United States and Europe are already doomed. The U.S. economy is hopeless, and nothing short of a total shift in policy—away from the belief in money over human creativity—can avoid total destruction. There can be no economic revival or even survival under the present policies. It is a miracle that the United States still even exists at this point, since there are no mechanisms to save the economy.

The crisis is most graphically expressed in the skyrocketing rates of suicide, drug overdose deaths, and declining life expectancy in the United States.

We are on the edge of a global collapse, from which the trans-Atlantic region cannot possibly survive. The crash can come any day at this point, and it is this reality that has prompted the hysteria from the likes of ECB head Mario Draghi and British Crown scribbler Evans-Pritchard.

The only recourse for the trans-Atlantic region is to cancel Wall Street and London—wipe them out altogether, and then completely change the concept of the economic system.

There are two irreconcilable concepts of economy. There is the British-Wall Street concept of money, money, money. Money per se has nothing to do with real value. The alternative system, the Hamiltonian System that FDR understood and carried out, rejects money, rejects Wall Street. It is based on human discoveries that translate into scientific and technological advances that create real wealth and advance mankind’s growth.

President Franklin Delano Roosevelt had the concepts, and put those concepts into practice as President—until the FBI and the Republicans shut down the Roosevelt program even before FDR’s untimely death. No system built on money and finance can work, and that was what FDR understood.

Russian President Vladimir Putin does not operate in a money system. The Chinese leadership under Xi Jinping do not operate in a money system.

Eurasia is being organized under different principles, led by China’s quest to realize man’s extraterrestrial imperative. This idea was on display during the final day of the National People’s Congress, that just concluded in Beijing, when one of the PLA delegates, China’s first female astronaut, gave a powerful interview to CCTV on the prospects of China’s space program. China is also well underway in constructing the world’s first commercial high-temperature gas-cooled reactor. This is real economy—not the insanity of money, money, money that has plagued the United States since the death of FDR, with very few moments of exception.

In a different way, Russian President Putin personifies the same principle: The key to everything that Putin has done to turn around the Syrian situation is that he is always on the move, always pulling off a surprise flank—at the strategic level. Putin is well aware that he is not acting alone, but is operating on behalf of a partnership with China. Li Keqiang made this point clear in his final address to the NPC: No third party factor is going to disrupt the China-Russia strategic partnership. In India, Prime Minister Modi has launched a revolution in the agricultural sector, which is key to India’s future. In his new budget, he announced an 84% increase in investment in the agriculture—on top of related investments in roads, rail, chemical and fertilizer production.

Putin is driven by a deep personal experience. Much of his family died during the Nazi invasion of the Soviet Union in World War II. That experience informs his mind. Without an appreciation of who Putin is as a world leader, and where he came from, it is impossible to understand his actions. That is why the vast majority of so-called “strategists” in the West are baffled by his flanking actions.

STRATEGIC WAR DANGER

Russian Military Draws Down In Syria, But Does Not Disengage

March 16 (EIRNS)—Yesterday, the Russian Defense Ministry posted video of the redeployment of the first group of aircraft, a flight of four Su-34 strike aircraft accompanied by a Tu-154 transport aircraft back to their home base in the Voronezh region. A second group of Su-34’s departed a few hours later. They arrived at their home base in the Voronezh region, not only to a large welcoming celebration, addressed by commander of the Russian Aerospace Forces Gen. Viktor Bondarev, himself, but likely also with a real sense that they had accomplished their mission. The Defense Ministry also reported that a group of Su-25’s departed, today, lead by an Il-76 transport aircraft and that otherwise, preparations were complete for the remaining planned departures.

But no matter what some Russia-haters may be saying, Russia is not disengaging from Syria. The Russian military is, in fact, leaving a small but significant military presence, there, to monitor compliance with the ceasefire and support Russia’s diplomatic efforts. According to experts consulted by Russia Beyond The Headlines, this includes the full complement of air defense assets that Russia had placed at its Latakia airbase, including the S-400, Buk M3, Tor M2 and Pantsir S1 systems—obviously a message to Turkey—as well as their naval deployment in the Eastern Mediterranean. Also remaining at the base will be the contingent of Mi-8 and Mi-35 helicopters, for combat search and rescue and tactical transport duties. Deputy Defense Minister Nikolai Pankov, who was present at the Latakia base for departure ceremonies, said that strikes against terrorist groups will continue, because it’s still too early to talk about the defeat of terrorism.

Ignatius Touts Looming Confrontation with China

March 16 (EIRNS)—David Ignatius today published an article in the Washington Post, framed around an interview with Kurt Campbell, former Assistant Secretary of State for East Asian and Pacific Affairs, warning about the possibility of a “Guns of August” moment in the South China Sea dispute between the United States and China.

Ignatius reported “the White House has an intense interagency planning process underway to prepare for the looming confrontation.” What Ignatius is referring to is the case pending before the World Court in The Hague over China’s sovereignty claims over islands in the South China Sea, which is referred to as China’s nine-dash-line. According to Campbell, the Court is likely to rule in favor of the Philippines challenge to China’s claims on the string of islands, and this could trigger a Chinese reaction, possibly a declaration of an ADIZ (air defense identification zone) over the South China Sea. Ignatius noted that the U.S. could respond by B-52 overflights into the ADIZ, or by working with Philippines, Vietnam, and other South China Sea nations to build up their own island fortifications or engage in joint overflights. “This isn’t Pearl Harbor, but if people on all sides aren’t careful, it could be ‘The Guns of August.’ ”

The Administration, Campbell warned, is nearing “another red line moment where it has to figure out how to carry through on past warnings.” In other words, Obama is stuck in another trap of his own doing, having waded into the middle of what the Chinese have consistently said is a dispute among sovereign states that should be negotiated on a bilateral basis, without outside interference from the United States or the World Court.

Reaction to Russian Move from Syria, Jordan and Iran

March 16 (EIRNS)—In Syria, Russian President Vladimir Putin’s announcement of a partial military withdrawal was not unexpected, according to a top advisor of Syrian President Bashar al-Assad. “This move was neither surprising, nor disturbing. This is because the Syrian government has not only been informed about the move, but also because of the consultations with Syria’s government and responsible executives on the ground, the issue was thoroughly considered,” Bouthaina Shaaban said, according to a Sputnik report that quoted Al Mayadeen TV. She added that Moscow had announced from the very beginning of its aerial anti-terror campaign that it would not be permanent.

The Jordanians, albeit through an unnamed government official, are also saying that Putin’s announcement did not come as a surprise. “The Russian pullout was set up in January during a meeting in Moscow between the Jordanian chairman of the Joint Chiefs of Staff, Lt. Gen. Mishal Al Zaben and his Syrian counterpart Gen. Fahd Jassem Al Freij, with Russian Defense Minister Sergei Shoigu to discuss security and military issues on the Syrian-Jordanian borders and the repercussions of this on the [ongoing] Syrian peace talks,” the official told Defense News. “The decision was discussed to check the sincerity of parties involved in the Syrian issue,” he said without further elaboration. He also reported that Ali Mamluk, director of the Syrian National Security Bureau, has been meeting with Jordanian officials in Amman since the beginning of the Russian intervention.

The Iranians also see the Russian move as potentially positive. “The fact that Russia announced they are withdrawing part of its forces indicates that they don’t see an imminent need to resort to force in maintaining the ceasefire,” said Iranian Foreign Minister Mohammad Javad Zarif during a visit to Australia on Tuesday, according to BBC Persian. “That could be a positive sign. We have to wait and see,” Zarif added.

Statements supporting the Russian actions were also issued by the Chinese Foreign Ministry.

EU Agreement on Refugees to Turkey: Lousy and Destabilizing

March 16 (EIRNS)—The European Union’s insane parliamentary deal on sending refugees to Turkey contains provisions which could blow up long-standing negotiations and agreements between Greece and Cyprus, besides rewarding Turkey for Recep Tayyip Erdogan’s criminal behavior.

One provision of the deal—visa-free entry into the EU by Turks—means reopening and revising five chapters or sections of the existing deal for Turkey to be admitted to the EU, which are stalled because of Turkish non-compliance.

Cypriot President Nicos Anastasiades told European Council President Donald Tusk yesterday that this part of the deal was “unacceptable,” implying that Cyprus would use its veto. If Cyprus vetoes, Greece has to follow (Greece and Cyprus have an agreement to support each other which goes back nearly 50 years). After meeting with Tusk, Anastasiades said, “It must be understood by our EU partners that possible acceptance of the Turkish demands, without implementation of Turkey’s long-pending obligations would in essence constitute—with my own consent—acceptance that the Republic of Cyprus is, indeed, ‘defunct.’ ” Anastasiades said he conveyed to President Tusk that Cyprus would not agree to opening any sections of the agreement “if Turkey does not fulfill its obligations….”

In fact, Greek and Turkish Cypriots are the middle of reunification negotiations which would be compromised by such an agreement. Two divisions of Turkish troops are in northern Cyprus, which is not part of the EU, and is only recognized as a state by Turkey.

European Council President Tusk said further work is needed on the refugee agreement made with Turkey, to insure needed protections for refugees in Turkey, and to set up a mechanism to assess individual refugees in Greece that would precede any decisions on returning them to Turkey, RT reported today. Tusk also said that all sides should look at alternative migration routes from Turkey to the EU, such as through Bulgaria.

COLLAPSING WESTERN FINANCIAL SYSTEM

Evans-Pritchard Warns of U.S. Inflation, But Fed Puts Off Rate Hikes

March 16 (EIRNS)—After years of calling for manning the printing presses with bottomless quantitative easing (QE), City of London mouthpiece Ambrose Evans-Pritchard now warns of inflation.

Evans-Pritchard points to the fact that the Cleveland Federal Reserve Bank’s “median consumer price index” jumped to 2.9%, caused by price rises in medical services, housing rents, car insurance, restaurants, hotels, women’s clothing, jewelry, and car rentals. He writes, “This is the long-feared inflection point we all forgot about in those halcyon days of deflation, now just a fond memory.” (Who’s “we”?)

One of the hawks pointing to the need to raise rates is Federal Reserve Vice-Chairman Stanley Fischer who said last week, “We may well at present be seeing the first stirrings of an increase in the inflation rate.”

Evans-Pritchard also points to John Williams of the San Francisco Fed calling for a rate increase. Nonetheless, he writes “doves” are resisting because they “first want to see the ‘whites of the eyes’ of coming inflation. That is hardly a comfort.”

Evans-Pritchard also warns that as oil prices increase to $60 or $70 a barrel, it will only feed inflation.

What the Federal Open Market Committee (FOMC) actually did today was to forecast it will raise rates only twice more this year—i.e., to 0.75% by the end of 2016, whereas in January it was forecasting 1.25-1.50 by that time. The one new element in its statement on U.S. economic conditions from this month’s meeting, was important: It dropped the claim that business investment (capital investment, or capex) is growing at all in the U.S. economy.

All of this is still sugar coating on the reality that the trans-Atlantic system is doomed and these late-blooming warnings about hyperinflation are overdue.

NEW STRATEGIC PARADIGM

Financial System Must Serve Real Economy, Li Keqiang Says

March 16 (EIRNS)—Chinese Prime Minister Li Keqiang gave the final press conference of the “two sessions” of the National People’s Congress and the CPPCC (Chinese People’s Political Consultative Congress) advisory committee. In reply to a question from a Reuters reporter, who touted the alleged “crisis” in the Chinese economy, Li outlined the fundamental idea lying at the basis of China’s economic reform.

“The top priority of the financial sector is to support the development of the real economy,” Li said. He then listed some of the figures regarding the debt ratio in Chinese industry, which, although high, were far below the international average. He indicated that China, with the development of new forms of finance, had the task of developing a “full-fledged financial regulatory regime.” “The financial sector must provide better services for the real economy,” he said, noting also that a dysfunctional real economy will also have significant reverberations in the financial system. “The financial system also operates according to its own laws,” he noted. “Therefore, we should watch out for possible risks. We have to guard against risk and moral hazard,” Li said.

Later, in reply to a question from Xinhua, Li expressed confidence in the further development of China’s economy moving forward. “My confidence is not based on flimsy grounds. There is great potential in our situation. Supply-side reforms will stimulate market development. We will upgrade our traditional growth-drivers while implementing new ones. There is much room in the western regions for more investment. Although there are uncertainties in the global situation, we still have tools in our tool kit to meet any unforeseen developments,” he said. “We have chosen the route of structural reforms. We have passed the stress test. And as we unite people in our vision, we can bring a strong breeze to the world.”

Italian MEP Calls on EU To End Anti-Russian Sanctions

March 16 (EIRNS)—Fabio Massimo Castaldo, an Italian Member of the European Parliament has called for an immediate end to the European Union’s economic sanctions against Russia in an interview today with RT’s Russian television service, covered by Sputnik in English.

“Russia’s actions in Syria clearly indicate that Moscow is a key international player. This is why it is necessary to renew direct open dialogue between Europe and Russia, which should be based on the principles of equality and mutual respect,” Castaldo said. He added that he “fully supports the idea of a veto,” which Italy may use to counter attempts to extend the anti-Russian sanctions in July of this year.

“I hope that the Syrian peace talks give us the opportunity to lift the anti-Russian sanctions as soon as possible, which was the case with Iran, and the recent agreement on its nuclear program,” he said.

RT and Sputnik both also cite remarks by Hungarian Foreign Minister Péter Szijjártó [Siyyarto in Sputnik] that “the EU cannot take a covert decision on the sanctions.”

[Note Sputnik misspelled Castaldo’s name as “Castalda,” likely transliterating it from the Cyrillic in RT.]

Brazil Fights Back against Bankers’ Coup, as Rousseff Names Former President Lula to Cabinet; Brits Go Wild

March 16 (EIRNS)—President Dilma Rousseff announced this afternoon that former President Lula da Silva will be sworn in next week (March 23) as her Chief of Staff, defying the obituaries being written of an end to her presidency. The audacious move signalled an intention to fight back against an “anti-corruption” campaign which has wrecked the economy, would hand the country’s politics over to Wall Street and the City of London, and pull Brazil out of the BRICS.

Brazil’s British/Wall Street enemies who thought to oust Rousseff quickly, have gone into flight forward, fearing that economic changes could accompany this appointment, which could move in the direction of the BRICS-oriented growth policies proposed by Rousseff and Lula’s Workers Party in a “National Emergency Plan” released in February.

Within hours of the announcement, Judge Sergio Moro, the would-be king-maker running the anti-corruption operation, released to the press recordings from Federal Police tapping of Lula’s phone in recent days—including one of his conversations with President Rousseff today.

This “arbitrary act,” involving tapping the telephone of the President of the Nation, aims at stimulating “social convulsion,” rightly charged Lula da Silva’s defense lawyer, Cristiano Zanin Martins. Furthermore, he pointed out, criminal charges have not been brought against former President Lula, nor does Judge Moro have jurisdiction over a case against Lula.

Moro models his “anti-corruption” operation, point for point, on British intelligence’s “Mani Pulite” (Clean Hands) operation which tore apart Italy’s political system in the 1990s and handed the country over to the financiers, and their agents such as Mario Draghi, now European Central Bank president.

In his 2004 study, “Thoughts on Operation ‘Mani Pulite,’ ” Judge Moro describes how Clean Hands “redrew” the Italian political map, collapsing the parties which had dominated the country since the end of World War II. Ten suspects committed suicide under the pressure, Judge Moro wrote, but “the presumption of innocence, invoked most times as an obstacle to pre-trial imprisonment, is not absolute,” and should not be used as a “moral obstacle to imprisonment by decree.” Italy’s Clean Hands operation could not have succeeded without ample use of pre-trial detention of suspects to gain “confessions” in exchange for reduced sentences and leaking of those confessions to the press—before any charges or trial!—in order to delegitimize the political class as a whole, and thus turn “public opinion” into the battering ram for the operation, he wrote.

SCIENCE AND INFRASTRUCTURE

China’s First Female Astronaut Describes the Coming Breakthroughs in Space Technology

March 16 (EIRNS)—China Central Television (CCTV) runs an interview today with Liu Yang, China’s first female astronaut. She is a National People’s Congress Deputy, and is attending the annual legislative conference as part of the People’s Liberation Army (PLA) delegation. Liu flew on the Shenzhou-9 mission in 2012, which was the first manned mission to dock with the Tiangong-1 module.

The interviewer asked for her reaction to President Xi Jinping’s emphasis on innovation in the military. Liu says they are developing “cutting-edge” technology, and cites the advancements in human spaceflight over the course of the Shenzhou missions. Asked about the reforms in the military, she says that there will be 300,000 fewer troops, and she hopes when they take off their uniforms, there will be plans to “resettle” her colleagues.

For the next mission later this year, Shenzhou-11, she said that the next module, Tiangong-2, will “truly be a space lab,” with a 30-day stay for the crew of two, and technical support breakthroughs, making a “great leap.” Asked if she plans to fly again, she did not respond directly, but said that in the future, people will make “multiple journeys,” and astronauts are still in training. She explains that it took thousands of hours of practice on the ground, in the operation of the spacecraft and the scientific experiments, to prepare for her mission.

Russia Successfully Uses Accelerator-Based Neutron Source for Cancer Therapy

March 16 (EIRNS)—An accelerator-based neutron source has been used for successful cancer treatment, Alexei Khadayev of the Russia & India Report (RIR) reported today. An accelerator-based neutron source at Novosibirsk was used by researchers belonging to Russia’s Institute of Nuclear Physics, and Japanese neurosurgeons from the University of Tsukuba in early March. The scientists say the targeted therapy method could be used even for tumor types that do not respond to other treatment; for example, glioblastoma, a common form of brain tumor, with an average life-expectancy after diagnosis of just over a year, Khadayev wrote.

Boron Neutron Capture Therapy (BNCT) is a binary radiation treatment modality based on nuclear reactions between thermal neutrons and stable isotope boron-10 concentrated primarily in cancer cells. The modus operandi for the delivery of high linear energy transfer (LET) radiation (particles and lithium-7) to tumors at the cellular level, while avoiding unnecessary dose deposits to healthy tissue, was known. However, as of now, most BNCT studies and clinical treatments have been performed by using research reactors that have always produced various neutrons from a nuclear fission chain reaction. Since these reactors are difficult to install in hospitals, and have other logistical difficulties, researchers are seeking a compact way to use the BNCT in hospitals and clinics.

The article said the Japanese brought new, more efficient boron-containing drugs for therapy to Siberia. The promising agents were added to the culture of tumor cells. After that, the Siberian physicists irradiated them with neutrons in their installation. The use of an accelerator was a success. However, University of Tsukuba neurosurgeon Dr. Kei Nakai told RIR that a requirement for making the method a success, would be development of compact and safe accelerators.

China To Release Water from Jinghong Dam To Ease Drought in Mekong Delta Nations

March 16 (EIRNS)—China’s Foreign Ministry spokesman Lu Kang said China would release some water from Jinghong Dam to alleviate the drought-like conditions that persist in some Southeast Asian nations located in the Mekong River delta. Jinghong is the southernmost of a series of hydroelectric power-generating dams that China built on the Mekong River in its Yunnan Province, just north of where China, Myanmar, and Laos meet. The Mekong River, the lifeline for Southeast Asia, originates in the Tibetan Plateau in China, and flows through Southern China, Laos, Cambodia, and Vietnam before it falls into the South China Sea.

The Mekong River delta is where Southeast Asia grows its food. However, since 2014, the delta has been experiencing drought attributed by the weather experts to the effect of El Nino. As a result, the agricultural lands in Laos, Cambodia, and Vietnam, among other Southeast Asian nations, are experiencing serious water shortages.

At Lu Kang’s press briefing at the Ministry of Foreign Affairs yesterday, he described that water from Jinghong will be released from March 15 April 10 to benefit Cambodia, Laos, Myanmar, Thailand, and Vietnam. Lu Kang replied to a reporter, saying China, “hopes it can be of help in alleviating the drought downstream.”

According to Viet Nam News, today, some 140,000 hectares of rice in the Mekong Delta have been damaged by the drought, and 150,000 households, with around 600,000 people, face drinking water shortages in those delta regions.

U.S. POLITICAL AND ECONOMIC

Enough Said: Michael Ledeen Defends Trump as Not a Fascist

March 16 (EIRNS)—Michael Ledeen, the American neocon who promotes himself as an “expert” on and admirer of “universal fascism,” today pens a Forbes article defending Donald Trump as not a fascist, against a number of commentators who have charged he is.

Labels aside, having lost the Ohio Republican primary and all 66 of Ohio’s delegates to former Ohio Gov. John Kasich yesterday, Donald Trump unleashed a torrent of threats against his opponents. Trump fears that if Kasich’s victory, or a variant, is repeated in other states, a brokered GOP Convention could result and deny Trump the nomination. This possibility is being raised by Washington insiders.

But Trump’s response to the possibility of a brokered convention reminded some commentators of Mussolini’s March on Rome in 1922. In a CNN interview this morning, Trump threatened that if he got a large number of delegates yet was denied the nomination, “I don’t think you can say that we don’t get [the nomination] automatically. I think you’d have riots. I’m representing many, many millions of people.”

Party leaders are appalled by Trump’s inflammatory rhetoric and positions like proposing to deport millions of illegal aliens now in the U.S., Reuters’ Steve Holland reports today. On MSNBC’s “Morning Joe” today, Trump said he mostly consults himself on foreign policy issues: “I’m speaking with myself, number one, because I have a very good brain…. I know what I’m doing; I have a very good instinct for this stuff.”

An imperial Trump then told Fox News that he would not attend the next televised GOP Presidential debate March 21: “I think we’ve had enough debates.”

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