EDITORIAL
The British Empire Is Going Down—Obama Must Go First
July 31 (EIRNS)—The British Empire oligarchs, both those in London and those in Washington and on Wall Street, are panicking. Obama is beginning to crumble, while the effort to create a presidential election in the U.S. out of garbage has created such a stench that the entire party system is falling apart. Russian statesman Vladimir Putin, on the other hand, has proven himself to be a true leader of men and nations, capable of acting in a way identified by the great German poet Friedrich Schiller, once known as the “Poet of Freedom” in America, who said we must be at the same time a patriot of our nation and a citizen of the world.
Obama, as well as George W. Bush, Dick Cheney and Tony Blair, have been exposed as war criminals and compatriots of the British/Saudi terror apparatus by the combination of the Chilcot report in the U.K. and the release of the 28-page chapter of the Joint Congressional Inquiry into the 9/11 terror attack in the U.S. Why they are not yet in jail is the first question each citizen must ask him- or herself.
EIR Founding Editor Lyndon LaRouche today said that “the winning side has already been determined—not completely, but essentially—determined under the direction of Putin. Putin has done the job he had committed himself to do, and now that a growing number of others, especially in Germany, are supporting him, the victory is already virtually on our hands. Putin has earned it.”
Not that the Obama clones are not trying their best to start a thermonuclear world war. Former Obama Defense Secretary and CIA chief Leon Panetta told the Democratic Convention last week that Putin was a “dictator” whom Hillary Clinton will know how to deal with. Panetta’s chief of staff at both the Defense Department and the CIA Jeremy Bash, a top advisor of Mrs. Clinton, went straight to the Whore of Babylon herself, in an exclusive interview with the City of London’s Telegraph, essentially declaring war on the increasingly successful cooperation between Putin and Lavrov, and Secretary of State John Kerry to defeat terrorism in Syria and globally, further demonstrating the total split within the Obama Administration. Bash said Clinton will work to force Syrian President Bashar al-Assad “out of there,” and that a President Hillary Clinton would conduct a complete “Syria policy review” as the first order of business. The intent here is to sabotage the Kerry-Lavrov initiative now, not sometime in the future during the next administration, just as the current Defense Secretary Ash Carter last week countered Kerry’s efforts with Lavrov, firmly declaring that removing Assad is his first priority, and only then worrying about ISIS, al-Nusra or other terrorist groups.
But this is all a fraud, LaRouche emphasized today. The Hillary Clinton war team doesn’t have the capacity to do what they are threatening, short of starting World War III. Their intent is simply to wreck any steps towards a defeat of the Saudi-run terrorists, while trying desperately to break up the new paradigm centered on the China-Russia partnership and the New Silk Road process of global development. The results of the phony “stress tests” of the trans-Atlantic banking system, were released at 10:00 p.m. European time last Friday night, to allow time over the weekend to paste together the facade of yet another bail-out; but it is faced with an explosion Monday morning or soon thereafter. The Empire has no clothes.
They are failing. In China this past week, in preparation for the G20 heads of state and government summit to be held in China on September 4-5, several leading institutions co-sponsored a T20 (Think 20) Summit, with 500 scholars from 25 countries, around the theme of “building new global relations—new dynamics, new vitality and new prospects.” Among the speakers was Helga Zepp-LaRouche, addressing the urgency of “Building New Global Relationships” on the basis of the New Silk Road perspective of “win-win” development for all nations, as the necessary basis for ending the onrushing threat of global war, and implementing a new era of true peace and development internationally.
Lyndon LaRouche insisted today that we must inspire people to understand the capacity in their own minds to foresee the future, to see how important their lives are for mankind to achieve what otherwise we may not achieve. “We are now very close,” he said, “to winning the war against the British Empire.”
He also noted that people must give up deadly “practicality” in this moment of crisis for civilization. He is not putting himself forward as a presidential candidate, he said, but he will do everything in his power to shape the policies of government in the coming period.
STRATEGIC WAR DANGER
CIA Director Reveals Obama Administration Solution for Syria: Dismember the State
July 31 (EIRNS)—Central Intelligence Agency Director John Brennan revealed a continued drive by the Obama Administration for prolonged war in Syria and destruction of the Syrian state, speaking at the annual Aspen Security Forum Friday, July 29.
He reported that he was not optimistic about the future of Syria. “I don’t know whether or not Syria can be put back together again,” he said. Blaming the inability to dismember Syria on Russian President Vladimir Putin, Brennan warned the bloodbath there will not stop until Putin stops propping up Syrian President Bashar al-Assad.
There will be no solution in Syria, he argued, until Assad is gone: “I believe there’s going to be no end-game even in sight as long as Bashar al-Assad stays in Damascus because he is the reason why so many Syrians are fighting. There needs to be some sense that al-Assad is on his way out,” he added. “It needs to be clear he’s not part of Syria’s future.”
Briefed on Brennan’s tirade, Lyndon LaRouche responded that Brennan was clearly “completely crazy—he doesn’t have the capacity to do what he says. He should go find a retirement home.” LaRouche also said that Obama and Clinton’s rants that they were going to remove Assad and dismember Syria, fly in the face of Putin’s ongoing victories in Syria, and that both are “complete fraudsters.”
Joint Chiefs Chairman General Dunford Flies to Turkey, as Bilateral Military Relations Worsen
July 30 (EIRNS)—Chairman of the Joint Chiefs of Staff Gen. Joseph Dunford embarked on a sudden trip to Turkey, in the aftermath of remarks by Gen. Joseph Votel, commander of U.S. Central Command, on July 28 in which he lamented the impact of the purges of the Turkish military after the failed July 15 coup in that country. Hurriyetreported yesterday that Dunford would be holding meetings in Ankara and visiting the Incirlik airbase in Turkey’s southwestern region near the Syria border. The regular Pentagon briefing, July 29, was dominated by the U.S.-Turkish issue, with Press Secretary Peter Cook trying hard to limit comments to the status of Incirlik. “The concern that General Votel expressed, that I think it is fair to say that we all share, is making sure that our operations against ISIL are not impacted,” Cook said. “We don’t have any indication of problems at this moment in time, and we would just like to maintain that. That was, I think, what General Votel was expressing yesterday.”
In his Colorado remarks General Votel expressed concern that many of the hundreds of senior Turkish officers who have been arrested and imprisoned for their alleged involvement in the coup attempt, were interlocutors with the U.S. military. “I am concerned about what the impact is on those relationships as we continue,” Votel said. Turkey isn’t just a place where we “park our assets,” but rather the Turkish military has been “integrated into many things that we are doing,” Votel said. The purges, he added, will have a direct impact on that level of cooperation and collaboration between the U.S. and Turkish militaries. Director of National Intelligence James Clapper agreed. “There’s no question,” he said, that the purge of not only the military but also intelligence agencies “is going to set back and make more difficult cooperation with the Turks.”
Turkish President Recep Tayyip Erdogan reacted very angrily, rejecting Votel’s remarks and any criticism of the purges, accusing the critics of siding with the coup plotters. Speaking at a July 29 commemoration of the victims of the coup, he was quoted by {Hurriyet} as saying, “Any country and any leader who does not worry about the life of Turkish people and our democracy as much as they worry about the fate of coupists are not our friends,” said Erdogan. “Instead of thanking this country which repelled a coup attempt, you take the side of the coup plotters. The putschist is in your country already,” he said, referring to the U.S.-based cleric Fethullah Gülen, accused by Erdogan of running the coup.
Votel, in response, sent out a statement, denying any involvement in the coup. “Any reporting that I had anything to do with the recent unsuccessful coup attempt in Turkey is unfortunate and completely inaccurate,” he said.
Russians Cautiously Optimistic That Humanitarian Initiative in Aleppo Will Work
July 30 (EIRNS)—Russian Deputy Defense Minister Anatoly Antonovexpressed cautious optimism about the Russian/Syrian humanitarian initiative in Aleppo, in remarks released by the Russian Defense Ministry yesterday. He stressed that the Russian military is doing everything possible to relieve the humanitarian situation there, after having encircled the city. Indeed, this is the sole focus of the operation and the Russian Foreign and Defense ministries have already sent out appeals to foreign counterparts and organizations to join the effort. “The first response is quite positive,” Antonov said. “The organizations ‘Doctors Without Borders’ and ICRC [International Committee of the Red Cross], as well as the office of the Special Envoy of the UN Secretary-General for Syria, Staffan de Mistura, have shown interest in the operation.” At the same time, he noted that “the reaction of some media agencies and political figures, who have seen a disguised plan in the Russian actions, is surprising.” This is exclusively humanitarian, but the Russian military, he said, “will not admit at any circumstances the flow of arms to the regions controlled by the militants.”
De Mistura’s response was a bit more complicated than Antonov may have been indicating, however. “That’s our job,” de Mistura said of the corridors plan, speaking at a press conference in Geneva, reported AP. He expressed support “in principle” for humanitarian corridors, but said it must be under the right circumstances. “How do you expect people to walk through a corridor—thousands of them—while there is shelling, bombing, fighting?” he asked. The Russians clearly do want the UN to be involved on the ground, however. “We will thoroughly analyze de Mistura’s initiatives, many of which deserve support, and will give our comments,” Antonov said. “We are ready for close and constructive cooperation with all international humanitarian organizations and, naturally, with the office of the United Nations special envoy for Syria.”
Pentagon Press Secretary Peter Cook stated yesterday that the Russian operation in Aleppo is being carried out without any coordination with the U.S. However, German Foreign Minister Frank-Walter Steinmeier said that the situation now prevailing in Aleppo requires that the U.S. and Russia find some kind of mutual understanding. He called on Russia to “make” the Assad government cooperate with the UN and make it possible to deliver humanitarian aid into Aleppo. “The situation in Aleppo makes mutual understanding between the United States and Russia even more important,” he said, reported TASS. “I hope that current talks between Washington and Moscow will bring results,” he concluded.
COLLAPSING WESTERN FINANCIAL SYSTEM
Stress Tests Cheat on Reality
July 30 (EIRNS)—The European Banking Authority (ECA/ECB) stress tests, whose results were released very late on the evening of July 29, consisted of calculating how much capital banks would lose in an “adverse scenario” of “falls in real EU gross domestic product of 1.2% in 2016, 1.3% in 2017 and 0.7% in 2018,” on average, according to the Financial Times. However, individual countries’ scenarios seem to be different. For instance, the adverse scenario for Italy anticipates a real GDP collapse of almost 6% in the three years from 2016-2018. In 2018 the output would be 10% lower than in 2007, the lowest since World War II. Also, an increase of 100 basis points in sovereign bond yields is presumed, which means a 12% depreciation of bonds.
Also, apparently the EBA did not consider the possibility of a “credit event” and a global financial crisis.
The ten banks that performed worst are: Monte dei Paschi di Siena, Reiffeisen (Austria), Banco Popular (Spain), UniCredit, Barclays, Allied Irish Banks, Commerzbank, Bank of Ireland, Deutsche Bank and Société Générale. However, only Monte dei Paschi had a negative CT1 (i.e. under the “adverse scenario” a capital ratio lower than 7%).
Critics of the stress tests emphasize the lack of an adequate estimation of the assets side of bank balance sheets, which are filled up with derivatives. However, even the fraudulent estimations of the EBA/ECB are enough to unleash fears of an earthquake on financial markets, so that stress test results were released after the closure of all markets.
When the Vampires Start To Donate Blood, You Know the System Is Dead!
July 29 (EIRNS)—When the vampires start to donate blood, you know the whole system is dead. In a last-minute maneuver announced this evening, an emergency rescue for Italy’s Monte dei Paschi di Siena bank (MPS) has been arranged, involving a consortium of banks and pension funds buying some €10 billion of the bank’s non-performing debt at €30 cents on the euro, and a capital infusion into MPS of some €5 billion. “Atlante” is the name for the new, rescuing entity, whose participants include Deutsche Bank—itself in need of rescue— Credit Suisse, Goldman Sachs and others. The Italian Treasury issued a statement that it was “satisfied” with the plan. The inference is that this maneuver from private sources avoids the imposition of the EU bail-in procedure.
This so-called rescue of MPS was announced minutes before the release of results of the ludicrous “stress tests” of 51 euro area banks, conducted by the European Banking Authority. In fact, no contrived stress exercises and risk scenarios are needed to prove that the system itself is bankrupt in the trans-Atlantic banking sector, with banks holding hundreds of billions of euros in non-performing debts, and trillions of worthless derivatives and other toxic claims. The stress test results came out only after 10:00 p.m. (CET) July 29, after markets closed, so that financial players could have the weekend to figure out their next move!
All this highlights, that the only sane solution is that proposed earlier this month by statesman Lyndon LaRouche, as the “Herrhausen” intervention, to deal with the crisis of Deutsche Bank by providing an injection of liquidity, accompanied by transforming the bank’s mandate and activity to supplying credit for productive use. This is spelled out in the July 12 call by Civil Rights Solidarity (BüSo) party Chairwoman Helga Zepp-LaRouche: “Deutsche Bank Must Be Saved, for the Sake of World Peace!”
LaRouche stressed this earlier today, saying that this is the job that must be accomplished—not “testing,” which guarantees, not prevents, the crash.
The Herrhausen Method: A Challenge to the Trans-Atlantic System
July 29 (EIRNS)—One may assume that the assassination of Deutsche Bank’s Alfred Herrhausen on Nov. 30, 1989, did not occur at the snap of a finger, but was planned and prepared over several weeks. The content of the speech, “New Horizons in Europe,” which Herrhausen was scheduled to give at the Third Arthur Burns Memorial Lecture in New York on Dec. 4, with his direct challenge to destructive trans-Atlantic banking methods, was likely not known at the time the team of assassins went to work; however, two statements were known which Herrhausen gave in June and September, which contained the core components of what he would have said in New York, had he not been assassinated.
In an essay titled, “The Time Has Come—Debt Crisis at a Turning Point,” published by Germany’s leading business daily Handelsblatt, on June 30, 1989, Herrhausen denounced the debt policies particularly of U.S. banks, for making the debtor nations’ situation worse as well as that of the creditor banks themselves. Instead, general debt write-offs of up to 70%, including cuts in the interest paid of up to 50% for a period of 5 years, and the maturity of loans being extended to 25 or 30 years were the only things that would work, Herrhausen wrote. This approach, he insisted, would “enable the said (debtor) nations to reassign considerable resources that so far had been used to service the debt, to instead be used such purposes that would serve the recovery of their domestic economies.” Herrhausen added that what debtor nations really needed was not fresh money (new debt), but “it would be better to say they need resources.” The net effect of this “resources reallocation during the first five years could be bigger than the fresh money injections requested by them so far.”
At a press conference Sept. 25, 1989, on the occasion of the World Bank meeting in Washington, Herrhausen presented the same arguments, pointing out that he very much hoped that other banks would follow the example of Deutsche Bank as a “debt reduction bank.” The unresolved payments problems of the debtor nations, along with problems resulting from debt imbalances in the United States itself and in Europe, Herrhausen warned, posed a systemic risk. Taken together with certain problems not solved in the Soviet bloc even under the reforms of “Glasnost,” broad unrest, nationality frictions and “escalated conflicts erupting from that,” could lead to very gloomy constellations, he elaborated. He then proposed, for unstable Poland in particular, the creation of a special new bank in Warsaw, an “Agency for Reconstruction” which would make sure that new loans to the Polish economy would be used just as the Marshall Plan money was used for well-defined reconstruction in Europe, including Germany, after World War II.
With that, Herrhausen expressed in his own words what Lyndon H. LaRouche had laid out in his own historic speech at the Kempinski Bristol Hotel in Berlin, on Oct. 12, 1988. That speech was being studied by many policymakers and bankers in the ensuing months, and one may assume that Herrhausen had the text on his desk at some point as well.
U.S ECONOMIC AND POLITICAL
Hillary Clinton Advisor Demands Smashing Syria’s Assad; Pressure on Obama To Act Now
July 31 (EIRNS)—In an exclusive interview with the Telegraph of London published July 29, Hillary Clinton’s foreign policy advisor Jeremy Bash, who was chief of staff for Leon Panetta at the CIA (2009-11) and as Defense Secretary (2011-13), issued a strident call for stepped-up action against Syrian President Bashar al-Assad. He states this, along with stressing that Clinton will be ordering a “full review” of U.S. strategy—that is, that she backs tougher action than the Obama Administration is performing to date. This is in line with the bellicose remarks made by Bash’s boss, Leon Panetta himself, at the Democratic Convention on July 27, where he was booed with the chant, “No More War.” July 29, investigative reporter Gareth Porter published a rundown on Panetta and others, appropriately called “Hillary’s Hawks.”
The Telegraph article, titled, “Hillary Clinton Will Reset Syria Policy against Murderous Assad Regime,” suggests that Obama is prevaricating on Syria, especially by working with Russia. “A Clinton Administration,” Bash asserts, “will not shrink from making clear to the world exactly what the Assad regime is. It is a murderous regime that violates human rights; that has violated international law; used chemical weapons against his own people; has killed hundreds of thousands of people, including tens of thousands of children,” and so on. According to the Telegraph writeup, “Mr. Bash describes a foreign policy more hawkish than that of the current administration.”
That is the point of the Gareth Porter posting July 29 onConsortiumnews.com “Hillary Clinton and Her Hawks. Broader Role in Syria Contemplated.” Porter covers the recent bellicose statements by Leon Panetta, Obama’s first term Director of Central Intelligence and Defense Secretary, and Michelle Flournoy, said to be in line to become Clinton’s Defense Secretary, noting, “It is highly unusual, if not unprecedented, for figures known to be close to a presidential candidate to make public recommendations for a new and broader war abroad. The fact that such explicit plans for military strikes against the Assad regime were aired so openly soon after Clinton had clinched the Democratic nomination, suggests that Clinton had encouraged Flournoy and Panetta to do so…. The rationale for doing so is evidently not to strengthen her public support at home, but to shape the policy decisions made by the Obama administration and the coalition of external supporters of the armed opposition to Assad.”
Clinton’s advisors so openly calling for war on Assad, Porter warns, “signals to those critics in the administration to continue to push for a more aggressive policy on the premise that she will do just that as President.”
OTHER
Leibniz Conference: Our Happiness Is Impossible without the Happiness of Others
July 29 (EIRNS)—An international congress attended by 440 scientists from 32 countries spent most of last week in Hannover, Germany addressing the lifetime and legacy of Gottfried W. Leibniz. The year 2016 marks both his 370th birthday as well as 300 years since his death. Although the congress proceedings featured many rather academic presentations on specific aspects of Leibniz’s life and work, Wenchao Li, the China-born specialist on Leibniz at the Gottfried Wilhelm Leibniz University Hannover, and one of the main organizers of Tenth International Leibniz Congress, emphasized in his keynote that Leibniz’s main concept for the common good was chosen to be the motto for the tenth anniversary of the International Leibniz Congress: “ad felicitatem nostram alienamve, for our own happiness, or the happiness of others.” Li opened the Congress: “We can only be happy if others are happy too. What it is about, is human beings, other cultures—it is about the common good of all.”
Hartmut Rudolph, another senior researcher, stressed the importance of Leibniz’s academy project. “If you look at the theme of this congress, it implies that also in his academy projects for the various countries, he saw no benefit in progress which occurs at the expense of other countries, but in his striving for harmony, he was convinced that there will always be a mutual benefit for all.”
