EIR Daily Alert Service-Monday


Volume 3, Number 74

EIR Daily Alert Service

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


The New Paradigm Is the Dominant Dynamic in the World; Italy Voters Hand EU Oligarchy Big Defeat

Dec. 4 (EIRNS)—On November 9, 2016, the morning after the dramatic U.S. presidential election—when Trump’s victory left most analysts at home and abroad either babbling nonsense or in stunned silence—Lyndon LaRouche stated clearly that Trump’s victory was part of a global, not a local or national process, in which the entire edifice of globalization and free trade was crumbling. LaRouche said that nothing is yet a settled question, and that the process is being steered by Presidents Putin of Russia and Xi of China, and by the global alternative that they are presenting.

Today, that global process continues to unfold at an accelerating rate, to the point where the New Paradigm is the dominant dynamic in the world right now. Italy delivered a stunning 60%-40% defeat to Britain’s EU dictatorship. The Sunday referendum—following in the footsteps of the Brexit and Trump votes—may well knock out the entire euro system.

As the trans-Atlantic system’s old paradigm implodes, Chinese President Xi Jinping is actively offering the entire world access to the “dream” of development which is working so stunningly in China. As Xinhua put it in a signature piece: “The Chinese Dream Is a Dream for All.” And Xi, like his partner Putin, continues to extend an offer of productive cooperation with the United States, to President-elect Trump. The potential is enormous—but yet to be realized.

Meanwhile, the voices of the has-beens of the old paradigm continue to act like there has been no change in the presidency of the United States, and as if New Paradigm doesn’t even exist. They continue pushing the world toward nuclear war, with their outlandish and dangerous provocations against Russia and China.

What we do in this global process, LaRouche emphasized back on Nov. 9, and again this weekend, is absolutely crucial. We must keep pushing for the adoption of LaRouche’s Four Laws, and use the fact that there is an increased openness to discuss daring ideas, such as was found in LaRouche PAC organizing on Capitol Hill earlier this week. Many people for the first time were willing to discuss fusion power, space policy, and even the ideas of Einstein and Krafft Ehricke.

We must lay out for people the need for Glass-Steagall and a Hamiltonian system of credit to replace today’s bankrupt system, and show them how it will work. And above all we have to hone in on the central characteristic of mankind that makes such continuous development possible: creativity.


Smashing Defeat of EU Oligarchy in Italian Referendum

Dec. 4 (EIRNS)—An earthquake, this time a political one, came Sunday night from Italy, where voters—according to early results—rejected the EU-dictated constitutional reform by an overwhelming majority of 60% to 40%.

After Brexit and the anti-Obama/Hillary Clinton vote in the U.S.A., this is the third shock to hit and it has European-wide and global implications.

A turbulent phase has now been opened. Prime Minister Matteo Renzi is expected to resign and on Monday a pre-announced speculative attack against Italian assets will be unleashed. This can precipitate a banking crisis which can rapidly spread contagion in the entire financial system.

Italy will shortly face a choice: either impose financial fascism, or leave the euro and implement national emergency legislation. It is possible that new elections will be held in a short period, in the backdrop of such a crisis.


Senior China Diplomat Asks Trump To Join China’s ‘Belt and Road’

Dec. 4 (EIRNS)—“Fu Ying: Infrastructure Can Be China-U.S. Bridge,” China Daily headlined its coverage of the intervention of Fu Ying, chairwoman of the Foreign Affairs Committee of the National People’s Congress of China, at New York University on Dec. 1.

Fu spoke to an audience of 300, mostly NYU students, at the China-U.S. forum sponsored by NYU and the China-U.S. Exchange Foundation. She was joined at the podium by former U.S. Ambassador to China Roy Stapleton. LaRouche PAC organizers attended, and participated in the discussion period on how U.S.-Chinese relations could develop around cooperation in China’s One Belt, One Road project, as LaRouche PAC has outlined in its pamphlet, “The U.S. Must Join the New Silk Road.”

“Fu Ying sees infrastructure as a great opportunity for U.S.-China cooperation under America’s president-elect,” China Daily reported. It noted Fu’s discussion of how the CEO of COSCO Group, China’s largest shipping company, had told the U.S. Congress two years ago that America has to upgrade its ports to grow its exports. “But America doesn’t want to take investment from other countries like China, and you don’t invest yourself,” she quoted the CEO as saying.

Fu argued that the election of Donald Trump may lead to a new phase, as he vowed to “transform America’s crumbling infrastructure,” China Daily wrote, quoting Fu that “the U.S. needs to be more open. I think there can be very, very good cooperation.”

“Asked if she worries about a changing landscape of U.S.-China relations under the Trump administration, Fu said it was too soon to tell, but she is not pessimistic,” China Daily added. “She said the phone call between President Xi Jinping and Trump was ‘very encouraging,’ as Trump agreed with Xi that cooperation is the only choice between the two countries, and they will advance the relationships to bring more benefits to the people of the two countries.”

Financiers Warned: Trump Might Go For Glass-Steagall

Dec. 4 (EIRNS)—The Brookings Institution’s Aaron Klein, who served as Deputy Assistant Secretary for Economic Policy in the Obama administration’s first term, helping write the Dodd-Frank Act, told S&P’s Financial Institutions Conference in New York City on Thursday, that people assuming that Donald Trump “is going to mean less regulation than Obama full stop, is way too simplistic an analysis,” Reuters reported.

Klein reiterated in New York his earlier warning in a Bloomberg op-ed after the election, that Trump advocated for the return of Glass-Steagall during the election, as well as talking about rolling back Dodd-Frank’s regulations. (Bloomberg, Nov. 15: “The Future of Financial Reform under President Trump”).

“Markets have assumed in the short term with the rally that they have got the deregulatory Trump, but maybe there is this other one. He has shown an ability to move unconventionally between the two. We don’t know which of the two we’ve got,” Klein told the S&P conference, Reuters reported. And don’t forget that Trump is proposing a “giant retrenchment” away from globalization. “If the world order is going to break down in terms of trade, the European Union … why would anyone think banking alone is going to remain an island, moving towards global coordination?” Klein said.


Schumer Agrees He’s Ready To Work with Trump, Fast, on $1 Trillion Plan

Dec. 2 (EIRNS)—In an interview carried in big-city press from Upstate New York Dec. 1, Senate Minority Leader Chuck Schumer took a step to accelerate action on the $1 trillion national investment in new infrastructure which President-elect Trump promoted throughout his campaign.

Schumer told the Syracuse Post-Standard that Democrats “stand ready to work with the incoming administration to pass a major infrastructure bill with a trillion dollars in real Federal funding. This can be done within the first 100 days of the new Congress.” The paper said Schumer called for “substantial and direct Federal funding” and attacked “gimmicks.”

“Schumer told Trump in a private meeting that such a plan would lead to investment only in the most profitable projects and could lead to significantly higher tolls on privately owned roads and bridges.

“The senator said he told Trump ‘the bill needs to be stronger and bolder than ever before. Simple tax credits will not work.’ ”

The criticisms are quite true, and wouldn’t prevent a successful collaboration to commit $1 trillion to infrastructure investments over three years. But there are major problems, which should be attacked from the standpoint of the package of “Four Laws To Save the United States” conceptualized by EIR Founding Editor Lyndon LaRouche in June 2014.

First, Schumer’s own idea of how to generate entirely Federal funds for this large investment, is itself the kind of “tax giveaway” he is attacking in the plan of Trump’s presumptive Commerce Secretary Wilbur Ross. Schumer specified a very low special tax rate for companies which repatriate cash they had stashed in offshore locations to avoid taxes.

Second, and more important, Schumer has thus far discussed nothing “stronger and bolder” than road widening, new municipal sewer systems, and localized rail development. Neither he nor Trump is yet in the universe of real technological and scientific frontiers for “infrastructure” development, which alone raise the overall productivity of the economy.

And third, there is no orientation to the new international development banks started by China, which has invested $1 trillion or more into new economic infrastructure in each of the last 10 years.

Trump Says No Regime Change; U.S. Will Cooperate in Fighting ISIS

Dec. 2 (EIRNS)—President-elect Donald Trump made the first stop on his “Thank you” tour in Cincinnati, Ohio on Dec. 1, where he vowed the U.S. will stop trying to overthrow world governments, and cooperate with countries fighting terrorism, broadcaster RT reported, citing Russia’s news agency TASS.

“The President-elect also promised to cooperate with any country interested in destroying Islamic State….  We will partner with every with every nation that is willing to join us in the effort to defeat ISIS and radical Islamic terrorism,” Trump told a large crowd at U.S. Bank Arena in Cincinnati on Thursday evening.”

Trump continued, “We will destroy ISIS. At the same time, we will pursue a new foreign policy that finally learns from the mistakes of the past. We will stop looking to topple regimes and overthrow governments, folks,” Trump said, as quoted by the Washington Examiner.

A Call for Anti-Drug Czar To Be Raised to Cabinet Post Again

Dec. 4 (EIRNS)—Robert B. Charles, retired Navy officer and Assistant Secretary of State for International Narcotics and Law Enforcement Affairs under then Secretary of State Colin Powell, called for the drug epidemic to be faced as the national crisis that it is and made a priority, by bringing back the Office of National Drug Control Policy (ONDCP),  the “anti-drug czar,” back into the cabinet, where the position was before Barack Obama took office.

“This position has never been more important, nor has any president been better positioned to shape the future with such an appointment,” Charles wrote in a Dec. 3 article in the conservative website, Townhall. He pointed to retired Gen. Barry McCaffrey and Bill Bennett as the best two heads of the Drug Control Policy office the United States has had.

“Opiate addiction has skyrocketed, leading to a breathtaking loss of 47,055 lives last year. Deaths by synthetic drugs quintupled in some categories. Marijuana use, the number-one basis for drug treatment, has jumped by 27% (during Obama’s years). Drugged driving has risen by roughly 20%, and 80% of men arrested for property and personal crime in major cities test positive for drugs….

“People do not like to talk about this issue, but they must—and so must a drug czar and the next President…. The new leadership can make all the difference by elevating their new drug czar back to pre-Obama rank of cabinet member, and then letting the nation know that America is committed to our kids and public safety, law enforcement, prevention, effective treatment, and this important element of national security,” Charles argued.

Charles was outspoken in 2014 against Obama’s promotion of addiction by his “criminal legalization by fiat” of marijuana, combined with the legalization of marijuana money entering the U.S. banking system.


Putin Signs ‘New Concept of Russia’s Foreign Policy’ Decree

Dec. 2 (EIRNS)—Russian President Vladimir Putin yesterday signed a decree approving the “New Concept of Russia’s Foreign Policy.” TASS reports that the decree states:

“Amid the intensifying political, social, and economic contradictions and the growing instability of the world political system, the role of the factor of force in international relations increases. The build-up and modernization of the force potential; the creation and deployment of new types of armaments are undermining strategic stability and creating a threat to global security ensured by a system of treaty and agreements in the sphere of arms control.”

The decree continues, “While the danger of unleashing a large-scale war, including a nuclear conflict, remains low among leading states, there are increasing risks of their involvement in regional conflicts and the escalation of crises.” It states, “Russia attaches major significance to the implementation of the Russia-U.S. Treaty for the Further Reduction and Limitation of Strategic Offensive Arms of April 8, 2010.”

“Russia reiterates its readiness to discuss issues of further phased reduction of nuclear potentials based on the growing topicality of giving this process a multilateral character, with due account of factors influencing strategic stability.

“Apart from that, Moscow supports the establishment of a zone free from nuclear weapons and other types of weapons of mass destruction; first of all, in the Middle East.”

Russia deems it necessary to create a broad international anti-terrorist coalition,” TASS reports, and quotes the document, “The global terrorist threat has acquired a qualitatively new nature with the emergence of the international terrorist organization Islamic State and similar groups making violence unprecedentedly cruel, seeking to create their own state and increasing their influence on a territory between the Atlantic Coast and Pakistan,” said the document, posted on the official portal of legal information.

The document says the coalition should…  work without politicizing and double standards, and use the possibilities of civil society” to prevent terrorism and extremism, and counter the spread of radical ideas.

Policy Concept states that “Moscow does not accept Washington’s attempts to exercise extraterritorial jurisdiction, but Russia is interested in building a meaningful relationship with the U.S., based on a predictable and gradual development of dialogue with the U.S.” only possible if based on the principle of equality, mutual respect of interests, and non-interference in the internal affairs of each other. Moscow, does not accept Washington’s attempts to exercise extraterritorial jurisdiction that violates international law, and is adamant to resist any military, political, or economic pressure, reserving the right to strictly respond to unfriendly actions, particularly by strengthening national defense and taking tit-for-tat, as well as asymmetrical measures.”


Defending the Old Paradigm at the National Reagan Defense Forum

Dec. 4 (EIRNS)—British Defense Secretary “Sir” Michael Fallon personally joined Obama’s Pentagon team and senior U.S. security figures gathered at the Dec. 2-3 National Reagan Defense Forum in Simi Valley, California, to hone efforts to trap (and thus sink) the incoming Trump administration in their global war policy and geopolitics. Fallon was the first British cabinet minister to visit the United States since the election, and he came with the message that the United States must confront Russia. NATO countries are in a “strategic competition” with Russia, and “there’s no point pretending this is business as usual,” the U.K. Guardian reported that he argued. Dialogue is nice, but “deterrence is essential.” Fallon urged the Trump administration not to retreat into isolationism.

Obama’s Secretary of Defense Ash Carter and Chairman of the Joint Chiefs of Staff Gen. Joe Dunford insisted the United States must “remain fully capable of confronting Russia, China, North Korea, and Iran—and maintain the forces needed to defeat violent extremism,” as Dunford argued, according to the DOD release on his speech. Dunford demurred that “I’m not saying that conflict with any of these four states is inevitable,” but he said that this must be the basis for planning and capability development. The DOD release added: “Russia’s goal is to affect U.S. alliances and America’s ability to project power. China does the same thing, the chairman explained, adding that advancing U.S. interests in the 21st century is going to require a full understanding of that dynamic and the development of effective responses.”

Air Force Chief of Staff Gen. David Goldfein told the forum that the Joint Chiefs are finalizing a classified military strategy they plan to present to President-elect Trump detailing the military challenges to the U.S., with the five threats posed—Russia, China, Iran, North Korea and violent extremism—detailed in annexes to the classified report. The intention is to lay the groundwork for key decisions on spending, size of the military and readiness that Trump will have to make, Goldfein said.

At least one word of warning was issued at the meeting regarding this agenda. Singapore Defense Minister Ng Eng Hen told the conference that China cannot and should not be contained. “It is neither possible nor strategically necessary to contain China’s rise … China is now an integral leader of global systems of trade, finance and security. It is clear that China needs the world as much as the world needs China, and I think this interdependence will grow, not diminish,” he said.


European Space Agency Discusses Space Plans until 2024

Dec. 3 (EIRNS)—Europe’s bold attempt to search for life on Mars will launch as planned in 2020, despite concerns over escalating costs, and the spectacular loss of the mission’s lander demonstrator as it attempted to land on Mars in October. At their Dec. 1-2 meeting in Lucerne, science ministers of the 22 European Space Agency (ESA) member states yesterday agreed to release most of the extra €440 million needed to ensure the future of the ExoMars Rover mission.

The mission, the second stage of a two-part program costing €1.3 billion, is due to land a rover on Mars in 2021, to drill into the soil and look for biochemical traces of living or dead microbes.

The ExoMars Rover has had a checkered history and had come close to being abandoned on more than one occasion. Originally it was to have been a joint enterprise with NASA, but NASA pulled out, and a new partnership was formed with Russia’s Roscosmos space agency.

In May, the launch date was put back two years because of problems with delivering hardware. A technical review then concluded that the mission could be secured only with extra funding. “For us, a further delay is no option,” ESA Director Johann-Dietrich (“Jan”) Woerner said at the press conference in Lucerne.

Woerner also voiced optimism about the realization of the “Moon Village” program for a standing lunar base, which was further discussed at the Lucerne meeting. At a press conference after the two-day meeting he said: “We now have a list of actors worldwide who would like to participate in this Moon village concept. There are ideas of companies—not only ideas, projects of companies—to go to the Moon, and they want to be part of this community.”

“We are joining forces. There are companies offering payloads. There are public entities going to the Moon and offering payloads. Even NASA is part of this. So therefore, the Moon Village was a part of our discussion at the very beginning.” He stressed that at present the Moon Village was no more than a concept and did not form part of any mission program. Yet the first steps towards making a Moon base a reality had already been taken. “It’s started already,” he said. “It’s a permanent concept. If you want to create a village on Earth you don’t need a first day, you just say ‘I do it.’ And exactly this is what we are doing.”

The Lucerne meeting furthermore extended ESA’s participation at the ISS beyond the originally envisaged date 2020, for an additional four years.

Illinois Law Will Prevent Nuclear Plant Shutdowns

Dec. 4 (EIRNS)—Illinois has joined New York State in passing legislation that ends electricity deregulation and protects the state’s nuclear power plants. On Dec. 1, just minutes before the end of the final day of its session, the Illinois House and Senate passed “The Future Energy Jobs Bill,” which will prevent the closure of two of the state’s nuclear power plants. Nuclear energy provides 40% of the electricity in Illinois. The two Exelon plants together—Clinton and Quad Cities—were losing $100 million per year, due to state subsidies of 21 cents per kilowatt-hour (kwh) for solar, and 2.3 cents/kwh for wind, against which unsubsidized nuclear is forced to “compete.” The bipartisan bill, which Gov. Bruce Rauner said he would immediately sign, guarantees that the two plants will stay open for the next 10 years, by allowing a small rate increase for consumers. Saving the two plants saves about 4,200 jobs, and about $1.2 billion per year in economic activity.

The increase in rates that Exelon will be given amounts to less than 25 cents per month for residential customers, over a 13-year period. The increase will generate about $235 million per year for the nuclear power that is produced.

The rebellion in Illinois against deregulation, “competition,” and Greenism, follows similar recent action by the New York State legislature, which approved the adoption by the Public Service Commission of a new Clean Energy Standard to prevent the closure of two nuclear plants in Upstate New York. Other states, and state legislatures, are facing similar situations. Where action has not been taken, plants have been shut down prematurely. At least a dozen more nuclear plants are at risk.

Rather than reverse the scourge of deregulation on a piecemeal, state-by-state basis, the electricity utility industry should simply be federally reregulated, and the provision of reliable electric power once again be considered a public good.

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