EIR Daily Alert Service
MONDAY, JANUARY 30, 2017
Volume 4, Number 20
EIR Daily Alert Service
P.O. Box 17390, Washington, DC 20041-0390
- Trump-Putin Agreement on Terrorism Is Crucial Blow to Geopolitics
- Japan and Russia Proceed with Joint Development of Contested Island
- Belt and Road Initiative Will Reshape the World Economy
- May White House Visit Was British Geopolitical Intervention
- First Step To End Establishment’s Banning of LaRouche?
- American Banker Column Exposes Post-Glass-Steagall Banking
- How To End NAFTA? Bring the Silk Road Paradigm to the Americas!
- Soros Targeted in Europe
- Russian Foreign Minister Met with Syrian Political Opposition
Trump-Putin Agreement on Terrorism Is Crucial Blow to Geopolitics
Jan. 29 (EIRNS)—President Trump spoke to Russian President Vladimir Putin by phone at mid-day Jan. 28 in what the Kremlin reports as a wide-ranging discussion, lasting roughly one hour. The two Presidents “had a detailed discussion of pressing international issues,” and they “emphasized that joining efforts in fighting the main threat—international terrorism—is a top priority.”
British Prime Minister Theresa May’s rush to Washington to “Thatcherize” President Trump, could be seen as having been an attempt to prevent precisely this—an agreement by the Russian and American Presidents on strategies against both international terrorism and “regime change” wars.
International president of the Schiller Institute Helga Zepp-LaRouche pointed to the call as the most important step of the Trump presidency thus far—although Zepp-LaRouche is pushing for another, on restoring the Glass-Steagall Act in the United States.
She was discussing one of the leading British agents of worldwide influence, George Soros, one of whose employees and business partners, Steven Mnuchin, has been nominated U.S. Treasury Secretary. Mnuchin’s opposition to Glass-Steagall could cause more damage to the United States even than May’s geopolitics.
On a phone conference with hundreds of activists across the United States Sunday, Zepp-LaRouche declared, “The fact that Donald Trump yesterday spoke with five world leaders—among them, President Putin of Russia, and that they apparently established a very good accord—is of the highest strategic importance. And if you look at what the White House and the Kremlin issued afterwards, this is really important, because ‘Trump asked to convey his wishes of happiness and prosperity to the Russian people, saying that the American people had warm feelings towards Russia and its citizens.’
“This is very, very important, and I think we should really appreciate that if the United States and Russia can fix their relations, then every other problem can be potentially tackled.”
According to the Kremlin, “The Presidents spoke out for establishing real coordination of actions between Russia and the U.S.A. aimed at defeating ISIS and other terrorist groups in Syria.” According to the White House, the call ranged in topics from mutual cooperation in defeating ISIS to efforts in working together to achieve more peace throughout the world, including Syria. “The positive call was a significant start to improving the relationship between the United States and Russia that is in need of repair,” a White House readout of the call said. “Both President Trump and President Putin are hopeful that after today’s call the two sides can move quickly to tackle terrorism and other important issues of mutual concern.”
The Kremlin did not say whether or not they discussed the lifting of U.S. sanctions on Russia, but they “stressed the importance of rebuilding mutually beneficial trade and economic ties between the two counties business communities, which could give an additional impetus to progressive and sustainable development of bilateral relations.”
“During the conversation, both sides expressed their readiness to make active joint efforts to stabilize and develop Russia-U.S. cooperation on a constructive, equitable and mutually beneficial basis,” the Kremlin report said.
THE NEW GLOBAL ECONOMIC ORDER
Japan and Russia Proceed with Joint Development of Contested Island
Jan. 29 (EIRNS)—In a model for breaking through British Imperial use of contested territories to keep nations apart, Japan and Russia are proceeding with the agreement worked out between Prime Minister Abe and President Putin when they met in Japan in December, to jointly develop the Kuril Islands (Northern Territories) before trying to settle the sovereignty question.
As Putin said to the press before that meeting, building trust between nations through development cooperation is the necessary precondition for resolving historic territorial issues. It also provides Japan with a means of breaking through assumed U.S. imperial rights over policies in Japan.
Foreign Minister Fumio Kishida announced today that his deputy, Takeo Akiba, will meet with his counterpart Igor Morgulov on Wednesday in Moscow, to discuss both joint development projects on the Kuril Islands (called the Northern Territories in Japan), and provisions for former Japanese residents of the islands to visit them visa-free.
“I hope there will be constructive discussions on the issues,” Kishida told reporters.
Belt and Road Initiative Will Reshape the World Economy
Jan. 29 (EIRNS)—Jean-Pierre Lehmann, a globalist economy expert, recognized the reality of China’s win-win policy by stating at a conference in Bucharest on Jan. 27 that the world could greatly benefit from China’s Belt and Road initiative. “China’s foreign policy could reshape a good part of the world’s economy,” he said, according to an article carried in Xinhua yesterday.
He projected that the Belt and Road Initiative will significantly “reshape global economic development,”
He noted that China’s Belt and Road Initiative, proposed in 2013, intends to build an extensive trade and infrastructure network which will connect Asia with Africa and Europe. He pointed out that the initiative already has the support of over 100 countries, as well international organizations.
Lehmann said that the $2.5 trillion initiative could have huge economic benefits on the world economy. He pointed out the Asian Infrastructure Investment Bank had even attracted U.S. allies, despite Obama’s efforts to prevent them from joining. He added that China has set up 110 economic zones in 50 countries. He said that the Summit of Silk Road in Xi’an drew 500 participants from 52 countries.
He also said that by 2030, China will become a high-income economy with strong harmonious relations, driven by creativity and the power of ideas. “The Chinese economy was made by muscle, but now it’s getting more with the brain, but many do not understand this!”
In China now, he noted, “things happen at an amazingly rapid pace.”
U.S. POLITICAL AND ECONOMIC
May White House Visit Was British Geopolitical Intervention
Jan. 27 (EIRNS)—From the moment she began her speech at the Republican Party’s Jan. 26 retreat, British Prime Minister Theresa May made clear that her trip to Washington was intended to ensure that President Donald Trump doesn’t stray from the British “geopolitic” fold. With great fanfare, she announced in today’s joint press conference at the White House, that Her Majesty the Queen had invited Trump for a state visit later this year, and that he had accepted.
May harped on the “special relationship” ad nauseam, repeatedly mentioning Ronald Reagan’s and Margaret Thatcher’s collaboration, gushing that “we’ve done everything together … we made the modern world,” and now, “we have the opportunity—indeed the responsibility—to renew the Special Relationship for this new age—the opportunity to lead, together, again.”
Lead where? Into “100%” support for NATO, for example. May stated in today’s press conference that this was Trump’s view, although he barely mentioned this. As she said last night, “America’s leadership role in NATO—supported by Britain—must be the central element around which the Alliance is built.”
May pointedly warned the Republicans that the policy on Russia should be to “engage but beware”—engage Russia from a position of strength, and assure the nations of Eastern Europe “that their security is not in question.” In today’s press conference, when asked about the possible lifting of sanctions against Russia, Trump responded that while it’s too early to talk about this, “I hope we have a fantastic relationship with Russia. If we go after ISIS together, I will consider that a good thing…. If we can have a great relationship with Russia and China, I’m all for that. It would be a tremendous asset.”
May quickly interjected that her government insists that sanctions remain in place until Russia fully complies with the Minsk process. Disagreement on some issues is natural, she added coyly, but does nothing to diminish the close relationship.
In discussing the fight against Daesh/ISIS and Islamic extremism, May told the GOP retreat that “we must work internationally,” but this apparently doesn’t mean rejecting regime-change. She underscored that such cooperation means not only securing “a political solution in Syria, but challenging the alliance between the Syrian regime and its backers in Tehran.”
May expressed concern that countries with “little tradition of democracy, liberty and human rights—notably China and Russia—have grown more assertive in world affairs,” raising the fear that there may be an eclipse of the West.
That is, she seems to have forgotten, where the Sun sets.
First Step To End Establishment’s Banning of LaRouche?
Jan. 29 (EIRNS)—An excellent article, entitled “Time To Bring Lyndon LaRouche Out of Exile,” by New York attorney Rahul Marchanda has been published by the prestigious journal, Modern Diplomacy on Jan. 28, and also posted by the author to Veterans News Now online journal.
It begins, “Novel thinkers and those with original ideas, coupled with gifts of clairvoyance, are always initially challenged and ostracized by the masses, who are then used by corrupt political leadership to justify horrific actions of exclusion, persecution, and damnation of their enemies. For more than 50 years Lyndon LaRouche has been writing, lecturing, teaching, and warning Americans and the rest of the people of the world, about the exact same issues pertaining to economics, global governance and the agenda of the Oligarch/Plutocrat/Deep State lunatic fringe, who Donald Trump and the majority of America (and the world) are fighting against.”
The article proceeds to detail the illegal operations against LaRouche, calling them a “slow motion assassination” which LaRouche survived. “His enemies and betrayers were allegedly people like George H.W. Bush and the rest of the New World Order globalist/skull and bones secret societies which were beholden to the City of London within the United Kingdom and its crown, rather than the United States of America and its people. To that end, Lyndon LaRouche’s enemies have now been revealed over the past few years especially, to be enemies of the American people….
The author ends his piece as follows: “Now that Donald Trump is President of the United States, perhaps Lyndon LaRouche will be allowed to emerge from forced exile, as his enemies have now been outed and routed, and he should take his rightful place among America’s greatest heroes, thinkers, philosophers, writers, lovers of humanity and the United States of America.”
Lyndon LaRouche is Founding Editor of EIR.
COLLAPSING WESTERN FINANCIAL SYSTEM
American Banker Column Exposes Post-Glass-Steagall Banking
Jan. 27 (EIRNS)—Andre Perron, a partner in a Florida law firm, was given a shot at post-Glass-Steagall banking in a column in American Banker Jan. 26, and scored a direct hit. In the process, though not dealing with Treasury Secretary nominee Steven Mnuchin, Perron exposed Mnuchin’s claim against Glass-Steagall in his confirmation hearings, as the opposite of the truth.
Perron’s “BankThink” column is headlined, “Think the Wells Scandal Was Bad? This Could Be Much Worse.” The picture he presents: All large U.S. “universal banks” are doing what Wells Fargo was exposed doing. They are selling their depositors securities and even derivatives products en masse, and it is most often the bank’s loan officers, who deal directly with depositors about their savings options, who are doing the securities selling or at least initiating it. The phrase is, “dual-hat” bankers, and they are universal. The difference at Wells Fargo, was that they kept millions of depositors unaware that they were being sold these products; whereas “dual-hat” loan officers in other banks are—whether more or less incompletely and deceptively—telling the customers what they’re being sold.
Writes Perron, “These inextricably intertwined customer duties find their origin in the Gramm-Leach-Bliley Act, which was signed by President Clinton in 1999 and repealed provisions of the Glass-Steagall Act of 1933. The 1999 law eliminated the regulatory wall between insurance, banking and the securities business. This not only enabled the merger of commercial and investment banking, but also motivated companies to link depository services with broker-dealer services, further blurring the line between traditional bank services and investment services.”
It is an historical fact that the Spring 1933 exposure, in the Senate “Pecora Hearings,” of “dual-hat” looting of customers at National City Bank branches in the 1920s, led directly to the enactment of Glass-Steagall in June 1933.
“Cross-selling” and “dual-hat” banking are more or less interchangeable terms, and their universality at the biggest universal banks is the context for some egregious tactics which have been the subjects of lawsuits and fines—like “Certificates of Deposit” which are actually tied to bond and derivatives indices and whose interest rates are rigged to go negative. Perron describes some attempts to “make up for” getting rid of Glass-Steagall, by laws in the early 2000s which created rules of FINRA or the OCC, but which have been trampled on. “This apparent conflict of interest exposes the bank to claims of predatory banking practices, negligent supervision and portfolio mismanagement. These conflicts in turn are magnified by the economic power and weight of ‘too big to fail’ conglomerates, which have a focus on the bottom line that inevitably leads to a corporate culture that will violate these ethical responsibilities.”
It is post-Glass-Steagall banking which reduces lending in the banking system—not Glass-Steagall restoration, as Mnuchin falsely claimed to the Senate Finance Committee.
Under Glass-Steagall regulation, commercial bankers will look to turn savings/deposit liabilities of the bank, into offsetting assets by making loans. But if tens of thousands of “dual hats” at the biggest banks are turning deposit liabilities into assets in the securities and derivatives markets, they are “loan officers” only in name, for whom lending is secondary, both for their banks and for their own personal compensation.
How To End NAFTA? Bring the Silk Road Paradigm to the Americas!
Jan. 27 (EIRNS)—Events around the new Trump Administration moves this week against NAFTA highlight that the only way to end NAFTA’s destructive impact, and benefit all concerned, is to break altogether with such economic geopolitics, and join the Americas to the “Silk Road” new world paradigm. In fact, several leadership voices in South America are now calling for a “new orientation” for economic and foreign policy, and looking in the direction of China. In the United States, the same push is seen in resolutions entered into five state legislatures this month, for Congress to reinstate Glass-Steagall, and make way for a shift to development. A legislator in the border state of New Mexico, made that the third state to entertain a resolution based on LaRouche’s “Four Laws.”
As of yesterday, the Jan. 31 NAFTA review meeting, which was preplanned for the three NAFTA heads of state/government, is off. This came about after Mexican President Enrique Peña Nieto cancelled his participation yesterday, following a tweet by President Donald Trump, that there would be no reason to meet with Peña Nieto if Mexico refused to fund construction of the border wall which Trump ordered be built in his Executive Order signed on Jan. 25. Trump’s press spokesman also suggested yesterday that Mexico’s refusal could be met by a 20% tariff on imports from Mexico, which would raise $10 billion to cover the wall’s expense. All this was later damped down, as just one of many in a “buffet of options,” by Reince Priebus, Trump’s Chief of Staff.
Trump and Peña Nieto then spoke by phone for an hour this morning, after which they released a “Joint Statement on U.S.-Mexico Relations.” It said, “With respect to payment for the border wall, both presidents recognize their clear and very public differences of positions on this issue but have agreed to work these differences out as part of a comprehensive discussion on all aspects of the bilateral relationship.” Otherwise, the statement says that their respective teams will continue to work together, and that, “The two had a productive and constructive call regarding the bilateral relationship between the two countries, the current trade deficit the United States has with Mexico, the importance of the friendship between the two nations, and the need for the two nations to work together to stop drug cartels, drug trafficking and illegal guns and arms sales.”
Even before the mid-week contretemps, 130 U.S. farm and food-related companies and organizations released their Jan. 23 letter to Trump, stressing their own stake in trade flows in North America. Titled, “U.S. Food and Agriculture Dialogue for Trade,” the signers ranged from John Deere, to Campbell Soup, to wheat, corn, pork, beef and dozens of other commodity groups.
Under the 20 years of NAFTA, degraded patterns of trade enforced by City of London/Wall Street circles, imposed food-import dependency and hunger on Mexico, while warping the export potential of U.S. food production capacity. Mexico in the 1980s was 80% self-sufficient in food, with an intent to be 100% self-sufficient; but under NAFTA, has become barely 50% food self-sufficient. At the same time, Mexico, while dependent on imported staples (corn, beans, wheat), was made into a source of cheap fruit and vegetable exports to the United States, displacing thousands of American farms. With spring planting and livestock decisions pending, U.S.-based farm-related operations are agitated.
A top-down policy shift to development policies in the interests of all—of the sort advocated by Lyndon LaRouche for decades, in his repeated calls for U.S.-Mexico cooperation in high-tech great development projects—is the only recourse from these otherwise destructive measures.
Soros Targeted in Europe
Jan. 29 (EIRNS)—Supposedly by “accidental leak,” the website of the Dutch Finance Ministry on Jan. 24 published data on speculative grand style “short sales” that George Soros has done against the Dutch ING Bank, at the bank’s expense. The affair dates back to 2012, but its revelation stirred up speculators internationally, so that the information was taken off the website later in the day.
Was this an accident, or was there more behind it? The short-selling methods of Soros and collaborators among hedge funds against Europe’s financial institutions, are justifiably blamed for much of the orchestration of the crisis of 2007-2008.
Soros is directly under attack in Macedonia and Hungary at present, newswires report. Macedonia’s Republika journal reports that on Jan. 16, a domestic campaign was launched to look into Soros’s dealings with NGOs and political groups in the country. This refers to the Open Society and Otpor, which have been active in the Balkans for several years.
Shortly before, Hungarian Prime Minister Viktor Orban announced that his government would “use all instruments available” to neutralize and disband the Soros-funded NGOs in the country. Szilard Nemeth, chairman of the parliamentary group of Orban’s Fidesz party, has announced the elimination of all NGOs in the orbit of Soros by this Spring.
Macedonian Prime Minister Nikola Gruevski, who is being hit by corruption charges coming from various NGOs, and who has had difficulty finding partners to form a new government majority after the December elections (which featured heavy losses for his VMRO-DPMNE party alliance), demanded that Macedonia be “de-Sorosized.” He charges prominent critics of his government with being on the Soros payroll, and their names were publicly exposed on Facebook.
STRATEGIC WAR DANGER
Russian Foreign Minister Met with Syrian Political Opposition
Jan. 27 (EIRNS)—TASS quoted Russian Foreign Minister Sergey Lavrov on his meeting with Syrian opposition this week, and prospects for Geneva talks, indicating how Russia is attempting to move the process despite all problems. Referring to upcoming United Nations-sponsored Geneva Syrian peace talks Lavrov said, “It is pleasant that the announcement of the Astana meeting forced our colleagues in the UN to declare a new round of talks,” Lavrov said. “Although this date has been again put off from Feb. 8 until the end of next month. We are convinced that passivity of our counterparts at the UN who did not hold any talks rounds since April is unacceptable,” he said.
On this week’s Moscow meeting, Lavrov said that while Russia presented a draft constitution to the opposition and Syrian government, it was only to promote discussion and not to force it upon anyone.
“The draft Constitution attempts to bring together and find shared points in those approaches that were outlined to us both by representatives of the government and representatives of the opposition, including all those present here, over the past several years,” Lavrov said. “We are convinced that it is time to stop arguing round and round the subject and it is necessary to focus on discussing specific issues that were outlined in Resolution 2254, including the work on the Constitution.”
He added, “No one is going to argue with the Syrians themselves about these sovereign issues for Syria.”
Representatives of the Riyadh group of the Syrian opposition were invited, according to Lavrov, but refused to come. “We invited the representatives of the Riyadh group to Moscow, they said they would come, but later said that they should contact with us independently, and not part of progressive democratic opposition forces,” Lavrov said. “The Riyadh group has said it is only possible to sit down for the talks after the cessation of hostilities. Once that the military actions have been terminated and a cease-fire established, there should be no … excuses.”
The Russian minister commented on the Jan. 23 meeting in Astana, Kazakhstan with Syrian “armed opposition” groups. “We view the Astana event as an important and a qualitatively new step towards settlement because now these processes involve armed opposition groups, which have not participated until now in contacts with the government and, as a whole, in the processes related to negotiations on the country’s future,” he said.