EIR Daily Alert Service
TUESDAY, MARCH 14, 2017
Volume 4, Number 51
EIR Daily Alert Service
P.O. Box 17390, Washington, DC 20041-0390
March 13 (EIRNS)—If the growing number of reports that Donald Trump and Xi Jinping will meet in Florida next month are true, the way is open for President Trump to collaborate with China’s global growth and progress driver—the so-called New Silk Road or Belt and Road Initiative—as Barack Obama refused to do.
The horizon goals Trump set out for America’s “250th Anniversary” in 2026—peace with nations including our current “adversaries,” a renewed modern economic infrastructure, “our footsteps on distant worlds”—would then have far better prospects of being reached. Those goals are not on the leadership’s agenda of either of the United States’ warring political parties.
The British intelligence and security apparatus has turned Democratic Party shock at Trump’s election victory, into a full mobilization, still at high intensity, to remove him by impeachment or resignation. Some at high levels of the European elites would contemplate assassination as well. One British intelligence operative after another (the latest reported in detail in this Alert) has injected “the intelligence to destroy Trump” into the American political process, through Obama and his George Soros faction of Democrats. Monday, March 20 is another targetted key date in their effort to bring Trump down by fake scandals, if Obama Democrats keep playing the fool for it. This is the date of the House of Representatives Intelligence Committee hearing on the alleged, objectionable Trump-Russian connections.
The British oligarchy cannot bear the idea of a U.S. President rejecting geopolitics and financial empire, in favor of national development and “win-win” cooperation among the major powers United States, Russia, China, India, Japan and others. This is what is at stake in upcoming meetings with Xi Jinping and, perhaps, with Russian President Putin.
The goals of rebuilding America’s infrastructure, of returning man to the Moon permanently and going beyond, cannot be reached otherwise. There is not the $5-8 trillion needed for a new, high-technology U.S. infrastructure system without the world’s champions at this, China and Japan particularly, taking part. The Belt and Road Initiative, and China now calls its global building initiative, is key to this new paradigm; and also to prospects of peace in the Middle East in collaboration with Russia.
It is useful that the Belt and Road Forum’s leader, State Councilor Yang Jiechi, is also the man who spent two days of meetings with Trump’s team in Washington and New York last month.
But the critical actions to make this work are up to us. That means breaking Wall Street’s power by forcing through a Glass-Steagall banking reorganization; pushing forward a Hamiltonian national credit; institution which the United States entirely lacks; and keeping “rebuilding America” at the highest level of fusion power development and exploration of the solar system.
Lyndon LaRouche put forward these “Four Laws To Save the United States” several years ago, precisely to achieve this goal of collaboration which represents his entire life’s work. And he’s warned that the British Crown powers will not tolerate “losing” the United States to this new paradigm; they must be defeated for it to come to fruition.
U.S. POLITICAL AND ECONOMIC
March 13 (EIRNS)—China is putting itself forward as a current world Leader in political and economic initiatives on economic development today, and making this announcement directly to the American people, with a full-page advertisement on page A5 of today’s New York Times, entitled, “Xi Jinping: Leader of China’s Great Revival.”
Another Chinese-U.S. initiative announced in the U.S. at the same time is an April 6-7 meeting between Presidents Xi Jinping and Donald Trump at President Trump’s Mar-a-Lago estate in Florida.
The announcement of the April 6-7 meeting between the two Presidents first appeared in Axios news service.
On March 9, NewsMax reporter John Gizzi, referencing a report by a Japanese news agency, asked President Trump’s Press Secretary Sean Spicer at his briefing if the two Presidents would meet in April, and “Does this mean that there is a new meeting before their scheduled meeting at the G20 in July?” At that time, Spicer responded that “I’m not going to comment on the President’s schedule or foreign leaders at this time, John.” Gizzi then posed a second question, asking whether President Trump were still committed to Glass-Steagall, to which Spicer answered, “Yes.”
Xinhua news agency followed up by placing a full-page “advertising” explanation of China on page A5 of the March 13 New York Times, entitled, “Xi Jinping: Leader of China’s Great Revival,” which aims to provide American readers in the intellectual center of the United States, New York, with the full story on Xi’s “leading more than 1.3 billion people on the march toward the Chinese Dream: an end to the worst kinds of poverty and the rejuvenation of a nation that has already made astonishing progress in creating prosperity.” It states that the 63-year-old reformer, Xi, “has brought his own thinking to bear on the problems that will be faced down the road, especially after a year of unexpected world events.” It notes, “With the concerns of the people his first and foremost concern, Xi’s experience, commitment, determination, and ability to govern and lead have become something of a rarity on the world’s political stage.
“This year the 19th National Congress of the Communist Party of China will elect new leadership for a five-year term, the crunch period for Xi’s vision of a well-off nation by the 100th anniversary of the CPC….
“By 2020, China’s gross domestic product is predicted to exceed 9 trillion yuan ($13 trillion), which experts believe will be close to that of the United States. There should be about 440 million middle-class households in China, a huge market for the world.”
It continues, “Xi is at the wheel of a reform juggernaut, revitalizing and renewing almost every aspect of the economy and society, from the financial sector to health care. Changing the lives of hundreds of millions of people means abandoning what is no longer relevant, including the one-child policy and ‘re-education through labor,’ a way of dealing with minor offenders introduced more than a half century ago.’…
“Xi’s campaign against corruption, a threat he warned could … destroy the state, has gained ‘crushing momentum.”
The ad further points out, “China created 2.65 million jobs for Americans in 2015 through bilateral trade and investment, according to the U.S.-China Business Council based in Washington, D.C….
“The largest modernization movement in human history has a political party of 88 million members united around a core leader, bringing better lives to 1.3 billion people. This common dream benefits not only China, but the whole world.”
The second section of the full-page is titled: “People’s Congresses: Behind China’s Success Story.” It reports that the fifth session of the 12th National People’s Congress (NPC) is being held this month. Unlike Western countries, when the ruling party or coalition does not hold a majority, and delays or conundrums are created—the People’s Congress system can act and lend support to, and supervise the government, to achieve effective governance and rule of law.
In China’s political system, the NPC is the supreme organ of state power. The central government, the Supreme People’s Court, and the Supreme People’s Procuratorate answer to the NPC. When it is not in session, the Standing Committee of the NPC exercises oversight and does investigations. Unlike multi-party systems in the West, there are no majority or minority parties in the NPC.
The system of People’s Congresses is designed to include people from various backgrounds and cover a good cross-section of society. The NPC deputies are divided into different caucuses based on where they are elected from.
March 13 (EIRNS)—Jon Huntsman, Jr., former Republican Governor of Utah, and former U.S. Ambassador to China 2009-2011, has accepted an appointment by President Trump to serve as U.S. Ambassador to Russia, Sputnik reported March 12. This is Huntsman’s third ambassadorial appointment—he has been ambassador to China and Singapore.
Sputnik interviewed Jason Perry, who oversaw economic development for Utah under Governor Huntsman. Perry told Sputnik that Huntsman’s appointment is based on his ability to understand and work with big power relations, and pointed to Trump’s willingness to overlook Huntsman’s criticisms of some of Trump’s policies, which killed some of Trump’s other candidates.
March 13 (EIRNS)—Louise Mensch, the former British Conservative MP at the center of the latest “get Trump” operation, has been getting some more undeserved attention. Mensch—better referred to as “Unmensch,” a German word signifying someone who has no redeeming qualities for humanity— was on BBC’s popular “Sunday Politics” show, calling for Trump’s impeachment because of his “blindingly obvious” collusion with Russia to win the election, as she put it earlier in her interview with the Sunday Times “That’s cheating in the sense he’ll be impeached for it and should go to jail for it, rightly, really, and so should everybody in his campaign that colluded, which is more or less everybody in his campaign.”
In addition to the BBC interview, Mensch was also the center of a feature article in the Murdoch-owned Sunday Times, and in stories last week on NPR and in the Daily Beast. The picture that is emerging, however, is one of a troubled operative, who believes she has become a “temporary superpower,” because of “raging ADHD [attention deficit hyperactivity disorder] and I really care,” which occasionally makes her capable of intense concentration. One source, commenting on her allegation that Putin had Andrew Breitbart killed in order to advance Bannon’s campaigns of Trump and Nigel Farage, said, “this is crazy talk,” another more bluntly saying “she’s batshit crazy.”
With 178,000 “followers” of her Twitter feed, Mensch churns out a steady stream of expletive-laden tweets, determined to convince people that what she argues is “blindingly obvious,” that Donald Trump only won the election with Russian help. In December 2016, she “quietly relinquished” her control of Heat Street to “pursue unspecified digital projects at the site’s parent company, News Corp.,” according to the Daily Beast.
It has already been reported that she has close ties to intelligence agencies, which trust her, she says, because of her fierce defense of the intelligence community in the wake of the exposés by Edward Snowden. Today, she told the Sunday Times, her one desire is that she “really [wants] to meet Chris Steele,” saying of the former MI6 agent “I ‘heart’ you so much and I just really want to meet you in the worst way. I am such a fangirl.”
COLLAPSING WESTERN FINANCIAL SYSTEM
March 13 (EIRNS)—Called a “plan to modernize Glass-Steagall” by American Banker and a “throwback to the 1933 Glass-Steagall Act” by Washington Examiner, FDIC Vice-Chair Thomas Hoenig’s speech to the Institute of International Bankers in Washington, D.C. today was really a much simpler proposal to adopt one element of Glass-Steagall, although a significant one.
Hoenig himself said “The proposal would not reduce the ability of a universal bank to conduct any of its current [including speculative] portfolio of activities.” But only the commercial bank unit’s deposits could be insured by taxpayers through the FDIC. He proposed that U.S. financial firms should partition their investment banking activity, putting all those units into a separate intermediate holding company with its own board, management and its own capital. That holding company would not have access to FDIC insurance.
The second part of Hoenig’s proposal requires all bank holding companies to have a tangible capital equal to 10% of all (not risk-weighted) assets, including the total value-at-risk of their derivatives exposure. If they were unable to do this they would have to be broken up, and this level is roughly double the capital ratio (half the leverage) which the Wall Street megabanks have, at best.
Hoenig proposed to accompany this with the removal of a large number of Dodd-Frank regulations; and said he had briefed the leaders of the House Financial Services Committee and Senate Banking Committee on the proposal before making it public.
Bloomberg News noted that “President Trump has worried Wall Street by promising to bring back a version of the Glass-Steagall Act. Hoenig told reporters after the speech that his plan, which would require new legislation, wouldn’t bring Glass-Steagall back, but could meet the Trump Administration’s goal of enacting a modern form.
March 13 (EIRNS)—McClatchy Newspapers was the first of the news media in the United States, back in January, to publish the “Trump White House priority list” of large economic infrastructure projects around the country, led by a number of crucial port, lock-and-dam, and rail/rail tunnel projects. Now McClatchy has run a very long article on the Texas Central Railway plan for a 200 mph Japanese Shinkansen-technology rail line over 250 miles between Houston and Dallas-Ft. Worth. Calling it “the Texas way of doing big things,” the newspaper chain reported TCR’s President Tim Keith saying that the project needed no federal funds and would be built by private investors. All they need is clearance from the Transportation Department to go at 200 mph, and relief from environmental and related regulations.
If this is to be “a model the Trump Administration could use to expedite his promised $1 trillion infrastructure push,” then the model will be bankruptcy and the $1 trillion will be for taxpayer bailouts of failed private infrastructure companies.
Reported the Wall Street Journal last Dec. 1, “A 2015 Congressional Budget Office report counted 14 completed highway projects that relied on some form of private financing. Half … have either declared bankruptcy or experienced a public buyout of the private partners,” usually both. It is not uncommon for such private partnerships building or buying infrastructure—like the infamous Chicago parking facilities privatization or various privatized toll roads—to go bankrupt more than once, despite charging very high user fees and getting rescued by taxpayers. The TCR plan is no exception: a $250 ticket for a 90-minute ride (much faster than plane or auto, certainly), and priced even higher on certain days and times of the day.
The reason is nearly always the same: The private investors are organized through investment firms and charge high interest, typically 10-12%, for their lending; and the private developers of the infrastructure want a high profit for their shareholders as well. This “Texas way” that TCR is bragging about, will not last, and is not the way modern breakthrough infrastructure has ever been created.
National credit is the basis for such breakthrough missions, from the early railroads (Second Bank of the United States) to FDR’s Four Corners power and water management, to the Apollo Mission to send man to the Moon.
THE NEW GLOBAL ECONOMIC ORDER
March 13 (EIRNS)—Chinese President Xi Jinping’s vision “is the only future for humanity on this planet,” said UN General Assembly President Peter Thomson of Fiji in an interview with Xinhua. Both Thomson and UN Secretary-General António Guterres have pledged that the United Nations will work with China to promote world peace and development, and realize the goal of building a community of shared future for mankind.
As a clear sign of the increasing global recognition of Xi’s signature concept on human development, the 55th UN Commission for Social Development (CSocD) approved a resolution in February that calls for more support for Africa’s economic and social development by embracing the spirit of building a human community of shared future. Philipp Charwath, chair of the CSocD, told Xinhua that the concept “basically is an acknowledgment that we all depend on each other.”
SCIENCE AND INFRASTRUCTURE
March 13 (EIRNS)—Three researchers at China’s Institute for Optics, Fine Mechanics, and Physics have been promoting the development of anti-satellite weapons, based on laser, microwave, and electromagnetic technologies. Zeng Yu-quang, Wang Zhi-hong, and Gao Ming-hui first wrote about the importance of a space-based laser defense system in 2013, reports Sputnik today, stating that “in future wars, the development of ASAT [anti-satellite] weapons is very important…. Among those weapons [a] laser attack system enjoys significant advantages, of fast response speed, robust counter-interference performance, and a high target destruction rate,” especially if it is deployed in space. The system they are proposing would use a ground-based radar to identify a target satellite.
These new space-based “light war” satellite weapons are an effort to counterattack the network of U.S. navigation, intelligence, and communications satellites, Sputnik reports, upon which the U.S. economy, and the U.S. military, are heavily dependent. The scientists, who await government funding for their proposed five-ton chemical laser, estimate it could be operational by 2023. The 2013 article also reported that in 2005, China “successfully conducted a satellite-blinding experiment” using a low-power 50-100 kw ground-based laser gun.
Space-based laser defense, part of Lyndon LaRouche’s and President Reagan’s original Strategic Defense Initiative, was never developed, and even the Airborne Laser Lab that the Pentagon was testing has been discontinued.
STRATEGIC WAR DANGER
March 13 (EIRNS)—The Kurds have been America’s “go-to” ground force for tackling Daesh in the Middle East, but, Sputnik points out, Washington’s reliance on the Kurds, an ethnic group, with minorities in Turkey, Syria, Iraq, and Iran, which has tried to achieve greater autonomy, if not independence, for a long time, has sparked concerns over the true motives of the U.S. in Syria.
Andrei Klimov, Deputy Chair of Russia’s Federation Council Committee on International Affairs, told Izvestia, Sputnik reported, “The United States has efficiently played the Kurdish card. Washington has actively increased its presence [in Syria]. Under these circumstances, there are risks that the issue of dividing Syria into several so-called sovereign states will return to the agenda, since the support of a single ethnic group could lead to negative implications.”
The fact that the U.S.-backed Syrian Democratic Forces (SDF), primarily made up of the Kurdish People’s Protection Units (YPG), has become the main force tasked with liberating the city of Raqqa—Daesh’s key Mideast stronghold—has prompted some to suggest that Washington has promised to back the Kurds’ demands during the reconstruction of Syria, Klimov continued.
Sputnik reports that an unnamed source in the Russian Foreign Ministry confirmed this, and said that the political and security interests of the Kurds are mainly limited to Rojava in Syria. The source told Sputnik, “There is no military need for the Kurds to capture [Raqqa]. The sheer fact that they have advanced [toward it] shows that they received guarantees that they will have an opportunity to assert their rights” during the peace process. These guarantees were ostensibly provided by external forces, apparently meaning the U.S.
This is not something that Damascus will take lightly, says Sputnik. Syrian President Bashar al Assad called liberating Raqqa a priority for the Syrian Arab Army (SAA) over the March 11-12 weekend. This will be difficult, said defense analyst Viktor Murakhovsky, because Damascus-led forces “will need to cross the Euphrates to advance toward Raqqa…. But the Kurds have reached the left bank …[and] cut the direct route between the city and Deir ez-Zor. Government forces need to reach an agreement with the SDF if they want to move towards Raqqa, which Murakhovsky called highly unlikely.
March 13 (EIRNS)—A very close associate of Obama in the Democratic Party, Patrick Gaspard, began work as Vice President of Programs of George Soros’s Open Society Foundations on Jan. 9. The New York office of the Open Society Foundations reported that he provides “strategic direction and oversight to the organization’s programmatic agenda” for the “more than 120 countries” in which this Soros operation has tentacles, and reports directly to its president, Chris Stone.
Gaspard has just returned to Washington, D.C. from three and a half years as U.S. Ambassador to South Africa, where he played a major role in the still ongoing regime-change warfare against President Jacob Zuma there, under the guise of “working to strengthen civil society.”
A Wikipedia thumbnail bio states that Gaspard is “most well known for his time at the White House and as the day-to-day leader of the Democratic Party headquarters. He served as the Executive Director of the Democratic National Committee from 2011 to 2013, overseeing the party committee’s efforts to re-elect President Obama. Previously, he was the Director of the White House Office of Political Affairs for the Obama Administration from January 2009 to 2011, Associate Personnel Director of President-elect Obama’s transition team, and National Political Director of Barack Obama’s 2008 presidential campaign.”
He was the liaison to the White House for Obama’s corrupt ACORN vote-getting operation. Earlier, he had been executive vice president for politics and legislation of the Service Employees International Union (SEIU)
While Gaspard was ambassador to South Africa, on Feb. 19, 2016, the ruling African National Congress Secretary General Gwede Mantashe, told a rally in the capital Pretoria, “We are aware of the meetings taking place regularly at the American embassy. Those meetings in the American embassy are about nothing else other than mobilization for regime change.” Mantashe also fingered Obama’s Mandela Washington Fellowship for Young African Leaders, to take young people to the United States for six weeks and then “plant them everywhere, in the campuses and everywhere to foment unrest, when they return.” Gaspard “denied” the accusation with a non-denial, a joke circulated on Twitter.