EIR Daily Alert Service
MONDAY, MARCH 20, 2017
Volume 4, Number 55
EIR Daily Alert Service
P.O. Box 17390, Washington, DC 20041-0390
March 19 (EIRNS)—Donald Trump’s Presidency, vilified (and wiretapped) by the entire trans-Atlantic establishment from neo-liberal to neo-con, is shattering the old paradigm of geopolitics, globalization and “Green” deindustrialization. The British intelligence and Privy Council establishment is reacting to extreme vitriol to this, and centering the drive of both European Union elites and Obama/Soros networks to bring Trump down rapidly by any means, impeachment, resignation, even assassination.
But the new paradigm—and the “new industrial revolution” the President invoked last week in Detroit—is already coming from the New Silk Road. It is being offered to Trump’s United States by China and the Eurasian powers’ great initiative, building the great projects of a new infrastructure for the Earth and for travel to the Moon and through the Solar System.
As Secretary of State Tillerson said during his meeting with China’s President Xi Sunday, relations “based on the principle of no conflict, no confrontation, mutual respect and win-win cooperation.” And as Xi answered him, relations “responsible to history and future generations.” And the New Silk Road is offering this same new paradigm to Germany and “Europe”—now so shocked and hostile that Trump’s Administration is rejecting the British dicta of “free trade,” environmentalism and globalization.
An impulse from the United States for this is critical. But a political revolution is necessary in the United States to do it, more than President Trump can deliver while fighting British and Obama assaults. Within these 30 days the Schiller Institute will be mobilizing, through the driver of the “Manhattan Project” of the LaRouche movement, to bring the United States into the new paradigm.
Crucial conferences are being held focused on the Schiller Institute’s April 13-14 conference in New York City. It will present both a Dialogue of Philosophies—the actual commonality of Confucianism and Christianity, in particular—and the historic, strategic potential of the period leading into the Beijing “Belt and Road Forum for International Cooperation” May 14-15. The New York conference will be an important inflection point in that process.
Among the participants will be three prominent Chinese authorities on the Belt and Road Initiative, U.S. infrastructure experts and political figures, leaders of the LaRouche movement, and diplomatic representatives. The cultural dialogue will be punctuated by an evening of music.
The Manhattan Project will spearhead a unified, national organizing thrust to catalyze the necessary dynamic through this conference and associated activity, to strengthen the potential for the consolidation of the New Paradigm emanating from Beijing.
At the same time the Glass-Steagall Act has to be restored in Congress to break the hold of Wall Street’s speculative casino over the stagnating American industrial economy. The legislation has gathered 40 sponsors since Feb. 1; a breakthrough must force it onto the floor. The current changes in NASA’s mission have to be taken from a mere “reprioritization” to a new crash program to return and develop the Moon as the human stepping-stone to the Solar System and deep space. The President’s own $1 trillion infrastructure investment plans will founder without creating a national credit institution for infrastructure and manufacturing, a “Hamiltonian” national bank.
Supporting the national drive for LaRouche’s “Four Laws, is the way to a political revolution to bring the United States into the new paradigm. The objective is to carry President Trump all the way to a central role in the Beijing Belt and Road Forum for International Cooperation, two months from now.
THE NEW GLOBAL ECONOMIC ORDER
March 19 (EIRNS)—Secretary of State Rex Tillerson met with Chinese President Xi Jinping today in the Great Hall of the People for about 20 minutes. Tillerson told Xi “President Trump places a very high value on the communications that have already occurred between yourself and President Trump, where there were very good exchanges to improve the understanding of China’s view of the relationship with the United States, and President Trump’s view, as well.” He expressed great appreciation for his exchanges with Foreign Minister Wang and Senior Councilor Yang. “We know that, through further dialogue, we will achieve a greater understanding that will lead to a strengthening of ties between China and the United States, and set the tone for our future relationship of cooperation.”
Tillerson also repeated the important signal phrase that he also used at his press conference with Foreign Minister Wang Yi, saying that “The U.S. side is ready to develop relations with China based on the principle of no conflict, no confrontation, mutual respect and win-win cooperation.” This is a formulation often repeated by Chinese officials with regard to the U.S.-China relationship, and Chinese scholars commenting on the visit have underlined the importance for the Chinese side of Tillerson’s use of that formulation.
President Xi said that cooperation was the only correct choice for both countries. “There are important development opportunities resulting from China-U.S. relations,” Xi said. “The two sides should grasp the general direction for the development of China-U.S. relations in an attitude that is responsible to history and future generations.” Xi noted the two positive discussions and the three letters he had sent to President Trump. “To advance China-U.S. ties in a healthy and steady manner, both sides could enhance exchanges at high level and various levels, expand cooperation in bilateral, regional and global fields, and properly address and manage sensitive issues… The two countries should also enhance coordination on regional hotspot issues, respect each other’s core interests and major concerns and encourage friendly exchanges between the two peoples,” Xi said. President Xi also invited President Trump to pay a visit to China. Tillerson also conveyed that President Trump is anticipating that the two will soon be able to meet face-to-face for discussions that will chart the course for future U.S.-China relations.
PARIS, March 18 (EIRNS)—The French Constitutional Council announced on March 18 the 11 Presidential candidates who had each received at least 500 duly validated “sponsorships” from elected officials throughout the country—and Jacques Cheminade is among them, after a hard-fought battle by his whole movement. According to the regulations, signatures must come from at least 30 different administrative départements (out of 101), and not more than 50 signatures from the same département, to ensure national representation.
After the court’s announcement this morning, Cheminade held a press conference to make his candidacy official and to present the three books he has written for the campaign. The attempt by the major parties to lock smaller candidates out of the Presidential election under the new law has failed, Cheminade began, saying: “I’m happy about that for the French people and for all those who succeeded in becoming candidates. Whoever the next President of France is, will not have a majority. Therefore I present a platform of ideas to fight for.”
The major planks of Cheminade’s campaign platform are:
Cheminade thanked the elected officials and the activists who made it possible for him to run and “to inject some truth and a fresh wind in France.” He called on all French citizens in this “dramatic period of history” to read his program more carefully than they ever had before, because “at a time when others are holding forth on the deck of the Titanic and throwing around figures that will be swept away by the impending crisis,” the votes that are called “useful,” because they are given to someone who has a good chance of winning, “must become votes of reason, responsibility, knowledge and passion.”
Cheminade concluded: “Je me bats pour une nouvelle Libération. Cette volonté politique de libération est notre culture française.” (“I’m fighting for a new Libération. This political will for liberation is our French culture.”)
U.S. POLITICAL AND ECONOMIC
March 19 (EIRNS)—Fox TV’s interview of U.S. House Intelligence Committee Chair Devin Nunes (R-CA) today, and two hearings scheduled in the Intelligence Committee in the next ten days on the “unmasking of names” and their “Russian connections,” appear to indicate that President Trump understands that the trail leads to British intelligence’s GCHQ as the agency deployed to attack his Administration’s openness to work with Russia.
As interviews with Intelligence experts (see separate reports) make clear, when GCHQ is asked by the NSA or CIA to do intercepts on the U.S. or other subjects, GCHQ may even use NSA facilities to do the interception. This is supposed to provide a thin deniability for both sides.
Representative Nunes, appearing on Fox TV this morning, said that the House Intelligence Committee will hold a hearing Monday to get to the bottom of the “unmasking” and intelligence leaks of conversations of Cabinet officials such as Lt. Gen. Michael Flynn, whom Trump appointed as his National Security Adviser, only to have the nomination torpedoed by reports that he had conversations with Russia’s ambassador to the United States, Sergey Kislyak, picked up by an intercept.
Representatives Nunes repeated several times, “Names [of Americans associated with Trump] were unmasked; the leaking of the names; we know there was a lot of surveillance, and leaking of names, as happened with Flynn.”
Host Chris Wallace posed to Nunes, “You got FBI responses this week on wiretapping; that there was no evidence of President Obama wiretapping Trump in Trump Tower. You are concerned that other surveillance activities were used, such as unmasking names … Flynn’s name.” Nunes agreed, “There never was a physical wiretap of Trump Tower, but names were unmasked. Our concern is that they were using surveillance activities to leak and unmask people, as happened with General Flynn, and it was leaked to the press.”
Fox then cut to President Trump saying, “I think you are going to find some very interesting items coming to the forefront in the next two weeks.” Nunes commented, “If he is talking about any evidence of surveillance, and unmasking names, we had a deadline of Friday [March 17] for the NSA, FBI, and CIA to get us those names [which were] unmasked through the FISA system. We didn’t get those names on Friday. Until we get those names, we can’t rule it out.” FBI Director Comey and NSA Director Mike Rogers are to testify to Nunes House Committee on March 20.
Fox’s Wallace said that when Flynn’s conversations with Kislyak were intercepted, the subsequent leaking of Flynn’s name through the FISA system was a crime. He asked if Nunes thought others were swept up because they talked to Kislyak, and Nunes agreed: “You are right—that is the one crime committed that we are trying to get to the bottom of…. What happened to Flynn is very concerning. Flynn was a U.S. citizen … talking to an ambassador. We should not go after people talking to diplomats. I probably talk to a dozen diplomats a week.”
Wallace: As Chair of the House Intelligence Committee, have you seen evidence of collusion between what I will call “Trump World” and Russia to swing the 2016 election?
Nunes: I will give you a very simple answer: No.
Wallace: Do you believe elements of intelligence are leaking to undercut the Trump Presidency?
Nunes: It’s pretty clear that’s happening…. People who were there who had classified information are no longer there.
On his March 20 hearing, Nunes concluded, “We’re just beginning. On March 28, we will have another hearing with at least three more witnesses, trying to get at the crime scene—what they know, when they knew about leaks.”
March 19 (EIRNS)—Former CIA analyst Larry Johnson told radio host Alex Jones in a March 17 interview that CIA chief John Brennan tried to derail President Trump’s candidacy by collusion with British intelligence’s GCHQ; and disseminated British intelligence passed to him. “Donald Trump is correct that intelligence agencies and the FBI were able to illegally access and monitor his communications with his aides, in an effort to destroy his Presidential campaign,” Johnson told Alex Jones.
Johnson said NSA chief Admiral Rogers went to Trump Tower after the election to “cover” himself. (Afterward, Director of National Intelligence James Clapper called for him to be fired.) Rogers explained he did that, because as National Security Agency chief, he was aware that the NSA’s authority was misused with regard to Trump. President Trump tweeted to get the word out, said Johnson, “Trump and others called it ‘wiretapped,’ but it just means an ‘intercept’ by various capabilities. People like Thomas Drake, Dr. William Binney (winner of the Sam Adams Award for Integrity in Intelligence), and other ‘whistleblowers’ know that ‘wiretapped’ means all surveillance.”
“What should alarm everybody,” said Johnson, “is that four leaders, the DNI, the CIA, directly interfering in domestic policies—these intelligence officials at the top, Brennan, and GCHQ.” Johnson said, “It is illegal to collect [information] on American citizens, but not illegal for the U.S. to collect on British citizens, and vice versa. We’re foreigners, so the British can collect on us, and did, under Obama.”
Both Brennan and Clapper had previously lied under oath before Congress, said Johnson. Brennan “lied about spying on the Senate—[and] there was no sanction, which sends a message to the rank-and-file. The New York Times on March 1 reported that American allies, including the British and the Dutch, provided intelligence on Trump people and Russians meeting in European cities—human intelligence, or an intercept of electronic surveillance. The media invented a narrative.
COLLAPSING WESTERN FINANCIAL SYSTEM
March 19 (EIRNS)—According to a report from a Congressional Republican staffer, the bank regulation proposal “made this week by the FDIC” (i.e., by FDIC vice-chair Thomas Hoenig March 14) has quickly gained some GOP support. As a “repeal and replace Dodd-Frank,” Hoenig’s ring fencing-modelled proposal for bank separation has appeal, especially among conservatives.
But this simply poses the question of Glass-Steagall to these and other Representatives. Hoenig proposed that bank holding companies be compelled to separate their securities units from their commercial banking units, capitalize and manage them separately, and lose any FDIC insurance or other Federal “safety net” protection for those securities units. He also proposed that a tangible capital ratio of 10% of all assets, including derivatives, be imposed on all banks in the Federal Reserve System.
But only 10 years ago, as the biggest Wall Street banks and financial firms began to enter a crash, events showed that this regulation strategy does not work. The biggest holding companies had gone from typically 100-200 subsidiaries in 1995, to the range of 2,500-3,500 subsidiaries each. Hundreds and hundreds were simply “special purpose vehicles” for securitization of debt instruments, many of them nothing but bundles of derivatives, “synthetic derivatives,” etc.
These vehicles were, in fact, separately capitalized, partly because the big holding companies wanted to hide them “off the balance sheet” of the commercial bank—“the Enron method.” But when a few, first of Bear Stearns and then of Citigroup, started failing, in short order all were going to fail by contagion; and since they were all the same kinds of toxic junk, no amount of capitalization was enough once the crisis hit. Then the irresistible urge took over at the main holding companies, to take these units back “on-balance-sheet” and save them—with insured deposit funds. And then the banks themselves had to be bailed out by the trillions by the Treasury, Fed, and FDIC.
Glass-Steagall makes the separation total and irreversible, and in a crisis, lets all the speculative units fail. That’s the point. The commercial banking system is protected, and national credit can fund economic recovery and development, not be thrown away by trillions on banks’ bad bets.
STRATEGIC WAR DANGER
March 18 (EIRNS)—The U.S. Department of Defense was presenting aerial photos yesterday, urgently to defend itself against claims that a March 16 U.S. air strike in western Aleppo province, in a section of the province still controlled by jihadi groups, killed dozens of worshippers (up to 70 by some accounts) in a mosque, instead of dozens of al-Qaeda leaders discussing future strategy during a meeting in a nearby building.
Defense of the U.S. military in the controversy came from an unexpected quarter: Russian Foreign Ministry spokeswoman Maria Zakharova. “Deep down, we have no doubt that the U.S. military was targeting terrorists,” she said in a statement published on the ministry website, yesterday. “Unlike some of our opponents, we are not going to come up with accusations of a ‘targeted’ killing of civilians and the destruction of civilian infrastructure.”
But Zakharova also said that if the large number of civilians killed were to be verified, then “this, we believe, should constitute a compelling reason to establish closer coordination between all those involved in fighting international terrorists in Syria.” Such coordination “could significantly improve the accuracy of targeting, as well as avoid actions, the expediency of which is militarily dubious, such as, in particular, the bombing by the coalition of the Euphrates River dams or oil production facilities,” she said.
SCIENCE AND INFRASTRUCTURE
March 19 (EIRNS)—New York Gov. Andrew Cuomo’s move to close the Indian Point nuclear power plant, the bedrock of New York State’s electrical power for decades, is an irrational action which should be reversed as a national example of commitment to power technologies of the future.
The operator of the Indian Point complex, Exelon agreed with Cuomo to close it by 2021, purely on grounds of current price and profitability. Indian Point has reliably supplied 2,000 MW of clean, non-emitting baseload power, operating well over 90% of the time for the last 15 years continuously. Its reactors generate 25% of the electricity used in New York City and 10% of New York State’s supply.
Not only did a 2015 study conclude that “closing the plant will be like adding 1.6 million cars to New York’s roads” because of emissions from replacement gas turbine power plants. Exelon is agreeing to close the plant solely because of the extraordinarily low natural gas prices of the past decade, which in turn result from the environmentally damaging and inefficient hydraulic fracturing “fracking revolution.” Natural gas prices, which were in the range of $7-9/million btu for decades before 2005 and occasionally spiked up to $15-16/mbtu, plunged by 75% after that date and reached an extreme low of $1.48/mbtu in March 2016.
The extreme cheapness of natural gas has been the basic driver of wind and solar nationally, since all wind and solar “baseload” capacity has to be backed up by non-intermittent power, and that is almost always natural gas.
Natural gas electric power turbines are quick to build and have low capital costs, “environmentalists” like Barack Obama having ignored any environmental considerations of them. But they need very frequent downtime and reconditioning, compared with the reliable 95% online operation of nuclear plants. And natural gas has risen to $2.90/mbtu this March, double one year ago. If this continues, the whole (Obama) national strategy of replacing nuclear and coal backfires.
The “Advanced Nuclear Power Development Act,” passed in January and signed by President Trump, simplifies and accelerates the design and permitting processes for fourth-generation advanced nuclear power plants, and for fusion power demonstration plants. It does not provide any funds, but the Nuclear Regulatory Commission has already completed new design regulations for fourth-generation fission.
March 18 (EIRNS)—“The atmosphere could hardly have been more uneasy between Chancellor Angela Merkel und U.S. President Donald Trump during her visit to the White House. No handshake for the cameras, next to no eye contact, strained faces for both of them. Not only is there no chemistry between them, but it is obvious that in the current trans-Atlantic geometry, no solution for the tensions can be found. There is nonetheless, a way out in sight, but it can only be found on a totally different, higher level: the win-win cooperation with China and the New Silk Road, which the United States and Germany have both been invited to join.”
Such is the opening observation of Helga Zepp-LaRouche in an analysis for the German weekly Neue Solidarität written on March 18, one day after the German Chancellor met with the U.S. President. Mrs. Zepp-LaRouche heads the German political party Civil Rights Movement Solidarity, Bürgerrechtsbewegung Solidarität (BüSo), and founded the Schiller Institute internationally.
Zepp-LaRouche continues: “Given the fact that Trump’s election meant the defeat of the neo-liberal, neo-conservative policy of Hillary Clinton, whom he called ‘America’s Angela Merkel’; and that Merkel was considered ‘Obama’s closest ally’; it was not to be expected that the two of them would be on the same wavelength. Thus, the New York Times headlined its coverage ‘Merkel Meets Trump, the Defender Versus the Disrupter.’ When, during the joint press conference, a correspondent of Die Welt attempted to provoke Trump by bringing up the charges that the British intelligence agency GCHQ had wiretapped him for the Obama Administration, Trump turned to Merkel and commented with humor: ‘at least we have something in common.’ Trump got the laughs for that, while Mrs. Merkel could hardly muster a smile.”
Similar divergences also surfaced, Helga Zepp-LaRouche went on, at the G20 Finance Ministers meeting in Baden-Baden, where they were unable to agree on formulations about “protectionism” and “fair trade.”
Much more promising, however, in Helga Zepp-LaRouche’s view, is the dynamic created by China’s diplomatic initiatives to prepare for the May 14-15 Belt and Road Forum summit in Beijing.