EIR Daily Alert Service

MONDAY, JUNE 12, 2017

Volume 4, Number 115

EIR Daily Alert Service

P.O. BOX 17390, WASHINGTON, DC 20041-0390

Coup Attempt against Trump Faltering, as Americans Begin To See a

Future Once Again

Grassley Response: Go After the British; The Fish Stinks from the

Head

New York Post: Comey Worse than J. Edgar Hoover—He’s Part of the

Coup

Comey Claims He Doesn’t Have His Own Memo; Committee Insist

His Friend Hand It Over

Oliver Stone on His Interview with Putin, Which Begins Monday

Night on Showtime

Russian General Rudskoy: Civil War In Syria Has Stopped

Trump Spoke at U.S. Infrastructure-Building Roads and Rails Event,

Focused on Regulatory Relief

New Broadsides for Glass-Steagall Published

Putin Urges Shanghai Cooperation Organization To Expand, Link

with EAEU, ASEAN, and BRI

The Asia-Latin America Trans-Pacific Cable Integral to the Belt and

Road

India’s Modi and China’s Xi Meet on the Sidelines of the SCO

Summit

Theresa May Hanging by a Thread

MONDAY, JUNE 12, 2017

EDITORIAL

Coup Attempt against Trump Faltering, as Americans Begin To See a

Future Once Again

June 11 (EIRNS)—When FDR died before the end of the war, Lyndon

LaRouche despaired that a great man had passed, and warned that a very

little man was taking over.

Looking back on 1945 from today’s perspective, do Americans

recognize that the United States won the war based on FDR’s defeat of the

British bankers on Wall Street, by restoring the American System of credit

for development, not for speculation, through the Glass-Steagall

legislation? Do they recognize that the “arsenal of democracy” which

defeated fascism was possible only because FDR had created the greatest

infrastructure boom in all of history, in a few short years, giving the U.S. an

overwhelming advantage in production and logistics? Do they recognize

that Roosevelt’s collaboration with China and Russia (the U.S.S.R. at that

time) was indispensable in saving the world from fascism? Or do they

believe the myth that the war was won by Truman’s incineration of

Japanese civilians, and that the Cold War was necessary to save the world

from “Godless Communism”?

These questions are crucial for today. After 16 years of austerity,

permanent colonial warfare (“regime change”), and cultural degeneration

under Bush, Cheney and Obama, Americans were threatened with death by

pessimism and despair, by economic decay, and the cultural degradation of

their human dignity.

But the world has now changed. The New Silk Road, since being

declared by Xi Jinping in 2013, in a few short years, just as FDR had done

within the U.S., has set nearly the entire world on a course of vast

infrastructure development, lifting the platform of human productivity

worldwide, and demonstrating that poverty can indeed be eliminated,

throughout the globe, as the Chinese have nearly done within their own

nation. China and Russia are uniting the nations of Eurasia behind this great

MONDAY, JUNE 12, 2017

enterprise, and reaching out to all of Asia, Africa and the Americas to join

in.

And now in the United States, a President has emerged who rejects the

Imperial divide of the world, who rejects regime change, and who promotes

friendship and collaboration with Russia and China, both to defeat

terrorism, and to cooperate in the Belt and Road Initiative to meet the

common aims of Mankind.

The Empire has responded with a vengeance. Using every resource at

their disposal—war-mongering neocons from both the Republican and

Democratic parties, the putrid whores of the mainstream media, and the

British operatives in the Bush and Obama intelligence communities—an

effort was made to demonize Putin, claim Russia stole the election, and that

Trump was a tool of Moscow. Trump was to be destroyed at all costs—a

“color revolution” against our own nation. Leading the effort were the well

known liars and traitors who led Obama’s intelligence agencies: John

Brennan, James Clapper and James Comey.

As the New York Post’s Michael Goodwin pointed out Saturday: “J.

Edgar Hoover kept his job because five Presidents were afraid to fire him.

His insurance was the dirt he secretly collected on them. Comey is cut from

the same cloth, but Trump wasn’t afraid to fire him.”

Now reality is setting in among the American people. Comey’s lies

stand exposed. Trump refuses to back down to the war-mongers’ lies about

Russia and/or China.

The question that remains: Will the American people revive the outlook

of our Founding Fathers, of Franklin Roosevelt, of John F. Kennedy, by

looking back at today from the future? Will New Yorkers adopt a vision of

the city with high-speed rail connections in all directions, with maglev

trains replacing the sweaty, noisy collapsing subway system? Will

Americans dare to believe that the nation can be transformed in just a few

short years, as FDR did, as the Chinese have done today?

MONDAY, JUNE 12, 2017

Over the next few weeks, the Manhattan Project will be co-sponsoring a

series of events that provide the creative ammunition needed to answer that

question in the affirmative. The co-sponsor, the Foundation for the Revival

of Classical Culture has the invitation to the June 29 Carnegie Hall event

honoring Sylvia Olden Lee, which will be followed by a seminar on

classical tuning and vocal placement. Further events with the Schiller

Institute and its Chinese friends and others from around the world will

follow shortly, continuing to provide direction to the revolutionary changes

sweeping the nation and the world.

U.S. POLITICAL AND ECONOMIC

Grassley Response: Go After the British; The Fish Stinks from the

Head

June 9 (EIRNS)—The Hill reported June 9 that Sen. Chuck Grassley (RIA)

has had the appropriate response to the ongoing coup against Trump,

whose leading spokesman was James Comey. Grassley has sent Glenn

Simpson, who heads Fusion GPS, a letter stating that if the firm does not

respond voluntarily to his prior requests for information about the dodgy

British dossier by MI6 agent Christopher Steele, he will subpoena the

information under Senate rules. Christopher Steele prepared his dodgy

dossiers under the auspices of Fusion GPS, a Washington D.C. opposition

research firm working at the time for the Clinton campaign. Steele was the

former head of British Intelligence’s Russia desk, and still collaborates with

the highest levels of the Queen’s Secret Service, as well as the FBI.

Grassley has asked about who paid Steele, and what the relationship was

between Fusion GPS, Steele, and Comey’s FBI. Fusion has thrown up a

score of privileges in an attempt to block Grassley’s inquiry. Comey had

also blocked similar inquiries by Grassley.

As Comey testified June 8, on January 6th Comey presented the

President with the Steele dossier in a one-to-one meeting, having cleared

the nation’s other intelligence chiefs out of the room. The dossier contains

salacious allegations of sexual misconduct by Trump with Russian hookers.

MONDAY, JUNE 12, 2017

As opposed to Comey’s general rationale for this meeting, he blurted out in

his Senate testimony that it could be construed as ‘a J. Edgar Hoover

moment’; i.e., he was attempting to blackmail the President into

acquiescing to the elite’s continuing warfare against Russia. The British

intelligence product has otherwise served as the FBI’s roadmap for its

entire phony counterintelligence investigation involving Russian meddling

in the U.S. elections.

New York Post: Comey Worse than J. Edgar Hoover—He’s Part of the

Coup

June 11 (EIRNS)—Michael Goodwin of the New York Post, who coined

the term “J. Edgar Comey” (even before Comey himself admitted to doing

the same thing Hoover did regularly in blackmailing people with threats to

release material, whether true or false) wrote June 10 that “My descriptions

of the former FBI boss as J. Edgar Comey are accurate but incomplete,” in

that he is also at the center of the move to remove Trump from office.

“He admitted to the Senate he leaked just one memo criticizing Trump

over the Gen. Michael Flynn case, asking a friend to give it to the New York

Times,” Goodwin writes. “But that was not the first leak, for the Times had

reported five days earlier on a separate, personal Comey memo attacking

Trump for demanding loyalty, calling its anonymous sources ‘Mr. Comey’s

associates.’ Wait, that wasn’t the first leak, either. On March 5, one day

after Trump accused President Barack Obama of wiretapping him at Trump

Tower, the Times reported that Comey was furious at the charge. Its

unnamed sources were senior American officials. All three stories carried

the byline of Michael Schmidt, as did others describing intimate details of

Comey’s dealings with Trump.”

His conclusion: “In calling Comey a leaker, Trump may have made the

first understatement of his life. My bet is that Comey was a fountain of

leaks, and didn’t show interest in prosecuting others because of his own

guilt.”

MONDAY, JUNE 12, 2017

Trump tweeted this morning along the same lines: “I believe James

Comey leaks will be far more prevalent than anyone ever thought possible.

Totally illegal? Very ‘cowardly’!”

Comey Claims He Doesn’t Have His Own Memo; Committee Insist

His Friend Hand It Over

June 10 (EIRNS)—The chairs and ranking members of the Senate Judiciary

Committee and its National Security Subcommittee issued a letter on

Thursday, June 8 to the “close friend” of James Comey, Columbia Law

Professor Daniel Richman, demanding that he turn over the memo Comey

gave him with instructions that he leak it to the press—a significant piece in

the ongoing coup attempt against the President of the United States. In the

letter, Chuck Grassley, Dianne Feinstein, Lindsey Graham, and Sheldon

Whitehouse report that Comey told the Congress June 8 that he did not

keep a copy of the memo—in incredible lie which Helga Zepp-LaRouche

declared to be “the biggest fairy tale I’ve ever heard.”

The letter also demands all other memoranda Comey may have provided

Richman and gave him only until midnight Friday to turn it all over.

It is not known if Richman complied as of Friday night, but the New

York Post reported that Richman “confirmed by e-mail to several reporters

that he was the good friend and law-school prof who Comey slipped the

documents to, then hightailed it out of his tiny Brooklyn Heights home and

refused to answer any more questions.”

Oliver Stone on His Interview with Putin, Which Begins Monday Night

on Showtime

June 11 (EIRNS)—Oliver Stone’s four-part interview documentary,

showing Monday-Thursday this week on Showtime, was compiled from 19

hours of interviews over several months, the last being in February. Stone

said of the interviews: “I’m here to get Putin to talk. Let him talk. If I can

encourage him to talk by having an empathetic ear, that is the reporter’s

way. I’m also a dramatist. I’m encouraging my actors to be better. To say

more. To give me a performance….

MONDAY, JUNE 12, 2017

“I think I challenged him. You may think I was a pussycat, but no, I

think I challenged him.” He said that Putin’s work ethic was a distinctive

feature. “I admire his discipline. His ability to do this off and on for 16

years. His stamina, the way he works. No American President works these

hours as far as I know. He reminds me of Jimmy Carter in that sense,

dedication to work.”

He described Putin as humble. Asked if he plans to make a feature film

on Putin, Stone replied, “I don’t think I would have the guts. Sometimes,

after seeing the real thing, I’m not sure what else I can express.”

STRATEGIC WAR DANGER

Russian General Rudskoy: Civil War In Syria Has Stopped

June 10 (EIRNS)—Lt. Gen. Sergei Rudskoy, the chief of the Main

Operational Directorate of the Russian General Staff, told reporters at the

Defense Ministry in Moscow that the situation in Syria significantly

improved after the signing of the Astana memorandum on setting up deescalation

zones. “In fact, the civil war in Syria has stopped,” he asserted.

“Schools are being renovated so that children could resume their studies. In

just one month, international organizations sent a total of 14 humanitarian

convoys, which made life much easier for the locals.”

Hours later, at the Pentagon in Washington, D.C., spokesman Capt. Jeff

Davis thanked the Russians for cooling things down around al-Tanf, Syria.

“We asked the Russians to help,” and the Russians have been “very

helpful” in limiting clashes between the partnered force at the border town

of al-Tanf and forces of the government of Syrian President Bashar al-

Assad backed by Hezbollah fighters. Davis said the border area was fairly

calm June 9 as opposed to June 8, when a U.S. F-15 shot down a large

unmanned aerial vehicle, or drone, that had dropped a munition on an area

controlled by the U.S.-backed force.

Reuters reported, yesterday, citing anonymous U.S. and regional

officials, that the U.S. and Russia are negotiating a “de-escalation zone” in

MONDAY, JUNE 12, 2017

southwestern Syria, one which would exclude Iranian participation. The

Russian and U.S. special envoys for Syria, Alexander Lavrentiev and

Michael Ratney, and other officials have met at least twice in the Jordanian

capital Amman in the past two weeks and will talk again soon, these

officials said. The proposed de-escalation zone would include the provinces

of Deraa, which borders Jordan, and Quneitra, which borders the Israelioccupied

Golan Heights. “The two sides are in the process of drafting its

borders … and which outside forces will be on the ground. But there are

many flaws on how to implement it,” an unnamed regional intelligence

official told Reuters.

COLLAPSING WESTERN FINANCIAL SYSTEM

Trump Spoke at U.S. Infrastructure-Building Roads and Rails Event,

Focused on Regulatory Relief

June 9 (EIRNS)—Friday morning at the Department of Transportation,

President Donald Trump spoke at the Roads, Rails, and Regulatory Relief

Roundtable, reiterating his commitment to building U.S. infrastructure. He

announced that a new council will be formed to assist project managers to

get through the process, and a new office will be created to prevent

outdated Federal rules from holding things up. He displayed a 70-lb, threebinder

environmental report that was done for an 18-mile road project in

Maryland. The $29 million report worked out to $24,000 a page.

Trump’s activities today top off his announced “infrastructure week” of

meetings and initiatives. On Wednesday, he spoke at the Ohio River in

Cincinnati, highlighting the need to rebuild the 12,000 mile waterway

system, and other goals, which today, he referred to as, “roads, rails,

runways and rivers.”

A letter of support for Trump on this was sent this week by four Ohio

Democrats, Representatives Marcy Kaptur, Tim Ryan, and Marcia Fudge,

and Joyce Beatty. They commended Trump’s efforts to invest in American

infrastructure, and his visit to Ohio to highlight the needs, and stressed

many areas needing work. They cited aged city water systems needing

MONDAY, JUNE 12, 2017

modernization and that the electric grid needs upgraded. They asked for

improvements to the Great Lakes locks, dams, harbors and ship channel,

including the St. Lawrence Seaway. In particular, finishing the Sault Ste.

Marie Locks upgrade in Michigan’s Upper Peninsula is critical. They see

expanding infrastructure as the way to “revitalize the domestic steel

industry, a foundational economic sector.”

Trump did not give further details this week on financing the

infrastructure program, beyond his existing plan of the Federal government

outlay of $200 billion, which then is to result in a $1 trillion dollar

program, by local and state governments being involved, and private

investors joining in.

New Broadsides for Glass-Steagall Published

June 9 (EIRNS)—“President Trump: Do You Want Glass- Steagall or

Another Economic Meltdown?” is the title of a comprehensive open letter

to the President by author and former investment banker Nomi Prins, which

she posted June 8 to TomDispatch.com, and was reposted to TruthOut and

other widely-read sites. Prins has met with many Members of Congress and

staff for Glass-Steagall since April, and will continue doing so. The House

passage of the so-called “Financial CHOICE” bank deregulation bill,

because it will not move in the Senate, has not ended by only intensified the

debate involving Glass-Steagall reinstatement.

Prins’ letter to the President includes a thorough history of the Glass-

Steagall Act’s passage and long success, and details how “For the first time

since its repeal, a return to the Glass-Steagall Act [has] bipartisan support.”

But “The division and the as-yet unresolved nature of the Trump

administration response to the Glass-Steagall question could, in the face of

another financial crisis, come back to haunt us all, if it translates into more

bailouts and systemic failures.”

Showing the 2007-08 financial panic a direct consequence of the

elimination of Glass-Steagall, Prins writes: “In the fall of 2007, that system

finally started buckling because of the problems of Citigroup, not because

of the investment banks, which would not have been covered by GlassMONDAY,

JUNE 12, 2017

Steagall. The catastrophe that hit Citigroup makes it clear just how crucial

the repeal of that act was to the financial meltdown to come…. And

Citigroup wasn’t alone. Federal Reserve Chairman Ben Bernanke would

later testify that, by 2008, 11 out of the 12 biggest commercial banks were

‘insolvent’ and had to be bailed out. The entire banking system was rotten

to the core and the massive buildup of bad paper, high leverage, and

speculative bets (derivatives) that made disaster inevitable can be traced

directly back to the repeal of Glass-Steagall.

“Today, a fresh bubble is inflating. This time, it’s not U.S. subprime

mortgages at the heart of a budding banking crisis, but $51 trillion in

corporate debt in the form of bonds, loans, and related derivatives. The

credit ratings agency S&P Global Ratings has predicted that such debt

could rise to $75 trillion by 2020 and the defaults on it are starting to

increase in pace. Banks have profited by the short-term creation and trading

of this corporate debt, propagating even greater risk. Should that bubble

burst, it could make the subprime mortgage bubble of 2007 look like a

relatively small-scale event.”

In another broadside, former Reagan Administration Assistant Treasury

Secretary Paul Craig Roberts writes today, “Without Glass-Steagall

America Will Fail.” Roberts notes, “What we can say about the repeal of

Glass-Steagall is that it turned a somewhat egalitarian democracy with a

large middle class into the One Percent vs. the 99 percent. The repeal

resulted in the destruction of the United States as an open, prosperous

society. The electorate is very much aware of the decline in their economic

situation, and this awareness expressed itself in the last presidential

election.” And further, “the repeal of Glass-Steagall forced the 99 percent

to bail out the One Percent.”

“The question before Congress today,” Roberts writes, “is whether they

will take the country down for the sake of campaign contributions … or will

they take personal risks to save the country.”

MONDAY, JUNE 12, 2017

THE NEW GLOBAL ECONOMIC ORDER

Putin Urges Shanghai Cooperation Organization To Expand, Link

with EAEU, ASEAN, and BRI

June 10 (EIRNS)—Putin gave two speeches to the heads of state and

government the Shanghai Cooperation Organization (SCO) conference in

Astana Friday. In both, he began by welcoming India and Pakistan, which

became official SCO members, and saying that there are other countries

that wish to join and will be discussed.

“It is obvious that terrorism is the main threat for the SCO states,” Putin

told the restricted format meeting. “We keep saying that it is important to

join efforts of the entire international community to combat this evil…. We

have not yet managed to establish a fruitful, equal and constructive

interaction with our other partners outside the SCO. We see what is going

on in Syria, Iraq, Afghanistan, and in the Middle East in general. I must say

that the domestic political environment in the United States does not help

bringing this interaction to a productive, system-wide level.”

He described Afghanistan as “the most serious source of threats to the

security of the Shanghai Cooperation Organization region.” The U.S. and

NATO have been at war in Afghanistan for 15 years, but “the country

keeps degrading.”

In this regard, Putin proposed reviving the SCO-Afghanistan Contact

Group, which was suspended in 2009. “Let’s think about using the SCO

platform to facilitate the dialogue between the Kabul government and the

opposition groups. I think our foreign ministries should be instructed to

develop concrete steps in this direction.”

In his later speech, the Russian President described China’s Belt and

Road Forum as a great success, and said: “Our goal is to combine the

potentials of the EAEU, the SCO, the Association of Southeast Asian

Nations, and China’s One Belt, One Road Initiative. These plans will be

discussed at the annual Eastern Economic Forum in Vladivostok in

September.”

MONDAY, JUNE 12, 2017

The Asia-Latin America Trans-Pacific Cable Integral to the Belt and

Road

June 9 (EIRNS)—China and Chile have launched plans to build the great

Asia-Latin America Trans-Pacific Cable, an underwater fiber optic cable to

connect the two countries which, as described by Cronica Digital today, is

seen as “a takeoff point within the philosophy of the Belt and Road

conference” last month in Beijing.

A Memorandum of Understanding for the project was signed last

November, and Chile’s President Michelle Bachelet finalized details on it

during her recent state visit to China. According to Chile’s Deputy Minister

of Telecommunications Rodrigo Rodriguez, “Chile could be on the road to

creating the greatest connectivity hub in Latin America and the Caribbean,”

and serve as the “digital gateway” for China to the rest of the region. Prefeasibility

studies have just been completed, and final engineering and

technical feasibility studies are expected to be completed sometime in

2018. The estimated cost of the project is $550-$650 million, involving

between 20,000 and 24,000 km of cable.

There are three routes under discussion, all of which involve Shanghai

on the Chinese side, with different end-points in Chile. One route would

connect to the city of Valparaiso, and the two other routes would connect to

the far-southern city of Punta Arenas, but with different points in between.

A final decision on the route will be made later this year.

Chile has also launched a plan to provide a fiber optic cable network for

the very southern part of the country, where communications capabilities

are quite poor. The final bidding process for the Southern Fiber Optic

project will conclude in January 2018, and when it is completed in two

years it will have fully integrated Chile digitally from North to South.

Rodriguez points out that the new system will be a great benefit for

scientists working in Antarctica, as well.

India’s Modi and China’s Xi Meet on the Sidelines of the SCO Summit

June 9 (EIRNS)—The 17th Meeting of the Council of Heads of State of the

Shanghai Cooperation Organization (SCO) took place in Astana,

MONDAY, JUNE 12, 2017

Kazakhstan June 8-9, and culminated with the admission of India and

Pakistan as new members of the group—the first expansion of the SCO

since its inception in 2001. China will assume the rotating presidency of the

SCO for the coming year.

In addition issuing to a final communiqué and ten other documents, the

two-day gathering saw a number of bilateral meetings on the sidelines

which were of strategic importance. Russian President Vladimir Putin and

Chinese President Xi Jinping of course met, as expected, but there was also

a meeting between the Chinese President and Indian Prime Minister

Narendra Modi, which had remained unconfirmed until the last minute.

There are numerous points of tension between the two countries, which had

led the Modi government to foolishly boycott the May 14-15 Belt and Road

Forum for International Cooperation in Beijing. As Helga Zepp-LaRouche

explained at the time, the BRF and its global infrastructure development

activity is precisely the context—and the only context—in which such

pending geopolitical issues among nations can be successfully addressed. It

is noteworthy that, in his speech to the SCO summit, Xi Jinping announced

“China’s proposal for the SCO to draw up a five-year outline for

implementation of the Treaty on Long-Term Good Neighborliness,

Friendship and Cooperation.”

The Times of India reported that at their bilateral meeting, Modi thanked

Xi for China’s support of India’s membership in the SCO: “I got the

opportunity to meet you again during the SCO summit. I am grateful to you

for your efforts and support for India’s SCO membership.” Modi later

tweeted: “We spoke about India-China relations and how to further

improve ties.” Xi for his part emphasized that the two countries should

work to “appropriately” manage their differences: “There was also an

understanding that where we have differences, it was important that

differences should not become disputes, and in fact, if they were handled

well, could even become opportunities.”

This was the first meeting between Modi and Xi meeting this year. The

Times of India reported that they are expected to meet again in early July at

MONDAY, JUNE 12, 2017

the G20 meeting in Hamburg, Germany, and at the September 2017 BRICS

summit in Xiamen, China.

OTHER

Theresa May Hanging by a Thread

June 10 (EIRNS)—British Prime Minister Theresa May is desperately

trying to keep her job after the humiliating defeat for the Tories in the snap

election, where they lost their majority. She threw her two co-chiefs of

staff, Fiona Hill and Nick Timothy, to the wolves Saturday morning, trying

to dump the blame on them and avoid having to resign herself, as is being

widely demanded. (Note that her resignation would simply mean another

Tory, perhaps one as sick as Foreign Secretary Boris Johnson, taking over.)

She also deployed her chief whip, Gavin Williamson, to Belfast, to work

out a cooperation deal with the Democratic Union Party (DUP), Ian

Paisley’s creation, called a “confidence and supply” agreement, whereby

the 10 DUP Members of Parliament agree to vote with the government but

are not part of it.

If this effort succeeds, matters would be even worse for Northern

Ireland. The Daily Mail reports that Jonathan Powell, who helped negotiate

the 1998 Good Friday Agreement, warned yesterday: “Even John Major

didn’t resort to relying on DUP…. This could undo 20 years of work in

Northern Ireland.”

Under the Good Friday Agreement, the government in London is

supposed to be the “fair broker” between the unionists and the nationalists

led by Sinn Fein. The government can hardly be a fair broker if the DUP is

part of the government itself.

Sinn Fein leader Gerry Adams spoke out against the deal: “History will

show, alliances between Ulster unionism and British unionism has always

ended in tears,” he said. “It is far better to look to our own place, to all of

the people here, to deal with the people of this island, this part of the island

as one community.”

 

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