EIR Daily Alert Service

MONDAY, JUNE 5, 2017

Volume 4, Number 110

EIR Daily Alert Service

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

EDITORIAL

A New, Successful Economic System Has Been Created; America Must Change To Join It

June 4 (EIRNS)—The Paris “Climate Agreement” from which President Donald Trump has withdrawn the United States, is not the “world order,” however much major media in the United States and Europe want everyone to bow down before it. Life without carbon is not the way forward for humanity or the planet. Human life moving rapidly out into the Solar System, is.

The really successful new world order being consolidated is an economic and scientific cooperation system: the New Silk Road. This is the accelerating investments and design of transformative new infrastructure projects and scientific advances, being knitted together at China’s initiative, all across Eurasia, Africa, and planned in South America as well. “The Marshall Plan times 20,” some call it. It is an order more and more actively supported by Russia and other major nations, as well as many others, because it is actually triggering economic progress, productivity, new employment, to the mutual benefit of all nations participating. As the “Silk Road Lady,” Schiller Institute founder Helga Zepp-LaRouche says, it is becoming the World Land-Bridge. Thus it is open to the United States to join, rebuilding but also greatly expanding and modernizing its own economic infrastructure and industry.

President Trump is absolutely right in his intention that the United States cooperate fully with China and Russia. And in his intention that the United States should again become a great industrial power, a great scientific and technological power, a great space exploration power collaborating with the other space-faring nations.

“These are intentions—what are his results?” say the commentators. That question should be directed to the American people. China are other Eurasian powers are building high-speed and mag-lev metro systems, exploring the Moon including its far side, planning for Mars, planning finally to span Africa and South America with high-speed rail and power networks, building small mobile floating nuclear plants….

Do Americans, dealing with public infrastructure breakdown, economic despair, and opioid epidemics, believe that these things can be done? That is the real question regarding President Trump’s intentions, and results.

It is the American people who have to get Glass-Steagall through Congress to stop Wall Street’s strangling the U.S. economy. The American people have to demand “American System economics”; immediately a national bank for infrastructure. More Americans are trying to become NASA astronauts than ever before. But it is the American people who have to demand a rapidly expanded space exploration program and new technologies around fusion energy.

America must join the New Silk Road. President Trump has an intention—forget his results thus far—this is for the American people to do if they want the United States to be great again.

THE NEW GLOBAL ECONOMIC ORDER

Hungary’s Orban: We’re Witnessing the Rise of a New World Order

June 3 (EIRNS)—Distancing himself and his country from the general EU skepticism against China, Hungarian Prime Minister Viktor Orban recalled that Hungary was the first European country to commit itself to the New Silk Road, which signed a cooperation treaty with China already in 2015. Reviewing the May 14-15 Beijing Belt and Road Forum for International Cooperation, Orban said that participants there were witnesses to the emergence of a new world order. “The old model of globalization is approaching its end, the East has become equal with the West, and an enormous part of the world is fed up with being lectured by the Western industrial nations about human rights and market economy rules.”

Spain Greatly Interested in Belt and Road at Madrid Forum

June 3 (EIRNS)—Spain is willing to expand cooperation with China under the Belt and Road Initiative (BRI), especially in infrastructure, Spanish State Secretary for Commerce Marisa Poncela said June 1 at the Madrid forum, “Business Opportunities for Spanish Companies under the Belt and Road Initiative.”

The BRI connects almost 60% of the world’s population and offers enormous opportunities, said Poncela. “All the tools of the State Secretariat for Commerce are available for this initiative…. Spain has four commercial offices throughout China that analyze how projects are done and how they collaborate with our companies and institutions through our tools to help them present the best offer.”

Spain wants to have not only a land connection through railway but also a maritime connection, the state secretary for commerce said: “We want the maritime connection between China and Europe to end in Spain, in our ports, Barcelona, Valencia, in all of our ports in the Mediterranean, or even beyond, in our country.”

The Madrid forum, jointly organized by the Chamber of Commerce and Investments of China in Spain (CCINCE) and the Spanish Confederation of Business Organizations (CEOE), attracted some 200 representatives from major institutions and enterprises in China and Spain. CEOE Vice President Juan Pablo Lazaro said, “The Belt and Road Initiative has aroused among our business fabric and our members and partners a lot of interest because of the ambition and magnitude it has.”

He said this network of infrastructure and communications along its path of logistics and industrial centers is a great opportunity to integrate Asian markets, and promote the economic development of Eurasia, China and the European Union. Lazaro said Spanish entrepreneurs “have welcomed the initiative with great interest, considering that we can contribute with our management capacity, our knowledge in the sectors.” Spain has an essential logistics position in Europe, Latin America and the North Africa, he said, highlighting Madrid as a logistical hub.

Mittelstand Leaders Praise Li Keqiang’s Speech at China-Germany Forum

June 4 (EIRNS)—China’s Belt and Road Initiative may not only be surrounding skeptical Germany with collaborating European countries, but it is also making an inroad in Germany through the Mittelstand, the famous German technological engine of small and medium-sized enterprises (SMEs).

Chinese Premier Li Keqiang pledged to promote cooperation between the small- and medium-sized enterprises (SMEs) of China and Germany in a speech in Berlin June 1 at the China-Germany Forum: Shaping Innovation Together. Li also pledged to strengthen the protection of the intellectual property rights (IPR). “In the process of innovation cooperation, China strictly protects IPRs of enterprises and does not require compulsory transfer of technology,” Li said.

Li said that Germany has some 1,300 “hidden champion” companies and China has hundreds of thousands of high-tech SMEs, and that “China is ready to work with Germany to set up a government mechanism for SME cooperation, and promote networked and clustered innovation cooperation,” according to a Xinhua report.

Xinhua reported, “German innovation elite hail Chinese premier’s speech.” Li called for the two countries to speed up efforts to synergize their development strategies, namely, China’s innovation-driven development strategy, “Made in China 2025” and “Internet plus,” and Germany’s “Industry 4.0” and High-Tech Strategy, and to roll out more pilot projects.

The president of Germany’s National Academy for Science and Engineering, Dieter Spath, told Xinhua the two countries’ manufacturers have been competing; now he hopes they will cooperate and upgrade the industrial chain. This is China’s intention.

The CEO of EH Coducta, Manfred Jagiella, called Li’s remarks on IPR “impressive” and “a cornerstone for bilateral cooperation.” This was seconded by Stefan Magerstedt, head of innovation for the KHS firm. Heiner Lang of Bosch Rexroth AG said Li’s speech encouraged the company to continue making investments in China.

Wang Zi, general manager of the Berlin branch of China’s innovation incubator Techcode, was encouraged by the Chinese government’s pledge to attach importance to innovative SMEs. Gong Xin, manager of international sales at Germany’s FemtoFiberTec GmbH, said he believes that the cooperation—now between big firms—will expand to grassroots enterprises in the two countries.

U.S. POLITICAL AND ECONOMIC

Putin Asks U.S. Businessmen To Help Trump Return to ‘Good Political Dialogue’ with Russia

June 3 (EIRNS)—Russian President Vladimir Putin didn’t mince words in his address to the Russia-U.S. Business Dialogue panel at the St. Petersburg International Economic Forum (SPIEF) taking place June 1-3. Putin began by thanking the American participants for coming to the event, given “the unfortunate state of U.S.-Russian and Russian-U.S. relations.” He said that “it took decades to lay the groundwork for cooperation, that was all but been annihilated over the past few years. Our bilateral relations deteriorated to their lowest point since the Cold War.” Putin said that there were many areas for cooperation, and that Russia needed foreign investment. And he concluded bluntly: “I want to pass this puck to you. Help us restore a good political dialogue. I am asking you on behalf of Russia. I am addressing our American counterparts. Help the newly elected President and the new administration of the United States.”

Asked what advice he had for Trump, Putin answered that “a man like Trump does not need advice, especially when it comes to internal political matters. Generally speaking, it is always counterproductive to try to lecture counterparts…. I would like to establish a constructive dialogue on the basis of national interests of our countries and with due regard for those interests. I believe it is possible to achieve that jointly with the current president. What will happen in reality I do not know.”

RFK Biographer: His Russia Back-Channel Saved All Our Lives

June 4 (EIRNS)—Amid continuing, McCarthyite-cartoonish hysteria of liberal media and political figures about any Trump associates talking to Russians, the author of a new book about Robert F. Kennedy wrote an op-ed in the Sunday Washington Post, “We May Owe Our Lives to a Back-Channel with Russia.”

The back-channel discussed by Evan Thomas, author of Robert Kennedy: His Life, is the famous one which led to the resolution of the 1962 Cuban Missiles Crisis which had put the world on the brink of thermonuclear war.

Thomas’s additional findings, beyond what was once known to all informed Americans, are interesting. He finds similarity between President John F. Kennedy and President Donald Trump in that Kennedy made his brother a critical cabinet member—considered a “high-handed” move by many—and entrusted him with extremely sensitive missions including, for example, covert operations against Cuba’s Fidel Castro. And that Robert Kennedy in 1961, just after inauguration, unhesitatingly had a meeting with a Soviet spy, GRU Col. Georgi Bolshakov. In a series of meetings with Bolshakov, Robert Kennedy revealed the conclusions of sensitive U.S. reports about the military balance of power between the superpowers. President Kennedy had specifically told Robert Kennedy to avoid the State Department bureaucracy in these dealings.

In 1993, historians found Bolshakov’s cable to Moscow of Oct. 23, 1962: “R. Kennedy and his circle consider it possible to discuss the following trade: the U.S. would liquidate its missile bases in Turkey and Italy, and the U.S.S.R. would do the same in Cuba.” This ended the Cuban Missiles Crisis four days later, in a meeting between RFK and Soviet Ambassador Anatoly Dobrynin.

Author Thomas concludes his op-ed by wondering to what extent Henry Kissinger, of the 1972-73 back-channel to China, is today advising Jared Kushner.

Putin Pleads To Get Americans an Anti-Hysteria Pill

June 2 (EIRNS)—Asked by NBC’s Megyn Kelly, who moderated the June 2 plenary of the St. Petersburg International Economic Forum, about Russia’s alleged interference in the U.S. election through meetings with Donald Trump’s staff, President Vladimir Putin’s joking brought down the house.

“This is some sort of hysteria you just can’t get over!” he said. “Do you need some sort of medication? Does anyone here have a pill? Get them a pill, I mean honestly!” Putin asked the audience.

He assured the audience that there had not been any agreements between Russian Ambassador to the U.S. Sergei Kislyak and the Trump officials. “My answer is no! No accords. We did not even have time to start any negotiations.” As to Kislyak’s supposed improper meetings with Americans, he said: “That’s baloney! I wonder where those people who are circulating this information came from. Well, it’s an utter disaster. Has the Ambassador met someone? And what is he supposed to do? That’s his job and that’s how he makes a living. He is supposed to hold meetings, discuss current affairs and reach agreements.

“Have you all lost your minds? That is diplomatic service! I saw that Trump had dismissed his adviser since the latter had been negotiating something with someone,” he said. “I’ll tell you this, I knew nothing about it. Who were they meeting with? What were they talking about? Absolutely nothing, nada, zero.”

STRATEGIC WAR DANGER

Ryabkov: U.S. and Russia Moving To Resume Strategic Dialogue

June 4 (EIRNS)—Russia Deputy Foreign Minister Sergey Ryabkov told Sputnik yesterday that the agenda, framework, and timing of the meeting on strategic stability dialogue with the United States will be agreed on soon. “A fundamental agreement on resumption of Moscow-Washington dialogue on strategic stability was achieved in the course of contacts between [Foreign] Minister [Sergey Lavrov] and the Secretary of State [Rex Tillerson], and then confirmed at the meeting of deputy foreign minister and then-Under Secretary of State Thomas Shannon on May 8 in New York,” Ryabkov told Sputnik. He also said that it was high time for Russia and the United States to assess the issue of strategic stability in a comprehensive way and set a road map to reach progress in dialogue.

On June 2, U.S. President Donald Trump’s special counter-proliferation assistant Christopher Ford said “We would like to resume, but actually put in order the process of dialogue on strategic stability,” reported Sputnik.

Ryabkov said, “Russia and the United States, as the two major nuclear powers, bear a special responsibility for maintaining international peace and security, strategic stability. And we will be holding this dialogue, based on understanding of our responsibility.” If such a comprehensive strategic stability dialogue were to resume, he said, Moscow then would be ready to discuss ballistic missile defense (BMD).

Ford said that discussions between Russia and the U.S.A. on BMD would be different if threats posed by North Korea and Iran, were brought under control.

Russia, said Ryabkov, is “ready to discuss these issues and of course will discuss them,” when the two nations have agreed upon the parameters of the re-establishment of the strategic stability dialogue. But he noted that a different administration was now in charge. “If the new administration forms a more reasonable approach, we will welcome this, but we do not see any signs of this yet…. I have a feeling that the United States has [earlier] introduced some kind of restriction on reaching any agreements with Russia in this area over its political motives, which are not related to providing global and regional security. After 2014, when Obama’s Administration deliberately derailed all the existing practices and destroyed the mechanisms used for this dialogue, this [issue] was not discussed at all.”

COLLAPSING WESTERN FINANCIAL SYSTEM

Solution for New York’s Transportation Collapse Is the World Land-Bridge

June 4 (EIRNS)—The rail transportation network of America’s number-one urban region, the New York Metropolitan Area, is near collapse.

Only months ago, when California’s Oroville Dam—the highest in the nation—began to suffer catastrophic damage which threatened disastrous flooding, the Homeland Security Department and other agencies mobilized with round-the-clock, well-equipped workforces to repair the dam.

But in New York, an entire public transportation system, a century old and completely overloaded, may simply break down, threatening great harm to the American economy and the people of the region.

New York Gov. Andrew Cuomo is forming a Task Force to attack the metropolitan area transportation breakdown, whose 14 members include two current and one former Congressmen.

Cuomo’s own proposals center on changes of management of Penn Station (state takeover and design-build-repair); a private contractor to manage Amtrak operations at Penn Station; combining Penn Station with the adjacent Farley Train Hall for Long Island Railroad traffic; and eventually, the building of a new freight-rail tunnel under the Hudson River, the Gateway Project which is considered a national priority.

Also, “Governor Cuomo is proposing The MTA Genius Transit Challenge, a competition to reimagine the solutions to the systemic challenges with the subway system.”

Rail transport expert Hal Cooper, who has created designs for many of the projects of the Schiller Institute’s “World Land-Bridge” and now China’s “Belt and Road Initiative,” has already mapped out a New York area solution in detail. Cuomo’s proposal for this massive heart failure is to concentrate solely on the heart—Penn Station. But Cooper’s plan is like a skilled surgeon’s “quintuple arterial bypass” to make all the New York area’s main rail networks open and continuous with each other; and to lead out potentially into high-speed rail networks going north to New England and New York, south toward Washington, and west to the Midwest—and to network the region’s three major airports.

But whether this precise plan, and/or others being reviewed by EIR is the best, this will have to be a national priority crash program for the New York area. It will take many billions in Federal credit—a national bank—along with state funds. And it must be done quickly, using the most advanced rapid transit technologies wherever possible across the system.

That means doing this crash rebuilding program jointly with the national “champion” companies in building high-speed and metro transit systems. It should be a Belt and Road Initiative project with China.

Who the Hell Would Want To Join the EU Now?

June 3 (EIRNS)—The old paradigm’s institutions are crumbling about as rapidly as those of the Belt and Road Initiative are blossoming on the world stage. Take the case of the European Union itself. Speaking at a preliminary session of the June 1-3 St. Petersburg International Economic Forum (SPIEF), Moldovan President Igor Dodon said his country would not become a member of the EU. “Ordinary people often ask themselves: Why chase after a train that is losing its cars?”

In a similar vein, Hungary’s Foreign Minister Peter Szijjarto, in addressing a SPIEF session on “Europe at the Crossroads: Risks and Prospects,” stated that the EU sanctions against Russia have been a flat-out failure. He said it is hard to discuss this in the EU, “because whenever we raised this issue, debate went emotional. But if you look at the facts, then we have to admit the sanctions have failed both politically and economically. We lost $6.7 billion of export opportunities in the last three years to Russia and the former Soviet republics.” As for the political goal of achieving “progress” in the Minsk agreements (i.e., getting Russia to give Crimea to Ukraine), “have the sanctions helped? No.” Hungary, however, he stated, will not undermine EU unity by using its right to veto the sanctions.

Kaptur-Jones Amendment To Replace GOP Bill with Glass-Steagall

June 3 (EIRNS)—On Friday, June 2, Representatives Marcy Kaptur (D-OH) and Walter Jones (R-NC) submitted their “Return To Prudent Banking Act” bill, H.R.790, as an amendment to H.R.10, the Financial Choice Act of 2017. H.R.10 is the Wall Street deregulation bill to undo the Dodd-Frank Act. The Kaptur-Jones bill is not a defense of Dodd-Frank, but a simple return to Glass-Steagall. The amendment would strike the entirety of the 600-page Financial Choice Act and replace it with Glass-Steagall.

The amendment likely will go before the House Rules Committee as early as this week for consideration. Because H.R.10 has already passed through the Financial Services Committee and is heading to the House floor for debate and a vote, all of the amendments submitted (there are at least 15) will be considered by the Rules Committee to determine if they meet the criteria (yet to be determined) of being germane to the debate on H.R.10.

The committee will likely hear testimony from Representative Kaptur and possibly Walter Jones, and engage in question and answer with the sponsors. The issue is not the merits of the amendment, but rather to bring it into the debate.

SCIENCE AND INFRASTRUCTURE

Arctic Infrastructure Projects Presented at St. Petersburg Forum

June 2 (EIRNS)—The Yamal-Nenets Autonomous Area is presenting its Arctic Energy project during the St. Petersburg International Economic Forum. This includes the construction of the Northern Latitude Railway that will connect Yamal with the Urals region and northwestern Russia and link Russia’s transportation system with the Northern Sea Route through the Sabetta seaport. The railway will be 707 km long.

Separate agreements with Russia’s top natural gas producer Novatek and the Chelyabinsk Region will be signed, according to a May 30 statement by the Yamal-Nenets governor’s press agency: “Several framework agreements will be signed on the sidelines of the forum, including agreements on projects with Novatek and cooperation with the Chelyabinsk Region in a number of areas. Meetings with the heads of certain agencies are planned on possible investment in social projects in the Yamal-Nenets Autonomous Area.”

The Russian Geographical Society website “The Arctic” reported that the objectives of the project include expanding port and transportation infrastructure and building a gas distribution system on the Yamal Peninsula. The Northern Latitude Railway will provide access to the Arctic shelf and pave the way for development by connecting major hydrocarbon deposits in the north with the country’s transportation arteries and thus ensuring the shortest possible year-round transit of mineral resources to markets in Europe, North America and Asia Pacific Economic Cooperation Forum (APEC) member countries. In the exploration of the hydrocarbon resources, companies from China, Italy, France and Germany are involved as well.

Russian Scientists Forecast Global Cooling for Decades or More

June 3 (EIRNS)—A February article in the Bulletin of the Russian Academy of Sciences: Physics, has just come to our attention, in which the Russian scientists dismiss the greenhouse gases and global warming, but predict global cooling for several decades, due to increased cloud cover. The Sun is currently at a solar minimum, with very few sunspots, and relatively little magnetic activity, which allows more cosmic rays to penetrate our atmosphere causing increased cloud cover. Something similar happened in the “little ice age” from ca. 1300 through the early 1800s.

In “Cosmic Rays, Solar Activity, and Changes in the Earth’s Climate,” authors Stozhkov, Y.I., Bazilevskaya, G.A., Makhmutov, V.S., Svirzhevsky, N.S.,  Svirzhevskaya, A.K., Logachev, V.I., Okhlopkov, V.P., write:

“Our results could be connected with the mechanism of charged particle fluxes influencing the Earth’s climate; it includes, first of all, the effect charged particles have on the accelerated formation of centers of water vapor condensation, and thus on the increase in global cloud cover. The total cloud cover is directly connected with the global temperature of the near surface air layer.”

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