EIR Daily Alert Service
TUESDAY, AUGUST 1, 2017
Volume 4, Number 151
EIR Daily Alert Service
P.O. Box 17390, Washington, DC 20041-0390
July 31 (EIRNS)—The “Russia-gate” myth about interference in the U.S. election was proven last week to be elaborate hoax. A report by a group of senior intelligence analysts, the Veteran Intelligence Professionals for Sanity (VIPS), demonstrated the Democratic National Committee was not subject to a Russian hack. Technical analysis proved the damaging materials showing the DNC was favoring Hillary Clinton and suppressing Bernie Sanders’ campaign, were taken from DNC computers by an insider there, and sent to WikiLeaks. Key data were altered later to make it appear that the Russians had hacked the DNC.
The VIPS called their report “A Memorandum to President Trump.” The President must take action on it fast, to reverse an ongoing “coup” against him which is forcing him into a war confrontation with Russia and China—exactly what he intended to avoid by meetings with Presidents Putin and Xi for economic cooperation and peace.
The Congress, virtually brainwashed by “Russia-gate” and whipped up against President Trump’s meetings with Putin, has voted almost unanimously to punish and provoke Russia with more financial sanctions. This was an unconstitutional vote to take U.S. foreign policy away from the President, and force the White House into Cold War hostility to both Russia and China.
The response by Russia and China was immediate. President Xi Jinping appeared in military fatigues reviewing Chinese troops and weapons; President Putin engaged in a similar very large military review. They clearly have begun to think that Donald Trump has been completely captured by the Anglo-American war machine and are preparing accordingly.
That is the path to potential nuclear war that George W. Bush and Barack Obama were on: Trump pledged to end it.
Behind “Russia-gate” is the British Empire, trying to lure the United States into war confrontation with Russia and China. It was British intelligence which launched fake dossiers and press slanders of Trump as “colluding” with Russia. It was the British through Tony Blair who lured George W. Bush into disastrous Iraq War; and the British through David Cameron who opened Obama’s door to the equally disastrous Libya invasion. It is the British who are sending their two carriers into the South China Sea now to provoke China.
The London imperialists are doing this because they fear a new financial crash—and they fear a new paradigm, the New Silk Road global infrastructure-building policy of China—the magnitude of a dozen Marshall Plans. Those American leaders aiding in this coup for war, are acting like traitors.
The way to stop a new financial crash is not to start world war; it’s to reinstitute the Glass-Steagall Act and break up Wall Street and London banks, which President Trump once was promising to do.
The President needs popular and institutional support to appoint a Special Prosecutor to investigate the entire hoax which is “Russia-gate” and to prosecute its conspirators and leakers. Without this he cannot take back foreign policy, and steer away from war toward cooperation in economic progress.
U.S. POLITICAL AND ECONOMIC
July 31 (EIRNS)—Speaking at the Politicon Convention in Pasadena, California July 30, political strategist Roger Stone responded to a self-identified LaRouche supporter who asked for Stone’s “stand” on the opposition of Lyndon LaRouche and the Veteran Intelligence Professionals for Sanity (VIPS) to the use of a phony story of hacking of DNC computers to start World War III.
Stone replied: “I’m very familiar with the interviews and writings of [VIPS leaders] Ray McGovern and William Binney, both veterans of our intelligence apparatus who have essentially said the entire allegation of Russian collusion with Donald Trump is false.
“I am also very familiar with the writings of Dr. LaRouche. I think he was unfairly jailed by the Bush Administration because he had the balls to challenge George H.W. Bush in the 1988 [Presidential] election. I find very interesting and compelling information on his website, and I think it would be better if the McGoverns and Binneys, who are technical experts, and people of vast technical experience, would get more coverage from the mainstream media. But you don’t see them on MSNBC, CNN, and you certainly won’t see them on Fox News, or on the networks.”
An interviewer seated on stage with Stone asked, “If there is no collusion with Russia, why is Trump so consistently obstructing justice?”
“I don’t think there has been any obstruction of justice,” Stone replied. “I think you can understand his position. You see, Donald Trump doesn’t think we should go to war with Syria. Why should we go to war with Syria? We have no inherent interest in Syria.
“Assad is propped up by Russian financing, and Hezbollah, and worse, but, on the other hand, you have—who knows? Several hundred terrorist groups, of which ISIS is the most powerful, propped up by the Saudis, who financed the attack on the United States on 9/11.
“Why do we spend a borrowed American dollar, or a single drop of American blood, to go to war over Syria? Now, Hillary Clinton, I believe, had promised the deep state, our Defense Department, and those in the intelligence community to maintain a proxy war in Syria, maybe even a no-fly zone, which is an open invitation for World War III.
“I don’t think Donald Trump has any illusions about the Russian system; the fact that they oppress gays, Christians, and Jews. I don’t think he has any illusions about the rottenness of their system, but if you want détente….”
July 31 (EIRNS)—Rep. Dana Rohrabacher (R-CA), speaking at the Politicon Convention in California on July 30, explained to thousands present what happened with the alleged Russian hacking of Democratic National Committee emails. “A firm called ‘CrowdStrike,’ financed by Goggle, provided security for the DNC emails, and told the FBI they were hacked…. The FBI hasn’t looked at the emails—it got its information from this firm.
“There is another firm, called VIPS (Veteran Intelligence Professionals for Sanity) which is hardcore intelligence people. They don’t believe the ‘hacking,’ which the FBI hasn’t verified themselves. Others are saying it looks more like a flashdrive device was used [for copying the data]—but we’re told it was a hack. We’re told, ‘Oh, it’s been proven.’ But the FBI hasn’t done this.
“I’ve learned not to trust any intelligence until it’s been verified…. These are the groups who told George W. Bush he had to invade Iraq. The intelligence agencies want to spy on you. John Brennan has spent so much time in Saudi Arabia…. “
In a similar vein, Col. Pat Lang (ret.), excerpts the VIPS report today on his blog, “Sic Semper Tyrannis.” He excerpts the “Memorandum for the President,” from VIPS, in what he calls its “good, for-the-record” Executive Summary:
“MEMORANDUM FOR: The President
FROM: Veteran Intelligence Professionals for Sanity (VIPS)
SUBJECT: Was the Russian Hack an Inside Job?
“Forensic studies of ‘Russian hacking’ into Democratic National Committee computers last year reveal that on July 5, 2016, data was leaked (not hacked) by a person with physical access to DNC computers, and then doctored to incriminate Russia.
“After examining metadata from the ‘Guccifer 2.0’ July 5, 2016 intrusion into the DNC server, independent cyber investigators have concluded that an insider copied DNC data onto an external storage device, and that ‘telltale signs’ implicating Russia were then inserted.
“Key among the findings of the independent forensic investigations is the conclusion that the DNC data was copied onto a storage device at a speed that far exceeds an Internet capability for a remote hack. Of equal importance, the forensics show that the copying and doctoring were performed on the East coast of the U.S. Thus far, mainstream media have ignored the findings of these independent studies….
“Independent analyst Skip Folden, a retired IBM Program Manager for Information Technology U.S., who examined the recent forensic findings, is a co-author of this Memorandum. He has drafted a more detailed technical report titled ‘Cyber-Forensic Investigation of “Russian Hack” and Missing Intelligence Community Disclaimers,’ and sent it to the offices of the Special Counsel and the Attorney General. VIPS member William Binney, a former Technical Director at the National Security Agency, and other senior NSA ‘alumni’ in VIPS attest to the professionalism of the independent forensic findings.
“The recent forensic studies fill in a critical gap. Why the FBI neglected to perform any independent forensics on the original ‘Guccifer 2.0’ material remains a mystery—as does the lack of any sign that the “hand-picked analysts” from the FBI, CIA, and NSA, who wrote the “Intelligence Community Assessment” dated January 6, 2017, gave any attention to forensics.
“NOTE: There has been so much conflation of charges about hacking that we wish to make very clear the primary focus of this Memorandum. We focus specifically on the July 5, 2016 alleged Guccifer 2.0 ‘hack’ of the DNC server. In earlier VIPS memoranda we addressed the lack of any evidence connecting the Guccifer 2.0 alleged hacks and WikiLeaks, and we asked President Obama specifically to disclose any evidence that WikiLeaks received DNC data from the Russians….
“Addressing this point at his last press conference (January 18), he described “the conclusions of the intelligence community” as “not conclusive,” even though the Intelligence Community Assessment of January 6 expressed “high confidence” that Russian intelligence “relayed material it acquired from the DNC … to WikiLeaks.”
“Obama’s admission came as no surprise to us. It has long been clear to us that the reason the U.S. government lacks conclusive evidence of a transfer of a “Russian hack” to WikiLeaks is because there was no such transfer. Based mostly on the cumulatively unique technical experience of our ex-NSA colleagues, we have been saying for almost a year that the DNC data reached WikiLeaks via a copy/leak by a DNC insider (but almost certainly not the same person who copied DNC data on July 5, 2016).
“From the information available, we conclude that the same inside-DNC, copy/leak process was used at two different times, by two different entities, for two distinctly different purposes:
“-(1) an inside leak to WikiLeaks before Julian Assange announced on June 12, 2016, that he had DNC documents and planned to publish them (which he did on July 22)—the presumed objective being to expose strong DNC bias toward the Clinton candidacy; and
July 31 (EIRNS)—Kentucky Republican Senator Rand Paul—one of two U.S. Senators to vote against the Russia-Iran-North Korea sanctions bill—has spoken out against using sanctions as a policy weapon. Unlike Sen. Bernie Sanders, whose “no” vote was made on the pragmatic basis of “protecting the Iran treaty from Trump,” Paul has a more principled approach. Speaking in June about the sanctions bill, then primarily directed against Iran, Paul told the Washington Examiner, “I’m really not in favor of new sanctions against Russia now or new sanctions on Iran.” Rather than punishing Russia for cyber-spying, Paul argued that the U.S. would be better off improving our own cyber-security, acknowledging that, “Everybody in the world who can spy, spies,” including the United States.
In a statement written for The National Interest June 9 (taken from remarks made earlier before the Senate Foreign Relations Committee), Paul said that one had to put Iran’s actions in the context of its historical position in the Middle East, where Saudi Arabia is its number-one enemy. “I do not disagree that Iran has their hands in everything in the Middle East, but so does Saudi Arabia. I am just not so sure which side is worse. I think they both are intervening in multiple wars in the Middle East. Internationally, Saudi Arabia may be more of a menace than Iran, as far as promoting hatred of America.”
After quoting former Sen. Bob Graham on the 28-page chapter on Saudi Arabia’s involvement in financing the 9/11 terrorists, which that was classified from the 2002 Joint Congressional Inquiry into 9/11 that Graham co-chaired, Paul said: “If you wanted to influence the behavior of Iran, you might consider sanctioning Saudi Arabia in equal fashion…. Let us have sanctions on both countries regarding ballistic missiles, and let us say we will remove them when they come to the table to discuss reducing their armaments. Another way of doing it would be to withhold the $350 billion worth of new weapons and missiles to Saudi Arabia until both sides come together to discuss an arms control treaty. Perhaps you could say we are going to withhold that offer until Saudi Arabia agrees to negotiate with Iran.
“It is my belief that Iran will never quit developing ballistic missiles unless there is an agreement with Saudi Arabia and/or the rest of the Gulf kingdoms to do the same. And so I think new sanctions are a fool’s errand, and they will not work.”
COLLAPSING WESTERN FINANCIAL SYSTEM
July 31 (EIRNS)—Reuters reported today that it has a draft European Union proposal of a plan to let banks, when feeling insolvency trouble, freeze customers’ accounts for from 5 to 20 days. This would occur while the bank is being “stabilized”—in other words, while bank bondholders and large depositors are being confiscated, or “bailed in” to try to save the bank. A variant of such a new rule would not completely freeze depositors’ funds, but let them make only partial withdrawals during the 5-20 day period.
The scheme, which Reuters reported is being debated among European countries which are divided over it, is floated shortly after Spain’s fourth-largest bank, Banco Popular, went into bankruptcy after bank runs, and three Italian banks were bailed out with $30 billion in taxpayers’ funds. Italy’s banks are in a general crisis, and one is hanging over the banks of London, as a Bank of England official cautiously admitted in a speech July 28.
In the Italian bail-outs, savers in the banks, who had mistakenly bought bank bonds thinking they were “just like” deposits, were “bailed in,” losing most of the bonds’ value to confiscation. The proposed new rule would extend that to deposits themselves, including insured deposits, which could be frozen.
The Reuters report implies that the scheme originated with Estonia’s government, and is controversial within the EU as of now. But unnamed German government officials told the news service that Germany supports it, supposedly to stop bank runs!
The opposite is the truth. “We strongly believe that this would incentivize depositors to run from a bank at an early stage,” said Charles Bannister in a statement for the Association for Financial Markets in Europe (AFME).
STRATEGIC WAR DANGER
July 31 (EIRNS)—The official Chinese English-language paper Global Times published an editorial today saying that the anti-Russia hysteria in the United States has undermined Trump’s effort to improve relations, pointing out how difficult it is to have rational relations with the America.
“The anti-Russia sentiment prevails in the U.S.,” the editorial says. “The wish of U.S. President Donald Trump to improve ties with Russia meets strong resistance…. Although the U.S. had interfered in other countries’ elections, when it comes to Moscow, things are different. The Russia-gate scandal has put Trump and his team in a bind, which shows the deep-rooted hostility of the U.S. against Russia. Although Putin and Trump hope for an ameliorated bilateral relationship, it is highly unlikely to become a reality….”
They express concern that “Congress has become so powerful that the President has no choice but to follow Congress on U.S. policy toward Russia, which is rare. This shows the complexities of crafting U.S. foreign policy…. Dealing with the U.S. requires guts. Under the current system, the U.S. only respects strength. The U.S. does not like China either, while China has leverage on the U.S., which is the huge bilateral trade the U.S. has been enjoying.”
The editorial concludes: “The U.S. imposes insatiable requests on other countries. Russia has lost many republics from the former Soviet Union and Eastern Europe. It has adopted a multi-party system. But it is still viewed as an ‘authoritarian’ country. No matter how much it bows to the U.S., the U.S. will not embrace it…. China needs to develop its power by expanding its markets and enhancing its military strength. This is where strategic initiatives stem from.”
July 31 (EIRNS)—In addition to the simultaneous military displays that were presented in both China and Russia on July 31, both countries are also participating in the International Army Games, in which military teams test their skills against each other. The games began in 2015 at the initiative of Russian Defense Minister Sergei Shoigu, and this year are being held across 22 test ranges in Russia, Belarus, Azerbaijan, Kazakhstan, and China from July 29 to Aug. 12. Within the framework of the Army Games is the annual Aviadarts aviation competition, traditionally held in Russia, but this year is being staged at three military airfields in Jilin Province in China.
At the opening ceremony of Aviadarts today, Gen. Ma Xiaotian, the commander of the PLA Air Force, spoke on the importance that his service places on developing relations with the Russian Aerospace Forces. “In the current changing structure of international relations, both sides [Russia and China] share common interests and strategic needs. In recent years, our two countries’ leaders have provided support to each other in international and regional issues, strengthening strategic cooperation all the time,” General Ma said. In this context, “The Chinese Air Force attaches great importance to developing relations with the Russian Aerospace Forces and is ready to continue joint training and cooperation in anti-missile defense, logistics and equipment.”
Another sign of the closeness of the two militaries is that the Russian 1941 war song Katyusha may become the anthem of the Army Games. TASS reports that the song was performed during the Aviadarts opening ceremony by the Russian Aerospace Force song and dance ensemble in Russian, and the audience of 5,000 “jumped to their feet and started singing along,” according to the Russian Defense Ministry. The Chinese audience knows the renowned Katyusha song well, which is the reason why the Russian team taking part in the Gunsmith Master competition learned to perform it in Chinese, TASS reports.
July 31 (EIRNS)—U.S. Secretary of State Rex Tillerson issued a nonsensical statement on July 29 claiming that the Iran-Russia sanctions legislation is actually a sign that the U.S. is trying to improve U.S.-Russian relations. “The near unanimous votes for the sanctions legislation in Congress represent the strong will of the American people to see Russia take steps to improve relations with the United States. We hope that there will be cooperation between our two countries on major global issues, and these sanctions will no longer be necessary,” Tillerson said. “We will work closely with our friends and Allies to ensure our messages to Russia, Iran, and North Korea are clearly understood.”
In Moscow, this statement is raising eyebrows, as the Russian Embassy in Washington actually said: “The Statement made by the U.S. State Department on July 29 regarding a new sanctions legislation approved by Congress cannot but raise eyebrows. Washington still doesn’t get the fact, that pressure never works against our country and bilateral relations can hardly be improved by sanctions.”
Vice-President Mike Pence arrived in Estonia yesterday, claiming to be bringing messages from President Donald Trump about Russia’s allegedly destabilizing activities in Ukraine, and support of “rogue regimes” in Iran and elsewhere, but is actually representing the Congressional traitors and British Empire policy. “The President and I remain very hopeful that we’ll see different behavior by the Russian government, with regard to Ukraine, with regard to supporting rogue regimes in Iran and North Korea,” he told reporters during a press availability in the town square of Tallinn, in remarks that echoed Tillerson’s statement. “We continue to believe that if Russia will change its behavior, our relationship can change for the good and improve for the interests in both of our countries and the interest of peace and stability in this region and around the world.”
NEW WORLD ECONOMIC ORDER
July 30 (EIRNS)—The second meeting of the BRICS industry ministers took place July 29-30 in Hangzhou, China in preparation for the BRICS Summit in Xiamen, on Sept. 3-5. The ministers adopted a seven-point “action plan” to deepen industrial cooperation among BRICS countries, according to a statement by the South African Department of Trade and Industry (DTI) today.
The action plan noted that the world economy still had not recovered since the international financial crisis. The action plan asserted that:
“Industrial sectors, the manufacturing sector, and the service sectors related to it, in particular, have become key factors in sustaining mid- and long-term economic development. The plan also acknowledges that in recent years the new industrial revolution featuring digitalization, networking, and intellectualization is emerging, changing traditional production flows and business models, and giving rise to new industrial forms.”
South African Minister of Trade and Industry Rob Davies stated that the purpose of the action plan is to help implement the agreement of the first meeting of the BRICS industry ministers in Moscow, two years ago, to deepen win-win co-operation in industrial fields, especially manufacturing.
Davies emphasized the necessity of acquiring and spreading new technologies, and also said that industrial development co-operation among BRICS countries could be a springboard to foster growth, development, and job creation.
July 30 (EIRNS)—China President Xi said during his inaugural visit to Africa in February 2013 that China Africa relations had entered a “fast track of comprehensive development.” Indicators of aid by China, as published this year in a book on China’s new sources of growth by the Australian National University demonstrate this fact:
China ranks ninth in aid. Recipients are:
According to a study by Johns Hopkins School of Advanced International Studies, the gross annual revenue of Chinese construction contractors in Africa in 2000 amounted to $1 billion; in 2015 it was $55 billion.
In 2015, some 13% of China’s foreign direct investment in Africa was in manufacturing. In the same year, 7% of U.S. foreign direct investment in Africa was in manufacturing.