EIR Daily Alert Service

EDITORIAL

Russiagate Is Going Down—Go On the Offensive for the New Paradigm

Aug. 15 (EIRNS)—The explosive exposure of the fraud behind “Russiagate,” by the release of the Veteran Intelligence Professionals for Sanity (VIPS) report, debunking the myth that the Russians hacked the Democratic National Committee computers, has gone viral, despite the frantic efforts of the so-called “leading media” outlets to block it out. This has thrown the British coup-plotters onto the defensive. The New York Times, the Washington Post, CNN, among others, have written nary a word on the VIPS report, despite the powerful coverage published in The Nation, the preeminent liberal journal in the country, and now being reported on thousands of newspapers, websites and radio stations internationally. As Salon’s Danielle Ryan reports today: “For the media and mainstream liberals to dismiss the information presented in [The Nation] as lacking in evidence would be breathtakingly ironic, given how little evidence they required to build a narrative to suit themselves and absolve Clinton of any responsibility for losing the election. The authors of this report are highly experienced and well-regarded professionals. That they can be dismissed out of hand or ignored entirely is a sad commentary on the state of the media which purports to be concerned by the plague of fake news. If these new findings are accurate, those who pushed the Russia hacking narrative with little evidence have a lot to answer for.”

These lying media were on display today at a press conference held by Donald Trump to announce plans for easing permit requirements for new infrastructure projects. The media were in a feeding frenzy, screaming about Charlottesville, frantically trying to paint Trump as a racist and somehow responsible for the murder and mayhem, perpetrated under the direction of professional provocateurs on both sides. Trump correctly noted that the videos were clear—there were armed thugs on both sides, describing the black-clad anarchists with bats who attacked the demonstrators. This was getting close to the truth—that the FBI controlled both sides, a classic gang-countergang operation. The color-revolution methods, used by the Anglo-American intelligence networks around the world for regime change against targetted governments, are now being used against the unwelcome election by the American people of a President who refuses to be either a profiled Democrat or a profiled Republican, and who rejects the British imperial divide of the world into East versus. West.

EIR warned in a Special Report published in February called “Obama and Soros: Nazis in Ukraine 2014 —U.S. in 2017?” (see http://www.larouchepub.com/eiw/public/2017/eirv44n08-20170224/04-21_4408.pdf) that the same methods used for the coup in Ukraine in 2014, led by murderous neo-Nazis openly supported by Obama and Soros, would be brought into the United States within the year, as is now clearly the case.

Accused of destroying race relations in the U.S., Trump said race relations have been horrible for a long time, and that the necessary condition for ending that crisis was the creation of millions of jobs, which he was dedicated to achieving.

Now is the time for the American people, and people everywhere, to go on the offensive for the New Paradigm, as developed and promoted by Lyndon and Helga LaRouche over the past fifty years. Already China and Russia are leading the process to end the neo-colonial era of exploitation of the resources in Africa, Asia and Ibero-America, while leaving those countries in abject poverty and devoid of industrial development or basic infrastructure. The New Silk Road is now reproducing the Chinese miracle, which lifted 700 million out of poverty in 30 years, through industrialization and infrastructure around the world, even while the Chinese are finishing the job at home—building new mega-cities and acting to end poverty altogether by 2020.

In the U.S., the economic and cultural decay which has driven the population to record drug and alcohol addiction, and record suicide rates, is beginning to give way to a will to fight. The effort to remove, or even assassinate, the elected President, who has sworn to stand up for the “forgotten men and women of our country,” has infuriated the population, especially in the “rust belt,” the formerly industrialized centers of America. Organizers from LaRouchePAC are reporting from across the country—but especially from blue-collar regions—that people are delighted remoralized to see our movement out in public, to defend Trump, to restore Glass-Steagall, to restore the American System, to join the Silk Road, to restore relations with Russia. Most importantly, there is an increasing willingness to understand the British imperial hand behind the coup attempt against Trump and behind Wall Street’s bankrupt speculators.

The Nation also needs a leadership which inspires a vision of what the future can and must be: the restoration of the idea of progress within the U.S., acting together with Russia and China to bring real development to the entire world, ending the British Empire and its perpetual warfare once and for all. These ideas, championed by the LaRouche movement for decades, are coming to the fore, proving LaRouche’s insistence that history is ultimately driven by the power of ideas. It is this moment of greatest danger in which people are able to shed their delusions and their fears, to act on principle. As Percy Shelley said in his A Defense of Poetry: “At such periods there is an accumulation of the power of communicating and receiving intense and impassioned conceptions respecting man and nature.” This is our mission.

U.S. POLITICAL AND ECONOMIC

War-Mongers Scramble To Counter the VIPS Memo, as Premise of ‘Russiagate’ Collapses

Aug. 15 (EIRNS)—Washington, D.C.’s The Hill was commissioned to round up technical-sounding comments from geeks at various cybersecurity firms, turned into an article yesterday on “Why the Latest Theory about the DNC Not Being Hacked Is Probably Wrong.” The title itself reveals the weakness of the war-mongers’ position. But something had to be done, as political shockwaves continue to spread from the Veteran Intelligence Professionals for Sanity (VIPS) memo challenging the “evidence” that Russia hacked the DNC servers, after The Nation broke the media blackout on it last week.

The counter is not any claim to know what did happen, but assertions that there might be other explanations for the speed of the download, the megadata, etc., analyzed by the VIPS. The Hill argues that these computer forensic “experts” are “credible,” because (1) their companies (Fidelis, FireEye, SecureWorks, Threat Connect and Splunk) are commercial “competitors” to the CrowdStrike firm which claimed Russian hacking of the DNC servers, and (2) their conclusions agree with the CIA, FBI and NSA’s assertions of Russian authorship.

But, then, the Russiagate story was never based on evidence; as the VIPS’ top cybersecurity expert William Binney told Fox’s Tucker Carlson last night: “They are applying the old sophist rule from ancient Greece. Just repeat the argument over and over again, from many different directions by many different people, and eventually it will be believed. That’s exactly the philosophy Adolf Hitler had—if you are going to tell a lie, tell it often until it gets believed—and make it a big one.”

New Press Breakthroughs on VIPS Memo

Aug. 15 (EIRNS)—“What If the DNC Russian Hack Was Really a Leak After All? A new report raises questions media and Democrats would rather ignore,” is the title of an article by Danielle Ryan in the liberal-leaning Salon magazine today. Ryan keys off Patrick Lawrence’s article on the VIPS Memo in The Nation, reviewing the conclusions of the VIPS intelligence pros and forensic investigators, to hammer at the implications of the media blackout.

“The silence from mainstream outlets on this is interesting, if for no other reason than the information appears in a highly-regarded liberal magazine with a reputation for vigorous and thorough reporting, not some right-wing fringe conspiracy outlet carrying water for Donald Trump….

“For the media and mainstream liberals to dismiss the information presented in Lawrence’s article as lacking in evidence would be breathtakingly ironic, given how little evidence they required to build a narrative to suit themselves and absolve Clinton of any responsibility for losing the election.

“The authors of this report are highly experienced and well-regarded professionals. That they can be dismissed out of hand or ignored entirely is a sad commentary on the state of the media which purports to be concerned by the plague of fake news.

“If these new findings are accurate, those who pushed the Russia hacking narrative with little evidence have a lot to answer for. The Clinton campaign promoted a narrative that has pushed U.S.-Russia relations to the brink at an incredibly dangerous time.

“Unlike the cacophony of anonymous sources cited by the media over the past year, these experts are ready to put their names to their assertions. They expect that pundits, politicians and the media will cast doubt on their findings, but say they are prepared to answer any substantive challenges on their merits. That is more than any other investigators or intelligence agencies have offered to this point,” Ryan wrote.

Salon’s piece, in turn, generated the story in the New York Post today, “New Report Claims DNC Hack Was an Inside Job—Not Russia,” wherein the Salon and The Nation stories on the VIPS memo are pitted against The Hill’s “cybersecurity experts.” The Post concludes, however, with the fact that “the VIPS were formed in 2003 to protest the way the administration of George W. Bush manipulated intelligence to justify the Iraq war.”

STRATEGIC WAR DANGER

Moon Jae-in Declares South Will Not Allow War; Kim Stalls North’s Guam Demonstration Missiles

Aug. 15 (EIRNS)—South Korean President Moon Jae-in, speaking on Korean Liberation Day (celebrating liberation from Japanese rule in 1945, observed in both North and South), said that there would be no war without Seoul’s approval, and that “all means” would be used by South Korea to prevent a war. “Military action on the Korean Peninsula can only be decided by South Korea and no one else can decide to take military action without the consent of South Korea,” Moon said. “The government, putting everything on the line, will block war by all means.”

This follows meetings with Chairman of the U.S. Joint Chiefs of Staff Gen. Joseph Dunford, who was in Seoul yesterday, was in Beijing today, and will then visit Japan.

Meanwhile, Kim Jong-un was shown on TV across North Korea (and around the world) being briefed on the plan to demonstrate North Korea’s ability to hit Guam by sending four missiles to strike about 20 miles from the U.S. territory. Kim announced that he was not activating the planned demonstration at this point.

Together with the fact that back channel contacts between the U.S. and North Korea under the Trump Administration were made public over the past days, and following high-level meetings between the Foreign Ministers of North Korea, Russia, China and Japan at the ASEAN Regional Forum a week earlier, these developments indicate a move toward sanity and the possibility of more formal talks beginning in the near future. On the other hand, both General Dunford and the head of the U.S. forces in Korea Gen. Vincent Brooks, said that the U.S. is planning to proceed with the scheduled military exercises with South Korea from Aug. 21-31, which may be met by another North Korean test of some sort.

China’s Global Times editorialized today on the exercises, saying that they “will definitely provoke Pyongyang more, and Pyongyang is expected to make a more radical response…. If South Korea really wants no war on the Korean Peninsula, it should try to stop this military exercise.”

Lavrov, Wang Yi Call on U.S., South Korea To Cancel Military Exercises

Aug. 15 (EIRNS)— Russian Foreign Minister Sergey Lavrov and China’s Foreign Minister Wang Yi spoke by phone today on the Korea situation. The Chinese Foreign Ministry website reports that, “Sergey Lavrov said that if the United States and South Korea conduct joint military exercises, the situation on the Korean Peninsula may deteriorate again.” Lavrov told Wang that Moscow was ready to strengthen coordination with Beijing in settling the situation on the Korean Peninsula, and that a military solution was unacceptable, Sputnik reports today. The U.S. and South Korea plan a military exercise from Aug. 21-31.

The Russian Foreign Ministry also issued a statement, saying both Lavrov and Wang Yi warned against the “military adventurism and threats to use force, no matter where they come from.”

Did Ukraine Supply Rocket Engines To North Korea?

Aug. 15 (EIRNS)—The New York Times, yesterday, played up a report by Michael Elleman of the International Institute for Strategic Studies (IISS), who theorizes that the rocket engines used in the North Korean Hwasong-12 and Hwasong-14 were acquired from Ukraine and that U.S. intelligence agencies have reached the same conclusions through their own studies.  “The studies may solve the mystery of how North Korea began succeeding so suddenly after a string of fiery missile failures, some of which may have been caused by American sabotage of its supply chains and cyberattacks on its launches,” the Times reports. In short, Elleman and other unnamed analysts have concluded, from examining photographs, that the engine used in the two North Korean rockets is derived from the RD-250, which was the engine used in the R-36 series of Soviet ICBMs, including the giant SS-18. The SS-18 was produced in Ukraine, at the Yuzhmash plant in Dnipro (formerly Dnepropetrovsk) in southeastern Ukraine, just outside the conflict zone in the Donbass. “It’s likely that these engines came from Ukraine—probably illicitly,” Elleman told the Times in an interview. “The big question is how many they have and whether the Ukrainians are helping them now. I’m very worried.” Elleman was head of the U.S. Cooperative Threat Reduction program from 1995 to 2001, which was designed to reduce the threat of the proliferation of nuclear weapons and missile technologies after the collapse of the Soviet Union and operated in Russia, Ukraine, Belarus and Kazakhstan.

At the same time, Elleman was “unable to rule out” that the engines the North Koreans are using may have come from Russia, where dozens to hundreds are thought to be in storage, but he doubts this for technical reasons.

Elleman’s detailed analysis, the Times further reports, is public confirmation of what intelligence officials have been saying privately for some time: The new missiles are based on a technology so complex that it would have been impossible for the North Koreans to have switched gears so quickly themselves. They apparently fired up the new engine for the first time in September 2016—meaning that it took only 10 months to go from that basic milestone to firing an ICBM, a short time unless they were able to buy designs, hardware and expertise.

Not surprisingly, the neo-Nazis in Kiev have rejected the Times report. “This information doesn’t have a leg to stand on, is provocative in its content, and most likely provoked by Russian special services to cover their own crimes,” National Security and Defense Council Secretary Oleksandr Turchynov said, yesterday, reports Interfax Ukraine. “Ukraine has never supplied rocket engines and any missile technology to North Korea.”

While the motivations of both the New York Times and the IISS are usually suspect, recent history, particularly since the neo-Nazi coup in Ukraine of February 2014, provides background to Elleman’s report that tends to make it credible. As early as April 2014, the Russian Foreign Ministry expressed concerns about the vulnerability of Ukrainian arms enterprises to proliferation, singling out the Yuzhmash concern in particular with respect to missile technologies. Secondly, 90% of Ukraine’s high-value exports went to Russia, according to a 2016 article in the journal Russian Politics, for a decade prior to the split between the two countries. When the Kiev regime decided to tear up its defense contracts with Russia, Ukraine’s defense and aviation industries lost more than 80% of their income. Already in January 2015, there were reports that Yuzhmash’s workforce was given two months of unpaid leave and were owed about $140 million in back wages. Another possible factor, one that remains to be evaluated, is the location of the plant in Dnipro, which is the highly criminalized fiefdom of Ukrainian oligarch Ihor Kolomoisky.

COLLAPSING WESTERN FINANCIAL SYSTEM

Real Unemployment in Europe: Five Countries over 20%, Four Countries over 30%

Aug. 15 (EIRNS)—The Financial Times has published a chart of real unemployment in 14 European countries, counting both people who are seeking a job and people who are no longer looking for a job, plus those who are “involuntarily part-time,” i.e. people who would like to have a full-time job, but are forced to work part-time.

Italian economist Alberto Bagnai has checked the chart, making his own calculations on the basis of Eurostat figures, expanding it to more countries. The result is devastating. (See http://goofynomics.blogspot.de/2017/08/la-disoccupazione-in-teoria-e-in.html)

The unemployment figure in Italy is over 35%, followed by Spain, Greece and Macedonia between 32.5% and 33%, Cyprus with 27%, Croatia with 24%.

The average for the Eurozone (19 countries) is between 22 and 23%.

The average for the EU (27 countries) is 20%.

The Czech Republic and Iceland are the top of the “virtuous” countries, with 7-8% and 11-12% unemployment respectively—same figure for Germany.

EU Commission Wants To Prevent Chinese Investments

Aug. 15 (EIRNS)—As the British tabloid Express reports today, the surge in Chinese investment last year into Europe’s high-tech manufacturing, infrastructure, and energy industries has prompted European Commission President Jean-Claude Juncker to set up a group “to elaborate first possible actions.” In September he will announce an array of measures to tackle perceived gaps in the EU’s protections.

The EU claims China is buying up European know-how, while placing heavy restrictions on how Europeans invest in China—the foreign direct investment (FDI) into the EU reached £32 billion, according to a report by the Mercator Institute for China Studies and the Rhodium Group—both institutes not favorable to the Chinese. André Sapir, senior fellow at the Bruegel think-tank, told the Financial Times, “There is a sense that we need to reinforce our arsenal, to negotiate [with Beijing] with equal strength.”

Proposals could mean EU nations will be forced to coordinate their national screening systems so there are no criteria discrepancies about granting foreign acquisitions. The EU Commission is thinking of going even further by introducing EU-level investment screening for takeovers of companies receiving EU funding—something many member states will be wary of due to the creeping hold of the EU. Hosuk Lee-Makiyama, a former EU trade official who now heads the European Center for International Political Economy, said “there are genuine security concerns regarding Chinese investment.”

THE NEW GLOBAL ECONOMIC ORDER

China Building New Mega-Cities

Aug. 15 (EIRNS)—A report by two U.S. business executives on their visit to a future mega-city in China published by KraneShares today is an exhilarating snapshot of China’s continuing vision in building their nation. KraneShares Chief Investment Officer Brendan Ahern, and Head of Capital Markets Mark Schlarbaum, visited the site which will become Xiong’an New Area, about 106 miles south of Beijing, which will become a city of 2,000 square kilometers—“almost three times the geographic size of New York City,” they report.

As they toured the towns and farmland which will become this mega-city, aimed at continuing the growth of the north but relieving the pressure on the overcrowded Beijing, they note that over the past 30 years, the urban population grew from 22.9% of the total population to 56.8%6 of its current 1.3 billion, allowing for a rising living standard. They compare the plan to the earlier development of Shenzhen and Shanghai’s Pudong District, which were small villages in the 1980s, but are now among the world’s largest cities.

The authors reflect back on the massive media hype about “ghost cities” popping up across China, which claimed they were the result of a real estate bubble that would soon bring the Chinese economy down. They pointed to Zhengzhou city in Henan Province, which had been labeled as one of the ghost cities in 2013, but which now has over 9 million people living there, “about the same amount of people as the Chicago metropolitan area.”

They wrote: “If Xiong’an and other planned cities follow the trend of their predecessors, each reaching a size of about 10 million people, then we believe China could need as many as 20 more mega-cities to sustain its rate of urbanization.”

As investors and financial advisors, they suggest big investments in China’s A-share markets, which are open to foreign investors.

Egyptian Hits Nail on Head: Build New, Modern Rail; Patching Outdated Systems Kills

Aug. 15 (EIRNS)—Egypt should turn to China to replace its antiquated rail system with a modern one, Mohammed Shehata, head of the Egyptian Transport Association (ETA), an Egyptian NGO, told Xinhua on Sunday. Egypt needs a full rebuild, using the latest technologies and electric trains, with cadre trained to run it, he argued.

Shehata spoke in the wake of an Aug. 11 train collision in Egypt, in which more than 40 people died, and more than 130 people were injured. The incident provoked Egyptian President Abdel Fatah el-Sisi to give instructions for the formation of technical committees to evaluate the train system.

China has been helping many African nations to build new, up-to-date railway systems, Shehata told Xinhua. It offers expertise and financing, usually at a lower cost than do European countries, nor does it decide which companies will carry out the projects. China’s participation, furthermore, “will help boost the Belt and Road Initiative to link Africa and Asia,” he said.

Shehata made a critical point to Xinhua, one which is applicable equally to New York City in facing the breakdown of its subway system,  that while Egypt has spent billions of U.S. dollars to develop its railroad and its train systems, the projects did not yield good results because “we invested in an old infrastructure. It is not a good idea to update an already old train or network. The whole network and trains should be modernized, and I believe that we need a pioneer partner like China to make a leap in our railway system.”

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