EIR Daily Alert Service, FRIDAY, JULY 20, 2018

FRIDAY, JULY 20, 2018

Volume 5, Number 144

EIR Daily Alert Service

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

 

EDITORIAL

Trump and Putin Move Boldly Toward Cooperation; Next Step, a New Bretton Woods

July 19 (EIRNS)—Just three days after the historic Helsinki summit between Presidents Donald Trump and Vladimir Putin, White House Press Secretary Sarah Sanders tweeted late today that President Trump intends to invite President Putin to visit the White House this fall, to continue the dialogue begun on July 16, and work on the pressing problems of concern not just to these two powers, but to the world at large. “Discussions are already underway,” to arrange the meeting, Sanders reported. This will drive the hangers-on of the British Empire wild.

Both Presidents Trump and Putin know that the Helsinki summit was a historic success, and broke crucial ground in identifying issues on which the two great powers can collaborate. Trump tweeted today that “I look forward to our second meeting, in order to implement some of the many things discussed…there are many answers, some easy, some hard,” to the problems discussed, “but they can all be solved!” Yet, as he indicated, “it’s the Fake News Media,” which does the British Empire’s dirty work, that “wants so badly to see a major confrontation with Russia, even a confrontation that could lead to war.”

President Putin understands some of what Trump is up against in the U.S. As he stated in a meeting with Russian diplomats, “we see that there are forces in the United States that are willing to sacrifice Russia-U.S. relations … that put their narrow group and party interests before national ones…. Nonetheless, Russia is open to further contacts with the United States on an equal and mutually beneficial basis. This is what not only our people, but the world as a whole, needs. As the world’s largest nuclear powers, we have special responsibility for strategic stability and security.”

Yet, as Schiller Institute founder and President Helga Zepp-LaRouche said in her international strategic webcast today, while the Helsinki summit was historic, and a “breakthrough for civilization” which should make all peace-loving people happy, “we should not be exuberant,” because this is just a first step.

It’s a first step in the direction of putting an end to geopolitics, Zepp-LaRouche emphasized, because “as my husband, Lyndon LaRouche has said since 1997 at least, that in order to break the control of what we call the British Empire … you need a great power alliance, including the United States, Russia, and China, and preferably India…. But you need an understanding of these large nations which are both economically and militarily the strongest ones, and also in terms of demography, who have the most population, in order to define a New Paradigm, a new set of international relations.

“And while we are still very far away from that … China has created the New Silk Road dynamic … and more and more countries are joining with the New Silk Road perspective, in which one big component of it is the very deep strategic partnership between Russia and China. And it is noteworthy that both Trump and Putin at the Helsinki summit, were talking about their ‘mutual good friend Xi Jinping.’ And it’s also very important that China welcomed this summit, and said that it does greatly contribute to saving world peace and bring the world into order….

“So, it is an important step. Obviously, the world is in a very rapid strategic realignment, including India, including Japan, including African nations, Latin American nations; and this is a good directionality. But a lot will depend on getting to the bottom of Russiagate, and if the United States and Russia work together to investigate that, which they’re now set to do with this committee on cyber-war [agreed upon by the two Presidents], then I think the danger can be eliminated. But that remains an important step.”

Zepp-LaRouche pointed out that a preliminary form of the new financial architecture already exists, in the form of many financial institutions associated with the New Silk Road which are already lending to the real economy. But what is imperative now is an international debate on forging a New Bretton Woods agreement, “that could be set up pretty much according to the model of the old Bretton Woods system,” Zepp-LaRouche said. An international debate on this is urgently needed “because the biggest problem, one of the really big, threatening problems in the background, is the potential of a disorderly financial collapse. That must be countered, by setting up a new financial architecture, and as I said, with the New Silk Road, with the Belt and Road Initiative, you already have the framework of the kind of model of cooperation among nations which is needed.

“That is why the Schiller Institute is making such an effort to convince people of the benefits it would have for every country to participate in the New Paradigm, because that would be really the best way to have an orderly transition into a new set of international relations. And that is not an option: I think this is an absolute must, if we want to avoid chaos, and out chaos there is always the danger of war.  So this discussion is very timely and very urgent.”

U.S. POLITICAL & ECONOMIC

President Trump Has Invited Putin to the White House—Discussions Are Under Way

July 19 (EIRNS)—White House Press Secretary Sarah Huckabee Sanders tweeted this afternoon that President Trump has invited President Putin to the White House this fall. “In Helsinki, @POTUS agreed to ongoing working-level dialogue between the two security council staffs. President Trump asked @Ambjohnbolton to invite President Putin to Washington in the fall and those discussions are already underway,” referring to the President of the United States and National Security Advisor John Bolton.

In a morning tweet, President Trump had said, “The Summit with Russia was a great success, except with the real enemy of the people, the Fake News Media. I look forward to our second meeting so that we can start implementing some of the many things discussed, including stopping terrorism, security for Israel, nuclear proliferation, cyber attacks, trade, Ukraine, Middle East peace, North Korea and more. There are many answers, some easy and some hard, to these problems—but they can ALL be solved!”

Later, he tweeted “The media is going Crazy!

“The Fake News Media wants so badly to see a major confrontation with Russia, even a confrontation that could lead to war. They are pushing so recklessly hard and hate the fact that I’ll probably have a good relationship with Putin. We are doing MUCH better than any other country!

“They make up stories without any backup, sources or proof. Many of the stories written about me, and the good people surrounding me, are total fiction. Problem is, when you complain you just give them more publicity. But I’ll complain anyway!”

In any case, the fake news hysteria against the Helsinki summit in no way represents the view of the American people. The latest Axios/SurveyMonkey poll released today shows that 79% of Republicans approved what President Trump said in his press conference with President Putin. Only 18% disapproved.

Putin References ‘Certain Forces in America’ Trying To Destroy Helsinki Achievements

July 19 (EIRNS)—In the course of a wide-ranging address to Russian ambassadors brought to Moscow for an annual meeting, President Vladimir Putin remarked on the Helsinki summit and those “Americans” who are deriding it.

“We need a new, positive agenda aimed at collaboration and attempts to find common ground. Of course, I discussed this during my meeting with the President of the United States, Mr. Trump.

“With our views being different on many matters, we agreed that Russia-U.S. relations are deeply unsatisfactory and in many ways even worse than during the Cold War.

“Of course, it would be naive to believe that the problems that piled up over years would be resolved in a matter of several hours. No one was counting on this. However, I believe that we have embarked on a path to positive changes.

“Importantly, a full-fledged summit with an opportunity to talk directly has finally taken place. It was overall successful and led to productive agreements.

“We will have to wait and see, of course, what turn the events will take, all the more so as certain forces in America are trying to downplay and disavow the results of the Helsinki summit.

“To digress from the main subject, I would like to say a few words on a personal note, so to speak.

“We see that there are forces in the United States that are willing to sacrifice Russia-U.S. relations to promote their ambitions amid the domestic political strife in America. They are ready to sacrifice the interests of their businesses, which are losing multimillion-dollar contracts and the Russian market in general, as well as jobs in the United States, even though not many, but still there are jobs in place as part of cooperation with Russia. We are talking about tens of thousands, potentially hundreds of thousands, of jobs.

“They are ready to sacrifice the interests of their allies in Europe and the Middle East, in particular, those of the State of Israel. Among other things, we discussed security at the Golan Heights during the operation in Syria. Apparently, no one is interested in it. They are ready to sacrifice even their own security.

“I would like to say that the New START Treaty will expire in 2021. Generally speaking, we could have lived without it even several years ago, but we took the correct step when we signed it. Unless we start working right now to coordinate its extension, it will cease to exist in a year and a half. We will simply not have this treaty.

“When I spoke about these forces, you know, this does not fit our political philosophy, because we have always been taught that officials working in the interests of the state, of society must think above all about and give priority to these fundamental interests. Unfortunately, there are forces in the United States that put their narrow group and party interests before national ones.

“Our famous satirical writers once wrote about such people, ‘Miserable, wretched people!’ But this is not quite so, at least not when it comes to this case. These are not miserable or wretched people. No, they are powerful and strong people who can shove—sorry for the mauvais ton—unbelievable and illogical stories in the face of millions of their citizens. Yes, they can really do this.

“I am not saying this to scold or commend anyone. Absolutely not. I am saying this so that we take this into account in our practical work in the American direction. These are the facts of modern life.

“Nevertheless, Russia is open to further contacts with the United States on an equal and mutually beneficial basis. This is what not only our people but the world as a whole need. As the world’s largest nuclear powers, we have special responsibility for strategic stability and security.”

It would be wrong, however, to read Putin’s message without recalling that like most foreigners—and many Americans—he hears much more from the fake-news media than from the actual views of Americans.

Italians Have Constructive Praise for Putin-Trump Summit

July 19 (EIRNS)—Among the few viable political reactions in Europe, Italian Interior Minister and Deputy Prime Minister Matteo Salvini tweeted: “I would like the next summit to take place in Italy, to speak with energy and courage about security, peace, jobs and economic growth. Good job, Presidents!” Minister Salvini heads the Lega party, which is part of Italy’s government.

Giorgia Meloni, head of the Fratelli d’Italia party, stated: “The meeting between the U.S. and Russian Presidents [was] positive, hoping that it puts an end to the insane policy of hostility pursued by the Obama Administration. Russia is a fundamental interlocutor for Europe and the West in trade, security, and anti-Islamic fundamentalism policies. A new dialogue is also the basis to create a lasting peace, reassure Eastern European states, and definitely solve the Ukrainian crisis.”

Russian Embassy Gets Permission To Visit Maria Butina, Jailed in Washington

July 19 (EIRNS)—The Russian Embassy in Washington received permission from U.S. authorities to visit Russian citizen Maria Butina, who has been detained in Washington since July 15, the Foreign Ministry announced on Facebook. Butina, who is being held without bail, has become Special Counsel Robert Mueller’s latest victim. “The embassy managed to obtain permission for consular officers to visit Butina on July 19. We will give her the necessary support,” the statement said.

Butina’s attorney Robert Neil Driscoll denied that she is a Russian agent. He also drew attention to the fact that several months ago, when she came to the attention of local authorities, Butina testified before the Senate Intelligence Committee, providing U.S. lawmakers with requested documents.

“It seems that the FBI is doing a political put-up job instead of carrying out its duty to fight crime,” said Russian Foreign Ministry spokeswoman Maria Zakharova. “We understand that some powers that continue to whip up anti-Russian hysteria are behind all this, as they have been making up bogus stories about Russia’s interference in America’s domestic affairs.

“For our part, we are taking all the possible measures to protect the legitimate rights and interests of the Russian citizen,” she said.

White House Confirms Trump Will Consider Cooperating with Putin on Browder Case

July 19 (EIRNS)—The White House has confirmed that President Donald Trump and Russian President Vladimir Putin discussed Putin’s request for cooperation on the case of U.S.-born British financier Bill Browder and the questioning of other suspects and witnesses. White House Press Secretary Sarah Sanders said on July 18 that the two Presidents had a conversation on the issue and that Trump would work with his team about the possibility of Russia’s questioning of Obama’s Ambassador to Russia Michael McFaul and other officials over the Browder case according to TASS.

Browder has gone berserk over this, telling Fox News: “The idea that the White House and Donald Trump would be considering handing these people over and me over to the Russians is just appalling. It’s effectively treason to hand over patriotic people who’ve been trying to do the right thing, and they’d better come out quickly and walk that one back. Otherwise, this is truly a litmus test for the Trump Administration.”

The Russians have accused Browder, founder of Hermitage Capital Investment Group, and his allies of funnelling $1.5 billion out of Russia into safe havens, including $400 million into the U.S. Democratic Party.

As for Browder being a “patriotic America”—note that he gave up his U.S. citizenship to become a British subject.

NEW GLOBAL ECONOMIC ORDER

China-Africa Collaboration Featured in Rwanda Daily, as Xi Jinping Prepares To Visit

July 19 (EIRNS)—As China’s President Xi Jinping embarked today on his trip through the United Arab Emirates, Senegal, Rwanda, South Africa, and Mauritius, the New Times of Rwanda published an article highlighting the mutual benefits of China-Africa cooperation. President Xi will be in Rwanda on July 22-23, the first Chinese President to visit in recent history.

The article pointed out that “as a constructive new model, it has promoted the progress of the African development agenda, helped Africa to industrialize, develop economies, reduce poverty and inject vitality into the overall development of the continent. The Forum on China-Africa Cooperation (FOCAC) has given Africa an alternative to North-South cooperation.

“The economic complementarity between China and Africa is strong and growing. Chinese companies are very active on the African continent. At present, there are more than 2,000 Chinese enterprises investing actively in Africa. They train workers and solve employment problems, increase local taxes and improve the living standard of the people,” wrote author Paul Ntambara. In addition, he pointed out that “at present, the trade volume between China and Africa has exceeded more than $200 billion. China helps Africa build infrastructure, invest and open factories in Africa, and provides Africa with a large number of high-quality and cheap goods. It also buys goods from Africa to promote its economic development.”

Commerzbank, Industrial and Commercial Bank of China To Support Belt and Road Projects

July 19 (EIRNS)—Germany’s Commerzbank and the Industrial & Commercial Bank of China Ltd (ICBC) announced they have signed a Memorandum of Understanding to support projects linked to the Belt and Road Initiative, according to a Commerzbank press release today. “The new partnership covers project financing, capital markets and trade finance, and builds on an existing agreement between the two banks, Commerzbank said. The German lender said it aims to support Belt and Road Initiative-related projects with a business volume of $5 billion in the next five years,” Dow Jones’ MarketWatch reported.

Nikolaus Giesbert, Divisional Board Member of Commerzbank, and responsible for the Global Financial Institutions business, commented that “As a market leader in foreign trade for Germany, it is part of our DNA to guide our clients in their investment ventures abroad. Commerzbank’s strong distribution capabilities in Europe combined with ICBC’s knowledge of the Chinese market will add value for German and European corporates as they navigate business opportunities along the trading corridors, and support Asian companies seeking to do business in Europe,” according to the Commerzbank press release.

In 2017, China topped Germany’s foreign trade rankings with total trading value of €186.6 billion, highlighting the importance of China for Europe’s largest economy.

COLLAPSING WESTERN FINANCIAL SYSTEM

Will China Help Italy Survive after the ECB Ends Quantitative Easing?

July 19 (EIRNS)—According to Corriere della Sera, Italian Treasury Minister Giovanni Tria is planning to visit China to discuss the possibility of Beijing helping to sustain Italian government debt after the end of ECB purchases. This has not been confirmed, but is plausible because Tria has good connections with China.

Someone should suggest that Tria recommend that the Chinese buy Italian debt and reinvest it in a newly created Bank for Infrastructure Investments, to finance, for instance, the infrastructure in Southern Italy which the Chinese wanted to build as far back as 2011, but which was vetoed by the EU and by then-U.S. Secretary of State Hillary Clinton.

Yesterday, Tria presented a new protocol for PPP (public-private partnership) investments and did not address the question of debt. However, he said that investments collapsed by one-third in Italy between 2008 and 2018, and by 50% at the local level. One reason is bureaucratic. New anti-corruption rules mean that it takes up to 15 years to activate investments over €100 million.

This resulted in a situation in which EU118 billion are “immediately activatable” for investment, and have already been counted in the budget, but they cannot be applied because of these and other formalities.

OTHER

Blairite Slanders Corbyn as ‘Anti-Semite,’ as Labour Party Plans for Snap Election

July 19 (EIRNS)—The Labour Party is taking disciplinary action against Dame Margaret Hodge, for calling Labour leader Jeremy Corbyn an “anti-Semite and racist.” Hodge and her late husband were part of the group that created Tony Blair and “New Labour” beginning in 1996. The Hodges and Blairs were neighbors at the time Blair appointed her as Minister for Children, and she has been one of the key figures leading the anti-Corbyn faction in Labour.

Corbyn’s spokesman pledged to take action against Dame Hodge as internal rules forbid MPs from “acting in a way that is disrespectful or brings the party into disrepute.” He also described Hodge’s comments as “clearly unacceptable,” after she told Corbyn personally he was a “fucking anti-Semite and a racist,” according to Huffington Post

Hodge claims Corbyn is anti-Semitic because the party’s national executive refused to incorporate all the points the International Holocaust Remembrance Alliance (IHRA) definition of anti-Semitism into its own definition. These points apparently were related to Israel.

However, the Guardian quoted one senior Labour MP who described Hodge’s behavior as “shocking, bullying, intimidating and grossly offensive,” and said: “It is beyond belief. I can’t understand that anybody would think that man [Corbyn] would have an anti-Semitic bone in his body.”

Of course, the accusation comes the same week that a YouGov poll put Labour five points ahead of the Tories. It was revealed today that the Labour Party is already planning for a snap election ahead of 2022, when the Parliament’s current mandate ends. On July 23, a meeting will be held in London where shadow cabinet members will present plans for a legislative program, which would include a draft Queen’s speech of up to 35 bills and a budget intended to focus on living standards and workers’ rights.

Shadow Chancellor of the Exchequer John McDonnell has been consulting regularly with former Prime Minister and former Chancellor Gordon Brown and Sir Bob Kerslake, the former head of the civil service. An unnamed source cited by the Guardian said the proposed legislative plans must be popular and radical, and include abolishing zero-hours contracts, a mass home-building program, nationalization of key industries, consultations on possible rent control, and lifting the public sector pay cap.

Russian Envoy Shulgin: If Change to OPCW Cannot Be Fixed, Its Days Are Numbered

July 19 (EIRNS)—Russia’s envoy to the Organization for the Prohibition of Chemical Weapons Alexander Shulgin told Sputnik today that the decision to expand the OPCW’s powers by allowing it to attribute responsibility for chemical attacks must be reconsidered. “It was adopted by a minority. We have made it clear that we will not execute it and will do everything possible to rectify the situation. If the situation cannot be fixed, the days of the OPCW are numbered, at least as far as its truly universal character is concerned,” Shulgin said.

“Any attributive functions in the OPCW, delegating the [OPCW] Technical Secretariat functions of identifying perpetrators behind the use of chemical weapons, is a direct encroachment on the UN Security Council’s prerogative,” Shulgin stated.

The OPCW Fact-Finding Mission to Syria is biased, it blindly follows orders of the Western member states, and Moscow will fight to change that, Shulgin said, referring to its probe into an alleged chemical attack in Douma—alleged by the pro-ISIS White Helmets in April. “The FFM obediently types everything that the representatives of the Western group suggest. We will seek a radical change in the situation in the [OPCW] Technical Secretariat,” Shulgin asserted.

In late May, the United Kingdom called a special session of the OPCW, at which it proposed the change in OPCW’s powers from verifying adherence to the Chemical Weapons Convention. Under the Convention, only the UN Security Council is authorized to make such a determination. OPCW had not, until now, assigned responsibility for violations of the CWC—when it dutifully charged Syria with the infraction. The British-instigated change was forced through in June.

 

 

 

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