EDITORIAL

Zepp-LaRouche in Moscow: The Strategy for Building a Community for a Shared Future of Mankind

Oct. 28 (EIRNS)—Schiller Institute President Helga Zepp-LaRouche traveled to Moscow this week, to deliver a major presentation to the 23rd International Academic Conference of the Russian Academy of Sciences’ Institute of Far Eastern Studies. On the eve of the U.S. midterm elections, and with British-orchestrated tensions escalating between the U.S. and Europe on the one side, and Russia on the other—as with China—Zepp-LaRouche provided a clear perspective for solving the existential crisis facing mankind.

“There are two game-changing topics in the near future, which will create totally opposite pathways for the future. The first one concerns the monumental battle fought out at this point in the U.S., where either the coup attempt against President Trump will be successful … in order to prevent him from realizing his intention to put the relationship between the U.S. and Russia on a good basis…. Or, if Trump can consolidate his position, despite the many hawkish tones coming from the U.S. now, there does exist the potential that he will be able in the second half of his first term to improve the relation with Russia and return to his initial positive attitude towards China.”

The second central issue facing mankind, Zepp-LaRouche stated, is to devise a solution “which addresses the existential dangers for all the nations and thus shift the level of discussion and thinking to a higher plateau. What my husband, Lyndon LaRouche, had already proposed several years ago is still valid: The four most powerful nations in the world, the U.S., Russia, China and India—supported by others, like Japan, South Korea and others—must set up in the short term a New Bretton Woods system.”

Indicative of the potential for that new order was the just-concluded visit to China by Japanese Prime Minister Shinzo Abe. Choosing to address their historical disputes in the new framework being created around China’s Belt and Road Initiative, Abe emphasized that the two countries were now ringing in a new era, not based on “competition” but on “cooperation.” This is similar to the breakthrough achieved by U.S. President Trump and North Korean Chairman Kim Jong-un at their June 12 summit, which Zepp-LaRouche has referred to as the “Singapore Model” of relations among sovereign nations based on development and peace.

The nations of Europe and Ibero-America are likewise increasingly turning to this emerging New Paradigm.

As Zepp-LaRouche put it in her opening words in Moscow: “The big question which should concern all thinking human beings on this planet, is essentially the same which was hotly debated in the young American Republic, as reported in the Federalist Papers: Is human society capable of an efficient form of self-government? Only that, this time, it is not a question of one nation; it concerns all of humanity: the need for a new paradigm in the world order.”

THE NEW GLOBAL ECONOMIC ORDER

Abe Visit Moves Japan and China ‘from Competition to Cooperation’

Oct. 26 (EIRNS)—Japanese Prime Minister Shinzo Abe began a three-day visit on Oct. 25-27 to Beijing for a summit with Chinese President Xi Jinping, the first such summit since 2011.  The main goal of the visit is to transform relations from that of competition to cooperation, especially concerning Japanese cooperation in the Belt and Road Initiative. Some 500 Japanese businessmen accompanied Abe on his visit.

Abe has held substantive meetings with Chinese Prime Minister Li Keqiang, the chair of the National People’s Congress Standing Committee Li Zhanshu, and Chinese President Xi Jinping.

Abe’s repeated message, as he emphasized in his joint press conference with Prime Minister Li, was that Japanese-Chinese relations have entered a new phase, moving “from competition to cooperation…. We want to expand our relationship significantly. We are neighbors. We are partners cooperating with each other. We have to avoid becoming a threat to each other.”

President Xi opened his talks with Abe, stating that “as the international situation changes, China and Japan are becoming increasingly dependent on one another. Our countries also have a growing number of common interests and concerns on a multilateral level. The rapid changes in the world are providing China and Japan with opportunities for more in-depth cooperation.”

Reflecting on the historical relations between the two countries, Xi said that “China and Japan have interacted for more than 2,000 years. The people of our countries have long been learning from each other and achieving developments. In that long history, there were deplorable times and the Chinese people suffered tremendously.”

Abe reiterated to Xi his above message, that his visit is “an opportunity to elevate the Japan-China relationship to a new phase from competition to cooperation…. [W]e want to work with China for the peace and stability of the world, and the region, and that’s what countries around the world expect of us.”

The Japanese daily Asahi Shimbun reported that Li Keqiang and Abe confirmed that the two countries will jointly promote infrastructure projects led by Japanese and Chinese private companies in third countries. Chinese state radio reported that Li welcomed Japan to actively take part in China’s Belt and Road Initiative, and in China’s reforms and the opening up of its economy,

Speaking on the sidelines of an economic forum of 1,400 business and government official on Oct. 26, Abe pointed out that “Infrastructure projects in Asia are expected to be worth $1.7 trillion annually by 2030. It won’t be easy for companies in one country to tackle this demand and overcome the accompanying challenges.” He stressed that projects led by Japanese and Chinese firms in other countries must follow international standards.

All kinds of agreements were signed, between the leaders and between Chinese and Japanese businessmen. A key one is that annual high-level dialogues that have been suspended for years will be reestablished, for instance between Foreign Ministers. Others reportedly include agreements to work together on a total of 52 joint projects, including urban development in a special economic zone in eastern Thailand and establishing a new fund with banks and securities firms; to accelerate talks on jointly developing gas fields in the East China Sea; and a decision to revive a $30 billion currency swap pact dropped in 2013.

Spain Belt and Road Cooperation Greatly Strengthened with Industry Minister’s Visit to Beijing

Oct. 28 (EIRNS)—During her current visit to Beijing, Spain’s Minister of Industry, Trade and Tourism Reyes Maroto was unexpectedly received by CPC Political Bureau member and top foreign policy architect Yang Jiechi. Yang transmitted to her President Xi Jinping’s invitation to Spain’s new Prime Minister Pedro Sanchez to not only attend next year’s second Belt and Road Forum for International Cooperation in China, but also to participate in the round-table chaired by President Xi Jinping himself at that summit.

It is unlikely that China would have publicly announced the invitation unless they had already been assured that Sanchez would accept it. Readers will recall that former Spanish Prime Minister Mariano Rajoy was one of the few European heads of government wise enough to attend the first Belt and Road Forum on May 14-15, 2017; so far, the Sanchez government has remained notably silent on the subject of the Belt and Road.

The Spanish wire service EFE reported that Yang, “one of the leaders who is closest to the country’s President Xi Jinping,” transmitted the invitation, and that “Spanish government sources considered it ‘extraordinary’ that Yang, former Foreign Minister and one of the most influential people in the Chinese government, had received the Spanish minister…. According to these same sources, this shows that China has given great importance to the upcoming visit to Spain by Xi Jinping, which is scheduled for later this year”—Nov. 27-29. EFE further reported that Yang thought it possible that Spain could become a “hub” for Chinese goods shipped to the European Union and broader markets.

Maroto, for her part, expressed Spain’s willingness to work with China, to “strengthen Spain’s strategic situation and gain access to China’s enormous market, in addition to strengthening Spain’s key role with respect to Latin America and the north of Africa.” She further said that Xi’s forthcoming trip to Spain “also places Spain on China’s map…. The potential for Spain with China is immense and China can find in Spain an important country in which to invest…. Our work with the Chinese government is to use Spain as a platform so that China and Spain can work in Latin America, and at the same time both can work in Asia through the Belt and Road, which is a project that Spain is very interested in.”

A communiqué issued by China’s Foreign Ministry after the Maroto visit emphasized that China hopes that Spain “will participate actively in the construction of the New Silk Road.”

In addition to visiting Spain Nov. 27-29, Xi Jinping will also make a state visit on Dec. 4-5 to Portugal, which shares the Iberian Peninsula with Spain. The potential of both Iberian nations to play a key role linking the BRI with Ibero-America and Africa, is elaborated in the just-released Schiller Institute special report, “The New Silk Road Becomes the World Land-Bridge: A Shared Future for Humanity, Vol. II,” in its chapter: “Spain and Portugal: The World Land-Bridge’s Bridge to Africa and Ibero-America.”

New Silk Road Continuing Economic Growth, as U.S. Firms To Attend China Import Expo

Oct. 26 (EIRNS)—Economic activity and infrastructure construction are continuing their healthy growth along the Belt and Road Initiative (BRI) in 2018 thus far, according to data released today by the Chinese Ministry of Commerce, reported Xinhua. The economic figures were for the first three quarters of 2018, for the economic relations between China and 61 other BRI countries during the first three quarters of 2018.

Trade among these countries reached the equivalent of $860 billion for January-September 2018, up by more than 13% from the same period in 2017. Composition of the trade showed Chinese exports of about $485 billion, up 7.7%; and Chinese imports of about $390 billion, up much more sharply by 20.9%.

China’s foreign direct investment in these nations, excluding financial investments (partnerships), was $10.78 billion, up 12.3% from 2017. Some 60 new “economic zones” and infrastructure corridors have been created. The ministry said that 245,000 “local” jobs have been added on those projects, and $2.01 billion in taxes and fees have been paid by Chinese companies to other sovereigns.

The first China International Import Expo (CIIE) will take place in Shanghai, over Nov. 5-10, highlighting areas where China is seeking to increase its imports. While no high-level U.S. officials are attending, some 180 American companies, including some of the largest, have registered for the Expo.

U.S. POLITICAL AND ECONOMIC

Trump Tells Rally He Intends To Get Along with All Countries— Including Russia and China

Oct. 28 (EIRNS)—Contrary to the British intentions to create conflict and to sabotage a potential Four Powers agreement, President Trump has been restating his intention to establish good relations with all countries—including Russia and China—in all recent campaign appearances. Using the rhetoric of political organizing, not stuffy diplomacy or academic think-tanks, Trump has been making clear what his policy is and effectively organizing support for it from the American people. Here is a sample from his rally in Murphysboro, Illinois on Oct. 27:

In speaking about his trade policy: “So we’re in a little dispute with China. We put $250 billion worth of tariffs on China. At 25%. And I think we’re going to make a deal. I have a feeling that everything’s going to work out. They want to make a deal. I said ‘You’re not ready yet.’… And with China, that’s the big one. China has been averaging $500 billion for many years. And I told President Xi, who I like a lot. He’s the President of China, strong, smart. I said, ‘I don’t blame you.’ I was giving a speech in China and I was ranting and raving about how China’s been ripping off the country, but I realized I was in China and this wasn’t playing well. I said, ‘This speech is not playing well.’ And I looked at President Xi, he was looking up at me as if to say, ‘What the hell is this all about?’ And I looked at him and I said, ‘But I don’t blame you.’ And he felt better. But he wanted to know why. I said, ‘I don’t blame you, because our leaders were missing in action. They should have never let it happen.’ ”

On North Korea: “Just like they should have never let the whole situation in North Korea happen. But we’re doing great there now. No more rockets, right? No more missiles, no more nuclear testing. We’re getting our hostages back. And we have a great relationship with Kim Jong-un. So, there’s not much they can say. We’re getting along great. North Korea is going to be great. That location is so good. Between China, Russia and South Korea. What a location. It’s going to be fantastic. But they [the establishment and the media] go after President Trump. They say it’s not going fast enough. Remember when I came in or just before I came in, everyone was saying this is going to be nuclear war. Who knows. I can’t say for sure. All I can say is the relationship is really good and we’re in really good shape and they’re happy and we’re happy, and if it takes long, I couldn’t care, as long as there’s no nuclear testing.”

On Russia: “I had a great meeting with Vladimir Putin. I talked about everything. We will do great. And don’t forget. Russia wants our help economically. Russia wants us to be involved. But they said, ‘He was too nice to Putin.’ So, with one I was too rough and with the other one I’m too nice. But if I walked up to President Putin and started a boxing match, they would have said I was too tough. In other words, it makes no difference. But we had a very successful meeting with Russia and President Putin and we’re just doing great. And we’ll end up getting along great with Russia, well with North Korea, well with China after we equalize out. It’s because of the economy. If we can help other countries, and that includes the big ones and the small ones. I want to help them. We want to get along with everybody, but we want to have a level playing field, not what we had before.”

Secretary Pompeo Denounces Belt and Road, Says ‘We Will Oppose Them at Every Turn’

Oct. 27 (EIRNS)—Secretary Mike Pompeo said Oct. 26 that China’s Belt and Road Initiative, and even China’s space program, are a “risk to the American people,” and the U.S. will “oppose them at every turn.”

Speaking yesterday on the Hugh Hewitt Show on internet radio, Pompeo said: “Whether that’s a risk through the stealing of intellectual property, or trade rules that are unfair, or activity in the South China Sea, or their continued expansion in space and their efforts to develop their military, each of those actions has been met with a strong and vigorous response from the United States of America and we’ll continue to do so.”

Hewitt reported that Gen. Stanley McChrystal had been on his show, who said President Xi Jinping is now using the model of the Treasure Fleet of Zheng He in the 14th and 15th centuries as his model for “Chinese expansionism across the globe.” This is ironic, since the Zheng He voyages were peaceful diplomatic and cultural exchanges—but McChrystal argues they were imperial efforts to control the world.

Pompeo replied: “I think if you go look at President Xi’s stated intentions, you can clearly see that China has a plan that is different than the one that they had five years ago or even two or three years ago. You see this in their ability to use their money around the world. I spoke to it when I was in Panama, and I travel the world. I remind countries we welcome commercial competition with China on a fair and reciprocal basis, but when China shows up with bribes to senior leaders in countries in exchange for infrastructure projects that will harm the people of that nation, then this idea of a treasury-run empire build is something that I think would be bad for each of those countries and certainly presents risk to American interests, and we intend to oppose them at every turn.”

‘Officials’ Seek To Sabotage Trump-Xi Trade Resolution at G20

Oct. 26 (EIRNS)—It appears that “senior White House officials” are trying to ensure that no resolution on U.S.-China trade and economic relations comes from the meeting of Presidents Donald Trump and Xi Jinping at the G20 in Argentina; and may be trying to sabotage the meeting itself. National press including the Wall Street Journal have reports based on the anonymous “officials,” that the United States will refuse to discuss trade with China until it makes a specific written proposal to end subsidies, end alleged technology theft, etc.

This has forced the head of the U.S.-China Business Council John Allen to urge Chinese officials to produce a written proposal, he told the Journal. American businesses are urgently hoping the two Presidents can reach a solution at the Nov. 30-Dec. 1 G20 summit.

But according to the Journal, “ ‘Show us your list,’ the senior White House official said, or no negotiations would take place before G20.” China did this in the late 1990s WTO negotiation, and the Clinton Administration published the Chinese proposal, leading to a large backlash in China against Prime Minister Zhu Rongji. It will not do so again.

President Trump could, in a meeting with Xi, reject this provocative approach completely.

The policy itself, of tariffs on China, continues to not “work,” making clearer that reducing trade deficits is, in fact, not its real aim. The September U.S. trade deficit grew once again, to $76 billion, another record, and the deficit with China continued to enlarge, to $36.5 billion. Currency speculation has driven the yuan down right to the edge of 7/dollar (a 14% decline this year).

More generally, third-quarter economic figures released by the Commerce Department today showed that trade subtracted significantly from American GDP growth. GDP grew at a 3.5% annual rate, compared to a 4.3% rate in the second quarter. The other factor pulling GDP down was a dramatic drop in business capital expenditures, which fell essentially to a zero growth rate. This investment is hit by trade uncertainties; but it is really falling due to corporate overindebtedness and debt downgrades.

The 3.5% growth announced was dominated by consumer spending (driven by greatly increased revolving-credit debt) and government (particularly defense) spending.

Detroit NAACP, Community and Religious Leaders Slam Marijuana Legalization Initiative

Oct. 26 (EIRNS)—NAACP and other black community leaders have spoken out against Proposal 1, the Michigan ballot initiative which would legalize marijuana possession, consumption, and growing up to 12 marijuana plants at home. If passed on Nov. 6, Michigan would become the first Midwest state to move further down the drug slope after “medical” marijuana.

“Proposal 1 supports the very issues that are harming our neighborhoods and killing our families. Legalizing marijuana does not help our education system. It would not provide more jobs, it would take them away. It does not lead to better health care. It puts our health in danger,” Kamilia Landrum, deputy executive director of the Detroit Branch NAACP, told a press conference on Oct. 23.

Rev. Horace Sheffield, representing the Detroit Association of Black Organizations, joined in opposition. Reporting that he was once an addict, and he fears the effect of the measure on young people. “This further imperils our youth who already are economically disadvantaged. It also stymies their educational pursuits. This is not a drug that should be legal.”

The conference was organized by “Healthy and Productive Michigan,” a committee set up to defeat the legalization initiative; the committee has backing from diverse groups ranging from the Detroit NAACP, to Michigan’s Chamber of Commerce, Sheriffs Association, Association of Chiefs of Police, Association of Treatment Court Professionals, and others. Healthy and Productive Michigan reports that 73 county sheriffs, 56 county prosecutors, the Michigan Catholic Conference Board of Directors and the Michigan State Medical Society also oppose the measure.

Senate Republican candidate John James also opposed its passage in his Oct. 15 debate with his Democratic opponent, incumbent Sen. Debbie Stabenow—who voiced her support for this measure, which is intended to expand the deadly drug epidemic.

Polls still claim 60% of voters support the proposal.

STRATEGIC WAR DANGER

In Battle To Control Washington’s Russia Policy, London’s Neo-Cons Target Sen. Rand Paul

Oct. 28 (EIRNS)—A venomous article by neo-con Eli Lake published by Bloomberg Oct. 23 goes after Sen. Rand Paul, under the headline “Rand Paul’s Campaign To Appease Russia Comes to Congress.” Part of the broader British Empire campaign to poison any possibility of President Donald Trump and Vladimir Putin sitting down for a reasonable discussion—as is now planned both on Nov. 11 at the Paris Armistice Day ceremony, and then again next spring in Washington, D.C.—Lake was conveniently leaked a copy of a State Department cable regarding a letter which Paul sent to U.S. Ambassador to Russia Jon Huntsman. In the letter, Paul reportedly asked Huntsman to address the weekly lunch of the Republican Steering Committee on the “importance of renewed dialogue” with Russia, as many of his Congressional colleagues display “hysteria” over Russia.

Lake writes: “The unusual request [sic] is part of Paul’s larger campaign to smooth the way for a possible rapprochement between Trump and Putin…. Paul is also using his personal relationship with Trump to make the case for a softer Russia policy. According to the cable, Paul pressed the President and Chief of Staff John Kelly to begin formal negotiations with Russia on two arms control agreements,” including the Intermediate-Range Nuclear Forces (INF) Treaty. Paul asked Trump to plan talks on the treaties before Putin’s tentatively scheduled visit to Washington next spring.

And then comes Lake’s punch line: Sen. Paul “is interested in making a deal with the Russians. A few months ago it looked like Trump agreed. Fortunately, it appears the President has started to come around to the view of Paul’s Republican colleagues on the pointlessness of negotiating with liars.” That, at least, is London’s intention—but it is not Trump’s stated policy.

Lavrov Discusses Russian Response to Bolton Visit, U.S. Decision To Pull Out of INF Treaty

Oct. 28 (EIRNS)—Russian Foreign Minister Sergey Lavrov told Rossiya 1 TV today that, in Putin’s meeting last week with U.S. National Security Advisor John Bolton, “President Vladimir Putin had said very clearly that we understand that this is their decision [to pull out of the INF Treaty], and there is no way we can influence it. We have voiced our reasons and hope that they kept them in mind when making their decision,” he said.

Lavrov further said that Europe is nervous about the U.S. decision. “We see the reaction. This decision has made the Europeans nervous,” he said, and that German Foreign Minister Heiko Maas had told him about that in a telephone conversation, according to TASS.

Lavrov continued: “Now, many in NATO say that NATO’s members are to be consulted with, while taking a decision about the INF Treaty’s future. I don’t know how the North Atlantic alliance is going to tackle this issue, but at least John Bolton was quite straight when saying that the United States is primarily focused on the Asian direction where it wants to compensate for the unfair lack of intermediate- and short-range weapons,” Lavrov said. “There are questions, especially to the Americans who change their position too frequently.”

“The Anti-Ballistic Missile Treaty has vanished and all our attempts to establish any reasonable dialogue with the United States and NATO amid the lack of the agreement have not found an echo, and the INF Treaty will soon disappear while the fate of the New START Treaty is unclear,” Lavrov said. He said that Putin and Bolton had agreed on the importance of holding a bilateral dialogue on all issues related to strategic security.

COLLAPSING WESTERN FINANCIAL SYSTEM

Bernie Sanders and Yanis Varoufakis Setting Up ‘Progressives International’ Countergang

Oct. 27 (EIRNS)—Former Greek Finance Minister Yanis Varoufakis announced in Rome yesterday that he and Sen. Bernie Sanders plan to officially launch a “Progressives International” in Vermont on Nov. 30. They openly declare this to be a “right vs. left” gang-countergang operation against what they label the “extremist alliance of nationalist political figures.” The Queen is smiling.

While conveniently pointing to Steve Bannon, “who is working to garner voter support for right-wing parties ahead of the May 2019 European Parliament elections,” their real targets are named: “immigration critics such as Italian Deputy Prime Minister Matteo Salvini and German Interior Minister Horst Seehofer,” and, of course, Donald Trump.

Also making clear that this is a British Empire countergang (it has all been covered extensively by the Guardian), they call for “a common council that draws out a common blueprint for an International New Deal, a progressive New Bretton Woods.” FDR would roll over in his grave at seeing his policies connected to this mess, which Varoufakis describes as promoting a “progressive, ecological, feminist, humanist, rational program.”

“The financiers are internationalists. The fascists, the nationalists, the racists—like Trump, Bannon, Seehofer, Salvini—they are internationalists,” Varoufakis said. “They bind together. The only people who are failing are progressives.”