EIR Daily Alert Service, WEDNESDAY, NOVEMBER 14, 2018

 

EDITORIAL

The World Is Unsettled, Dangerous—Just the Right Conditions for Pulling Off a Miracle!

Nov. 13 (EIRNS)—Much in the world is unsettled, and very dangerous. But viewing things from above, and not getting stuck “inside” any one place or issue, we can see that conditions exist for intervening in a way to pull off a miracle, to enter a new phase for advancement for humanity. What is required is for leaders of the great powers—the United States, China, Russia, India and more—to initiate a dialogue for bringing into being a new, development-focused financial system—a “New Bretton Woods”; plus for nations to take domestic measures in accordance with this.

The positive dynamic for development is highly visible in Asia this week, where nearly 16 heads of state are gathering for group and bilateral meetings, centered on the ASEAN meetings in Singapore today through Thursday; the East Asia Summit is Nov. 14-15; after that, the APEC Economic Leaders Week Nov. 12-18 in Papua New Guinea. Present in Singapore are presidents or prime ministers from Russia, China, India, South Korea, Japan, Indonesia, Malaysia, Australia, New Zealand and many more. Chinese Premier Li Keqiang addressed business leaders today in Singapore. Asked about U.S.-China relations, Li said that, “as long as we uphold equality to manage disagreements and differences, and expand common interests and benefits, this will benefit both countries and the world.”

On Thursday, President Xi Jinping will give the keynote to the APEC CEO meeting in Port Moresby, P.N.G. Xi’s visit also includes special meetings with leaders of Papua New Guinea, for the larger purpose of furthering the Maritime Silk Road throughout the Pacific Islands. From Nov. 15-21, Xi’s tour takes him from Papua New Guinea to Brunei, thence to the Philippines. At his last stop, one of the new commitments between China and the Philippines is for a facility focused on the production of magnetically-levitated trains for the Asian region.

These positive Asian events spotlight the venality of French President Emmanuel Macron imposing an agenda on the Paris World War I Armistice commemoration on Nov. 11, so that President Donald Trump and President Vladimir Putin, and other world leaders, could not have leeway to meet and discuss strategic matters of peace and security, potentially moving the world in a positive direction. Trump had several choice tweets today about “Emmanuel,” e.g. “The problem is that Emmanuel suffers from a very low Approval Rating in France, 26%, and an unemployment rate of almost 10%….” Trump concluded: “Make France Great Again!”

In less than two and a half weeks is the precious opportunity for Trump and Putin, as well as Trump and Xi Jinping, to confer at the Nov. 30-Dec. 1 Group of 20 meeting in Buenos Aires, for potential diplomacy toward a New Paradigm of economic development and peace. It is critical to rapidly expand and deepen the international support constituency for a “New Bretton Woods” by the time of this meeting. (It is of note that Chinese State Councillor and Vice Premier Liu He is said to be having informal talks with U.S. trade officials, some time before the G20.)

In this regard, LaRouchePAC, over the next two weeks, is issuing a series of short-length, animated infographics, to spur peoples’ understanding of how the current Transatlantic “British free trade” system is dangerous and dying; and what is involved in putting into place a “New Bretton Woods” system. For example: Global currency trading has risen to over $5 trillion per day, but how much of that is the trade of currencies for use in any physical economic activity? Only 2%! The rest, 98%, is pure speculative gambling.

A positive example: Why fixed currency exchange rates are key for creating stable conditions for long-term international investment.

Reaching out to people in the United States is crucial, where there is a huge vacuum in policy content, made more acute since the midterm elections, by those drifting into simply thinking of “how to win in 2020!” In discussing this with American colleagues today, Schiller Institute President Helga Zepp-LaRouche stressed what she called “the here and now.” She advised addressing people “above” party, not simply in terms of bilateralism, and presenting the “whole package” of what needs to be done. Make clear the nature of what is involved in the “LaRouche Four Laws.” Expose the rotten nature of the dying Wall Street/London system.

Moreover, Zepp-LaRouche added, “This is not a timeless question” of what humanity should do. At any moment, the pending financial crash can occur, with the consequences of deadly chaos. Plus, war hawk crazies of all stripes, are discussing devising new U.S. weaponry, from the point of view of preparing for war with China and Russia.

This coming weekend, Helga Zepp-LaRouche is addressing the weekly Manhattan Dialogue, on Nov. 17, by live video hook-up; followed on Sunday, Nov. 18, by the Friedrich Schiller Birthday Celebration Concert, with the Schiller Institute NYC Chorus and Orchestra, featuring Beethoven’s Choral Fantasy and his Mass in C Major, under the theme: “Reunify America…Through Beethoven!”

NEW WORLD ECONOMIC ORDER

Asia, Pacific Heads of State Are in Singapore To Attend Summits

Nov. 13 (EIRNS)—Many Asian heads of state and important national officials are now in Singapore for the ASEAN summit, pre-meetings, and bilateral talks, Nov. 13-15; the East Asia Summit, Nov. 14-15; and afterwards, the APEC meeting in Port Moresby, Papua New Guinea. Attendees include the leaders of India, China, Russia, South Korea, Japan, Indonesia, Malaysia, Australia, New Zealand, and others.

Pre-ASEAN activities by Chinese Premier Li Keqiang, included addressing the 44th session of the Singapore Lecture, attended by over 1,000 persons from the business community. China and Singapore are also engaged in making new accords.

President Xi Jinping will attend the APEC Summit in Papua New Guinea, beginning Nov. 15, when he will address the APEC CEO meeting. After Port Moresby, Xi will visit Brunei, and then the Philippines, ending his junket Nov. 21. Xinhua describes part of the intent of Xi’s tour as opening up the Maritime Silk Road in the Pacific Islands.

Russian President Vladimir Putin arrived today in Singapore on a three-day visit, during which time he was scheduled to hold talks with Singapore’s leadership, and take part in the ASEAN and East Asia Summits. On the sidelines, Putin will meet with South Korean President Moon Jae-in, Japanese Prime Minister Shinzo Abe, Malaysian Prime Minister Mahathir Mohamad, and Indonesian President Joko Widodo.

Today, Putin joined with Singapore’s President Madam Halimah Yacob in a ceremony laying the foundation stone of the Russian Cultural Center and an Orthodox Church in Singapore.

The United States is represented at the ASEAN and APEC summits by Vice President Mike Pence and National Security Advisor John Bolton. Leading up to Singapore, Pence was in Tokyo today, to meet with Prime Minister Abe. Pence spoke of shared “Indo-Pacific” activity, the favored term carrying anti-China meaning, but he agreed on building good relationships with China. He spoke of “a free and open Indo-Pacific that is based upon fair rules.” Pence and Abe agreed to cooperate in increased investment of each nation in the other’s development, and to start talks to negotiate a bilateral trade agreement. This is expected some time at the beginning of 2019. They affirmed collaboration in bringing about the complete denuclearization of the Korean Peninsula, and maintaining sanctions on North Korea until that time.

STRATEGIC WAR DANGER

Full-Scale Gaza War Averted, For Now; Nov. 13 Ceasefire Accepted

Nov. 13 (EIRNS)—Al Jazeera reported today that Palestinian groups in Gaza have accepted a ceasefire after two days of air strikes by the Israeli air force. The latest round of violence between Hamas and Israeli forces was set off on Sunday night, Nov. 11, when an Israeli Defense Forces (IDF) special operation inside Gaza went wrong and ended up engaging in a fire fight with Hamas forces, killing one Israeli officer, wounding another, and killing seven Palestinians. The IDF team managed to withdraw back to Israel under cover of air strikes. Hamas retaliated by launching of barrage of more than 400 rockets into Israel, including dozens as far away as Ashkelon. The IDF responded with more air strikes, claiming to have hit 160 Hamas targets inside Gaza. Seven more Palestinians were reported to have been killed in Israeli air strikes

According to Al Jazeera, the Gaza groups issued a statement saying: “Egypt’s efforts have been able to achieve a ceasefire between the resistance and the Zionist enemy. The resistance will respect this declaration as long as the Zionist enemy respects it.”

In Israel, the security cabinet chaired by Prime Minister Benjamin Netanyahu met for seven hours and apparently decided to accept the Palestinian ceasefire, though, according to a report in the Times of Israel, citing Channel 10 News, four ministers, including Defense Minister Avigdor Lieberman, opposed the decision, but they did not force a vote. The IDF was reported to be maintaining armed aircraft over Gaza and continuing to gather armor and infantry outside the border wall.

Prior to this latest flare-up in violence, Egypt and UN mediator Nikolai Mladenov had been engaged in an intensive effort to mediate a ceasefire between Hamas and Israel, as well as trying to find a solution to the dispute between Hamas and the Palestinian Authority in Ramallah. Where that effort stands now, in the wake of today’s fighting, remains to be seen.

Palermo Conference Marks Step Towards Stabilization of Libya

Nov. 13 (EIRNS)—Government friendly media in Italy, as well as the special UN envoy Ghassan Salamé, describe the results of the International Conference on Libya which took place in Palermo, Italy, Nov. 12-13, as a success. Despite some outstanding absences from Italy’s EU “allies,” all main players from Libya and neighboring countries attended and agreed to a road map towards national elections, to be held as the last stage of a reunification process. The emblematic photo of the summit shows the two Libyan rivals, Tripoli Prime Minister Fayez Serraj and Libyan National Army head Gen. Khalifa Haftar, joining hands together with Italian Prime Minister Giuseppe Conte.

Haftar’s statements reflect the agreement reached on the road map: “You don’t change horses in the middle of the river”; i.e., Serraj can stay as prime minister until the elections.

The road map includes: A General Assembly with all Libyan tribes; the creation of a real military force which is recognized by everyone; union of all institutions which are now split between East and West, and finally holding national elections.

General Haftar did not participate in the plenary assembly because of the presence of Qatar and of an Islamist group from Tripoli. But he joined a smaller group which included Italy, Russia, France, Tunisia, Algeria, Egypt, and UN envoy Salamé, as well as Serraj.

The Turkish representative walked out of the conference in protest for not being invited to the restricted group.

Extremely important was the presence of Egyptian President Abdel Fattah el-Sisi, who is key for his influence on Haftar. Italy-Egypt relations seem to be back on track, after the British-engineered Regeni murder case, in the framework of opportunities offered by cooperation in Egypt’s development goals.

Russia was represented by Prime Minister Dmitry Medvedev. It is not clear who was there for the U.S. government. Tunisia was represented by President Beji Caid Essebsi, and Algeria by Prime Minister Ahmed Ouyahia.

Macron’s absence was taken almost for granted, as Paris views the Italian initiative with hostility. Macron almost sabotaged the Palermo conference, organizing a mini-summit with the Misrata leaders Nov. 8, and inviting the Tunisian President to Paris Nov. 12, the same day of the Palermo conference. France, however, has put on a good face and has sent Foreign Minister Jean-Yves Le Drian.

Angela Merkel’s refusal, instead, came as a surprise a few days before the summit, as the German Chancellor had previously committed to participate.

The Palermo conference was “a success and a major milestone in our common fight to bring back peace, security and prosperity to the Libyan people,” said UN Special Envoy for Libya Ghassan Salamé.

Russian Prime Minister Medvedev said gathering all participants in the dialogue for pacifying Libya is important, but “It all depends 90% on Libyans, on those political forces which were represented here today.” Speaking to RIA Novosti, Medvedev said that “it is not easy at all to build such a kind of dialogue. It is important all be all here to meet, to speak in solidarity with the Libyan people in this difficult moment of their history. But, that it is a complicated situation, you see also from how the representatives of the Libyan delegation interact among them.”

IAEA Maintains Iran Is Still Complying with 2015 Nuclear Deal

Nov. 13 (EIRNS)—The latest report of the UN International Atomic Energy Agency shows that, as of early November, Iran is still in compliance with the Joint Comprehensive Plan of Action, the 2015 nuclear agreement that placed restrictions on Iran’s nuclear program. Some elements of that compliance were reported prior to the latest round of U.S. sanctions kicking in on Nov. 5. However, the agency said that there was “Nothing that indicates that … cooperation from Iran or its attitude has changed since Nov. 5.”

Nonetheless, U.S. National Security Advisor John Bolton spoke of increasing pressure on Iran on his Asian trip. Speaking to reporters in Singapore this morning, Bolton said, “The objective has been from the beginning to get oil exports from Iran down to zero. It is our intention to squeeze them very hard. As the British say: ‘Squeeze them until the pips squeak.’ ”

U.S. Missile Defense Systems Useless vs. China and Russia’s Latest Weapons, Says Mike Griffin

Nov. 13 (EIRNS)—The current ballistic missile defense kinetic intercept systems that the United States has spent tens, if not hundreds, of billions of dollars on will not counter the new weapons being deployed by Russia and China, said Mike Griffin, speaking this morning at the Center for Strategic and International Studies in Washington.

Griffin, the former NASA Administrator, and now the Under Secretary of Defense for Research and Engineering, has the job of developing for deployment the advanced technologies that will allow the U.S. to be ready to meet any strategic threat. “Being ready, maybe we can avoid a conflict. I hope so,” he said.

Griffin said, “We developed the fundamental research in hypersonics decades ago, and chose not to weaponize it.” China, he reported, has done numerous tests of maneuverable hypersonic vehicles, and the U.S. cannot even detect them.

Asked what should be developed in the future, Griffin said directed-energy high-powered microwaves, using electronic means as a counter. The hypersonic threat includes a rapid launch-to-target that is very short term, tens of minutes, Griffin explained. We need a warning system and our ground-based radar systems can’t do that. We need to be able to see them from space.

U.S. POLITICAL AND ECONOMIC

Officials Signal Potential Revival of U.S.-China Trade Talks

Nov. 13 (EIRNS)—The U.S.-China trade talks may soon be resumed in the context of discussion between Presidents Donald Trump and Xi Jinping, including their Nov. 1 phone call and the expected meeting at the Nov. 30-Dec. 1 G20 summit in Buenos Aires. Today’s South China Morning Post reports that discussions are underway to arrange the postponed return of Chinese economic negotiator, State Councillor and Vice Premier Liu He to Washington.

On Nov. 9, Liu He spoke by phone with Treasury Secretary Steven Mnuchin, according to the Wall Street Journal Nov. 12. There are other developments pointing to progress in this direction.

On Nov. 8-9, top Chinese diplomat Yang Jiechi, of the Communist Party Politburo, met with National Security Advisor John Bolton, Secretary of State Michael Pompeo, Defense Secretary James Mattis, and others in Washington. Yang said “China and the United States must work for a solution to end their trade war.” At the same time, in Beijing, State Councillor and Foreign Minister Wang Yi discussed the prospects of U.S.-China economic collaboration with former Secretary of State Henry Kissinger.

Today, Commerce Secretary Wilbur Ross told Yahoo Finance that he expects Chinese officials to arrive soon “for informal talks,” but cautions that no trade deal is necessarily imminent. The Wall Street Journal reports that “some U.S. officials who take a hard line toward China” say the best the G20 meeting can achieve would be “ceasefire in the trade battle”; the U.S. would stop raising tariffs until a more comprehensive agreement is reached.

New York Times Prints New Lies on North Korea To Provoke War and Undermine Trump

Nov. 13 (EIRNS)—The New York Times yesterday issued a major pack of lies aimed at undermining the peace efforts on the Korean Peninsula which have been achieved through the cooperation of President Donald Trump, Russia, China and South Korea, in negotiations with the Kim Jong-un government in North Korea. Under the title “Hidden Bases in North Korea Suggest Deceit,” Times correspondents David Sanger and William Broad lived up to the Times’ usual practice of piling as many lies as possible into the allotted space—“All The Lies That Fit, We Print,” to paraphrase the motto.

The article reports on a study by the neo-con think tank CSIS, using satellite images to “expose” that North Korea has 16 clandestine missile sites, and are expanding some of them, while shutting down another missile site to give an appearance that they are living up to the deal with President Trump.

There are several problems with this claim: First, Korea experts from the 38 North institution in Washington, as well as the South Korean government, point out that there is nothing in the nuclear agreement with the U.S. that calls for shutting down missile sites. Plus, both the U.S. and South Korean governments told Sanger that they had long been monitoring these missile sites, that nothing new had been revealed.

The 38 North response to the daily’s lies, titled “The New York Times Misleading Story on North Korean Missiles” by Leon Sigal, states that the Times was “substituting tendentious hyperbole for sound reporting,” which, he continues, “may convince editors to feature a story on page one, but it is a disservice to readers.” Sigal writes that the CSIS report itself makes no such claim, and even reports that only minor infrastructure changes were observed at the primary site profiled by the Times since Kim Jong-un came to power in December 2011.

Sanger even admits in his article that Kim Eui-kyeom, the spokesman for South Korean President Moon Jae-in, denounced the Times article as a “great deception,” saying: “North Korea has never promised to dismantle its missile bases, nor has it ever joined any treaty that obligates it to dismantle them. So calling this a deception is not appropriate.” Kim further said that this simply shows the urgency of continued diplomacy.

Never one to step back from a chance to denounce President Trump due to a mere lack of facts, Sanger appeared on the New York Times radio show on NPR today, called “The Daily,” to retail the lies about the missile sites, and to “explain” that Trump has lied about the peace process in order to build up his reputation as the great deal maker. Sanger claimed that the situation is far more dangerous than before the June 12 Singapore Summit between Trump and Kim Jong-un, since the North is playing Trump as a fool and building up its nuclear capacity.

Trump also issued a response today: “The story in the New York Times concerning North Korea developing missile bases is inaccurate. We fully know about the sites being discussed, nothing new—and nothing happening out of the normal. Just more Fake News. I will be the first to let you know if things go bad!”

Grassley Released Declassified CIA Correspondence Revealing Clapper-Brennan Crime

Nov. 13 (EIRNS)—Declassified CIA communications released by Senate Intelligence Committee Chair Charles Grassley on Nov. 1 contain evidence that under the Obama Presidency, then-CIA Director John Brennan and Director of National Intelligence James Clapper colluded in violating the legal procedures established to protect legitimate whistleblowers communicating their concerns to members of Congress with oversight responsibilities.

In Summer 2014, Clapper wrote to Grassley (R-IA) and Ron Wyden (D-OR), both founding members of the Whistleblower Protection Caucus of the Senate, with a copy to CIA Director Brennan, assuring them that if the “enhanced surveillance” of intelligence employees uncovered legitimate whistleblowing activity, “there is no intention for such disclosure to be reported to agency leadership under an insider threat program.”

Four months prior to that assuring memo, the CIA’s Inspector General had written a classified memo, which is among those Grassley released Nov. 1, reporting that CIA surveillance had intercepted communications between the office charged with maintaining confidential contact with whistleblowers and relevant Congressional committees. That information was included in a written memo circulated to the CIA leadership.

Thus, these two, whom the Russiagate mob has deemed untouchables, are now publicly revealed as criminals.

This story has been circulated widely, including in an article written for ConsortiumNews by John Kiriakou, a CIA whistleblower who was prosecuted and imprisoned for 23 months by the Obama Administration, and by John Solomon in The Hill of Nov. 4.

COLLAPSING WESTERN FINANCIAL SYSTEM

Italy Finance Minister Tria Blasts EU Commission Deficit Proposal as ‘Suicide’

Nov. 13 (EIRNS)—Speaking on Nov. 9 after meetings with the EU Commission, Italian Finance Minister Giovanni Tria said that in order to avoid EU sanctions, “We would need a very violent fiscal restrictive measure, going to a 0.8% deficit to GDP ratio, which for a strongly slowing down economy would be a suicide.”

In a comment to RAI Agora magazine this morning, French economist Jean-Paul Fitoussi said the Italian government should remain “firm” in its commitments and not back down to EU Commission demands. The Italian plan for a 2.4% deficit is absolutely reasonable, Fitoussi insisted. Fiscal powers are the only powers left to national governments in the EU, and if these are taken them away, Brussels can shut down governments altogether, Fitoussi said polemically.

Meantime, real suicides have escalated in Italy, with 350 in the first six months of 2018—two a day. Many of them are for economic reasons: People losing their job or shop.

French Finance Minister Has Pipe Dreams of an EU Empire against U.S., Russia, and China

Nov. 13 (EIRNS)—In an interview with Germany’s leading business daily Handelsblatt, French Economic and Finance Minister Bruno Le Maire called for more integration and sovereignty for “Europe”; for an EU-wide digital tax as the main venue to prevent new national taxation projects within the EU member states, and, he called for Europe to become an empire, in order to become a real player in global politics.

“It’s about Europe having to become a kind of empire, as China is. And as the U.S. is,” he said. When being asked why he used this term for a future Europe, he replied: “Do not get me wrong, I’m talking about a peaceful empire that’s a constitutional state. I use the term to raise awareness that the world of tomorrow will be about power. Power will make a difference: technological power, economic, financial, monetary, cultural power will be crucial.” Le Maire said he thinks the next EU Summit on Dec. 4 should make the first step in this direction.

‘Chicago Boy’ Joaquim Levy Will Destroy Brazil’s National Economic Development Bank

Nov. 13 (EIRNS)—On Nov. 12, the press officer of Brazil’s Finance Minister-designate, the University of Chicago-trained neo-liberal economist Paulo Guedes, happily announced that the next director of Brazil’s National Economic Development Bank (BNDES) under President Jair Bolsonaro will be another monetarist “Chicago Boy,” former Finance Minister Joaquim Levy.

Levy’s nomination virtually ensures the destruction of BNDES, founded in 1952 in the second Presidency of nationalist Getulio Vargas, which has historically financed large infrastructure development projects—inside and outside of Brazil. Wall Street and City of London-allied forces seeking its privatization or elimination have stepped up attacks on BNDES in recent years, making it a target of the Justice Department/FBI-directed “Lava Jato” (“Operation Car Wash”) “anti-corruption” probe.

Levy, currently chief executive officer of the World Bank, is well suited to carry out Bolsonaro and Guedes’s privatization agenda. During most of 2015, he served as President Dilma Rousseff’s finance minister, imposing vicious austerity, budget-slashing, and usurious interest rates which devastated the economy. Wall Street screamed when Rousseff dumped him in 2015.

Bloomberg on Nov. 12 quoted Elena Landau, the economist who led Brazil’s 1990s privatization, gushing that Levy will “be well-qualified to take charge of selling off state-controlled companies. He’s the right person to head the bank … I expect that he’ll reduce the size of the bank’s portfolio.”

 

 

 

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