EIR Daily Alert Service, FRIDAY, DECEMBER 21, 2018


Volume 5, Number 254

EIR Daily Alert Service

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


‘Money, Money, Money’ Leads to War and Breakdown; Try Creativity for a Change

Dec. 20 (EIRNS)—People engaging in wild hypes against Russia, against China, against President Donald Trump, should think twice, Schiller Institute founder and President Helga Zepp-LaRouche recommended sharply today. “Without the cooperation of the most important countries of this planet, world peace cannot be maintained, and I think that that is the first thing to start with: Because without peace, without the existence of a world, everything else is moot. So, people should really sober up and not go into these hysterical campaigns.”

It is no coincidence that the lies and attacks being spewing against the Presidents of China, Russia and the United States and their nations are reaching astounding lows, in direct proportion to the accelerating speed with which the British imperial neo-liberal system nears its final political and economic breakdown.

It is urgent that the West give up the failed neo-liberal model, which has increased the gap between rich and poor, and go back to the American System whose success has once again been demonstrated, this time in China, Zepp-LaRouche argued in her weekly Schiller Institute webcast today, in discussing these attacks and the dangers they bring.

Here’s how she contrasted the two systems before the world:

“The American System of economy and that system which has been promoted by Gottfried Wilhelm Leibniz, who was the first one to develop this notion of physical economy, and which was subsequently promoted by Alexander Hamilton, by Friedrich List, by Henry C. Carey, and which was for sure developed very much further by my husband Lyndon LaRouche—that system assumes that the only source of wealth is the creativity of the individual, because it’s the ability of human beings to again and again discovery universal, physical principles, which are otherwise called scientific progress. And when you apply that scientific progress in the production process as technology, it leads to an increase in productivity and therefore, an increase in the living standard, longevity and the wellbeing of the population. And that is essentially what the Chinese model is approximating today.

“This is in stark contrast with the neo-liberal monetarist model, the so-called ‘British model,’ which looks not at the creativity of the individual, but at money—money, money, money. And therefore, this monetarist view is quite satisfied if the stock value increases, if the profit increases, if all these things lead to a temporary illusion of an increase in money, which for the most part is virtual. And obviously, we have seen the spread of this neo-liberal system, especially after the collapse of the Soviet Union, where all gaps and stops were taken out and the deregulation of the markets was just going haywire, and that led to the 2008 crash. The remedy was to print more money, they did not correct the causes of the 2008 crash, but went for ‘quantitative easing,’ money printing, defense of the speculators and the banks, and that has resulted in the fact that we are now on the verge of an even bigger blowout.”

Let us go back to those kinds of policies which benefit the common good, she said. “That would mean, today, the Four Laws of Lyndon LaRouche—Glass-Steagall, a national bank, international credit system, crash program for fusion power economy and space cooperation—and then cooperate with the New Silk Road. This entire package must be put on the agenda, if we are supposed to avoid a total catastrophe.”

The world requires a new Renaissance, and that requires people around the world study the works of the great philosophers, to develop their capacity to hear their own inner voice, so as to be able to engage in “self-thinking”, and answer these questions for themselves, Zepp-LaRouche proposed.

“My suggestion for you, for the Christmas period and this season, the season between Christmas and New Year’s, when you always find some time,” she said, “is that this time, you read. Go back to the original writings, of Plato, of Nicholas of Cusa, of Leibniz, of Schiller Institute, of Humboldt, of Einstein, of Vernadsky—and go to these Classical works. And, naturally, Lyndon LaRouche, because his entire work is so full of inspiration and ideas.

“If you go to these Classical writings, then you find advice for your own thinking, and especially, it allows you to hear your inner voice. In this time of smart phones and play-stations and pop music, and all of these distractions, people have forgotten to listen to their inner voice, and their inner conscience, and their ability to self-think. And I think self-thinking is one of the most important virtues which needs to be trained, and if you read these Classical works, including emphatically that of my husband, it helps you and you will find advice for all kinds of problems in the present, both in your personal life, but also what to do politically, and how to help to move humanity to a safer place—namely, the New Paradigm.

“So with that, I wish you a Merry Christmas,” Zepp-LaRouche concluded her webcast.


Putin Welcomes Trump’s Proposed Troop Withdrawal from Syria; British Empire’s Allies Protest

Dec. 20 (EIRNS)—Speaking at his annual news conference today at Moscow, Russian President Vladimir Putin said he agrees with U.S. President Donald Trump who said on Dec. 19 that the defeat of the Islamic State (ISIS) group removes the need for the U.S. military presence in the country. The Russian President said “as for the victory over the Islamic State, I agree with the U.S. President by and large. We’ve achieved considerable changes in the struggle against terrorism in that area and dealt severe blows to the Islamic State in Syria.”

Putin’s welcoming of the U.S. troop withdrawal from Syria is in direct contrast to the British Empire’s allies, who have vented their anger against Trump for not allowing the U.S. troops to serve their purpose any longer. Britain’s Defense Ministry Undersecretary of State Tobias Ellwood, replied to Trump tweet that ISIS had been defeated in Syria with the words: “I strongly disagree. It has morphed into other forms of extremism and the threat is very much alive.”

From Paris, France’s Defense Minister Florence Parly wrote in two Twitter messages, reading as translated from French: “Daesh [ISIS] has been weakened more than ever. It has become clandestine in its rebel mode of fighting. Daesh has lost more than 90% of its territory. Daesh no longer has logistics it used to have.

“But Daesh has not been wiped from the map, nor has its roots. We must definitely defeat the last pockets of this terrorist organization militarily.” French Minister for European Affairs Nathalie Loiseau told CNews TV channel today that French troops will remain in Syria.

From Bonn, German Foreign Minister Heiko Maas joined his voice with the French and the British saying “the abrupt change of course by the American side comes as a surprise not only for us.” Maas said that while IS has been pushed back, “the threat is not yet over.”

There’s Only One Item on the Agenda

Dec. 20 (EIRNS)—Don’t believe for one minute that all the sudden outrage against the U.S. withdrawal from Syria has anything whatever to do with protecting Kurds, or defeating terrorists, or any of the other made-up excuses. The people who are outraged that Trump is finally ending Obama’s Syria war, know nothing and care less about Kurds or terrorists.  (Remember how they covered up 9/11.) There’s only one reason for their outrage: The bruised toes of the British Empire.  They refuse to accept the fact that the U.S. will no longer serve as the “muscle” for the British Empire they worship, in no-win wars around the world, where the main target is not any of the underdeveloped countries which have been invaded and raped.  The target of the Brits in these wars is the United States.  The United States never returned from Vietnam, or from the subsequent Vietnams. Only now can it begin to return to being the United States of America which most of our readers have never known.

Liberal Democrat Sen. Jeanne Shaheen (D-NH) has signed a letter protesting the withdrawal, with Liberal Angus King (I-ME) and Never-Trump Republicans “Little Marco” Rubio (FL) and Lindsey Graham (SC), along with two other Republicans.  How Liberal are the Liberals with the blood of the children of the poor of Appalachia and the ghetto, who are the ones who die in these never-ending wars.  Not their children—no one they know, no one in their set.

Lindsey Graham of South Carolina is another one who has the Union Jack sewn into his underwear.  He was one of the most extreme never-Trump Republicans until recently, when he suddenly noticed what had happened to the all the other never-Trump Republican Senators and Representatives—they quit or were defeated for re-election.  Since then he has seen reason on the Trump question, but never on the core interest of the Empire itself.

Pompeo Thanks Oman for Facilitating Talks To End the Yemen War

Dec. 20 (EIRNS)—U.S. Secretary of State Mike Pompeo met with visiting Omani Foreign Minister Yusuf bin Alawi bin Abdullah in Washington on Dec. 19, to discuss Oman’s efforts to mediate Yemen issues, Xinhua reported. Pompeo expressed his gratitude over Oman’s positive engagement on regional issues, including its role in helping facilitate UN consultations on Yemen in Sweden, according to a statement issued by the U.S. State Department.

On Dec. 13, the week-long Yemen peace talks concluded in Sweden with constructive progress for future dialogues. Pompeo hailed the peace talks as “encouraging” and “a pivotal first step” towards ensuring peace in the country. The ceasefire agreement reached between the Yemeni government and Houthi rebels during the peace talks, went into effect in Hodeidah at midnight local time on Dec. 17.

The Sultanate of Oman has long pushed its preference for a political solution in Yemen, as opposed to the militarized approach used by the Kingdom of Saudi Arabia and the United Arab Emirates. Moreover, the Saudi attacks on Yemen pose a security threat to neighboring Oman itself. Sharing 187 miles of border with Yemen, Oman’s southernmost governorate, Dhofar, is vulnerable to spillover effects from Yemen that could threaten peace in the Sultanate.

Resolution of Afghan Conflict Is Now in Play

Dec. 20 (EIRNS)—The United States and the Taliban have concluded two days of peace talks in the United Arab Emirates on Dec. 18-19, promising to meet again in the Gulf country for another round to complete the Afghanistan reconciliation process. The Afghan reconciliation conference in Abu Dhabi, U.A.E., “fructified in tangible results” that are positive for all parties concerned, announced the state-run Emirates News Agency (WAM) on Dec. 19. The talks included the participation of Pakistan and Saudi Arabia.

Despite the optimism expressed by WAM, U.S. Special Representative for Afghanistan’s Reconciliation Zalmay Khalilzad said today the Taliban delegation made a mistake by refusing to sit with the representatives of the Afghan government during talks. In an exclusive interview today with the Afghan channel, Ariana News, and yesterday with Afghan TV network TOLONews, Khalilzad said if the Taliban were sincere in peace talks they should have met with the Afghan government delegation.

It is evident that the 16-year war between the Taliban and the U.S.-Kabul combo cannot be resolved quickly. However, the “threat” issued by President Donald Trump that the U.S. intends to leave Afghanistan lock, stock and barrel has created a sense of urgency amongst all the regional players. Today in New Delhi, Russian President Vladimir Putin’s special envoy on Afghanistan Zamir Kabulov held talks with India’s Foreign Secretary Vijay Gokhale and other officials of the External Affairs Ministry as part of their regular bilateral consultations on Afghanistan, reported the Indian ministry in its press briefing today. Spokesperson Shri Rajeesh Kumar told media that “both sides reiterated their support for an Afghan-led and Afghan-owned, inclusive peace and reconciliation process.”

On Dec. 15, officials from Afghanistan, Pakistan and China had met in Kabul to discuss trade, development and solutions to end the region’s relentless conflicts.


Britain Blames Chinese Intelligence for Cyber Attacks, as Empire’s Washington Pawns Join In

Dec. 20 (EIRNS)—Britain’s Foreign Secretary Jeremy Hunt blamed China today for a campaign of global cyber attacks aimed at stealing business secrets from the U.K. and allied countries. He made his wild statement in the name of “the U.K. and its allies” (not named, but suspected of having “five eyes” among them), and charged that China is not only violating “commitments” made to the U.K., but “also inconsistent with G20 commitments.”

As has become usual, this latest charge by Her Majesty’s Foreign and Commonwealth Office is also based on an assessment “with the highest level of probability,” reached, Hunt reported, by the U.K.’s National Cyber Security Center (NCSC), “along with its allies.” On those unproven, “probable” grounds, Hunt charged China with carrying out “malicious … targeting trade secrets and economies around the world” through a group known as “APT10” acting on behalf of the Chinese Ministry of State Security.

Meanwhile, in Washington, the Justice Department has charged two Chinese nationals, Zhu Hua and Zhang Shilong, with cyber crimes, citing the threat they pose to national security. These Chinese nationals, whom the Department of Justice believes are working in association with the country’s government as part of a the APT10 hacking group, are accused of stealing information from at least 45 U.S. tech companies and government agencies, including NASA, the U.S. Navy, and the Department of Energy, according to Michigan digital industry news agency MITechNews, today.

German Government Wants To Deter Chinese Investors, against Industry Objections

Dec. 20 (EIRNS)—As announced earlier this week, the government of Germany decreed on Dec. 19 to lower the threshold for screening and even blocking purchases of stakes in German firms through unwanted takeovers by Chinese investors in strategic areas. In line with Sinophobic circles in the European Commission bureaucracy, geopolitical minds in Germany justify the move with narratives about China pursuing a secret agenda of gaining control over core German high-tech industries. Under the new rules, Berlin can intervene if a Chinese investor buys a 10% stake in a company; previously, the threshold was at 25%. This is to protect vital infrastructure such as energy, water, food supply, telecommunications, finance and transportation, as well as media companies.

“Germany is an open-market economy where foreign investments are welcome. That will remain the case in future. But we must not be naive,” Joachim Pfeiffer, economic affairs spokesperson for the Christian Democratic Union of Chancellor Angela Merkel, told Reuters. If foreign states pursue political goals with targeted investments in key areas, Berlin must be able to act, he said.

The national industry association BDI opposes Berlin’s Sinophobia, and insists, “Germany must remain open to foreign investors.” Industry sources have repeatedly pointed out that Germany has had a relaxed attitude to Western takeover efforts, but has blocking several Chinese takeovers. The new regulation mentions no specific country, but in effect, it is an anti-China move.

CFR’s Foreign Affairs Feature: Will the U.S. or China ‘Run the World?’

Dec. 20 (EIRNS)—The cover of the January-February issue ofForeign Affairs, the journal of the British Empire’s primary political outpost in the U.S., the Council on Foreign Relations, reads: “Who Will Run the World? America, China, and Global Order.” In the series of four articles, the most egregious one by Oriana Skylar Mastro, Jeane Kirkpatrick Visiting Scholar at the American Enterprise Institute, is titled “The Stealth Superpower: How China Hid Its Global Ambitions.” She answers her own question by claiming that the sneaky Chinese government “deliberately delayed the modernization of its military,” and “opted to first build up other types of power—economic, political and cultural—in order to project a less threatening image.”

Imagine—taking economic development and cultural collaboration to the world!

She claims there is no way around the so-called “Thucydides trap”: “Rising powers can delay provocation for only so long, and the bad news for the U.S.—and for peace and security in Asia—is that China has now entered the beginning stages of a direct challenge to the U.S.-led order.”

Therefore, Mastro writes, prepare for war: “If U.S. leaders deem primacy in Asia worth protecting, they should brace themselves for the possibility that doing so may require the use of military force.”

It is of note that Mastro denounces President Donald Trump for not imposing imperial “order” on the world. Even more blatant, she claims that China has an “Achilles’ heel,” in that: “its leaders have failed to articulate a vision of global dominance that is beneficial for any country but China.”

True enough, China had no plan at all for “global dominance,” but only for global development, to the benefit of all. Geopoliticians like Mastro cannot imagine such a world, and therefore deny its possibility.


U.S. Treasury Ends Sanctions against Rusal Company, but Adds New Sanctions on Russian Media

Dec. 20 (EIRNS)—The U.S. Treasury notified Congress of its decisions to lift sanctions against the Russian Rusal company. Rusal, in turn, stated: “We welcome the decision of OFAC (the Office of Foreign Assets Control of the U.S. Treasury Department in charge of law enforcement related to sanctions) and continue the work required for returning the company to normal operations.”

Sanctions will also be lifted from En+ and EuroSibEnergo, which are also related to the Russian businessman Oleg Deripaska, in 30 days, since he agreed to reduce control in En+ to 44.95%. Deripaska himself will remain blacklisted and his assets would be frozen, reported TASS.

At the same it was announced that 18 Russian individuals and four Russian information resources were added to the U.S. sanctions lists, OFAC reported on Dec. 19, according TASS today. This includes information resources Economy Today (Ekonomika Segodnya), Federal News Agency (Federalnoe Agentstvo Novostei), Nevskiy News (Nevskiye Novosti), and USA Really.


Hungary Wants To Expand Its Own Role in Belt and Road

Dec. 20 (EIRNS)—Hungary is open to developing bilateral trade and investment ties with Shaanxi province in China, Secretary for Financial Affairs Gabor Gion said on Dec. 13 after meeting the province’s councilor in charge of economic relations, Lo Ching Yuen. Hungary is an active participant in China’s Belt and Road Initiative and wants to play a major role at the western end of the New Silk Road, Gion said in a statement, reported MTI.

As a result of Hungary’s opening to the East, China has become Hungary’s number-one trading partner outside the European Union and second most important export market, Gion said. Foreign trade exceeded $7.95 billion in 2017, an increase of more than 11% over the previous year. Chinese companies operating in Hungary employ more than 10,000 people and there are seven Chinese companies among the Hungarian government’s 79 strategic partners.

The Hungarian government places great emphasis on strengthening bilateral political, trade and financial relations with China, he said, welcoming that Hungary has become a major target of Chinese investment in Central and Eastern Europe, totalling $4.2 billion nationwide.


‘Project Democracy’ Neo-Cons Gunning for Bolivian President Evo Morales

Dec. 20 (EIRNS)—A Dec. 5 ruling by Bolivia’s Supreme Electoral Tribunal stating that President Evo Morales can run for reelection in October 2019, has enraged neo-liberal and neo-conservative “democracy” advocates in Ibero-America and beyond, who argue that Morales’s candidacy is a “coup” against democracy and should be prohibited. They charge Morales is ignoring a 2016 referendum on his right to run, which he lost thanks to an internationally coordinated smear campaign, but whose results were overturned by Bolivia’s Constitutional Court in 2017.

During his time in office, Morales has worked closely with China and Russia, has greatly improved living conditions and economic opportunities for the majority of his population, and has tirelessly organized international support for the crucial bioceanic railroad project, which will traverse Bolivia, and link the Pacific with the Atlantic Oceans.

This hasn’t endeared him to Wall Street and the City of London. The Interamerican Institute for Democracy (IID), the Miami-based outfit and home to neo-liberal former government officials from around Ibero-America, has issued a call to action, claiming Morales has created a “dictatorship” in Bolivia. IID Director Carlos Sanchez Berzain, former defense minister in Bolivia’s corrupt, Wall Street-run government of President Gonzalo Sanchez de Lozada in 2003 (who had to flee Bolivia to escape prosecution) is effectively calling for Morales to be overthrown, demanding that the entire electoral process be suspended until “democracy is restored.”

On Dec. 8, twenty former presidents of Ibero-America and the prime minister of Spain, grouped in the like-minded Democracy Initiative of Spain and the Americas (IDEA), issued a statement urging the Organization of American States (OAS) and the European Union to remain “vigilant” and take “effective, necessary and appropriate preemptive measures to act against the rupture of the constitutional and democratic order” which has allegedly occurred with the Bolivian Electoral Tribunal’s ruling. Among this group are such failed government leaders as Spain’s neo-liberal former Prime Minister José María Aznar, Mexico’s former President Vicente Fox and Argentina’s former President Fernando de la Rue.



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