EIR Daily Alert Service, Tuesday January 29, 2019
- Is the Bank of England Warning of a Debt Crash or Something Bigger?
- Andrew McCarthy Describes Each Mueller Indictment as Further From Collusion
- Abe Forecasts Peace Treaty Between Japan & Russia Soon
- Are China-Japan Relations in a New Era? Asks Global Times
- U.S. Seeks Russian Help on Steps to Denuclearize North Korea
- Nepal Pushes For Expanding Belt and Road Initiative
- Former Indian Diplomat Considers Pakistan Crucial in U.S.-Taliban Talks For Afghan Peace
- Pipe Dreams of ‘European Defense’
- Indian Space Program Inspires Youngsters ‘To Discover New Stars While Gazing at Them’
- U.S. Selling National Military Space to the Lowest Bidder
- Space Exploration Movie Sets Dominant Theme for Spring Festival Opening
- Cut Off From Power, Germany Will Destabilize
|CHANGE STARTS WITHINToday’s top news, podcasts, videos and insights that expand consciousness.One of Stanford’s Most Successful Remote Viewers Shares His Encounter With The Real ‘Men In Black’Ingo Swann, known as one of the fathers of Remote Viewing and perhaps the post popular participant in the CIA’s/Stanford Remote Viewing (STARGATE) program shares an incredible story about his encounter with the “Men In Black.”Watch: Clap In Front of the Mayan Kukulkan Pyramid & It Mimics The Sound of the Quetzal Birdl Castillo, aka the Temple of Kukulkan, is a Mesoamerican in Mexico. If you stand directly in line with the steps and clap, you can hear the sound of the quetzal bird, a sacred animal to the Mayans.Three Real-World Examples of Magical Power Far Beyond Anything Scientists Have Ever SeenDean Radin, Chief Scientist at the Institute of Noetic Sciences has published a book titled “Real Magic.” In it, he provides multiple examples of people who possessed these. They have existed throughout history, and have always been outlawed.Latest Podcast#34 – Learning From The ‘MAGA Hat Kid’ Story|
Joe discusses the story in detail and explores some of the biggest take aways from society as this story unfolded. The episodes ends off with important reflections on how we must take personal responsibility for not only stories in the media but our reactions to them.
Thanks for being part of our community and helping to create a more conscious Earth!
Jan. 28 (EIRNS)—As the failing British elite shows its incapacity to implement the British people’s vote for a Brexit—a revolt against economic austerity imposed by that same elite—some ominous statements by the Bank of England about the state of “junk debt” and “leveraged loans” have gone almost unnoticed. They have certainly not been examined to see what the London-centered banking system as a whole is faced with, even if a “disorderly” Brexit doesn’t crash the derivatives markets and the City of London banks.
First the Bank testified Jan. 18 to the House of Commons Finance Committee—which was completely distracted by the Brexit parliamentary chaos anyway—that indices of risky, deteriorating corporate “leveraged loans” amounted to $1.3 trillion worth. Leveraged loans are loans to companies that don’t have the revenue to take them or repay them. Then it became clear the Bank was actually saying it was a $2.2 trillion (U.S. and European) bubble, because many of the worst-indebted of these companies were not included in these “indices” which made the $1.3 trillion. The $2.2 trillion was bigger than the 2007 U.S. subprime mortgage securities bubble, the Bank acknowledged, and 25% of it was in the form of super-risky collateralized loan obligations, which all the central banks are warning loudly about now because they blew out in 2008.
Don’t worry, the Bank said, 80% of these toxic loans are held by non-banks and shadow banks (i.e., investment banks, hedge funds, etc.), and so there is less danger than if commercial banks held them. The major banks are OK, it said, even as middle-sized banks have been failing in Europe from Italy to U.K., and some big ones like Deutsche Bank are on the edge.
But the Bank issued a release at the same time, saying that there
was a “leveraged loans” problem in China, and most of China’s toxic corporate loans are also held by non-banks and shadow banks. But the Bank said this meant that there is a greater danger there than if commercial banks held them. The reason: Shadow banks are less capitalized, less regulated.
The Bank of England was telling the truth about China’s leveraged loan problem, but obviously lying about the trans-Atlantic financial system’s dangerous bubble, more than twice as big! Add $1.5-2 trillion in junk bonds to those leveraged loans, and the Wall Street-City of London “junk debt” bubble is four times that in China. And because there is no Glass-Steagall bank separation in the United States or Europe, the shadow banks borrow heavily from the big commercial banks, so the contagion is spreading.
This bubble is going to blow up! Reinstating Glass-Steagall will shield commercial bank credit, and the economy, from the explosion. It is part of Lyndon LaRouche’s “Four New Laws To Save the Nation”; it enables the process of issuing national credit for productive activity.
The Schiller Institute led by Helga Zepp-LaRouche is mobilizing two urgent actions while this financial crash is threatening. First, U.S. citizens must defeat the British-led attempt to drive President Donald Trump out of office with fantastic “Russian agent” charges. Second, with the President able to act, an agreement for a New Bretton Woods international credit system has to be initiated exactly by the United States and China, together with at least Russia and India. Keep London sidelined; 50 years ago it ruined Franklin Roosevelt’s original Bretton Woods. Classes are being held at 2 p.m. on Saturdays in New York and streamed by LaRouche PAC online to explain the science behind this new system; and a national conference in February on creating a new paradigm of scientific, economic and cultural collaboration among nations.
Correction: Yesterday’s EIR Daily Alert mistakenly stated Malcolm X’s assassination was in 1961. He was assassinated on Feb. 21, 1965.
U.S. POLITICAL AND ECONOMIC
Jan. 28 (EIRNS)—Writing in the National Review today (“Stone Indictment Underscores That There Was No Trump-Russia Conspiracy”), Andrew McCarthy gives, as usual, a forceful legal expose of legal assassin Robert Mueller’s latest move against President Donald Trump and his associates.
Each new “Trump” indictment by Mueller strays further from any attempt to show collusion of the candidate or his campaign, with any Russian entity, McCarthy writes. Each shows more clearly than the indictment before, that there is no collusion case. The indictment Stone makes plain, in particular, that neither Trump nor the Trump campaign knew what “Russia had” on Hillary Clinton’s campaign, nor what “WikiLeaks had”; and they failed in their (including Stone’s) completely legal attempts to find it out. These attempts started only well after the theft of the DNC e-mails itself, and in fact, some around the Trump campaign were trying only to learn what was in WikiLeaks’ possession regarding opponent Clinton, not what might have been in Russian possession. But even of this, they learned essentially nothing until Julian Assange made the e-mails public.
McCarthy hammers at the fact that the Department of Justice has never withdrawn or corrected Comey’s House testimony two full years ago, in February 2017. There, Comey revealed a classified FBI foreign counterintelligence investigation. This, McCarthy notes, was illegal. Comey named American subjects of the investigation while it was ongoing (Trump and the Trump campaign). This, too, was illegal. And Comey falsely implied that FBI had evidence crimes may have been committed.
All the crimes since indicted, have either had nothing to do with Trump or his campaign (e.g., Manafort’s, Cohen’s prior crimes), or were “process” crimes. But DOJ has let the press continually repeat and amplify Comey’s illegal “revelations.” “Is it too much to ask,” McCarthy concludes, that the Justice Department withdraw its public suggestion that the President of the United States might be a clandestine agent of Russia?”
Interestingly a Washington Post front-page article today asks “Why is Mueller finding so many Trump associates lying,” but showing nothing at all about collusion?” The Post then quickly covers this admission by quoting “experts” giving variations of “where there’s smoke there’s fire” and surely Mueller has collusion evidence, he just hasn’t revealed it. But the smell of “nothingburger” crept even into the Post editorial room.
THE NEW GLOBAL ECONOMIC ORDER
Jan. 28 (EIRNS)—TASS reports that Japanese Prime Minister Shinzo Abe, delivering a speech on his program to the opening session of the Japanese Diet today, forecast that Russia and Japan would soon sign a peace treaty, finally, formally ending World War II.
“Moscow and Tokyo will solve their territorial dispute and sign a peace treaty based on the 1956 Joint Declaration, Japanese Prime Minister Shinzo Abe said on Monday,” TASS reported. It quoted Abe: “As for Russia, our nations will deepen mutual trust and friendship, solve their territorial problem and sign a peace treaty. Together with Putin we share the determination to put an end to this issue, which has been in place for more than 70 years after the war, without leaving it for the future generations.”
Abe reportedly stressed that the ongoing summits and other talks on the issue of the islands between them—where joint economic development has already begun, pursuant to earlier agreements—will be based on the 1956 Soviet-Japanese Joint Declaration, which stipulated handing over to Tokyo some islands of the southern part of the Kuril Islands after signing a peace treaty.
“The Russian and Japanese leaders confirmed this stance at their Jan. 22 meeting in the Kremlin,” TASS wrote.
Jan. 28 (EIRNS)—Chen Yang asks in a Global Times commentary piece published yesterday, whether people will look back at the Japan-China relationship in the first half of the 21st century, and think that 2019 is the year when mutual understanding between the two countries changed fundamentally. In the rise of trade protectionism worldwide, did the consensus between China and Japan on preserving the global trade system and transforming their bilateral ties from competition to collaboration “become the new ballast for their relations?”
Before Japanese Prime Minister Abe’s October visit to China, he announced that Japan would end its official development assistance to China, reflecting a change in the total strength of both countries. A cooperative relationship, rather than one based on assistance support is a “fundamental change,” says Chen. The fact that Japan’s Abe sought a stable relationship with Beijing while developing Japan-U.S. ties, means it is unlikely China-Japan relations will retrogress in 2019, as Abe pursues a balance between the U.S. and China.
This year, China will preside over the rotating China-Japan-South Korea trilateral summit, and Abe, says Chen, will use the opportunity to visit China again. With the upcoming Japan G20 in June, Tokyo is expecting President Xi’s first official visit to Japan. Even if Abe is not as eager to seek amicable relations with China as last year, the bilateral Japan-China ties will at least remain steady.
Though the overall tone of China-Japan relations can be expected to carry over, potential threats exists, such as Abe’s cabinet approving the National Defense Program Guidelines and the companion Mid-Term Defense Program in December, which involves the acquisition of new stealth fighters and long-range missiles, which, Chen says, highlight the “China threat theory.” If Japan is too radical in promoting its military capabilities, it will threaten stability in Northeast Asia and cool “warming ties.”
The Global Times piece concludes, “If the U.S. continues to impose unfair sanctions on Chinese companies this year, whether Japan will follow suit shall determine the direction of its relations with China.”
Jan. 28 (EIRNS)—Russian Deputy Foreign Minister Igor Morgulov told TASS, Jan. 26, that Russia is ready to “contribute to discussions on concrete measures and steps aimed at resolving the nuclear problems on the Korean Peninsula.”
After talks with U.S. colleagues, Morgulov told reporters, “Before the meeting between Kim Yong Chol [of North Korea] and Mike Pompeo, Washington expressed concern over the lack of considerable progress since the summit at Singapore.” He continued, “The main topic now is holding the second U.S.-North Korean summit which, as our U.S. colleagues hope, will give an impetus to transferring the talks on denuclearization into practical steps. In this regard, we received a request to assist in determining the right agenda for talks on certain aspects of denuclearization, and, together with other participants in the six-party negotiations process, we are ready to contribute to discussions on concrete measures and steps aimed at resolving the nuclear and other problems on the Korean Peninsula.”
Jan. 28 (EIRNS)—Sputnik reports that the Chinese government today officially handed over to the Nepalese government the expanded Kalanki-Koteshwar section of the Ring Road in the Nepali capital Kathmandu, which Beijing had financed.
At the ceremony, attended by China’s Ambassador, Nepal’s Prime Minister Khadga Prasad Sharma Oli said that “Nepal and China are set to identify several other projects under BRI [Belt and Road Initiative] framework, besides striving to complete projects like the Kerung-Kathmandu Railway on time.”
Nepal has developed its relationship with China’s great New Silk Road project in order to become a transportation bridge between China and India, and its stance affects that of India.
Prime Minister Oli rejected outright the British Imperial attack against the Belt and Road: “Even though there are some rumors, let us be clear that we are not going to fall into debt trap,” he was quoted in Nepalese media, reported Sputnik. “Instead, the BRI is going to be beneficial for us. We are aware of our national priorities and interests. Nobody should be worried about it at all.”
STRATEGIC WAR DANGER
Jan 28 (EIRNS)—Former Indian Ambassador M.K. Bhadrakumar said in his blog “Indian Punchline” that the present negotiations between the United States and the Taliban to resolve the Afghan conflict are different from the earlier, failed attempts, because of Pakistan’s new role. He wrote: “The happenings of the past few days or weeks suggest three things: One, Pakistan is not seeking a Taliban takeover by force in Afghanistan (even assuming that it has the capability to do so); Two, Pakistan seems open to a broad-based government in Afghanistan (which includes the Taliban or is led by the Taliban); and Three, Pakistan wants the U.S. to remain engaged and committed to post-war Afghanistan. However, the bottom line is that Pakistan realizes that the U.S. is making unprecedented concessions, and an optimal point is at hand to close the deal.”
The U.S. concession Bhadrakumar referred to is its promise made in the undeclared and unsigned agreement reached with the Taliban. In the agreement, the U.S. has committed to withdrawing its troops if the Taliban provide a guarantee that Afghan soil will not be used to threaten international security.
Bhadrakumar further described that on the ground there are growing signs that Pakistan is marginalizing or eliminating the hardline elements within the Taliban. “Iran’s official news agency IRNA reported last week somewhat cryptically that Mullah Yaghoub, the son of the Taliban’s founder, the late Mullah Omar, and a member of the so-called Quetta Shura, was killed in Peshawar [Pakistan] following differences.” He also stated that earlier, the Afghan media reported that a number of Taliban leaders in Pakistan were arrested after their meeting with Pakistan army commanders.
Jan. 28 (EIRNS)—The Franco-German Treaty signed last week envisions a strong cooperation in the military, going in the direction of an independent capacity for “Europe” to defend itself against whatever enemy there might be. But Germany would have to make enormous efforts if it plans to contribute to that: For instance, its Navy does not really exist. Four frigates were commissioned in 2006 but never built, and the existing Naval forces have been used up (in terms of manpower and matériel) in ill-designed out-of-area missions in the Mediterranean and off the coast of Somalia. Germany at present has no combat-ready Navy, with a good part of its functioning vessels deployed to patrol the Mediterranean and bring aboard refugees—made possible only once cannons and missile-launchers on deck are removed to make room for several hundred refugees.
Of the six submarines of the 212U class which the German Navy has, none can be deployed at present for lack of spare parts and trained manpower. The only manpower being trained are foreign sailors of countries to which Germany sold the submarines. The Naval reconnaissance aircraft are out of date and can only be used for sunshine deployments coming close to tourism missions. The corvettes have no real firepower and cannot be used for combat. The German Navy now only has 25% of what it had in 1989, and what remains today is just on paper.
SCIENCE AND INFRASTRUCTURE
Jan. 28 (EIRNS)—Indian Prime Minister Narendra Modi, in his monthly radio address yesterday, chose to hail the pioneers in Indian’s space program. He then reviewed some of the applications of space technology today that the government has developed, such as navigational devices for fishermen, and weather forecasting to save lives. And in the near future, newspapers report, perhaps in April, “We will soon register India’s presence on the Moon through the Chandrayaan-2 campaign,” media quote him as saying. The first Indian lunar mission, launched 10 years ago orbited the Moon. Chandrayaan-2 will consist of a lander and a rover—a challenging “first” for the India Space Research Organization.
The Prime Minister concluded this segment of his report, saying: “The sky and stars have always enthralled children. Our Space Program provides an impetus to the children to think big and reach across those boundaries, which were considered impossible till today. It is a vision to inspire the children to discover new stars, while gazing at them!”
Jan. 28 (EIRNS)—One might recommend that the U.S. Air Force Space Command might have their heads examined, after the Space Command top brass declared it is “confident private companies can support military launch needs,” reported SpaceNews. The issue was discussed on Jan. 25 in an event held by the Mitchell Institute on Capitol Hill. The timing of the event did not bode well for this assertion: Earlier in the week, SpaceX, which recently was certified to launch national security payloads, announced layoffs of 10%, with possibly more down the road. The day of the event, Virgin Galactic, bragging for a decade it would take passengers into orbit, announced the layoff of 5% of its workforce, or about 40 people. And private company Stratolaunch, developing an innovative air launch approach, pulled out of some of its launch technology development.
Last October, Air Force Space Command awarded three cost-sharing R&D development contracts to the tune of $2.3 billion, to “make sure their domestically produced commercial rockets can meet national security launch requirements.” Apparently they are unaware of NASA’s experience with this approach, which has been characterized by years of delays, and bailing out companies when necessary, having no alternative to keep them on track.
Like all of the ill-conceived proposals for turning key space capabilities over to private industry, the success of this Air Force program depends on companies that, like all companies, have to make a profit to stay in business. In this case, that requires a healthy market for commercial satellite launches, to supplement government orders. That commercial market is not assured. In fact, demand for
commercial launches has been falling.
Jan. 28 (EIRNS)—China will launch its first sci-fi movie blockbuster, “The Wandering Earth,” on Feb. 5, the first day of Spring Festival. A special pre-screening of the film was held at Space City in the north of Beijing.
The story is based on a novel by science fiction writer Liu Cixin, who wrote the well-publicized sci-fi trilogy The Three-Body Problem. “The Wandering Earth” is a story about how space scientists, as the Sun was reaching the end of its life-span, had attached gigantic engines to Planet Earth, and sent it out on a centuries-long journey into the galaxy, looking for a new Sun. In the film, the Chinese astronaut joins hands with his son to save Earth from a collision with Jupiter.
Chen Dong, a Chinese astronaut who flew with the Shenzhou-11, said he was thrilled by the movie: “The astronaut in the film played a vital role in saving mankind. His sacrifice touched my heart. If I happened to face a similar situation, I would definitely make the same decision. Astronauts are pioneers in our exploration into deep space, and I look forward to more films that can inspire our space mission.” Wang Yaping, another astronaut, who had taught a physics class to Earth from the Chinese space station, also attended the screening.
Author Liu Cixin was named Space Culture Ambassador by the China Satellite Launch & Tracking Control Department after the screening. The film will hit theaters in the United States in Feb. 8.
COLLAPSING WESTERN FINANCIAL SYSTEM
Jan. 28 (EIRNS)—If not scrapped, the policy of the government to have the final exit from coal-fired power plants by 2035-38 at the latest would face Germany’s industry and private households with higher prices for electricity anyway and also with a chronic under supply of power. Wind, solar and biomass will not do the job. Will neighboring Poland and Czechia continue to export electricity to Germany’s eastern regions—electricity generated by coal, and in Czechia also by nuclear power—will Austria and Switzerland continue to export electricity from their hydropower, and France from nuclear, to Germany’s western and southern regions? But the Merkel government and its climate-obsessed experts do not even deal with these questions; they are deadly determined to cut Germany’s domestic energy consumption by one-half by sometime between 2040 and 2050—that is, just the 52% that coal and remaining nuclear are still providing today.
|Andreas Pinkwart, state economics minister of North Rhine-Westphalia, one of the traditional mining regions that is to move out of coal entirely, has pointed out that about 250,000 jobs in energy-intensive industry depend on calculable and affordable electricity. In the eastern mining regions (Saxe-Anhalt, Saxony, Brandenburg), about 150,000 jobs in industry are in the same precarious situation. RWE, the leading power generator in North Rhine-Westphalia, has already announced that beginning in 2023, it will have to lay off workers. The same is true for LEAG, the leading power generator in the eastern Lausitz region. Reach us at email@example.com or call 1-571-293-0935|