WEDNESDAY, FEBRUARY 27, 2019

Volume 6, Number 40

EIR Daily Alert Service

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

Chinese Media Show Restrained Optimism About the U.S.-China Trade Negotiations‘

Kim and Trump in Hanoi—Dinner Wednesday, Summit Thursday‘

Former CIA Korea Chief Presents the U.S. and the North Korea Negotiations Positions‘

Lima Group Rejects Military Option on Venezuela, as British Empire Neo-Cons Seek Pretext for War‘

Ocasio-Cortez Lets It All Hang Out: The Green New Death‘

OECD Report Warns of Corporate Debt Ticking Bomb‘

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EDITORIAL

The Power of Nemesis

Feb. 26 (EIRNS)—With his passing, Lyndon LaRouche has uncorked a process which is moving the world substantively toward a new strategic alliance of forces capable of establishing a New Paradigm of physical economic development, peace, and cultural Renaissance. This is taking the form of an emerging Four Powers alliance, as called for by LaRouche over recent years, among the United States, Russia, China and India, to usher in such a global change.

That process may seem ill-defined, intangible, and even mercurial to most observers—but it is a substantial form or power in the realm that actually shapes history: the realm of ideas. It is surfacing in a manner that might be described as leading forces in China, Russia and other countries, large and small, “playing the LaRouche card”: pronouncing themselves with conviction on the significance of LaRouche’s ideas and policies, and sending the message that it is the United States of Lyndon LaRouche with which their nations seek a permanent, win-win alliance.

Such was the import of the letter of condolence sent to Helga Zepp-LaRouche by China’s Bao Shixiu, Sr. Col. (ret.) in the PLA and professor at the Academy of Military Sciences in Beijing, who recalled the ground-breaking work of Lyndon and Helga LaRouche to “make the global order more sound and healthy,” including their leading promotion of the New Silk Road. Colonel Bao stated: “Mr. Lyndon LaRouche, you were a most reliable friend of Chinese people and they will never forget you.”

Such was the message sent as well by Russia’s Ambassador to the United Nations, Vassily Nebenzia, who mourned the passing of LaRouche and stated that “We are convinced that the paradigm of international, political, and economical intervention that he had proposed will be further developed by his apprentices and associates”; and by Sergei Glazyev, an adviser to Russian President Vladimir Putin, who stressed that “today those ideas [of Lyndon LaRouche] are coming to life in a new world economic paradigm”; and by hundreds of others around the world.

These are statements that political forces in the United States ignore at their own peril—especially since growing numbers of Americans, as well, are taking up LaRouche’s torch, backing President Trump in his pursuit of a policy of having good relations with China and Russia, and are calling on Trump to fully exonerate Lyndon LaRouche.

As the month of February 2019 draws to a close, President Donald Trump is moving towards finalizing a broad economic agreement with China, that will benefit both nations and the world. And he has embarked on a trip to Vietnam for his second summit with North Korean leader Kim Jong Un, which could not only defuse one of the world’s leading hot spots, but lay the basis for the demise of British geopolitics and perpetual wars altogether. Small wonder, then, that Trump is at every turn facing British-inspired violent opposition abroad, from Obama/Hillary Democrats and the intelligence establishment inside the U.S., and from within his own cabinet and party as well.

To the British Empire’s dismay, the power of nemesis is indeed a force to be contended with. The 1998 clarion call by former President José López Portillo is now coming back to haunt them with renewed vigor. At a joint speaking engagement with Helga Zepp-LaRouche in Mexico City, López Portillo stated: “It is now necessary for the world to listen to the wise words of Lyndon LaRouche. Now it is through the voice of his wife, that we have had the privilege of listening to him. How important, that they enlighten us as to what is happening in the world, as to what will happen, and as to what can be corrected. How important, that someone dedicates their time, their generosity, and their enthusiasm to this endeavor… Many thanks, Doña Helga.”

THE NEW GLOBAL ECONOMIC ORDER

Bao Shixiu on LaRouche: ‘You Were a Most Reliable Friend of Chinese People and They Will Never Forget You’

Feb. 26 (EIRNS)—Sr. Col. Bao Shixiu (ret.) is a former PLA officer, who served for many years as a professor in Military Affairs at the PLA Academy of Military Studies in Beijing. He is also the author of a well-known book on military strategy. He came into contact with the ideas of LaRouche in the 1990s on a trip to the United States, and was greatly supportive of them. In 2016, he came to the United States to speak at a Schiller Institute conference in New York on the topic of the Silk Road Economic Belt.

“Dear Mrs. LaRouche,

“It came as a great shock to read the heartbreaking news about the passing of Mr. Lyndon LaRouche—a Titan of thought, an Encyclopedic figure, a great soul in his love for humanity and the ardent supporter of the Chinese One Belt One Road Initiative.

“The concept of the Belt and Road Initiative is making a contribution to global governance theory. This concept reflects the canon of a new global governance theory, and it has provided tangible theoretical support for a new type of world order.

“Actually, we are looking forward to a new mode of thinking, when we are dealing with international and global affairs. In order to change the decades-long irrational global governance system, and to make the global governance system and the global order more sound and healthy. Mr. LaRouche and his wife Mrs. Helga Zepp-LaRouche, as early as the 1990s, had come up with a new idea about building a tunnel under the Bering Strait, as well as establishing a Eurasian Land-Bridge to connect the world, so that people of all countries and continents can benefit from this new connection. So common prosperity is the basis for a new global governance system.

“These two dignitaries, who have been making contributions to the establishment of a new global order and a new system of global governance, have paid special attention to the role of China and Asia in establishing this kind of new order. Now we have a common consensus in the world that the New Silk Road is only the first step of economic integration of the world and the first light in the darkness on the road toward a new human civilization.

“Mr. Lyndon LaRouche, you were a most reliable friend of Chinese people and they will never forget you.”

Bao Shixiu

Chinese Media Show Restrained Optimism About the U.S.-China Trade Negotiations

Feb. 26 (EIRNS)—After President Donald Trump tweeted Feb. 24 that he was postponing the March 1 deadline for increased tariffs against China, in expectation of achieving an overall agreement in his next meeting with Chinese President Xi Jinping, Global Times editorialized on Feb. 25 that “It is clear that the majority of problems have been solved by the China-U.S. trade talks. The two sides are preparing text for the agreement. It doesn’t mean a trade deal is now certain. Both sides still need to strive for it.” The editorial expressed concern that the agreement be accepted by “the public” in both countries, and that radical obstructionists on both sides be kept at bay: “The agreement has to face public scrutiny, as any compromise will be criticized by both societies. The two sides need to finish up the final work of the trade talks and make sure about the signing of the agreement. They also need to promote understanding with the public to support a final mutual compromise. The public mustn’t be misled by certain radical advocacy from either country or obstruct the implementation of the agreement.”

China Daily was also optimistic, but cautiously so. “No one should underestimate how difficult the challenge is to find compromises that satisfy their respective interests. Despite the optimism expressed by both sides that a deal can be reached, there is still some uncertainty about what that might actually entail…. A comprehensive agreement would be the most desirable way to put an end to the dispute and that now appears to be in the cards.”

And Xinhua emphasized the importance of the personal roles of both Xi and Trump, which “testify to the sincerity, high attention and sense of urgency of both the Chinese and U.S. sides…. The two sides have no better alternative but to work with each other for their own good and the interest of the whole world. In their efforts to hash out an agreement, China and the United States are better advised to work for the best results while preparing for the worst scenario.”

Kim and Trump in Hanoi—Dinner Wednesday, Summit Thursday

Feb. 26 (EIRNS)—Both Donald Trump and Kim Jong Un have arrived in Hanoi, with a brief one-on-one conversation and then a dinner scheduled for Wednesday, Feb. 27 (they did not have dinner in Singapore), with the summit scheduled for Thursday, Feb. 28. Trump is joined by Secretary of State Mike Pompeo and Chief of Staff Mick Mulvaney.

Trump tweeted: “With complete Denuclearisation, North Korea will rapidly become an Economic Powerhouse. Without it, just more of the same. Chairman Kim will make a wise decision!” Speaking at the National Governors’ Association on Feb. 24, Trump said: “I’m not in a rush. I just don’t want testing. As long as there’s no testing, we’re happy. We want denuclearization, and I think he’ll have a country that will set a lot of records for speed in terms of an economy.”

As for Kim’s 60-hour train journey to Hanoi through China instead of flying, this is an echo of his grandfather Kim Il Sung’s visit to Vietnam in 1964, who similarly traveled by train. Kim Jong Un has quite openly patterned himself in many ways after his grandfather, the first leader of North Korea. Kim will also visit some of the same locations visited by the elder Kim, two sources with direct knowledge of security and logistics planning told Reuters.

Former CIA Korea Chief Presents the U.S. and the North Korea Negotiations Positions

Feb. 26 (EIRNS)—Andrew Kim, who retired at the end of last year as the head of the CIA’s Korea Mission Center, spoke at the Asia-Pacific Research Center at Stanford University on Feb. 22, presenting for the first time the basic negotiating positions of both North Korea and the Trump Administration in the unfolding peace and denuclearization talks. Although Kim said he was speaking only for himself, his speaking freely about the negotiations was most unusual for a retired CIA official, and almost certainly intended by the Trump Administration to put things on the table at this critical moment.

Kim was present for both Secretary of State Mike Pompeo’s and President Donald Trump’s meetings with Kim Jong Un. He said that Kim Jong Un told Pompeo in April 2018, when asked if he was willing to denuclearize, that, “I’m a father and a husband. And I have children. And I don’t want my children to carry the nuclear weapon on their back their whole life.”

According to the South Korean daily Hankyoreh, “Andrew Kim described the North Korean leader as charming and a good negotiating partner, that he knows how to get to the point, is well-informed on technical matters, and is capable of a positive speaking style.”

Andrew Kim said that Kim Jong Un is taking a chance in these negotiations since some powerful figures in North Korea do not want to give up nuclear weapons.

On the negotiating positions, the former CIA officer described Kim’s plan for North Korea’s denuclearization and the U.S. corresponding measures. As Hankyoreh reports it: “In regard to the roadmap for North Korea’s denuclearization, Kim suggested that the North could begin with a continuing suspension of its nuclear weapons and missile tests; make a comprehensive declaration of its program and allow inspections by experts; dismantle its nuclear weapons, delivery systems and nuclear materials; and rejoin the Treaty on the Non-Proliferation of Nuclear Weapons, from which it withdrew in 2003.”

Andrew Kim also addressed the U.S. approach, which, according toHankyoreh, “divided the incentives that the U.S. could give North Korea in compensation for its denuclearization into three categories: economic, political and security. Economic incentives included humanitarian support, easing international transactions by North Korean banks, easing sanctions on North Korean imports and exports and lifting sanctions on joint ventures in North Korean economic zones. Political incentives included lifting the travel ban, establishing joint liaison offices, initiating cultural exchange, removing Kim Jong Un’s family members and senior officials from the blacklist and revoking North Korea’s designation as a state sponsor of terrorism. Security incentives included signing an end-of-war declaration, military cooperation with North Korea, signing a peace treaty and establishing diplomatic relations.”

Hankyoreh observes: “While [Andrew] Kim offered the caveat that the lecture represented his personal opinion, he said that this was the U.S. position when it started dialogue with North Korea two years ago and that he didn’t think that position had changed in the meantime.”

South Korea’s Moon Jae-in Presents His Vision for Korea

Feb. 26 (EIRNS)—South Korean President Moon Jae-in, speaking with aides on Feb. 25, presented his vision for the Korean Peninsula, based on a successful summit between President Donald Trump and Kim Jong Un on Feb. 27. “We will take the lead in preparing for a new Korean Peninsula regime by standing at the center, rather than the periphery, of history,” the South Korean daily Hankyoreh writes that, “this is the first time [Moon] has referred to a new Korean Peninsula regime.”

On the summit, Moon said: “The reason we’re cheering for the two leaders and wishing for the success of their summit is because this is a decisive opportunity to resolve the threat of war and security fears on the Korean Peninsula and to move into the age of the peace economy. If the North Korean economy opens up, neighboring countries, international organizations and international capital will get involved.”

A Blue House spokesman in Seoul said that Moon “made clear that we are the masters of the destiny of the Korean Peninsula; that we must actively work for peace, economic cooperation and the restoration of our national homogeneity; and that our mission is exchange, cooperation and prosperity in East Asia.” He also said that the summit may result in a joint declaration of an end to the Korean War. President Trump can make such a declaration, although a peace treaty would need to be negotiated and approved by Congress, as well as other countries.

Moon spoke by phone with Trump on Feb. 19, telling him that South Korea is prepared to connect inter-Korean roads and railroads and to carry out inter-Korean economic cooperation projects, if Trump asks it to take on that role and agrees to lift some sanctions or offer exceptions.

STRATEGIC WAR DANGER

Lima Group Rejects Military Option on Venezuela, as British Empire Neo-Cons Seek Pretext for War

Feb. 26 (EIRNS)—The Feb. 25 meeting of the 14-nation Lima Group in Bogota rejected any option of military action against the government of Venezuelan President Nicolas Maduro, so urgently sought by U.S. Vice President Mike Pence and the cabal of neo-con warmongers surrounding President Donald Trump. During the meeting, one foreign minister after another—Brazil’s Vice President Gen. Antônio Hamilton Mourão (ret.) made a very strong statement—voiced their governments’ categorical opposition to any military action. The final communiqué reflected this.

But, while the neo-con push for a military response has foundered, for now, Pence made clear in his speech that the British imperial strategy is to seek, or orchestrate, any provocation to justify a military intervention: a staged Venezuelan “attack” on Colombia, which Pence described as “our strongest ally in the region,” or harm to, or murder of “interim President” Juan Guaidó—providing a bloody shirt to wave—would serve the purpose. Thus, the situation remains extremely dangerous.

Russian Security Council Secretary Nikolai Patrushev, in statements reported by Sputnik today, warned ominously that the United States is deploying military forces to Puerto Rico and Colombia, which, he said, “clearly indicate that the Pentagon is reinforcing the grouping of troops in the region in order to overthrow the lawfully-elected incumbent President Maduro.” Ten days earlier, on Feb. 14, the Cuban government charged that between Feb. 6 and 10, U.S. military transport aircraft flew to airbases in Puerto Rico, the Dominican Republic and to “other strategically-located Caribbean islands … originating at American military installations from which units of Special Operations and Marine Corps operate, and are used for covert actions.”

The same day, Britain’s Express tabloid reported on a Cuban government official warning that Washington wants “to forcibly establish a humanitarian corridor under international protection, invoking the obligation to protect civilians”—the British imperial “Right to Protect” strategy used to justify invasions of many sovereign nations.

Mexican President Andrés Manuel López Obrador today continued to counter this warmongering, calling on “all parties” to “sit down in dialogue and find a peaceful solution.” Humanitarian aid should be handled by the UN and the International Red Cross, and not be politicized, he said. “I say this with all due respect and conclude with this phrase of [republican President Benito] Juárez: ‘nothing by force, everything through reason.’ ”

China’s Foreign Ministry Urges for Non-Intervention in Venezuela, Peaceful Solution to the Crisis

Feb. 26 (EIRNS)—In response to a question from the media, Chinese Foreign Ministry spokesperson Lu Kang stated on Feb. 25: “The Chinese side hopes that Venezuela will maintain peace and stability, calls for the observance of international law and basic norms governing international relations, and opposes intervention by external forces in the internal affairs of Venezuela. It also opposes using the so-called humanitarian aid to serve political ends and stir up instability and even turmoil in Venezuela and its neighborhood, which is not in the interests of any party.”

Lu continued: “We once again call on the ruling and opposition parties in Venezuela to seek political solutions through dialogue and consultation within the framework of the Constitution and laws and call on the international community to do things that are truly conducive to the country’s stability, economic development, and the improvement of its people’s livelihood. It is hoped that the international community will provide constructive assistance to Venezuela on the premise of respecting its sovereignty.”

Russia Warns U.K. Against Kerch Strait Provocation

Feb. 26 (EIRNS)—The Russian Embassy in London is warning against any British participation in an expected provocation by the Ukraine regime in the Kerch Strait. Participation by foreign nationals in illegal activities in the Kerch Strait is a violation of international law and will be considered a violation of Russia’s state borders, the Embassy said in a Feb. 25 statement, reported TASS. It will also worsen the atmosphere around efforts to address the Donbas situation through the Minsk Agreements. “When it comes to U.K.’s possible participation in Kiev’s plans, we hope that London will abstain from such questionable undertakings. On our part, we have warned the U.K. government against participating in those dangerous maneuvers, as they can lead to serious consequences,” the embassy stated.

At about the same time, the American guided missile destroyer USS Donald Cook, which entered the Black Sea on Feb. 19, put into port in Odessa, Ukraine. According Kiev’s 112 TV channel, it’s scheduled to be there until Feb. 27.

U.S. POLITICAL AND ECONOMIC

Ocasio-Cortez Lets It All Hang Out: The Green New Death

Feb. 26 (EIRNS)—For decades the LaRouche movement has been insisting that behind Green ideology and the radical environmentalist movement (including the its recent variant of climate change hocus-pocus), is nothing but British imperial depopulation and Malthusian genocide. Now the synthetic freshman Congresswoman Alexandria Ocasio-Cortez has pretty much said as much, in her own words. Young people “have a legitimate question,” she asserted: maybe they shouldn’t have children at all, since climate change is destroying the planet and they have lots of student debt.

Various media report on a Feb. 24 Instagram Live video by Ocasio-Cortez cooking in her kitchen, in which she said/rambled: “Our planet is going to face disaster if we don’t turn this ship around. And so it’s basically like, there is a scientific consensus that the lives of children are going to be very difficult and it does lead, I think young people, to have a legitimate question. Ya know, should… is it okay to still have children? Not just financially because people are graduating with 20, 30, 100 thousand dollars of student loan debt so they can’t even afford to have kids in the house, but there’s also just this basic moral question, like, what do we do? And even if you don’t have kids, there are still children here in the world and we have a moral obligation to them to leave a better world to them.”

Ocasio-Cortez got crazier as she went along: “The whole premise of the Green New Deal, is that we’re screwed on climate. I’m sorry to break it to you. When it comes to climate in particular, we’re actually screwed. There is a global threat to the planet. At this point, we don’t even have to prove it. Just walk outside in the winter in a lot of places, and it’s either way worse than you’re used to, or way warmer than you’re used to. Hurricanes, storms, wildfires. We are dying now.”

COLLAPSING WESTERN FINANCIAL SYSTEM

OECD Report Warns of Corporate Debt Ticking Bomb

Feb. 26 (EIRNS)—In a new paper entitled “Corporate Bond Markets in a Time of Unconventional Monetary Policy,” the OECD warns about the giant dimensions of the global corporate debt issued by non-financial companies, which has reached almost $13 trillion at the end of 2018. “This is double the amount outstanding in real terms before the 2008 financial crisis.” But the most alarming news is that 54% of that debt is one step from junk!

“The share of lowest quality investment grade bonds stands at 54%, a historical high,” says the report, and complains that bail-in procedures have worsened the situation: “There has been a marked decrease in bondholder rights that could amplify negative effects in the event of market stress.”

The report estimates that “in the case of a financial shock similar to 2008, $500 billion worth of corporate bonds would migrate to the non-investment grade market within a year, forcing sales that are hard to absorb by non-investment grade investors.”

Other factors to be put into the equation are: a downturn in global economic growth, causing corporate debt insolvencies; central banks end of expansive monetary policies; about $4 trillion worth of corporate bonds, “close to the total balance sheet of the U.S. Federal Reserve,” to be refinanced or paid back in the next three years.

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