TUESDAY, MARCH 5, 2019

Volume 6, Number 44

EIR Daily Alert Service

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

Trump Denounces Cohen Hearings, Points to Impact on Summit

Huawei Planning To Sue the U.S. Government for ‘Bill of Attainder,’ Say Press Reports

‘CLO Debate’ Reflects Connection of Economic Downturn and Crash

Trump’s Strategy Choosing Singapore and Vietnam for Kim Summits

Patrick Moore, Greenpeace Co-Founder, Rips ‘Green New Deal’ Genocide

Tulsi Gabbard Rips Both Parties for Regime-Change Wars

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EDITORIAL

Democratic Leaders Tried To Sabotage Trump-Kim Hanoi Summit for a War Policy—Make Them Pay For It

March 4 (EIRNS)—If the American people have the spirit to act for the future of their nation and humanity, what happened in the last week of February will be the beginning of the end for the Democrats running against President Donald Trump. Their press-manufactured polling numbers should now be met with a national wave of revulsion. Last week Congressional Democratic leaders launched an attack on, and a fraudulent attempt to impeach the President while he was in a summit negotiating for peace and denuclearization on the Korean Peninsula. Their vehicle, in trying to add conjured-up new charges to the failing British-sponsored Russiagate attack on Trump, was a blatantly lying New York lawyer/financial hustler with a record of perjury as long as his arm.

But this was not simply party politics at its worst—it was a deliberate attempt to sabotage a peace, in order to deny the President a victory, and more broadly to prevent any cooperation by him with other great powers—China, Russia, Japan—for peace and development in Eurasia. The President himself, in a Twitter message Sunday, said that the all-out impeachment attack Feb. 26-28 in Congress may have contributed to his breaking off the Hanoi summit without an agreement. This was the Democratic leaders’ intention, as they all showed by pausing momentarily to praise him for ending the Hanoi summit without an agreement, and then turning eagerly back to the goal of forcing him out of office!

This message from President Trump pointed to the truth which EIRand LaRouchePAC have been fighting to get out for two years: The attack on the President is not a scandal but a geopolitical coup attempt; it originated with British intelligence and London finance; its intention is to maintain confrontation with Russia and China, and even to go to the point of war with those powers, keep the nations of the world divided, somehow stop the peaceful rise of China. President Trump’s openly professed intention to seek good relations with both China and Russia, for the common safety and economic benefit of all three nations, marked him as an adversary of British intelligence, to be removed.

Significant numbers of Americans now see the British Empire hand behind Russiagate. Today LaRouchePAC has escalated that fight for the truth, posting its interview with the former Technical Director of the National Security Agency, William Binney, proving that the original Russiagate charge—that Russians hacked the Democratic National Committee computer servers and gave the product to WikiLeaks—is false beyond reasonable doubt. We hope this interview, “Mr. President—Listen to Bill Binney, Russiagate Is a Worse Hoax than You Thought,” will be distributed far and wide.

Americans should drive out the would-be saboteurs of the Hanoi summit. The issue is peace versus confrontation to the edge of nuclear war. The danger is even greater because, with economic growth ended in Western Europe and slowing sharply in the United States, a new Wall Street crash is looming over unpayable corporate debt. Rather than attacking China we should be cooperating with its Belt and Road Initiative of great infrastructure projects, and with its leading-edge space program. That makes the deeper issue, the four economic laws of the great American System economist and philosopher Lyndon LaRouche.

U.S. POLITICAL AND ECONOMIC

Trump Denounces Cohen Hearings, Points to Impact on Summit

March 4 (EIRNS)—While exaggerated by some media as in the London Guardian’s headline, “Trump Blames Cohen Testimony for Collapse of Summit,” President Donald Trump’s two Twitter messages Sunday, March 3, clearly pointed to “the game” of the Democratic House Committee chairs.

The President tweeted, “For the Democrats to interview in open hearings a convicted liar & fraudster, at the same time as the very important Nuclear Summit with North Korea, is perhaps a new low in American politics and may have contributed to the ‘walk.’ Never done when a president is overseas. Shame!”

And in another message, responding to a post by Kimberley Strassel, who wrote: “These questions from @GOPLeader [Kevin McCarthy] for @RepAdamSchiff deserve attention and answers. Schiff looks to be doing a whole lot of freelancing. Voters deserve to know why he is communicating in secret with witnesses/subjects in investigations,” President Trump added, “And also illegally leaking to Fake News CNN & others?”

Trump’s Strategy Choosing Singapore and Vietnam for Kim Summits

March 3 (EIRNS)—Graham Allison, in a commentary in The National Interest on March 1, states that the chorus of naysayers calling the Kim-Trump summit a “failure” have missed the point. He points to the Reagan-Gorbachev summit in Reykjavik in October 1986, in which Reagan was not only interested in the arms deal, but in “the mind of an autocrat whom he thought he could persuade to try to transform his entire country” [emphasis in original]. Allison does not identify the real cause for Reagan walking away from the deal—i.e., LaRouche’s SDI, which Gorbachev and Reagan’s advisors wanted to trade away but which Reagan refused to give up, which ended up confirming LaRouche’s warning to Moscow that the U.S.S.R. would collapse economically if they refused to cooperate on the SDI.

But Allison also makes clear that President Donald Trump’s selection of Singapore and Vietnam for the two summits was a brilliant strategic move.

“Consider Trump’s selection of Hanoi and Singapore last spring as the sites for his summits with Kim Jong Un. If the objective were to excite the imagination of the leader of one of the most impoverished, isolated nations on Earth, it is difficult to imagine a more captivating venue. Only 55 years ago, the United States was at war with Vietnam, and Singapore was a notoriously corrupt, poor port that could have reminded one of North Korea today. Even with authoritarian leadership, they embraced the magic of market economics and integrated into the global economy, becoming economic powerhouses. This message was surely not lost on Kim.”

In fact, North Korean press is placing a major focus on Kim’s state visit with Vietnam, both before and after the summit with Trump. While in Hanoi, Kim met with President Nguyen Phu Trong, who is also the general secretary of the Communist Party, at the Presidential Palace, then met separately with Prime Minister Nguyen Xuan Phuc. He also toured several industrial sites before being given a grand send-off on his train ride back to North Korea. The “Vietnam model” is now an active concept in North Korea, whereas Kim, like his father, has been very hesitant to discuss or implement the similar “China model”—the massive neighbor which Koreans on both sides of the DMZ are glad to cooperate with, but hesitant to be dominated by.

Huawei Planning To Sue the U.S. Government for ‘Bill of Attainder,’ Say Press Reports

March 4 (EIRNS)—Chinese telecom equipment company Huawei plans to file a lawsuit against the United States government on Thursday, March 7 in Texas, on grounds related to a U.S. National Defense Authorization Act (NDAA), Reuters reported today. The new NDAA act has an addition which has been condemned by Beijing as targeting China, controlling U.S. government contracts with Chinese companies including Huawei, and strengthening the authority of the panel that reviews foreign investment proposals. Huawei has invited media to a press conference at its Shenzhen headquarters in China on Thursday.

The New York Times cited a source who said that it is likely Huawei’s suit will argue that the NDAA provision is a bill of attainder; that is, a legislative act that singles out a person or groups for punishment without trial, in violation of the U.S. Constitution, Art. 1, Sect. 9.

It is reported that Huawei will announce that its lawsuit will be filed in a federal court in Texas, the state in which the company has its U.S. headquarters.

STRATEGIC WAR DANGER

Tulsi Gabbard Rips Both Parties for Regime-Change Wars

March 1 (EIRNS)—Tucker Carlson invited Rep. Tulsi Gabbard (D-HI) to his Thursday night show on Fox, on Feb. 28, stating that he disagreed with most of her “progressive” policies, but admired her stand against virtually all of the Washington establishment’s support for regime-change wars.

Gabbard said: “I am a soldier in the Army National Guard. I have served now for nearly 15 years, served on two Middle East deployments, and I know personally firsthand the cost of war….

“I have seen how self-serving powerful politicians from both parties have continued this foreign policy regime change war view, where they think that we, the United States should be acting as the policeman of the world and that we should continue to go around and overthrowing and toppling dictators or countries who we don’t like, costing us, the American people trillions of dollars in the process, causing more suffering in the countries where we go and wage these wars and oh, by the way undermining our own national security as we are seeing playing out before our eyes in countries like North Korea, where Kim Jong Un has clearly stated that he is holding on to these nuclear weapons as his only deterrent against the United States coming in and waging a regime-change war in North Korea.

“So while I am deeply concerned about the fact that this summit yesterday ended without an agreement, because we need to see denuclearization in the Korean Peninsula, it’s not surprising because of this policy, this regime change war policy, that again, leaders in both parties in the foreign policy establishment here in Washington have perpetuated over and over and over again.”

Gabbard pointed to the military-industrial complex role in perpetuating these wars, and said: “The most unfortunate thing is, they sell them under the guise of humanitarianism to the American people, who want to do good things, who want to be able to help people who are suffering, but not facing the truth that in each of these different examples they have resulted in far more suffering for the people they are supposedly trying to help.”

Carlson prefaced a question to Gabbard, stating that she has announced as a presidential candidate, and then asked if anyone had agreed to debate her on this issue. She replied: “No. No. Constantly I see, again, people from both parties, instead resorting to name-calling or superficial attacks, because they refuse to engage on the substance of this argument, about why they continue to push for and wage these regime-change wars, ignoring the disastrous consequences on the people of those countries and the American people.

“The fact is, these wars are costing us, the American taxpayers, trillions of dollars that should be here, that should be invested in things like rebuilding our crumbling infrastructure, invested in the needs of our people.”

COLLAPSING WESTERN FINANCIAL SYSTEM

‘CLO Debate’ Reflects Connection of Economic Downturn and Crash

March 4 (EIRNS)—In December former Federal Reserve Chair Janet Yellen, speaking in New York, joined other regulators in warning that $4 trillion in leveraged corporate loans and junk bonds could blow up into another “2008” financial crash. Yellen also said that the heavy use of this “junk debt” to create derivatives products, known as collateralized loan obligations (CLOs), being purchased by banks and “shadow banks” like hedge funds, added to the danger—this is what triggered the 2008 crash, she said. When would this happen? When a new recession forced corporate bankruptcies and defaults; this from Yellen who, in her last months as Fed chair in 2017, had said we would not see another financial crash in our lifetimes.

Since then, JPMorgan Chase and Goldman Sachs have published big reports claiming that CLOs are not dangerous—that was only collateralized debt obligations (CDOs). Of course, CLOs are a subset of CDOs!

On March 2 Bloomberg ran “The Bomb that Blew Up in 2008? We’re Planting Another One,” by former banker and now well-known economics author Satyajit Das. His subject was CLOs. Das explained they are derivative products like CDOs, but each CLO is based on small numbers of large corporate leveraged loans, instead of large numbers of small mortgages. There are $700 billion in such securitized leveraged loans now, and hedge funds, mutual and pension funds, and Japanese banks have been buying $100 billion more a year. This makes them more risky and dangerous.

One shale oil driller, one Sears, even one GE going into default, can cause major losses from such a derivative product. Many over-indebted firms doing so—i.e., a recession—could trigger a financial blowout, as Yellen had already warned. And recession is what we now see hitting across Europe, while the recent U.S. economic growth is suddenly dropping toward zero.

“Several aspects of this risk aren’t well understood,” Das wrote. “The credit quality of the leveraged loans which underlie the bulk of CLOs is poor, typically not investment-grade. Borrowers are highly leveraged. The loans increasingly have minimal investor protection, with over 70% lacking any covenants that would allow monitoring of financial condition and early intervention to manage problem borrowers.” He concludes, “There are too many parallels to 2008 for comfort. Investors, many with uncertain expertise and weak holding power, have increased their exposure in the search for higher returns, which can be as high as 20% for the riskiest equity pieces…. Built into this speculative episode, like its predecessors, is a euphoric flight from reality and a blindness to risks that continue to rise.”

SCIENCE AND INFRASTRUCTURE

Patrick Moore, Greenpeace Co-Founder, Rips ‘Green New Deal’ Genocide

March 3 (EIRNS)—Patrick Moore, the co-founder of Greenpeace who dropped out when they denounced nuclear power, countered Alexandria Ocasio-Cortez’s Green New Deal as a genocidal piece of lunacy in a series of remarks on Twitter on Feb. 23.  Replying to a tweet from Ocasio-Cortez, he wrote:

“Pompous little twit. You don’t have a plan to grow food for 8 billion people without fossil fuels, or get the food into the cities. Horses? If fossil fuels were banned every tree in the world would be cut down for fuel for cooking and heating. You would bring about mass death.” And then replying to another person posting on Ocasio-Cortez’s Twitter page, he wrote:

“You are delusional if you think fossil fuels will end any time soon, maybe in 500 yrs. AOC’s attitude is unjustifiably condescending. She is a neophyte pretending to be wise. Her kind bring ruination if allowed to be ‘in charge.’ (from the cheap seats).”

On Feb. 19, Moore wrote a post, and included graphics to prove his point:

“AOC’s Green New Deal calls for: ‘(J) removing greenhouse gases from the atmosphere.’ … Technically (scientifically) this would mean removing all H2O vapour and all CO2 which would mean the eradication of all life on Earth. Brilliant.”

NASA Makes Another Small Start on Revolutionary Nuclear Rockets

March 4 (EIRNS)—NASA has appropriated $100 million in the recently passed budget to develop nuclear-thermal rocket engines, according to a report in The Hill on March 1 by Mark Whittington. The extensive account says that NASA now intends a flight demonstration by 2024 of technology which could be a game-changer for space travel.

Nuclear propulsion has been worked on at times since the Kennedy Administration, but always starved of funds and fought by greenies and their British Empire anti-NASA controllers.

The nuclear rocket described by The Hill from a NASA release would superheat liquid hydrogen in a nuclear reactor and shoot the hydrogen plasma out through a rocket nozzle.

“Nuclear Thermal Propulsion (NTP) is far more efficient than a chemical rocket, reducing flight times to destinations such as Mars and requiring less fuel. Astronauts would be subjected to less radiation and less time in microgravity using NTP….

“The Space Launch System, as tremendously expensive as it is, would be a better rocket with a nuclear upper stage.”

The article concludes: “Nuclear propulsion technology will mean the difference between a deep-space exploration program consisting of sorties that land on Mars and visit other destinations, do a lot of good science, then return, and one that expands human civilization throughout the Solar System….

“Nuclear rockets, in short, will be as game-changing for space travel as the steam engine was for ocean voyages.”

China Opens Mars-Simulation Base To Excite Young People in Space Exploration

March 4 (EIRNS)—In an area in the northwest of China’s Qinghai Province, which is called the most “Martian-like” place on Earth, the People’s Republic has opened a huge Mars-simulation base, on March 1. The complex of buildings, with a launch site, a space camp, and tents, is on an 80-acre site near the Qinghai-Tibet plateau. The camp is open to tourists, researchers, and the media, and can accommodate up to 160 people. The idea is that the camp, which cost $22 million and took eight months to build, is similar to the habitats that might be placed on Mars in the future. Project founder Gao Junling said at the opening that participants could immerse themselves in the environment of Mars and try to solved the problems they would face on Mars, such as how to grow food and solar power generation.

China will launch its first mission to Mars in 2020, which will consist of an orbiter, a lander, and a rover, after which one could expect, interest among the Chinese public in Mars exploration will skyrocket.

THE NEW GLOBAL ECONOMIC ORDER

Economists Tell Europe To Seize Opportunities To Cooperate with China

March 4 (EIRNS)—China Daily on March 1 covered a report by the European Economic Advisory Group which states: “The growth in the Chinese economy has generated new markets for European exports and sources of imports. China is presenting itself as a defender of multilateralism and a rules-based international order, while the United States is retreating into mercantilism, bilateral deals, and tariff wars.”

Clemens Fuest, president of the Munich-based Ifo Institute for Economic Research and a lead author of the report, said in Brussels on Feb. 26 that “there is of course competition through Chinese exports to Europe, but there are also opportunities for Europe through exports to China.” EU exports to China far exceed U.S. exports to China. The EU is China’s largest trade partner, while China is the EU’s second-largest trade partner, trailing the United States. Western investment in China is much larger than Chinese investment in the rest of the world, and three-quarters of Chinese investment is now in Asia, not Europe.

Fuest said Chinese investment in sectors such as infrastructure is, in principle, welcome.

“We think the fear of Chinese investors coming to buy infrastructure is exaggerated…. Overall, we think it is in Europe’s interest to attract more Chinese investment, not less,” Fuest said. He believes that the likelihood of political or trade conflict is less if there is more mutual direct investment.

China’s ‘Two Sessions’ Will Discuss Prospects for 2019

March 4 (EIRNS)—China’s leaders have begun their political season for 2019 with the convocation of the National People’s Congress, China’s legislative organ, and the Chinese People’s Political Consultative Conference (CPPCC), an advisory board for the NPC. Some 3,000 delegates have descended on Beijing for the two sessions of these bodies, which will last until March 15. All of the major issues facing China this year will be discussed and legislated on. In the hustings, however, the discussions have been taking place for some time, and with the proliferation of WeChat and other wireless communications networks.

One issue to be discussed at the sessions is moving forward on poverty alleviation. By 2020, China is supposed to achieve the category of a “moderately prosperous country.” And, with that, everybody is to be above the poverty line. The year 2019 will be the key year to achieve that goal, essentially eliminating poverty in those remote mountain regions that are difficult to access, the only pockets of poverty still remaining. But both party members and non-party members, who are largely based in the CPPCC, have a firm commitment to do that.

President Xi Jinping has laid out three “main battles” as a focus for the “two sessions,” namely, poverty, pollution, and risks (including financial risks). Zhang Yesui, the spokesperson of the NPC, pointed out at a March 4 press conference four pieces of legislation that the meetings will address: 1) deepening market reform with a hallmark law proposal which will ease the way for greater foreign investment in China; 2) legislation on people’s livelihood, including improving health service and medical care; 3) national security and social governance legislation, strengthening the rule of law and the judicial system and creating a veterans benefits structure; and 4) revamping the organizational structure of the NPC.

All of this is occurring in a much more tense environment than last year, with the U.S.-China trade dispute. While the trade conflict seems to be moving in the right direction, it has been used as a pretext by U.S. China-bashers to whip up anti-China feeling in the United States. Zhang said that China’s policy toward America has been consistent and transparent and will continue to be so, but that China “will stay firm in protecting our own development. While China and the U.S. have a different history and culture, this doesn’t necessarily lead to confrontation.”

Reach us at eirdailyalert@larouchepub.com or call 1-571-293-0935

My Comment: All of these Financial Weapons of Mass Destruction aka Derivatives are created by Rothschild ZIONIST Central Banks. Need I say more?