WEDNESDAY, SEPTEMBER 18, 2019 Volume 6, Number 185 EIR Daily Alert Service P.O. Box 17390, Washington, DC 20041-0390

• The Exoneration of Lyndon LaRouche and the New Normal
• Galloni Addresses Forum in Xi’an on Italy’s Interest in the Belt and Road
• Li Kiqiang Visit to Russia Intensifies Russian-Chinese Economic Cooperation
• Was the Saudi Oil Strike Bolton’s Parting Shot?
• Vladimir Putin’s Southwest Asia Diplomacy Confounds London
• President Trump Rips Green New Deal Insanity in New Mexico Rally
• Happer Quits National Security Council, as Scientific Review of Climate Change Is Stymied
• DOJ Strikes Again Against China-U.S. Cooperation, With New Arrest
• Ron Paul: Negative Interest Rate Bonds Is ‘Biggest Bond Bubble in History and It’s Going To Burst’
• Deutsche Bank Turns to More Green Finance

EDITORIAL

The Exoneration of Lyndon LaRouche and the New Normal

Sept. 17 (EIRNS)—Why does Lyndon LaRouche, both the man and his ideas, urgently need to be exonerated? Because what are now understandably viewed as significant breakthroughs that the LaRouche movement has achieved over the last week—the leading role of Helga Zepp-LaRouche and Jacques Cheminade in bringing Lyndon LaRouche’s ideas to the Euro-Asia Economic Forum in Xi’an, China; the public dialogue between Kesha Rogers and NASA’s Jim Bridenstine over LaRouche’s proposals for the future of mankind’s space mission; the Schiller Institute’s International Days of Action with youth across the planet, where LaRouche’s systematic refutation of Malthusianism was presented on seven continents—would instead be part of an ongoing, normal strategic discourse around the planet, if Lyndon LaRouche had not been unjustly incarcerated and his body of scientific work stigmatized and blacklisted.

Such discussion of LaRouche’s policy proposals would be normal and sane. After all, his ideas do provide the scientific basis for addressing and solving the central strategic crises facing the planet.

What is abnormal and thoroughly insane is rallying millions of youth internationally to commit mental and physical hara-kiri in the name of “saving the planet” (i.e., saving Wall Street); or promoting the end of the nuclear and the hydrocarbon era; or advocating that children must have the freedom to choose among 100 different genders. All of these are policies that the bankrupt City of London and Wall Street are promoting feverishly, trying to convince people that such extreme Malthusianism should be the new normal. Their battle cry is: stop eating, stop heating, and stop procreating.

Both green teen Greta Thunberg and Hong Kong yuppie provocateur Joshua Wong are in Washington, D.C. this week, to ply their respective wares on behalf of London’s agenda. And in New York City, the mobilization for FridaysForFuture got a big boost this week from the announcement by the New York City Department of Education (the largest school district in the U.S., with 1.1 million students), that they would allow students to have an “excused absence” and skip school this Friday, so that they can participate in the global youth climate strikes. The New York Times happily reported reactions from youth organizers: “This completely changes things”; “this changes the dynamic”; and “holy smokes, this thing could get huge!”

The hope of the British promoters of this whole campaign, is that they will be able to use this ruse to get a massive turnout on Friday, and that this will contribute to the stampede for global green genocide that they will take to the United Nations starting early next week. But LaRouche movement organizers are finding in ongoing campus deployments, that there is not unanimity for the Malthusian worldview among youth, and that there continues to be remarkable openness to LaRouche’s ideas—once the controlled environment is broken.

THE NEW GLOBAL ECONOMIC ORDER

Galloni Addresses Forum in Xi’an on Italy’s Interest in the Belt and Road

Sept. 17 (EIRNS)—Speaking at the 2019 Euro-Asia Economic Forum in Xi’an on Sept. 12, Italian economist and Schiller Institute adviser Antonino (“Nino”) Galloni laid out three main reasons why Italy is interested in the Belt and Road cooperation.

“Africa and countries with a higher rate of demographic growth and lower GDP growth should promote a higher domestic growth,” Galloni said, by “improving their domestic industries, substitute imports, upgrading infrastructure, building efficient connections with Europe and the rest of the world.” Those countries should “export less raw materials and semi-finished products, create a productive capacity to fulfill the domestic demand and cut down low-wage exports.” Galloni recalled that the first economist who understood this was the Italian Antonio Serra, at the end of 16th century, who demonstrated to the Spanish Viceroy in Naples that national wealth was not achieved through gold or silver, through taxation or selling raw materials, but “by improving the industriousness of citizens, mainly by education.”

Galloni also explained the Transaqua project to refill Lake Chad and bring water to Sub-Saharan Africa.

In older industrialized countries, “energy flux must be intensified, because containing it—in the false perspective of helping the environment—is a mistake, as Lyndon LaRouche taught us.” Old technologies are among the causes of pollution and “technological progress allows the destruction of polluting agents per unit of product.”

“Recently industrialized countries, like China, have correctly chosen to increase domestic demand instead of exports.” Investments in infrastructure, higher wages and employment are compatible with the increase of profits, but not with the “increase of the rate of profit,” which is typical of stock markets and financial investments.

Galloni also called for “new international agreements such as Bretton Woods, even if different from the one of 75 years ago.” This subject was raised again in the discussion, spurring a lively debate among academicians at the event.

Li Keqiang Visit to Russia Intensifies Russian-Chinese Economic Cooperation

Sept. 17 (EIRNS)—Chinese Premier Li Keqiang’s Sept. 16-18 official visit to Russia will focus on key directions in future bilateral cooperation and broaden the space for practical cooperation between the two countries, Chinese Ambassador to Russia Zhang Hanhui said yesterday in a signed article.

The two sides will exchange ideas on fully implementing the important strategic consensus reached by the two countries’ heads of state, sign key documents on bilateral cooperation and inject strong vitality to the development of a comprehensive strategic partnership of coordination for a new era, Zhang said. Zhang mentioned the breakthrough in bilateral trade as the first of all the fruitful results. In 2018, bilateral trade between China and Russia hit a record high of over $100 billion. Bilateral trade has maintained steady growth momentum since this year, reaching $61.13 billion by the end of July, a 4.7% year-on-year increase.

Secondly, China and Russia have taken concrete steps to push for major cooperative projects. The Yamal liquefied natural gas project in Arctic Russia, in which China is a major participant, has seen smooth operation of its production lines. The two sides have also signed agreements to promote cooperation in the nuclear sector and satellite navigation systems, and made steady progress in the joint development of a wide-body long-haul passenger jet.

Thirdly, cooperation in investment has made positive progress, Zhang wrote. Six Chinese banks have established branches in Russia, forming cooperative relations with their Russian counterparts. The two sides have also strengthened financial cooperation in the frameworks of the Asian Infrastructure Investment Bank (AIIB), the Silk Road Fund and others. In addition, the two countries have been boosting their interconnectivity. The article cited examples including the construction of the China-Mongolia-Russia Economic Corridor, and the launch of direct air routes connecting cities of the two countries.

Furthermore, local-level and border cooperation has deepened, as the two sides established “Yangtze River-Volga River” and “China’s Northeast-Russia’s Far East” regional cooperation mechanisms and set up relationships between 140 pairs of sister cities and provincial-level regions. Zhang pointed out that the two big economies are complementary in industries and share broad cooperation prospects.

STRATEGIC WAR DANGER

Was the Saudi Oil Strike Bolton’s Parting Shot?

Sept. 17 (EIRNS)—The specifics of the “whodunit” on the ground regarding the weekend drone (or cruise missile) strikes against Saudi Arabia’s major oil field and distribution center, may not yet be known, but strategically this is clearly a case of the classical British gambit: When you are in trouble, blow things up. To London’s dismay, President Donald Trump had been moving towards dialogue with Iran’s leaders, just as he has attempted to do with Russia and China. And since National Security Adviser John Bolton, who has openly advocated war against Iran for years, was a British asset in the Trump camp from the outset, it’s reasonable to ask if this was his parting shot on their behalf—so to speak.

After bellicose rhetoric at first, President Trump seems to be maintaining a calmer approach of waiting to figure out who did what, before responding. “Well, we have a lot of options, but I’m not looking at options right now.  We want to find definitively who did this.  We’re dealing with Saudi Arabia.  We’re dealing with the Crown Prince and so many other of your neighbors, and we’re all talking about it together.  We’ll see what happens,” Trump stated Sept. 16.

Iran’s Supreme Leader Ayatollah Ali Khamenei stated today that Iran had nothing to do with the attack, and that there would not be a high-level meeting between Iran and the U.S. at the UN. Even The Hill wrote, in an otherwise misleading article: “Trump recently has seemed open to meeting with Iranian President Hassan Rouhani at the upcoming United Nations General Assembly, but the likelihood grew significantly less over recent days following the oil facility attack.”

An editorial in China’s Global Times made the following point about who in Washington wants war, and who doesn’t: “Whether the U.S. will take action against Iran is the next suspense in the Middle East situation…. When John Bolton was in the White House, the U.S. was quite close to an attack on Iran. Donald Trump called off a military strike at the last minute. Noticeably, the President spoke in a milder tone than [Secretary of State] Pompeo on the attacks on Saudi oil facilities. He didn’t name Iran, but only said ‘There is reason to believe that we know the culprit, are locked and loaded depending on verification.’ Despite Bolton’s departure, Trump is still being surrounded by hawks that control U.S. military might and are eager to flex their muscles…. Trump wants to be a President who can reinvigorate the American economy. It’s widely believed he has no interest in wars. But certain forces in the U.S. are pushing Washington to use military power. It’s hoped they can be restrained instead of being allowed to dictate the U.S.”

Vladimir Putin’s Southwest Asia Diplomacy Confounds London

Sept. 17 (EIRNS)—In the Turkish capital, Ankara, for the Astana Process Syria talks among the heads of state of Turkey and Iran, Russian President Vladimir Putin addressed the attack on Saudi Arabia’s oil fields. “In order to protect our kind, our country, we are ready to provide the corresponding aid to Saudi Arabia,” TASS reported Putin saying. “The political leadership of Saudi Arabia needs to make a wise state decision, as was done by Iranian officials when they purchased S-300 [missile defense systems from Russia], and as was done by [Turkey’s] President Erdogan with the purchase of S-400 from Russia. They will reliably protect all infrastructure objects of Saudi Arabia.”

Putin also emphasized, after a bilateral meeting with President of Iran Hassan Rouhani: “I would also like to note the practically completed procedures in the Eurasian Economic Community to create a free trade zone with Iran,” reported the Kremlin.

Both initiatives are very significant flanks on the British war-plan which is designed to unleash a confrontation between a Russia-backed Iran and a U.S.-backed Saudi Arabia. Putin has been engaging in extensive and highly imaginative diplomacy throughout Southwest Asia, ever since Russia was double-crossed and burned by President Barack Obama on the invasion of Libya and assassination of Muammar Qaddafi in October 2011.

Putin at the time vowed to never let anything like that happen again, and later took the strategic initiative by providing military aid to Syria, which Lyndon LaRouche characterized as a master strategic flanking operation. Since then, Putin has developed a working relationship with all sides of the Southwest Asia crisis: he has reached extensive agreements with Turkey, including recently selling them S-400 missile defense systems; he has engaged in ongoing diplomacy with Saudi Arabia, now including offering them the S-400; and he has held constant meetings and phone conversations with Israeli Prime Minister Benjamin Netanyahu, whose country has a large Russian minority. All of this—in the context of his announcement of breakthroughs in weapons based on new physical principles, which Putin announced to the world on March 1, 2018—has created a process that the British have not been able to control.

U.S. POLITICAL AND ECONOMIC

President Trump Rips Green New Deal Insanity in New Mexico Rally

Sept. 17 (EIRNS)—President Donald Trump gave a hearty 2020 campaign speech to an overflow crowd in Albuquerque, New Mexico last night, directed, as he said, to “the forgotten men and women” who want a future for their children and the country.

There was no bowing at this rally to the British Empire’s Malthusian dictate that the human race give up fossil fuels to save the planet from a non-existent “man-made climate crisis.” First up in President Trump’s list of his administration’s successes, was that he has rolled back “the war on energy,” and geared up U.S. oil and gas production.

The U.S. is the number-one oil and gas producer in the world now, and that means more jobs, higher wages, and energy independence, he told the crowd. “Under the Green New Deal that all goes away…. You can forget it. No more cows, no more airplanes. No more trips, a single car—make it electric, a single car. You’re not allowed to travel more than 162 miles.

“They’ll call us the hermit nation; we’ll never leave our house now. It’s crazy!”

Every major Democratic candidate wants to eliminate oil and gas, he warned.

Interestingly, one of the strongest points where he drew applause, came later to his attack on the Democrats for wanting to indoctrinate our students with such “left-wing ideology.”

The British gambit to sink Trump into an Iran military strike was nowhere to be heard in his New Mexico speech. Trump made brief reference to the tough sanctions he has placed on Iran, but there was no mention of any pending crisis. His only reference to last weekend’s bombing of the Saudi oil refinery was an implicit one, when he pointed out that if a few years ago the U.S. would have faced “a problem” like we saw two days ago in the Southwest Asia, there would have been panic, but now, he said, we are energy independent.

Happer Quits National Security Council, as Scientific Review of Climate Change Is Stymied

Sept. 17 (EIRNS)—Physicist William Happer left the National Security Council and returned to academia on Sept. 13, various media reported last week. As the reports go, Happer had agreed to take the position for only a year in the first place, and since his proposed President’s Commission on Climate Security has been put on ice, he resigned as he had initially intended.

Happer, like many scientists, rejects the assertion that all scientific debate over “man-made climate change” is settled, and he proposed that the commission initiate the urgently needed scientific review of the natural and human influences which actually determine changes in the Earth’s climate. The climate crisis crowd mobilized everything in their power to stop its formation. They feared Happer, who is no lightweight. In 1985, he chaired the National Academy of Sciences study on laser fusion; while serving as Director of Emerging Technologies at the NSC, he was key in formulating the President’s March 2019 Executive Order on hardening American infrastructure from electro-magnetic pulses.

Caleb Rossiter, Executive Director of the “CO2 Coalition” founded earlier by Happer to fight against the absurd idea that CO2 is a pollutant, told E&E News on Sept. 12 that Happer’s proposals “were taken extremely seriously” at the White House, and that Happer had “injected a little backbone into Trump’s generalized strong distrust of the climate crisis narrative.”

But Happer’s proposed climate science review was opposed by various Trump Administration officials, according to media accounts. Presidential science adviser Kelvin Droegemeier was one of those reported to have opposed the commission, on the grounds that it could be harmful to Trump’s 2020 re-election campaign to question the “climate crisis” narrative.

Droegemeier’s “election concerns” smell disingenuous. A meteorelogical computer modeler who espoused the man-made climate ideology before being named to head the White House Office of Science and Technology Policy, his appointment to that post was strongly endorsed by none other than John Holdren, President Obama’s science adviser who was a notorious advocate of reducing the population of the world, along with his close allies Paul “Population Bomb” Ehrlich and Commander of the British Empire Hans Joachim “John” Schellnhuber.

DOJ Strikes Again Against China-U.S. Cooperation, with New Arrest

Sept. 17 (EIRNS)—A conspiracy charge is well-known as the “go-to” charge when the U.S. Department of Justice wants to “get” a political target, on whom they have no evidence of an actual crime. The DOJ has gone one further, with its big fanfare around the arrest yesterday in New Jersey of a Chinese government employee on the ludicrous charge of “participating in conspiracy to fraudulently obtain U.S. visas.”

How did Zhongsan Liu, head of the New York office of the China Association for International Exchange of Personnel, a Chinese government agency, allegedly perpetrate this “crime”? By requesting visas for Chinese individuals “under the guise of research scholars, but in reality their assignment was to recruit top U.S. talent to benefit the government of China,” according to the Assistant Director of the FBI’s Counterintelligence Division John Brown.

That is criminal, because China is defined as an “adversary.” FBI Assistant Director William F. Sweeney, Jr. calls Liu’s case “another example of the pervasive and organized effort, in this instance an allegedly flat-out illegal one, to fulfill a top priority of collecting information to advantage a foreign adversary,” the DOJ release informs us. Sweeney promises that “FBI New York, along with our intelligence community partners, will continue to disrupt the behavior when it is detected.”

Adding to the menacing message of this overtly political attack on U.S.-China relations, the DOJ reports that the case is being handled by the Terrorism and International Narcotics Unit in the DOJ’s Criminal Division. How alleged conspiracy to commit visa fraud falls under the purview of that unit is quite a question. According to the DOJ, the Terrorism and International Narcotics Unit “is responsible for the investigation and prosecution of transnational acts of terrorism, narco-terrorism, narcotics trafficking, and money laundering which threaten U.S. national security.”

COLLAPSING WESTERN FINANCIAL SYSTEM

Ron Paul: Negative Interest Rate Bonds Is ‘Biggest Bond Bubble in History and It’s Going To Burst’

Sept. 17 (EIRNS)—Former congressman Ron Paul told CNBC’s “Futures Now” show on Sept. 12: “We’ve never had as many currencies in negative interest rates. $17 trillion worth of bonds [are] in negative interest rates. It’s never existed before. And, that’s a bubble. So, we’re in the biggest bond bubble in history, and it’s going to burst.”

He continued: “You can’t predict exactly where the creation of credit goes. We have a ton of inflation with all that QE [quantitative easing]. And, every time you lower interest rates below market levels and create new credit, that’s a bubble…. You don’t know this precise time. But you know it can happen.”

Paul’s comments are useful, but they miss the point Lyndon LaRouche repeatedly emphasized with the aid of his “Triple Curve/Typical Collapse Function” pedagogy: It is the unitary interaction of three distinct processes—monetary aggregates, financial aggregates, and physical economic parameters—that define the economic dynamic overall. Paul, and others, not only sidestep or even ignore the decisive physical economic process; but they also consistently mistake the mere monetary bubble for the total financial aggregates bubble—i.e., the derivatives cancer which is two orders of magnitude greater ($1.5 quadrillion) than the admittedly huge bond and other debt bubbles. But the latter are merely the trigger for the former, whose explosive charge is what will level the entire trans-Atlantic financial system unless it is placed through bankruptcy reorganization.

Deutsche Bank Turns to More Green Finance

Sept. 17 (EIRNS)—Deutsche Bank’s Damascus Road conversion, abandoning investment banking and going back to commercial banking, is false labelling. Deutsche Bank and other German banks have already jumped on to the “Green finance” fraud. Fabrizio Campelli, wealth-management head of Deutsche Bank, said the bank will advise customers to invest more in environment, social and governance (ESG) type of investments. “ESG is more and more an issue in talks with customers,” Campelli said. “Therefore, the analysis of ESG factors, advisory and related investments will no longer be just an important part of our offer for customers, but the issue will more and more be the basis for everything we are doing.”

Postbank, a division of Deutsche Bank, is already advising its customers to invest in ESG funds of DWS. Commerzbank, Hypovereinsbank, and Targobank are also investing more in “green and ethical” funds, according to Fonds Professionell Online magazine.

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