EIR Daily Alert Service, Saturday, March 21, 2020
SATURDAY, MARCH 21, 2020
Volume 7, Number 57a
EIR Daily Alert Service
P.O. Box 17390, Washington, DC 20041-0390
- Wartime Reality Is Sinking In
- California Governor Denounces Anti-China Xenophobia; “We Must Recognize Our Common Humanity”
- New York and California Announce Tough New Measures to Contain Coronavirus Spread: President Trump Applauds Them
- We Can Bring Our Finances Back Very Quickly, Trump Claims, But We Can’t Bring Back the People
- Rep Ilhan Omar’s Damascus Road
- Some Democrats Can’t Break From Their British Breeding
- Coronavirus Impacts U.S. Military Operatins in Iraq, Afghanistan
- Stoltenberg Tells NATO Members To Be Afraid of Russia Even in a Pandemic
- Report: Trump Refused Retaliation Against Iran Due to Coronavirus Pandemic
- Bank of England Slashes Interest Rates to 0.1%
- Coronavirus and Oil Price Drop Cause Thousands of West Texas Job Losses
- Chinese Share Their Expertise on Coronavirus Control With African Health-Care Officials From 24 Countries
- Putin, Xi Jinping Hold Telephone Call on Coronavirus Crisis
- NASA Shuts Down to Protect Its Workforce
EDITORIAL
Wartime Reality Is Sinking In
March 20 (EIRNS)—The fact that the world is in a state of war, involving every country on Earth, is rapidly sinking into people’s consciousness. This reality is reflected in the breaking down of many—but not all—of the British-orchestrated divisions between nations, between political parties, and even in ongoing military confrontations and those being threatened. In several crucial ways, those caught in such divisions are stepping back, and are even coming together in some cases, to fight the common enemy.
The Democrats who led the coup attempt against President Trump, screaming “Russia! Russia! Russia!” for months on end, are coming to their senses. Democrat Congressional leaders Nancy Pelosi and Chuck Schumer, while calling for a “Marshall Plan” to restore the decayed public health system in America, are working with Trump and the Republicans on bills to get emergency aid to businesses and individuals suffering from the shutdown which is now in place in all the major U.S. hot spots of the COVID-19 disease. When Schumer called on Trump to activate the Defense Production Act immediately, to use the powers of the Presidency to direct industrial facilities to produce emergency medical and related goods, Trump agreed, and described his discussion with Schumer as “extremely good.” The leading Democrat Governors, led by New York’s Andrew Cuomo and California’s Gavin Newsom—traditionally no friends of Trump—have implemented forced closures of non-essential businesses, and have demanded “shelter in place” for all citizens, while offering thanks and praise to President Trump for the close cooperation between his administration and the state governments in confronting the crisis.
The military and the National Guard have placed their considerable resources in service to the civilian battle with the enemy, and have put their foreign military operations on hold in Iraq, Afghanistan, and even to a lesser extent in regard to Iran. Despite the outrageous and vile attacks on China from the media and from Secretary of State Mike Pompeo, Trump today reiterated his friendship with President Xi Jinping and his admiration for the Chinese nation. Perhaps not completely in jest, the President today, in his now-daily coronavirus press conference, and with Pompeo standing right next to him, made a reference to “the State Department, or as they call it, the Deep State Department.”
But there is no such progress on the underlying cause of the pandemic—the fifty years of systemic take-down of the American System principles set in place during and after World War II under the leadership of Franklin D. Roosevelt: Nixon’s destruction of the fixed exchange rate and gold-reserve Bretton Woods system in 1971; the takedown of Glass-Steagall under Fed Chairman Alan Greenspan in the 1990s; the carte blanche given to the banks by Bush and Obama following the 2008 financial collapse, to continue and expand the wild speculation which had led to the collapse. The world is now paying the price for these evil policies.
President Trump, both during his 2016 campaign for President, and in statements early in his Presidency, called for restoring Glass-Steagall and the American System policies of Alexander Hamilton. Facing multiple coup attempts from London’s MI6, fully supported by the Democratic Party and the corrupt U.S. media, Trump refrained from standing up to Wall Street, and from implementing these policies. But now there is no choice but to act immediately, as Wall Street and the City of London have unleashed potentially unlimited printing of “helicopter money” to bail out the bankrupt financial system. As Helga Zepp-LaRouche asserted in her emergency call to action of March 18, “The systemic crisis is spinning out of control. The only remedy to prevent a further devastation of the real economy, a dramatic increase of mass unemployment, and the loss of lives of the poor and vulnerable segments of the population, is to close down the financial markets. This is the necessary first step, to then use this banking holiday to implement the reorganization of the financial system, starting with a global Glass-Steagall separation of the banks, exactly as Franklin D. Roosevelt did in 1933.”
U.S. POLITICAL AND ECONOMIC
California Governor Denounces Anti-China Xenophobia; “We Must Recognize our Common Humanity”
March 20 (EIRNS)—Following his announcement yesterday of a state-wide “stay at home” order in response to the expanding coronavirus pandemic, California Governor Gavin Newsom usefully addressed the wave of anti-China xenophobia which, with the emergency of the coronavirus, has increased in the state and in the country, which he called a “black eye” on the history of the United States “and our state.”
He recalled that he comes from the Bay Area, which initiated the 1882 Chinese Exclusion Act, preventing certain categories of Chinese laborers from entering the country, which was later amended in 1924 to exclude all Chinese. It wasn’t until 1943 that the law was repealed.
There must be, he said, “a deep, deep recognition of the xenophobia and racism that is being perpetrated against Asians in our state.” Pointing to the “huge increase” in assaults on people of Asian descent, he urged, “I want you to know that we’re better than that… I hope people put down their bigotry, their bias, and recognize that in a state where 27% of us are foreign-born, a state that is truly universal—the most diverse state in the world’s most diverse democracy—that in order to meet this moment, we have to recognize our common humanity.” Gavin thanked the state’s residents for “recognizing the urgency of tonight’s call,” and said he looks forward to working closely with everyone, “so everyone understands where we are and where we’re going, as a state and as a nation.”
Gavin’s remarks stand in stark contrast to some of the vile statements coming from Fox News, Republicans, and Democrats of various stripes, including those like Fox’s Tucker Carlson who is sane on other issues but disgusting on the issue of China. Among the worst is Senator John Cornyn (R-Tex.), who blames China for the coronavirus because “It’s a culture where people eat bats and snakes and dogs and things like that.” In a March 18 conference call with reporters, he charged that these viruses “are transmitted from the animal to the people, and that’s why China has been the source of a lot of these viruses like SARS, like MERS, the Swine flu, and now the coronavirus.” Swine flu was, of course, first detected in the United States in 2009, and MERS was first identified in Jordan in 2012, according to the Centers for Disease Control and Prevention. The CDC says the first cases of SARS were reported in China’s Guangdong province in 2002.
New York and California Announce Tough New Measures To Contain Coronavirus Spread; President Trump Applauds Them
March 20 (EIRNS)—Over the past 24 hours, Governors Gavin Newsom of California and Andrew Cuomo of New York have announced aggressive new “home isolation” measures aimed at containing the spread of the coronavirus in their states. Pennsylvania Governor Tom Wolf did the same yesterday; Connecticut Governor Ned Lamont did the same today, and New Jersey Governor Philip Murphy will make a similar announcement tomorrow.
Yesterday, Newsom announced a state-wide “stay at home” order to go into effect immediately and remain in place “until further notice.” People are to stay at home except for essential purposes—buying food or prescription drugs and gasoline, as well as traveling to jobs deemed essential. Those who violate the order can be charged with a misdemeanor. The Governor is also deploying 500 National Guard personnel to assist with food distribution and humanitarian work.
Officially, there are 675 confirmed cases of coronavirus in California, and 16 deaths; but in a letter to President Trump, urging greater federal intervention, Gov. Newsom warned of state projections that up to 56% of the state’s population—25.5 million people—could become infected over the next two months.
In New York, there are nearly 8,000 confirmed cases statewide—about half of the total cases in the U.S. Nearly half of those 8,000 are in New York City. Cuomo today ordered stringent new measures, to go into effect on Sunday night. These stipulate that non-essential businesses keep 100% of their workforces at home, except for essential services. He specified that this is not a “shelter-in-place” policy, as that is reserved for “an active shooter or a school shooter.” But he added, “We’re all in various levels of quarantine, and it’s hard…. When I talk about the most drastic action we can take, this is the most drastic action we can take…. These provisions will be enforced. These are not helpful hints. This is not if you really want to be a great citizen. These are legal provisions.”
Businesses that don’t comply will be fined, although individuals will not be. Cuomo urged citizens to practice common sense: maintain social distancing when they leave their homes to walk the dog, take a walk or a run. People are urged not to use mass transit unless absolutely necessary.
In today’s White House coronavirus task force briefing, President Trump told a reporter he didn’t think it would be necessary to impose a Federal lockdown order to keep people in their homes. Such steps might be necessary in such “hot spots” as New York or California, he said, but he didn’t consider it necessary nationwide. Pointing to the actions taken by Newsom and Cuomo, however, the President said, “I applaud them. They’re taking very strong, bold steps, and I applaud them.”
We Can Bring Our Finances Back Very Quickly, Trump Claims, But We Can’t Bring Back the People
March 20 (EIRNS)—In a fiery press conference on the coronavirus issue on Friday, President Trump affirmed his commitment to the American people in this war against the “invisible enemy,” and affirmed his commitment to people around the world with an important statement on his respect for China and for their President, Xi Jinping. Responding to a question on the timing of China’s response to the outbreak of the virus, President Trump responded—with Secretary of State Pompeo, who has attacked and denounced China daily for the past weeks—standing right next to him:
“I can speak for myself. I have a good relationship with China and President Xi. I have great respect for President Xi. I consider him to be a good friend of mine. It’s unfortunate that this got out of control—it came from China, it got out of control. Some people are upset. I know President Xi—he loves China, and he respects the United States. And I have to say, I respect China greatly, and I respect President Xi.”
Trump also took the opportunity to take a swipe on the State Department, and by implication Pompeo himself, when he said Pompeo “needs to get back to the State Department—or they call it, the Deep State Department.”
Pompeo discussed the actions of State on border control and international travel restrictions, and otherwise performed his British protocol, leveling a few attacks on China for unleashing the “Chinese Virus.” Notably, Trump cut Pompeo off from answering a question from the press on whether Iran was behind the recent attacks in Iraq, saying that question shouldn’t be answered right now. Pompeo also took aim at the disinformation about the origin of the coronavirus being circulated by Russia, China, and Iran. Noting the statement circulating that it was the U.S. military who brought the coronavirus to Wuhan, he said that the American people should not listen to “the bad actors,” and instead should rely on their “trusted media sources” [sic], which one may assume were present in the room.
As usual, Trump had the gloves off for those trusted media sources, and especially took aim at Comcast/NBCs Peter Alexander, referring to his media bosses as “Con-cast.” Trying to exploit National Institute of Allergy and Infectious Diseases (NIAID) director Anthony Fauci’s statements on the importance of testing the malaria drug, and Trump’s insistence that the drug be tried in the coronavirus fight, Alexander asked a series of questions, ending with an emotionally charged question: “What do you say to Americans who are scared about coronavirus?” Trump responded, “I say that you’re a terrible reporter. That’s what I say. I think that’s a very nasty question, and I think it is a very bad signal that you’re putting out to the American people. The American people are looking for answers, and they’re looking for hope, and you’re doing sensationalism.”
The other strong point that Trump made, was his concern for the American people, above the interests of business, noting that the only reason he would work to save businesses was for the workers employed there. In response to various lines coming from Republican and other networks about whether it is worth shutting down the economy to stop the virus, Trump said, “We can bring our finances back very quickly, but we can’t bring back the people.” He also came out strongly again on the issue of stock buybacks, saying that he didn’t agree when they were done the first time after his tax cuts, and that instead of buybacks, they should have built new factories or hangars. He also referred to the commitment to human life concerning the coronavirus, saying that this is the approach being taken by nations all over the world.
Rep. Ilhan Omar’s Damascus Road
March 20 (EIRNS)—In yet another sign of the phase shift in the way people can become capable of thinking in a crisis, Rep. Ilhan Omar, one of “The Five” new Congresswomen who have ranted against Donald Trump since their midterm election victories, has praised the President for his leadership of the war against the coronavirus, and called on others to join in supporting him.
“Politics aside,” she wrote, “this is incredible and the right response in this critical time.” She reposted a tweet from Lee Fang (from The Intercept) saying: “Trump suspending mortgage foreclosures, demanding cash payments to Americans, now invoking the Defense Production Act to force private firms to produce needed supplies is incredible. Kind of a shell shock for anyone who reported on any economic policies in the Obama years.”
Omar also tweeted that Ayanna Pressley, a fellow member of “The Five,” “always says, unprecedented times require unprecedented leadership and we are seeing that in our country right now. I have faith that we will survive this as a nation and build together.”
She added: “Finally, we should never let politics get in the way of good policy. This is a great start and hope others will be part of a united front to push for good policies that will help us work through the economic anxiety the country is feeling right now.”
Some Democrats Can’t Break from Their British Breeding
March 20 (EIRNS)—While many Democratic leaders are showing signs of sanity, joining with President Trump to wage war against the common enemy of COVID-19, others—especially with the distinct smell of Hillary around them—are sticking with the British war plan against the United States.
Real Clear Politics reports today: “A dark-money network of liberal groups, including a political action committee tied to one of former President Obama’s aides, plans to spend millions of dollars on attack ads tarring Trump’s response to the unprecedented global health crisis.” Pacronym, a subset of Acronym (famous for the Iowa caucus debacle, and a leading media company in Hillary’s campaign) announced plans to spend $5 million through July on negative ads on Trump’s handling of the coronavirus crisis, focusing on battleground states of Michigan, Wisconsin, Pennsylvania, North Carolina, and Arizona. Real Clear Politics adds: “American Bridge, founded by Hillary Clinton ally David Brock, is already running coronavirus-related ads in Michigan, Wisconsin, and Pennsylvania, and this week announced it would cut another one hitting Trump’s incompetence and feature clips of him downplaying the crisis.”
Tara McGowan, the founder of Pacronym, issued a statement: “From initially downplaying the seriousness of the crisis to protect his own image, to stating last week that he bears no responsibility for the lack of testing and rise in cases across the country, President Trump’s failure to lead has worsened the crisis that will result in the loss of American lives. This will be a defining issue of this presidency and this campaign, and it is imperative that Americans be reached with the facts before the most consequential election of our lives.”
STRATEGIC WAR DANGER
Coronavirus Impacts U.S. Military Operations in Iraq, Afghanistan
March 20 (EIRNS)—The U.S.-led military operations in both Iraq and Afghanistan have been impacted by the coronavirus pandemic. In Iraq, CNN reported yesterday that the U.S.-led training effort aimed at combating ISIS has been suspended “for 60 days as a precaution due to the global pandemic,” the United Kingdom Defense Ministry announced on Thursday. “To prevent potential spread of COVID-19, Iraqi Security Forces and coalition forces have stopped all training. That has led to the repositioning of some training forces for force protection and operational continuity; some trainers will depart Iraq in the coming days and weeks. The Coalition remains committed to the lasting defeat of ISIS and if the situation allows training will resume,” a U.S. defense official told CNN. A statement issued by U.S. Central Command this morning confirmed the CNN report, adding that “The Coalition will retain key military personnel on some Iraqi bases, to ensure the Government of Iraq and our interests are appropriately supported.”
But really, all this begs the question: what the hell are we staying in Iraq for?
Similarly, CNN reported that the U.S.-commanded NATO mission in Afghanistan has implemented a series of restrictions in order to prevent the spread of the virus, including “temporarily” pausing the movement of personnel movement into Afghanistan and delaying the return of some service members. CNN surmises that these measures could slow down the draw-down of U.S. troops from Afghanistan in accordance with the peace deal with the Taliban. “In some cases these measures will necessitate some service members remaining beyond their scheduled departure dates,” Gen. Scott Miller, the commander of U.S. and international forces in Afghanistan, said in a statement.
A U.S. military spokesman said in a statement that 21 service members are in isolation with flu-like symptoms. Another 1,500 who just arrived in country are also in isolation for 14 days. Miller said that this was done out of an “abundance of caution, not because they are sick.”
Stoltenberg Tells NATO Members To Be Afraid of Russia Even in a Pandemic
March 20 (EIRNS)—NATO Secretary General Jens Stoltenberg said during a press briefing at NATO headquarters on March 19 that despite the magnitude of the coronavirus pandemic in Europe, NATO members should maintain, without any letup, their increased military spending brought about what he claimed to be the threat of Russian aggression.
“There will be severe economic consequences of the coronavirus crisis,” Stoltenberg said, reported Defense News, “and in the short term, consequences not only for the total economy but for government budgets. When we think about long-term consequences, that is too early to say anything with certainty. You have to remember that when NATO allies agreed to invest more in defense”—a reference to the “resurgence” of Russia—“they did so because we live in a more uncertain, unpredictable world. This has not changed; I expect allies to stay committed to investing more in our security. We also need to remember that by investing more in our security and armed forces, we’re providing surge capacity for all our societies to deal with unforeseen events, crisis and natural disasters, as we for instance see now.”
As if to underscore NATO’s focus on Russia despite the pandemic, the Russian Defense Ministry reported this morning that Russian air defenses tracked 22 manned aircraft and four drones flying reconnaissance missions near Russia’s borders in the past week.
Report: Trump Refused Retaliation Against Iran Due to Coronavirus Pandemic
March 20 (EIRNS)—NBC News reported yesterday, citing unnamed current and former senior officials, that Trump told his national security staff last week that a military strike in response to a second rocket attack on U.S. troops in Iraq was not the right move, because of the coronavirus pandemic. Trump expressed concern that hitting back hard at Iran at this time would be unwise, given the extent to which Iran and the rest of the world are struggling to contain the spread of COVID-19, the officials said. They said the President made these comments during a meeting at which his advisors briefed him on possible military responses to the attacks.
NBC opines that this was a notable shift for a President who has made a bellicose approach to Iran a cornerstone of his foreign policy agenda, and one that showcases how consumed Trump now is with the coronavirus pandemic.
There is no evidence known to this news service that Iran has taken note of the NBC report, but Tehran is continuing its international campaign to get the U.S. sanctions lifted. The latest move on this is a statement issued by Majid Takht-Ravanchi, Iran’s ambassador to the UN. Ravanchi reports that despite Iran’s efforts, efforts which have been lauded by the World Health Organization, “we are stymied in our efforts to identify and treat our patients and effectively prevent the spread of the virus, due mostly to the U.S.’s economic and medical terrorism and sanctions.”
“The inhuman and unlawful sanctions of the U.S., by hampering our abilities in preventing further spread of coronavirus including to other nations, are harming the very health and lives of Iranians and other nations as well,” Ravanchi continued. “In other words, while the U.S. is trying to curb the virus internally, it is helping the spread of virus externally by undermining the professional capabilities of certain affected countries who try to combat its pandemic.”
ECONOMY
Bank of England Slashes Interest Rates to 0.1%
March 20 (EIRNS)—Rather than putting the dead corpses of the financial system into the icebox, and closing down the markets as Schiller Institute head Helga Zepp-LaRouche has demanded, the Bank of England continues to feed the moribund system, making it even more toxic.
The Bank of England cut rates from 0.25% to 0.1 % and launched a new quantitative easing package of £200 billion through buying government and corporate bonds. This was decided at a special meeting of its rate-setting monetary policy committee on Thursday. Just last week, the bank cut rates from 0.75% to 0.25%. Bank of England governor Andrew Bailey said that the decision was made to calm market reactions to the COVID-19 crisis.
“You could see that reflected in the rising value of the dollar, in bond yields and in bond spreads,” Bailey said. “The obvious increase in the pace and severity of COVID-19, which has built during the week, was something we had to assess and respond to, we can’t wait for the hard economic data before we act.”
He announced that all central banks are moving in the same direction. “I talk to central bank governors most days, and while we make decisions with reference to our own mandates, it is not a surprise that we all are coming to the same conclusion”—i.e., they follow orders.
Coronavirus and Oil Price Drop Cause Thousands of West Texas Job Losses
Mar 20 (EIRNS)—Tens of thousands of Texans are being laid off across the state in places like the Permian Basin shale fields in west Texas, as companies shut down their drilling rigs, according to Ryan Sitton, a state oil and gas regulator, Bloomberg reported today. Drilling service company Canary LLC cut 43 workers last week. Recoil Oilfield Services laid off 50 workers after the water-transfer company lost all of its work with shale giant EOG Resources Inc. But the biggest blow so far came from Halliburton Co., the world’s dominant fracking-services provider, which said this week it will furlough 3,500 workers at its Houston headquarters.
The No. 1 crude producer in the country, Texas boasts more energy-company headquarters than anywhere else on the planet. Between 1997 and 2017, oil and gas extraction made up 3% to 12% of the state’s gross domestic product each year. But there has also been a consistent uptick in jobs added in a range of other fields, including health care and finance, the Arkansas Democrat Gazette reported.
According to Bloomberg, huge cuts in capital expenditures from U.S. explorers, some $12.6 billion so far, are responsible for the shrinkage in the workforce. The expectation is that nearly two-thirds of the $100 billion in global spending cuts could come in U.S. shale fields, according to Rystad Energy. For the contractors, the hydraulic fracturing business, which blasts water, sand, and chemicals underground to release trapped hydrocarbons, will feel the greatest pain.
Halliburton, which generates most of its sales in North America, is expected to see its earnings before interest, taxes, depreciation, and amortization fall by 40% this year to $2.2 billion, Scott Gruber, an analyst at Citigroup Inc., said on March 19 in a note to investors. And that’s expected to drop another 30% next year, Bloomberg noted.
NEW WORLD ECONOMIC ORDER
Chinese Share their Expertise on Coronavirus Control with African Health-Care Officials from 24 countries
March 20 (EIRNS)—As the Chinese Foreign Ministry spokesman Geng Shuang reported in yesterday’s daily press briefing, on March 18 Chinese medical experts held a 3.5-hour videoconference with 300 health-care officials from Africa’s Centers for Disease Control and Prevention (CDC) and from 24 African nations. The Chinese experts shared their experiences in analyzing and containing the COVID-19 coronavirus, and answered more than 50 questions from the African participants.
As Geng Shuang pointed out, China is prepared to help African countries and regional organizations in combatting the coronavirus and to collaborate with them in protecting global health security. According to Xinhua, the African participants praised the progress that China has made in containing the coronavirus, and said they seek to establish the same high standards that China has set to achieve this goal. All participants also expressed their intention to collaborate closely with China to win the battle against the pandemic.
Geng Shuang remarked that “going forward, while continuing to strengthen epidemic control at home, we will unreservedly share all we know about the pandemic with African countries, and continue offering as much help as possible to support and help these countries and regional organizations in accordance with their needs. Together we will strive for an early victory against the disease and protect regional and global public health security.”
Putin, Xi Jinping Hold Telephone Call on Coronavirus Crisis
March 20 (EIRNS)—Russian President Vladimir Putin and his Chinese counterpart Xi Jinping held a telephone call on the coronavirus crisis on Thursday, according to Kremlin press service.
“The coronavirus pandemic situation was discussed in detail, with emphasis on tight cooperation Russian and China have set up from the beginning [of the outbreak]. Russian side has praised the results, achieved by the Chinese government and the entire Chinese people, in countering of the spread of the disease. Vladimir Putin and Xi Jinping spoke in favor of further mutual assistance and deepening of cooperation in medical field and drug development,” the press service noted.
Meanwhile, the Russian Foreign Ministry reacted strongly against the European Union’s March 13 decision to renew sanctions, prompting the Russian Foreign Ministry spokeswoman to call the decision catastrophic stupidity, at a briefing on Thursday.
“The world is trying to stay afloat and join efforts, find points of coincidence, understanding the consequences of what is going on now. Additional restrictions, that will surely bring no benefits whatsoever for citizens of the European Union, are simply catastrophic stupidity,” she said.
“Do you understand what is going on at the moment in global politics, do you realize that today all reasonable political forces, experts, the society of political analysts are dealing with the main aim: looking for a suitable and efficient way out of the existing situation? Why passing the decisions that will tie your hands in the future in the settlement of your own issues and problems?” she asked her European colleagues.
SCIENCE
NASA Shuts Down To Protect Its Workforce
March 20 (EIRNS)—On March 9, NASA Administrator Jim Bridenstine announced that because a worker at the Ames Research Center in Silicon Valley had tested positive for the coronavirus, only essential workers will be allowed in the facility. Everyone else was sent home to telework.
Ten days later, Bridenstine announced that work on the Space Launch System (SLS) rocket, needed to take astronauts to the Moon, will be suspended, as well as on the Orion capsule. The Stennis Space Center in Mississippi and the Michoud Assembly Facility in New Orleans will be shuttered.
Reach us at eirdailyalert@larouchepub.com or call 1-571-293-0935
