EIR Daily Alert Service

WEDNESDAY, DECEMBER 28, 2016

Volume 3, Number 90

EIR Daily Alert Service

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

EDITORIAL

Urgent Task for the New Year: Set the Agenda for the United States

Dec. 27 (EIRNS)—This week, the Chinese government released its White Paper, “China’s Space Activities in 2016,” reviewing accomplishments in its space program in the last five years, and laying out plans for the next five years, for the purpose, it stated, to serve, “mankind’s unremitting pursuit to peacefully explore and utilize outer space. Standing at a new historical starting line, China is determined to quicken the pace of developing its industry, and actively carry out international space exchanges and cooperation, so that achievements in space activities will serve and improve the well-being of mankind in a wider scope….”

In dramatic contrast, the United States and the trans-Atlantic region are in economic breakdown, endangering all mankind, yet persist in the policies which caused the breakdown.

In particular, in the banking sector, there is a showdown now between the European Central Bank and the nation of Italy, over Banca Monte dei Paschi di Siena threatening to erupt in chaos. It was revealed this week that the ECB has ordered MPS to come up with—recapitalize—€8.8 billion not merely the €5 billion previously sought, which the Italian government was trying to assemble. The population is furious.

The only sane response to all this, is to dump the dead system by initiating Glass-Steagall reorganization and establishing a proper banking system. Issue credit for priority, productive activity, and further the economic science driver impact of advancing work in space and in fusion breakthroughs. This is laid out in the 2014 “Four Laws” proposal by Lyndon LaRouche, which will again be featured in the new, forthcoming mass pamphlet from LaRouche PAC—an updated version of “The United States Joins the New Silk Road; a Hamiltonian Vision for an Economic Renaissance” (2015).

This program must be put at the top of the agenda in the United States, and in Europe and elsewhere as well, and now. Moreover, what is also urgently required, is to convey the science behind the “Four Laws.” Look back and study LaRouche’s breakthroughs in methodology over the decades. For example, his concept of potential relative population density; his concept of energy flux density; his concept of the “productive platform,”—not merely infrastructure.

Helga Zepp-LaRouche observed today that the newly-released China report on space infrastructure, in effect, takes half of Lyndon LaRouche’s economic platform proposal, and projects it out into space. It is rich and hopeful.

On Jan. 3, the new 115th Congress convenes in Washington. It needs to feel the heat for action. On Jan. 6, all the Members of Congress will be present for the counting of the Electoral College votes, making official the election of Donald Trump, whose campaign harnessed the population’s disgust with Obama’s policies of economic destruction and war. Now we must set the agenda of action to end their hardship, despair, and anger.

Lyndon LaRouche spoke of this imperative, and the urgency, “Push on the Representatives to make things happen.” He said, “We have to build up people who were destroyed by what the Bush family and Obama did. That’s the issue.” He raised Franklin Delano Roosevelt, saying, “Look at how FDR pioneered new advantages for the people of the United States,” and noting that, FDR and his program were then crushed. But, “We have a latent option. We can get it back.” The idea is, “You have to re-educate. Use tools to make people creative…. See what FDR accomplished. That has to be made clear.”

  • Editor’s Note: EIR Daily Alert will skip the issue for Monday Jan. 2, 2017.

U.S. POLITICAL AND ECONOMIC

Ohio Rep. Marcy Kaptur: Democrats Must Do ‘Soul-Searching’

Dec. 27 (EIRNS)—Rep. Marcy Kaptur (D-OH), the primary sponsor of legislation to reinstate the Glass-Steagall Act in the 112th, 113th, and 114th Congresses, and the longest-serving woman in the U.S. House of Representatives, told the Toledo Blade’s Tom Troy on Dec. 18 that, after losing the industrial states of Wisconsin, Michigan and Pennsylvania in 2016, “The Democratic Party has some soul-searching to do. On the economic front, it fell short.”

The Blade reports that Kaptur has sent her Democratic House colleagues a packet of graphs, political cartoons, and articles that portray a “bicoastal” bias of the Democratic Party. Kaptur said that the industrial heartland feels “squeezed out.”

“I think they are sympathetic, but they really don’t understand,” Representative Kaptur said of House Democrats’ reelection of California Rep. Nancy Pelosi as their Minority Leader over Rep. Tim Ryan of Ohio. “They are captives of their own ideology and culture and economies. San Francisco being a financial center, I think it’s really hard for someone like Leader Pelosi to really internalize what it’s like to live in a place where someone can have their job jerked out from under them,” Kaptur said.

Kaptur said the money of wealthy donors has enormous power and “It’s all behind the curtains in both parties.” The Democratic Party is quick to talk about social issues, lesbian, gay, bisexual, transgender rights, women’s rights … so-called ‘identity politics.’ The economic message is one which our party was deaf toward for a very long time,” Kaptur said, citing the Democratic Party leadership support for the 1993 NAFTA free trade agreement that allowed manufacturers to make products cheaper in Mexico for sale in the U.S.

Kaptur said she spoke to Hillary Clinton before her Oct. 3 Toledo speech, about a message that would resonate in Ohio. Instead, Clinton gave a speech where billionaire investor Warren Buffett was mentioned, but not trade agreements like NAFTA. “She didn’t make much of that in Toledo. I was shocked…. And she stood in the Amtrak station and did not talk about how her infrastructure bill would help renovate that station, renovate the water plant, save Lake Erie.”

Donald Trump did very well in Youngstown, in Mahoning County, eastern Ohio. Mahoning County Democratic Chair David Betras said voters perceived the national Democrats as caring “more about where you take a pee than about whether you have a job.” (Obama ordered in May that public schools must allow transgender students to use bathrooms that correspond with their gender identity, rather than their birth gender.)

Betras sent a memo to the Clinton campaign in May which said she needed to make a commitment to bring back good jobs. And, said Betras, “The messages can’t be about job retraining. These folks have heard it a million times and frankly, they think it’s complete and total nonsense.”

Ohio Democratic Chairman David Pepper said that though there are multiple reasons Clinton lost, the main one was that Trump spoke to the frustrations of working people stuck in a flat-wage economy.  “When you look at where Trump did the best, it was in places that were really reliant on manufacturing—or used to be—or mining or farming.”

COLLAPSING WESTERN FINANCIAL SYSTEM

European Central Bank Demands Blood from Italians for Monte dei Paschi Bank

Dec. 27 (EIRNS)—The Italian financial daily Il Sole 24 Ore reported yesterday that the European Central Bank (ECB) sent a letter to the Monte dei Paschi di Siena (MPS) management, demanding a capital increase almost double that previously established. The letter was sent a few hours after MPS had requested authorization to join the Italian government “pre-emptive” bailout, or nationalization. The ECB demands a capital increase to €8.8 billion instead of the €5 billion previously established.

The shift is based on a re-classification of MPS by the ECB: rated the same as Greek banks in Greek financial crisis.

The ECB demands that €4.5 billion be subscribed by the government, and €4.3 billion be collected through “burden sharing”; i.e. bail-in of senior and subordinate bondholders. However, the government insists on refunding 100% to retail bondholders but a 30% cut for institutional bondholders.

The ECB demand is like a declaration of war against a national decision which defies EU law. This comes from the same ECB President Mario Draghi who is ultimately responsible for the MPS bankruptcy by authorizing its takeover of Antonveneta in 2008 which cost MPS €19 billion, and has been cited by an investigative committee as the single major cause for MPS’s financial troubles. Draghi lied that the takeover cost €9 billion, knowing it was false.

With its latest move, the ECB has shrunk the Italian €20 billion safety net for the entire banking system, and thus declared its intention to impose the “Greece” treatment on Italy.

STRATEGIC WAR DANGER

Turkey, Russia, and Iran Consult on Syria, and on January Meeting in Astana

Dec. 27 (EIRNS)—Intense Turkish, Russian and Iranian consultations over Syria continue. Today, Russian Deputy Foreign Minister Mikhail Bogdanov, and the President’s special envoy for the Middle East and African countries, told Interfax that the three nations will be mediators between representatives of Syria’s armed opposition and the government, at the mid-January meeting in Astana, Kazakhstan. He does not envisage the presence of UN Special Envoy for Syria Staffan de Mistura. Bogdanov said, “The Russian Federation, Iran and Turkey will be the guarantors of an agreement to be formulated at the upcoming meeting in Astana.”

Bogdanov met in Moscow this week with Syrian Ambassador to Russia Riyad Haddad. The Russian Foreign Ministry stated, according to TASS, “The sides exchanged views on the development of the situation in and around Syria, with a focus on the necessity of further uncompromised struggle against terrorism, and parallel invigoration of efforts towards political settlement of the Syrian crisis on the basis of United Nations Security Council Resolution 2254.”

This activity comes after Turkish President Recep Tayyip Erdogan called Russian President Vladimir Putin on Dec. 25 to discuss Syria. Erdogan also conveyed his condolences to President Putin over loss of the Russian Tu-154 plane with 92 onboard en route to Syria on Dec. 25. Kazakh President Nursultan Nazarbayev, who was in Russia during the phone conversation, also took part in the call, the Kremlin said. Nazarbayev spoke of his readiness to host the multilateral talks on Syria in Astana.

Yesterday Russian Foreign Minister Sergey Lavrov and his Turkish colleague Mevlut Cavusoglu held a phone discussion on the situation in Syria. Cavusoglu also shared information with Lavrov about his recent visit to Qatar.

Yesterday Turkish Prime Minister Binali Yildirim conveyed his condolences to Russian Prime Minister Dmitry Medvedev on the Russian plane crash in the Black Sea.

Sputnik reports that various countries have shown interest in joining the agreements on Syria reached in the Russia-Turkey-Iran format, a diplomatic source said. “The joint statement says that the three countries agree, but that who wants to, may also join; in particular, the United States, Saudi Arabia, or Qatar,” the source told RIA Novosti.

Black Sea Crash Investigation: Tu-154 Flight Data Recorder in Moscow

Dec. 27 (EIRNS)—The flight data recorder from the Russian Defense Ministry’s Tu-154 that crashed into the Black Sea on Christmas Day, killing all 92 passengers and crew onboard, was recovered overnight and is now at the Central Scientific and Research Institute in Moscow for data examination. “The preliminary analysis allows [investigators] to narrow down the list of possible causes of the plane crash,” the Defense Ministry said. A source close to the investigation told TASS that the data analysis could take some time. A late report in Sputnik says the cockpit voice recorder and an auxiliary data recorder have also been located, but have yet to be brought out of the water.

TASS reported today that recovery teams found seven large pieces of the aircraft, four of which have already been recovered. A total of 13 bodies and 156 body parts have been found so far, the source added. TASS also reports that more debris from the aircraft was found at distances of 1,600 to 4,500 meters from shore.

Speculation on the cause abounds. Foreign Ministry spokeswoman Maria Zakharova cautioned, “Before commenting, it’s better to wait for what experts say. The flight recorder has not yet been decoded. And it is right to speak about theories after it is decoded, not the other way round…. It is absolutely inappropriate to raise political assessments at this stage.”

Foreign Ministry’s Zakharova Says Russia Will Reveal All Terrorist Atrocities in Aleppo

Dec. 27 (EIRNS)—Russian Foreign Ministry spokeswoman Maria Zakharova called on the international community to accurately assess the evidence of jihadi war crimes in Aleppo in her press briefing today, reported TASS. “Syrians took to Aleppo streets to celebrate the city’s liberation, congratulating each other on the victory and thanking Russian and Syrian servicemen,” she said. “However, that was a holiday with tears in one’s eyes. We continue to learn new details of what happened in Aleppo when it was controlled by terrorists and extremists. In particular, mass graves containing the remains of dozens of people have been found there. What’s more, it turned out that these people had been tortured.”

“There is every reason to believe that these terrible discoveries will continue,” Zakharova said. She noted that “evidence of these crimes will be handed over to media by the Russian military and made public. … We hope that the international community will provide an impartial assessment of this bloody carnage, when Syrian citizens were subjected to torture and violence by extremists and terrorists.”

Opposition Party Leader in Seoul Attacks THAAD Anti-Missile System

Dec. 27 (EIRNS)—Lee Jae-myung, chairman of South Korea’s Minjoo (Democratic) Party, and one of three opposition leaders with a shot at the Presidency in next year’s election, told foreign correspondents today that the U.S. THAAD (Terminal High Altitude Area Defense) anti-missile system would not help South Korea defend itself against North Korea, and would damage important relations with China and Russia.

North Korean missiles aimed at Seoul would fly far below the high altitude covered by THAAD.

Lee, who is currently the mayor of Seongnam, a major city near Seoul, said China has opposed the THAAD deployment as it sees the THAAD’s X-band radar as functioning deep into Chinese territory, Xinhua reported. He called for the adoption of an independent, balanced diplomacy between China and the United States, saying Seoul should refrain from siding with one party.

NEW WORLD ECONOMIC ORDER

Russia’s Rosatom and Egypt Plan To Sign Nuclear Deal Dec. 29

Dec. 27 (EIRNS)—Rosatom is expected to sign a contract with Egypt on the construction of a nuclear power plant at El Dabaa, on Dec. 29, a source in the Russian nuclear power corporation told reporters on Dec. 26. Rosatom expects the agreement to plan for construction to start by the end of this year, Chief Executive Officer of the Russian nuclear corporation Alexei Likhachev said earlier in December.

On Nov. 19, 2015 Russia and Egypt signed an inter-governmental agreement to construct the first nuclear power plant at the El Dabaa site—long in anticipation. The installation is to consist of four power units, each with a 1,200 MW capacity. The agreement grants Cairo a $25 billion loan to build the plant. The project is to be completed in 12 years.

The nuclear power plant is expected to be built near the city of El Alamein on Egypt’s northern coast, 3.5 km from the Mediterranean Sea.

SCIENCE & INFRASTRUCTURE

China’s Space White Paper: Next Five Years in Manned Exploration, Space Science, International Cooperation

Dec. 27 (EIRNS)—Today China released an inspiring five-year plan for space, “China’s Space Activities in 2016,” in a white paper in Beijing. The White Paper’s purpose is, “To enable the world community to better understand China’s space industry,” and to “offer a brief introduction” to its major accomplishments since 2011: “The Chinese government takes the space industry as an important part of the nation’s overall development strategy,” the Preamble continues. “The purpose of China’s space program, is “to contribute more to both serving national development and improving the well-being of mankind.”

The bulk of the paper summarizes the achievements of China’s manned, lunar, Earth orbital, and international cooperation programs, and outlines the tasks for the next five years. These restate the first launch of the unmanned Tianzhou cargo carrier; the launch of the first element of the space station; the two lunar missions over the next two years, and China’s first Mars mission, in 2020. As is customary, at the press conference releasing the paper, the question of a manned lunar mission was raised, and to which the response was that the government has not yet approved it.

Among the details presented about lunar work are: The lunar probe to be launched in 2018 is to achieve the world’s first soft landing on the far side of the Moon. In China’s lunar exploration project, it will strive to attain automated extraterrestrial sampling, and technology for handling and return, by the space explorers. The White Paper said, “The lunar probe Chang’e-4 will conduct in situ and roving detection and relay communications at Earth-Moon L2 point.”

The White Paper’s section on international cooperation summarizes the 29 countries and organizations with which China has space cooperation agreements. Most interesting, under the subhead on “Key Areas for Future Cooperation,” it lists, “Construction of the Belt and Road Initiative Space Information Corridor,” for Earth observation, communications, navigation, and other applications. It also lists “Construction of the BRICS remote-sensing satellite constellation.”

China also announced that it has opened up nearly all areas of its space industry for private and international “investment.” It was stated that there will be “very few off-limits areas.” China’s space station will be a major area for such cooperative investment.

The White Paper concludes: “It is mankind’s unremitting pursuit to peacefully explore and utilize outer space. Standing at a new historical starting line, China is determined to quicken the pace of developing its space industry and actively carry out international space exchanges and cooperation, so that achievements in space activities will serve and improve the well-being of mankind in a wider scope.”

OTHER

Manila Times Reports Former U.S. Ambassador Goldberg Plotted a Color Revolution against Duterte

Dec. 27 (EIRNS)—Dr. Dante Ang, chairman emeritus of the Manila Times, reported today that he had obtained documents showing that former U.S. Ambassador to the Philippines Philip Goldberg, who openly denounced President Rodrigo Duterte during the Philippine presidential election earlier this year, and was denounced in turn by Duterte for his intervention in the country’s sovereign affairs, had issued detailed plans for regime change against Duterte before he left his post last month. Ang claims to have a document submitted by Goldberg to the U.S. State Department with recommendations on how to run a color revolution against Duterte within 18 months, because of his attacks on the U.S. and his moves towards friendship with China and Russia.

The Manila Times report says that Goldberg wrote: “The political actors [the opposition] would need all the political weapons in their arsenal to replace the Duterte administration and replace it with something more to the oppositions liking.” Goldberg said that “Mr. Duterte has no real friends outside of his region for his propensity to mock and ridicule people close to him.” Goldberg said that Duterte was driven by “old-fashioned nationalism where he holds the United States accountable for the Philippines’ current state of poverty and dependency,” the Manila Times report says.

The alleged plan is another example of the Obama team’s frantic effort to deny reality and reassert the lost power of the British Empire’s assets around the world. The Dr. Ang writes: “To bring down Duterte, the Goldberg plan calls for stoking public dissatisfaction with the President over unfulfilled election promises, isolating the Philippines from the rest of ASEAN by extending military assistance to member countries, except the Philippines, and/or through economic blackmail that aims to limit trade by some ASEAN member countries with the Philippines. Goldberg also encourages support for the opposition through aids and grants; sowing discontent among the Duterte supporters, and cultivating the cleavage between the congressmen and the senators over the Charter Change issue.”

Charter Change, which Duterte supports in order to provide more autonomy to Mindanao and the Moro (Muslim) minorities, is indeed a contentious issue, which the U.S. has largely supported in the past. Now Goldberg sees it as a means of attacking Duterte, by recruiting its opponents to a color revolution.

The paper outlined the Ambassador’s strategies, such as:

“Political and economic isolation of the Philippines in the region by engaging the leaders of Japan, Vietnam, Cambodia, and Laos, and by highlighting the basic question of the risk of doing business in the Philippines. Enhanced U.S. military relationship with members of the ASEAN community except the Philippines.

“Blackmail neighboring countries so they would turn against Duterte by reducing trade with the Philippines in favor of Vietnam, Cambodia, and Laos.

“Deepen ties with Philippine officials (the opposition); the police/military and leaders in the region who share the U.S. concerns over Duterte.

“Track corruption cases and highlight Duterte’s failures.

“Focus on the needs of the people at the grassroots and assist the opposition groups in delivering those failed promises through USAID such as alleviation of poverty, housing and education, to name a few.

“Utilize the media to expose the truth (!) about Duterte—his false vision for the Filipino people and his dangerous international relationships with China and Russia.”

Dr. Ang writes in the Times: “In his observation, the U.S. former envoy to the Philippines said that while President Duterte has been successful in earning the support of the people for his campaign against drugs, his political and economic program has failed to deliver the desired results.” Goldberg is reported to have written: “In this increasingly sensitive environment—a country susceptible to favor political disruption—our approach must be measured. Opposition actors across the political spectrum look at us (U.S.) for cues, and our (U.S.) influence is much greater than our footprint.”

Goldberg also calls for exploiting the opposition within the Church, but “advises restraint in expressing public support for former President Fidel Valdez Ramos and Vice President Leni Robredo, as well as other opposition leaders, so as not to alarm the Duterte administration of an impending destabilization or a coup.”

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