E.I.R.STRATEGIC ALERT WEEKLY NEWSLETTER

E.I.R.STRATEGIC ALERT
WEEKLY NEWSLETTER
Volume 28, No. 35 - August 28, 2014
LaRouche in Russian Media: A “Sane Approach
to Resolving the Problems of Our Planet”
Under the title: “The Danger That I See Is Chaos”, Ria Novosti
published an interview with Lyndon LaRouche conducted Aug.
20 by Ekaterina Kudashkina for her show Burning Point.
This coincided with publication of an interview by Helga
Zepp-LaRouche in leading Chinese media on the new Silk Road
(cf. below), reflecting the unique leadership that LaRouche and
his wife are providing at this particular moment in history.
The RIA Novosti interview featured LaRouche’s emphasis
on the role of the global “British Empire” -- and not the United
States or President Obama as such – as the force which is responsible
for running an international program to intentionally
create chaos across the planet, in a desperate attempt to save
the dying financial system. This is the force which Russian President
Vladimir Putin is up against, and which has also created
the conditions for the emergence of the Islamic State.
But at the same time, LaRouche insisted, there is a new system
of nations, which is oriented around the BRICS, and they
are coming together to create “an alliance for mutual development
and mutual defense.” China has achieved spectacular
development and is working on tremendous projects , including
the development of fusion energy.
LaRouche also highlighted the significance of Putin’s ability to
avoid the traps that have been laid for him, including handling
the humanitarian convoy to Ukraine and the aggressive forward
basing of NATO. But while Putin has to manage all these
risks from the trans-Atlantic system, “the positive thing is that
he’s got China, he’s got India” on his side.
The cooperation now forming among China, Russia, India,
but also Egypt, Argentina, South America and others, La-
Rouche stressed, represents the future of mankind. “When the
smoke is cleared, we’re going to find out that there’s going to
be a new planet, or something that functions like a new planet,
because the old ways are going to go, and they’re going to go
fast. I’m just waiting for us to get there.”
***
The Strategic Alert features different aspects of this new
paradigm below.
LaRouche Endorses Call to Crush
the “Islamic State” Insurgency
In his regular weekly international webcast on Aug. 22, Lyndon
LaRouche endorsed General Martin Dempsey’s statements
at a Pentagon press conference earlier in the day that the Islamic
State (IS) insurgency in Iraq and Syria must be wiped out
through a systematic campaign led by an alliance of regional
states, with targeted backing from the US.
LaRouche noted that the IS “a systematic murder machine,”
that “should never have existed.... We cannot create monsters
of that nature and hope to use those monsters as means of settling
issues...Get rid of them immediately…” The Chairman of
the Joint Chiefs of Staff Dempsey, LaRouche went on, “is right
and he needs every bit of backing he can get.”
In his carefully worded intervention on Aug. 22, Dempsey
avoided explicit endorsement of collaboration with either Syria
or Iran in the campaign against IS. But the former Chief of the
British General Staff, General Lord Dannatt, went one step further
to assert that the UK must co-operate directly with Syrian
President Bashar Assad and the Syrian Army to crush IS. He
told BBC Radio that “The old saying `my enemy’s enemy is my
friend’ has begun to have some resonance with our relationship
with Iran. I think it’s going to have to have some resonance
with our relationship with Assad. I think whether it is above
the counter or below the counter, a conversation has got to be
held with him. Because if there are going to be any question
of air strikes over Syria airspace, it’s got to be with the Assad
regime’s approval.”
Echoing that position, the British Independent published
a report by Patrick Cockburn headlined “West poised to join
forces with President Assad in face of Islamic State”, evoking a
“once unthinkable alliance”. Cockburn noted that the “US has
already covertly assisted the Assad government by passing on
intelligence about the exact location of jihadi leaders through
the BND, the German intelligence service.”
A similar view was presented by the former U.S. Ambassador
to Saudi Arabia, Chas Freeman, who told Cockburn: “I
cannot see how it [IS] can be isolated without the co-operation
of Syria as well as Saudi Arabia and the other Gulf Arabs, Iran,
Russia and Turkey.”
The mention of Saudi Arabia is particularly crucial, since Riyadh
has been in the lead in providing material support to IS
throughout its long existence -- first as the Islamic State of
Iraq, later as Al Qaeda in Iraq (AQI), then as the Islamic State
of Iraq and Syria (ISIS) and now as the Islamic State. Turkey, as
well, has provided significant support to IS, including weapons,
training, and most importantly, access to Syria from Turkish
territory.
The role of Great Britain in fostering the rise of IS has also
been highlighted by the recent barbaric beheading of the jourEIR
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nalist Robert Foley by IS units in Syria, as the killing was announced
by a British national.
While the situation in Iraq and Syria has dominated national
security considerations for the past week, the other major
global crisis spots have also escalated. After days of stalling by
the Ukraine government in providing security guarantees for a
humanitarian aid convoy by Russia and the International Committee
of the Red Cross, President Putin ordered the convoy to
proceed to Lugansk.
The Ukraine government, with the backing of President
Obama, called the humanitarian deliveries “an invasion” in violation
of international law.
The situation also remains extremely tense in the Pacific,
where the US has dispatched a second aircraft carrier group after
an incident between Chinese and American air force planes
nearly led to a mid-air collision.
German Minister, the Vatican,
Question Funding of Jihadists
Stopping the Islamic State offensive in Iraq and Syria cannot
be done with air strikes or with another Irak war. Minimally,
the international community must identify and stop the Britishcontrolled
alliance of Saudi Arabia and Gulf States which have
created, financed and deployed the jihadist groups. This view is
shared by an increasing number of circles in the U.S. and Europe,
and some high-level officials have started to speak out.
In Germany, where the post-war tabu of not sending weapons
to war regions is being broken under Anglo-American
pressure, Development Aid Minister Gerd Müller mentioned in
an interview with ZDF television concerning the funding of IS
that the “keyword is Qatar.”
International media picked up Müller’s statement, putting it
together with Vice Chancellor Sigmar Gabriel’s earlier call for
a “debate” on the financing of ISIS, although without naming
any countries.
La Stampa Jerusalem correspondent Maurizio Molinari noted
in that context that several U.S. intelligence sources have exposed
that role of Qatar, but Washington still considers the
oil-rich country a valuable ally, so much so that it recently sold
Qatar 11 billion dollars worth of weapons.
The Vatican has also weighed in. Cardinal Fernando Filoni,
the head of the Propaganda Fide Congregation in the Vatican,
just came back from the fact-finding mission in Iraq on behalf
of the Pope. Filoni who was apostolic Nuncio in Baghdad from
2001 to 2009, told La Repubblica Aug. 22: “These groups
[ISIS] apparently are well supplied with weapons and money.
The question is: how is it possible that those flows of resources
have been unnoticed to those who have the duty of controlling
and to those who moves things from far away. The answer, for
the moment, is difficult to find”.
Filoni’s statements maintain the high profile assumed by the
Vatican on the current Iraq crisis. During his flight back from
South Korea, Pope Francis had stunned many by calling for
stopping the ISIS aggression, but contrary to the twisted version
which many media reported, he was in no way supporting
a new war.
A growing section of public opinion in the United States as
well is calling on Washington to stop backing the Anglo-Saudi
policies. In that context, activists and political leaders, as well
as family members of the 9/11 victims founded in July the
webpage 28pages.org, to carry out the fight for publishing
the classified part of the Congressional Report, which would
expose the Saudi role in the September 11, 2001 attacks.
Germany, Italy, France:
Support Growing for Bank Separation
While the European Central Bank and the European Union
press ahead with their policy of bailing out the megabanks,
while banning serious debate on a strict separation between
commercial banks and investment banks, the issue will simply
not go away.
In Italy, where a series of parliamentary hearings on bank
separation is to begin in September, Luciano Gallino, professor
Emeritus at the University of Turin and honorary chairman
of the Italian Association of Sociology, has challenged Italian
Prime Minister Matteo Renzi to imitate U.S. President Franklin
Roosevelt’s best reform: the Banking Act of 1933.
In an article in the Aug. 22 La Stampa, titled “Four wasted
years”, Gallino paints a dramatic picture of the results of the
EU austerity policy: loss of productive capacity, the rise of unemployment
and the six million Italians living under the poverty
level. He then refers to the inaugural speech of Roosevelt in
March 1933: “in a matter of a few weeks Roosevelt created
three agencies that in a few months gave jobs to four million
unemployed and because he implemented the largest and efficient
reform of the banking system ever seen in the west, the
Glass-Steagall Act. Show us something similar, Matteo Renzi,
in a similar short time, and we will start to think that your
government could be less disastrous than how it looks today.”
Gallino authored a book in 2013 entitled The Coup d’Etat of
Banks and Governments”, exposing the “elimination of democracy
in installments” implemented in Europe under the cover of
a state of exception.
In Germany, Berlin-based Markus C. Kerber, founder of the
Europolis group of euro-skeptics and a plaintiff at the Constitutional
Court against the euro bailout system, restated in
an interview Aug. 13 with the Focus weekly that the Single
Supervisory Mechanism (SSM) of the EU (against which he has
filed another legal complaint) is illegal, and that the ECB is not
empowered to supervise the banks independently of national
authorities. He also accused the ECB of distorting competition,
by diluting the requirements for central bank purchases of assets
as collateral. “The central banks of Austria and Cyprus for
example – just to exaggerate – are free to take toilet paper as
collateral now.” A real reform, Kerber demanded, must “separate
investment banking from credit institutions”.
In France, an article in five parts published by the economic
daily La Tribune indicates that Glass-Steagall remains a big debate
in the backrooms of the French banking establishment.
While candidate Francois Hollande had promised to move in the
direction of breaking up the big banks, the article notes that
the law passed in July, 2013, is a far cry from doing so. But
such a separation would be needed, the economic daily writes,
to protect the real economy and make it grow.
Upcoming Elections in Saxony:
Germany’s “Door to the East”
On Aug. 31, a new parliament will be elected in the state of
Saxony, and the governing Christian Democrats, after scheduling
the election campaign in the middle of the summer vacation,
which ends on the very day of the election, have attempted to
keep any discussion of the acute crises out of the debate. The
other major parties have followed suit.
Thus, the only party that has addressed the dangers of an
imminent financial crash and a world war is the Bürgerrechtsbewegung
Solidarität (BüSo). “Russia is a partner, not an enemy”,
is a major message that slate leader Karsten Werner and the 33
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other candidates have delivered over the past weeks, and they
found that voters tend to share their position that “sanctions
against Russia are sanctions against Germany”, which will have
a devastating boomerang effect on the thousands of small and
medium-sized firms active in Russia, of which several hundred
are in Saxony alone. In particular companies in the machinebuilding
sector, such as the Chemnitz-based Union Machine-
Building Company, are suffering badly from the European
Union ban on “dual use” goods.
After several years of the disinvestment strategies the German
government has carried out in compliance with the EU’s
priority of bailing out the euro and the banking sector at the
expense of the capital goods sector, the sanctions could spell
ruin for the industrial companies, which often depend on the
Russian market for 50% of their business.
In addition to a campaign focus on the Saxony as “the Door to
the East, and the Eurasian Landbridge”, the party platform calls
for a Glass-Steagall standard, a ban on bail-outs and bail-ins,
and state-controlled issuance of low-interest, long-term loans
for the high-tech industries and infrastructure. More especially
for the state, the platform calls for a 10 billion euro crash program
to build the first phase of a maglev transportation grid
and expand the transportation grids overall. Such a program
would create 500,000 new highly-qualified jobs – including in
R&D sectors in pioneering areas such as fusion research and
space technologies.
Saxony, today already the destination of a special container
train link from central China’s Chenyang industrial center to
Leipzig, could also become the departure point of a future
maglev track that links Leipzig and Dresden (the state capital)
to Prague, Bratislava, Kiev and Odessa, the BüSo states in its
program.
Since these programmatic points resonate strongly with
many voters in Saxony, the election campaign of the BüSo will
have a lasting impact far beyond election day.
NEW PARADIGM
Egypt: Mobilizing a Nation for Great Projects
The entire citizenry of Egypt is being rallied to support the
realization of the New Suez Canal Project, as the government
works to create a much needed sense of optimism in the population
(cf. SAS 34/14). The project, which is to be financed
by debt certificates reserved for Egyptian citizens alone, will
double the number of ships that can pass through the cana.
Egypt’s highest Muslim religious figure, Al-Azhar Grand
Imam, Sheikh Ahmed El- Tayyeb, on a visit to the construction
site, where almost 10,000 workers and 43 companies are now
at work, urged all Egyptians to take up the challenge of this
project, because it would show the strength, steadfastness and
will of the Egyptians.
To better involve the public, President Abdel Fattah Al-Sisi
has issued instructions for the organization of public tours of
the construction site to be carried out every Thursday. And the
Egyptian Army Corps of Engineers, which is responsible for the
project, posts daily updates on the progress made, including
the amount of earth moved.
The government’s Information Technology Institute in Ismailia
is involved in preparing the “human infrastructure base” for
Ismailia Technology Valley, one of the major projects planned
for phase II of the project.
The first Academic Symposium on the project since its launch
was held Aug. 21 at the Institute of Asian Studies and Research
of Zagazig University, based in the Nile delta region, where
the Dean of the Faculty of Agriculture declared in his opening
remarks that “Egypt is the maker of history and civilization”,
referring to the project as “Egypt’s fourth pyramid.”
The President of the University praised al Sisi for beginning
the process of development straight away on a “giant and unprecedented”
scale, in order to “build a better future for our
children.... It is an affirmation of the will and determination of
the people”
In the United States, developments in Egypt have not gone
unnoticed. President Obama, who was a firm supporter of
Muslim Brotherhood President Mohammed Morsi, and has
been key to the overthrow of almost every government in the
region, has yet to forgive the al-Sisi for ousting his puppet.
That policy, however, is contested in the U.S. Congress. Representative
Darrel Issa was in Cairo Aug. 18, where he met
with al Sisi to discuss bilateral and regional issues, including
economic relations and the Canal project. Significantly, he also
stated that close ties between Egypt and Russia were “natural”
and posed no threat to the U.S.
Moreover, the newly founded “Egypt Caucus” in the Congress,
which aims to improve bilateral relations wrecked by
Obama, held its first meeting and press conference Aug. 13. Its
members include Republican Steve Stockman, who is leading
the fight for Obama’s impeachment in the House.
“Egypt has been a staunch US ally in the battle against terrorist
tyranny,” said co-chair Rep. Dana Rohrabacher. “The Egyptian
people came close to being captured by a radical clique
bent on ruling the country with the kind of fanaticism that has
destroyed the freedom of so many Middle Eastern nations.”
Argentina Demonstrates that Wall Street
Vultures Can Be Defeated
Wall Street and London’s financial vulture funds are still seeking
some way to force Argentina to pay back, in full, the 7% of its
creditors who have continued to refuse debt restructuring, and
whose legal action against Buenos Aires was recently upheld by
a U.S. Federal Court (cf. SAS 28-32-33 / 14).
On Aug. 19, in another bold assertion of national sovereignty,
Argentine President Cristina Fernández de Kirchner announced
that she had submitted a bill to Congress, titled “Local
Sovereign Debt Payment of the Argentine Republic’s Foreign
Debt,” which provides mechanisms for foreign bondholders to
voluntarily swap their current bonds for new bonds governed
under Argentine, rather than United States law, and designates
the state Banco de La Nacion as the trustee for payments.
The vulture funds went ballistic. The American judge who
had ruled in their favor, Thomas Griesa, declared the proposed
bill “illegal,’’ because it would get around his court order that
no bondholders be paid, until the vulture funds receive their
pound of flesh. Argentine Cabinet Chief Jorge Capitanich responded
that Griesa’s “imperialist statement” ignores that it is
“the sovereign right of [the Argentine] Congress to make laws
regulating its domestic and foreign debt.”
Griesa de facto acknowledged as much. He did not declare
Argentina in contempt of court as the vultures demanded, because
he could not. His court does not rule Argentina.
The Argentine government is well aware that the war is not
over. In the last two weeks, it has: raided HSBC, which it has
charged with being “a criminal enterprise, reminded local subsidiaries
of international banks such as Citibank that their bank
licenses are contingent on their adhering to Argentine law, and
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threatened Royal Dutch Shell that it either invest in production
instead of speculation, or face consequences
Fernández initiated another flank on Aug. 21, proposing in
a speech that the Argentine State and private interests work
together to create a domestic capital market based on domestic
savings and capable of meeting the country’s economic needs,
independent of international finance. That way, she argued, the
country will not always be “subject to policies in which we have
no say or decision.”
The government’s resolve is strengthened by the wide-ranging
support it has received internationally, as Fernández told
youth during her Aug. 13 visit to neighboring Paraguay. We
have to “arouse ourselves, open our eyes and basically exercise
our rights…. We have the right to grow; we have the right for
our people to live well; we have to have the right for young
people to study. We have to have the right for our workers to
earn good salaries, to have health care, housing, so that they do
not have to emigrate to another country because their country
leaves them no opportunities.”
That last remark would certainly apply to many a European
today.
Bolivian Vice President: Nuclear Power
Is the “Sacred Fire” of the 21st Century
Alvaro Garcia Linera, Vice President of Bolivia, made a rousing
call on Aug. 21 for Bolivia to set about to master nuclear
energy, so as to create the platform for his nation’s technological
development over the next 400-500 years. Such a firm
commitment to man’s ability to master physical processes for
his own development represents a refreshing change from the
“Green” culture of death and pessimism that permeates Europe
and the United States today. It also reflects the thinking that
characterizes the new paradigm coming into being around the
BRICS (cf. above).
Garcia Linera’s speech, which we quote below for that reason,
was delivered at the close of the Seventh International
Congress on Oil and Gas in Santa Cruz, Bolivia.
“The use of and training in atomic energy is one of our obligations
as a society and as a State. We have made that decision,
and we are going to guide ourselves based on that decision.
In the coming years, we will implement a program of nuclear
energy for peaceful purposes, with medical and agricultural
goals, as the case may be, but we will have an elite, a core of
brains, integrated with the world, to networks who work in
the atomic field, which will allow Bolivia to learn about and use
this fire of the 21st century: atomic energy.
“Nuclear energy is the fire of the 20th and 21st centuries.
It is the fire which our ancestors had 20,000 years ago, which
allowed them to make philosophy, technical science, culture,
agriculture. Knowledge of the atom, its regularities, its use, its
functioning, is the touchstone of the 20th and 21st centuries,
the fundamental core of new knowledge and new technologies,
new theories and new means of production....
“Fire in itself is not the destroyer,” he said, and nuclear energy
is not the destroyer. It can be “a creative productive force
of life or a destructive force.”
“Nuclear energy exists independently of us. It functions in
Nature, in the human body, in physical and chemical processes.
The question, is if we have the ability, as society, to learn about
it, to know it, to respect its force and to know how to use it
collectively and humanly for beneficial purposes....
“Let us break the mental and colonial chains; break them! Let
us dare to leave the cave, as our ancestors did 20,000 years
ago. Let us dare to assume our responsibility before the world,
before our history and our society. Knowledge of nuclear energy
is knowledge of the ABCs of nature....
“[We have] the technical, scientific and moral obligation to
take responsibility for the knowledge, use, understanding and
beneficial development of this fundamental force of nature.
“It doesn’t matter how long it takes us. We are going to do
it, because we are convinced that that is how we cement the
conditions for the technological development of Bolivians for
the next 400 to 500 years.”
New Silk Road: Chinese Media Take up
Interview with Helga Zepp-LaRouche
On the basis on an interview conducted by Xinhua reporters
some weeks ago with Schiller Institute founder Helga Zepp-
LaRouche, an article was published, in Chinese, in Xinhua Aug.
7 and was picked up by several other publications, such as
China Daily.
During and after Helga Zepp-LaRouche’s visit to China in
February 2014, a number of prominent Chinese media also
ran interviews with her, focussed on the strategic situation, and
the Schiller Institute campaign for the New Silk Road.
The Aug. 7 article begins as follows: “’Just like the ancient
Silk Road, the Silk Road Economic Belt is not only capable of
bringing people together economically, but also of enhancing
cultural and other exchanges between peoples, becoming a
completely new concept of peace order of the 21st century,”
says Helga Zepp-LaRouche.
“For a number of years now, Mrs. LaRouche and the Schiller
Institute she founded have been persistently calling for the
establishment of a Eurasian Continental Landbridge as well as
a world-wide landbridge, and when China announced its proposal
for Silk Road Economic Belt, Mrs. LaRouche was very
excited about it.” When asked about that proposal now, Zepp-
LaRouche said she was “very happy, because this is exactly what
the world needs today. You know, under the present economic
structure, many countries are suffering misery, and the New
Silk Road provides the world a golden opportunity to change
this.’”
The article notes that Zepp-LaRouche visited China in the
1970s, then again in the 1990s, and just recently, last February.
“She took the high-speed rail from Beijing to Shanghai.
She was amazed at the rapid economic development she saw.
She tells our reporters: ‘These changes are unparalleled. I have
never seen any country go through such a period of development
like this one,’ she sighed with amazement. ‘Many countries
of the world have the urgent need of going through such a
Chinese-style transformation.’ LaRouche believes that the new
Silk Road manifests, in the present international situation, the
win-win concept of cooperation between nations for the realization
of their common development....
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