E.I.R.STRATEGIC WEEKLY NEWSLETTER ALERT Volume 33, No. 39, September 26, 2019

E.I.R.STRATEGIC WEEKLY NEWSLETTER 

ALERT Volume 33, No. 39, September 26, 2019 

Eco-Fascism and Population Reduction: the Schiller Institute Counterattacks Clearly, the eco-fascist movement is on the march globally, bolstered by a massive injection of funds from billionaires, proclamations of fake science from academic hoaxters, sup- port from opportunistic politicians, and biased media cover- age. To build a counter-force, the Schiller Institute (SI) has just released a new pamphlet for mass circulation, CO2 Reduction is a Mass Murder Policy: Designed by Wall Street and the City of London, which exposes the fraud of “man-made climate change”, documenting that its backers in financial institutions and corporate board rooms are pushing the fraud with the intention of enforcing a drastic reduction of population, in addition to creating a “green” financial bubble. The fact of the matter is that when Hitler’s extermination policy based on eugenics -- a racist so-called science invented by British imperial interests -- was defeated in 1945, his international financial backers, including the Rockefellers, Harrimans and Bushes, shifted from direct murder in slave-labor camps, to using fraudulent claims of “over-population” and “resource scarcity” to expand on the Nazi barbarism. 

Today, the phony environmentalists are counting on cultural pessimism to bring together a “children’s crusade”, marching under a banner which claims that the world will end within 12 years or less (depending on who’s speaking), unless a drastic reduction of CO2 emmissions is achieved. At the forefront of this movement is the sixteen year-old Greta Thunberg, who has no scientific expertise, but lectures groveling elected of- ficials in Europe and the United States that they will be re- sponsible for the extermination of mankind unless they adopt extremist austerity measures. The ultimate irony is that, if governments do submit to this insanity, especially through taking down modern energy infrastructure, thereby reducing the levels of energy-flux density needed to sustain a popula- tion of more than seven billion people, the resulting break- down of food production and distribution could lead to the extinction of human beings. 

As young people were being excused from school in New York City to swell the ranks of the lemmings marching in a “climate strike” there, coinciding with the opening of the UN General Assembly, former President Obama embraced Thun- berg in a meeting, saying to her, “You and me, we’re a team.” (Recall that Barack Obama had demonstrated his notion of 

development when he scolded youth in Kenya for their wish to achieve an “American standard of living,” claiming that if that were to happen, “the planet would boil over.”) 

The SI deployment is inspiring cultural optimism with sci- entific truth about the nature of the universe and man, as self-developing, creative dynamic processes. The most sig- nificant proof of this -- beside the human race’s population growth over the last centuries, and the scientific discoveries necessary to sustain it -- can be found in space exploration. While many of those encountered on the campuses demon- strate zombie-like states, either accepting the Green fascist diatribes or indifference, the enthusiastic response from the few is the key to defeating the intent of the sponsors of the eco-fascist movement. 

Hyperinflation or Insolvency, the Federal Reserve Is Clueless On Sept. 16, liquidity “suddenly” disappeared on the US repo market, a vital artery for the banking system, forcing the Fed- eral Reserve to resort to an emergency liquidity pumping of $75 billion for overnight loans. As the market paralysis con- tinued, the Fed injected the same amount for the next three days, before announcing on Sept. 20 that it would conduct $75 billion “repo” operations again every business day for the next three weeks, which means 24-48 hour lending to banks against Treasuries, Fannie/Freddie securities and mortgage backed securities guaranteed by Fannie and Freddie. In addi- tion, the Fed will start extending such loans to two weeks. 

The Fed statement clarifies that the Open Market Trading Desk “will offer three 14-day term repo operations for an ag- gregate amount of at least $30 billion each [first on Tuesday Sept. 24].... The Desk also will offer daily overnight repo operations for an aggregate amount of at least $75 billion each, until Thursday, October 10, 2019.” 

While this was occurring in the United States, Draghi’s “ba- zooka” experienced a spectacular fiasco: at the first TLTRO-3 ECB tender on Sept. 19, banks simply refused to take loans which, under certain conditions, the ECB offered at a negative interest rate of -0.50%. Against an expected demand of be- tween €20 and 100 billion, banks asked for only 3.4 billion. The reason for that is simply that commercial banks are busy getting rid of their non-performing loans and see no chance to loan money in a contracting economy. 

The common feature is that in both cases, central bankers can’t figure out what is happening. Wall Street sees a crisis hitting the everything bubble, and does not have the liquid reserves to deal with it. For this, it blames the Fed, for hav- ing reduced its asset book (and thereby, the banks’ excess reserves) by more than $1 trillion over the past 18 months. This is partially true, because the bubble needs to be rolled over with ever-expanded liquidity. Stopping that expansion causes the bubble to burst. 

Wall Street and the City of London have already indicated that they want helicopter money on a large scale, as in Black- rock’s “go direct” proposal (cf. SAS 35, 38/19), and indeed, this is the only choice left to central banks under the current system. It is either collapse by insolvency or collapse by hy- perinflation. In fact, this period is similar to that inaugurated by Lyndon LaRouche’s July 25, 2007 webcast warning of im- minent global financial crisis. He immediately followed it up in his Aug. 22 2007 emergency proposal of the Homeowners and Bank Protection Act (Glass-Steagall bank reorganization plus a national foreclosure moratorium) against the oncoming crash. Then, as now, it is urgent to protect families and the productive economy with the “LaRouche solution” before it is too late. 

Financial Locusts Admit: “Green Is the New Gold” The financial industry makes no mystery that the so-called “Green Economy” is the new frontier of financial speculation. A paper dated Sept. 12, 2019 by Sonja Gibbs, the manag- ing director for Global Policy Initiatives of the International Institute of Finances, carries the self-betraying title: “Green Is The New Gold” (https://www.iif.com/Publications/ID/3557/ Sustainable-Finance-in-Focus--Green-Is-The-New-Gold). In it, she gloats over the growth of the green bubble, which “came close to 235 billion dollars in the first eight months of 2019”, and is expected to reach 350 billion in 2019. A chart shows that returns on green bonds have been higher than Invest- ment Grade Bonds: 14.8% vs. 13.8% cumulatively 2017-to date.However, the green bond market is still miniscule: only 0.5%of the 110 trillion global bond market. The IIF suggests a few measures to promote its expansion, including providing more liquidity and the “further development of a green high- yield bond market, as well as green securitization and green lending markets.” 

High-yield and securitization do not fit into the definition of safe investments. High-yield is a synonym for junk bonds and securitization allows the risk to be spread to the global sys- tem, an unnecessary action if the investment were low-risk. 

The IIF has co-authored all decisions to bail out and “re- form” the financial system since 2008, including the introduc- tion of the infamous “bail-in” procedures. One could actually say that the financial industry represented by the IIF and the system of central banks is one and the same thing, as proven by their officials going through revolving doors in both direc- tions. Indeed, the current chairman of the IIF is Axel Weber, former head of the Bundesbank. 

It has created its own “Green finance” department, called the Sustainable Finance Working Group (SFWG). This Group boasts that “IIF member firms around the world have been launching a wealth of new products, investment vehicles and programs to help bring sustainability considerations into the 

mainstream of global finance. Our job is to help connect these initiatives and align forces with public sector efforts to reach the same vitally important goals.” 

Tellingly, SFWG head Daniel Klier comes from HSBC, one among the top speculative megabanks in the world. HSBC’s derivatives book expanded 15% in the first six months of 2019, with gross derivatives notionals standing at $39 trillion at end-June. 

In a letter to the European Commission dated March 25, 2019, the IIF recommends that the classification of invest- ments on the basis of CO2 emissions, called Taxonomy, being worked out at the Commission, leave no option to companies but to engage in the Green economy. “Taxonomy should not be a binary framework for defining what is or is not green”, says the letter. In other words, the perspective for manufac- turing companies and farms is: either you go green or you die. 

The Exorbitant Costs of German Government’s Illusory Climate Action Plan With 1.4 million people (mainly youth) demonstrating in the streets of Germany on Friday Sept. 20, the “climate cabinet” of Chancellor Angela Merkel passed an action plan of mea- sures, which it claims will become a model for the rest of the world. But it is highly unlikely that the many countries which have opted for nuclear power development as the best energy option, will follow Berlin’s march into the dead end of “renewable” energies. The enormous costs of the transforma- tion into the non-fossile, non-nuclear era in Germany, which already gobbles up €26 billion annually in state subsidies, are a clear deterrent for other countries. 

And while the action plan will not protect the climate, it definitely will make everyday life more expensive. Taxpayers will have to pay an additional €50 billion over the next few years to finance and subsidize some of the measures decided by the “climate cabinet” (comprised of the Chancellor and the ministers of Enviroment, Finance, Economics, Agriculture, Transport and Housing). 

Private consumers will have to pay increased prices for gasoline and diesel, SUVs will be be taxed much higher than other cars, the auto-making industry will be forced to meet a quota of e-car production, airplane tickets and heating oil will be more expensive, while the effects of the carbon pricing will be felt on all products. Industries and utilities will be obliged to buy certificates to compensate their “dirty” production in terms of carbon dioxide emissions. 

The so-called reasoning behind this, is that raising prices will incentivize people to live and produce more “sustainably”. While short of an actual CO2 tax, the trade in certificates, most likely handled by the banks and insurance companies, will amount to hundreds of billions of euros. 

Oil heating systems should be banned from 2026 on, but non-oil systems should be co-funded at 40% of installation costs, with a similar mechanism for “emissions-neutral” build- ings. In addition to the already decreed exits from nuclear power in 2022 and from coal in 2035-2038, the German government wants to increase co-funding for the installation of more photovoltaic and windpower facilities. There will be an accelerated, orchestrated run into tens of billions worth of investments into “sustainable” projects, guaranteeing huge returns for “Green Finance” which their main propagators portray as the “modern day gold rush.” 

EIR STRATEGIC ALERT WEEKLY NEWSLETTER 2 N° 39 / 2019 

But as has seen with the many solar and wind power com- panies unable to survive without massive state subsidies, this insane green bubble will be the most volatile aspect, and turn out to be the opposite of what might deserve the label “sus- tainable”. Oh yes, as for the effect on carbon emissions, recall that the German economy only accounts for 2% of the total worldwide... 

Israeli Elections. Netanyahu’s Last Stand On Sept. 17, Israel went to elections for the second time this year, but the deadlock in forming a government that occurred after the April 9 vote could very well repeat itself. Most Israeli political observers consider that the only way to avoid a third election is for incumbent Prime Minister Benjamin Netanyahu to resign as leader of the Likud Party to open the way for a unity government of the Blue and White party, led by General (ret) Benny Gantz, and the Likud, minus Netanyahu and per- haps a third party. 

While Netanyahu remains defiant, and no one in the Likud has come forward to try to unseat him, the Israeli justice sys- tem might succeed where the political system has failed. On Oct. 2, a panel of judges will hold a hearing on the Attorney General’s recommendation that he be indicted on charges of corruption. If indicted, Netanyahu is expected to resign, and if convicted his political career will be at an end. 

After a campaign characterized by racist attacks on the Is- raeli Arab population which accounts for 20% of the elector- ate and on the Ethiopian Jewish community, the Likud re- duced its mandates from 35 to 31 in the 120 seat Knesset. Outstripping the Likud, the Blue and White party received 33 seats. The Joint List alliance of Arab-majority parties won an unprecedented 13 mandates, making it the third largest par- ty. Netanyahu’s main allies, the ultra-Orthodox parties Shas and United Torah Judaism recieved 9 and 8 seats respectively while the rightwing Yamina party won 7. 

Blue and White’s potential allies, the left wing Labor and the Democratic Union won 6 and 5 respectively. 

The Yisrael Beytenu, which represents the Russian com- munity won 8 seats, but its leader, Avigdor Lieberman has declared his party would only join a national unity government that includes the Likud and Blue and White parties, but not the religious parties. 

Gantz has said he would join with Likud in a unity govern- ment but not if Netanyahu is indicted. Since without Lieber- man’s backing neither a Likud-led center right government nor a Blue and White led center left government is possible, there are only two options left: force the resignation of Ne- tanyahu or go to a third election. As of this writing, Israeli President Reuvin Rivlin still has to decide who will be given a mandate to form a new government. Whoever that may be will then have up to 42 days to do so. If he fails, the President can choose someone else or call new elections. 

What will a national unity government mean for a peace process? The answer is mostly in the hands of President Don- ald Trump and his peace plan, which is expected to be released after an Israeli government is formed. 

French Agronomist: China’s “Land Grabbing” in Africa Is a Myth After the election of Chinese official Qu Dongyu as President of the UN’s Food and Agricultural Organization (FAO) in June 2019, wild rumors were spread about an alleged Chinese plot 

to “take over” food production in Africa, to feed its own pop- ulation. French expert agronomist Jean-Jacques Gabas trav- eled to Africa to examine the situation on the ground and visit Chinese experimental farms there. In an instructive interview with Le Monde published Sept. 13, he set the record straight, on allegations of food exports, land-grabbing, etc. 

Asked whether China intends to increase its imports of Af- rican agricultural products, Gabas replies bluntly: “No. Since the end of the year 2000, Beijing has been the largest trade partner of sub-Saharan Africa, but the share of agriculture in African exports to China represents only 2 to 3% of trade volumes, nearly nothing. China’s investments in African rice and sugar production go to regional African markets.” 

China is very much dependent on food imports for its own population, Gabas notes. But its leaders know that any eco- nomic crisis worldwide, including a food crisis in Africa, would have a negative impact on its own internal grain production. Therefore, they want “to stabilize the African continent’s food production.” China’s main imports from Africa are “rubber, manioc for food packaging, and, depending on the years, peanuts, cotton, and wood. South African vinyards are also bought for export purposes.” 

Africa exports far more food products to Europe, the ex- pert explains, than to China. In sum, “Chinese companies are present and profit from market and investment opportuni- ties, but without a marked strategy to ‘feed China’.” 

Asked about the charges of Chinese “land grabbing”, Gabas answers that viable statistics show that “China is far from be- ing number one and comes only in the 8th or 9th position.” The largest investors, “be it land for farming, mining, for- estry or rubber trees”, are OECD countries such as the United States, the UK and France, national companies of the country concerned, or Gulf States such as Saudi Arabia. Moreover, “when the Chinese buy land and a land-related conflict arises or there is opposition from the population, they withdraw or change the nature of the contract. (...) Chinese land grabbing is a myth.” 

Many in the West were shocked that so many African coun- tries had voted for a Chinese expert to head the FAO, rather than the candidates proposed by Europe or the United States. (Qu Dongyu received 56% of the votes.) For Jean-Jacques Gabas, they was a clear signal of their rejection of the rela- tions with OECD member states. “As a matter of fact, the OECD levels of financing of agriculture has been very low for the last thirty years and dropped increasingly up to the 2008 food crisis... “When you discuss Chinese strategy with Afri- can agriculture ministers, they tell you: ‘Stop giving advice and having fears. What have you financed over the last thirty years? Very little, given the needs.’ And they aren’t completely wrong...” 

Alarming Repercussions on Mental Health of Media-Induced Climate Hysteria London’s Guardian daily proudly revealed on Sept. 15, that it is “the lead partner” in a global media alliance formed to en- sure that media only publish “Chicken Little” stories about the “man-made climate crisis” in the run-up and during the United Nations Climate Summit, which began on Sept. 23. This is the same daily which issued a memo to journalists around the world earlier this year instructing them to write only about climate “crisis” or “emergency,” not “change,” in order to bet- ter scare people (cf. SAS 24/19). 

EIR STRATEGIC ALERT WEEKLY NEWSLETTER 3 N° 39 / 2019 

Now, in conjunction with the U.S. publications, The Nation and Columbia Journalism Review, it has formed a “Covering Climate Now” alliance made up of more than 250 newsrooms from 32 countries, reaching a monthly audience of over a bil- lion people, which have pledged to publish only the approved “end of the world” message, as they try to increase the vol- ume and visibility of their climate coverage.” 

Included are “the TV networks (CBS News, Al Jazeera), newspapers (El País, the Toronto Star), digital players (Buzz- Feed, HuffPost, Vox), wire services (Getty Images, Bloomb- erg), magazines (Nature, Scientific American), and dozens of podcasts, local publishers, radio and TV stations” in many countries. 

Meanwhile, doomsday cults predicting the end of the world in 12 years as a result of climate change are reportedly caus- ing such bouts of depression, pessimism and anxiety among young people that new professions and organizations are emerging to specifically deal with the crisis. * The Daily Beast of Sept. 17 documented the rise of “self- care” groups dealing with emotional problems among young people who are certain they have no future. For example, an event known as “Catharsis on the Mall” took place last May in Washington, reported the Daily Beast, whose goal was “heal- ing,” and holding “climate anxiety sessions” to address “feel- ings of despair, depression and anxiety” caused by fears of the future extinction of the world. The focus was on helping people come up with “coping mechanisms.” (Note that the Daily Beast is part of the above-mentioned “Covering Climate Now” alliance.) * An Aug. 26 feature article published by the French daily Le Parisien reported that contemplating every day images of melancholic polar bears on their melting iceberg, dying coral rifts and the forests in which you played as a child being de- stroyed by urban expansion, has inflicted more and more peo- ple with a kind of green “blues” now renamed by experts as “eco-anxiety”, a mental disease spreading over the planet. * The American Psychological Association, in its March 2017 report Mental Health and Our Changing Climate : Impacts, Implications and Guidance, while endorsing the climate hoax doctrine, noted that the “health, economic, political, and en- vironmental implications of climate change affect all of us. The tolls on our mental health are far reaching. They induce stress, depression, and anxiety; strain social and community relationships; and have been linked to increases in aggression, violence, and crime. Children and communities with few re- sources to deal with the impacts of climate change are those most impacted. To compound the issue, the psychological re- sponses to climate change, such as conflict avoidance, fatal- ism, fear, helplessness, and resignation are growing. These responses are keeping us, and our nation, from properly ad- dressing the core causes of and solutions for our changing climate, and from building and supporting psychological re- siliency.” 

Indian Chandrayaan-2 Team, Disappointed, but not Discouraged On Sept. 7, just days after the successful launching of the Vikram lander from its orbiter toward the lunar surface, the India Space Research Organization (ISRO) monitoring the Chandrayaan-2 spacecraft announced that communication had been lost with the Vikram after it landed on the Moon. 

Chandrayaan-2, the follow-on to its predecessor which launched 10 years ago, was the first mission ever to plan a landing on the south pole of the Moon. It carries suites of sci- entific instruments on the orbiter designed to operate for one year, as well as the lander and rover which are solar powered and were expected to last of one lunar day (14 Earth days). Together, their mission was to produce high-resolution im- ages of the Moon, chemical analysis of the surface material, and the presence of quake activity. 

Of special importance was the task of adding detail to the finding of a NASA instrument aboard Chandrayaan-1 of a rich cache of water ice in the permanently shadowed craters on the south polar region. The lander and rover were to explore the region in situ, thus becoming the first spacecraft to do so. ISRO received help from NASA on Sept. 17, when it was hoped that the Jet Propulsion Laboratory’s Lunar Reconnais- sance Orbiter (LRO) would be in a position to photograph the landing site of Chandrayaan-2. However conditions were unfavorable at the time, and the LRO should make another attempt on Oct. 14. From thermal imaging received from the orbiter, ISRO scientists believe the lander did not “crash land” and break into pieces, but is intact but tilted. Depending upon the direction of its antennas, it may not be able to communi- cate with the orbiter or directly with the Earth. The orbiter, in any case, remains operational and will continue to deliver valuable information on the Moon during its seven-year mis- sion. 

Just hours after the loss of communication, Prime Minis- ter Modi went to Mission Control to talk to the engineers who had worked non-stop in the last hours of the mission. “ Friends, today, even though there have been some obstacles and handicaps, this has not weakened our spirit, but strength- ened it,” he said.” Today, even though one last step has come to a halt in our plan, it has not deterred us from the path of our destination.” 

The Prime Minister noted that “every Indian is filled with a sense of pride as well as confidence...To our scientists, I want to say India is with you. You are exceptional professionals who have made an incredible contribution to national progress... We are proud of our space program and our scientists. Their hard work and determination has ensured a better life not only for our citizens but for other nations.” 

Putting into historic context the challenges facing India to- day, Modi recalled that “resilience and tenacity are central to India’s ethos. In our glorious history of thousands of years we have faced moments that may have slowed us but they have never crushed our spirit. We have bounced back again and gone on to do spectacular things.” 

E.I.R. STRATEGIC ALERT www.eir.de Published by: E.I.R.GmbH, Bahnstr. 4, 65205 Wiesbaden Tel.: 0611/73650, Fax: 0611/9740935, Email: info@eir.com Verantwortl. f. d. Inhalt: Dean Andromidas, Claudio Celani Subscription: EUR 3000/ ISSN 0936-7527 © E.I.R. GmbH Alle Rechte vorbehalten, auch die des Nachdrucks von Auszügen, derphotomechanischen Wiedergabe und der Übersetzung, Printed in Germany 

EIR STRATEGIC ALERT WEEKLY NEWSLETTER 4 N° 39 / 2019