E.I.R.STRATEGIC WEEKLY NEWSLETTER ALERT Volume 34, No. 5, January 30, 2020

E.I.R.STRATEGIC WEEKLY NEWSLETTER 

ALERT Volume 34, No. 5, January 30, 2020 

Davos: the Unholy Alliance between Billionaires and Environmentalists The World Economic Forum in Davos, which brought to- gether over 3,000 representatives of those who consider themselves to be the “financial elite” of the planet, was of- ficially dedicated this year to “saving the planet”, “averting a climate apocalypse”, “stopping global warming”, etc. There were plenty of “collapsologists” on the speakers lists to spell out the catastrophes in store for all of us, including Prince Charles, Sir Nicholas Stern, Al Gore and of course media star Greta Thunberg. 

But behind the slogans was the real agenda: creating a new “green bubble” to save the thoroughly bankrupt trans-Atlantic financial system from what promises to be the final collapse. Thus, this year in Davos, the de facto alliance between the ideologues of monetarism and environmentalism became crystal clear for everyone. 

The one unscripted element in the four-day event, the one that caused the greatest hysteria, was the intervention by Donald Trump, who cut through the gloom and doom pre- dictions with an optimistic view of the future based on what human society has already accomplished throughout history. “This is not a time for pessimism; this is a time for optimism,” he stated simply. (We present lengthy quotes from Trump be- low, which were scarcely reported on in the media.) 

The agenda of the bankers was laid out very clearly in a keynote speech by Bank of England Governor Mark Carney, who will soon take over as UN Special Envoy on Climate Ac- tion and Finance. He openly stated that the Bank of England, with other central banks, will now begin to deny credit to cor- porations which are not “net zero carbon emitters”. In plain terms, that means no investments in those energy sources that provide most of the world’s energy. That is a sure pre- scription for de-industrialization and massive depopulation. 

Mr. Carney was backed up by the CEO of the world’s largest asset management fund: Larry Fink of the notorious Black- Rock vulture fund, who argues for “a fundamental reshaping of finance”, in favor of “climate friendly” investments. 

One has to doubt the “altruistic” intentions of a financial elite, which has built up a system that has created unprec- edented levels of inequality. Just one day before the Davos forum opened, Oxfam published a report showing that the 

world’s 2,153 billionaires own more wealth than 4.6 billion people in the world (and over 100 of those billionaires were present at Davos)! 

In fact, as Helga Zepp-LaRouche commented on Jan. 22, the purpose of the whole discussion in Davos is “to impose a green dictatorship”, based on lies and misconceptions about the environment and the climate. De-carbonizing the world economy, banning the use of nuclear energy and imposing energy sources with low energy flux-densities, she explained, means that only a very low level of population can be main- tained, “so what these people are actually pushing is a popula- tion reduction of several billion people. And that is not not so nice.” 

Verbatim: Trump Takes on the Prophets of Doom Donald Trump’s intervention sent shock waves into the cozy consensus in Davos. Although he devoted the first part of his speech to undue and unfortunate praise for the “tremendous” economic situation in the United States, an error which could prove fatal for his presidency, the second part was quite re- markable. 

Explicitly targeting what he calls climate hysteria”, he said, “This is not a time for pessimism; this is a time for optimism. Fear and doubt is not a good thought process because this is a time for tremendous hope and joy and optimism and ac- tion. But to embrace the possibilities of tomorrow, we must reject the perennial prophets of doom and their predictions of the apocalypse. They are the heirs of yesterday’s foolish fortune-tellers... and they want to see us do badly, but we don’t let that happen. They predicted an overpopulation crisis in the 1960s, mass starvation in the ’70s, and an end of oil in the 1990s. These alarmists always demand the same thing: absolute power to dominate, transform, and control every aspect of our lives.” 

In ridiculing today’s green “prophets of doom”, he was identifying (though not by name) such seminal works as The Population Bomb by Paul Ehrlich in 1968, and the “Limits to Growth” hoax by Dennis Meadows and Jay Forrester and their Club of Rome/MIT team of quacks in 1972. What Trump did not say is that the evil intentions of such circles have been consistently denounced and refuted by Lyndon H. LaRouche, including in his 1983 book There Are No Limits to Growth. 

More importantly, LaRouche presented the necessary coun- ter to these fraudsters: the real science of human progress. He often insisted that it is necessary to look back to the ge- niuses of the Renaissance to find solutions to today’s crises, pointing especially to the building of the Duomo of the Flor- ence Cathedral, and educating a workforce in the process (cf. more on this below). In his speech in Davos, Trump pointed to the same example used by LaRouche as a source for opti- mism about the future. 

“Centuries ago, at the time of the Renaissance, skilled crafts- men and laborers looked upwards and built the structures that still touch the human heart,” Trump said. “To this day, some of the greatest structures in the world have been built hundreds of years ago. In Italy, the citizens once started con- struction on what would be a 140-year project, the Duomo of Florence. An incredible, incredible place. While the technology did not yet exist to complete their design, city fathers forged ahead anyway, certain that they would figure it out someday. These citizens of Florence did not accept limits to their high aspirations and so the Great Dome was finally built.” 

Elsewhere in his speech, Trump noted that a “growing and vibrant market economy focused on the future lifts the hu- man spirit and excites creativity strong enough to overcome any challenge — any challenge by far....The great scientific breakthroughs of the 20th century — from penicillin, to high- yield wheat, to modern transportation, and breakthrough vaccines — have lifted living standards and saved billions of lives around the world. 

“And we’re continuing to work on things that you’ll be hear- ing about in the near future that, even today, sitting here right now, you wouldn’t believe it’s possible that we have found the answers....But the wonders of the last century will pale in comparison to what today’s young innovators will achieve be- cause they are doing things that nobody thought even feasible to begin. We continue to embrace technology, not to shun it. When people are free to innovate, millions will live longer, happier, healthier lives.” 

France and China Back Vladimir Putin’s Call for Five-Power Summit Shortly after Helga Zepp-LaRouche had launched a call on Jan. 3 for an urgent summit between the Presidents of Rus- sia, China and the United States to defuse the grave tensions developing in South-West Asia, Russian President Putin called for an emergency meeting of the permanent five members of the UN Security Council to discuss how to ensure peace and stability in the world (cf. SAS 4/20). 

Putin reiterated his proposal on the solemn occasion of the Fifth World Holocaust Forum in Jerusalem, on Jan. 23, noting that “A summit by the countries that made the chief contribution to the defeat of the aggressor and creation of the post-war world system would play an enormous role in the search for collective answers to the modern challenges”. He said that he had already discussed this idea with some of the others, and that the meeting could take place “in any country and at any point on the globe the counterparts find convenient.” 

French President Emmanuel Macron, in his intervention at the same commemoration in Jerusalem supported Putin’s proposal, stating that the five permanent members of the UN 

Security Council “bear historic responsibility”, as the “guaran- tors of world peace”. 

Chinese Foreign Ministry Spokesperson Hua Chunying like- wise said that “global instability and uncertainty are increas- ing, while multilateralism and the role of the United Nations are facing clear challenges. China supports Russia’s initiative to hold a summit of the UN Security Council permanent mem- bers,” and offers to coordinate activities towards it. 

Kremlin spokesman Dmitry Peskov told reporters on Jan. 24 that Moscow will send messages to officials in the first half of next week “that will clarify the details” of the proposed summit. 

The key will be the response of the United States. While President Trump would likely support such a meeting, he is under enormous pressure by the “war party” in both par- ties, and the ongoing impeachment hearings have opened the floodgates to a massive wave of Russia-phobia. 

As for the Schiller Institute, Helga Zepp-LaRouche welcomed the dynamic that has developed around Vladimir Putin’s pro- posal. The essential thing, she stressed, is to make sure that Lyndon LaRouche’s “four laws” are put on the agenda, to es- tablish a lasting basis for peace and stability. 

After the Megabanks, the Hedge Funds Get Bailed Out If the Wall Street Journal’s report on Jan. 14 was accurate, officials of the Federal Reserve are “considering” breaking the law, in order to print large amounts of new money and pump it directly, on a daily basis, into the super-speculative financial derivatives market. And this, not even to save banks as such, but to allow large hedge funds to cover mounting derivatives losses. 

It is well known that since mid-September, the New York Federal Reserve Bank has been fighting big “liquidity holes” in the financial system by making $50-100 billion in very short- term loans to big banks every weekday morning, while keeping financial journalists and media almost completely quiet about it. For four months it has had to “fill in” for a disappeared 10% or so of the liquidity of the entire interbank lending market, to prevent chain-reaction liquidations of corporate debt and derivatives contracts leading to a financial crash. 

But if the Fed is now so desperate that it considers throw- ing money directly into big hedge funds, we must be well into a financial crisis leading to a crash—or, to an inflationary explosion. 

The U.S. blog Zero Hedge explained thusly the Fed’s inten- tions: “Fed officials are considering a new tool to ease repo market stress: namely bypassing the existing system entirely, and lending cash directly to smaller banks, securities dealers and hedge funds through the repo markets’ clearinghouse, the Fixed Income Clearing Corp., or FICC.” If the Federal Reserve starts doing this, it will be directly funding and rescuing the LTCMs of this crisis. Long-Term Capital Management (LTCM) was a large, 100-to-1 leveraged hedge fund speculating ex- clusively in financial derivatives, whose failure came close to triggering a financial crash in early 1999. 

The Bank for International Settlements’ Quarterly Review dated Dec. 8 found that when the interbank lending market first “froze” on Sept. 17 last year, some large hedge which were using that market to debt-leverage themselves, would 

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have failed had the Fed not “unfrozen” it. There is no end in sight to that situation, except a crash when the Fed can’t pump enough new liquidity through the banks into the hedge funds and their speculations, to cover the losses. 

Lyndon LaRouche’s Triple Curve, or “Typical Collapse Func- tion,” described the situation we have today: the underlying real, physical economy is contracting, but both financial ag- gregates (debt) and monetary aggregates (money supply or “monetary base”) are rising rapidly and at a rapidly increasing rate. At the point those rising curves cross, because the mon- ey supply must head for the sky to replace cascading losses in debt assets, the financial system is primed for an early col- lapse. It can’t be forecast precisely when, LaRouche said, but it is coming. 

“No Farmers, No Food, No Future!” German Farmers Take to the Streets This year’s “Green Week”, the annual international agricul- ture exhibit in Berlin, saw the most massive protest actions of German farmers in years. On the opening day of the 10-day exhibit on Jan. 17, 5,000 tractors rolled into the German capital from all parts of the country. Parallel rallies were held regionally in all major cities, mobilizing tens of thousands of farmers, including a 2,500-tractor demonstration in Stut- tgart. The tractor protests continued through the 10 days of the Berlin exhibit, with slogans such as “No Farmers, No Food, No Future” and “We Work For Your Food” postered onto the vehicles. 

They have plenty to protest about. The new regulations planned by the European Commission, allegedly to protect the climate, nature and wildlife, will in reality destroy their livelihood and the future of family farms. Among the outra- geous measures to be applied are a reduction in the use of fertilizers by 20% with a total ban on nitrate, the prohibition to plant “catch crops” in between plantings of main crops, as well a ban on the use of insecticides and pesticides. On top of all that, the farmers are told to switch to becoming “energy producers”, by turning their arable fields into land for wind power parks! 

Protesters are also furious that dairy farmers are already operating at a big loss, since they are paid only 20 cents per liter of milk produced, where 40 cents would be needed just to reach above break even. 

In addition to the European Commission, the German gov- ernment is harshly attacked, and in particular Agriculture Minister Julia Klöckner who, while paying lip service to the farmers’ cause, acts as a transmission belt for the Commis- sion’s mis-named “green” policies. She proposes to organize regional events from March on, where farmers can “dialogue” with ecologists, on the premise that “there is no alternative to climate protection, and farmers just have to accept that.” Presumably, even if that means destroying the existing agri- culture and food-producing sector altogether, and putting it entirely in the hands of multinational corporations. 

The farmers are thus demanding real economic investments in the countryside, rather than pumping taxpayer money into new wind farms. And since the official farms associations have sold out, farmers have developed communication channels of their own, working via internet media such as Facebook and whatsapp, to organize surprise actions. With their new pro- 

test movement, called “Land schafft Verbindung” (“Country- side Creates Connection”), 100 tractors or more may show up somewhere during the morning rush hour for short road blockades, and then drive away in a well coordinated way only to return for another rally in the late afternoon or evening. Farmers are also beginning to show up at public events with leading politicians, to take over the discussion and make their cause heard. 

“The Strategic Implications of Impeachment Battle in the United States On Jan. 21, just as the impeachment trial against President Trump was beginning in the Senate in Washington, the Schil- ler Institute and EIR held a joint seminar on the above sub- ject in Berlin, featuring Harley Schlanger, the former national spokesman for Lyndon LaRouche in the United States, and William Binney, former Technical Director of the National Se- curity Agency, by video. 

The participants from various nations and institutional backgrounds heard an extensive briefing by Schlanger about the strategic implications and history of the impeachment battle in the U.S. and the all-encompassing need to establish cooperation among the U.S., Russia, and China in the present strategic escalation. 

Schlanger described the British Empire role in bringing about regime change wars, the Blair doctrine of maintaining the failing “rules-based world order” of geopolitics and the bankrupt financial system of globalization, versus the newly emerging paradigm of economic and political cooperation. This is needed to understand the the attempted coup against the elected President today. 

What became very clear from his briefing , is that the pri- mary aim of the impeachment is to prevent Donald Trump from carrying out his announced policy of stopping regime change wars and establishing good relations with Russia and China. Proof of the fraudulent nature of the impeachment process is that the articles of impeachment do not specify any crime, but only accuse the President of “abuse of power” and “obstruction of Congress” -- both charges being eminently political. 

William Binney, who could not attend in person for health reasons, demonstrated once again in his video presentation that the alleged “Russian hacking” of the Democratic Party computers was impossible for technical reasons. Nonetheless, that accusation was the basis for the entire investigation of Trump’s election campaign and thereafter. It was all based on a swindle. 

The seminar presentations are available in English at https:// schillerinstitute.com/blog/2020/01/22/berlin-seminar-on- strategic-implications-of-the-impeachment-battle-in-the-u-s/. 

A Rail Project for the Reconstruction of Libya The January 19 conference in Berlin conference on the Libyan conflict, following on various meetings in Moscow, has given renewed hope that a ceasefire can be concluded and that the nine-year war will soon come to an end (cf. SAS 4/20). Nonetheless, to ensure lasting peace, the major powers of Russia, China and the United States, with Europe in tow, need to offer direct aid in the reconstruction and development of the Libyan economy. 

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The one commitment that all warring sides could agree to is to restart the infrastructure projects which were underway prior to the regime change war forced on the country. At the center of those projects was the construction of a railway net- work that could form the missing link to an East West corridor and Maghreb Railway along the Mediterranean coast stretch- ing from Alexandria, Egypt, to Casablanca, in Morocco. 

Before it’s overthrow, the Qaddafi regime began imple- menting a a plan to construct a 3,170 kilometer standard gauge railway network of which the section between Ras Edjar on the Tunisian border to Sirte on the Mediterrenean coast via Tripoli, was in full swing and was to be completed by 2012. China Railway Construction Corp.(CRCC) was in the process of building 352 kilometers of that section stretch- ing from Al-Khums, just east of Tripoli, to Sirte. For the line stretching eastwards from Sirte to Benghazi, Russian Rail- ways had already conducted a feasibility study and signed a contract in 2008 to build it. 

An 800 km south to north railway connection was also planned runing from the iron ore deposits at Wadi Shati, near Sebha in the south of the country to the steel mill at the coastal port city of Misurata. And discussions were ongoing on the extension of the Libyan rail network south into Niger and Chad. Such a development would immensely contribute to the construction of the Transaqua project to build a canal from the Congo basin to refill lake Chad. 

When Abdul Hadi al-Hweij, the foreign minister of the Benghazi-based parliament and Interim Cabinet, attended the Africa Summit in Moscow last year, he requested Russia take up the completion of the $2.2 billion Sirte-Benghazi railway project. 

In Oct. 2018, the Tripoli-based Government of National Ac- cord’s Economy and Industry Minister Nasir Shaglan traveled to Moscow where he held meetings with the leadership of the Russian Railways Corporation (RZD) and proposed the completion of the Sirte-Benghazi line although it lies outside the territory under the control of the GNA. 

According to a statement by the American Embassy in Libya, the U.S. is involved in efforts to reinforce economic coopera- tion and promote economic recovery. In that context, Gen- eral Electric signed a binding Memorandum of Understanding (MOU) last Sept. with the Government of National Accord to add up to 6 GW of power to Libya’s network over the next 5 years, with up to 2 GW by 2020. 

While there have no public statements so far on the CRCC restarting its rail project, China already has a foot in the door with the delivery earlier this month of the first batch of 35 Chinese manufactured buses arriving in Tripoli. 

If China’s Belt and Road initiative enters Libya, along with Russian, American and Italian and other European compa- nies, reconstruction of the country could quickly begin. Chi- na is already deeply involved in building railways in Tunisia and Algeria. 

The Cupola of Florence: An Echo of Lyndon LaRouche in Trump’s Speech in Davos Those who are familiar with Lyndon LaRouche and his writ- ings recognized an echo of his “trademark” in Donald Trump’s speech in Davos, when he evoked cupola of Santa Maria del Fiore in Florence. Indeed, it was LaRouche who often used 

the example of Brunelleschi’s cupola as a metaphor expressing the idea of human progress, and a contrario why there are no limits to growth. In a unique way, he exposed the anti-human, neo-Malthusian roots of the modern ecologist and climate change movements. 

In his book The Science of Christian Economy, published in 1991 with a beautiful photo of Brunelleschi’s dome on the cover, LaRouche takes up a core aspect of his philosophical and economic thinking: the fundamental, irreconcilable dif- ference between the original American system of political economy and the imperial, Anglo-Dutch free-trade system. (cf. https://www.amazon.de/Science-Christian-Economy- Writings-Larouch/dp/0962109568 

As for LaRouche’s accurate forecast of the inevitable col- lapse of the current financial system, it was based on a dev- astating critique of the mathematical formalism which has replaced political economics. Such formalism is a result of the decoupling of mathematics from science, and leads among other absurdities to the false determination of financial value that we have today. Science, on the other hand, in its modern form, was born in the Renaissance and expressed in architec- ture by Filippo Brunelleschi. 

LaRouche proposed more especially to focus on the method followed by Brunelleschi in the construction of the cupola, built in a self-supporting way, without scaffolds, thanks to a fundamental scientific discovery of how the principle of least action works in the physical universe. 

Brunelleschi employed a principle which to this day is not very well understood, called the catenary principle -- or the hanging chain. That principle was only elaborated 200 years later by Leibniz in precise detail. The Florence cathedral is so stunningly beautiful because it reflects the fundamental laws of nature. 

Brunelleschi’s discovery was typical of the revolution in sci- ence and arts brought about in the Renaissance, which as- serted the unlimited power of human creativity in discovering how the universe works, and reproducing those laws through technology to ensure progress for human society. Such was the basis of the American System of Political Economy which LaRouche himself improved with his notions of Energy Flux Density and Potential Relative Population Density. 

Today’s so-called environmental and climate-protection movements, whose roots trace back to Thomas Malthus (XVIII Century), deny that principle, putting man on the same level as all other animal species and predicating cultural pes- simism. They have been able to proliferate because physical science has been overtaken by mathematics, providing the prophets of doom with fake “scientific evidence”, including of man-made climate change. 

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° 5 / 2020