British and Obama Push World War Through Economic Assault on Russia

December 17, 2014

Lyndon LaRouche today blasted the British and President Obama, for bringing the world to the brink of general war, through their economic warfare actions against Russia. Russian officials from President Putin to Foreign Minister Lavrov have made clear that the sanctions and oil-price warfare against Russia are seen in Moscow as part of a regime-change drive that will not be tolerated. These actions put the world on the edge of thermonuclear extinction. LaRouche declared: "These are not economic measures, these are acts of war and will be seen as such in Moscow."

LaRouche added that the recent emergence of Jeb Bush as a possible Republican Party candidate for president in 2016 further adds to the war drive climate, declaring:

"We are seeing the reincarnation of Prescott Bush, the grandfather, who was a proven booster of Adolf Hitler and the Nazis, the mere idea of Jeb Bush being promoted, as a credible GOP candidate for president, intensifies the war danger greatly."

LaRouche proposed several clear solutions to the British-Obama war provocations. First, LaRouche said, Russia must, without delay, adopt the "Mahathir solution" by imposing immediate capital controls, exchange controls, and other protective measures against the assault of currency speculators. Only by such emergency actions now can Russia defeat the financial warfare assault.

LaRouche emphasized that Russia and the world need a Hamiltonian credit system to defeat the power of the City of London-Wall Street oligarchy once and for all.

"If Russia does not take these measures immediately, we are headed into a profoundly dangerous international crisis. If the Russians take the proper action now, the British and Wall Street are dealt a tremendous defeat and the BRICS process moves a giant step forward."

Second, LaRouche demanded the immediate release of the 28-pages from the original Joint Congressional Inquiry into 9/11, which documents the Bush family-Saudi collusion in the 9/11 attacks. LaRouche said: "Once the 28 pages are exposed, the Jeb Bush campaign, along with the entire Bush family legacy, is destroyed." LaRouche reminded that "George H.W. Bush was instrumental in the railroading of me and my political association back in the 1980s—at the point that I had collaborated with President Ronald Reagan in the Strategic Defense Initiative.

"The United States will not survive another moment of Bush treachery. Between the release of the 28 pages and the continuing revelations about the George W. Bush and Dick Cheney Administration's torture program, the Bush option can be crushed, decisively," LaRouche concluded.

And third, LaRouche told colleagues on Tuesday evening:

"The world at large needs a return to a Hamiltonian credit system. Hamilton's system of Federal credit through a national bank was at the very heart of the US Constitution, the Hamiltonian system is America's gift to the world. It has been adopted by the BRICS countries, representing half of humanity. Now it is time for the United States to take its historical and rightful place within a new global system of cooperation among sovereign nations for great projects financed through Hamiltonian credit. That means dumping Obama, Bush, Wall Street and London—and getting on with a future worthy of mankind."



Financial Warfare Against Russia Escalates Drive for General War

Open statements of economic warfare against Russia by top British and American officials have confirmed once again the recent charges by Russian Foreign Minister Sergey Lavrov that the sanctions against Russia and other measures of financial and economic warfare are part of a regime-change agenda coming from the West. Some Russian oligarchs are clearly playing into the British scenario by engaging in hyper-speculation against the ruble and flight capital.

Lavrov had an interview yesterday with France 24 TV and was direct and explicit about how his government is viewing the sanctions:

Q: So you're not afraid that we could see an economic meltdown in Russia?

Sergey Lavrov: Never. Economic meltdown could happen to a small country. It can happen even to a big country like Ukraine, and it's basically almost there. Russia is doing whatever we can to help resolve the crisis in Ukraine--not to please the West, not to ask for sanctions relief, but because we are seriously concerned. Contrary to what the Europeans feel, we are seriously concerned about the future of Ukraine and Ukrainian economy. Actually, speaking of sanctions and, you know, that this is a sign of irritation, not an instrument of serious policies.

The latest portion of sanctions which was voted in the European Union last September was introduced the next day after the Minsk protocol was signed. This is a very interesting logic, you know, to stimulate the political process. So the next morning after the huge achievement was reached, which was praised by everyone, the gentleman, what was his name, Van Rompuy, declared that there was a new portion of sanctions being introduced in Russia. If this is the European choice, if this is what Europe has as a reaction to something positive, then I once again can only say that we hugely overestimated European independence in foreign policy.

Q: Are sanctions, as some people are thinking, a way of trying to create a regime change in Russia?

Sergey Lavrov: I have very serious reasons to believe that this is the case.

Q: Really?

Sergey Lavrov: Yes. Some politicians don't even hide it.

Lavrov could have been referring to recent statements by President Obama, who was quoted today by the Daily Telegraph's Ambrose Evans Pritchard in an article gloating over the Russian ruble crisis, which, he claims, will result in $130 billion in flight capital out of Russia this year. Pritchard noted, before quoting Obama, that
"Credit default swaps (CDS) measuring bond risk in Russia soared 67 points to 556 on Monday, pricing in a 28pc chance of a sovereign default within five years," further noting that Ukraine is facing an imminent debt restructuring that will further harm Russian banks.

After noting that US Congressional Republicans are pushing for new and harsher sanctions, Pritchard quoted Obama:

"The notion that we can simply ratchet up sanctions further and further, and then, ultimately Putin changes his mind I think is a miscalculation. What will ultimately lead to Russia making a strategic decision is if they recognize that Europe is standing with us and will be in it for the long haul and we are patient. And if they see there aren't any cracks in the coalition, then over time, you could see them saying that the costs to their economy outweigh whatever strategic benefits that they get."

"Putin does not have good cards, and he has not played them as well as the Western press seems to give him credit for. Putin will succeed if he creates a rift in the Trans-Atlantic relationship, if we see Europe divided from the United States. That would be a strategic victory for him and I intend on preventing that."

In addition to Obama's open threats, the British Chancellor of the Exchequer, George Osborne, was in New York City this week, addressing the Economic Club of New York along similar lines. Osborne told the audience that the collapse in world oil prices is good for American and British consumers--and bad for Putin.

"This puts a lot more pressure on Vladimir Putin. People had been asking whether sanctions are working, [and] can Putin ride this out with strong oil prices. I don't think that looks so clear now. The Russian budget is heavily dependent on high oil prices. He might be exposed by this."

Washington sources confirm that the Saudis are not relenting in their "war" to drive down oil prices to wreck havoc in many targeted countries--including Russia. On Tuesday, crude oil was being sold on the European spot market for $48 a barrel. The Saudis continue to over-produce, creating an estimated 1.5- to 2- million-barrel-a-day glut, relative to global requirements. The source emphasized that the Saudis are prepared to keep prices low for a prolonged period of time, until many rivals in the oil and natural gas market are bankrupted.

The source elaborated:

"They can sustain the losses longer than any of their rivals. So far, the Obama Administration has made no effort to pressure the Saudis to end the warfare...If the Saudis cut production by as little as 100,000 barrels a day, it would immediately drive oil prices back up to $65 a barrel or higher, just on the perception that they have reversed course."

Capital Controls for Russia

Bloomberg writer Leonid Bershidsky, under the headline, "Will Ruble's Rout Force Capital Controls?", wrote yesterday on what he called, "the probability that Russia will introduce capital controls."

He asserts his view that President Vladimir Putin is an "anti-Western, authoritarian" leader, noting that in 1998, a leader he views as having the same traits, Dr. Mahathir Muhammed, President of Malaysia, successfully implemented capital controls and brought his nation out of turmoil. Bershidsky then reviews what he calls, the "recipe" for how capital controls worked in Malaysia.

But the author also reports specifically on Putin's advisers calling for capital controls, and moreover, doing so, because Russia is under political attack from the West. He cites in particular, Sergei Markov, an advisor from a different alignment than well-known economist Sergei Glazyev, who reiterated his own policy proposals today, noted below.

Bershidsky writes of Markov,

"His [Putin's] anti-Western advisers are evidently holding up the Malaysian example. 'What can [Central Bank Governor Elvira] Nabiullina do within the market model if she is forbidden to sell too much foreign currency and some of the world's biggest financial players have been ordered to play against her?' Sergei Markov, a pro-Putin academic, wrote in a column on 'Since the reasons for the ruble's fall are political, the response should be political, too. For example, a law that would ban Russian companies from repaying debts to Western counterparties if the ruble has dropped more than 50 percent in the last year. That will immediately lower the pressure on the ruble; many countries have done this. Malaysia is one example. It's in great economic shape now.'"

Glazyev, in an interview to yesterday, repeated his charge that the plunge of the ruble was caused by speculative operations of Russian banks; and called for imposing foreign currency regulations.

Glazyev stated,

"Naturally, that's what the bankers are doing. The Central Bank has given the commercial banks 6 trillion rubles [this is $171 billion, at a rate of 35 rubles to the dollar; note, the rate was 69 rubles to the dollar at close of Dec. 15]. Practically two-thirds of this money was diverted onto the currency market, using this essentially government money against the ruble...The Central Bank has a simple tool for stopping this speculation: impose regulations on foreign-currency positions. This was done in 1998. The banks were simply forbidden to have more foreign currency in their accounts at the end of the day, than at the start. It's simple and effective."

In a related development, State Duma deputy Yevgeny Fyodorov has called for the Russian Prosecutor General to launch a criminal investigation into recent actions by the Russian Central Bank, on the grounds they violated the constitutional mandate for the bank to "defend and insure the stability of the ruble." Fyodorov charged that by floating the ruble and allowing the markets to set the rates, the bank acted illegally.