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Face the Economic Reality — LaRouche Was Right!

May 4, 2017

The United States and the trans-Atlantic financial system are right now plunging towards a financial blowout bigger than that of 2007-08. Today's corporate debt bubble, at $14 trillion, is bigger than the $11 trillion mortgage bubble of 2007-08, and the 20% level of defaults projected for these debts today, is far greater than that actually experienced in mortgages a decade ago. We are already into "The Big Short," where Wall Street is lending money to suckers to help them buy up its securitized worthless debts--and then betting against its own customers.

The hysteria exhibited in Wall Street's daily public freakouts against Glass-Steagall, reflects the banks' awareness of the coming blowout.

Nothing like the present situation has ever been experienced anywhere before. Put another way, nothing in the present world situation bears any comparison whatever even to that of 2007-08 financial crisis, for example.

Consider another unprecedented moment in human history.

NASA Mission Controller Gene Kranz, who went on to be the key Mission Controller for Apollo 13, described in his book, "Failure is Not an Option," published in 2009, how his boss, the legendary Mission Controller Chris Kraft, had walked up to his desk just two weeks after Kranz had first joined NASA at Langley in 1960. Kraft said, "Everyone else is tied up. You're all I've got. We're coming up on our first Redstone launch. I'd like you to go down to the Cape, get with the test conductors and write a countdown. Then write some mission rules. When you finish give me a call and we'll come down and start training."

"The shock on my face must have registered," Kranz wrote, "as Kraft continued, `I'll tell Paul Johnson to meet you at Mercury Control and give you a hand.' When Kraft talked, his eyes never left mine."

"My days as an observer were over, my chance to get up to speed ended.... From my work, most recently at Holloman Air Force Base in New Mexico, I knew about flying, systems, procedures and checklists. I could figure out what a countdown should contain. Mission rules were different. There had never before been such a mission in U.S. history—I would just have to give it a shot. Since there were no books written on the actual methodology of space flight, we had to write them as we went along."

And it is just so for us at this moment.

There is no book which tells us what we must do now.

We do know that the crash must be pre-empted by an in-depth mobilization of the population—just like a mobilization for war, but in this case, a mobilization for the economy in depth. The only approximating comparison is Franklin Roosevelt's "100 Days" program, and this time we will require the scientific precision expressed in the most successful of FDR’s economic mobilization, perhaps best exemplified in the Tennessee Valley Authority, which is still considered a miracle for its time.

Lyndon LaRouche spelled out what this means in his "Four New Laws" of June 2014. That statement opens with the following:

“The economy of the United States of America, and also that of the trans-Atlantic political-economic regions of the planet, are now under the immediate, mortal danger of a general, physical-economic, chain-reaction breakdown-crisis of that region of this planet as a whole. The name for that direct breakdown-crisis throughout those indicated regions of the planet, is the presently ongoing introduction of a general “Bail-in” action under the several, or more governments of that region: the effect on those regions, will be comparable to the physical-economic collapse of the post-“World War I” general collapse of the economy of the German Weimar Republic: but, this time, hitting, first, the entirety of the nation-state economies of the trans-Atlantic region, rather than some defeated economies within Europe.
“A chain-reaction collapse, to this effect, is already accelerating with an effect on the money-systems of the nations of that region. The present acceleration of a “Bail-in” policy throughout the trans-Atlantic region, as underway now, means mass-death suddenly hitting the populations of all nations within that trans-Atlantic region: whether directly, or by “overflow.”

“The effects of this already prepared action by the monetarist interests of that so-designated region, unless stopped virtually now, will produce, in effect, an accelerating rate of genocide throughout that indicated portion of the planet immediately, but, also, with catastrophic “side effects” of comparable significance in the Eurasian regions.”

Mr. LaRouche continued the development of this thought in dialogue with colleagues recently.

“The United States and other nations have an intrinsic power of economy, as has been shown in super-high growth-rate impulses in certain periods, as with FDR, JFK, and in the industrial revolution based on Lincoln’s policies.

“But then the thieves came and shut it down, and each time spread the myth that this, their speculative practices, is the way the system really works. That's a myth! It doesn't work that way. What we have to do is what the LaRouchePAC and the broader LaRouche movement is doing in the Manhattan region, i.e. awakening the souls of fellow American’s, among others, through the beauty of the American System.

“We are actually creating a force of economic creativity. What we have done with the music, with the concerts, the choruses throughout the city, is an example of real economic creativity. What is required is the generation of a process of development. Then we do not have a real crisis, since the population is then the solution not the problem. We may have an embarrassment. You may have lost money! You may have lost your job on Wall St., but the system itself, if treated properly, will work.

“It is time to support reality, and economic reality has to be installed. If in the face of this crisis, we install the proper reality, if we place value on that which has real value, the population, the future populations, then we don't have a problem. Then the gates of prosperity will open sooner or later. The problem in economies is when economies are being destroyed, as with our nation today, by the hand of the British and their Wall St. types.

“If you look at it the way I look at it, we have the gates of prosperity looking at us. But we've got to maintain them—that's the difference.”

                                                                                                                                                                                                                                                                                        

SUPPORTING MATERIAL


“Man in the Universe” is the Destiny of Mankind

by Kesha Rogers

There, in the stars, lies the long awaited Age of Reason, when our species sheds at last the cultural residue of the beast. – Lyndon LaRouche

In less than three weeks the most critical international conference since the inauguration of President Donald Trump – the Beijing Belt and Road summit – will convene. On May 14 and 15, the leaders and heads of state from twenty-eight nations will gather, joined by representatives from one hundred and ten countries, industry leaders, business leaders, and others. It has already been announced that Russia’s President Putin will be the highest guest of honor at the conference.

During the last three years, an invitation has been repeatedly extended to the United States to take up the offer of Chinese President Xi Jinping for “win-win” cooperation, to join in the great economic development perspective of the Belt and Road, for the benefit of all nations involved. This offer was first made to former President Obama in 2014, but was summarily rejected by the British-run Wall Street stooge who was then occupying the White House. Obama chose geo-political confrontation over working with China and other nations for the good of mankind.

Now a new opportunity has presented itself. President Trump has expressed serious interest and already taken initial steps toward developing a friendly working relationship with China, as was demonstrated in his recent discussions with President Xi in Mar-a-Lago, Florida. Again, the offer of “win-win” peaceful cooperation has been put forth, this time to President Trump. The opportunity now before the United States is very real. Were America to seize this opportunity, the murderous banking and financial looting policies of London and Wall Street might be replaced with a future of expanded economic opportunity, peace and scientific progress. Those are the implications for accepting China’s offer to join in a commitment to the common aims of mankind through “win-win cooperation.” Were President Trump to announce his intention to attend the Belt and Road conference in May, this alone would be a singular action that could well shift the entire global situation.

Not least in importance, by opening up a greater collaboration with the nations of the Belt and Road, a great impetus will be delivered and a greatly enhanced potential will be unleashed for joint efforts in science, particularly cooperative work toward the exploration and development of space. With full U.S. participation, a leap for all of mankind in space exploration becomes immediately and rapidly possible.

The Optimism of Space

On Monday, April 24, President Trump spoke with astronauts on the International Space Station (ISS). He was joined in the oval office by his daughter Ivanka and astronaut Kate Rubins, and together they spoke with NASA ISS Commander Peggy Whitson and Col. Jack Fisher. The dialogue between the ISS and the President was broadcast live into hundreds of class rooms and space facilities around the United States and was streamed and viewed world-wide as well. The President honored Commander Whitson for her great achievements as the first female commander of the ISS, as well as having spent more time in space than any other American astronaut. Their discussion touched on several topics, including a report from Whitson about the need to understand how microgravity works in space and how it effects the human body. She also reported that they are studying the question of long-duration space missions and the technological advancements that will be required. There are currently over two hundred scientific experiments ongoing aboard the space station.

Col. Fisher stressed the critical importance for international cooperation in space exploration. He talked about his trip to the ISS aboard the Soyuz with his Russian counterpart, veteran Cosmonaut Fyodor Yurchikhin. Col. Fisher said, “The international space station is, by far, the best example of international cooperation and what we can do when we work together in the history of humanity.” Both American astronauts were explicit concerning the optimism and inspiration which they have taken from their participation in this mission. This was demonstrated most beautifully by Col. Fisher’s when he said, “I would say to all the students that are watching, the time to get excited is now. If you aren’t studying science and math, you might want to think about that because our future in the stars starts now.... And we’re going to find a permanent foothold in the stars for humanity if we do that.”

The Role of Visionary

On March 25 of this year the Schiller Institute extraordinary conference, in Berlin, Germany, to honor the one hundredth anniversary of the great space pioneer Krafft Ehricke. Under the banner of “Krafft Ehricke’s Vision for the Future of Mankind,” Ehricke’s prime thesis that there are no limitations to the progress of mankind in the universe was celebrated and discussed. As if a divine hand had intervened, on the very same day of that conference, President Trump gave his truly inspiring national address in which he declared, after the signing of the NASA authorization act, “With this legislation, we renew our national commitment to NASA's mission of exploration and discovery. And we continue a tradition that is as old as mankind. We look to the heavens with wonder and curiosity.”

If we are to take up this challenge today it is of paramount importance that every American fully grasp the critical importance that this effort, on behalf of all mankind, is the necessary future. It must also be a shared commitment. All nations – all of humanity – shall benefit from the cooperation among nations for the peaceful use and development of outerspace. This is the ultimate “win-win” solution for all nations. This can be realized through the application of what Lyndon LaRouche has termed “Crash Programs,” i.e., “the tight integration of the most advanced, most fundamental scientific research with the production and development of new technologies in a general way, such that there is no organizational separation between the most fundamental scientific research and production in general.”

The Time to Act

Many initiatives are already underway. On Saturday, April 22, China celebrated its second annual national space day by carrying out the docking of the Tianzhou 1 supply ship docking with China’s Tianzhou 2 space lab, 240 miles above the earth. Two days later China celebrated the anniversary of China’s first space satellite on April 24, 1970, on the very same day that President Trump spoke with the astronauts aboard the international space station

A full participation by the United States in the upcoming Beijing Belt and Road summit would have the immediate effect of advancing this progress dramatically. This is just what is needed. A new future beckons, one wherein the legacy of war, zero-growth and cultural decay will become a memory. Bold action now will make the difference.



Why Is Korea Not Reunified?

by Michael Billington

There is no legitimate reason why Korea has not already been reunified, or why there there must now be a festering crisis over North Korea, threatening to spark a war that would devastate most of Asia and could possibly provoke a global nuclear war. The overtly British assets in the White House over the past 16 years--George W. Bush, Dick Cheney, and Barack Obama--intentionally created the crisis, not because of any actions by North Korea, but in order to provoke confrontation or even war between the United States and China, to sustain the British division of the world into East against West. Likewise, we see the desperate effort by the British today to stop President Trump's intended cooperation with Russia--using British-manufactured crises in Ukraine and Syria aimed at maintaining U.S.-Russia antagonism and possible war.

As this article will demonstrate, the foundation for a peaceful resolution to the Korea conflict--including ending North Korea's nuclear weapons program--was firmly established in 1994, and was functioning reasonably well until the Bush-Cheney White House shut it down unilaterally, based on lies of the sort later made famous by Tony Blair's fabrication of Saddam Hussein's supposed weapons of mass destruction. Subsequent steps taken by Russia, China, Japan, and both North and South Korea, nearly saved the peace process, and set the pace for a peaceful reunification of the Koreas. Again, however, Bush, Cheney, and then Obama intervened to crush that effort, in favor of confrontation and military build-up for war.

The Agreed Framework

North Korea had been a member of the Non-Proliferation of Nuclear Weapons Treaty (NPT) since 1985, but the International Atomic Energy Agency IAEA) believed in the early 1990s that Pyongyang was hiding some quantity of plutonium (produced at its graphite-moderated nuclear reactor) from IAEA inspectors. A back-and-forth took place with the IAEA and the Clinton Administration, leading to a serious threat from Washington, then represented by Clinton's Defense Secretary William Perry, that a military strike was being planned to take out the Yongbyon nuclear plant which produced the plutonium.

Former President Jimmy Carter then made a personal trip to North Korea and met with Kim Il-sung (the supreme leader of North Korea from the time of its creation after World War II), resulting in an agreement to reach a deal with Washington.

In the resulting ``Agreed Framework'' of October 1994, North Korea agreed to shut down the 5 megawatt (MW) plutonium-generating nuclear plant and stop construction on two others of 50 MW and 200 MW, and the United States and South Korea would provide a 1,000 MW light-water nuclear reactor that would not produce weapons-grade plutonium. Oil would be provided to the North until the new nuclear reactor came on line. Most important, talks toward normalization of relations would take place immediately, and the United States committed to neither use nor threaten to use nuclear weapons against North Korea while the talks were underway (the Korean War of the 1950s never officially ended--an armistice was signed, but never a peace treaty). Both sides agreed that the Korean Peninsula, North and South, would remain free of nuclear weapons. The IAEA would make routine inspections of the North to confirm compliance.

In 1998, Kim Dae-jung was elected President of South Korea. He had been a leading opponent of the conservative governments in Seoul, was imprisoned several times, and had even been condemned to death at one point. But circumstances changed, and he was elected. He moved immediately to implement a ``Sunshine Policy,'' opening up relations with North Korea. In 2000, he made an historic visit to North Korea and met with supreme leader Kim Jong-il, who had succeeded Kim Il-sung after his father's death in 1994, soon after meeting with Jimmy Carter. Dramatic motion toward peace and cooperation on the Korean peninsula was nearly assured.

Former Defense Secretary Perry has just written, in an April 15 article in {Politico} magazine, that during Clinton's second term, he and others were negotiating a further deal with Pyongyang aimed at a long-term solution for peace on the peninsula. ``With allies in South Korea and Japan,'' Perry wrote, ``we discussed a bargain that offered a highly desirable outcome: normalization of relations with North Korea in exchange for its giving up its quest for nuclear weapons. We were tantalizingly close to an agreement, including a presidential visit to Pyongyang, when the clock ran out on Clinton's term.''

What happened next was one of the most blood-thirsty and insane acts in history. George Bush's Secretary of Defense Colin Powell, who clearly had more sense than his boss, openly declared on March 6, 2001 that the new Administration intended to ``engage with North Korea to pick up where President Clinton left off. Some promising elements were left on the table and we will be examining those elements.'' But the very next day, President Bush--under the influence of his controller, Vice-President Dick Cheney, and with support from Defense Secretary Donald Rumsfeld and Rumsfeld's deputy Paul Wolfowitz--snubbed the visiting South Korean President Kim Dae-jung, announced that there would be no engagement with ``dictator'' Kim Jung-il (sound familiar?), and essentially scrapped the entire Agreed Framework.

Cheney, Rumsfeld, and Wolfowitz were, of course, the team of neoconservatives that gave us the war on Iraq on false pretenses, based on Tony Blair's lies, unleashing the destruction of Southwest Asia.

The result of this insanity can be seen today--North Korea now has an estimated 10-20 nuclear weapons. This should not be seen as a terrible blunder by the neocons: It must be seen as their intention. As long as North Korea could be presented as a threat, the United States' expansion of military power in a ring around China could be maintained and expanded. The British imperial division of the world, East against West, could be sustained.

Progress Without British/U.S. Support

President Kim Dae-jung was undaunted in his pursuit of the Sunshine Policy towards North Korea. At the time, Lyndon LaRouche and representatives of his movement were meeting regularly with people in and around Kim Dae-jung's administration, promoting the idea initiated by LaRouche in 1992 called the ``New Silk Road.'' The concept, following the collapse of the Soviet Union, was that a series of economic development corridors connecting Europe and Asia through high-speed rail lines--passing through Russia and the Central Asian republics--would create the conditions for ``peace through development,'' uniting former adversaries in mutually beneficial infrastructure and investment projects. From the beginning of this initiative, LaRouche identified the New Silk Road as proceeding from ``Pusan to Rotterdam,'' noting the importance of resolving the conflict on the Korean peninsula through mutual development between North and South Korea, together with Russia, China and Japan.

In 2002 this effort nearly achieved success, when the two Koreas opened the gates dividing North and South, began clearing the land mines on both sides of the Demilitarized Zone (DMZ), and began rebuilding the severed rail connections between North and South.

The September 27, 2002 issue of {EIR} carried an article by {EIR}'s Kathy Wolfe, who had been organizing for LaRouche's ideas in South Korea, which read:

"At 11 a.m. on Sept. 18, North and South Korea cut open the DMZ barbed-wire fences which have divided them for 50 years, in ground-breaking ceremonies to rebuild the ``Iron Silk Road''--the trans-Korean rail and road links severed since the Korean War.

"In the west, where the Seoul-Pyongyang Kyongui line is being rebuilt toward China, South Korean soldiers unlocked the ten-foot-high fence that runs the 250-kilometer length of the DMZ, at Dorasan Station in Paju, as thousands applauded. Simultaneously, 14.2 kilometers to the north, North Korea opened its fence at Kaesong Station. On the peninsula's east coast, where the Donghae-Wonsan line is being rebuilt toward Russia's Vladivostok, North Korean Prime Minister Hong Song-nam, Railway Minister Kim Yong-sam, and 3,000 guests cut the north fence of the DMZ at Onjong-ri at the foot of Mt. Kumgang (Diamond Mountain). Some 27 km to the south, South Korea opened its east coast fence in Kosung at the Unification Observatory, as crowds gazed north toward the revered Diamond Mountain.

"At all four points, ceremonies with fireworks and music exploded. ... They joined a chorus singing the emotional ``Our Wish Is Unification,'' as a train decked with a unification flag and flowers rolled slowly toward the fence where the rails end....

"In more ceremonies on Sept. 19, construction began: South and North Korean soldiers simultaneously entered the DMZ at all four points for mine-clearing operations. Near Dorasan, 50 soldiers with live ammunition and 50 engineering troops followed a German-made mine-sweeper along the rail lines in a massed procession of trucks, backhoes, bulldozers, and an ambulance."

The two Kims, from the North and the South, also set up an industrial complex in the northern city of Kaesong, near the border; South Korean companies set up factories with North Korean employees, benefitting both sides and setting a course for closer cooperation. They also arranged for family visits; members of families long separated by the division of the country after World War II were able to visit each other.

Other stirrings toward peace had taken place just days before these events, when Japanese Prime Minister Junichiro Koizumi travelled to Pyongyang on September 17, 2002, to meet with Kim Jong-il. The two issued full apologies to each other--Japan for its occupation and annexation of Korea from 1910 to 1945, and North Korea for the abduction of eleven Japanese citizens. They also agreed to formal diplomatic normalization talks, to begin in October.

Russian President Vladimir Putin, who had held several summits with both Kim Jong-il and Koizumi leading up to the meeting, offered his full support for the New Silk Road process.

At the same time, China initiated six-party talks among the two Koreas, Russia, China, Japan, and the United States. It was hoped that the rail connections linking South Korea to China and Russia through North Korea would be up and runnng by the end of 2003, and that the road to reunification would lie just ahead. It was not to be.

Subverting the Six-Party Talks

The Bush Administration launched its war against Afghanistan in 2002 and another against Iraq in 2003. Over the next fourteen years, Bush and Obama would keep the United States in a state of permanent warfare, targetting the three secular nations in Southwest Asia--Iraq, Libya, and Syria--none of which was Islamist, while all were firmly anti-terror. These two Anglophile presidents also sustained the longest war in United States history, continuing still today, in Afghanistan.

In his 2002 State of the Union Address, as Japanese and South Korean leaders were meeting with North Korean leaders and preparing joint development projects, George W. Bush pronounced that North Korea was part of an ``Axis of Evil,'' together with Iraq and Iran.

As former Secretary of Defense Perry said in the article quoted above, the North Korean leadership may be reckless, but it is ``not crazy or suicidal.'' It would never use its nuclear weapons offensively, he noted, since it knows ``the American response would bring death to the leadership and devastation to its country.'' To that must be added that Pyongyang is fully aware of what happened to both Iraq and Libya, which gave up their nuclear weapons programs voluntarily, only to then be bombed mercilessly, their leaders killed, and their countries left in the hands of warring terrorist factions. North Korea will never give up its nuclear weapons program unless it has normalized relations with the United States and has obtained a non-aggression pledge. This is in fact what Perry recommends to President Trump.

As in Southwest Asia, so also in East Asia: Bush and Obama played along with the six-party talks, but found every excuse to claim--almost always falsely--that North Korea was cheating. On this false basis, they imposing more and more sanctions while deploying more and more military forces into the ra, North Korea, and three leading companies in the South--Hyundai Merchant Marine, a logistics and container freight company; Posco, the largest South Korean steel ail corporation. The consortium sent Russian coal by rail to a new port structure built in the North Korean city of Rason, where it was shipped by Hyundai Merchant Marine to South Korea, then by Korail trains to Posco steel mills. This was in fact the model for a system of state-industry cooperation which could have led to a ``peace through development'' solution.

Then, in January 2016, after the fourth North Korean nuclear weapons test (a test that everyone knew would happen eventually for the reasons given above), President Park Geun-hye capitulated totally to the Obama policy. Not only did she order the closure of the consortium of North Korea, Russia, and the South Korean corporations, but she even closed the Kaesong Industrial Complex, which by this time was employing more than 50,000 North Koreans in 123 South Korean companies.

This left virtually no ties between North and South--political, economic, or social. While the legal removal of President Park from power through impeachment was not specifically over this policy, but over corruption issues internal to South Korea, the impeachment was nonetheless aided by her obvious failure, and weakness, in letting Obama's policies poison Seoul's relations with China, Russia, and North Korea, creating the threat of a war provoked by the United States--a war that would be devastating to South Korea.

The election to replace Park will be held May 9, creating the potential for a new approach.

Trump Rejects the Imperial Divide

The Trump campaign made very clear that he intended to be friends with Russia, much to the horror of London and the warmongers in both the Democratic and Republican parties. Although he was critical of China's economic policies during the campaign, he has now established a close relationship with Xi Jinping, including their personal meeting in Florida in April.

Trump's bombing of a Syrian airbase on April 6 went against his pledge to end Bush's and Obama's wars of aggression against nations which were no threat to our own and a clear violation of international law. But it was done on the basis of lies provided by British intelligence, claiming to have proof that the Assad government was responsible for a chemical weapon attack--a total absurdity.

Similarly, British Foreign Secretary Boris Johnson has been screaming for war against Syria and goading Trump to prepare for a preemptive attack on North Korea. Even if North Korea's nuclear weapons were destroyed in a first strike, its conventional weapons could, and likely would, totally destroy the beautiful city of Seoul, only 35 miles from the well-fortified border, and other sites in South Korea.

Although it would be an act of lunacy to launch such an attack on North Korea, and it is highly unlikely that Trump could be induced to do so, there will be no solution to the conflict until the British are acknowledged as the source of the crisis, aiming to prevent President Trump from carrying out his expressed intention to bring the United States into a new relationship with both China and Russia.

The Russian Deputy Permanent Representative to the UN, Vladimir Safronkov, responded on April 12 to a typically virulent rant against both Syria and Russia by the British Permanent Representative Matthew Rycroft, CBE (Commander of the Order of the British Empire), in a manner which profoundly located the fundamental intention of the British Empire:

"The essence is,'' Safronkov said, "and everyone in the UN knows this very well, is that you are afraid, you have been losing sleep, over the fact that we might be working together with the United States, cooperating with the United States--that is your fear. You are doing everything to make sure that this kind of cooperation be undermined.''

Safronkov's statement is accurate. He is perhaps the first world leader to identify what Lyndon LaRouche has identified for more than 50 years: The British will stop at nothing to prevent the United States from breaking the imperial divide between West and East and creating with Russia and China the basis for a new paradigm based on the common aims of mankind.

Now is the time to make that break, to establish a new era of mankind based on development, and end the British Empire once and for all.


                                                                                                                                                                                                                                                                                        

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