A New, Successful Economic System Has Been Created; America Must Change To Join It

June 5, 2017
President Trump on June 1st as he announces the withdraw from the Paris Climate Treaty.

The Paris "Climate Agreement" from which President Donald Trump has withdrawn the United States, is not the "world order," however much major media in the United States and Europe want everyone to bow down before it. Life without carbon is not the way forward for humanity or the planet. Human life moving rapidly out into the Solar System, is.

The really successful new world order being consolidated is an economic and scientific cooperation system: the New Silk Road. This is the accelerating investments and design of transformative new infrastructure projects and scientific advances, being knitted together at China's initiative, all across Eurasia, Africa, and planned in South America as well. "The Marshall Plan times 20," some call it. It is an order more and more actively supported by Russia and other major nations, as well as many others, because it is actually triggering economic progress, productivity, new employment, to the mutual benefit of all nations participating. As the "Silk Road Lady," Schiller Institute founder Helga Zepp-LaRouche says, it is becoming the World Land-Bridge. Thus it is open to the United States to join, rebuilding but also greatly expanding and modernizing its own economic infrastructure and industry.

President Trump is absolutely right in his intention that the United States cooperate fully with China and Russia. And in his intention that the United States should again become a great industrial power, a great scientific and technological power, a great space exploration power collaborating with the other space-faring nations.

"These are intentions — what are his results?" say the commentators. That question should be directed to the American people. China and other Eurasian powers are building high-speed and mag-lev metro systems, exploring the Moon including its far side, planning for Mars, planning finally to span Africa and South America with high-speed rail and power networks, building small mobile floating nuclear plants....

Do Americans, dealing with public infrastructure breakdown, economic despair, and opioid epidemics, believe that these things can be done? That is the real question regarding President Trump's intentions, and results.

It is the American people who have to get Glass-Steagall through Congress to stop Wall Street's strangling the U.S. economy. The American people have to demand "American System economics"; immediately a national bank for infrastructure. More Americans are trying to become NASA astronauts than ever before. But it is the American people who have to demand a rapidly expanded space exploration program and new technologies around fusion energy.

America must join the New Silk Road. President Trump has an intention — forget his results thus far — this is for the American people to do if they want the United States to be great again.



Paris Agreement Withdrawal, While Needed, Is Not a Growth Plan

EPA Administrator Scott Pruitt on "Fox News Sunday," talking about President Trump's withdrawal from the Paris Agreement, said that the U.S. economy had added 50,000 jobs in coal/oil/gas since January, including 7,000 in May. Pruitt said it is necessary that all power-source industries be stimulated, and that there must be fossil fuel reserve stocks available at power plants in case of interruptions to the grid from accidental or strategic (terrorist) causes.

Fossil fuel industry employment has grown since January with a higher oil price; but the overall U.S. employment picture has remained as stagnant as in Obama's no-growth last year. Manufacturing employment has dropped, construction employment is flat for a year. The U.S. economy's year-to-year job growth is now below 2.1 million, compared to 2.8 million at the start of 2016. More than 600,000 Americans were reported leaving the labor force in May.

The Association of General Contractors (AGC), which is calling for a dramatic new national infrastructure investment program, reported June 2 that both manufacturing construction and public construction are falling. "Manufacturing construction declined 1.9% for the month [of May] and 9.4% year-to-date.... Public construction spending tumbled 3.7% from the prior month and 5.25 for the first five months of 2017. The biggest public segment — highway and street construction — also dropped 3.7% for the month and decreased 3.2% year-to-date. Among other major public infrastructure categories, spending on transportation facilities such as transit and airport construction declined 4.6% year-to-date; spending on sewage and waste disposal plummeted 23.55 and on water supply, 10.9%.

"Association officials urged Congress and the Trump administration to identify new, long-term and sustainable ways to pay to improve and expand aging public infrastructure. They said a budget proposal released last week by the administration should start a debate about the best way to fund and finance new public works projects." That comment came from Stephen E. Sandherr, the AGC's CEO.

Trump 'Infrastructure Week' Calls for Fight for LaRouche Four Laws

The Trump White House is beginning this week to disclose infrastructure plans, informally treating it as a first "infrastructure week" of Donald Trump's presidency.

The plans the President will start to discuss do not appear workable. Rather, they call for the kind of fight from the American people, indicated by the "Four Laws To Save the Nation" formulated in June 2014 by EIR Founding Editor Lyndon LaRouche — starting with restoration of the Glass-Steagall Act, and the creation of a Hamiltonian national bank for infrastructure and manufacturing.

It is crystal clear, after the 100-nation Belt and Road Forum summit in Beijing May 14-15, that new infrastructure platform investments require national banks and similar national credit institutions, both to provide credit, and to conclude multi-national joint ventures. The United States must create such a national credit institution and join in the New Silk Road. Recent proposals from Democrats for direct Treasury borrowing of up to trillions of dollars to form capital capital budgets, could start discussion by the President with, above all, China and Japan; but they are only a start.

Trump will hold an event at the White House Monday with Rep. Bill Schuster (R-PA), proposing to privatize the air traffic control system from the Federal Aviation Administration (FAA) to a non-profit corporation. The aim of this is an infrastructure platform upgrade: To switch from land-based radar control of domestic flights to GPS-system control, used in Europe, and supposed to make flights more direct and faster. This plan would shift funding from the current fuel/ticket taxes to fees on the airlines.

On Wednesday, June 7 Trump will go to the Ohio River on the Kentucky-Ohio border to discuss waterways infrastructure. Thursday, June 8, he will meet with majors and governors; and Friday, June 9, visit the Transportation Department for remarks on rail and road infrastructure.

Trump's promised plan to put $1 trillion into new infrastructure over ten years has disappeared, and so has the Ross-Navarro infrastructure bank plan, unworkable to start with. A May 23 outline from Transportation Secretary Elaine Chao called for Federal spending of $200 billion over ten years, and getting states and municipalities to spend more. This will not be supported by mayors and governors.

Trump has now promised not to link infrastructure planning to "tax reform" and that could mean that the Ross-Navarro "infrastructure bank" plan — linked to tax credits — may not be presented. 

Solution for New York Transportation Collapse: World Land-Bridge

The rail transportation network of America's number-one urban region, the New York Metropolitan Area, is near collapse.

Only months ago, when California's Oroville Dam — the highest in the nation — began to suffer catastrophic damage which threatened disastrous flooding, the Homeland Security Department and other agencies mobilized with round-the-clock, well-equipped workforces to repair the dam.

But in New York, an entire public transportation system, a century old and completely overloaded, may simply break down, threatening great harm to the American economy and the people of the region.

New York Gov. Andrew Cuomo is forming a Task Force to attack the metropolitan area transportation breakdown, whose 14 members (below) include two current and one former Congressmen.

Cuomo's own proposals center on changes of management of Penn Station (state takeover and design-build-repair); a private contractor to manage Amtrak operations at Penn Station; combining Penn Station with the adjacent Farley Train Hall for Long Island Railroad traffic; and eventually, the building of a new freight-rail tunnel under the Hudson River, the Gateway Project which is considered a national priority.

Also, "Governor Cuomo is proposing The MTA Genius Transit Challenge, a competition to re-imagine the solutions to the systemic challenges with the subway system."

Rail transport expert Hal Cooper, who has created designs for many of the projects of the Schiller Institute's "World Land-Bridge" and now China's "Belt and Road Initiative," has already mapped out a New York area solution in detail. Cuomo's proposal for this massive heart failure is to concentrate solely on the heart — Penn Station. But Cooper's plan is like a skilled surgeon's "quintuple arterial bypass" to make all the New York area's main rail networks open and continuous with each other; and to lead out potentially into high-speed rail networks going north to New England and New York, south toward Washington, and west to the Midwest — and to network the region's three major airports.

But whether this precise plan, and/or others being reviewed by EIR, this will have to be a national priority crash program for the New York area. It will take many billions in Federal credit — a national bank — along with state funds. And it must be done quickly, using the most advanced rapid transit technologies wherever possible across the system.

That means doing this crash rebuilding program jointly with the national "champion" companies in building high-speed and metro transit systems. It should be a Belt and Road Initiative project with China.

Governor Cuomo's task force members are: Matthew J. Driscoll, commissioner, New York State Department of Transportation; Rep. Peter King; Kevin Law, president, Long Island Association; real estate magnate Richard LeFrak; Joe Lhota, senior vice president of NYU Langone Medical Center; Rep. Jerrold Nadler; former Congressman Charles Rangel; Steve Roth, CEO of Vornado Realty Trust; John Samuelsen, president, TWU Local 100; Tom Wright, president, Regional Plan Assocation; Carl Weisbrod, senior advisor, HR&A; and members to be nominated by New York City, Nassau and Suffolk Counties.