THE LEAD

                                                                                                                                                                                                                                                                                        

A Needed Burst of Optimism

May 21, 2018
President Trump and President Xi Jinping in Germany, July 8, 2017

Direct collaboration between President Donald Trump and President Xi Jinping at the end of this week pulled China and the U.S. back from the brink of a highly dangerous potential trade war between the two countries, a scenario devoutly desired and orchestrated by the British Empire and their free-trade acolytes in Washington. The problem is not over, but a collaborative course has been struck for a win-win approach, and further negotiations will now proceed.

Similarly, the extremely dangerous situation on the Korean Peninsula, which the British have also been trying to use as a trigger for a strategic showdown between the U.S. and Russia and China, has instead moved in the direction of cooperation for a peaceful resolution based on combined economic development in the region. In this case it was again the direct Trump-Xi channel that was decisive.

As both cases demonstrate, the worst of strategic dangers can be transformed into "the best of all possible worlds," when there is the political will to do so—as Helga Zepp-LaRouche has stressed.

Putting out such strategic fires set by the British arsonists is crucial, but a deeper problem remains. It is necessary to reverse the underlying shift into a paradigm of economic collapse and cultural pessimism in the West. Consider the report issued earlier this week by the Centers for Disease Control and Prevention (CDC), that the fertility rate in the United States has fallen to a 40-year low, with just 1.76 children per woman of childbearing age. Even the total number of births dropped in 2017, "down 2% from 2016 and the lowest number in 30 years," the CDC reported. This goes hand-in-hand with earlier reports of rising death rates over recent years in nearly all segments of the U.S. population, principally from causes related to the culture of despair that has spread across the country since the assassination of JFK: drug overdoses, suicides, and so on.

One is reminded of the similar cultural pessimism that spread across Europe during the period of the 14th century Black Death. Not only did death rates soar as a direct result of the bubonic plague, but marriage and birth rates fell, as despair over the future, over man's ability to conquer such problems, seized control of society.

Contrast that human condition, with the excitement caused by today's news that China successfully launched its Chang'e-4 relay satellite into lunar orbit, as part of its upcoming exploration of the far side of the Moon; or with the optimistic mood shift underway across Africa and every part of the world that has joined with the Belt and Road great projects.

The United States and Europe also require such a burst of optimism. That can only come from establishing a Four Power alliance—with Russia, China and India—as specified by Lyndon LaRouche, for the purpose of ending the British Empire and transforming China's Belt and Road Initiative into a full-scale World Land-Bridge, whose next mission is to take Mankind out into the Solar System.

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SUPPORTING MATERIAL


U.S.-China Reach Agreement on Trade Talks

The U.S. and China issued a joint statement Saturday at the conclusion of the talks between the Chinese delegation (headed by Vice Premier Liu He) and the U.S. side (headed by Treasury Secretary Steve Mnuchin). The official statement is short on specifics, but the tone is very positive and there is a heavy emphasis on the personal working relationship between Presidents Xi and Trump, as the key to the accord. Prior to the conclusion of the talks, the Chinese had made some significant concessions to make sure things worked out: they stopped their investigation of U.S. sorghum dumping (i.e., U.S. sorghum exports to China are resumed), and they approved the purchase of Toshiba's computer memory chip business by the U.S. "venture capital" firm, Bain Capital (co-founded by Mitt Romney).

"There was a consensus on taking effective measures to substantially reduce the United States' trade deficit in goods with China," the White House reported. China agreed to "significantly increase purchases" of U.S. goods and services, especially in agriculture and energy, although no specific numbers were announced for reducing the U.S. trade deficit with China. The White House also announced that a U.S. team will travel to China shortly to continue ironing out the details.

Liu He's comments to the media on May 19, as reported by Xinhua, were that "China and the U.S. have reached consensuses on economic and trade issues, pledging not to engage in a trade war and stop slapping tariffs against each other, which are the most remarkable fruits of the consultations." Liu further characterized the talks as "positive, pragmatic, constructive and productive, Liu explained that the most important reason for the achievements is the important consensus reached previously by Xi and his U.S. counterpart Donald Trump, and the fundamental cause is the needs of the two peoples and the whole world.... Liu said that it not only benefits the two nations, but also helps support the stability and prosperity of the global economy and trade."

While praising the results, Liu cautioned that, while the deal was a "necessity," at the same time "it must be realized that unfreezing the ice cannot be done in a day, solving the structural problems of the economic and trade relations between the two countries will take time." Liu also commented that "the two countries should properly handle their differences through dialogue and treat them calmly in the future."

Xinhua reported that the two countries also agreed to "strengthen their cooperation in mutual investment and intellectual property protection"—a major issue raised by the U.S. side.


Global Times: China-U.S. Trade Agreement "Followed the Win-Win Principle"

Sunday's Global Times carries an editorial which is very positive on the U.S.-China trade agreement, as the headline indicates: "China, U.S. Reach Win-Win Victory with Trade War Truce." According to the editorial, the joint statement says the two countries will substantially reduce the trade deficit, including by "expanding trade in manufactured goods and services." They report that "both nations fought fiercely for their own country's interests. In the past two and a half months, the situation was close to reaching disastrous conditions. Even until the very last moment before the final agreement was made, both countries did not give up." And there will be tough sledding ahead: "Now both nations need to figure out how to achieve this balance."

Overall, "this agreement signed by China and the U.S. today has followed the win-win principle. The U.S. will have the opportunity to reduce its trade deficit with China, while China will achieve the consistent purchase of U.S. goods to benefit the devleopment of the country and its people's life."

Predictably, the anti-China lobby in the U.S., including top Democrats, is not pleased. For example, Senate Minority Leader Chuck Schumer attacked the agreement, saying that it fell short on protecting U.S. intellectual property rights and on opening China up to certain U.S. exports. "The joint statement has nothing specific on those fronts."

                                                                                                                                                                                                                                                                                        

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