E.I.R.STRATEGIC ALERT
WEEKLY NEWSLETTER
Volume 35, No. 26, July 1, 2021
The British Risk War with Russia
to “Make a Point” in the Black Sea In a military provocation which former British Ambassador Craig Murray described as “evidence of lunacy,” the HMS De fender, a British navy destroyer, entered Russian territorial waters in the Black Sea, near Cape Fiolent, at 11:52 AM on June 23. The Russian Black Sea fleet immediately radioed a warning. After waiting approximately 15 minutes for a re sponse, and receiving none, a Russian border patrol ship fired warning shots. Nine minutes later, bombs were dropped in the path of the ship, which then turned away.
While the Russians declared this a provocation, the British Ministry of Defence (MOD) first denied any shots had been fired, calling it an “innocent passage through the Ukraine wa ters.” A spokesman for Prime Minister Boris Johnson then defended the passage, declaring, “The UK does not recognize Russia’s claim to Crimea,” implying that the chosen path of the ship had not been so innocent.
Moreover, a BBC reporter on the ship, Jonathan Beale, con firmed that warning shots had been fired, adding that the destroyer’s mission was “a deliberate move to make a point to Russia.” And what was that point? According to an MOD source, it was to assert “its right to freedom of navigation in international waters.”
That this was a planned provocation was revealed by the amazing discovery a few days later of MOD documents at a bus stop in Kent. The documents detailed the planned pas sage chosen, and showed there was an expectation that Rus sia might respond “aggressively.” One can assume that this discovery was not accidental, but an attempt to probe the likely Russian military response to future provocations. Rus sian Foreign Ministry spokeswoman Zakharova mocked this discovery by quipping, “Why do we need ‘Russian hackers’ if there are British bus stops?”
But the Russians did not take this lightly, with warnings from various spokesmen, including top military leaders, that next time, the ships passing through Russian waters will be hit.
In remarks made a few hours before the incident began to the Russian International Security Conference, President Pu tin indicated that operations would likely be launched to un dermine the small, but significant progress made during the Biden-Putin summit eight days earlier. He opened his speech by warning that “geopolitical processes are becoming increas
ingly turbulent despite isolated positive signals. The erosion of international law continues as well.”
It should not be precluded that further “probes” will occur. On June 28, NATO launched its Sea Breeze 2021 naval exer cises in the Black Sea, with more than 20 member countries plus Ukraine -- which is not yet a member of the alliance. They are to continue until July 10. In his statement which con demned the “lunacy” of the HMS Defender incident, Ambas sador Murray pointed to the obvious, that there is no cause for British warships to be cruising in the Black Sea: “The UK needs to lose its imperial ambitions,” he added.
In sum, last week’s provocation confirms that the “breath ing room” created by the Geneva summit will disappear, un less the U.S. breaks definitively with British geopolitical impe rial plans.
EU Hardliners Sabotage Initiative
for an EU-Russia Summit
In the early morning hours of June 25, the Franco-German proposal for an EU summit with Russian President Putin was shot down, mainly by Poland and the Baltic countries. The proposal had just been made public on June 23, apparently to the surprise of most of the other EU member states. Angela Merkel explained the next day, in a speech to the Bundestag, that while she welcomed President Biden’s summit with Vladi
mir Putin, “the EU must also create formats for talks”, adding that “there is no other way to resolve conflicts”. Poland and the three Baltic countries do not agree. The final statement of the EU summit, which was not hammered out until 2am, nonetheless papered over the open divide on Russia with new demands Threatening new economic sanc tions should Moscow persist in “malign, illegal and disruptive activity.” the statement read: “The European Council expects the Russian leadership to demonstrate a more construc tive engagement and political commitment and stop actions against the EU and its Member States, as well as against third countries.”
After the defeat of Chancellor Merkel’s joint initiative with Emmanuel Macron, she told reporters “I personally would have wished for a more courageous step but this is also OK and we’ll keep working.” In response to the EU communique, Russia’s foreign ministry noted that Europe had been “held hostage by hardliners”.
The question now is: what will France and Germany do, given the defeat of their proposal for dialogue with Russia. President Macron in particular would do well to conclude that France should pursue diplomacy independently with Rus
sia, especially since no major initiatives are to be expected from the outgoing German Chancellor. However, if the new Chancellor elected in September is the CDU candidate Armin Laschet, which seems likely at this point, he is reportedly much more open than Angela Merkel to reviving cooperation with Russia.
Emmanuel Macron should stick to what he already said after the EU Summit on May 26, telling reporters: “With Russia, the policy of progressive sanctions on frozen situ ations is no longer an effective policy... I think that we are at a moment of truth in our relationship with Russia, which should lead us to rethink the terms of the tension that we decide to put in place.”
President Putin Is Open to Dialogue with Europe
The EU leaders’ statement is all the more regrettable as it came only three days after the German weekly Die Zeit pub lished an article by President Putin on the 80th anniversary of the Nazi German attack against the Soviet Union on June 22, 1941. In the article, the Russian President stressed that Russia is “open, despite the past”, for economic, cultural and political cooperation with the Europeans. He noted that at the end of the Cold War, Russia hoped that “Charles de Gaulle’s dream of a single continent -- not even geographically ‘from the Atlantic to the Urals’, but culturally and civilizationally ‘from Lisbon to Vladivostok’– [would] become a reality”.
Instead, NATO has expanded eastwards for three decades now, and the west “actively supported the unconstitutional armed coup in Ukraine” in 2014. Nonetheless, Russia remains “in favour of restoring a comprehensive partnership with Europe”, around the “many topics of mutual interest” they share. (President Putin’s article is available in English at:
http://en.kremlin.ru/events/president/news/65899).
The Great Reset Can Be Stopped
with Glass-Steagall Reform
EIR Economics editor Paul Gallagher has drawn an efficient parallel between the strategies implemented by Hitler’s Fi nance Minister Hjalmar Schacht and the current scheme of central bankers known as the “Great Reset”. At the August 2019 yearly meeting of central bankers at Jackson Hole, Wyoming, that scheme was again discussed as a means of bringing about a “regime change” in financial affairs. For mer head of the Bank of England Mark Carney (currently the UN’s “decarbonization” czar) and Philipp Hildebrand, a for mer head of the Swiss central bank and now vice president of BlackRock, explained how central banks should take over the fiscal powers of governments and manage money flows to the economy, while a worldwide synthetic currency should be created to replace the dollar.
Speaking on the third panel of the Schiller Institute confer ence on June 26 (cf. The report below), Gallagher explained that the first step was then taken when the Federal Reserve, in September, took over interbank lending, and has since then replaced the role of the so-called market in overnight refinanc ing of banks. The stage had been set for the “regime change”
by the large-scale Quantitative Easing carried out by the Fed and the ECB, which resulted in hypertrophic growth of the biggest banks -- but in no growth of credit to the economy. The “Next Generation EU” as well as Joe Biden’s “Green Deal” policies are part of the same scheme.
The precedent for such a central bank takeover is Hjalmar Schacht’s policy, first as head of the German central bank in 1923, and as Hitler’s economy minister a decade later. During the first phase, Schacht ended the refime of hyperinflation by making money very scarce, and imposing brutal economic austerity; in the second phase, he did the exact opposite in order to finance Hitler’s war machine, effectively giving the central bank control over government spending.
That was a central bank “regime change whose purpose was a huge shift in economic activity across the board. In just two years 1933-35, Schacht drove arms production from 2% of Germany’s GDP, to 20% of it. Some other industries – for example, textile and clothing production, agricultural imple
ments, housing construction – were throttled. In the context of that shift began the labor camp system which gradually evolved into the horror of the 20th Century.”
Like Hjalmar Schacht, central banks today are using their money-printing and regulating power to drive a great shift into what they intend to be a $30-40 trillion “green finance” bubble which will get them through a global debt collapse. That is the purpose of the “Great Reset”.
It must be stopped, Gallagher insisted. And the way to do it is to break up the major banks in all nations, by applying the Glass-Steagall criteria for strict bank separation, and to nationalize the central banks to create national credit institu
tions for productivity and productive employment.
China Celebrates On Hundred Years of the Communist Party
The month of July in China is devoted to celebrating the 100th anniversary of the founding of the Chinese Commu nist Party. Of course, the system of “socialism with Chinese characteristics” is very different from western systems, but it is terribly short-sighted to arrogantly dismiss its accomplish ments, and terribly stupid to try and force it into the Anglo American “rules-based order”.
The achievements of the past one hundred years, but par ticularly since the “reform and opening up” under Deng Xiaop ing, have been nothing short of amazing. The launching of three astronauts this month to the core module of the Chinese space station confirms, for example, China’s entry into the realm of the space-faring nations.
At the end of the 19th century, largely due to the depreda tions of the British Empire, which started the Opium Wars in 1840, China was an impoverished country. Its transformation to the present condition of a world power and the veritable engine of global growth, has been largely due to its philosophi cal tradition of Confucianism, which has prevailed since 1978, following the dark period of the “Cultural Revolution”.
From the beginning, the Chinese Communist Party had to face extensive poverty in the countryside with a population that was overwhelmingly rural and agricultural. The right policies were not always adopted, but the emphasis today is on increasing productivity through mechanization and innova
tion. To this day, the first report the party issues is on the conditions of agriculture. And those conditions have improved
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considerably over the past few decades, with China announc ing this anniversary year that they had eliminated extreme poverty in the entire nation, a feat that stands alone in his tory.
And as China developed into a major country, the Chinese did not forget their commitment to the rest of the world, particularly to the developing world, of which they still con sider themselves very much a representative. The launch of the Belt and Road Initiative has changed the nature of life and the perspectives for many developing countries, providing high-speed rail and other infrastructure as the basis for their economic development. Creating a new grid of high-speed transport has also benefited the developed countries of the West by the subsequent increase of trade and communication between East and West. And for Africa and Latin America, Chinese infrastructure investment has been a lifeline out of a continually deteriorating economic situation due to the inter
national financial crisis in the West.
China has much to celebrate in this anniversary year. And so do all those who are independent-minded enough to rec ognize what has been accomplished for the benefit of China and for the the world.
“Whom the Gods Would Destroy”:
Report on the Schiller Institute Conference Political activists, together with scientists, economists, farm ers, public health professionals, and retired military and intel ligence officers came together in the June 26-27 International Schiller Institute Conference to analyze the existential crisis facing mankind today, and deliberate on the means required to mobilize the world behind a new paradigm, free of geo politics and Malthusianism, and based on “peace through de velopment.” One after another, these “citizens of the world” expressed their appreciation of the efforts of the Schiller Insti tute and its founder and Chairwoman Helga Zepp LaRouche.
The conference was held under the banner “For the Com mon Good of All People, Not Rules Benefitting the Few.” Mrs. Zepp-LaRouche’s keynote speech was titled “Whom the Gods Would Destroy: War with Russia and China Is Worse Than MAD!” She noted the timely nature of this panel, since the British had just intervened a few days before to sabotage the small, but critical step forward achieved at the Biden-Putin Summit, where the two leaders re-affirmed the principle that “nuclear war cannot be won, and must never be fought” (cf. SAS 25/21) The intentional deployment of a British warship into Russian maritime territory, she declared, is another ex
ample of the British Empire’s effort to draw the U.S. into a military conflict with Russia, and demonstrates how easily a war -- even a nuclear war -- could be sparked by such evil actions.
Zepp-LaRouche went on to review the past half-century of efforts by Lyndon LaRouche and his political movement worldwide to end the Malthusian madness, posing solutions based on uniting the great nations and cultures of the world in a new world order based on the dignity of man, scientific co
operation and aesthetic education. Had her husband been lis tened to, she said, this unraveling global disaster would have been avoided, and it is still the case that any solution requires
listening to the “wise words of Lyndon LaRouche.” She repeatedly emphasized throughout the conference the
concept behind the Committee on the Coincidence of Oppo sites, founded by herself and former U.S. Surgeon General Dr. Joycelyn Elders, that the building of modern public health facilities in every nation is not only necessary to end the pan demic, and prevent future pandemics, an issue for every per son on Earth, but also forces a serious consideration of the other aspects of infrastructure required for modern health, including clean water, abundant energy, and modern means of transportation.
An Alternative to the Unipolar
“Rules-Based Order”
Dr. Andrey Kortunov, the Director General of the Russian International Affairs Council (the leading think tank associ ated with the Ministry of Foreign Affairs), spoke after Zepp LaRouche, on: “Has the Geneva Summit Changed Relations Between the U.S. and Russia?” He observed that expectations for the meeting were low, given the attacks on Russia from the U.S., including from within the Administration, but the agreement to jointly assert that nuclear war could not be won and must not be fought, and the agreement to set up high level discussions on arms control, cyber war, and other is sues, were signs of hope for improved relations. Still, lasting progress will not be possible, he said, without new, innovative ideas, going beyond “conventional wisdom”, such as those dis cussed at the SI conference.
The first panel included a presentation on the view from India by Atul Aneja, the Editor of IndiaNarrative.com, on the need for engagement between India, Russia and China in ad dressing the global crisis. Col. Richard H. Black (ret.), for mer head of the U.S. Army’s Criminal Law Division, spoke on “U.S.-China Relations: A Pathway for War Avoidance and Cooperation,” denouncing the mindless attacks on China from the Congress, media and institutions in the U.S.. He was fol lowed by Ray McGovern, a former CIA Russia expert and co founder of the Veteran Intelligence Professionals for Sanity (VIPS), who analyzed the recent U.S. and British provocations against Russia, which finally caused Biden and perhaps some of his aides to seek the summit with Putin. He insisted in par ticular on the absolute folly of waging a world war today.
The Science of Climate Change
and the Need for Nuclear Energy
Panel 2 of the SI conference was introduced by Jason Ross, a science advisor to the Schiller Institute. He began by noting that in Lyndon LaRouche’s notion of physical economy, the key to economic development and productivity is basic infrastruc
ture, as organized in infrastructure platforms. Today, he went on, “the most central component of an infrastructure platform, is without a doubt, energy. It was the steam engine’s liberation of the chemical energy in coal, transforming it into motion that unleashed the industrializa tion of the world, a new era for mankind in economy overall, and something that led to the expansion of life expectancies by a couple of dozen years. Very, very impressive, extremely powerful, absolutely essential in economic history and in man kind’s history.
“The development of electricity transformed the types of resources that were available to us, our relationship to those resources, the kinds of production that we were capable of
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engaging in, moving beyond motion towards new types, elec tron-beam welding, lasers, and so on.
“The power of the atomic nucleus is still not fully devel oped, not by any means! But it shows us the potential to have power levels that are many orders of magnitude greater than what is achievable through chemically based electric ity or wind or solar panels or that sort of thing. Potentially, nuclear fusion would transform, in a very powerful way, our relationship to the world around us, in a way that would be comparable only to the development of the steam engine, in its scope and in its potential.
“But it is energy itself that is in the crosshairs of what was discussed in Panel 1 as the MICIMATT [an expanded notion of the military-industrial complex to include other components of the ruling financial-intelligence apparatus in the trans-At
lantic world today, i.e., the Military Industrial Congressional Intelligence Media Academia Think-Tank complex]. We are told that the planet is imperiled by the scourge of climate change, brought about by man’s wicked and unchecked use of fossil fuels, churning enormous amounts (we’re told) of carbon dioxide into the atmosphere.
“And that these fossil fuels, which were absolutely essential for expanding the life of human beings by decades, must be phased out, essentially, immediately. And if you don’t agree, well, ‘how dare you!’
“We’re told that the Science, with a capital S, is ‘settled’, that there’s no room for debate on this issue. And even if we don’t understand it, we had better obey its strictures. That’s not how science works. Science is a process, it’s devel
opment, it’s discovery. So, on this panel, what we’re going to be getting into is the coherence between our economic growth, and the development of the biosphere as a whole, the enormous amounts of power that the world requires, and the gaping holes in the supposed science of climate change catastrophism.”
The Ulterior Motives
of the “Global Warming” Hoax
After that introduction by Jason Ross, the first speaker was Megan Dobrodt, the President of the U.S. Schiller Institute, who titled her presentation “Why the Universe Needs More People”. She demonstrated that thesis on the basis of Vladi
mir Vernadsky’s ground-breaking work on the evolution of the planet and cognitive life, and of Lyndon LaRouche’s science of physical economy.
She was followed by an impressive list of international speakers, who refuted the apocalyptic predictions of the “cli mate change lobby” and called for an end to the Malthusian campaign against fossil fuels. The panel featured: • Kelvin Kemm, a South African nuclear physicist and for
mer Chairman of the Nuclear Energy Corporation of South Africa, on “An Engineer’s Approach to Power and ‘Renewables’”aEmanuel Höhener, Consulting Engineer in Energy Sector, Chairman of the Switzerland-based think tank Carnot-Cournot Network on the “Swiss Vote ‘No’ to New CO₂ Law”
• Prof. Augustinus Berkhout, a Dutch Emeritus Professor of Geophysics and President of the Climate Intelligence Group on “The Good News About CO₂”
• Prof. Horst-Joachim Lüdecke, German Physicist and Emer
itus Professor of Saarland University for Technology and Economics on “Climate Cycles and Global Warming” • Prof. Nicola Scafetta of the Department of Earth, Environ mental and Resources Sciences, Università degli Studi di Na poli Federico II on “Why The Climate Models Don’t Work” • Dr. Ben Greenspan M.D., a director of The American Board of Science in Nuclear Medicine; former President of the Society of Nuclear Medicine and Molecular Imaging on an “Introduction to Nuclear Medicine”
• Paul Driessen from the United States, a Senior Policy Advisor of the Committee For A Constructive Tomorrow (CFACT), and author of Eco-Imperialism: Green Power, Black Death on “The Biden-AOC Green New Deal Fraud: Unsustainable, Unaffordable, Eco-Destructive, Carbon-Colonialist”
• Vincenzo Romanello, PhD (Italy), Nuclear Engineer, Re search Center Rez, Founder, “Atoms for Peace” Czech Republic, on “Building a Nuclear Power Platform for the World”
The Urgent Task of Reorganizing
the Trans-Atlantic Financial System The third panel of the SI conference was titled: “Weimar Ger many 1923 Comes Again: Global Glass-Steagall Policy To End Hyperinflation”. It featured Jacques Cheminade, the head of Solidarité et Progrès in France, EIR economics editor Paul Gallagher (cf. above), and EIR Ibero-America director Dennis Small. They were followed by two Americans from Kansas, rancher Mike Callicrate, who spoke on the urgent need to stop the cartelization of agriculture, and State Senator Mike Thompson who showed the disastrous consequences in his state of the rush into renewables.
Bringing in the international picture were Japanese econo mist Daisuke Kotegawa, a former leading official at the Min istry of Finance in Japan, who focussed on the bogus “stress tests” of the banks; French economist and jurist Marc Gabriel Draghi who denounced the ramifications of the “Great Reset” for Europe, and Pedro Rubio, President of the Association of Officials of the General Accounting Office in Columbia, who described the disastrous impact of the pandemic and the eco nomic collapse in Columbia.
The final panel, dedicated to the “Coincidence of Opposites”, was an extraordinary coming together of American doctors, retired military flag officers, a Russian diplomat, and Helga Zepp-LaRouche, who literally put together on the spot the makings of an international alliance of forces to begin the pro
cess of building modern health facilities in every country. We invite our readers to follow all these video presenta tions, which included many graphics, on the Schiller Institute website, as well as the lively discussions that followed each panel at https://schillerinstitute.com/
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EIR STRATEGIC ALERT 4 WEEKLY NEWSLETTER n°26 / 2021
