Author: Alicia

You know,— those of you who have not become personally totally demoralized,— you know that this country and much of the world are in existential crisis. This is far worse than 2008, and far worse than 1929. In the United States, you would have to go back to the pre-Civil War period, or to the time before our Revolutionary War, to find such a level of threat to our country. Nations including our own could effectively cease to exist before this cruel winter ends.

This is a season of death here. Cut off from hope, cut off from a useful existence, cut off from everything, many of our citizens are simply going out to kill themselves, whether with heroin or firearms.

In the trans-Atlantic area, we have a disaster which has apparently little or no future for mankind. However, in terms of Russia and China, we do have something that could be the answer to the problem. You have to understand that the history of mankind in recent times, has been that Asia has been a different region from the trans-Atlantic area. And it’s the trans-Atlantic area, as centered in the British Empire, which is the primary source of all the evil that’s hitting now.

The key to understanding this, is the history of the British Empire. The British Empire is the source of evil, whereas you have a different possibility available in terms of Russia and China.

For mankind, there is always an available solution to this kind of problem. Where does it lie?

It lies in human creativity, and yes,— you can get there. On certain conditions. In order to get there, you will have to abandon most of the baggage you would like to carry with you. Which is essentially the British Empire, and those parts of the planet which are tied to the British Empire.

Like the current financial system. This financial system is a fake. It’s the source of the destruction. You have to get rid of the financial system,— and that is the key to the solution.

As soon as we do that, the bleeding will stop!

It is Bertrand Russell who created this, and it was Bertrand Russell’s influence on the US economy, and related things, which caused this destruction.

This problem goes back to the death of the great genius Gottfried Leibniz at the end of 1716. Leibniz was the key to that entire period of history; his death left a huge gap among our forces. Leibniz was the inspirer of the American Revolution, along with much else. Later, decades after Leibniz’s death, it was the genius Alexander Hamilton who came forward to pick up Leibniz’s role and effectively found the USA. Only Hamilton’s economic principles make sense: forget everything else!

Our crisis today is far worse than what Franklin Roosevelt faced, but the same Hamiltonian principles apply. Those principles can bring about a turnaround and eventual recovery now, as they did then. The problem is that so many of our citizens have become too stupid to grasp them. The stupidity which is manifest in submission to Wall Street, and even more particularly to the FBI system which substantially took power in the US beginning in 1944, even before Franklin Roosevelt’s death. It was the introduction of the FBI system which has caused the destruction of the economy of the United States.

Our citizens’ minds have fallen prey to to the evil influence of London’s Lord Bertrand Russell (1872-1970), whom Lyndon LaRouche has called “the most evil man of the Twentieth Century.” Russell devoted his life to making men stupid so that they might be easily controlled,— or, as now, killed. His method was to insist on mathematical thinking, which has long been the leading form of abject stupidity worldwide. Beginning in 1900, he succeeded, and progressively destroyed the 20th and 21st centuries. For most of you, this is what you “learned” in school. If you have children, this is all they are so-called “learning,” and in a more wretchedly stupid form. This is the stupidity which Albert Einstein, like Lyndon LaRouche, never accepted, and spent most of his life fighting.

Now let’s finally get rid of this nonsense. Your life, and a lot more besides, depends on it.

This is how we’ll win. Sign me up.

When addressing the issue of the organization of galaxies as unified systems we quickly reach the limits of our basic understanding of physical science. A range of anomalous activity points to new domains of physics–new universal physical principles–currently outside our grasp. Central in all this is a mysterious singularity point in Einstein’s general relativity–the supermassive black hole.

Some background material is available in the article, “Singularities and Supermassive Black Holes”, (part of the 2015 report, “Towards a Galactic Science Driver”.

As Obama continues to improve his kill rates—from Flint, to Puerto Rico, to the overall national demographic death rates—it’s important to keep in mind “how the other half lives,” i.e., that half of humanity that is not enslaved to the British Empire, and is instead progressing under China-led BRICS economic policies. While the financial press ridiculously points to China as the “epicenter” of the ongoing international financial meltdown (supposedly because its GDP growth for 2015 was “only” 6.9%, a 25-year low), the reality is that it is the epicenter of growth.

China’s ambassador to Russia, Li Hui, granted an interview to Sputnik in which he emphasized that China-Russia cooperation is at the center of these economic policies.

He also mentioned the high-speed rail line between Moscow and Kazan, which “has entered the stage of practical realization.” And overall there is “stepped up cooperation in building wide-body planes,” as well as on nuclear energy, electricity, chemical industry and production of natural resources, Sputnik reported Li saying.

Li noted that there had been a significant, 29% decline in bilateral Russia-China trade in 2015, mainly due to collapsing oil prices, but he added:

He said venues of cooperation include the AIIB, the BRICS New Development Bank, the Silk Road infrastructure fund, etc. China is Russia’s leading economic partner, with $95 billion in trade in 2014. President Putin in June said that the two countries were planning to boost bilateral trade to $200 billion “in the next few years,” Sputnik reported.

Xi Jinping arrived today in Saudi Arabia for a two-day visit, before going on to Iran and Egypt, in a trip aimed at intervening against the British provocation of Sunni-Shia warfare. Before arriving in Riyadh, Xi published an article in the Saudi paper Alriyadh titled “Be Good Partners for Common Development.” The visit comes just days after China published its first “Arab Policy” document, laying out China’s intention to extend the Silk Road concept into Southwest Asia.

Xi’s article doesn’t mention Iran or the war danger, but focuses on China’s friendship and trade relations with the Saudis — China is Saudi Arabia’s largest trading partner, and the Saudis are China’s largest source of oil imports.

“Over 2000 years ago,” he wrote, “numerous camel caravans from the two sides traveled along the ancient Silk Road. Diplomatic envoys from the Seljuk Empire visited China during the Tang Dynasty. Zheng He, China’s Muslim navigator in the Ming Dynasty, traveled to Jeddah, Mecca and Medina, and he described them as paradises where people enjoyed peace and harmony. The interactions and mutual learning between the Chinese and Islamic civilizations are an important part in the history of inter-civilization exchanges.”

Xi said the two nations should “bear in mind the strategic nature of China-Saudi Arabia relations…. Let us forge a win-win partnership of mutual benefit and common development,” emphasizing “aerospace, peaceful use of nuclear energy and renewable energy…. We hope and trust that Saudi Arabia, located at the west crossroads of the Belt and Road, will become an important participant of, contributor to and beneficiary of this initiative.”

Chinese President Xi Jinping has begun a five-day swing through Saudi Arabi, Iran, and Egypt whose intention is to fully turn the tables on London’s policy of bloody sectarian warfare and terrorism in the region. His main instrument is China’s “win-win” policy of bringing the One Belt One Road program to the remotest corners of the planet. Xi stated the policy in his own words in an article published in Alriyadh on the eve of his Jan. 19 arrival there.

The Egypt leg of the trip will be particularly important, with a major policy speech to be delivered by Xi before the Arab League, headquartered in Cairo. Multi-billion-dollar deals and investment agreements are scheduled to be signed between China and Egypt, including a memorandum of understanding for Egypt to participate in China’s One Belt One Road economic cooperation policy. Other areas will include cooperation in infrastructure, nuclear power, so-called “new energy,” aviation, finance, and other sectors, according to the BRICS Post. Egypt’s ambassador to Russia, Magdy Amer, told Egypt’s MENA news service that during Xi’s visit deals will also be signed for $1.8 billion in loans: $1 billion to strengthen Egypt’s foreign reserves; $700 million to the National Bank of Egypt to finance projects; and $100 million to Banque Misr for small and medium-sized business projects.

A senior intelligence source in Washington, D.C., reported that China is in a unique position to defuse the British sectarian warfare plan in the area, having not “taken sides” between Iran and Saudi Arabia in the recent period. Egypt can also play a key role, the source said, since it has not sunk into the sectarian conflict affecting much of the region. 

A steep sell-off the stocks of the banks of Europe and the United States has led, and greatly exceeded in magnitude, the general stock market mudslide of 2016. Typically, these banks’ stocks have fallen 15% or more so far, as the underlying insolvency of their new credit bubbles has become clear.

In Europe, the threat of the “bank bail-in” policy imposed on Jan. 1 is dragging the banks into the pit. Monday in Italy, national regulators stepped in and suspended trading in bank stocks, after they had dropped by 4-6% for the day. The declines were led by two of the biggest, Monte dei Paschi di Siena (MPS) and Banca Intesa San Paolo. Then, they issued an order banning “short selling” in the stock of those two big banks.

When Chinese authorities did such things in December to deal with a small stock market bubble, European and U.S. financial media leaped to blame the entire ongoing financial crash on China’s actions. But the Italian events showed the real cause: bad debts in European banks, and “bail-in.”

Reuters‘ coverage of the Italian actions noted that “Investors are growing increasingly nervous about how the [banking] sector will cope with lower interest rates and a EU200 billion ($218 billion) pile of loans that are unlikely to be repaid. Those concerns are trumping expectations about a wave of consolidation set to sweep the sector, with cooperative banks under pressure to merge following a government reform to reduce the number of lenders.” Instead, the biggest banks are getting hit.

In addition, as Bloomberg News reported yesterday, “Italy Banks Lose over $82 Billion from Savers” — the policy of expropriating (“bailing in”) the savings of people who were induced to invest them in banks’ senior unsecured bonds, has caused a “bondholders’ run on the banks.” As Bloomberg put it, “Savers are shunning bank bonds as losses at four small lenders in November have made more people aware that the investments are risky.”

The attacks on China — which still has 7% annual economic growth — are absurd and should be dropped; cooperation with China on its policy of building world land-bridges and forming international development banks, is the only way out of the collapse for Europe and America.

The market mudslide and commodity collapse continued Monday despite U.S. markets being closed for the Martin Luther King holiday; the collapse is moving faster, to the point of drawing admissions that “it’s worse than 2008,” as EIR Founding Editor Lyndon LaRouche announced it would be one month ago.

In a sign of the rapidly growing fears of a financial blowout, the habitual Wall Street cheerleading network, CNBC-TV, carried two commentaries, “Oil Credit Crunch Could Be Worse Than The Mortgage Crisis,” and “A Recession Worse than 2008 Is Coming.” The latter, by investment manager and author Michael Pento, is a straightforward forecast that the Federal Reserve will soon be desperately resuming money-printing (quantitative easing) to save the Wall Street and European banks, although its author shows considerable confusion about the cause of the collapse. The former commentary, by 33-year oil industry consultant Mark Harrington, is a much more detailed crash prospectus.

A flood of “hard defaults against bank lenders and bondholders” is coming immediately and throughout 2016, Harrington says, and each will create cross-defaults with other securities. The Economist this week estimates half of all U.S. shale oil/gas production/exploration companies will go bankrupt in 2016, not to mention those in North Sea oil which have already cut 55,000 jobs in the U.K. alone. “Even more importantly, most oil-price hedges, price swaps/derivatives, also have cross-default provisions. Thus, counterparty credit risk [among banks] begins to escalate as those parties are forced to disgorge cash payments on those instruments. Given the ferocity and rapidity surrounding this meltdown, can lenders effectively process this burgeoning inventory of defaulted credit?” His answer is no.

Harrington also notes, using BIS and figures, that at least $2 trillion of high-yield debt for shale oil/gas “capital expenditures” has gone on the asset books of banks, expected to produce three times its value, now worth half its nominal value at best. “The selloff in energy bonds now underway creates general risk avoidance across the board. Ballooning loan write-offs hit the major banks and those smaller banks to whom the loans were syndicated. The manifestation of counterparty credit defaults and its cross defaults hit the banks again and many other firms that began originating swaps. The contagion through the expanding and loosely regulated derivative market is surely destined for surprises. Even with the selloff to date, one cannot gauge the magnitude of the problem and how it might play out. But we know one thing for sure: It will be ugly.”

Oil prices fell toward $28 Monday, but U.S. producers are actually getting as low as $15, or even giving oil away to get it stored and keep pumping. The Dallas Federal Reserve Bank Monday denied the weekend’s Zero Hedge story that it had told banks to keep “marking” oil at $49-59 on the banks’ books, while forcing oil/gas debtors to liquidate assets, pay down debt, and keep pumping with what is left. A Texas source with long knowledge of the industry told EIR that whether or not the Dallas Fed issued such instructions, that is, in fact, what the banks are doing.

Thus bank fraud is being combined with looting and liquidation of companies and employment, until the whole financial speculation blows up — or Wall Street is shut down by orderly, Glass-Steagall bankruptcy reorganization.

The International Atomic Energy Agency (IAEA) on Saturday, Jan. 16, confirmed that Iran was in full compliance with the P5+1 agreements, and, as the result, key sanctions are being lifted by the UN, the European Union, and the United States. Secretary of State John Kerry was in Vienna for the formal announcement, along with Iran’s Foreign Minister Javad Zarif and European Union foreign affairs chief Federica Mogherini.  Hours before the formal announcement, the U.S. and Iran reached a prisoner swap agreement, under which five Americans held in prison in Iran were released in exchange for five Iranians imprisoned in America.

To meet the criteria for full compliance, Iran delivered 98 percent of its stockpile of enriched uranium to Russia, removed the core from the Arak heavy water reactor, and dismantled 2/3 of the centrifuges at its enrichment facilities.

At a White House press conference on Sunday morning, President Obama also announced that the U.S. and Iran had reached an agreement resolving a legal dispute pending since 1981, over frozen Iranian assets.  President Obama claimed that the settlement saves the United States billions of dollars in interest payments and continuing legal costs.  In his 15-minute nationwide TV address, President Obama did acknowledge the pivotal role played by Secretary of State Kerry in negotiating the P5+1 deal and the prisoner exchange.

The initial lifting of sanctions against Iran comes less than a month before crucial national elections in Iran for the Majlis (national parliament) and the Consultative Assembly, the body that chooses the successor to Supreme Leader Khamenei.  Both President Rouhani and former President Rafsanjani are seeking seats on the Consultative Assembly.

The British Empire’s economic system is more than dead, and the only thing worth discussing is canceling it all, eliminating it totally, and creating new options, Lyndon LaRouche stated today.

There is no point in trying to quantify the corpse, or the amounts of speculative paper that are already going up in smoke. You cannot measure it, because it is already more than dead. Nobody knows—except that the collapse is on, that it is proceeding at an accelerating rate, and that there is no solution within the system. When you are on the verge of societal chaos and disintegration, the only thing worth considering are not the stupid, cheating, lying comments and actions coming from bankers and the Obama administration; all you need to know, LaRouche noted, is that you really don’t want to marry a corpse!

The trans-Atlantic system, is endlessly, hopelessly bankrupt, and the whole shebang simply has to be canceled immediately. The only question is, when will it be buried, and a new system created, just as Franklin Delano Roosevelt did? We have to create sane options, by eliminating everything that Wall Street represents. There is no assurance of any true value in their entire system, so why try to measure it? We simply have to cancel it, and come back with a re-statement of a new system, as FDR did.

Our enemy, to be kept clearly in our sights, is the genocidal British Empire, which is guilty, among other crimes, of placing their tool Barack Obama in the Presidency of the United States. As LaRouche stated in discussions with associates yesterday:

“There’s one issue: the British Empire, period. That’s the only subject. What do we do about the British Empire?” Everything else is just talk and distraction, LaRouche said. The British Empire dominates the planet, including Wall Street, and including the fascist Green policy, which has now been taken up and promoted by Pope Francis. “What’s the Green policy? It is entirely the British System. It is nothing but the British System. So don’t go looking for explanations, per se. You have to sink the British Empire!”

As LaRouche stated in a discussion with associates today: