THE LEAD

                                                                                                                                                                                                                                                                                        

Wall Street Cries Havoc

January 5, 2015

"Cry 'Havoc!', and let slip the dogs of war"Julius Caesar, III, ii

The world is on a very short fuse to global war, instigated by London and Wall Street in their desperation to avert a loss of power, as their trans-Atlantic financial empire goes down in flames. Indicative of the growing hysteria and desperation was a weekend column by London Telegraph columnist Ambrose Evans- Pritchard, a well-known mouthpiece for British intelligence, who said that the collapse of European bond yields is unprecedented since the Fourteenth Century Black Death. What Pritchard and the Sunday New York Times called the danger of deflation is actually a total collapse of the real economies of the European nations.

And now, with Greece on the verge of leaving the Euro-system and repudiating the Troika's austerity policies, there is panic that the contagion of that pending development will spread throughout Europe, starting with Italy, Portugal, Spain, and, perhaps, even France.

In Germany an unprecedented public brawl has erupted around the Merkel government's austerity recipe for the Mediterranean countries of the Euro-zone. For the first time, German officials, including one of Merkel's top economic advisors, Michael Fuchs, are openly saying that Greece can split out of the euro without causing a larger crisis. SPD coalition partners, who reject that fantasy, are furious that the statements were issued without consultation.

There is little confidence anywhere in this claim of European financial stability, and both Pritchard and the New York Times on Sunday implored European Central Bank head Mario Draghi to live up to his promise to do "whatever is necessary" to save the euro. That means a massive quantitative easing program of hot money printing, which Pritchard says is too little, too late.

It is precisely that QE madness that has created the biggest Wall Street debt bubble in history—a bubble that is also on the very edge of explosion. The continuing collapse of the oil price, through conscious Anglo-Saudi manipulation, is threatening to detonate a $20 trillion Wall Street derivatives bubble, built up around the U.S. and Canadian shale oil and gas scam.

So, on both sides of the Atlantic, the financial house of cards could be toppled at any moment. For this reason alone, Wall Street and London are prepared to risk thermonuclear extinction, by driving for war as the only remaining option left for their dying empire. And so long as Barack Obama remains in the White House, Wall Street and London have their fingers on the nuclear trigger.

To put things in stark terms, the world is closer to a general war—a thermonuclear war—than it was during the 13 days of the Cuban Missile Crisis in 1962. Obama's visceral hatred of Russian President Putin means that so long as he remains in the Oval Office, the war danger is immense.

The reality, emphasized, in Sunday discussions with colleagues, by Helga Zepp-LaRouche, is that the only viable war avoidance option at this late moment is for the United States to immediately return to the Hamiltonian system by reinstating Glass-Steagall and implement Lyndon LaRouche's Four Cardinal Laws for an economic revival, starting with the return to Hamiltonian national banking and the issuing of trillions of dollars in Federal credit for vital technology-intensive projects. Without such a revolutionary change in policy, Zepp-LaRouche warned, there is no way to stop London and Wall Street from escalating their already ongoing strategic war provocations against Russia.

By adopting that American System agenda now, the United States would be, in effect, aligning with the BRICS nations for a new paradigm in global affairs, meaning the bankrupting of Wall Street and London altogether.

The alternative has been made absolutely clear in recent days by dire warnings from former top CDU national security advisor Willy Wimmer, former Reagan speechwriter Pat Buchanan, and former CIA Soviet desk officer Ray McGovern, who have all pointedly warned in the past seven days that Washington and NATO policies are driving the world to global thermonuclear conflict.

Top Russian officials have made crystal clear that they see NATO and Obama driving for regime change in Moscow in 2015, using the color revolution methods that have been widely exposed in recent papers, published in the official journal of the Russian Ministry of Defense. A recent article in the journal traced the color revolutions back to the British Empire and Cecil Rhodes. Some Russians know the proper address of the enemy of mankind.

Russia's human rights ombudsman on Sunday issued a dire warning that neo-Nazis are on the offensive in the heart of Europe, a reference to the Right Sector and other Banderist fascists, who are driving Ukraine into a confrontation with Moscow, despite efforts by the Normandy Group of foreign ministers (Russia, France, Germany and Ukraine) to de-escalate the crisis in eastern Ukraine.

General Valerii Gerasimov, Chief of Staff of the Russian Armed Forces, delivered a clear year-end message that Russia's strategic nuclear force has been modernized and expanded, and will be prepared to act on Russia's newly announced defense doctrine, which is based on the understanding of the NATO regime change agenda.

                                                                                                                                                                                                                                                                                        

SUPPORTING MATERIAL


McGovern Warns of 2015 War Unless West Drops Anti-Russia Betrayals

Ray McGovern, the founder of Veteran Intelligence Professionals for Sanity (VIPS) and a 27-year veteran CIA analyst of the Soviet Union, has posted a new warning of the danger of war, stemming from the Obama Administration's and the Congressional neo-cons' assault on Russia. While McGovern put the onus of war-avoidance on President Obama, which is a non-starter, he provided an invaluable review of the history of the current Ukraine crisis, dating back to the immediate post-Cold War period. At that time, as McGovern recounts, an agreement was reached, involving James Baker III, Helmut Kohl, Mikhail Gorbachov, and Eduard Schevardnadze that, in return for Moscow taking no action to block German reunification within NATO, there would be no eastward expansion of NATO. While the deal was never put to paper, it was considered binding by all sides and was based on a new emerging "trust" between both sides that the agreement was binding on future governments.

As McGovern documents, that agreement was broken, beginning in 1999, with the first eastward expansions of NATO, and has continued unabated ever since.

McGovern reviewed Russian President Vladimir Putin's personal experience with war--he lost a brother in the siege of Leningrad--and noted that Russia will not allow the red line of Ukraine to be crossed. He posted the full audio and excerpted the transcript of the infamous Victoria Nuland-Geoffrey Pyatt intercepted call spelling out the Obama Administration-led coup d'etat in Kiev in February 2014.

McGovern quoted from his own recent correspondence with former U.S. Ambassador to Russia Jack Matlock and former Gorbachov top advisor Viktor Borisovich Kuvaldin, who corroborated the details of the no-NATO-expansion deal.

McGovern was blunt about the neo-Nazi character of the Maidan coup:

"In the major U.S. media, the violent coup on Feb. 22--spearheaded by well-organized neo-Nazi militias who killed police and seized government buildings--was whitewashed from what the American people got to see and hear...In the preferred U.S. narrative, Yanukovych and his officials simply decided to leave town because of the moral force from the white-hatted peaceful protesters in the Maidan."

McGovern nailed Victoria Nuland as the designated "bridge" between the Obama team and the neo-conservatives of the Bush-Cheney era.

In another dire warning of the war danger created by the U.S.-NATO backed puppet government in Kiev, Stephen Lendman writes an exposé in the People's Voice called "Most Ukrainian Soldiers Don't Want to Fight." Featuring an interview with a Ukrainian young man who was dragged from his home and forced into service for Kiev, the article says that conditions are brutal, conscripts are fed little and are underpaid, and desertions are high. Lendman is the author of a recent book, Flashpoint in Ukraine: How the U.S. Drive for Hegemony Risks World War III.


Panicked Calls for QE by Draghi and ECB

Both the New York Times and the Sunday Telegraph are screaming for a European hyperinflationary "solution" to the continuing crash of the European economy. In a lengthy story on Sunday, the Times warned that European Central Bank (ECB) head Mario Draghi was too timid and has allowed the European currencies to collapse into "deflation," a monetarist spin on what is in reality a total collapse of the real economy. The Times highlighted the ongoing fight within the Eurozone between Draghi and his French and Italian boosters, and German central bank head Jan Weidemann, who argues against the QE policies being demanded.

Over the weekend, Ambrose Evans-Pritchard warned in the Daily Telegraph that it may be too late for QE, noting that yields on European sovereign debt have fallen to levels not seen since the 14th Century Black Death. Italy, Spain, and Portugal this last week saw yields on five year bonds fall to between 0.13 and 0.32 percent, and German state bonds were selling at negative rates.

"Nothing like this has been seen in European history since the 14th century, after the depletion of silver mines set off a slow monetary contraction, followed by Edward III's default on debts to Italian banks and the Black Death soon after, compounding a deflationary collapse."

Pritchard warned that it may be "too late" for the ECB to launch a big enough QE to set Europe back on a "growth track," noting that Germany will run a budget surplus and will be allowing some of its expiring debt to run out without roll-over. He cited Merkel advisor Michael Fuchs, who opposed any new QE and also noted that Germany could live with Greece leaving the euro system altogether. Fuchs declared that the ECB should not, in Pritchard's words, "be in the business of propping up peripheral debt markets."

Fuchs' view that Greece can safely leave the euro is not shared widely, with panicked warnings about a Europe-wide contagion hitting the City of London press in particular ever since the collapse of the Greek government.


Halligan: China, Not the West, Will Dominate World Economy

Liam Halligan, economist, broadcaster, and author of the weekly "Economics Agenda" column in London's Sunday Telegraph for 11 years, asserts and demonstrates in yesterday's column entitled, "A Return to an Old World Order," that the U.S. and other economies of the West are now clearly second to the economies of the East, spearheaded by the BRICS whether we like it or not.

Halligan "marches the facts":

--In 1980, China's annual economic output was just one-tenth of the U.S.; in 2004, it was half; in October, IMF stats showed China's annual GDP at $17.6 trillion, compared with $17.4 trillion in the U.S. This is hugely symbolic, says Halligan, as the U.S. has been the world's largest economy since 1872, when it overtook Britain.

--Since the early 1980s, China's average GDP growth has been 9.8%, compared with 2.7% in the U.S., a performance China achieved not by following the "Western model," but by "combining aspects of our market mechanism with state control..." Asia, Africa, and Latin America are increasingly impressed by the Chinese model, he writes.

"More importantly, says Halligan,

"Western growth is still far too heavily dependent on rising indebtedness, virtually-printed money, and hype. Many of the large emerging markets continue, in contrast, to ride a megatrend of rapid industralisation, urbanisation, and population growth the likes of which the West hasn't seen for generations... Such nations now account for more than half of global GDP, three-quarters of foreign exchange reserves, and four-fifths of humanity. Their economies, while very far from perfect [emphasis in original] have long been much faster growing, more dynamic and far less indebted than our own."

It is "unwise" for the West to "snub" such countries, and exclude them from the higher echelons of institutions like the IMF.

"We scoff when Brazil, Russia, India and China--countries with a total GDP now nine-tenths of the U.S. and EU combined--set up their own development bank, as they did in 2014. But these countries will run the global economy inhabited by our children and grandchildren."

Halligan says trade talks are "in tatters," and East-West relations are at their lowest ebb for many years, and signs are that the conflict is growing.

"But China, India, and much of the rest of the non-Western world are largely unimpressed by our narrative, remaining more than willing to do business with Moscow....It is less important that the rest of the world resembles us and follows the same path of history we did, building societies we perceive to be in our image, than we continue to trade, to do business and live together in peace... Now, after a couple of centuries of European and then American dominance the East--whether we like it or not--is set to dominate global commerce once more."


Ukraine's Puppet Government Denounced for Nazism and War Push

Czech President Milos Zeman denounced Ukraine's drive for war in a Jan. 3 interview with Pravo daily, in which he zeroed in on the NATO-U.S. installed Prime Minister, Arseny Yatsenyuk, reported Iran's Fars News Agency (FNA).

"Yats" is famous for being "our boy," as described in a phone conversation between Obama's neo-con Victoria Nuland and the U.S. Ambassador to Kiev, just before the putsch that ousted the elected government of Ukraine.

Zeman said:

"Judging by some statements made by Prime Minister (Arseny) Yatsenyuk, I think he is, most likely, the prime minister of war as he does not want a peaceful solution, when the whole European Commission recommends seeking and achieving it...He wishes to solve the problem by force."

"Maidan was nowhere close to a democratic revolution. A civil war is underway in Ukraine," added Zeman, who contrasted Yatsenyuk's war push to talks and conferences that involve Ukraine President Poroshenko talking to Putin among others.

One day earlier, two Russian officials denounced Ukraine for allowing pro-Nazi rallies, which occurred on Jan. 1, when Right Sector and Bandera-loving Svoboda supporters held a torchlight parade. On Jan. 2, the Russian Foreign Ministry's human rights envoy Konstantin Dolgov send out a statement by Twitter denouncing the rightwing rallies, saying that these torchlight demonstrations show that Ukraine "is continuing to move along the path of the Nazis! And this is in the Center of Europe."

Infax-Ukraine reported that activists of the Svoboda (Freedom) and Right Sector Ukrainian nationalist parties shouted racist slogans as they rallied to mark the 106th birth anniversary of Nazi Stepan Bandera. Some protesters wore World War II military uniforms, while others draped themselves in the red and black nationalist flags, chanting "Ukraine belongs to Ukrainians" and "Bandera will return and restore order."

Russian journalists who were covering the rally were pushed and beaten and one female reporter had her cellphone stolen during the assault by the right-wingers. Deputy head of the Russian Foreign Ministry's press department Maria Zakharova condemned the assault via a Facebook posting, reported by RT.

"A new attack on Russian journalists is another glaring fact of press persecution in Ukraine...It is important that anti-fascist organizations have their say in the matter, because it is no longer about some dangerous neo-Nazi tendencies in the center of Europe, but specific activities that in form and content copy Nazi traditions. Silence in this case is an act of approval."

                                                                                                                                                                                                                                                                                        

Related