Obama, EU Furious as Trump Sees the New International Reality

January 17, 2017
Obama and NATO Secretary General Anders Fogh Rasmussen participate in a North Atlantic Council meeting with heads of state and government during the NATO Summit in Chicago, Ill., May 20, 2012. [Whitehouse photo]

President-elect Donald Trump's latest and most substantive interview makes very clear what is the new paradigm for the world for the immediate future. Trump prioritizes a deal for nuclear weapons-reduction and likely sanctions-reduction with Vladimir Putin's Russia. He states that NATO is "obsolete" and that its European members neither support its military nor fight jihadist terrorism. He forecasts that the European Union is likely to break up, and that this will be a good thing. Despite the hysterical outbursts this interview with the London Times and Germany's Bild Zeitung has drawn from the European elite and Obama's ambassadors there, Donald Trump is simply seeing the new reality—the new paradigm—and indicating he may help make it.

Putin's Russia is responsible for the possibility of ending 15 years' continuous Mideast/North Africa wars, and for a new security concept, shared by Xi Jinping's China, which can break the back of international terrorism. Xi tomorrow will keynote the World Economic Forum at Davos. He is responsible for driving a very large share of the economic and productivity growth in the world, and for offering "a community of common destiny" through the New Silk Road infrastructure, leading fusion research and development, leading lunar exploration.

The United States, rid of the Nobel War Prize President Obama, is offered to join the institutions and actions of this new paradigm.

Fear and hatred of this prospect is the source of the intense campaign of anti-Russia, anti-Trump propaganda in the United States, which is being steered from British intelligence but is deep into a "get-Trump task force" within the intelligence agencies under Obama. That campaign is futile and destructive, and American "progressives" should not be sucked into joining it. As EIR Founding Editor Lyndon LaRouche put it, "The way Trump is going ahead right now, there's going to be a big change internationally. It's not Trump alone. It's the other elements in the system that are coming together to bring a force into play which will dominate the planet."

Will the American population, which has voted to reject the old, "globalization, deindustrialization" paradigm, get the new administration and Congress to do what is needed to join the new drivers of growth and scientific progress? A national, bipartisan petition drive is underway—and on this website—demanding that Trump, who promised "a 21st-Century Glass-Steagall Act" during the campaign, propose this to Congress in his first address to them. Ending the Wall Street casino's poisoning of the American economy is a first step. But then there is no national "Hamiltonian" credit institution to remake America's obsolete economic infrastructure—even when China's sovereign funds, as reported here, are seeking exactly such an institution to enable them to invest in a new U.S. infrastructure. Obama told voters he considered the fusion power/plasma technology revolution entirely unnecessary, and privatized NASA's major exploration programs with worsening effect.

The time is now for Americans to act for their futures, not their fears.



China Wealth Fund Wants To Turn Treasuries to U.S. Infrastructure

In a speech to the Asia Financial Forum in Hong Kong Monday, China Investment Corporation chairman Ding Xuedong said that CIC wants to change its holdings of U.S. Treasury debt, into an investment in building of new infrastructure in the United States. Ding's speech was reported in the South China Morning Post, Reuters, and other media.

Ding's estimate of the investment needed to build a new and modern economic infrastructure in America was a very large $8 trillion, which, he said, would not be invested by the U.S. government and private investors alone. "According to our estimate, the United States needs at least $8 trillion in infrastructure investment; there's not sufficient capital from the U.S. government or private sector. It has to rely on foreign investments."

Ding said CIC also wants to invest in American manufacturing capacity.

The vehicle CIC is seeking, in fact, does not yet exist; it would be a "Hamiltonian" national credit institution for infrastructure and manufacturing investments, as specified in EIR Founding Editor Lyndon LaRouche's "Four Laws to save the United States economy" in 2014.

CIC now holds $50 billion in U.S. Treasuries, a part of $1.14 trillion in Treasuries held by Chinese institutions. Ding called the return on those Treasuries too low, and said "the returns in public markets are falling." CIC wants alternatives, and wants to convert those holdings into investments in new U.S. infrastructure projects. Ding is also chairman of the China International Capital Corporation, which has substantial U.S. Treasury holdings as well.

Ding called the Chinese and U.S. economies "complementary" in this respect.

Trump Calls for Nuclear Arms Deal with Russia; Backs Leaving EU

The Transatlantic Establishment has been thrown into another round of rug-chewing by U.S. President-elect Donald Trump's first interview with European media, a joint interview granted to The Times of London and the German tabloid, Bild Zeitung, published Jan. 15 and 16. Leaders from France to Britain and beyond expressed outrage that Trump dared to suggest lifting Russian sanctions in return for a nuclear arms deal, to again call NATO obsolete, and to suggest that not only was Great Britain's Brexit from the European Union a "great thing," but, "if you ask me, more countries will leave, too."

"They have sanctions on Russia—let's see if we can make some good deals with Russia. For one thing, I think nuclear weapons should be way down and reduced very substantially, that's part of it," Trump told his interviewers.

Changes will also occur at NATO, Trump announced: "It's obsolete, first because it was designed many, many years ago," secondly, European "countries aren't paying what they should," and also, because the NATO Alliance "didn't deal with terrorism."

Trump's criticism of Russia's intervention into Syria as a "very bad thing" that led to a "terrible humanitarian situation," did not outrage the trans-Atlantic elite, nor his repeated statement that it was "a big mistake" for Germany to have taken in Syrian refugees.

But the same cannot be said for Trump's reminder that what created this crisis in the first place, was the U.S. intervention into Iraq.

"This whole thing should have never happened. Iraq should not have been attacked... It's like throwing rocks into a beehive. It's one of the great messes of all time," Trump said. His priority for the military as commander-in-chief? "ISIS," Trump answered.

Obama's Ambassador to the European Union, "leveraged finance" expert Anthony Gardner, was already apoplectic that the first question EU officials the Trump transition team had spoken to were asked was "What country is about to leave [the Eurozone] next after the U.K.?," thus spreading the idea "that 2017 is the year in which the E.U. is going to fall apart." (Time magazine, Jan. 13, 2017).

Now from Trump himself, came the assertion that "Brexit is going to end up being a great thing."

The fact that The Times interview was conducted by Michael Gove is driving City of London circles wild. Gove is the leading Brexit supporter in the Conservative Party. Since he was sacked last year by Prime Minister Theresa May, it is considered another tweak, similar to Trump's having met with Nigel Farage, founder of the anti-EU U.K. Independence Party (UKIP). Trump rubbed that one in, too, asking Gove at the end, "How is our Nigel doing?... I think he's a great guy."

What was reported in The Times and not Bild was his references to Germany and its Chancellor.

"You look at the European Union and it's Germany. Basically a vehicle for Germany. That's why I thought the U.K. was so smart in getting out," he told the two editors. "I believe others will leave. I do think keeping it together is not gonna be as easy as a lot of people think."

In AIIB's First Year of Operation, Nine Major Infrastructure Projects Were Funded

In the article, "How China's Asian Infrastructure Investment Bank Fared Its First Year," Forbes' Sara Hsu wrote: "Looking back to 2016, we mark nine major development projects. [aiib] President Jin Liqun stated that the bank aimed to lend $1.2 billion in 2016, and it has more than met the target, extending over $1.7 billion of loans last year."

Hsu pointed out that when the Asian Infrastructure Investment Bank was announced, critics feared that it would be used to advance China's national interests only, while lowering environmental and human rights standards. However, that did not occur, thanks to able administration by the AIIB chief Jin Liqun. "Under President Jin's guidance, the AIIB has worked up the learning curve under collaboration with its co-financiers. For example, the TANAP project, co-founded by the World Bank, piggybacks on the World Bank's due diligence assessments."

The AIIB carried out due diligence in conjunction with the World Bank for the Pakistan hydropower extension project, Hsu wrote. She noted the "AIIB as a body is helping China to bolster its One Belt, One Road (OBOR) policy, which seeks to create a Silk Road Economic Belt and the 21st Century Maritime Silk Road by increasing connectivity among countries."

The article pointed out that AIIB loans to Azerbaijan can help to cultivate the China-Central Asia-West Asia economic corridor, which provides a land-based alternative to the mainly maritime-based routes used at present. "Although the AIIB's commitment to Azerbaijan is in the opposite direction (moving toward Europe rather than toward China), the development of Azerbaijan is likely to lead to future opportunities for China," the article added.