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Webcast: We Are Facing “Fascism with a Green Face”, and We Should Call It That!

As energy hyperinflation is taking off, as a result of both objective and subjective factors, Helga Zepp-LaRouche said that this is what her husband uniquely warned about when the Club of Rome first began pushing its anti-human slogan of “limits to growth” in the late 1960s. This is Schachtian policy, she said, a strategy of the leading oligarchs running the world economy, to drastically reduce the world’s population, using the same methods Schacht applied in Germany under Hitler. This has now been openly identified in an article in the October 4 “Economist” magazine, “The Age of Fossil-Fuel Dependence Is Dead”, and in Klaus Schwab’s new book, “Stakeholder Capitalism”, as the dark future they intend to impose. Zepp-LaRouche stated that this is “fascism with a Green face”, and should be identified as such, to mobilize people to defeat it.

In addition to destroying the world’s physical economy, they are engaging in an assault against the idea of human creativity, which is the one source of innovation which has demonstrated that, as LaRouche wrote, “There Are No Limits to Growth.” And at the same time, they are conducting provocations against China which could lead to war. She reiterated her view that collaborative efforts among nations, including the U.S., Russia and China, to reconstruct Afghanistan and Haiti, can provide a basis for overcoming this otherwise deadly threat to humanity.


China’s Secret: Hamiltonian System, Anyone?

China’s Secret: Hamiltonian System, Anyone?

Sept. 29 (EIRNS) – Italian economist and China expert Michele Geraci explained why, in his view, Evergrande won’t unleash a systemic crisis for China.

 “China can manage crises because it controls all necessary macro-economic variables, which have been denied to us. … Here is the list of what they have and what we don’t:

  •  1. They issue their (own) currency (and we don’t).
  • 2. They decide at a table the interest rate curve.
  • 3. They have no deficit constraints.
  • 4. They decide currency exchange at a table.
  • 5. They control current accounts through independent trade policies.
  • 6. They control capital in- and outflows.
  • 7. They do not have an international currency, thus they are not captive to Wall Street.
  • 8. Lastly, the key is that they have no big foreign debt.

… That is why Evergrande won’t be, in my view, a systemic risk…”

The reader knowledgeable in the American System of Political Economy will recognize major features of a Hamiltonian system of credit and trade policies in these Chinese policies.


Afghanistan: the Role of the Neighboring Countries in Development

Afghanistan: the Role of the Neighboring Countries in Development

Aug. 5, 2021 (EIRNS) – During a Schiller Institute conference July 31, Prof. Pino Arlacchi, the former head of the United Nations Office of Drug Control who negotiated near-elimination of Afghan opium production with the Taliban 20 years ago, noted that immediately neighboring countries should play a primary role in planning South Asian regional development to include Afghanistan, and in stopping drug traffic from that country. One country clearly taking the point for this kind of development is Uzbekistan, under President Shavkat Mirziyoyev.

A July 31 article in EastAsiaForum.org by Nasriddinov Salokhiddin, a researcher at the Institute for International Security of Tokyo International University, calls the February 2021 conference with Pakistan and Afghanistan organized by Mirziyoyev, “the event of the century for Central Asia”, because it will connect landlocked Central Asian countries to the Indian Ocean through Afghanistan and Pakistan. The conference attendees decided on a 600-kilometer Tashkent-Mazar e-Sharif-Kabul-Peshawar railroad and requested $4.8 billion in World Bank funding for it, Apparently the railroad corridor project was planned from the first to include new electricity transmission lines through it.

Noting the criticism that surmounting the Hindu Kush Mountains will make the project very expensive, Salokhiddin wrote: “Uzbekistan, Afghanistan and Pakistan filed an appeal for investment to international financial institutions, which [appeal] received support from the United States, China and Russia. Representatives of the World Bank, the European Bank for Reconstruction and Development, the Asian Development Bank and the Asian Infrastructure Investment Bank also expressed their willingness to assist the project through technical consulting and financing. Such wide support for the project means that the source of investment is no longer a concern.” He did not give dates or details regarding these other nations’ and international institutions’ support. He did add that the route transits Afghanistan through regions and cities which are under relatively secure government control now.

The author wrote that freight traffic in Afghanistan was about 4 million tons for 2020 and had risen by 25%. “Estimates suggest that if implemented, the trans-Afghan railroad will increase annual volume of rail freight by 20 million tons.” Some economists in Uzbekistan have advocated a railroad corridor to Chabahar in Iran instead, as allegedly more secure. But, “To achieve its economic objectives, access to the ports of Karachi and Gwadar is Uzbekistan’s highest priority.” Full article is here.


Fed Looks Like Losing Control of Interbank Lending, as in September 2019

Fed Looks Like Losing Control of Interbank Lending, as in September 2019

Aug. 5, 2021 (EIRNS) – A new Standing Repo Facility has been created by the Federal Reserve with an authorization of $500 billion subject to unlimited increase by Fed chair Jerome Powell. The Fed announced the facility July 28 and activated its operation July 29, indicating some urgency to cope with a liquidity problem in the interbank lending market, according to economists Pam and Russ Martens in their “Wall Street on Parade” column of July 28.

In September 2019 the Fed suddenly confronted a serious freeze-up in the interbank lending market and was forced to make emergency liquidity loans to the primary dealer banks which burgeoned up to hundreds of billions a day. There were many calls then for a standing repo facility, which was not created. Now it is set up, and will make repo loans not only to primary dealer banks, but to hedge funds, private equity funds, money-market mutual funds…. And, there is a second Standing Repo as well, for “foreign and international monetary institutions.”

So, the situation has clearly gotten much more unstable and contagious. The Federal Reserve has crammed the big banks with $4.5 trillion more in reserves just since the restart of QE in October 2019; those banks are crammed with trillions in new deposits while they have {withdrawn} loan and lease credit, net, from the economy, doubling their speculative {securities assets} the while.

Equally ominous, although the Martenses did not report it June 28: The Fed embarks on these new facilities to pump in liquidity, after about six weeks of reverse repo operations – where the Fed makes overnight loans of Treasuries in exchange for cash loans from banks; i.e., it {soaks up liquidity from the banking system} – which have run as high as $1 trillion/day! This indicates it is dealing with, or perhaps lurching around in, real volatility stemming from the very masses of deposits and stock-price gains it has caused to appear.

Worst of all, in the Martenses’ view, is that the Fed announced the Standing Repo Facility on the afternoon of the day it had been called for, in the morning, by the G30 Working Group on Financial Markets headed by the consummate bad actor in a financial crash, Tim Geithner. Geithner, as head of the New York Federal Reserve, “sluiced out $29 trillion to bail out the Wall Street banks” in 2008, as they wrote. 

The Standing Repo Facility will be operated by the New York Federal Reserve Bank.


WFP Beasley To Bezos: ‘The Sky Is No Longer the Limit’–Let’s End Hunger!

July 24 (EIRNS)–David Beasley, Executive Director of the World Food Program, tweeted on July 20, on the day billionaire Jeff Bezos took a ride into space and back:

“To @JeffBezos, @blueorigin, tremendous congratulations today! I can only imagine how incredible it was to see OUR planet from above. We’re all ONE human race. The sky is no longer the limit!! Now, let’s go end hunger together! Earth needs you!!
…you have proven over and over that anything is possible when you set your heart and mind to it. As you saw from space, Earth is a special place. 41 million people are on the brink of famine. I need your help. We need your help. Together, I know we can! #SpaceForBoth”


Railway Service in Europe Seriously Disrupted by Floods

July 22, 2021 (EIRNS)–The Trains.com website comments that portions of the rail network in Western Europe could be out of service for months or years in the wake of flooding that has left hundreds dead across a swath of western Germany and Belgium. Rail service has been suspended after the floods, which saw rivers running three yards higher than previous records in some cases and destroyed homes and businesses. See report here.

In Belgium, most rail lines south of Brussels saw disruption, with many in the hilly Ardennes region seriously damaged. The high-speed rail line connecting Brussels with Cologne in Germany was briefly closed, but as this goes through hills and over valleys, it was not seriously damaged. Services restarted over the weekend. The older rail lines that follow river valleys, often no more than a few yards above the river, fared much less well. Several routes are so badly damaged that reconstruction is expected to take until late August; less damaged routes reopened July 19.

In neighboring Germany, where the scale of destruction and loss of life has been greater, some rail lines, again built following river valleys, have been completely washed out. In total, German national railroad Deutsche Bahn has reported that 600 kilometers (more than 370 miles) of tracks and 80 stations are impassable.

The worst affected route along the valley of the Ahr River from Remagen to Ahrbrück has seen around 12.5 miles of its 18-mile length destroyed by flood water, with all seven bridges destroyed where the line crossed from one side of the river to the other.

In the Ruhr region, the main station in the city of Hagen was flooded and closed, along with rail lines through the city, as were those in the nearby city of Wuppertal. The flood waters knocked out power and telecom services in many areas. In the city of Bonn, the electronic signalling center controlling the main rail lines along the Rhine valley was unable to function, due to flood damage. Countries neighboring Germany have also seen flooding, with the south of the Netherlands hit with large-scale disruption to rail and road travel. As the weather system moved on, flood waters have affected Switzerland and by last weekend the rain had moved east to Bavaria in Germany and the neighboring Czech Republic, with the rail line between Dresden and Prague shut down July 18 as the Elbe River burst its banks. The Elbe alley was the scene of massive flooding in August 2002, which closed the rail line for three months.


Winners in New `Global Minimum Corporate Tax: Tech Giants, London `Offshore’

Winners in the New `Global Minimum Corporate Tax: Tech Giants, London `Offshore’

July 7 (EIRNS) – The Financial Times on July 3 reported that the City of London financial center had succeeded in winning an “exemption” for its banks and other financial firms – and those of Wall Street and Frankfurt – from the new “global minimum corporate tax” agreement ballyhooed by the U.S. Treasury at the time of the G7 finance ministers and heads-of-state meetings. The minimum tax scheme, considered a U.S. priority, is actually being negotiated and planned under OECD auspices.

A ZeroHedge column on July 1 had already noted that “while Washington likes to talk about the new framework as a foregone conclusion, there’s plenty of reason to doubt that it will ever be implemented. One reason is that countries like Ireland, Singapore, Indonesia and island tax havens like Bermuda all oppose the new scheme.” It could be expected that London would play this card.

In what was portrayed in financial media as hard bargaining between “the United States” on one side and “the UK and France” on the other, financial corporations got a “carve out” or safe haven from the minimum tax; and in exchange, the UK agreed to eliminate in stages its “digital services tax”, which has no American counterpart. France agreed to do this as well, on behalf of continental European countries’ tax authorities.

So while some nations may be hurt by the agreement – for example, Ireland and Russia, which currently have corporate tax rates below 15% — the Silicon Valley tech monopolists will come out just as sales tax-free worldwide, as they have always been in the United States; and the City and Wall Street banks will be subject to the 15% minimum corporate tax only in their home bases, and not in all the other places they operate in. That is to say that “London offshore” tax havens will still be tax havens.


G20 Matera Summit: Long on Rhetoric, Short on Solutions

Foreign and Development Ministers of the Group of 20 and representatives of UN agencies met today in a one-day summit in Matera, Italy, hosted by Italian Foreign Minister Luigi Di Maio as Italy is currently the rotating president of the group. Several of the ministers appeared in person, but China’s, Russia’s, Brazil’s, and other ministers attended virtually. The major emphasis of the summit, whose unimaginative title was “People, Planet, Prosperity,” was combatting the COVID-19 pandemic, as well as food insecurity, famine, poverty, disease, and promoting “sustainable development,” and “sustainable” health systems–especially for Africa. Di Maio said in the closing press conference that the G20 has a special responsibility to help Africa to emerge from a “difficult period.” This must be done in such a way, he said, that people won’t feel the need to leave their countries and migrate to Europe.

The “Matera Declaration on Food Security, Nutrition and Food Systems,” announces a number of initiatives for addressing the developing sector’s most urgent problems, but all are couched in terms of “sustainability,” respecting biodiversity and gender equality, and adapting “agriculture and food systems to climate change.” The statement ends with a call for a “global mobilization” to solve these problems, while it presents none of the solutions that might actually yield results. This document cries out for the Schiller Institute and LaRouche Organization’s programmatic proposals for building a global health system, bankruptcy organization of the global financial system, and reconstruction of the world’s economies with major infrastructure projects.

During the conference itself, there was much rhetoric about “multilateralism,” loudly advocated by Secretary of StateTony Blinken, who had the audacity to say that the U.S. is leading the multilateral effort for vaccine distribution, to which Chinese State Councilor and Foreign Minister Wang Yi tweeted in response that “multilateralism is not a high-sounding slogan, let alone gift-wrapping for the implementation of unilateral acts.” In his public statements, Wang called for an end to the “zero-sum game” in foreign relations. For example, he said, in fighting the pandemic it is to everyone’s benefit that those nations which have vaccines and vaccine capacity lift their export restrictions. Forget about ideology, and get to work on stabilizing vaccine production and supply lines, he said. German Foreign Minister Heiko Maas ignored that advice when he complained that Russia and China are only using their “vaccine diplomacy” for political leverage in the countries they aid. “We must openly discuss the fact that we do not think much of their vaccine diplomacy,” he harrumphed.

Michele Geraci, former Undersecretary of State at the Italian Ministry of Economic Development, said in an interview with CGTN that there is a lot of talk about multilateralism, but if it means that 200 nations do their own thing, and there is retrenchment, this doesn’t work. It hurts production, people-to-people contact, international education, etc. What is needed is real collaboration, he insisted.

Di Maio and other Italian participants pointed out that in terms of protecting health, Rome is home to a number of international food organizations–World Food Program, Food and Agriculture Organization, etc.–and that they and Italy will host the July 26-28 World Pre-Summit of the Food Systems meeting that will be held at the UN in September. As this news service has pointed out, the Rome affair in July is terribly organized as a gathering of “stakeholders” — women, youth, climate, and biodiversity groups, etc. — and that its solutions are nature-based, not focused on ending famine. This is precisely the World Economic Forum/Davos model announced by Charles Schwab last January.


Gabon Made To Mortgage Its Future for `Carbon Credits’

The otherwise nondescript nation of Gabon made history last week as the first African country to “get paid” to preserve its rainforest. At the end of an arduous, four-year process of “conforming,” on June 24, the Norwegian government distributed a $17 million payment, with the fantastic sum of $150 million still in the wind. The payment was allocated under the UN-initiated Central African Forest Initiative (CAFI). While not technically a part of UN Climate czar Mark Carney’s over-hyped “climate offset” scheme, this deal provides a window into the process, and will likely serve as a model.

In June of 2017, under the CAFI program, the nation of Gabon signed a Letter of Intent with the nation of Norway, and the Multi Partner Trust Fund of the United Nations Development Program, under which Gabon would agree to reduce its greenhouse gas emissions by 50% below the 2005 level, as well as agree to perform a series of “milestones”– which ultimately saw Gabon creating 13 “national parks”– effectively locking up the vast majority of its land area, prohibiting logging and other access to resources. Only at the end of the long process would Gabon get paid. That final “millstone” was passed in 2019, with an announcement at the Climate Action Summit in New York. For all its efforts and sacrifices, Gabon would receive $150 million over the next 10 years (assuming continued compliance). Last Thursday’s $17 million payment was the first evidence that its years of sacrifice would amount to anything at all.

First established in 2015, the CAFI brought together European governments, specifically Norway, France, Germany and the UK, along with six central African (rainforest) countries, Gabon, Equatorial Guinea, the Central Africa republic, Cameroon, and both “Congos.” The “rationale” behind CAFI was the reduction of carbon emissions. The year before had seen Norway sign a deal promising $150 million to Liberia, a model which CAFI then extended across the mid-section of the entire continent. In 2019, timed with the signing of Gabon in New York, a similar deal worth $65 million — between France and the Republic of Congo — was announced in Paris. There are likely similar efforts afoot in South America and the Indo-Pacific, the other “rainforest regions” of the world, which need to be investigated.

However, the idea that Africa needs to {reduce} its carbon emissions is farcical on the face of it, something which is slowly dawning on African leaders, as more and more evidence of this type of exploitation emerges. Africa’s total greenhouse gas emissions are 4% of the global total, yet CAFI used that global mantra to convince these six LNI (Low National Income) countries to mortgage their future with the promise of mere pennies.

The other hidden force at play here is the elusive “carbon market.” Norway, which now “owns” the Gabonese forests for the next ten years, now has an amount of carbon offset equivalent to 3X the national output of the entire United Kingdom. (The Gabon deal is celebrated for “setting a floor price of carbon” at $10 per certified ton.) Could Norway, for example– at some date in the future– put this “asset” (or a derivative based on it) up for sale, to be bought by a carbon-belching airline or steel foundry? If they did, and got a higher price for it, would Gabon see any of the profits?

These are the questions currently weighing down the heads of Mark Carney and friends in Davos, Switzerland. The weight may yet draw them down to Hell.


Second “Dialogue on Climate” Webinar in Italy

The second “Dialogue on Climate” webinar took place in Italy yesterday, with professors Franco Battaglia and Franco Prodi as speakers. Prof. Battaglia is a teacher of physics and chemistry at the Modena University, while prof. Prodi, brother of Italy’s former Prime minister Romano, is teacher of Physics of the Atmosphere at the University of Bologna. 

Prof. Battaglia demonstrated in a conclusive way that all forecasts of the IPCC have been wrong. “Nobody can deny that human activity has produced CO2, but this is not the cause of climate change”, he said. We are in the end phase of a mini-glacial era, and global warming has already occurred in the past, when there was no anthropogenic CO2 production. 

Solar and wind energy will never be able to replace other energy sources, which today represent 80% of the energy mix. The insanity of renewables can be shown in Italy, where ca. 100 billion euro have been invested for photovoltaic parks that produce 2.6 GW of power, whereas one nuclear power plant would produce 3 Gw and would cost one tenth of it! Battaglia revealed that when he was advisor to Environment minister Altero Matteoli, the latter asked him whether he should sign the Kyoto protocol. Don’t sign it, Battaglia told him. Nobel prize winner Carlo Rubbia also told me so, Matteoli confessed – but eventually signed the Protocol. 

Prof. Prodi went into a long and detailed explanation on how the formation of clouds affects the climate. This is a complex and articulated system, but the IPCC focuses only on some aspects, neglecting some very influential factors. 

During the Q&A period, former minister Carlo Giovanardi asked why scientists who argue against the IPCC are excluded from the public debate. 

Prof. Alberto Prestininzi, who moderated the event, answered that “there is a direction. When economic leaders get together…. if the EU decides that one trillion Euro should go to decarbonization”. Prof. Renato Ricci, honorary chairman of the Italian Physics Society, commented that it is “big finance” behind the so-called climate emergency. 

Claudio Celani from EIR intervened in support of prof. Ricci explaining that the climate emergency is a pretext to create a new financial bubble in the attempt to save the bankrupt financial system. The origin of climate activism and environmentalism is neo malthusianism, and answering Sen. Giovanardi, Celani said that politicians have a responsibility for having accepted a decades-long slide into the current regime. 

Celani’s remarks were backed by prof. Mario Giaccio, an economist, who said that he agrees about neo malthusianism and went into a description on how liquidity has moved into energy assets, creating the bubble. However, he concluded with the pessimistic remark that you cannot do anything against it because they are too strong! 

Prof. Prodi intervened saying that he has been ostracized by media because of his “negationist” views, and the situation in the scientific community is “more rotten than you think”, almost as rotten as in the financial system. 

There will be a “Climate Dialogues” Webinar every other week between now and October.

The science of climate change is not settled, and much of what is presented is not based on science at all. Leading scientists with the integrity and courage to buck dangerous “popular” dogma will discuss so-called manmade climate change, and the most-advanced science including the galactic science of astronomical-scale oscillations at the upcoming Schiller Institute/ICLC conference. The suicidal trend in some European countries to stick with anti-nuclear attitudes will also be discussed.

For the Common Good of all People, not the Rules Benefiting the Few!

International Schiller Institute/ICLC online conference, June 26/ 27, 2021

RSVP today →


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