Global Economic News

Blackouts Descend on Nations Denied Nuclear Power

Nov. 11 (EIRNS)—Blackouts are becoming part of life in developing nations, often where the development of nuclear power has been prevented by Prince Philip and the World Wildlife Fund. This week's "Dark Age Update" includes:

Brazil: A blackout left much of the southern half of Brazil, including the two largest cities, Sao Paulo and Rio de Janeiro, and 90% of Paraguay, without power for over four hours last night (see Ibero-American Digest for more on this).

Venezuela: Serious electricity and water shortages are growing across the country; there have been six nationwide blackouts in the last two years, and there is daily rationing in rural areas and even in larger cities like Valencia and Ciudad Guayana, and popular protests are growing. "Now, water rationing has been introduced here in the capital," the New York Times reported today.

Indonesia: Rotating power cuts in Jakarta over the last couple of months have caused huge losses to industry. They are expected to last at least until the end of this year. A one-hour blackout stops water distribution for four hours, because the pump capacity fails. If the pipes remain empty for that long, rust can contaminate the water and make it unfit to drink. There are also blackouts in Sulawesi, another major island.

Cargill: Keep Free Trade and Let People Starve

Nov. 10 (EIRNS)—Paul Conway, a senior vice-president at Cargill, the world's leading agricultural cartel and commodities speculator, orders poor nations to starve, rather than abandon the British Empire's colonial doctrine of free trade. Self-sufficiency in food production is "a nonsense," he told London's Financial Times, in an interview published today.

"This crap just has to be denounced for the fascism it is," Lyndon LaRouche commented. It is part of the British Empire's intentional policy of depopulation, by reducing the planet's potential relative population density to way below the current actual population, and just starving people to death.

Conway, whose company manipulates global trade in agro commodities to benefit its own predatory interests, warned that at the upcoming Nov. 17-18 UN World Summit on Food Security in Rome, any drive by poor nations to demand food self-sufficiency in response to last year's food crisis, will fail. Forget about using subsidies or import tariffs to increase domestic food production, he said. "Promoting a free and open trading system whereby countries can produce what they are best able ... and surpluses can be traded across international boundaries, is the right way to go."

Largest-Ever Chinese Procurement Mission Travels to Taiwan

Nov. 10 (EIRNS)—A 3,000-person Chinese procurement mission arrived in Taiwan today for a week's stay, expecting to place at least $2 billion worth of orders with Taiwanese suppliers.

Lyndon LaRouche commented today, that sending this mission, the largest of its kind ever to travel to the island from mainland China, makes sense. "China has got a problem, which I've discussed," he said. Sending such a mission "is a reflection of the China and related policy decisions, which I've told people again and again, they made. This is a continuation of what I have said."

The mission is led by Liang Baohua, Secretary of the Chinese Communist Party in Jiansu Province, the highest-ranking official to have visited the island to date. The delegation is made up of executives from 61 companies, plus representatives from cultural, education, and tourism sectors, and is the latest of a series of such visits across the Straits this year.

China and Malaysia Agree on Development Projects

Nov. 11 (EIRNS)—In a state visit to Malaysia, Chinese President Hu Jintao signed five memoranda of understanding with Malaysian Prime Minister Najib Razak. Malaysia has agreed in principle to grant the construction of a double-track rail line in southern Malaysia to an unspecified Chinese company. Government officials earlier this year estimated that the track would cover 122 miles and cost $2.2 billion.

It will also be under consideration for Chinese companies to participate in a northern dam expansion, as well as an aluminum smelter and pulp and paper projects on Borneo island.

Funding sources for these projects was not disclosed. At the ASEAN+3 conference last month, China announced a $25 billion aid and loan package for Southeast Asia, $15 billion of which is in commercial credits.

China plans to increase its demand for Malaysian timber and palm oil.

China overtook the United States as Malaysia's biggest trading partner this year, with bilateral trade reaching $26 billion between January and September.