ZEPP-LAROUCHE WEBCAST

The Tables Have Turned on the Coup Plotters and Global Central Bankers

This is the edited transcript of the Schiller Institute’s New Paradigm Webcast of October 27, 2019. A video is available.

Harley Schlanger: Hello, I’m Harley Schlanger from the Schiller Institute. Welcome to our weekly webcast with our founder and President Helga Zepp-LaRouche. Today is Oct. 27, 2019; we have a couple of extraordinary, breaking stories to start with, but let me just say that we will not have a video feed from Helga, due to a technical problem, but I assure you, Helga is there and has quite a bit to say.

So, we’re going to start with the two leading stories: One is the ongoing, accelerating meltdown of the financial system, which you’re not hearing about from the media. And the other is just as an extraordinary development, the move to a criminal inquiry for Attorney General William Barr and the Connecticut U.S. Attorney John Durham who now will have subpoena power and quite a bit more. Helga, why don’t we start with their criminal investigation, the shift to that, because this has quite extraordinary implications.

Helga Zepp-LaRouche: Wow! This is really the big turn in the United States we hoped and knew would come, but now it’s here: You’d never know if you just read and listen to the Western media in Europe, for example, because they are telling their readers that the final blow to President Trump has arrived in the form of testimony of State Department official William Taylor, Jr., but this is absolutely untrue, and the coup plotters are just completely on the defensive.

Now, as you mentioned, Attorney General Barr has now a full criminal investigation against such people as Clapper, Brennan, Steele, and naturally, this all brings up the question of what Obama knew and when did he know it, and this is already coming up. And Barr has now the full power of subpoena; this will lead to a grand jury and as things now look, there will be penalties and prosecutions for criminal behavior. So this is really incredible.

Criminal Investigation of Coup Plotters

There is a very interesting comment, for our readers who want to somehow grasp the significance of this, coming from Larry Johnson, one of the founding members of the Veteran Intelligence Professionals for Sanity, an organization of former intelligence officials, to which Ray McGovern and Bill Binney also belong. Johnson wrote a commentary in the blog of the military-strategic analyst Pat Lang called “Sic Semper Tyrannis,” for those who want to check it for themselves. In that commentary, he says it is absolutely not a coincidence that three events came together:

First, is the announcement of the criminal investigation into the coup plotters (it didn’t say “coup plotters”), but in the various people who were involved in Russiagate against Trump and the coup in general; second, the fact that Michael Horowitz, the Inspector General of the Department of Justice, announced practically at the same time, that his report on the fraud against the Foreign Intelligence Surveillance Act Court will come out shortly. This very secret court oversees requests for surveillance warrants against foreign spies inside the United States. Obviously, they have been lied to many times by the various members of the Department of Justice and the FBI And third, that the government allowed Gen. Michael Flynn’s lawyer to fully expose the criminal conduct in the procedure against her client Flynn.

Now, this is also quite incredible, because what she already announced—her name is Sidney Powell—she says she has material showing that former Director of National Intelligence James Clapper, in a letter dated January 10, 2017, , ordered the star writer of the Washington Post David Ignatius, a very notorious member of the Anglo-American deep state (if you want to call it that) to “take the kill shot on Flynn.” Two days later, Ignatius’ article appeared, which then was very instrumental in the prosecution and ousting of Gen. Flynn as Trump’s National Security Advisor.

And remember, Gen. Flynn was not just anybody; he was the person who had gone to Obama already in 2012, as then Defense Intelligence Agency Director, telling him that various U.S. official entities had backed al-Qaeda and ISIS and various other terrorist groups, and had warned the President of the terrible destabilizing effect this would have, all of which was completely dismissed by Obama.

If you want to know why the jihadis developed the way they did, and why ISIS took over and why the United States was working with some of the same forces which had been responsible for the September 11, 2001 attacks, this was what Gen. Flynn was on top of and what he tried to fight against, and how it was that as National Security Adviser to President Trump, he got ousted through this operation.

So this is all coming out. And as I said, Larry Johnson who is a very senior analyst, basically says, that these three things—the criminal investigation, the Horowitz report, and the story around General Flynn—are all coming out together at the same time, is no coincidence, but it means a complete roll-back against this whole operation, and this is now really the big issue in the Russiagate and Trump question.

Schlanger: Helga, you mentioned former DNI Clapper. I just want to read a couple quotes from him delivered on CNN, saying he they were investigating Russian interference on the orders of President Obama. And he asked the rhetorical question, should he and the others have “blown off what Obama told them to do?” So, he’s now openly admitting that this came from Obama. This is quite a significant blow to this coup operation, isn’t it?

No Honor

Zepp-LaRouche: Well, what happens when such operations fail, the people who are conducting such coups and conspiracies, don’t have much honor among themselves but they are easily ready to throw each other under the bus. And in this case, Clapper is clearly pointing to Obama, and saying we did all of this only because we were ordered to do so. So, I think Obama will not be very happy about that, but here you go!

Schlanger: And concerning Ukraine and impeachment hoax, we’ve been covering this in full, that this is not just about Hunter Biden’s corruption; it has to do with the strategic slant. But that seems to be thinking of the people running this side of the coup, Adam Schiff and Nancy Pelosi, that they have Trump “dead to rights,” but that’s not true, is it?

Zepp-LaRouche: No, not at all. First of all, whatever this Taylor testified—first of all this was a Star Chamber testimony. In other words, the Democrats held hearings for two weeks which they did not allow the Republicans to participate in, so it was exactly what the British did in the American Revolution, which was one contributing factor for that Revolution to occur. It was so bad that at a certain point, some 20 or so Republican congressmen barged into this hearing and broke it up, essentially, which caused a big freak-out. But they said they would not tolerate this to go on.

What Taylor is reported to have testified to on Oct. 22 was that Trump told Ukraine President Volodymyr Zelensky that he would withhold $400 million in U.S. military aide unless Zelensky personally announced that he would open an investigation into Biden’s role in 2016. And this was called by the media “the breakthrough” testimony which dooms the President and so forth.

But none of this is true: First of all, President Zelensky already publicly said that there was absolutely no such quid pro quo, in other words, that indeed Trump did ask him to investigate and assist Barr in his investigation of Biden’s role in 2016, but this was a formal request and there was no blackmail, there was no tying that to military aid or holding up such aid, so this was a lie already, and, this fake story was contradicted by the President of Ukraine!

So, then the Democrats accused Trump of abusing his Presidential powers by running a back-channel to Zelensky, including using Gordon Sondland, the new U.S. Ambassador to Kiev, Kurt Volker, the Special Envoy to Ukraine, and Energy Secretary Rick Perry; and that he would also have facilitated a channel for Giuliani to investigate the interference in Ukraine on behalf of Hillary Clinton in 2016; that Trump would have misused his powers by asking Zelensky to help Barr investigate all of this; and also that part of his crime was recalling Ambassador Marie Yovanovitch; and exposing Joe Biden’s role in the firing of the prosecutor of his son Hunter Biden, who was sitting on the Board of this firm Burisma. Burisma plays a very shady role in all of this.

A Constitutional Presidency

All of these things should be looked at exactly the opposite way: Trump was only carrying out the Constitutional right of all U.S. Presidents, namely conducting foreign policy with Presidents of other countries, so there was absolutely nothing wrong in that. But the story becomes more interesting when you look at all of the people involved against him.

Who, for example, is William Taylor?

What we are really looking at here is a large apparatus deployed by one can say the neo-cons, or the Democrat neo-cons—that is sometimes not a difference—which after the collapse of the Soviet Union broke all promises given to Soviet Leader Mikhail Gorbachov at the time, not to move NATO to the borders of Russia.

This same apparatus was involved in regime change, , in the Orange evolution against Ukraine, later in the Maidan, but also in similar color revolutions in other former Soviet Republics. So this is quite a story. For example, U.S. Ambassador Yovanovitch replaced the famous Geoffrey Pyatt, who was Ambassador to Kiev at the time of the Maidan coup. Remember the phone call of Geoffrey Pyatt with Victoria Nuland was leaked somehow, and they basically said we said we have to get our guy “Yats,” meaning Arseniy Yatsenyuk, in as Prime Minister. She also used the famous four-letter word against the EU that starts with F and ends with K. This is the apparatus.

And Taylor also has a career: He was in the diplomatic service in the State Department in the ’90s, when the economic shock therapy against Russia was applied. He was involved in various operations in Afghanistan, Iraq, at the time of the Ukraine color revolution.

This was the apparatus that was fully involved in trying to contain Russia by moving NATO to Russia’s borders, by trying to change the regimes in all countries which were not in favor of toppling Russian President Vladimir Putin. This is the apparatus that acted to prevent Trump from having better relations with Russia. Even as he was promising U.S. voters to bring about such better relations, as a candidate in 2016, this operation was already in full swing.

This is really the issue: The tables have turned. Look at all of these developments exactly from the opposite side. Now, you can understand why Russiagate took place, why now the new phase, what was supposed to become Ukrainegate, why all of that is part of the same British-instigated coup against Trump: because he wanted to improve relations between the United States and Russia.

The 2014 Nazis

Now, the tables have completely turned. The conspirators will be investigated, and I’m pretty sure that one thread will lead to another one, and the whole fabric of the story will be unraveled, including the background of the coup in 2014 against Ukraine President Viktor Yanukovych, bringing in a government heavily infiltrated or mixed with Nazis of the Stepan Bandera tradition. So we’re looking really at a very, very dirty story which is now all coming out in the open.

Schlanger: I encourage our viewers to go to larouchepac.com, where on a daily basis, we’ve been writing stories about this, having videos on it, so you can get all the details that Helga just touched on.

Now, as all this is unfolding, Helga, we also have new reports on what you’ve been covering for the last months: the escalation of the financial crisis, the likelihood of an implosion sometime, not too far ahead. I think In a speech by Mervyn King, former Governor of the Bank of England to the 2019 annual meeting in Washington of the IMF, he warned that the world economy is “sleepwalking” toward a new financial crisis. But why don’t you update us on what’s happening with the financial system?

Zepp-LaRouche: If you read the official financial media, there’s almost nothing about this. But we have absolute evidence. Investigate it yourself by going to the website of the Federal Reserve and look at the financing they’re doing. You’ll find out that since mid-September, they have significantly increased the so-called “repo” credits, that is, the overnight lending of the Fed to various banks. At a certain point it was $60 to 75 billion per day, and now the level is at $120 billion. And the volatility is still there.

Behind the scenes, there are clear signs the insurance companies are in trouble, because they have extensions to derivatives. With growing U.S. corporate debt and the inability of the central banks to keep the interest rate down, it is an extremely volatile situation. Financial gurus like fund manager Dirk Müller, who is known as “Mr. DAX,” (from his days on the floor of the Frankfurt Stock Exchange) came out saying that we are facing a giant, new crash, and the difference with earlier situations is that all the regions of the world today are connected and therefore, we’re sitting in one big boat. He mentioned as additional factors that real industry is badly affected, because the German government, for example, is going against the auto industry; and the two major German banks, Deutsche Bank and Commerzbank, are in serious difficulties (to put it mildly); but I think there is an even more interesting dynamic at play.

We have warned that the neo-liberal system is not working. As a matter of fact, my late husband Lyndon LaRouche warned that this system is finished. In a famous video webcast on July 25, 2007, The End of the Post-FDR Era, he emphatically said, this system is finished and all we see is the different aspects of it coming to the surface.

Then, as people may remember, after the secondary mortgage market crisis in the United States in 2007, Lehman Brothers filed for bankruptcy in 2008, followed by the collapse of the global insurance firm AIG mid-September 2008. Then would have been the moment to make a complete, dramatic reform, and eliminate the causes for this systemic crisis. But as we now know, those who could have done so, didn’t There was a brief discussion about the need to have a New Bretton Woods—then French President Nicolas Sarkozy, for example said that under the shock of the situation. But then, later, at the G20 meeting in November 2008 in Washington, the fix was put in, and the most gigantic bail-out operation in history, ever—I think it altogether came to $23 trillion—was put into motion.

Bury Brutal Austerity

Now, things are different. All the tools of the central bankers have now been used up: quantitative easing, zero interest rates, even negative interest rates, money pumping to no end, now these lending overnight repo credits. It’s just the end of the system.

But their maneuvering was not confined to monetary bail-out operations, but was always combined with brutal, brutal IMF austerity. The European governments even put the “black zero,” the requirement that expenditures cannot exceed revenues, in their national constitutions.

As a result, a lot of the real (physical) economy has been destroyed! Living standards have been collapsed, and now, we are in a situation where the consequences of this policy is leading to anti-austerity mass strikes in practically every corner of the world. The financial policy is causing incredible social ferment.

Chile, for example. Chile was always peddled as the model of the neo-liberal economic system. We denounced that policy in two EIR articles in 1995, the first, “Privatized Pension System: the Apple of London’s Eye,” and the second, “Banking Crisis Explodes in Brazil.” It was a brutal, genocidal austerity program, and could not work. And now you have, in the last few days, 2 million people in the streets. In Santiago, more than 1.2 million people. The total population of Chile is only 18 million, so almost 20% of them were in the streets. Then you have Ecuador, Bolivia, Lebanon, Pakistan, Iraq, France, Germany, Ethiopia. Today, Argentina is holding an election, which will probably bring in as President Alberto Fernández, and Cristina Fernández de Kirchner as Vice President, both of whom are completely at odds with the IMF.

So, I think what we are looking at is the beginning of the end of the neo-liberal system, and this is really big!

Schlanger: Wow! It is quite exciting, when you think about it. And it’s global, it’s something that cannot be stopped.

Syria

Now, at the same time, we heard howling from the neo-cons against Trump’s orders to pull U.S. military forces out of Syria, predicting horrible consequences. Actually, a horrible situation is turning into something quite the opposite. Presidents Putin and Erdŏgan met, and now there is stability on the Syria-Turkey border. How does this look to you, Helga?

Zepp-LaRouche: I think the situation has clearly shifted, with behind-the-scenes cooperation between Putin and Trump, which is clearly there, the announcement by Trump that he wants to pull out supposedly endless wars; the fact that Erdŏgan was in Sochi and clearly has an agreement with Putin, which includes the Adana agreement which was signed between Syria and Turkey 21 years ago, and allows for a certain amount of activity for what Turkey was doing; and the fact that there is now the idea to include the Damascus government in the negotiations which creates a viable basis to solve this problem.

Now, obviously, there are forces that are absolutely hysterical about that, and it isn’t so clear cut, because, for example, the Russian Defense Ministry accused the U.S. military of smuggling oil out of the oil fields in Syria, getting a monthly revenue out of that of $30 million. On October 25, U.S. Defense Secretary Mark Esper announced that the U.S. would leave troops in eastern Syria to guard Kurdish-controlled oil fields from ISIS. But if you look at the statement by Maj. Gen. Igor Konashenkov, the spokesman for the Russian Defense Ministry, that may be actually an effort by the military-industrial complex to prevent what Trump is announcing about troop pullouts.

Overall, the situation in Syria looks very good. A significant number of people in the West recognize that Trump has won, he has absolutely won, and that there is now the basis for reconstruction. So therefore, I think this late proposal by German Defense Minister, Annegret Kramp-Karrenbauer (AKK), to send the Bundeswehr into the northeast of Syria to protect a security zone, comes really late. Russia has already said it’s not needed. I think the Bundeswehr is already overstretched, so this is a really unnecessary and almost impotent proposal, with AKK trying to profile herself as the great strategist. But I don’t think this will fly.

The situation is evolving. There is a complete realignment going on. Turkey, still a member of NATO, insists that they have the right to do as much negotiations and dealings with Russia as they are doing with the United States, so the Turkish Defense Minister Hulusi Akar insisted that it was basically the right of Turkey to discuss with Russia the sale of Su-35 fighter jets. And when Erdŏgan was in Sochi, Putin showed him also the Su-57 stealth fighters, and there’s discussion that Turkey will manufacture some its parts.

So I think this is all going in an interesting direction, and the West European countries, rather than opposing it, should participate in the reconstruction of Syria and of Iraq. The demonstrations in Iraq show that the living conditions for people have become intolerable! Afghanistan’s only chance to ever be transformed into a more modern country is if there is real economic development. The same is true for Yemen, a country bearing up under the worst humanitarian crisis for a long, long time. The Western countries should not continue to play the geopolitical games, but help in the reconstruction, and join hands with Russia, with China, with Iran, to rebuild this devastated region.

U.S. & China

Schlanger: Speaking of geopolitical games, we also have this pathetic speech from Vice President Mike Pence of October 24 at the Wilson Center in Washington, attacking China, which was responded to very strongly by the Chinese.

And it looks as though there’s some positive motion on finalizing Phase One of a trade deal between the United States and China. Please tell us something about that, Helga.

Zepp-LaRouche: Yeah, I think it could have been worse, but both the Chinese side and also the American side, said that they’re optimistic that Phase One is actually going to be concluded. But, you know, when you have such absolutely violent anti-China statements all the time, like those coming lately from Vice President Pence, who just repeated the entire litany of accusations against China, it really doesn’t help to create the kind of environment for cooperation between the two largest economies of the world, on which, really, much of the fate of the rest of the world depends.

So, Chinese Foreign Ministry spokeswoman Hua Chunying answered Pence’s very hard—and also Pelosi, who had said something similar, saying they and their likes were distorting facts, blinded by prejudice. An op-ed in the October 26 issue of Global Times accused Pence’s speech of showing “arrogance, hypocrisy, bias and lies on China.” These are all stronger words than one is used to reading from the Chinese. So one can only say that all the attacks on China are really counterproductive, because what China has accomplished is an incredible economic miracle, overcoming poverty not only in China, but contributing to poverty alleviation around the world.

I think the anti-China attacks are really something of the past, and hopefully this opposition to Trump in the United States will now get investigated; that will also take some of the wind out of sails of these people.

Schlanger: Finally, we have a very delightful story coming from Sochi, the meeting that just took place between Vladimir Putin and the nations of Africa. You’ve been talking for some time about the importance of the Chinese role in developing Africa; now we see the Russians going in with big plans. How does this work out? What was it that Putin proposed? Obviously, he was well received by the Africans.

Zepp-LaRouche: Well, this was a big, big summit, the first Russia-Africa Summit. All 54 African nations sent delegations and 43 of those nations were represented by heads of state or government.

The scope of their deliberations was very far-reaching: joint work in security, the fight against terrorism, the fight against dope traffic, but also economic cooperation. Russia concluded Memorandums of Understanding with about a dozen or so African nations, according to which Russia will help them to build nuclear power plants; they otherwise agreed to engage in very broad trade and economic cooperation. It was really a very exciting thing. Almost two years ago at the BRICS summit in Johannesburg, South Africa, Putin offered that Russia will help to electrify, to turn on the lights, in all of Africa. The Russia-Africa Summit was a very big step in this direction.

Russia-Africa Summit

So now you have—besides China—Russia taking a leading role in the development of Africa. I think this is very important in the fight against terrorism. And also if Africa is to have nuclear energy, this is a very important step, so I’m very happy, because soon the African nations will have more nuclear power than Europe—Well, I’m not happy about that, but I think this is a good incentive, a kick in the behind of some of these greedy ideologues in Europe, that Europe will be sidelined completely and Africa will grow. For Africa this is very good; for Europe this is obviously very terrible.

But I think this is optimistic. For example Alexey Likhachov, the CEO of Rosatom, the Russian state nuclear energy corporation, reported that for every dollar which we invest in nuclear energy or in other forms of energy, two dollars will come out in return. For every half-megawatt of electricity we build, there will be 2,000 new jobs. And they also discussed many scholarships for students from a dozen countries in Russia. And all of this is very good, because Africa, which is a huge continent—it’s unbelievably big—and by 2050, it’s expected there will be 2.5 billion people, so the only way how that can become an economic powerhouse, which it must become, because otherwise you will have a refugee crisis of unbelievable dimensions, is to create hundreds of millions of new jobs for young people. So, Russia has taken a major step in that direction. And Putin also cancelled $20 billion in debt owed to the Soviet Union by African countries, on which not even the interest was being paid, in any case, so that is just cancelled.

So, I think this is really good. This is good news, and people should not freak out about geopolitical competition, because it would have been the privilege of European countries, or the United States for a long time to do likewise, but they didn’t, and now China and Russia are doing it, so they should join hands with these countries, rather than “by opposing end them.”

Schlanger: To conclude, Helga, you just presented a very impressive and sweeping picture of changes and of turning of the tables, as you said, against the coup plotters, the global bankers. What should listeners do to participate in this, to make sure it’s concluded successfully?

The Pukey Green New Deal

Zepp-LaRouche: I think they should help to get rid of the Green New Deal, because, if you think about it, this Green New Deal will blow out the financial system for good. It is the opposite of what some of these financiers and central bankers wish, that the green financing will lead financial streams into green technology and create a new boom, and postpone or avoid the crash. The opposite is going to happen. Already, Reuters has warned that the spread of strikes and protests around the world will blow out the system because it will force the governments to loosen up on the austerity, and this will make the investors very nervous, and that will trigger the crash.

These protests aren’t yet related to climate legislation—they are “just the result” of neo-liberal austerity. If the Europe proceeds with what von der Leyen, the President of the EU Commission, has announced that she will implement in the first 100 days that she is in office, that will force all industrial firms to go green in order to qualify for green financing, which the central banks, as Governor of the Bank of England, Mark Carney, proposed at the Jackson Hole annual bankers meeting. He said that the banks must dictate to the governments that only such green financing should take place—if they go ahead with that, the social unrest will blow up the globe.

A Beautiful Future

This is completely untenable: So what you, our listeners and viewers should do, is join with the Schiller Institute. Contact us on our webpage. Get active with us. We are in a crash mobilization to implement the four laws of my late husband, Lyndon LaRouche: Glass-Steagall banking separation; then, we need national banks in the tradition of Alexander Hamilton; and a new credit system, a New Bretton Woods international agreement which allows for credit financing of large projects, like the New Silk Road projects around the globe. And then, international cooperation as a model for future cooperation among states in working together on a crash program for fusion, and international space cooperation. With these policies we can solve all of our economic-financial problems.

I think the key thing is, if you look at the news, and you see the mass protests in Chile, don’t think “this is very far away.” This is coming home very quickly, and we need the kinds of reforms I just mentioned, and then we can solve them. But we need people to get active, and not sit on the fence.

Schlanger: And I’ll emphasize it, even though you didn’t: It’s even coming home in Germany, now.

So, Helga, thank you very much and we’ll see you next week.

Zepp-LaRouche: Yes, I hope we see each other!