Trump Confounds The Nuclear Warmongers; Now For The Wall Street Free-Traders!
23 July 2018
LPAC—The European geopoliticians around London, and the American neo-cons and liberal imperialists, are so "deranged" by the continuing series of impossible summits which began in Singapore with President Donald Trump and Kim Jong-Un of North Korea, that is is clear their policy can really be eradicated.
The substantive problems being discussed at these meetings, especially involving the United States and Russia, are very difficult to solve. But the threat of thermonuclear war these geopoliticians are all too willing to risk, is being driven down. And the new economic and diplomatic paradigm launched around China’s Belt and Road Initiative, is providing the means to replace it entirely, with great-power cooperation for the economic and scientific progress of mankind.
But geopolitics can’t be killed off while the menace of "free trade" runs rampant. As Lyndon LaRouche wrote 15 years ago "On the Subject of Tariffs and Trade," the example of NAFTA is sufficient to illustrate that free trade ruined the United States, economically and socially. You don’t attack free trade without imposing Glass-Steagall separation on Wall Street banks, cutting off currency speculation, and issuing mutual credit for development to your trading partners, which increases your trade with them. Without that, tariffs are straws in the wind; they can’t be spun into the gold of "fair trade."
President Trump’s tariff actions against China may have the well-intentioned motivation expressed in his Twitter messages — to force a better economic "deal" between America and China, with a more balanced trade. But even if so, they have NO chance of bringing that about. Amid raging and unregulated, unrestrained global financial speculation centered in the City of London’s financial empire — and with a financial blowout of unpayable "high-yield" debt looming — tariffs between two leading global economic powers are impotent and futile. China is right on that point.
Let’s not forget NAFTA’s "first act": Mexico’s devaluation in December 1994; the peso’s "Tequila crisis" of 1995, a $52 billion U.S. credit line to bail out Mexican banks so that they could all immediately be taken over by City of London and Wall Street banks. That was the launch of the process of impoverishment, drug traffic, emigration, accelerated American deindustrialization, unemployment and social demoralization, derangement of American agriculture; the "ruin" LaRouche referred to.
Trump says he may tariff all Chinese products? More than $5 trillion/day in unregulated global currency speculation, in its City of London and Wall Street centers, will neuter that. It will successively devalue first the yuan, then the dollar, then the yuan again, and so on. It will wreak inflation and more depressed wages on America, cut China’s ability to issue credit, and threaten the great projects of the Belt and Road Initiative. That is until it triggers the threatening financial blowout, a worse collapse than that of 2007-08.
The President wants a new trade agreement with Mexico, and we can start by making that one really "fair trade": Break up the Wall Street banks that own the Mexican banks; ban dollar/peso speculation; issue — as Mexico’s President-elect Lopez Obrador has proposed — credit for rail, water supply, power development, desalination and new weather technologies, in Mexico and into Central America; export machine capital goods to Mexico.
The best, probably indispensible partner to the United States and Mexico in doing all this, will be China.
But the process consists in using what LaRouche called, in 2014, "Four New Laws To Save the Nation."