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This transcript appears in the July 27, 2018 issue of Executive Intelligence Review.

[Print version of this transcript]


Trump-Putin Summit Brings
World Closer to New Paradigm

This is the edited transcript of the July 19, 2018 Schiller Institute New Paradigm webcast, an interview with the founder of the Schiller Institutes, Helga Zepp-LaRouche. She was interviewed by Harley Schlanger. A video of the webcast is available.

Harley Schlanger: Hello, I’m Harley Schlanger from the Schiller Institute. Welcome to our webcast this week, featuring our founder Helga Zepp-LaRouche.

Helga, it’s only been a couple of days since the summit in Helsinki, and yet it’s clear the world has entered a new phase of strategic relations. The summit itself was an incredible success, and you can tell that, because immediately, those who had been doing everything they could to sabotage the summit, are now trying to sabotage its results. The President is accurate in characterized their madness as “Trump Derangement Syndrome.”

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White House/Andrea Hanks
Presidents Trump (left) and Putin hold a joint press conference at the Helsinki Summit on July 16, 2018.

I think it’s important we start with what actually happened at the summit, because the media, in their coverage of what they wanted Trump to do and what he didn’t do, ignored what actually did happen between the two Presidents. So, why don’t we start there, Helga?

Helga Zepp-LaRouche: Indeed, this was a very historic summit. The fact that the leaders of the two most important nuclear powers of the world have opened up a dialogue between them, is really is important for world peace. As noted by Trump, and also I think by Putin at some point, together they represent countries possessing more than 90% of the world’s nuclear weapons. With the promise of many more summits to come, they have moved away from the don’t-speak-with-each-other pressure imposed on Trump by the Russiagate coup plotters against him. This impasse is now broken. There was good chemistry between them, as reported by both sides. Both presidents clearly appreciate the fact that they represent large countries and feel responsible to their own countries first. However, they also know that their dialogue is, as I said, of uppermost importance for world peace.

So, given the fact that there was such a huge effort to prevent the summit from happening, it does represent an enormous breakthrough. What we do know about what was agreed upon at the meeting, is of truly extreme importance. They decided to set up four continuing joint working groups—one on economics for business leaders from both countries to meet to discuss proposals for successful business cooperation; one on military and anti-terrorism issues; one will be an expert council of political scientists, prominent diplomats and former military experts to look for points of contact between the countries to move the dialogue and interaction forward; and one on cyber-space—the two National Security Councils have already started meeting.

Now, the joint working group on cyber-security is the most interesting one, because it once again shows that Putin is an incredible strategist. While U.S. Special Counsel Robert Mueller (or “Muller“ as he likes to call himself) decided at the last minute to make another desperado operation, by charging 12 Russian military officials of having meddled in the U.S. 2016 elections—a last-ditch effort to sabotage the atmosphere of the summit, Putin made a very smart offer, inviting Mr. Mueller to come to Russia to investigate these 12 individuals.

Putin’s proposal is absolutely brilliant. Mueller probably thought that he would never have to produce any evidence, assuming that the Russians being charged, living in Russia, wouldn’t come to the United States; there would never be a trial on the alleged evidence. Putin’s inviting Mueller, himself, to come to Russia and investigate and interview people is a very brilliant move. Should Mueller refuse, he will really look bad. Putin reciprocally proposed that Russian specialists be permitted to go to the United States to interview former U.S. Ambassador to Russia, Michael McFaul, and Bill Browder, a crooked investor, who Putin says swindled the Russian state out of $1.5 billion in tax money. Interestingly, Christopher Steele is related to the Browder case, the Ukraine story, and Russiagate.

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CC/Rod Searcey
Michael McFaul, former Ambassador of the U.S. to Russia.

The White House has confirmed that Putin’s proposal for such reciprocity was discussed between Putin and Trump. I think that this is probably the most brilliant outcome in the short term. Hopefully, in the long term, both countries will take up nuclear disarmament which their leaders discussed, while acting together to bring calm to the various hotspots around the world. It’s also very good that Putin promised that he would support Trump in the American efforts to solve the North Korea crisis.

From our colleagues in America, I have received reports of tremendous positive response to the Trump-Putin summit. Many people are coming up to LaRouche PAC information tables saying, “I did not vote for Trump, but look at what he’s doing—first, North Korea; now this summit with Putin. He’s actually doing something very important.”

Any sane person should be happy that the two largest nuclear powers, have indeed found a channel of communication at the highest level. If you contrast that accomplishment with the insanity of the media, and the loud-mouthed geopolitical politicians—one can only conclude that some of these people actually have deranged minds, not only the “Trump Derangement Syndrome.” They are truly deranged; any person, who values world peace, should be happy about these developments. Remember that the U.S. military-industrial complex and its assorted hangers-on, need an enemy-image of Russia in order to keep their budgets intact.

This summit was really a breakthrough for civilization, and we should all be very happy about it.

Finally, Free Us From the British Empire

Schlanger: Leading into the summit, President Trump said repeatedly that neither Russia nor the United States would want to get into an arms race, and that preventing this is something that should be discussed. He also specifically talked about cooperation in Syria between the militaries of Russia and the United States.

What are the people who are attacking this doing? They’re saying we need confrontation, whereas Trump said he would prefer diplomacy to confrontation.

Helga, this is all happening with the backdrop of the Mueller case. You mentioned the indictment of the 12 Russians before the summit, to try and break it apart. To go back a step, there was tremendous concern from the NATO countries that Trump was going to do something that would harm the U.S.-NATO relationship. You talked about ending the era of geopolitics. I think it’s worth a second to look at what the geopoliticians are most afraid of, about what Trump is doing. Coming out of this summit, are we seeing the beginning of the end of the era of geopolitics?

Zepp-LaRouche: It’s an important step in that direction. Look at the media response to this summit, and make a list of those media personalities who are screaming the loudest. Remember their names, because I can say with close to 100% certainty that at the next such occasion, it will be these same people who will try to manipulate public opinion again. It’s actually useful to look at it this way: look at the public agents of what we call the British Empire, called by some in the United States, the Deep State—but that description is inadequate because it leaves out the British Empire direction, and outlook, of this mafia.

Since 1997, at least, my husband Lyndon LaRouche has said that in order to break the control of what we call the British Empire—which is not identical with Great Britain, it is the City of London/Wall Street control of the international financial institutions and also the elements of the military apparatus in cahoots with these interests—you need a great power alliance, including the United States, Russia, and China, and hopefully also India. Then you can add other countries to it.

However, you do need these large nations, which are economically, and militarily the strongest ones, and also the most populous, in order to define a New Paradigm, a new set of international relations. While we are still very far away from that new great power alliance, China has in fact created the New Silk Road dynamic, deliberately, explicitly based on the idea of respect for national sovereignty, respect for different social systems, and the principle of non-interference.

More and more countries are joining with the New Silk Road perspective, which includes importantly, the very deep strategic partnership between Russia and China. It is noteworthy that both Trump and Putin at the Helsinki summit talked about their “mutual good friend Xi Jinping.” And it’s also very important that China welcomed this summit, saying that it greatly contributes to saving world peace and bringing the world into order.

I think we should not be exuberant, however, because this is just a first step, and there are still insane reactions coming from inside the United States, from Democrats and also from some Republicans. One Democrat Congressman from Tennessee, Steve Cohen, went so far as to demand a military coup against Trump! These people are absolutely out of their minds. Some House Democrats began demanding that Trump’s translator testify publicly in Congress on what the two Presidents discussed in their private one-on-one. This is really a high degree of hysteria. We also have Sen. John McCain and other people talking about “treason.”

The treason being committed is, however, from those who are pushing for war! All such people are willing to risk nuclear war and the extinction of civilization, rather than have good relations between the United States and Russia. The big question here is who is actually committing treason?

It’s interested that Putin commented on those criticizing the summit, saying that there are some people who, for their petty party politics, are risking the big issue of war and peace. They should really be ashamed of themselves—I’m saying that; I’m not quoting Putin.

So, it is an important step. The world is in a very rapid strategic realignment, with man nations including India, Japan, and most African nations and Latin American nations being part of this realignment. It is a good directionality. A lot will depend on getting to the bottom of Russiagate. If the United States and Russia are willing work together to investigate that, which they’re now set to do with this committee on cyber-security, I think the danger can be eliminated. That cooperation between Russia and the United States will be an important step.

Schlanger: You mentioned earlier that we’re getting readings that from the United States that many people actually feel liberated that Trump did this. From the radio interviews I do, I can report, that there’s a tremendously positive response to Trump having the courage to go ahead with this meeting—in spite of Russiagate, in spite Mueller’s grandstanding with 12 indictments of Russians right beforehand. Many people really see this just concluded summit as an opportunity to finally defeat the British Empire forces that have run the post-Cold War order and now put us on the verge of a new hot war.

I want to bring up something you were just discussing: China. We have just produced a new, extremely important and timely report. The approach taken and the developments discussed in that report really constitute the alternative to the war policy of the Bush and Obama regimes; this is what Trump has to go towards: the Eurasian Land-Bridge. I’d like you to say a little bit about this new report.

Closer Africa-China Partnership

Zepp-LaRouche: As some of our viewers may know, we published the first World Land-Bridge report in 2014 under the title The New Silk Road Becomes the World Land-Bridge. That report found quite a resonance in the world; it was translated into Chinese immediately by Chinese institutions and was distributed widely to teaching faculties and think tanks. Then it was translated into Arabic and German.

In November 2017, the Schiller Institute published a Special Report, Extending the New Silk Road to West Asia and Africa: A Vision of an Economic Renaissance.

Now the Schiller Institute has released an expanded and updated 2018 report The New Silk Road Becomes the World Land-Bridge: A Shared Future for Humanity, Volume II. Taken together, these reports constitute a comprehensive blueprint for development in Africa, in building the economies of Southwest Asia, and also the Eurasian connections, as well as important projects in the United States and Ibero-America. These reports are absolute must-reads for anyone developing an interest in the New Silk Road and who wants to recognize the tremendous potential for all economies in the world to prosper.

One big feature is Africa, on which today there is a great focus because of the refugee crisis, but also because there is in Africa right now a tremendous potential for economic development. China’s President Xi Jinping just started a trip which will take him to Senegal, Rwanda, Mauritius and South Africa. South Africa is the host of the 10th Annual BRICS summit, which will take place July 25-27. Xi’s tour is expected to lead to a total upgrade in Chinese investments and cooperation between China and Africa, already at an excellent stage.

In September, there will be a summit meeting of the Forum on China-Africa Cooperation (FOCAC) in Beijing of African leaders, which is expected to define a completely new level of cooperation and partnership between Africa and China.

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Xinhua/Wang Ye
Xi Jinping, President of China (center foreground), with his wife Peng Liyun (behind him) and Macky Sall, President of Senegal (right foreground), with his wife Marieme Faye Sall (behind Xi’s right shoulder) in Dakar, Senegal on July 22, 2018.

We in the Schiller Institute are engaged in a campaign—we’ve discussed this already in some previous webcasts—to have the “Singapore model” applied to Africa, by getting the leaders of European and African nations, and hopefully also Xi Jinping, together in a summit that would announce a crash program for the infrastructure development of Africa. That was the subject of our June 30-July 1 conference, and I really urge all of you not only to buy a copy of this World Land-Bridge report Volume Two, which is an absolute eye-opener for anybody who wants to look into the future, the possibilities for development; but I also urge you, in case you haven’t done it yet, to please watch the all the speeches from this conference in their totality.

The real difference and therefore significance of this conference, is that instead of just an analysis of particular problems, we discussed solutions. The conference participants also engaged in very important discussion about Southwest Asia and Africa, and about the reestablishment of international law. Many people recognize that we are in urgent need of going back to an idea of international law which is focussed on the general welfare of the people of the world, because the “survival of the fittest” idea of law has dominated the world in the recent decades.

This is all very important material. If you agree with our approach, you should become a member of the Schiller Institute. The Schiller Institute is a membership organization, because we want to create a Renaissance, and to do that, many people need to be engaged in sharing and distributing these positive views and development ideas.

Hysteria and Possibly War

Schlanger: Helga, one of the things that people are wondering about in the United States, is, in the aftermath of the NATO summit, which was quite frictional, what’s the response in Europe to the Trump-Putin summit? Do you have much on that?

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Giuseppe Conte, Italian Prime Minister.

Zepp-LaRouche: Well, it’s quite mixed. There was a very positive reaction from Italy. Prime Minister Giuseppe Conte welcomed the summit; Salvini, the Interior Minister, and head of the Lega party, invited Putin and Trump to hold their next summit in Italy. His comment about the summit was “Well done, well done, Presidents.” Conte will also meet with Trump soon, and will also go to Moscow, so the diplomacy is very active.

Other reactions were much much worse. The German Foreign Minister mocked the summit. People with that type of attitude are so stuck in their geopolitical, backward looking, always-in-yesterday mode, that they are totally unable to have any vision for the future. Trump did attack the EU, calling it a “foe.” Everybody in Europe was completely freaked out about that. The German proverb, “When you shout into the woods, it shouts back,” well describes the effect being experienced by Europe’s geopolitical elite. Look at the hysterical reactions of these Europeans from the first hour of Trump’s election victory, they called him the most derogatory names you can imagine. I’m not surprised that Trump doesn’t have a high opinion of these people.

On the other hand, a very measured response has come from some former diplomats who have said that it’s good that these two largest nuclear powers are talking to each other. One former German ambassador said, “Europe should think more about its independence in its own way.” I’m not against that all I think the policies of Brussels and Berlin depend not so much on Washington, because the moment Trump became President it became clear that it’s not Washington as such that they feel subject to, but it is the British Empire. And I think if there is more independence from that, so be it. The New Paradigm is already on the horizon.

The best way to overcome the present tension would be to welcome the cooperation among the United States, China and Russia, and become part of that! There is a higher level of reason, where you can solve these problems, and I think the world needs to urgently move with a completely different way of thinking, what I call the New Paradigm. And for sure, overcome geopolitics, because geopolitics is what led to two world wars. If you don’t get rid of geopolitical way of thinking, the danger exists of the extinction of civilization. For example, Paul Craig Roberts is very pessimistic. While he welcomed the summit, by looking at Trump’s opposition, he predicts that there will be a war as a result of it. And if these voices have their say, Roberts may not be mistaken.

A very interesting comment came from a column in Lang’s blog, Sic Semper Tyrannis, by someone writing under the pseudonym Publius Tacitus. I really would like people to read it, he says that those in the United States who are quick to blame Putin and Russia for everything should be aware that the United States has a history of intervening in other countries and ousting elected leaders—under previous administrations—and so the anti-Trumpers are sitting in the biggest glass house of all.

Such commentaries are extremely important and should be shared widely to counter the absolutely disgusting, mainstream “presstitutes,” as Paul Craig Roberts likes to call them—a very appropriate name for people who are really, really doing a disfavor to their nation and to humanity as a whole. We should outflank them rather than pay attention to lying journalists who are provocateurs.

Wipe Out Speculation, Create National Banks

Schlanger: One relatively influential person that I speak with told me after the summit: “I’m sure this summit makes Lyndon and Helga very happy, because of their life’s work oriented toward the Four Power agreement.” And then he had a question for you. He said that he’s heard you talk recently about the reestablishment of the Bretton Woods system, or a New Bretton Woods system. He said he researched this, and he saw that Lyndon LaRouche was putting this forward in the 1980s. He asked me to ask you: “How would a New Bretton Woods system work, and does it require active support from Russia, China, and the United States? Would that be enough to implement it?”

Zepp-LaRouche: The germ form of such a system already exists, in the e financial institutions associated with the New Silk Road: the Asian Infrastructure Investment Bank; the Silk Road Fund, the Maritime Silk Road Fund, the New Development Bank of the BRICS and many similar institutions including the emerging Africa investment fund. There you have regional institutions which already are lending for the real economy, rather than for speculation.

China is in the process of curbing speculation altogether. There has been a drop in international investment on the part of the Chinese, but that is mainly due to the fact that China is now outlawing speculative investments abroad. There are some countries that are already doing the right things, but obviously, the big, dark cloud on the horizon is the condition of the Western financial system, which is in terrible shape; for example, Deutsche Bank, with its Level 3 derivatives. There is a big worry about the future of the euro because of the so-called Target 2. Some people argue that this is all money which is irretrievable for some countries. There are many storm clouds on the horizon, notably the corporate debt bubble.

We will need some type of debt conference to get rid of the derivatives—Level 3 derivatives for sure, but also to untangle the speculative aspect, and then completely wipe out the speculative holdings. We can then establish institutions to create a credit system, with national banks in each country, and fixed exchange-rates among the currencies, perhaps with a gold reserve standard. Then the world would have a stable financial governance China has been calling for.

There has been no such set of proposals coming from Europe or the United States, but again, Italy may be an important factor in triggering such a discussion. Italy is the third-largest economy in Europe, and several ministers, and deputy or assistant ministers, have called for Glass-Steagall and a National Bank.

These are only steps in the right direction. The best thing that could happen would be that President Trump carries out his election campaign promise, namely, to implement Glass-Steagall, to go back to the American System of economy, and then reach out to the other countries to establish some kind of New Bretton Woods agreement. Such a happy action is not to be excluded, because he has a good record of bringing about his election promises.

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Deutsche Bank is teetering. Deutsche Bank twin towers shown here.

So, if each country would set up a National Bank and its own credit system, clearing houses could be set up to discuss and negotiate long-term, international investment among the countries. It would be the responsibility of such clearing houses to seek equitable arrangements among the countries, considering their many differences: large countries with lots of raw materials and few people, like Russia; countries with small territory, relatively densely populated, with high-level industry, like Germany, Switzerland, Belgium; and small countries with few people and little industry. But all of these countries should somehow be part and partners of such a New Bretton Woods agreement, and that can be set up pretty much according to the model of the old Bretton Woods system.

I think this is definitely a discussion which should be held on an international level. One of the really big, threatening problems, still rumbling, is the potential of a disorderly financial collapse. That threat must be countered, by setting up a new financial architecture. With the New Silk Road, with the Belt and Road Initiative, there already exists the framework of the kind of model of cooperation among nations which is needed.

That is why we in the Schiller Institute are making such an effort to convince people of the benefits for every country participating in the New Paradigm, because that would really be the best way to have an orderly transition into a new set of international relations. And that is not an option. I think this is an absolute must, if we want to avoid chaos. Out of chaos there is always the danger of war, so this discussion is very timely and very urgent.

Schlanger: Imagine the reaction of the opponents of Trump, were Trump to do such a thing. The same people who today are arguing for war rather than diplomacy, would argue for the collection of their unsustainable debts, even to the extent of killing people, rather than taking the risk of writing down or writing off debt that never will be collected.

Helga, we’ve covered a lot, but I want to make sure that if there’s anything else you want to bring up, you have the option to do so.

Find Out What Is Happening in Africa!

Zepp-LaRouche: I can only really invite you, once again, to join with us, because it is absolutely possible to reach a new era of civilization in the short term. I think you will agree with me that dramatic changes have taken place since the New Silk Road has been on the agenda, which is less than five years. A completely new optimism has emerged in Africa as a result of the New Silk Road policy. A new spirit has given Africans a completely new sense of self-confidence, that they can make the transformation into industrial countries, that they can create large middle classes, overcoming poverty and underdevelopment, building infrastructure, being partners for investment on an equal level with other countries of the West or of Asia.

America is very far away from Africa; admittedly Africa is closer to Europe than to the United States, but I just can’t believe that what is going on in Africa cannot but excite you, provided you know about it, which you won’t if you confine your reading to the New York Times, Washington Post, or similar fare. But it is happening! I cannot believe that these potentials and developments carry no influence, or nothing exciting for, let’s say, African Americans, and Africans in other countries as well, to really start to develop an active relationship between Africa, and the United States. Because I think that all of these questions—how to get rid of the trade deficit; sanctions or no sanctions—well, it’s now clear, even the Federal Reserve’s Beige Book finds that the tariffs are hurting a lot of American industries and making consumer prices higher.

And I have advocated all along that the better way is to have joint investments in other countries or continents, like the African continent. If the African Americans would start to take a really active interest in the kind of revolutionary changes which are taking place in Africa right now, maybe that would inspire many, many people to have a similar discussion on how America could be part of it, because a lot of industrial capacity will be needed and a lot of know-how and financing, in order to accomplish what could become the next big flowering of civilization. There are many people who are already saying that Africa will be “the next China, with African characteristics.”

That was just an idea I wanted to throw out, and if any of you would like to respond to me, please, I’m happy to receive your email and we should have a dialogue about this, because for me, this potential for African development is one of the most joyful and exciting things of the present time.

Schlanger: With that, I think our viewers have now been given their marching orders: Join the Schiller Institute! Become engaged in a dialogue with us, but take that dialogue out to everyone. People all around the world are in revolt, they’re in an insurgent state of mind. They want change, but they need to know what change means, and what change will work.

And so with that, Helga, thanks again, and we’ll see you next week.

Zepp-LaRouche: Yes, until next week.