Execcutive Intelligence Review

Aug. 21: With the U.S. and European economies near zero-growth and zero productivity growth, there are a hundred proposals "for building new economic infrastructure," nearly all of which ignore science completely.

Really {productive} new economic infrastructure, built in America's last century uniquely under the presidencies of FDR and JFK, was driven by science: the new sciences of atomic fission and particle physics, the challenges of high-voltage electrification and long-distance transmission; those of large-scale water management and transfer; Apollo Project's exploration of the Moon. Computers? They fell out of the scientists' back pockets, as just a means to scientific ends.

Today such truly productive "infrastructure" is built and pursued by China. It has planned to make just such "innovation," and growth, the subject of the G20 summit it is chairing in two weeks. There is no sign that Obama or Europe agree; rather, Obama and Hillary Clinton are on a path of military confrontation with China as well as Russia.

The "Four Cardinal Laws" needed for future economic progress, formulated by {EIR} Founding Editor Lyndon LaRouche in 2014, are uniquely suited for the challenge China's leadership is posing to the G20 leaders.

Otherwise, the current proposals for "infrastructure funds" ignore physical science, which finds its frontiers today in fusion power/plasma and superconducting technologies, in geobiophysics and in deep space exploration. And they ignore the science of credit -- the domain ruled by Alexander Hamilton, who found that the purpose of credit and banking was to concentrate the savings of the nation in the service of scientific invention and technological productivity.

Last month a Chicago gathering of nearly 1,000 American elected officials were presented -- by Wall Street -- with a "new American infrastructure" scheme. It was based on the super-low interest rates the Fed has provided for seven years now. It proposed the U.S. Treasury borrow $4 trillion [!] with 100-year U.S. bonds "for infrastructure," with an initial interest of about 1%, to be adjusted upward gradually with inflation. Some of the state and local elected officials got excited about it.

Obama's 2010 "stimulus act" also took advantage of very low interest rates and borrowed nearly $1 trillion -- and never has productivity growth in the U.S. economy been lower, than in Obama's six years since then. It is only secondary that this new Wall Street scheme is "helicopter money"; but a helicopter even Ben Bernanke wouldn't fly in. Patriotic Americans buying the 100-year "infrastructure" bonds would immediately see them sink significantly in value, and sell them to debt-speculating hedge funds.

What is crucial is that the "new American infrastructure" scheme from Wall Street -- you will hear it very soon also from Hillary Clinton -- does not include new frontiers of space exploration in any way; does not mention fusion power or plasma technologies; did not contemplate a Continental high-speed and magnetic-levitation rail network.

We don't need Wall Street inventing money. We need scientific invention, driving and being driven by infrastructure building -- that's what we had through FDR and briefly through JFK. LaRouche noted in a discussion yesterday, "It's science.
It's all science. It's not politics; it's science."

President Xi Will Meet with Obama at Upcoming G20

Aug. 21 (EIRNS)-- China's Ambassador to the United States Cui Tiankai was interviewed on the eve of the Sept. 4-5 G20 summit in Hangzhou where President Xi Jinping will also hold an important bilateral with President Barack Obama. China has been intent on focussing like a laser beam on the economic crisis with this year's G20 theme, proposed by China, being "Towards an Innovative, Invigorated, Interconnected and Inclusive World Economy." There is, however, some concern that this event not be ``hijacked'' by other sensitive issues like the South China Sea, which will no doubt be made a topic of discussion by the United States in the bilateral discussion between the two Presidents.

Ambassador Cui expressed confidence that the meeting would be positive. "The upcoming meeting between the two heads of state, just as every strategic talk they have held in recent years, will produce very positive and important influence on China-U.S. bilateral relations," Cui said. "Under the G20 mechanism, the two leaders have already conducted very much coordination and cooperation for years." He noted that it is also the world's expectation that China and the United States can work together to ensure the G20 Hangzhou Summit achieves full success.

Cui reminded the interviewers that Hangzhou was also the first location where the United States and China had held talks over 40 years ago when the United States first recognized the People's Republic of China. "The history of their relationship has fully proven that the two global heavyweights must cooperate with each other and must become cooperative partners," said Cui, referring to building a new type of major-country relationship.

The ambassador also revealed that China has kept frequent contacts with the United States on the South China Sea issue, reiterating that the issue should not be allowed to define China-U.S. ties since the two countries have neither disputes over even one inch of territory, nor a fundamental clash of interests in the South China Sea.

Given the insane defense of the present bankrupt financial structure by the Obama Administration, and China's (and most other G20 nations') desire to create a new financial architecture, it is hard to imagine the two leaders seeing eye-to-eye on any agreement essentially eliminating the power of the City of London-Wall Street financial oligarchy over the world economy and placing it back in the hands of the sovereign nations.



President Xi Jinping Has Big Plans for the G20 Summit

Aug. 20 (EIRNS)--Chinese President Xi Jinping has made it clear that, as the host of the Sept. 4-5 G20 summit in Hangzhou, major developments are in store--some of which are being made public by the Chinese government. An article in the Aug. 19 {China Daily} reported that

Xi will personally be presiding over more than 10 events in and around the G20 summit, including an informal meeting on the sidelines with the BRICS leaders that will be present. The 8th BRICS Summit will be held in the state of Goa, India on Oct. 15-16. Xi will be inaugurating and closing the summit, and presiding over five key section meetings, as well as holding numerous bilateral meetings on the sidelines. Besides the G20 nations as such, China has invited the largest number of developing countries which will be in attendance, than at any previous G20 meeting. Xi's intention, according to {China Daily}, is to transform the G20 from a case-by-case summit gathering, "into an institutional long-term mechanism for ongoing debate," since the Chinese government considers the G20 "the premier global forum for action and solutions."

China's ambassador to Ethiopia, La Yifan, told Xinhua: "The G20 summit in Hangzhou will focus on development, especially that of developing countries, including African countries, which makes it different from other G20 summits."

Recall that the recently published Bank for International Settlements report on the explosive vulnerability of the entire global derivatives bubble and its clearinghouse system, was reportedly prepared at China's request for purposes of the G20 deliberation.

China and India To Utilize the G20 Framework To Enhance Cooperation to Fend Off International Speculation

Aug. 20 (EIRNS)--Quoting unnamed officials and economists, China's Xinhua news agency wrote today in an article that "China and India have agreed to increase dialogue and further cooperate within the G20 framework, in a bid to enhance relations between the two countries."

"The shadow of financial crisis is still hanging over Asia after the 2008 financial crisis," Xinhua wrote, in light of which China and India have "agreed to build platforms for financial interactions, while fully using the AIIB, BRICS New Development Bank and the BRICS Contingency Reserve Arrangement to enhance cooperation." Such cooperation is needed to "help fend off interntional speculation."

Following the 8th high-level Financial and Economic Dialogue between China and India, held in Beijing on Aug. 19, India's Secretary for Economic Affairs Shaktikanta Das said "institutions like the G20 and BRICS have come to play a greater role in evolving global and regional consensus on important key issues affecting global economy," reported Press Trust of India (PTI).
"I see a very good opportunity for a coordinated action between India and China. From the Indian side we will also be highlighting the possibilities of further cooperation with regard to trade and investment flows. It is very important to point out that the idea of inclusiveness has been retained and has been given greater focus in G20 agenda under Chinese Presidency," Das said.

Xinhua turned to an unnamed Indian economist to stress the point of cooperation between the two countries: "By upgrading the level of financial exchanges and policy coordination, China and India would be building a more advanced mechanism for carrying out future investment and trade at a higher level, while some vacuums in terms of government policy and laws will be filled step by step."
President Xi Jinping Has Big Plans for the G20 Summit

Aug. 20 (EIRNS)--Chinese President Xi Jinping has made it clear that, as the host of the Sept. 4-5 G20 summit in Hangzhou, major developments are in store--some of which are being made public by the Chinese government. An article in the Aug. 19 {China Daily} reported that

Xi will personally be presiding over more than 10 events in and around the G20 summit, including an informal meeting on the sidelines with the BRICS leaders that will be present. The 8th BRICS Summit will be held in the state of Goa, India on Oct. 15-16. Xi will be inaugurating and closing the summit, and presiding over five key section meetings, as well as holding numerous bilateral meetings on the sidelines. Besides the G20 nations as such, China has invited the largest number of developing countries which will be in attendance, than at any previous G20 meeting. Xi's intention, according to {China Daily}, is to transform the G20 from a case-by-case summit gathering, "into an institutional long-term mechanism for ongoing debate," since the Chinese government considers the G20 "the premier global forum for action and solutions."

China's ambassador to Ethiopia, La Yifan, told Xinhua: "The G20 summit in Hangzhou will focus on development, especially that of developing countries, including African countries, which makes it different from other G20 summits."

Recall that the recently published Bank for International Settlements report on the explosive vulnerability of the entire global derivatives bubble and its clearinghouse system, was reportedly prepared at China's request for purposes of the G20 deliberation.

China and India To Utilize the G20 Framework To Enhance Cooperation to Fend Off International Speculation

Aug. 20 (EIRNS)--Quoting unnamed officials and economists, China's Xinhua news agency wrote today in an article that "China and India have agreed to increase dialogue and further cooperate within the G20 framework, in a bid to enhance relations between the two countries."

"The shadow of financial crisis is still hanging over Asia after the 2008 financial crisis," Xinhua wrote, in light of which China and India have "agreed to build platforms for financial interactions, while fully using the AIIB, BRICS New Development Bank and the BRICS Contingency Reserve Arrangement to enhance cooperation." Such cooperation is needed to "help fend off interntional speculation."

Following the 8th high-level Financial and Economic Dialogue between China and India, held in Beijing on Aug. 19, India's Secretary for Economic Affairs Shaktikanta Das said "institutions like the G20 and BRICS have come to play a greater role in evolving global and regional consensus on important key issues affecting global economy," reported Press Trust of India (PTI).
"I see a very good opportunity for a coordinated action between India and China. From the Indian side we will also be highlighting the possibilities of further cooperation with regard to trade and investment flows. It is very important to point out that the idea of inclusiveness has been retained and has been given greater focus in G20 agenda under Chinese Presidency," Das said.

Xinhua turned to an unnamed Indian economist to stress the point of cooperation between the two countries: "By upgrading the level of financial exchanges and policy coordination, China and India would be building a more advanced mechanism for carrying out future investment and trade at a higher level, while some vacuums in terms of government policy and laws will be filled step by step."

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Execcutive Intelligence Review