The Lead
Stock Market Plunge a Cold Shower for Those Seeking a Unipolar Order
by Stewart Battle (EIRNS) — Jan. 27, 2025
If looked at properly, Monday’s surprise stock market plunge in the U.S. shines a light on the actual situation facing the Western world today. The financial shock was in response to the news late last week that the new Chinese AI model, DeepSeek, had outperformed the leading American models, and that, at a fraction of the cost and energy consumption. This was after months and years of efforts by the Biden Administration to sanction China and restrict its access to advanced semiconductors, combined with hundreds of billions of dollars in investment into the U.S. AI capabilities in the hope that it would give the United States a head-start. Instead, as many have noted, the reveal of DeepSeek is a sort of “Sputnik moment.”
While the kinds of brute-force measures employed by Biden may have worked in a limited way during previous times, the world today has clearly changed. In a similar development, Russia’s economy has continued to grow, and last month reported revenues of 28% greater than one year ago. Most remarkably, the largest gains were in non-oil and gas sales. Clearly, Western sanctions have failed in collapsing the Russian economy, even despite the harsh U.S. sanctions imposed in November.
Ukraine is another area where Western policy has glaringly failed. Panic has set in across the trans-Atlantic after the Trump Administration announced a pause in funding to Ukraine and other countries, while at the same time Ukraine’s resources, military equipment, and manpower are reaching a breaking point. In addition, it can no longer be denied that Russia is making steady gains on the battlefield, despite the hundreds of billions spent to “weaken” it.
The real crisis confronting the U.S. and the West is twofold: First, the world is going through a phase shift, away from the previous centuries of colonized and colonizer, and into a new era which rejects the methods and axioms of that previous system. If it wants to avoid an eventual world war, the West must discover a new identity that no longer relies on threats, blackmail, and force. Second, the entire trans-Atlantic financial system is bankrupt and not long for this world. Only a radical change away from the monetarist policies of propping up fictitious asset prices—including through the kinds of crypto fanaticism that is recently gaining sway—can avert this oncoming disaster. And at this point, despite President Trump’s insistence on tearing down the liberal “globalist” world order and all the disasters it has produced, it’s not clear whether he’s prepared to address these fundamental issues.
In discussion with associates today, Helga Zepp-LaRouche said that the strategic situation today is so full of contradictions that the only thing one can really say is that these contradictions will sooner or later detonate, and until then there is no predictable course that things will take. This is why, therefore, actions must be taken now to put fundamentally new solutions on the table.
Take the case of Gaza. The ceasefire is still holding, despite significant tensions in the West Bank and Lebanon. What better opportunity to rebuild the West’s credibility and moral standing in the world than to use this moment to build up a beautiful, independent nation of Palestine by creating modern infrastructure and water systems across the region, ensuring prosperity and stability there for decades to come? Such an endeavor could naturally be taken up together with China, a country which has already chosen the path of technological and economic development over financial speculation and militarization. If such a collaborative relationship were established around solving key issues, such as the one between Palestine and Israel, it would not only signify a new era for Southwest Asia, but would mean a new era for the world as a whole.
Monday, Jan. 27 marked the 50th anniversary of the vote to establish the Church Committee, which led to the first-ever major investigation into gross violations by the U.S. intelligence community. Despite its substantial findings at the time, these agencies have only continued their unsavory activities, against both American citizens and abroad, and today sit at the head of the failed unipolar outlook that has walked us to the cusp of nuclear World War III. Without these treasonous networks, Western nations and their citizens would not be convinced that countries like Russia and China are our “enemies,” for example.
Senate confirmation hearings for Tulsi Gabbard and Kash Patel begin on Thursday, Jan. 30, and will be hotly contested by intelligence agency bureaucrats and their loyalists in Congress. Their confirmations would be a major victory toward overthrowing this “deep state,” and approaching the actual challenges the West is facing with fresh eyes. President of The LaRouche Organization Diane Sare has written a new statement on this that is a must-read: “Is There a Democrat in the Senate with Half the Integrity of Frank Church? If So, You will Act To Ensure the Confirmation of Tulsi Gabbard and Kash Patel.” Distribute it widely and contact your Senators to tell them to vote to confirm Gabbard and Patel.
Contents
New World Paradigm
Collapsing Imperial System
- China Gives a Shock to Big Tech and 'Bidenomics' (↓)
- White House Lighting a Crypto Fuse Under Volatile Treasury Market (↓)
- Russian Economist Glazyev Commented on Trump's 'Crypto' Executive Order (↓)
- Despite Sanctions, Russia's Economy Continues To Grow (↓)
- Trump Plan To Relocate Palestinians Rejected Across the Region (↓)
- Crisis over Gaza Ceasefire Averted (↓)
- Ibero-Americans View Trump’s Mass Deportation Op. as an Affront to Their Sovereignty (↓)
U.S. and Canada
Harley Schlanger Update
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