Showing posts with label Iran. Show all posts
Showing posts with label Iran. Show all posts

Wednesday, May 11, 2011

Iran's Unwanted Revolution?

We're talking about the Khamenei and Ahmadinejad going head to head for awhile.  This author says that we should be rooting for Khamenei because the cleric led government, as distasteful as it is, is some how more reasonable then the nationalist Ahmadinejad. 


Is it too much to ask that they continue clawing at each other until they both bleed to death?

And the beat goes on.

Monday, April 25, 2011

Libya and Syria Still on Fire with Iran in the Background

Misurata, Libya Monday, April 25, 2011 - Rebels believed to be on brink of crushing victory.  Libya's army seems to be made up of foreigners, children and whatever riff-raff or desperadoes are willing to trade their lives for what is becoming, literally, blood money (here if you tube won't load).

Check the Egyptian Chronicles for multiple videos from Syria including artillery and tanks being moved in to Daraa.  Reports official for 25 dead, but other reports suggesting that the number of dead are greater, they just can't be picked up off the street due to sniper fire.  Fog of War.

On Syria and Iran:

For Iran, its ties with Syria represent far more than just a rare friend in a region dominated by Arab suspicions of Tehran's aims. Syria is Iran's great enabler: a conduit for aid to powerful anti-Israel proxies Hezbollah in Lebanon and Hamas in the Gaza Strip.
Should Assad's regime fall, it could rob Iran of a loyal Arab partner in a region profoundly realigned by uprisings demanding more freedom and democracy.
"Iran and Syria represent the anti-US axis in the region. In that respect, Iran wants to ensure that Syria remains an ally," said Shadi Hamid, director of research at The Brookings Doha Center in Qatar. "The problem is that Iran's foreign policy has become quite inconsistent."
In the meantime, Iran is under another cyber attack and they are not nearly as good as the Chinese or the US at managing those attacks.

Tuesday, April 19, 2011

Middle East Revolutions: Iran's proxy Hezbollah Supports Assad and Threatens Lebanon "Security"

Michael Ledeen and Michael Totten have done excellent jobs in outlining the various connections between Hezbollah, Iran and Syria.  Michael Totten's new book, Fatima Gate, is an expose on Hezbollah in Lebanon and the counter-revolution that thwarted Lebanon's Cedar Revolution.  Even as the Syrian's were forced to pull back, they provided material and monetary support to their co-tyrants in Hezbollah to take effective control of the country.  This is effectively Iran's "covert" war (if it can be called that) against Israel.  

Monday, Hezbollah issued a statement of unwavering support for Syrian dictator Bashar Assad and basically threatened what little "security" and peace Lebanon can claim:

"Today, we stand yet again by our sister Syria ... and by Syria's leaders who have refused to give into pressure or ... to conspire against the resistance," said Hezbollah MP Nawwaf Moussawi, in reference to the Shiite militant group.


"We are certain Syria will overcome this passing phase," he added.  "There is no stability in Lebanon without stability in Syria, no security in Lebanon without security in Syria."
Moussawi was basically echoing the Syrian Ambassador who had already threatened that:
any harm done to Syria will also harm Lebanon with the same magnitude or even more"
Lately, all of the "old revolutionaries", who have been in positions of power now for the last thirty or forty years, have all been claiming to be protecting the revolution from counter revolution.  Refusing to accept that, once the revolutionaries have taken effective control of the reins of power and institutions of government, they are no longer the revolutionaries.  They are the establishment:

Moussawi's spoke at a press conference entitled "In solidarity with Syria against the American-Zionist-Western plot to undermine its national, pan-Arab and resistance role," attended by pro-Syrian Lebanese politicians of all faiths.
There are two main themes going on here.  

Monday, March 28, 2011

American Foreign Policy: Kaplan Right and Wrong on Morality in Foreign Policy

Robert Kaplan wrote a recent article in the Wall Street Journal that hit some right notes on Foreign Policy, but also broke loose a few stinkers.  The Middle East Crisis Just Begun.


The good:


Our most important national-security resource is the time that our top policy makers can devote to a problem, so it is crucial to avoid distractions. The wars in Afghanistan and Iraq, the fragility of Pakistan, Iran's rush to nuclear power, a possible Israeli military response—these are all major challenges that have not gone away. This is to say nothing of rising Chinese naval power and Beijing's ongoing attempt to Finlandize much of East Asia.
To his he adds:

We should not kid ourselves. In foreign policy, all moral questions are really questions of power.

This is reasonably true.  He goes on to list out or recent interventions in the Balkans, etc and why Libya intervention doesn't hurt the US and giving up leadership in that role leaves us free to concentrate on our other problems.  He does not list out any activities prior to the 90's as if Fukuyama was correct and it was, indeed, the end of history when the USSR fell.  However, it is part of our foreign policy history that, during this time, the US made most of it's decisions on who to support under the aegis of "bad and worse".  Worse, during the Cold War, was always Communism.  Therefore, the US made it it's business to support anyone who was not Communist, despite the fact that many regimes were definitely oppressive and autocratic. 

What the US understood at the time was "help yourself, before you can help others".  The US had to survive as the strongest free nation, however it could, or it would be unable to support or defend any other free nations, much less the United States.  It did support freedom and democracy where it could, but, when it came down to a choice between populations where Soviet influence was strong or attempting to enter and a ruling dictator that could be influenced by the West, the US would choose the dictator. 

The 90's, as Kaplan points out, was about maintaining the "status quo".  That the US does better where the world is stable, even if half of it is controlled by tin pot dictators.  Investment capital, imports and exports flow, keeping the US economy and GDP rising at a steady pace.  This was important, per Kaplan, because the USSR did not represent the last enemy of the United States.  Hence his discourse on Iran, China and the ever growling Bear of Russia. 

However, this is where Kaplan begins to advocate for the "status quo" as the best hope for the United States to remain on top and not dragged down into every event that represents some form of democracy.  He points out that democracy (democrateyya) in Pakistan would be a crazy idea, as if anyone was advocating that the land of the Taliban and their various fellow travelers, replete with nuclear weapons, was a candidate for real freedom and democracy. 

No one has been calling for democracy, inside or out of Pakistan for Pakistan.  Not even the revolutionaries in Egypt, Libya, Tunisia or the burgeoning event in Syria.  Even these democracy minded people don't believe that democracy is what Pakistan would get should military rule disintegrate.  That is a red herring and Mr. Kaplan is wise enough to know that.  Yemen is the great unknown.  The US knows that Saleh was basically a career criminal keeping all the other career criminals and jihadists down on the farm.  That does not mean that there are not some forces inside of Yemen who are not criminals and jihadists. 

There has been a long standing low key civil war with inter-tribal conflict as a highlight.  Democracy, whatever its form, is likely to be short lived.  That is if it can remain a single state at all.  The likelihood of Yemen becoming "Balkanized", breaking up into small states with hostiles in the north and south going into internecine civil war, is all but inevitable.  Interesting that Kaplan suggests that the US "stay the course" and not intervene on anyone's behalf.  As if the US was interested in doing so. 

His point worth repeating here is: 

We should not kid ourselves. In foreign policy, all moral questions are really questions of power.

If Yemen goes awry, it would become a hostile neighbor to the Saudi's south and a point of serious problems for trade routes as well as oil distribution in the region.  The problem here is that the US actually has few options.  It can't really support Saleh in the degree that he would require to stay in power and there are no powerful  alternatives that we would like to see in place such as any liberal force in the body politic. 

This isn't a question of morality v. power or morality v. status quo.  This is an issue of reality that the US is going to have to come to grips with, regardless of the outcome.  The same must be said of Saudi Arabia.  This is an example of Mr. Kaplan's argument, but hardly states the case for an over all US foreign policy.

The problem is Mr. Kaplan's main point.  That the US should, in fact, maintain whatever status quo exists in the Middle East in the face of the Iranian problem and the growing Chinese and Russian problems.   He misses several key factors.

Starting with the revolutions, with or without the US, these initiatives were going forward.  The US did not start them nor have a hand in them directly.  Indirectly, constant interaction with the US and other western nations is bound to have an effect on how people see their own situations and, to paraphrase the president, formulate their own aspirations.  Directly, the deposition of Saddam Hussein in Iraq and the struggling, though still existent democracy there, put the idea into the people of the region's minds that dictators were not really the all powerful, indestructible, all controlling entities over any people unless the people allowed them to be.

Not to drift off into any ideological meanderings, but the founders of the United States were correct when they pointed out that government comes from the people, even despotic forms, and that people will suffer them as the only form of government they know so long as those "evils" are sufferable.  It isn't a new strain of thought.  It is that vision writ large when we see any popular revolt, much less ones that are calling for real government by the people in the form of a democracy.

It means that the vaunted "status quo" is only the "status quo" so long as the people in any form of majority go along with it.   That means clearly that the US trying to hold on to the status quo does not make itself stronger, but puts itself in a weak position, unwilling and unable to contend with a rapidly changing world.  An idea that is woefully ironic considering that the idea of a free people with a free market and free ideas are better suited to responding rapidly to any changes within and without. 

Worse, it may be framing the US in the same position we framed the USSR all those decades ago.  A power set on maintaining tyrannies all over the world for the sole benefit of maintaining the United State's position at the top of the world.  A position that would not be so threatened if the United State's internal policies were not possibly more detrimental to the great "engine of democracy" than it's foreign policy.

Second, for some reason, beyond a brief mention of Al Qaida, Mr. Kaplan skips completely over the events of September 11, 2001.  As if to say that event was not a policy changing event or that we should not recognize that it is the Salafist Wahabi teachings of the Saudi Kingdom's pet religious projects internally and abroad that brought about that event.  Nor are we to imagine that as a real threat.  As if to brush off that event and the problem of our on going association with the Saudis as inconsequential to the greater problem's facing the US today.  The worst is that Mr. Kaplan does not even begin to imagine that these terrorist organizations are, in fact, proxies in many degrees of all of those other "larger" threats the US faces.

The rise of this theocratic ideology and it's spread through out the Middle East in conjunction with the Iranian version and the ongoing attempts to take down the control of the Pakistani military government to obtain access to it's arsenal makes it a threat equal to or more imperative than the other three threats.  That means that it is imperative for the United States to have a foreign policy that directly counters that ideology.  It cannot be war alone.  Neither does the support of authoritarian states crush the ideology.  It formed full and well beneath the umbrellas of these regimes, regardless of their attempts to crush it.

The single largest threat that the Salafist Wahabi strain of ideology identified to its existence was the spread of freedom and democracy.  It is the most powerful threat against any oppressive or authoritarian regime.  Every enemy of the United States and free nations around the world identifies it and knows it.  It is difficult to comprehend how Mr. Kaplan fails to do the same.

Third, Mr. Kaplan seems to have donned a pair of blinders to the truth of history.  Democracy and freedom have been on the rise for decades.  The number of states that have risen to throw off dictatorships and tyrannical states to become, in fact, functioning democracies, has increased, not decreased.  It is difficult to accept, under that premise alone, that the US should do anything (or nothing as he would have it) to maintain the status quo.  Particularly as it is the rise of these states that has provided markets for US products and allies along the way.  The challenge here would be for Mr. Kaplan to explain how that has been detrimental to the United States.

Fourth, in that same vein, it was the stated US policy during the Cold War that defense of democracy and freedom abroad meant the extended defensive line for the United States instead of a United States alone and under siege within it's own borders.  When it comes to the issue of Iran, Mr. Kaplan seems to insist that all of these impending democracies, such as Egypt, and any changes in countries bordering Saudi Arabia, makes all of those states weaker against Iranian influence and outright hegemony. 

The problem with that analysis is the assumption that a democratic Egypt, or instance, would not have it's own national interests to protect.  Interests that align more directly with the US and the West in general than with Iran's plan for the Middle East.  It also ignores the possibility of Egypt rising as it's own center of influence on the region, against Iranian attempts at influence.  Even as a democracy. 

No one in Egypt, in act, is calling on the Iranians to help them establish their democracy or invest in their country.  Not the MB, the socialists or the liberals.  They are not calling for the Chinese to come and help them.  Even if, as Mr. Kaplan supposes, these events play into China's hand by the US acting in these events  and giving the Chinese direct access, it is incorrect to believe that supporting freedom and democracy as opposed to maintaining dictatorships and authoritarian regimes makes the US weak. 

The point here is that, if these democracy movements are tethered to the natural inclination of people to be free and have a voice in their government instead of bought and sold dictatorships, it pushes the boundaries of freedom out.  Those types of democracies are by nature western leaning.  By fiat, it reduces the boundaries that the Chinese, Russian's and Iranians can ever hope to become a direct or controlling influence because in real democracies, the people are not interested in living in or supporting the types of authoritarian, theological or oligarchic regimes these nations represent.

Mr. Kaplan's main point, that foreign policy is about power and not morality is only partially true.  When morality supports the position of power, ie the spread of freedom and democracy makes free nations stronger, then it seems entirely immoral and detrimental, even to a utilitarian foreign policy supported by Mr. Kaplan, to accept the stats quo as the United States' best interest in foreign policy.

Sunday, February 20, 2011

Your Middle East Irony of the Day: Anti-Revolutionary Revolutionary

Ohhh, the irony!

Apparently, the daughter of ex-Iranian President Rafsanjani was arrested today in Iran:

Fars said she was arrested in the street while "leading a number of anti-revolutionaries and rioters."


News flash to the Iranian Islamic Revolutionary government:

When you have been in charge of government for forty years, you are no longer the "revolution", you are the ESTABLISHMENT.

Baghdad Bob must have found his new home in Iran. There are no revolutionaries in the streets! We are the revolutionaries!

Monday, February 14, 2011

Iran Protests: 25Bahman/Feb14

Can't stay up to blog this so pointing to most reasonably honest blog reporting and various tweet patterns.

UPdate 5:30 pm...twitter back. not sure what happened. reports are very sketchy.

First picture up at Tehran bureau for pbs. Actually looks like a decent crowd marching, but they are silent. No chanting or signs. Probably don't want to give any provocation until in a larger group or may be simply "silent protest". Reports too thin from the ground. Looks like rally is spread out all over the place. Either unable to coalesce due to security forces blocking roads and transportation or because that was the plan.


Update appx 5pm Iran

Something happened to twitter. no pages loading. PBS page still up.

Last reports to not look good for Iran protests. From what I can see, sans good pictures and the way the videos are being shot, Ghonim's "psychology of fear" is at play. People fear the regime. Probably because they are able to mobilize 300 police for every 100 protesters. Lots of reports of tear gas and police beatings begin (as I said, let the head bashing begin).

PBS.ORG Tehran Bureau Live blog (Check this, they are taking twitter reports as well, video is extremely disappointing, very low turn out or not taken at the most interesting places, probably because sending it out internet is impossible at this time)

In short: Tehran University and surrounding shops closed. Riot police are everywhere (don't believe the regime is going to be caught off guard, plus the protesters posted their routes on twitter; not sure they have planned like Egyptians to publish some routes and hold others secret).

"thousands" march, but no confirmed images as yet. All coming from different directions. At least one line of the protest has been dispersed. Leader of opposition and wife have been detained at their house by security forces, unable to leave.

Allegedly, the police were told not to interfere, but stationed in front of stores and gas stations. Only to become "violent" if protesters become violent. Expect somebody to interpret something as violent and head bashing to begin. Basij and Republican Guard staying in background, stationed in parking lots and alleys. One group reports that motorcycle riding "black turtlenecks" (probably reference to Basij who use bikes as their tool and dress in black) going to one of the squares. Stand by for head bashing to commence.

While several organizations have print reports, do not see it on front page of yahoo. Tracking.

Reports of police using tear gas, metro buses and subways are closed to prevent people from reaching areas. Internet, SMS and phone service cut.

Monday, September 24, 2007

Ahmadinejad: I Am A Muslim. I Cannot Lie.

Interview with Ahmadinejad from 60 minutes. Seems like it was tough questions. However, while the Kos Kidz go crazy, Charles Johnson highlighted a section where Ahmadinejad says he has suggestions for President Bush on how he can help his party win the next election. He espouses every democrat talking point, but seems to leave out his favorites like paramilitary beatings of demonstrators, mass arrests, long term imprisonment, killing journalists, and hanging dissidents via crane in a public square. I haven't even watched it all and I'm getting the feeling I'm seeing Baghdad Bob has landed a new job complete with nose job and stupid grin. Can't wait to hear his UN speech.

What I'm saying, I am being very sincere here. I'm a Muslim. I cannot tell a lie."

"But when I ask you a question as direct as 'Will you pledge not to test a nuclear weapon?' you act, you dance all around the question. You never say 'Yes.' You never say 'No,'" Pelley points out.

"Well, thank you for that. You are like a CIA investigator. And you are…," Ahmadinejad replied.

"I am just a reporter. I am a simple average American reporter," Pelley said.

"This is not Guantanamo Bay. This is not a Baghdad prison. Please, this is not a secret prison in Europe. This is not Abu Ghraib," Ahmadinejad said. "This is Iran. I'm the president of this country!"


Go on, laugh. You know you want to. Tehran Ted. I kept imagining him banging his shoe on the podium. Journalist had big brass ones. Could have ended up in Evin like some of the other ones. Obviously why he can't stand real democracy and freedom. He wouldn't last two seconds with an Iranian Helen Thomas in the front row. Probably shoot her as soon as she said, "Mr. President..."

-Kat

Iran and Syria: Brinkmanship in the Middle East

Cross posted at the Castle

Iran has lately become an even hotter topic than Iraq and, once again, Afghanistan has fallen off the radar completely. An upcoming push by the United States and France to enforce even greater sanctions against Iran is heating up the rhetoric from all sides of the ocean. Germany continues to struggle with the repercussions of joining the sanctions program. Democrats in Congress have been inordinately quiet since their last political push regarding President Bush's attempts to "escalate" the war by "implicating" Iran in the Shia insurgency in Iraq.

The silence in congress is not really surprising. Largely because they cannot deny certain intelligence backed up by hard evidence of the facts. Al Qods members swept up, facilitators singing and weapons with distinct Iranian markings that can't get anywhere into Iraq unless they are smuggled from Iran and can't get out of Iran unless they are intentionally released from Iranian armories. Particularly in the numbers that are being used and interdicted.

The same stands for Iranian weapons making their way to the Taliban in Afghanistan. The quantity of weapons being provided from a Police State cannot be done without willing, organized and directed assistance from the government and military of Iran, all denials to the contrary, unless security in Iran is worse than we imagine. This is one reason why the Democrats in congress are quiet. They might not want to go to war with Iran, but to pretend that Iran is not engaged in a proxy war and does not need to be confronted in some manner could boomerang on them, once again allowing the Republicans to smash them in an upcoming national election over national defense.

However, most congressmen of both sides of the aisle recognize, along with the President, that a terrorist supporting state who has provided money, weapons and political support to terrorist organizations of all ideological stripes around the globe and more recently against Coalition forces in Iraq and Afghanistan, is not a nation that can be trusted with nuclear technology. As long as the President continues to work towards a "diplomatic solution" through the UN or even without, using tough sanctions and other than war, the Democrats will be quiet and support strongly the efforts to prevent Iran from having these weapons. On the other hand, if the President starts talking like French Foreign Minister Kouchner, Democrats may be moved to strongly protest.

Iranian denials ring positively false as they proclaim no good interest in causing instability in Afghanistan or Iraq and insist on their good relations with both nations. However, this is clearly wrong as demonstrated by the number of weapons, men and materials being provided. Further, they do have good interests in insuring continued instability in both of these nations.

Iran's Interests In Instability In Iraq and Afghanistan

First, continuing low grade instability and the interdiction of oil from either terrorist attacks on the lines or through outright banditry and smuggling to Iran and Syria, keeps oil off the global markets, keeping supply tight and the value high. This increase in oil prices is extremely important to Iran where close to 70% of their state run economy is based on energy revenue, largely from oil. Instability in the region also keeps the market analysts valuing futures higher than ever before.

Second, instability leading to inability to fully develop internal infrastructure including, importantly, electrical plants, allows Iran to continue to provide huge amounts of electricity to both Iraq and Afghanistan contributing to Iranian state revenues. Hydro-electricity is the number three export of Iran. Other trade including food, clothing, concrete (for reconstruction) and appliances, to name a few, continues to be high since neither Iraq nor Afghanistan have developed the manufacturing capable of supplying any of its internal needs.

All of this equates to an economic windfall for Iran that needs the money to continue to support it's political ambitions around the region through organizations such as Hezbollah, Jaish al Mahdi and numerous organizations including Al Qaida in Iraq and Afghanistan. They also need the money to continue to develop the nuclear facilities and technology as well as buy weapons from China and Russia. Finally, while the money is flowing into Iran and growing it's GDP at what would usually be a phenomenal rate, inflation matches or out paces it regularly and sanctions and limited credit have forced the Iranians to start working on a "cash up front" basis to obtain imports of food (believe it or not, a upwards of 50% importer of food which is a serious national defense issue, but is directly related to Iran's export of food for economic gain since it garners more revenue on the open world market for the government, but simultaneously results in inflationary food rates for the common people), gas and other commodities. Making cash flow and management extremely important.

Third, while the world, particularly the US and coalition partners, is busy with Afghanistan and Iraq, Ahmedinejad can continue to consolidate his power in Iran, stacking election boards, sending contracts to the IRGC, appointing IRGC compatriots to important positions and using the possibility of war as an easy stick to beat any opposition with rhetoric accusing them of helping the enemy. While such calls within the United States may be part of the political rhetoric, in Iran, it could quickly spell disaster, political ruin, possible imprisonment and even execution.

In an interesting juxtaposition against the conservative power consolidation, Hashemi-Rafsanjani, once considered the leader of the reformist movement in Iran, was elected to chair the Assembly of Experts. The Assembly of Experts is responsible for selecting the "supreme leader" and over seeing the office, insuring that it adheres to Islamic law. While some see this as a part of the internal power struggle between the extreme, radical conservatives and the more "nuanced" members of the religious council to balance power, it could equally and easily be an attempt to co-opt Hashemi-Rafsanjani and mute any attempts by the reformists to mount an opposition to the conservative take over.

According to the link from Radio Free Europe, the Assembly of Experts is considered "conservative" and "a threat to any reform movement". It seems unlikely that Hashemi-Rafsanjani would be selected for his "moderate" views with an attempt to moderate the council. As one member noted, he didn't expect Hashemi-Rafsanjani as the Chairman to have much effect on the over all positions of the board since the position is about insuring proper procedures are followed and only meets once every six months. On top of that, the position is elected for eight years. The chance that Hashemi-Rafsanjani would have the opportunity to influence the selection of a Supreme Leader is minimal as there are few signs Ayatollah Khamanei is going to depart the world, thus the office, any time soon.

Hashemi-Rafsanjani's history with the reform movement has been checkered. He's a member of the conservative party, but, during his presidency from 1989 to 1997, he worked closely with the secularist reform party, promising changes that he was either unwilling or unable to make. The reformists later rejected him as a representative because they believed his "gradualist" approach to reform was a facade and they had been betrayed.

During the 2005 election, many "moderates" and "reformists", disappointed over his previous performance and the reform situation, boycotted the elections or were otherwise kept from voting. This allowed Ahmadinejad to be elected in a virtual landslide. All of this points to the possibility that political enemies are being kept close.

Internal Unrest

While down in the streets, Ahmadinejad has been knocking out any potential protests from less than enthusiastic citizens. Trade and labor unionist have been agitating for the right to organize as well as for salary increases and benefits (such as two pair of shoes for bus drivers) that they have not received in several years. In some cases, teachers and other service workers have not been paid for months or even a year. In a state where inflation is officially 14% and the outside estimate is 17-20%, this lack of commiserate pay is placing an extreme hardship on the people.

Historically, the labor movement helped bring down the Shah's Imperial Regime when whole sale strikes shut down the economy and workers took over the factories in conjunction with the Islamic Revolution in 1979. Soon after taking power and in the lead up to the Iraq-Iran war, the Islamic government broke up the unions, arrested thousands and destroyed the secular, socialist movement of the revolution.

Ahmadinejad, being part of the original revolution, must be aware of the dangers to the economic stability of the nation and, thus, his own government from such movements. He is once again instituting mass arrests and violent repression of the labor movements, arresting, imprisoning and executing dissidents; and expelling any "liberal" professors and students from university to insure his control. All this is in the guise of protecting Iran from "traitors" who are "assisting the enemy" (the US) as seen in the lead up to the Iraq-Iran War.

This, among the many signs, including defiance over continuing nuclear development, pronouncements of alleged breakthroughs in weapons, missiles pointing at Israel and US targets in Iraq, gasoline rationing, removal of the Chief of the IRGC (who is alleged to have suggested that they give back the British Sailors quickly to de-escalate the situation) to the military attache for the Supreme Leader, the emplacement of an even more hard line, Ahmadinejad compatriot to the IRGC, points to a possibility that Iran is preparing for war.

There are even suggestions that Ahmadinejad may stage some additional, literal confrontation with the US in order to bolster his position and finalize control of the government, forcing the recalcitrant population, assembly and clerical governing bodies to move to his position. This confrontation has been nearly realized on several occasions including incursions into Iraq in an attempt to kidnap or kill US forces or confrontation between IRGC gunboats and US ships or interdiction of US operations in the Persian Gulf. While many in the west look to the young and "liberal" Iranians as the last, best hope for Iran, Ahmadinejad is betting on a national crisis to force even this population to rally round the Iranian flag. The continuing fight over Iran's nuclear ambitions is one that has had even the "liberal" Iranians insisting on their "nuclear rights", swallowing their angst and supporting Ahmadinejad.

However, just to insure that everyone follows along, Ahmadinajad has begun to enforce the Islamic laws very strictly, arresting people for un-Islamic dress, women campaigning for equal rights, even taking away pet dogs from animal owners as "un-Islamic". Most of these actions are to remind the young, possible reformist liberals that he has the power to reach out and touch someone if they don't cooperate.

Regional Concerns

Regionally, instability in Iraq, at least, plays into Ahmadinejad's hands. With the Iraqi government's continuing weakness, it allows him to exert more control and ally Iran closely with their ideological compatriots in Iraq. Aside from economic issues and having to beg Iran to assist (or, more accurately "desist") in Iraq's stabilization by stopping smuggling of weapons, money and people to "terrorists", a weakened central government gives the Iranian backed parties control of major areas in the south where oil, agriculture and ports that control Iraq's economy exist as well as some direct "pull" in the existing government.

That area is also most highly populated with the majority Shia in Iraq. Whoever controls that area has an excellent chance of being the majority party that forms the Iraqi government for decades. This could put Iraq in Iran's pocket and change the economic and security dynamics of the region.

Iraq would represent an economic trade partner that would allow Iran to diversify and increase its trade in the region as it hopes to meet its stated goals of being free of "western trade" and the Middle East "self sufficient". It would also represent a partner in OPEC which controls production, thus, oil prices, for the largely Middle East cartel and is currently dominated by Saudi Arabia and the Gulf States that are western leaning. This keeps OPEC working on the Saudi vision that price inflation should be limited to insure the global economy stays strong and, therefore, so do OPEC nation revenues. To this end, they often agree to increased production or reduction depending on the market situation.

They are also concerned that, if oil becomes prohibitive, consumers will look for alternatives and ultimately oil will lose its value sending these economies crashing. Iran works on an all or nothing basis along with Venezuela who is desperate for the income and don't mind if the global market crashes and burns in the process. http://themoderatevoice.com/places/americas-n-s/latin-america/15187/the-salami-tactics-of-hugo-chavez/>Viva La Revolucion!.

Significant control or association with the Iraqi government would link Iran and Syria, strengthening their potential military power to put pressure on Israel, Lebanon, Jordan, Saudi Arabia and the Gulf States. Recent events indicate that Iran and Syria are jointly preparing for possible war.

Iran-Syria Military Matrix

A report from Jane's Defense indicates that at least 200 people, including Syrian and Iranian military, were killed when a missile being fitted with a Sarin gas war head exploded. The testing facility is a joint operations program established with Iran in 2005. Syria has a long history of developing chemical weapons. They were assisted willingly or unknowingly by German manufacturers and through an association with the Soviet Union in the 1980's. Some have even speculated that Iraq's chemical weapons and nuclear technology that are not on the manifest as destroyed and could not be found in large numbers after the invasion may have been transported to Syria in the lead up to the invasion (see also NY Sun Report).

Information continues to come out regarding the recent attack by Israeli commandos and fighter jets against what is now being claimed was a stockpile of nuclear material shipped from North Korea. The information was apparently conclusive enough to have the US put Syria on the nuclear watch list. Reports dating from 2004 by a refugee Syrian dissident indicate that North Korea has been cooperating with Syria in developing nuclear facilities and technology. Locations and details seem to match reports made by a top Iraqi official under Saddam Hussein, Georges Sada, in his book "Saddam's Secrets".

It is believed that the AQ Khan network, derived from Pakistan's nuclear programs, was responsible for providing nuclear technology to North Korea and possibly Iran. It may also have provided assistance either directly or through North Korea in developing similar programs to Syria.

In a seeming replay of Iraq's decade long delay and denial, Iran has recently decided to cooperate in a limited manner with the UN IAEA by providing it with historical documents regarding its nuclear development. While these actions have been welcomed by the IAEA, Russia and China, the United States and European allies have declared that it is not enough. Considering the recent attack on a suspected Syrian nuclear site, this may be correct.

Lebanon has implicated Syria in the latest assassination of an anti-Syrian politician. The motivation appears to be an attempt to shape the upcoming presidential elections by physically eliminating members of the majority in the Lebanon Parliament. According to the linked report, the death of Ganhem brings the majority down to 68 seats; only three seats above the absolute majority of 65. This is an obvious attempt to bring Lebanon back under Syrian influence and away from the west or any possible reconciliation with Israel.

Syria has long depended on Lebanon as a conduit for trade through its Mediterranean ports. Syria also realizes a large portion of its state revenue from fees garnered for oil and natural gas that passes through pipelines across the nation to conduits in Lebanese ports. Syria inked a deal with Iraq in December 2003 for an oil pipeline extending to the Mediterranean for delivery of oil to European markets. Syria wants to maintain access to these ports to realize their plans for the Iraq oil pipeline and other potential pipelines from other nations like Iran whose oil exports are limited to terminals in the Persian Gulf. These present a security issue for Iran who fears the interdiction or blockade of its trade through such limited access. Syrian leaning Lebanese government would also be willing to insure lucrative pricing for a similar taxation on the pipeline and transport of oil since Lebanon's take would eat into Syrian profits.

Ahmadinejad to America: Iran Wants Peace, Give Us What We Want and You Can Have It

Meanwhile, Ahmadinejad has traveled to New York to make his case before the UN and, according to a reported interview from the Iranian News Agency, make his case to American Citizens directly. He believes that US citizens have been given "incorrect information." His recently aborted (or not) trip to Ground Zero, he stated in a 60 Minute interview, was to pay respects and "perhaps air your views about the root causes of such incidents." Most likely it was an attempt to garner a third venue from which to lambaste US policy in the Middle East and expound on Iran's "right" to nuclear technology.

He insists that the US and Iran are not heading for war while US military intelligence continues to point out Iran providing weapons like anti-aircraft missiles, to Shia extremists. Adm. Fallon, in charge of US forces in the Middle East also stated that the continuing "drum beat for war" was not "helpful" in a recent interview with al-Jazeera, though it is unclear if he is speaking about outside governments, the media or the Iranian government. Prior to leaving Iran, Ahmadinejad presided over a typical "show of force", complete with signs declaring "Death to Israel" and "Death to America".

During his speech he declared:


"Those (countries) who assume that decaying methods such as psychological war, political propaganda and the so-called economic sanctions would work and prevent Iran's fast drive toward progress are mistaken," Ahmadinejad said.


Real Democracy In Iran Decades Away After Conservative Power Grab

Such "show of force" events are often provided for internal consumption. However, it is equally as likely an attempt to bolster Iran's position for negotiations and Ahmadinejad's public image both in the world and at home as a "strong man" for his upcoming speech. Beyond Iran's current external issues, Iran is continually racked with internal upheaval. Iranian resistance has recently stepped up its attacks and the IRGC is responding by attacking villages around Iran and even shelling into Iraq in an attempt to decimate the Iranian Kurdish resistance.

While many have hopes for the internal pressure to effect change in Iran's government, the "reformists" to date have been unable to organize effectively. Their 2005 boycott of the presidential elections split the reform party over its rejection of Hashemi Rafsanjani and gave the election to Ahmadinejad. Their fears over repression were soon met. Members of the reform party had stated that the elections are controlled by those with the money and the power in Tehran.

In an attempt to bolster democracy organizations in Iran, the US has included some $25 million in funding in the 2008 budget. Open Democracy, a Soros funded organization, believes that these funds are counter-productive because receiving them inside of Iran is against Iranian law and can have severe repercussions such as imprisonment. Senator Leiberman recognized the problem, but stated that the grants would be made available through different organizations if requested.

Iran has only recently released some suspected American-Iranian democracy advocates from the notorious Evin prison having already punished their families by confiscating their property and forcing them to pay exorbitant fees for food and medical treatment at the prison as well as huge amounts of bail. Iranian security claimed that the jailed activists were American spies and/or propagandizing against the Iranian government. Some speculate that their release was to spare an open trial while simultaneously sending a message to other activists that they will be jailed if they continue to act.

The release might also be construed as setting up a favorable view of the Iranian government prior to Ahmadinejad's visit to the UN. Iran has long been accused of human rights abuses. Iranian security forces were implicated in the death of a Canadian-Iranian journalist.

Will the Real Iran Please Stand Up

Due to Iran's continued support for terrorists, Iran's human rights record and the 9/11 report implicating Iran in the transit of an estimated 7-10 of the terrorists who hi-jacked the airplanes that day, Ahmadinejad's visit to the UN and his address at Columbia University are being protested by various groups.

Ahmadinejad says there is no reason for war with the US and declares the state of Iran to be strong regardless of sanctions. At the same time, he will be giving a speech at the UN that will directly challenge the US while in Iran they prepare for war.

Through a small window into Iran, the effects of sanctions are apparent. In the world re-known carpet bazaar, the stalls are only half full and the patrons are scarce. Vendors remain optimistic that the desire for these carpets will keep buyers looking for ways to obtain them. Yet, the damage is already apparent and the possibility it will be erased any time soon is disappearing almost daily.

Additional Reading:

Iran-Russia Matrix
China-Iran Matrix
Warsaw Pact2
From Russia With Love
Economic Warfare: Iran Sitrep
Economic Warfare: Iran-Help and Hindrance
Iran Gas Rationing: Preparing for War, Economic or Subordinating Dissidents?
Economic Warfare: Iran Crisis and the British Sailors
Economic Warfare: Axis of Evil
Democrats' Iraq Strategy

Thursday, September 20, 2007

Ahmedinejad At Ground Zero?

I haven't written for awhile. I am working on an my epic review of the current Iranian situation coming soon along with a video on how to fight the war of ideas.

In the mean time, reports are out that Iranian President of Terrorism Inc, Ahmedinejad, is looking to visit Ground Zero and "Lay a Wreath".

A lot of people are extremely unhappy.

As Mark Levin points out, at least 10 of the 19 Saudis who flew planes into the WTC, the Pentagon and who were taken out by the flight 93 passengers, passed through Iran with some official assistance. Iran, as a backer of Hezbollah, is certainly responsible for a lot of deaths. A lot of American deaths including the Marines in Lebanon, enumerable tourists, aid workers and then the Air Force deaths at Khobar towers among so many. Not to mention Ahmedinejad's participation in the Iranian Revolution and it's taking of 66 American hostages.

NOT to mention the hundreds, possibly thousands of US military personnel killed or wounded in Iraq by the Iranian Proxies with Iranian Weapons and Iranian Money.

NOT TO MENTION, Ahmedinejad declares that 9/11 is an inside job (when he knows different) and has facilitated the despicable rumors that "Jews Knew" and stayed home, among many other things he has said officially or "unofficially" through his proxies.

He is looking for a photo op so he can claim back in Iran that he paid homage to the people killed by their own government. That is how this evil scumbag works.

The New York police who arguably have one of the best counter terror intelligence organizations amongst any international city and possibly within this country, have refused security at the site stating safety due to construction. That is probably the most polite thing they could have said that would not cause an international incident in the city of the world that hosts the UN.

But, some sources claim that the Secret Service, which provides all visiting diplomats security within the US, will escort him there any way.

That is what is making people angry. I'm with them. If I could get there, I'd stand in front and get arrested, too.

However, I don't endorse the suggestion of Scott at Mark's blog. No assassination of national leaders on US soil. That would start a war that we aren't ready for. I prefer to think of Ahmedinejad in the post revolutionary, revolutionary Iran, dangling from a rope attached to a crane as it is slowly pulled up, in a square surrounded by on lookers, who, unlike those watching the repression of Iran today, will not stand silent, but cheer as his tongue hangs out, his eyes bulge and his face turns blue.

Uncle Tito's Fate at the hands of the oppressed.

Friday, August 17, 2007

Cold War: Warsaw Pact 2 and The Beginning of History

Well, no one can be surprised after the last seven years that Putin sees the way to economic power for mother Russia is to, once again, become the economic and military rival of the United States and NATO. Russia has been angry since the US support of Georgian independence amongst other former republics, as well as the offer for these nations to join NATO.

This offer includes protection from possible forceful re-integration into Mother Russia via outside arms or internal Russian supported political coup. But, more importantly, it was a bid to increase influence in an area rich with oil and natural gas in order to diversify US supply.

To offset that and what Russia sees as meddling in the affairs of its client nations, regional resources and economic viability, Russia created the SCO in 2001 along with China and several other nations:

Founded in 2001, the SCO, which includes the four central Asian nations of Kazakhstan, Kyrgyztan, Tajikistan and Uzbekistan as well as China and Russia, is rapidly gaining a reputation as an anti-Western organisation.

That image seems to be one that Mr Putin is happy to cultivate. Analysts say that the Russian president believes the organisation is emerging as a bloc that is rapidly becoming powerful enough to stand up to the West.

Russia's most pro-government newspapers, often used by the Kremlin as propaganda vehicles, yesterday proclaimed the arrival of an "anti-Nato" alliance and a "Warsaw Pact 2".


Now, another reason why calls from the right to bomb Iran and calls from the left to invade Pakistan are equally inept without some sort of plan to dissuade interference from certain actors:

Yet the SCO has wider ambitions. Pakistan, India and Mongolia all want to join - as does Iran, whose president, Mahmoud Ahmedinejad, attended the summit as guest of honour, a title bound to rile Washington. Iranian membership of the SCO would pose an enormous headache for the United States. Like Nato, its treaty states that an attack on one member is regarded as an attack on all, raising the prospect that the United States could find itself aligned against both Russia and China if it invaded Iran.


Something that should have been apparent without the SCO since China and Iran have very important Natural Gas and Oil contracts. China might protest mildly about Iraq, but it would certainly have a much bigger issue if Iran was invaded and the 20% of its energy resources were cut off. This is also the reason that Iran has felt safe in providing training, money, weapons and fighters for the Shia in Iraq. They fear no retribution, not just because the American congress is weak or our forces overstretched, but because they have the Russian Bear and the Chinese Yin behind them.

This is why we have chosen to combat Iran through economic warfare. Russia knows exactly what is happening because it has been there before. Iran is one of its essential "neighbors" in keeping the Caspian Sea and its energy resources (oil and gas) free and clear for exploitation by Russia and its compatriot states in the Caucuses.

This year, Russia, Turkmenistan, Kazakhstan and Uzbekistan signed a deal to expand a Soviet scheme for delivering gas from the Caspian region. This could challenge Western plans to open new supplies, independent of Russia, by routing exports across the Caspian Sea. Nursultan Nazarbayev, the Kazakh President, said that the group “should create an ‘Energy Club’, which . . . could become one of the key elements of Asian energy strategy”;


It has many cooperative pipelines with these organizations through which it derives a good portion of its yearly revenue. Russia and Kazahkstan are investing heavily in a pipeline that will stretch from Russia to China through Kazahkstan and allow direct delivery of oil to energy hungry China.

The report continues that China would probably block Iran from joining the organization since it does not want to anger the US and create a financial and political situation. India is very likely to remain an observer as well since it is working on becoming its own power in the region and has recently signed a deal with the United States for nuclear technology.

Additionally, this issue with growing Russian cultivation of Iran (where the Russian's have continued to work on the Iranian Bushehr Nuclear Plant for only half the necessary monthly payments) and Iran continuing to attempt to influence Iraq as well as potentially develop nuclear weapons, is what prompted the recent completion of an arms deal with Saudi Arabia even after serious opposition in the US congress due to perceived continuing Saudi inability to curb extremists from entering Iraq. The US sees the Russian/Chinese moves to influence the region as a threat and seeks to insure the major oil exporter remains firmly in the United States' pocket.

Out of all the West’s worries about the SCO, the greatest should be control of energy supplies. The war games, at the moment, are a showy distraction.


Even so, today's exercises will serve as a reminder that the global balance of power is shifting.

For the first time ever, China is deploying troops, tanks and aircraft on a combined mission abroad.

The exercises, being held in the Russian region of Chelyabinsk, involve 6,500 troops, heavy weapons and combat aircraft.

While the goal of the mission is to simulate the capture of a city held by terrorists, the sight of Russian and Chinese troops marching together will give observers in Washington pause for reflection.


This also prompted the US to complete a $30bil arms deal with Israel.

This situation may give a whole new perspective on Chinese goods that are suddenly no longer good enough to be sold in the US and a falling Asian market that tripped some panic in the US, London and Germany over sub prime loans and unrecoverable debt by over leveraged mortgage companies.

By mid-morning the FTSE 100 was up 54 points at 5,913, France's CAC 40 had risen 22 points to 5,288. However, Germany's DAX had slid 11 points, to 7,259.

Asian markets have continued their fall today, with Japan's Nikkei tumbling by 5.4pc and Hong Kong's Hang Seng dropping by 3.3pc.[snip]

Mark Mobius, a leading fund manager at Templeton Asset Management, said fear was driving the markets, especially in Asia. "It's a selling panic," he said.


Things do not happen in a vacuum.

Russia is building Iran's nuclear plant and China sells Iran huge amounts of AK-47s, rockets, man-pads, SAMs and other weapons that make their way into Iraq and to mujihadeen in Afghansitan with the biggest arms dealer (a Russian) shipping arms to Iraq, Sudan and other hot spots.

Who are we at war with?

Somebody might want to look into Putin's eyes again.

Update: Russian Bombers flying in NATO space August 17, 2007

Other Posts/articles:

Cold War Continues: China Iran Matrix

Cold War Continues: Russia-Iran Matrix
To Russia With Love
The Importance of Being Taiwan
India Defends Nuclear Deal with US
Economic Warfare: Iran SitRep

Thursday, August 16, 2007

Iran Gas Rationing

Just a thought on recent gas rationing in Iran. As Ahmedinijad consolidates power by placing compatriots and fellow IRGC members in power, stacking the election certification board and generally destroying any progress of the reformists in the last decade, it strikes me that gas rationing that was not necessary before has one of two purposes:

1) Reserves for the military pending an expected attack

or,

2) A way to limit the movement of people around the country, to limit the movement of dissidents or for groups to gather and, of course, limit the common citizens' ability to oppose whatever action he is about to take.

Not everything, I suppose, is about economics.

Economic Warfare: Iran - Help and Hinderance

America's financial war on Iran

The UN sanctions prohibit transactions with a small number of Iranian banks, companies and individuals said to be directly involved in the country's nuclear programme or in support for terrorism.

But there is also a second, potentially more powerful, element. Since September 2006, US officials have been travelling the world talking to banks and company bosses. They aim to persuade business to voluntarily abandon or scale back all dealings with Iran.

Mr Levey, who is spearheading the Treasury's campaign, insists he is already getting results.

"There is significant evidence that it's working in the sense that Iranian business is being subjected to greater scrutiny and it's more difficult for them to operate," he says.

"A number of major financial institutions have cut off doing business with certain Iranian banks or with Iran entirely."

American financial pressure shows up in small ways. For example, international banks have become reluctant to issue letters of credit on Iranian trade, or only on exorbitant terms.

Letters of credit guarantee payment in international commerce. The alternative is paying in cash.


This has been going on since last September 2006. The HSBC was a major investor and handler of Iranian accounts. But, as the recent designation of IRGC as a terrorist organization (thus, all members are terrorists), one more "loophole" was closing against an organization that holds the reigns of companies that buy nuclear materials and other prohibited items.

So is American financial pressure as effective a tool as US officials claim?

Dubai is a good place to find out - a rich Gulf city that is Iran's economic gateway to the world.

A quarter of Dubai's population are Iranian and much of Iran's trade goes through Dubai. The relationship is similar to China's link with Hong Kong.

Iranian businesses in Dubai are universally reluctant to talk about such a sensitive topic. They risk offending either the Americans or the government in Tehran, more or less whatever they say.


Dubai and other international businessmen are only interested in one thing: money. They invest on that pre-requisite alone. Political, ethical nor humanitarian issues are at best, secondary concerns. Further, some businessmen are from the region don't see any ethical or political issues because a country like Iran is familiar to them in how it operates. The main concern is: is Iran stable enough that investments will see a return. At this moment, with Ahmedinijad exerting serious control over both the political and economic sectors, the answer is "yes" providing expected oil prices continue to rise and keep money in Tehran's pocket. Or, more importantly, as long as Iran can give the illusion that all is well (such as keeping $60 billion in reserve cash in a European bank while simultaneously being unable to pay workers, pay the fees for the nuclear plant at Bushehr and numerous other economically troubling concerns).

Mr Hashempore says Iranian businesses are all worried about US financial pressure, but so far, they are finding ways round it.

Mr Hashempore confirms that many Iranian firms are barred from doing deals in dollars, but they cope by switching to euros or yen instead.

He also says that many Iranian companies are able to pass themselves off as local Dubai businesses, which means they can get loans and letters of credit from international banks.

Under Dubai law, foreign enterprises are required to have a local business partner, nominally with a 51% stake in the firm.

These partners are usually paid a fee and play no active role in running the business,
but for legal purposes, the firm can say it is locally-owned and thus avoid American financial pressure.


This is nothing new. Saddam was using the same loopholes to support his failing regime, purchase materials, launder money, etc, etc.

The obvious way to strangle the economy is to hit the vulnerable oil and gas industries. And yet, for international energy companies, Iran is potentially a mouth-watering prize.

European energy giants - including Shell, Spain's Repsol and Total of France - are eyeing up big up Iranian deals, as are Chinese and Malaysian oil firms. But in so doing, they all risk alienating the US, the world's only super-power.

Most oil companies do business in the US - and that would be under threat if they get too close to Iran.


There are already sanctions in place that limit investment to $20mil/year. This has greatly damaged an already aging oil infrastructure. A recent report indicates that Iran has twice the reserves of Russia, but Russia produces six times the daily output of Iran.

"What you're seeing is a strange sort of dance with some of these energy companies and they're all hoping that another company will be the first one in to become the lightning rod for the US reaction," he explains.

"The first company that does break ranks and makes a major investment will lead to an opening of the floodgates," he says, meaning that if one oil company does a deal with Iran, lots of others may follow.


So, basically, everybody is waiting for the first company to take one for the team and then they will be happy to build up the Iranian oil and natural gas fields, provide a criminal, terrorist, oppressive regime with the revenue that would sustain it for decades more.

Thanks big oil. For that reason alone, I'd be willing to support the "go green" protest the oil companies radicals.

Other Iranian Coverage:

Voice of America: Iran's Fifth Column


Wednesday, August 15, 2007

Economic Warfare: Iran SitRep

There are many interesting things going on in Iran and with US Foreign Policy.

Economic Brinkmanship

Ace of Spades points out that the US is going to designate the IRGC (Iranian Revolutionary Guard Corps) as a Foreign Terrorist Organization:


The designation of the Revolutionary Guards will be made under Executive Order 13224, which President Bush signed two weeks after the Sept. 11, 2001, attacks to obstruct terrorist funding. It identifies individuals, businesses, charities and many extremist groups engaged in terrorist activities. The Revolutionary Guards would be the first national military branch included on the list, U.S. officials said -- a highly unusual move because it is part of a government, rather than a typical non-state terrorist organization.

The order allows the United States to block the assets of terrorists and to disrupt operations by foreign businesses that "provide support, services or assistance to, or otherwise associate with, terrorists."

The main goal of the new designation is to clamp down on the Revolutionary Guards' vast business network, as well as on foreign companies conducting business linked to the military unit and its personnel. The administration plans to list many of the Revolutionary Guards' financial operations.


According to the report, all known individuals and businesses related to the IRGC will be listed. This comes on the heels of continuing allegations from the the US that Iran is providing weapons and money to insurgents in Iraq and Afghanistan while Ahmedinijad denies any involvement without actually directly denying knowledge:

When asked if Iran is supplying weapons to the Taliban by a reporter from Voice of America, a U.S.-funded outlet, Ahmedinejad laughed and said the United States doesn't want Afghanistan and Iran to be friends.

"The same allegation are made in Iraq. They are saying that they discover some weapons," Ahmedinejad said at a news conference with Afghan President Hamid Karzai. "What is the reason why they are saying such things? Iran is a big country. I have serious doubts about this issue."


Per a March review of the situation, the IRGC owns and operates upwards of 50% of industries and services within Iran. It also employs about 50% of the government work force. Previous sanctions against the Iranian government, including those originally in place since the 1979 hostage crisis, were specifically against the Iranian government in Tehran. The Iranian government has been transfering industries and control of service sectors to the IRGC, it's commanders and other related individuals in an attempt to side step these sanctions. This new designation will close up the loop hole that they operate in, force tighter controls by banks, companies and states who want to do business with the US to comply and, finally, allows the US to bring to bear other important tools through state, treasury, FBI and other government organizations.

Allahpundit at Hotair has a run down of recent attempts over the last year to squeeze the Iranian government with economic sanctions:

The two rounds of UN sanctions on Iran for noncompliance on its enrichment program specifically targeted the assets of the Guard’s top commanders; a parallel track of unilateral U.S. sanctions since January (around the same time Bush informally declared war on the regime) has been aimed at squeezing foreign financial institutions who deal with Iran. Formally designating the entire Guard a terrorist group will, I’m guessing, let the feds reach far beyond the commanders and squeeze even harder. Revisit this WaPo piece from April, also written by Wright, and marvel at the massive power they now enjoy within Iran under Ahmadinejad, himself a veteran of the group.
Another economic pinch came in October of 2006 when November and December oil futures took a precipitous drop by as much as $20 per barrel (from appx $73/barrel in June 2006 to appx $56/barrel) for an estimated net loss of up to $25 billion for the Iranian State revenues (17% of revenue; total budgeted revenue $143 billion) and did not regain the top price until almost a year later. The Iranian economy is largely based on oil and natural gas exports with 70% of its revenues depending on this business stream.

At the same time, in September of 2006 the US began to quietly advise international banks of the illegal or improper transfer of funds from credit lines and accounts to Iranian agencies and companies involved in the development of Iran's disputed WMD/Nuclear programs, terrorist organizations, illegal arms purchasing and other dubious projects instead of in infrastructure, businesses, oil and natural gas development that would have provided revenues to pay these debts. Besides being illegal and against known sanctions or laws of the banks' host nations, it also made Iran a bad credit risk. Import and Export businesses in Iran were affected as well when credit lines were not extended. These businesses that included food, textiles and manufactured goods, had to scramble for cash upfront to purchase goods, driving inflation even higher.

Housing prices have doubled, resources such as gasoline and natural gas have been rationed and teachers and other government workers have been unpaid for almost a year. This is nothing new as the government under Ahmedinijad has run into cash crunches since his tenure began.

Economic Mixed Bag and Caution Over Projected Impact

Some sources believe that the current Iranian economic situation is not all that bad:

Iran’s economy has stagnated in recent months, partly because of the country’s growing isolation in the world economy, partly as a result of dipping oil prices, and partly because of the government’s statist policies which limit private enterprise. Prices on goods like vegetables have tripled in recent months, while housing prices have doubled since last summer, reports the Associated Press. Economists say the government, which oversees 7 percent of the world’s oil reserves, has failed to redistribute this windfall of energy profits. Yet Torbat says Iran’s economy is not faring poorly when compared to its Middle Eastern neighbors. After all, annual growth hovers around 5 to 6 percent, Iran has $60 billion in foreign exchange reserves, and it boasts a current accounts surplus (that is, it exports more goods and services than it imports). Unemployment figures (officially 10 percent but probably closer to 30 percent) are also on par with the region, Torbat says
. There are several problems with this analysis, though, it is important to note that the Iranian economy had slightly stabilized in the spring of 2007 when, after US sanctions and refusal to allow Iran to trade in US dollars, it switched to the EURO. The euro is strong against the US dollar and provided an uptick in value of the Iranian Rial, but decreasing oil prices are, once again, placing a cash crunch on Tehran.

Problems with the above analysis include a comparison to other ME neighbors, two of which (Iraq and Afghanistan) are war torn nations as opposed to Iran's comparably stable and industrial nation. Second, regardless of "growth" that "hovers around 5 to 6 percent", it is offset tremendously by the rate of inflation that is somewhere between 16% and 22%. Inflation trumps economic growth. Third, Iran may "export more goods and services than it imports", but that is complete misdirection. Iran is a net importer of several essential goods and resources including gasoline (they only have one refinery) and manufactured goods like household and industrial equipment, cars, cooking oil, etc. In terms of food, Iran has been pressing subsidized farmers to export wheat and other agriculture, forcing the price of food to increase substantially as it must be imported to provide for the general population.

However, some companies and nations continue to invest in Iran including China, Canada and Gulf nations like Dubai. Creating some jobs, but far below Ahmedinijad's campaign promises to create almost a million jobs a year. There are also deals with European nations and Turkey for natural gas and a recently inked deal with Iraq for a pipeline to refine oil and sell the finished product back to Iraq.

This deal precipitated the replacement of Iran's oil minister:

Reuters noted on August 13 that the Oil Ministry was also accused of agreeing to provide Pakistan and India natural gas through the "Peace Pipeline" project at a disadvantageously low price. Vaziri-Hamaneh recently rejected claims by parliamentarians that Iranian negotiators had agreed to sell gas at a 30 percent discount. He said there has been no agreement on price, so no discount could have been given. The daily "Etemad" cited regional gas sales as a factor suggesting Vaziri-Hamaneh had been removed. The same paper on August 13 observed that Vaziri-Hamaneh had also failed in the past two years to attract investment from major international oil companies.


The last is a little disingenuous as ongoing and increased sanctions keep most companies from investing anything beyond $20 million/year per US Law and UN sanctions. There is also a problem that Iran has consistently overspent its budget and has borrowed heavily against future oil revenues while US efforts with international banks have made Iran a much higher risk for investment. Further, the aging oil infrastructure requires many expensive updates just to maintain status quo, much less increase its viability. Finally, Iran has not been a good partner by providing its share of the costs for infrastructure development. This makes oil companies reluctant to invest heavily and undercut their own profits.

Another recently replaced minister notes other issues:

Ahmadinejad has been criticized across the political spectrum in Iran for the country's high inflation, and for ploughing extra revenues from high crude oil prices into high-spending infrastructure projects.

In his letter, Tahmasebi cited an "emphasis on the freezing of prices of industrial goods such as cement, sugar, dairy products, vehicles, and home appliances, while the cost of all the other elements in their production has increased."

He also complained that "the ministries of energy and oil could not give factories the necessary water, electricity, and gas. This emanated from a lack of investment in their expansion."


"Other infrastructure" includes new military buildings and the Bushehr Nuclear Plant that costs $25 million/mo just to continue work. According to Atomstroiexport:

Russia has said it will stick to the project, worth about $1 billion. But Atomstroiexport said Iran was still paying just a fraction of the $25 million a month needed to finish the plant.

"Confidence in the project has been undermined," said Atomstroiexport spokeswoman Irina Yesipova. "It is an unstable situation where there are lots of announcements but no money."

Iranian officials insist they have made payments on time and say Moscow is delaying because of Western pressure.

"There is just not sufficient financing and that has influenced confidence, the confidence of the Russian side and Russian subcontractors towards the Bushehr project and towards Iran," Yesipova said.


Other money has gone towards Iran's conventional weapons build up, the financial and material support of terrorism and dubious programs to create "jobs" that are state programs without any revenue stream or return for the government.

The outgoing industry and mines minister, Alireza Tahmasebi, has faced more concrete problems. Tehran-based economist Said Lailaz wrote in "Etemad" on August 13 that figures provided in recent years by Iranian Central Bank hinted at weak -- and declining -- industrial output. Lailaz wrote that the growth in the Persian year to March 2007 of the value of industrial output was the lowest in seven years despite significant state investment each of the past two years. Lailaz forecast continuing industrial decline, leading him to conclude that "for the first time since the [Iran-Iraq war of 1980-88], the engine of Iran's economy, the industrial sector, has effectively broken down." Lailaz did not lay the blame solely on Tahmasebi; on the contrary, he pointed out the role of what he described as "contradictory" government policies. He said the government apparently preferred to pour money into its own job-making schemes, rather than into existing industrial enterprises. Lailaz also argued that industry was hurt by the government's tampering with tariffs, and by its liberalization of some imports while the prices of some domestically made goods were fixed. Moreover, he noted the inflationary effect of the spending of billions of petrodollars inside the country.


Unstable Economics and Consolidating Power

Like Putin's move to place former KGB compatriots in key government and industry positions, Ahmedinijad has been replacing ministers with former IRGC and known hardliners as well as stacking the election certification board in time for the upcoming parliamentary elections. An obvious move to insure that parliament, as well as other government sectors comply with his programs.

As the economy lists from one side of the line to the other, Ahmedinijad, with the support of certain elements on the governing council, continues to consolidate power. the US, in turn, continues to put pressure on every point of the Iranian economy. Iran, in return, ratchets up its rhetoric and support for terrorists in a proxy war against the US. Their sole intent is to force the US out of the region and provide much needed breathing room from the ongoing economic destruction of their regime.

Thursday, June 28, 2007

This is a "Did You Know?" Post

Did you know that the repelled an Iranian gunship a few weeks before they captured the British sailors?

Duty in the Desert has the scoop from an Aussie paper:

"What I've been told by several sources, military sources, (is that) there was a similar encounter, in this case between the Royal Australian Navy and Iranian gunboats, some months ago, or at least some months prior to the seizing of the British sailors," Gardner said on ABC radio today.

"The Australians escaped capture by climbing back on board the ship they'd just searched. I'm told that they set up their weapons.

"No shots were exchanged but the Iranians backed off and the Australians were able to get helicoptered off that ship and they didn't get captured."

Saturday, June 09, 2007

The Dissident Frog: An American in French Clothing

One of my favorite satirists is the Dissident Frog. He went dark for awhile, but he has come back stronger than ever with a new website he personally put together.

He provides this offering: Meltdown Mahmoud

He is a French, but his thinking is very American.

I think he was infected with Reagan Republicanism in the 80's as a young lad and had his switch flipped on September 11.

Thursday, April 05, 2007

Iran British Crisis: Another Take

Publius Pundit says that the "Softer, Gentler Iran" is a made for media attempt to show that Iranians can be trusted with nuclear technology and will play by the "rules".

Belmont Club says that there was and is an ongoing prisoner swap.

British troops left on a plane for England.

Your people have been really kind to us, and we appreciate it very much," one of the British men told Ahmadinejad in English. Another male service member said: "We are grateful for your forgiveness."

Ahmadinejad responded in Farsi, "You are welcome."

Three members of the crew were later interviewed on Iranian state-run television, apologizing for the alleged incursion into Iran's waters and again thanking Ahmadinejad for their release.

"I can understand why you're insulted by the intrusion into the waters," said Lt. Felix Carman, shown seated on a couch.

"Thank you for letting us go and we apologize for our actions, but many thanks for having it in your hearts to let us go free," Turney said.


ROE, SOP and Rules for Captured Prisoners of foreign hostile nations.

London Times: From War to Costume Party

BBC: Apologies for the intrusion.

BBC: Pragmatists in Iran Prevail?

The Independent: All the World's a Stage

I would be surprised if these sailors and marines are repatriated to their ship. I think there is going to be a serious problem with their behavior while in captivity. While the country is publically extatic to have them returned, privately, they've caused quite a bit of consternation. Were they coerced? Or did they treat it as one big "lark"?

Either way, the questions will remain with them. They will be debriefed and assigned a desk job "stateside" anyway. What happens after that is anyone's guess, but, aside from the method of their capture due to lax oversight that may change SOP, and how to behave in captivity.

More information on Economic Warfare.

Finally, a thought regarding the immediate "why" Iran may have interdicted the British right at that moment. From October 2006:

From October 30 to 31, 2006, U.S. military forces in the Persian Gulf will join the armed forces of several other countries to hold a naval exercise in the interception and search of ships carrying weapons of mass destruction (WMD) and missiles. Though long planned, the exercise has added importance because of this month’s nuclear test in North Korea and President George W. Bush’s subsequent warning that Pyongyang will be “held to account” if it sells nuclear material to Iran or al-Qaeda.

Proliferation Security Initiative

The exercise, involving the simulated interdiction and searching of a cargo ship, is part of the Proliferation Security Initiative (PSI), a program proposed by President Bush at a G-8 summit in Poland in May 2003. Intended to keep WMD out of the hands of U.S.-designated rogue states and terrorists, PSI calls for sharing intelligence information and practicing interdiction techniques and coordination. The first and foremost PSI target has always been North Korea, but its most widely known and successful action was the 2003 interception of the Libyan-bound ship BBC China, which was ordered into an Italian port and found to be carrying Pakistani-designed uranium enrichment centrifuge parts.


Maybe, just maybe, there was something in the water that the IRGC didn't want the British to interdict and find. Certainly, the bruhaha over the missing Brits caused the ships in the area to change operations. Like, say, not searching some ships it would have? Or not seeing a ship that slipped by the net?

Iran press has recently released statements stating that the Iranians will triple their enriched uranium output. Something that had many observers scratching their heads wondering how they would do that with the Russians gone.

Maybe it is easier than we think.