Category Archives: Sanctions

Disturbing Solo Brainstorming: So What is the Goal in Iran?………

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The Obama administration has been adamant that regime change per se is not the goal of U.S. sanctions. On Wednesday, a Washington Post article initially quoted an anonymous U.S. official as saying “regime change” was the goal, but then was quickly corrected to say “public ire” was the sanctions’ goal, not regime change. Today, a U.S. official told AFP that the goal of the sanctions was to “close down” the Central Bank of Iran (CBI)……..

This is confusing. There are conflicting reports about the goal in Iran. The three (red) goals given above do not include the ‘nuclear’ program which the Iranians insist is civilian. The Obama administration and the Israelis and the Saudi princes and their Gulf Salfi and Wahhabi faux-liberal admirers insist is for military purposes. There are two reasons not mentioned here for the sanctions and the possible war that may follow: Reason One is to keep the Israeli extreme right-wing government quiet before the 2012 U.S. elections. If you don’t believe that is one important, possibly the most important reason, then I still have that perfect old lame camel for sale. The Likud and its American lobbyists and worshipers can make Mr. Obama’s life miserable between now and November, and they probably will do so anyway.
Reason Two may be to keep Secretary of State Hillary Clinton from being “disturbed”. Lately she has been describing many news, allegations, and rumors about the Iranian mullahs as “disturbing” or that she is ‘disturbed’ about them. The secretary and her spokespersons have been doing that at a ‘disturbing’ rate.
I am sure my confusion, and yours, has not been clarified by this individual solo brainstorming by yours truly.

Cheers
mhg



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Blockades from Cuba to Iraq to Iran, Netanyahu as King of NATO and the Confederacy ……………

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But will an oil embargo work? Not as far as oil analyst Paul Stevens of London-based Chatham House is concerned. “If you look at history, oil embargoes have never, ever worked and never, ever been effective…so it’s not going to work,” he said. “It’s just going to cause a great deal of disruption.” Stevens says EU countries that depend on Iranian oil can find new suppliers – like the Gulf states. But Iran may also find new buyers for its oil in Asia. Iranian officials have downplayed the impact of Western measures – including new U.S. sanctions that could reduce Iran’s ability to sell oil and other exports. But Tehran also has threatened to close the critically important Strait of Hormuz, the entrance to the Persian Gulf………… For his part, Stevens of Chatham House doubts Iran will go through with its threat to close the Strait of Hormuz – in part because it relies on the waterway for its own oil exports. But he believes the deepening standoff between Tehran and Washington, in particular, is creating a dangerously unstable situation. “By trying to limit Iran’s oil exports, it [Washington] is essentially escalating the situation into what could very rapidly become a crisis,“………

Every time Mr. Netanyahu threatens to wage his own war, Western powers (mainly the Obama administration) panic and tighten their sanctions, really a blockade, against Iran. It is Mr. Netanyahu, a supreme hustler if there ever was one, who calls the shots for the West over many things Middle Eastern, from Palestine to Iran. He exercises his veto power over the two branches of the American government. He has a direct route (hotline) to the leadership of the Congress, which is willing to kiss his posterior in a way he would never dream the Israeli Knesset ever would. He would never get a standing ovation in the original Knesset in Jerusalem. He is fawned upon so much by the American right (and some on the left) it is a wonder he doesn’t immigrate back to the USA and run for office in Georgia or Alabama or Tara.

Boycotts and sanctions rarely work, they never worked against Cuba (been over fifty years) or Iraq (led to an invasion). They do hurt the people. The Cuban boycott caused economic hardships, and the misery it caused only pushed many thousands of Cubans to leave their homeland and cross to Miami. It gave many U.S. administrations the alibi to blame Cuban misery completely on the Castro regime (the Castro regime was partly responsible for erecting inflexible out-dated Soviet-style institutions and stifling dissent). The Cuban boycott has no justification anymore. It has been sustained for decades only by one political pressure group in the United States and can be summarized by a seven-letter word: FLORIDA.
 
The Iranian boycott is even tougher than the Cuban one, it is nearly a blockade by all Western powers that could lead to a war. Yet it is also unlikely to work against Iran: the theocratic regime in Tehran is as confident of being on the right, as committed to not buckle in the face of foreign threats, as Castro was for so many decades. They are as ideologically stubborn, albeit at a stiff economic cost to their people. Besides, they have something the communist Castro has never had since at least July of 1956: they believe divinity (G-O-D) is with them, although I am not sure about h-i-s-t-o-r-y.

Then there are the petroleum and the gas fields. They possibly have the world’s second largest petroleum reserves and possibly the world’s largest gas reserves. Meaning they feel they can outwit and out-wait the West and its blockade. Besides, the way the petroleum markets work makes it hard to distinguish Iranian or Angolan petroleum: there will always be demand for Iranian crude and gas, probably at discounted prices. Both have been mainly sellers’ markets for some time, as countries try to secure sources of supply.
Cheers
mhg



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Panetta the Wild Political Animal: repeating Iraq in Iran?………..

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Panetta calls for further economic pressure on Iran. The US Defence secretary believes Iran is laying the groundwork for making nuclear weapons but is not yet building a bomb. Leon Panetta called for continued diplomatic and economic pressure to persuade Tehran not to take that step. As he has done previously, Mr Panetta cautioned against a unilateral strike by Israel against Iran’s nuclear facilities, saying the action could trigger Iranian retaliation against US forces in the region. “We have common cause here” with Israel, he said.
…………


We have common cause here: it is more than a common cause. In fact U.S. Middle East foreign policy as regards the eastern Mediterranean and Iran is widely perceived in the region to be made by Israel, through the supremacy of its lobbyists in the U.S. Congress. The Obama administration has been relegated to rubber stamping it.


Leon Panetta
is a political animal if he is anything: after all, he was White House chief of staff under Bill Clinton. You can’t get more political than that. He is talking as a politico here, not as US Secretary of Defense or a statesman. The sanctions against Iran are becoming nearly as tight as a blockade. The financial sector is sanctioned by the US Knesset Congress. The petroleum sector is about to be blocked by the US government and Western Europe. What might eventually be left un-blocked are food and medicine. In other words another Iraq blockade imposed solely by the West. We all know what the next step was in Iraq.
Fear and the desperate need for votes next November. That explain Penetta’s call for further economic pressure on Iran. We’ve come a long way from Mr. Obama’s 2009 speech to Muslims and Arabs in Cai
ro.
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mhg



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Knesset Bill HR 1905: US Congress Going Rogue on Iran………..

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The “Iran Threat Reduction Act” HR1905, passed on November 2 by the House Foreign Relations Committee, neither reduces an Iranian threat, nor puts significant pressure on Iran’s leaders to change policies with which the United States disagrees. A corresponding bill has been introduced in the Senate (S1048). If passed, the House bill would, however, make it illegal for any American diplomat to speak to or have any contact with an Iranian official unless the President certifies to Congress that not talking to the Iranian officials “would pose an unusual and extraordinary threat to the vital national security interests of the United States” 15 days prior to that contact. Former U.S. Ambassadors William Luers and Thomas Pickering point out that this bill is not only illegal, it places the United States in greater danger in the world…….”

(c) RESTRICTION ON CONTACT. — No person employed with the United States Government may contact in an official or unofficial capacity any person that — (1) is an agent, instrumentality, or official of, is affiliated with, or is serving as a representative of the Government of Iran; and (2) presents a threat to the United States or is affiliated with terrorist organizations. (d) WAIVER. — The President may waive the requirements of subsection (c) if the President determines and so reports to the appropriate congressional committees 15 days prior to the exercise of waiver authority that failure to exercise such waiver authority would pose an unusual and extraordinary threat to the vital national security interests of the United States.”
Cheers
mhg



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Game of Chess: Sanctioning Central Bank of Iran, Sanctioning Grocers of Natanz……………..

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The legislation requires the US president to impose sanctions on Iran’s central bank if he determines it is facilitating terrorism or the development of nuclear weapons, or supporting Iran’s elite military force, the Islamic Revolutionary Guard Corps. “I believe the central bank of Iran is not only engaging in those activities; I believe it is the ultimate engine of those activities,” said the author of the central bank provision, Representative Howard Berman, a Democrat. The sanctions would effectively block from the US economy any foreign bank involved in significant transactions with Iran’s central bank. The legislation was approved by the House panel …………..

There are many institutions and individuals in Iran that contribute to their nuclear program:

  • The Central Bank of Iran, by virtue of operating in Iran, supervising banks and the balance of payments and maintaining the exchange rate and monetary policy in general helps the nuclear program.
  • An Iranian doctor, by virtue of working in Iran helps the nuclear program (he may treat some nuclear scientist or a procurer of ‘yellow cake’ from Niger).
  • A street sweeper in Tehran (there are many of them since Iranians like their cities clean) helps the nuclear program by virtue of improving the quality of life of nuclear scientists and procurer of ‘yellow cake’ from Niger.
  • A grocer in any Iranian city almost certainly feeds some workers on some not-so-secret nuclear plants, let’s call him the green grocer of Natanz.
  • A home vintner in North Tehran, by virtue of supplying some secret party that some nuclear scientist or some clerk at a nuclear plant might attend, is helping the nuclear program.
  • A baby sitter or a housemaid in Tehran, by virtue of……..


You get the drift. It could be a virtual declaration of war, to which the Iranians will most likely only respond in kind, with virtual retaliation. That is how the Iranians, including the dogmatic mullahs, operate in the game of chess their ancestors invented. That is why the alleged Saudi ambassador plot sounds so ridiculous, regardless of all the “weighty” Western leaders who endorsed its veracity. It does not fit the pattern of a game of chess.
(one good thing is that the bill leaves it up to POTUS to decide if the Central Bank is engaged in such activities, The bad news is also that it leaves it to POTUS).

Cheers
mhg



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Quoting Frank Sinatra: Was the Iranian ‘Plotter’ Entrapped?………….

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And all at once it seems so nice
The folks are throwing shoes and rice
You hurry to a spot that’s just a dot on the map
And then you wonder how it all came about
It’s too late now there’s no gettin’ out
You fell in love, and love is the tender trap…………..” Frank Sinatra (The Tender Trap)

The question now is: Can the claim possibly be true? Before addressing the question, let me first emphasize that there is almost nothing that the Tehran hardliners might do that could surprise me………… Having said that, however, I must state that at this point, I am highly skeptical about the entire episode. In fact, the more I learn about the claim and the indictment, the more I think this may be a classic case of entrapment on the part of the FBI/DEA agents, of the kind that has happened too many times in the past in the United States to be ignored. But let us analyze the claim carefully to see whether it is plausible at all. Hence, for the sake of argument, let us assume that the claim is true. The question is, What would the hardliners have gained, had they succeeded? As I see it, nothing but more trouble and intense international pressure, not to mention the further wrath of the United States and Saudi Arabia………One may argue that the targets of the operation were Saudi Arabia and Israel. But this seems even more absurd. If the IRI really intends to harm Saudi Arabia, due to the increasing tension with the Riyadh government, why should it try to do it here in the United States and in Washington?……….. As for attacking the Israeli Embassy in Washington, that appears even more absurd…………Thus, at this point, I find the claim that the IRI was involved in the plot highly unlikely. The more information that becomes available, the more it appears like a frame-up of Manssor Arbabsiar, a classic case of entrapment………….”
Cheers
mhg



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Iran’s Military-Industrial-Clergy Complex……..

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Iran’s parliament approved President Mahmoud Ahmadinejad’s candidate as oil minister on Wednesday, putting a military commander who is under international sanctions in charge of production in the world’s fifth biggest crude exporter. A huge majority — 216 of the 246 lawmakers present — voted in favour of Rostam Qasemi, a Revolutionary Guards commander, a rare victory for Ahmadinejad who has been severely criticised by parliament in recent months. Qasemi takes control of the oil ministry as Iran holds the rotating presidency of OPEC where it has strongly resisted calls by more Western-friendly producers to increase output quotas. His most important task will be to stem declining output from Iran’s mature oil fields and develop vast gas resources where sanctions have restricted foreign investment…… The European Union put him on a sanctions list in July 2010, meaning he is not allowed to travel or hold assets in the EU.……….”

A strange appointment. Perhaps not his favorite candidate, but do-able in parliament. President Ahmadinejad initially appointed himself acting minister of oil, but Parliament objected. Gradually we are seeing veterans of the Revolutionary Guards (IRGC), the new elites of Iran, get into prominent cabinet posts. Like China in recent decades, like Egypt under Sadat and Mubarak, like other militarized states, Iran’s IRGC is spreading its tentacles throughout the bureaucracy and the economy. A few decades ago U.S. President Dwight Eisenhower, on leaving office, warned of the military-industrial complex. His fear has been realized in a military-corporate-congressional complex. In Iran we are seeing a military(IRGC)-industrial-clergy complex that is dominating the economy (and the politics). Unfortunately.
For all its worth: this new minister will not be able to attend OPEC meetings in Vienna or anywhere else in the European Union. But that is okay, he won’t miss the ambiance of Vienna.
Cheers
mhg




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On Iraq Sanctions, Iran Sanctions, Cuba Sanctions, Smart Sanctions, Asinine Sanctions, ………….

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Economic sanctions rarely hurt a disfavored regime or its powerful supporters, at least in the short run. They hurt those at the bottom of the ladder. This is a point that we Westerners, with our addiction to the imposition of sanctions to punish bad behavior, should take more seriously than we do………..  This has always been the problem with the West’s sanction addiction. Sanctions nip at those whose lives are already marginal…….. Dictators everywhere try to control the economy, to funnel resources to their friends……… In the case of Iran, the sanctions are manifestly failing, unless their point was to force the government to redistribute the wealth. The regime is proceeding with its nuclear weapons development, and may even be picking up the pace. Western experts differ on how close the regime is to completing its research. The head of Israeli military intelligence recently estimated that Iran may have the capacity to build at least one nuclear explosive device by next year. Things may change. The Iranian regime may give up its nuclear dreams, making the world that much safer, and, incidentally, handing the Obama administration a much-needed foreign-policy victory. But no matter the result in Iran, let us remember, the next time we debate the imposition of sanctions on a rogue state, exactly whom we are really punishing…………

It is highly unlikely that the ruling Iranian mullahs (or any replacement regime) will suddenly give up their nuclear program anytime soon.
As for the forces behind economic sanctions: they are more complex than the writer notes. The famous sanctions against Saddam Hussein’s Ba’ath regime in Iraq did not harm the dictatorship or its elites: it hurt the ordinary people. But these were broad wartime sanctions, not as selective or nuanced as what Iran “supposedly” faces currently. Then there are so-called smart sanctions that are as almost dumb as other sanctions, but maybe not as dumb as asinine sanctions. One reasonable definition of asinine sanctions is that they are the kind that neoconservatives usually prefer. A good example of asinine sanctions are those no one believes in but they are kept in place out of political fear or expediency, like the sanctions against Cuba. In fact, the American sanctions against Cuba are some of the most asinine in history.
Take the sanctions against Iran: they are only partly driven by IAEA requirements, but their depth and scope also reflect the influence of domestic American political pressure groups. These groups include the Israeli lobby (AIPAC, etc), as well as defense hawks on the right (and some on the left). These sanctions are also partly driven by a regional rivalry for domination between the United States (directly and/or through its proxy allies) and Iran. In summary, the scope of the sanctions is the result of domestic American politics as much as Iranian “infractions”. Then there is the ego of some regional allies that the U.S. administration needs to massage, in this case the Israelis, the Saudis and possibly the UAE potentates (there is oil and huge contracts at stake). Then there is the need of some in both Israel and the USA to inflate the Iranian threat and its urgency in order to divert attention away from the urgent need to resolve the issue of the West Bank and East Jerusalem. Among other things………
(Personally, I believe the only “smart” sanctions are those that target weapons and individuals, not institutions. Targeting large institutions almost always tends to harm many ordinary people).

Cheers
mhg




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