Tag: Iran

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The Great Unwinding Has Begun

[dropcap]D[/dropcap]espite the US Treasury’s best market manipulation, which may or may not save US Stocks for the day, the inevitable stomach turning feeling that the World is once again out of control is unmistakably in the air. There has been a subtle feeling that this could be the reality for months now and as Iran’s oil came into the global market, crude’s collapse has been assured. With oil down below $27 a barrel, the market rout that has been underway since the first of January will assuredly continue.

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Courtesy Bloomberg

In all honesty, the global recovery since 2008 has not really been a recovery.  Propped up by cheap credit and a farce of a fracking and shale industry as well the emerging markets, which have been more fictional than fact, the economy should have given way a long time ago.  Humans like to live in a bubble. So long as there has been available credit the false economy could continue lying.

Keynesian Economics is Bringing Everything Else Down

The game that has been played by the central bankers for the last few decades has reached the end.  Over manipulation of the markets which has flowed from the statist policies rooted in Keynesian Economics has warped the global economy.  This unraveling is picking up pace and threatens to derail the global economy.

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Keynesian Economics never made much sense. The idea that central banks could increase deficit spending to ensure economic growth in times of stagnation would eventually be over used. The only surprise is that is has taken this long for a real decoupling to begin.

From Economic Collapse to War

One thing is certain. When global economic stresses increase to an unacceptable level, geopolitical friction begin to stir. Russia cannot sustain itself with oil as low as it is.  Neither can the Arab nations or Iran.

With no reason to keep the guns holstered expect Russia and Iran to be on the move. After all, the best way to raise oil prices is war. If there is war then why not make the most of it and restore some lost territory in Ukraine and other areas Mother Russia once had.

For Israel’s part, the economic level of most of its citizens have always been borderline poverty.  If the tech bubble bursts the government will have to instill emergency measure.  Of course, Israel has always functioned on a different wavelength and there is no reason to assume it won’t do so this time as well. Of course if there is real war, all bets are off.

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Hezbollah Gets a Raise

As I sit here writing this article a monster is being let out of the cage.  All the talk of “peace in our time” too as well as changing strategic partnerships are just euphemisms for politicians who have given the regime in Iran what it needs to go from being an uninfluential terrorist sponsoring state to already on its way to becoming a regional superpower.

Already an emboldened Iran is forcing the hand of the Gulf States to decide between Saudi Arabia and themselves.  It has made it clear that it will pour tons of money that is being unlocked as part of the agreement into its army and terrorist entities.

The idea that Iran needs a nuclear weapon to wipe out Israel is a farce. It does not need nukes nor an ICBM for that.  These are things it needs to attack Europe and America. This what made the Iran Nuclear Deal so ridiculous.  It’s as if the Western powers really believed that Iran just wanted to kill Jews, something none of them really took issue with.

Nasrallah is Coming for Jerusalem

Iran’s main weapon against Israel is Hezbollah.  With Hezbollah’s hundreds of thousands of missiles covering most of Israel, Iran does not need a nuke to knock out Israel’s vital locations. Add to that Russia’s coverage of the Levant under the S-400 system, which makes a surprise attack by Israel against Hezbollah installations daunting to say the least. Hezbollah has also been receiving Russian weapons in its fight against the Syrian rebels.

With Nasrallah to Israel’s North, it is no wonder Bibi is trying his best to be on good terms with Putin.  Ultimately speaking, the USA and Europe have little or no leverage on Iran, but Russia is different and so Bibi’s strategy is to woo the newest Tsar and hope that in time another solution arises.

Iran Unleashed

Now that the nuclear deal is a done and money is flowing into Iran, the stakes in the Middle East have risen.  Iran’s regime is revolutionary in nature.  Revolutionaries do not rest until the revolution is complete. For Iran it is simple. When the Mahdi comes the Revolution is done.  For Iran, their first target is Saudi Arabia and the next is Europe and the USA.  Israel, is of course a target, but one that Iran believes will and can be taken care of fairly easily.

The Mahdi or the hidden Imam will only come when the world reaches a state of chaos. The Western governments and Russia have seen no harm in enabling one of the most dangerous regimes in the History of the World. Of course their rationale seems unchanged from their counterparts over 70 years ago in relation to Hitler.  Then Hitler was “only” after the Jews.  Chamberlain and company saw no problem with letting a bunch of unwanted Jews die to avert war.  Well, war came anyway and with it, the near destruction of the world.

This time, the global elite have made a similar judgement. War is not far off, it is moments away.

Iran Can be Stopped

The irony of Iran’s re entry into global markets is that crude oil prices stand between 29 to 31 dollars per barrel. That is far lower than needed to sustain the Iranian economy. With their oil back into global circulation the price will plummet further.  This means the Ayatollahs cannot wait to pounce on their neighbors, but must move quickly before their economy implodes completely.

This makes Iran extremely dangerous in the short term with the potential for sparking global conflict by attacking Saudi Arabia and Israel. Furthermore by forcing both the USA’s hand as well as Russia’s conflict is in the offing.  

If Iran balks in the coming weeks, their economic turmoil will increase.  At that point the regime will be in danger. Essentially, Iran can be stopped by the regime itself.

Conclusion

Despite neoconservative warmongering against Iran and their client regime in Syria, the best choice of action at this point is to find a way to keep forcing the price of oil lower until Iran either makes a faulty step forward or waits too long to jump. Militarily speaking Israel and those seeking to defend the World from the Mullahs must be ready to fight when Iran attacks which will come sooner than expected.  The rest will be up to the Almighty.

 

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Iran and USA: Cornering Israel

Shortly before President Obama’s final State of the Union Address, Iranian Revolutionary Guards gunboats seized and detained 2 ships belonging to the United States military and the ten marines on board. Less than 24 hours later the marines were released. The typical chorus and rhapsody of neoconservative pundits seriously believed that this would be the “straw that broke the camel’s back” and Obama would have the guts to stand up to the Persians.

The assumption that the Obama administration works according to the same rule book that past Presidents have is a perception that just doesn’t fit.  The Obama administration won’t risk war with Iran, not because it believes war is bad.  Afterall they toppled Gaddafi. They won’t risk war with Iran, because Obama and team and their shrills in the media believe wholeheartedly that Iran should be seen as a future strategic partner.  After all, Obama didn’t even mention the captive soldiers in his State of the Union Address. Of course for Obama, this is more to do with his world outlook than strategic positioning.

Barack Obama is a transformational President. In that regard, bridging the divide with Persia, a country he believes deserves respect because of their ancient roots, fits in with his restructuring of geopolitical partnerships.

Furthermore, it is quite probable the action Iran took was undertaken from the beginning as a means to show that they are actually reasonable. Given Obama’s rapprochement with Iran, he is more than willing to let Iran play the part of a reasonable actor.

Israel In a Corner

Bibi Netanyahu’s entire mantra is that one should not negotiate with irrational actors as was done with North Korea. Bibi has from the beginning tried to prove that Iran and North Korea are very similar.  This has fed into Obama’s strategy of showing the opposite.  By inculcating in the American people that Bibi and Israel are saber rattling and preventing what should otherwise we be a rapprochement, then the bad guys backed by the neocons is really Israel.

Once again the the chess match between Bibi and Obama has entered another back and forth phase.  The challenge for Israel is realizing they are playing  at a chessboard alone as their challenger plays with very different rules and a far more sinister goal.

 

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Iran and the USA: Partnering for Destruction

In the shifting sands of the Middle East, old alliances are crumbling and new ones are forming.  Nowhere do we see the evidence of this in the support the American government is giving Iran over Saudi Arabia in the growing feud between the two countries.

True, the American administration is playing it cool, but already the think tanks that lay various trial balloons have been working over time.  

“Saudi Arabia is in serious trouble, and they know it,” Ian Bremmer, president of Eurasia Group, told Business Insider on Sunday.

Bremmer added on Morning Joe that “I don’t know what legitimizes this regime [Saudi Arabia] going forward.”

The chorus is growing to let Saudi Arabia stew and in a sense the regime there understands it and that is exactly why they are ratcheting up the pressure. One of the arguments for going neutral or even subtly supporting Iran against Saudi Arabia is that eventually the theocrats in Persia will melt away and when they do Iran fits in far better with a future American foreign policy than Saudi Arabia.  

Whether or not there is some legitimacy to this is not the point, what the world is witnessing is a pendulum that is swinging so fast that it threatens to destabilize the remaining normative countries in the region.  This storm that is brewing between Iran and Saudi Arabia will almost certainly lead to a disastrous conflict that can and will bring in nations from around the world.

The Future is Now

Israel will have to act in a careful, but at the same time determined manner. Unfortunately the present leadership has allowed the threats to build up around Israel’s borders and may actually be much further in a corner than they want to admit.

Look for the next few months to be extremely volatile in the broader Middle East as countries jockey position before the opening shots of a much broader conflict.

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Can Russia Be Trusted?

The deconfliction mechanism that had been hailed as a stroke of geopolitical genius from the brain of Bibi Netanyahu seems to be a double edge sword. It is a sour pill that keeps on getting worse.  Especially now that Hezbollah is exploiting the agreement to prepare a forward attack on Israel’s North. It is true that Russia would prefer not to have an Israel that feels so threatened it destabilizes the Levant, but like I have insisted for a while, Putin is far more a tactical player when dealing opposing forces he wants to utilize in his broader strategy.

For Putin those that deserve his help are those that perform.  Israel will have to deal with an Iranian backed militia with free reign to attack, while delicately placating the Russian Bear who seems to be bending the rules of the deconfliction mechanism each week.

Trusting Putin is Mistake

The Israeli government has consistently made the same mistake throughout the decades.  It struggles to find players it feels it can put its trust in and by providing more assistance than anyone else it believes there will be reciprocity.

During the Cold War this strategy worked, simply because the tectonic plates of geopolitics demanded that it worked, but now in a multipolar world, putting trust in one country or another without strong leverage is a mistake.

Although Putin is a strong man, Israel is just another piece on his chessboard. Nothing should prove this more than Putin forcing us into a corner through niceties while Hezbollah and Iran have been able to build up on Israel’s borders.  It’s true Putin has allowed the Israeli Air force to attack arms convoys heading to Hezbollah. It is striking that the IAF did not attack in the latest skirmish, but rather Israel resorted to pounding the area with artillery.  This can only mean one thing.  Russia is holding Israel back from taking clear steps against Hezbollah.

Trust Only in G-d

Israel’s government needs to rely only on themselves and their faith in the Almighty  All else will fall into place.  The miracles that accompanied the Jewish people back to their Land are clear. If the Nation will increase their belief and trust in the Almighty as they did in the past then nothing will harm them.  Unfortunately the government seems to only mention themselves in reference to the situation without attribution to a higher power.

In the coming months the situation will continue to deteriorate. The question is who will stand up and lead Israel to victory.