What You Do NOT Know About The Qatar Crisis

The looming crisis between Qatar and several Gulf states came as a shock to many. Before that, the Gulf Cooperation Council was viewed as a club of rich and stable Arab regimes. Nonetheless, Saudi Arabia is now leading a push to punish Qatar through isolation. This hsa generated much media attention and ‘expert’ focus by pundits of the Middle East. Still none of those seems to have hit the core of the subject: This crisis is deeper than what anyone guesses and it will have an impact on the entire region, including Israel.

To begin with, the main cause of the rift between Saudi Arabia and Qatar could be summed up in three words: The Muslim Brotherhood (MB). Saudis wants the MB gone, so does UAE and Egypt. Nonetheless, Qatar and Jordan are both pro-MB and have invested too heavily in the Islamist group to let it go easily.

Some may be perplexed by the claim that Jordan’s regime supports the MB. Jordan and Qatar both provide support for the MB. Jordan’s royal family, the Hashemites, have been in a full alliance with MB since the 1950s. The MB were the ones who supported the kingdom’s founder, Emir Abdallah, in annexing the West Bank. They also stood with the Hashemites in 1970 during their civil war with the PLO. This fact has been confirmed by Jordan’s king himself in a 2013 interview with The Atlantic magazine.

Further, Jordan’s regime’s alliance with the MB is deeper than generally realized.

In November 2012, Jordan witnessed the largest Arab Spring-style revolution. One million took to the street demanding that the king steps down. Despite overwhelming popular sentiment, the MB openly stood against the revolution and said: “We will never allow the king to fall.” While the MB is banned in most Arab countries, in Jordan, they are registered as a charity, a political organization, and a private business. While the king bans  secularists and liberals for a mere tweet, the MB owns its licensed satellite TV network and daily paper in which they consistently preach terrorism and death to America and the Jews.

In fact, the entire knife-intifada concept was launched by MB journalist Yasser Zaatreh who wrote an article demanding all Palestinian stab Jews and in one of Jordan’s major daily which is partially owned by the Jordanian government itself in June of 2015.

The Jordan monarchy’s marriage with the MB resulted in a polygamous marriage with Qatar’s regime. Qatar is the main financier of the MB group not only in Jordan but the world. Jordan’s MB members control Qatar’s owned Aljazeera, the General Manager, Yasser Abu Helalah, is a Jordanian MB member, a known Jordanian intelligence operative, and an outspoken loyalist to Jordan’s king.

Further, Jordan and Qatar have been very close in coordinating their stance on Syria as well as Israel. Both have worked through their intelligence agencies and media to sustain and expand the unrest in Syria with the concept that the more the unrest persists the more both can get away with sustaining and empowering their instrumental tool: The MB. They want the civil war to go one, and that is why when President Trump attacked Syria with Cruse missiles, both Jordan’s and Qatar’s media were against the hit.

As for Israel, both Jordan’s and Qatar’s royals have played both ends against the middle. They have incited the region’s regimes and public against Israel, then behind the scenes telling the Israeli leadership they are the only people they can talk to, and at times, even claiming they both control the situation in Syria. “Israel cannot afford to ignore us, we hold the strings” as one Jordanian stateman has said in secret.

Under Obama, these tactics worked successfully for Qatar and Jordan. Saudi Deputy Crown Prince, Mohammad Ben Salman, tried to convince Obama several times of the necessity to crack down on the MB and to designate it as a terror group. This only fell on Obama’s deaf ears.

But now, there is a new sheriff in town. From Day One President Trump was very clear in his stance on the MB and other terror groups stating, “We will wipe them from the face of the earth.”

I can confirm, from my Arab sources, that the Saudi-led move against Qatar came after talks with the US administration. Also, the move is not directed only towards Qatar, in fact, Jordan is on the US radar as the MB’s safe house. In fact, the MB’s HQ is only 4 miles away from the king’s palace.

Jordan’s regime has been trying to appease the Saudis in this fight, it downgraded its diplomatic representation with Qatar and closed Aljazeera’s office. This may fool some Western media, but not the Saudis. The king still won’t cut ties with Qatar and his very own intelligence officers are launching a relentless defamation campaign through Aljazeera against Saudi Arabia and president Trump himself.

Both Qatar’s and Jordan’s state-controlled media are still claiming President Trump is on the verge of being impeached. Something Qatar’s Emir himself stated to his own official news agency, then claimed the agency was hacked and he never said those things. Google, on the other hand, confirmed Qatar’s News Agency was not hacked when it posted the Emir’s comments against both Trump and Saudi.

Further, a very well-connected Arab source confirmed to me that the US has already told Qatar: “Don’t expect any solutions before you drop the MB”.

Meanwhile, Qatar keeps hissing, fighting, and kicking. It cannot do this forever and it will have to give up the MB eventually. Once that happens, Jordan could face serious consequences, simply because “Jordan’s MB is a part of the Hashemite regime” as the king’s own Minister of Political Reform has said. Once the MB loses Qatar’s money and Aljazeera, the Jordanian regime itself will be further weakened and Jordan will be open to changes.

This crisis will have far-reaching outcomes and Jordan has already been influenced by it and will be the next place to watch for change if, or when, Qatar divorces the MB.

 

PALESTINE FALLING: The Qatar Ultimatum and Fatah’s Rift with Hamas

Mahmoud Abbas, the perpetual leader of the Palestinian Authority is set to meet with Egyptian President Abdel-Fattah al-Sissi on Sunday. The meeting comes at a time of increased uncertainty for both Abbas and the future of his Fatah movement as it attempts to show a more moderate face by putting the screws on Hamas.

For Hamas’ part, it hopes that continued negotiations with the Sisi government will result in a permanent reopening of the Rafiah crossing between Gaza and Egyptian controlled Sinai.

Since the the crisis between Saudi Arabia and Qatar began and the 48 hour extension given by Saudi Arabia to Qatar winds down, Hamas has been busy attempting to find another avenue to bring in goods.  Qatar has been their biggest backer, but the feud between the Saudis and Qatar is making Hamas’ future far more tenuous.

Why Does Egypt Want to Help Hamas?

Sisi’s meeting with Hamas leadership was not about saving the movement, but rather preventing an armed conflict between Hamas and Israel.  A cornered Hamas  is a dangerous Hamas and Sisi would rather have the leaders owe him than play by their own rules.

This may seem like a dangerous strategy as well as in opposition to the Saudi line against Qatar as it throws a bone to a movement which is sinking fast. Yet, part of the strategy by Sisi and most assuredly Israel is to keep both Fatah, which is corrupt and Hamas, which is Jihadist weak and divided. Neither Egypt nor Israel can trust either movement to take over the reigns of the Palestinian cause. By leaving Gaza in the hands of a somewhat weakened Hamas while allowing the PA to rule over a small number of cities within Judea and Samaria the national movement for “Palestine” will continue to disintegrate.

The Saudis, Egyptians, and even the many of the Gulf States have concluded that the made up movement for the liberation of historic Palestine, which they had concocted over 50 years ago is doing far more damage to their own fortunes. Israel has only gotten stronger and the Palestinians far more obstinate and radical. By letting the Palestinians movement die slowly a new paradigm can arise that will be far more sustainable and prosperous for itself and the region.

Middle East Realignment Driven by China’s Drive to End Petrodollar Dominance

China’s goal is to become the leading economic superpower and to move the world away from the US dollar. They have been forming alliances with Middle Eastern countries including Iran, Qatar and Turkey. The petrodollar system is the primary reason the US dollar is still the world’s reserve currency as oil producing countries like Saudi Arabia do not sell their oil in currencies other than US dollars. Without this agreement, the US dollar would eventually lose its role as the global reserve currency. China has been working with countries in the Middle East to sell their oil in yuan and thereby weaken the US. 

The Chinese strategy has been to internationalize their currency via a number of different projects (see list below). A Zerohedge report in April articulates how China and Russia are joining forces to bypass the US dollar in global trade. The Shanghai Cooperation Organization (SCO) described as a ‘Eurasian political, economic, and security organization’ is one of the means of executing that vision. Its members include China, Kazakhstan, Kyrgyzstan, Russia, Tajikistan, and Uzbekistan. Earlier this month, India and Pakistan were admitted as members. These countries are expected to further enhance their economic relations via trade. For China to successfully meet its goals, a larger base of countries must join this block. 

Iran

According to this report, bilateral trade between China and Iran grew to $31.2 billion in 2016. Iran is currently listed as having ‘Observer status’ in SCO. As Russia has long wanted Iran to attain full membership status, China recently signaled its support. Incidentally, Iran announced earlier this year that it would stop using the US dollar in its official statements. Iran and China conducted a naval drill in the Gulf a few weeks back.

Turkey

President Tayyip Erdogan implied last December that Turkey is taking steps to allow commerce with China, Russia and Iran to be conducted in local currencies. A Chinese report confirmed that to ‘increase the trade volume and foreign investments between Turkey and China, and decrease their dependency on the US dollar during financial transactions, China and Turkey have started direct trading with their local currencies’. Current trade volume of $28 billion is expected to increase.

Turkey even dropped hints at shuttering the Incirlik air base to US air operations. With the US support of the Kurds in their fight against ISIS, there may be a stronger motivation to act. In fact, Turkey refused German lawmakers access to the base leading Germany to announce plans to withdraw 280 troops, as well as surveillance planes and refueling jets, from the Incirlik air base. If you are interested in understanding the historical importance of thie Incirlik air base read this and this. Turkey is listed as a ‘Dialogue partner’ in SCO.

Qatar 

Over two years ago, Qatar launched the first Chinese yuan clearing hub in the Middle East. According to Qatar’s central bank governor, Sheikh Abdullah bin Saud al-Thani, it would create ‘the necessary platform to realize the full potential of Qatar and the region’s trade relationship with China’. Since it opened, Industrial and Commercial Bank of China has cleared more than 590 billion yuan ($86 billion) in transactions in Qatar. Zheng Chunyi, General Manager of ICBC Doha, confirmed that ‘Qatar, the United Arab Emirates and Kuwait are the most active Middle East countries using the RMB clearing center for direct payments with Chinese mainland and Hong Kong’. 

Iran-Turkey-Qatar Axis

The newly formed Iran-Turkey-Qatar axis (as evidenced by events such as this, this and this) is tied together by each countries’ burgeoning relationship with China. While Russia has a greater military presence in the Middle East (via Syria) and draws the most attention from Russia-phoebes in the US, China is the key financial player. Together, both Russia and China have emerged as a direct threat to US supremacy in the region. Although Iran has always had better relations with China, Turkey and Qatar have been solidly aligned with the West as each country still maintain US military personal at their bases.  Perhaps, both countries are hedging their bets based on a calculation that will see a rising China and declining US.

The Petrodollar

Since the inauguration, President Trump has not mentioned the 28 page document (known simply as ‘The 28 pages’ and discussed during the campaign) which implicated members of the Saudi Arabian government for their involvement in the 9/11 attacks on the World Trade Center. He in fact visited Saudi Arabia last month, participated in a sword dance and signed off on a $110 billion weapons deal. Why? The answer is the petrodollar. The key part of this agreement is that the US must defend Saudi Arabia as long as they sell their oil in US dollars.

It would appear that China is taking no chances and is working on pushing Saudi Arabia into its sphere of influence. Byron King from the Daily Reckoning speculates that China is looking to modify its terms of its oil trade with Saudi Arabia as follows:  

‘China is currently modifying the terms of its oil trade with Saudi Arabia. Specifically, China is working on a deal to pay for Saudi oil using Chinese yuan. This effort poses a direct threat to the security of the dollar. If this China-Saudi deal happens — yuan for oil — it’s another step closer to the grave for the petrodollar, which has dominated global finance since 1974.’

Whether the speculation is true or not, the threat to the US dollar as the reserve currency is real. The petrodollar system is under an attack directed by China.

From a US perspective, options are limited and further actions like a US invasion of Syria could make the situation worse. Since the US military has decided to back the Kurds to fight ISIS, there is less of a chance to win back Turkey. In my opinion, the best option would be for the US to maintain the current petrodollar system as long as possible until a new one backed by cryptocurrencies is ready. I outlined this in my prior post titled Global Currency Reset Happening Now as Bitcoin Price Explodes. Unfortunately, the US Senate doesn’t have a clue. 

Projects that will Further Internationalize the Chinese Yuan

– China’s yuan inclusion in the International Monetary Fund’s currency basket

– China International Payment System (CIPS) is an alternative payments system to SWIFT

– Asian Infrastructure Investment Bank (AIIB) is an international financial institution that will finance infrastructure projects in the Asia region

– Bilateral Currency Swap Lines completed between China and over thirty counterparties to enable greater overseas trade of the yuan

– Silk Road Gold Fund to facilitate gold purchase for the central banks of member states

– Shanghai Gold Exchange launched to set a new benchmark price for gold bullion

This post originally appeared on News with Chai blog.

Are Post ISIS Alliances Already Taking Shape?

As the Raqqa operation gets underway, with the SDF (Syrian Democratic Forces) ploughing forward into the “capital” of ISIS, the terror group’s leaders and fighters are said to have already travelled to safe havens along the middle Euphrates.  With the American backed SDF bogged down in strett to street fighting, Iranian paramilitary units are pouring in from where they helped fight to free Mosul to Eastern Syria to destroy the heads of ISIS.

This struggle for land as ISIS collapses is forming the beginnings of regional boundaries that in essence brand new lines between ethnic units as well as defined frontiers of regional alliances.

Rising up from the rubble of ISIS are two clearly definied groupings.

The first consists of Russia, Iran, Syria (Assad), Turkey, and Qatar.  None of these countries trust eachother, but work together under a common interest in battling back America as well as seeking a piece of what they see as a rising Middle Eastern hegemony.

The second group is made up of the United States, Saudi Arabia, Bahrain, UAE, Jordan, Egypt, Kurds and Israel.  This grouping sees the first group as an existential threat and has been conjoled to work together by the Trump administration.

With the fall of ISIS a matter of weeks, the real battle will come after. Iran has used the chaos to reach to the Israeli border.  They have shown the ability to capitalize on the weaknesses of their enemies. Besides Iran, Hezbollah can now turn its sites on Israel.

The Middle Eastern alliances now taking shape even before the last of the caliphate are buried not only put Iran im the drivers seat, but increase the likelihood of war sooner rather than later.  The Syckes-Picot agreement, the document based colonialist and neo-colonialist pinciples set in motion by France and Germany is becoming irrelevant as a new set of states and mini states take shape.

As the chaos spreads throughout the region and beyond, the Saudis backed by Israeli tehnology will attempt to push back on the Shiite gains in order to create a buffer between the Kingdom and its enemies. The Kurds backed covertly by Israel and overtly by America will be encouraged to push forward in order to stabilize Northern Syria and Iraq and break the link between a power hungry Turkey and their allies in Qatar.

Be prepared the Great Game of the Middle East is about to begin. It could very well be far more destructive than the havoc ISIS has caused.

Qatar Crisis Puts Hamas on the Ropes as Israel Cuts Electricity to Gaza

In the latest twists and turns in the unfolding Sunni crisis with Qatar, Israel has been drawn into the Saudi stand-off with its fellow Gulf country by way of cutting the Gaza Strip’s electricity to only two hours a day. In coordination with PA president Mahmoud Abbas, the Israeli security cabinet has further reduced electricity to the Hamas run strip.  Qatar has been Hamas’ foremost backer. One of the points the Saudis have required Qatar to follow through on in order to lift their blockade is for Qatar to break off ties to the terror group.

With Abbas and Israel coordinating against Hamas, while Saudi Arabia, Bahrain, UAE, and Egypt tighten the screws on Qatar, the potential for war is increasing daily.  Abbas has cut off payments to PA workers in the Gaza Strip as well as pulling back on transferring vitals to Gaza Strip residents.

Hamas has responded with the following statement feeding fears of an open conflict:

“The decision of the occupation to reduce the electricity to Gaza at the request of PA President Mahmoud Abbas is catastrophic and dangerous. It will accelerate the deterioration and explode the situation in the Strip,” said Hamas spokesperson Abdel Latif al-Qanua. “Those who will bear the consequences of this decision are the Israeli enemy, who is besieging the Gaza Strip, and Palestinian Authority President Mahmoud Abbas.”

What is most surprising about Israel’s move to cut Gaza’s electricity is the amount of coordination between Egypt, Israel, and the PA to ensure that Israel can follow through with the electricity reduction.  The Qatar crisis has given the emerging Sunni-Israel alliance its first opportunity to test their ability to work together despite not reaching a coveted peace agreement.

Regional Peace First

The coordination between the Sunni alliance and Israel has been unprecedented. It sets the stage for Trump’s path to peace, which is to arrive at a regional deal before Israel and the Palestinians reach an improbable agreement on final status issues. This puts both the Gaza front and the Qatar blockade into focus as a real test to to Israel-Sunni coordination against common regional adversaries like organized terror groups and Iran.