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EU agrees sanctions against Iranian intelligence service over ‘assassination plot’ – Danish FM

RT | January 8, 2019

The European Union has agreed to enact sanctions against the Iranian intelligence service over its alleged “assassination plots on European soil,” the Danish foreign minister has tweeted.

Specific details in relation to potential new European sanctions against Iran are unclear; nor is it known whether they are close to being implemented. Foreign ministers of EU member states had reportedly agreed to consider sanctions in response to the supposed Iranian plot at a meeting in mid-November.

In late October, Danish security forces said they had arrested a man who was allegedly plotting to assassinate the leader of the Danish branch of an Iranian Arab separatist movement. Tehran denied the accusations as “hostile” and said they were in line with the “enemies’ plots” to undermine Iranian-European relations.

The European Commission, while backing Denmark’s accusation and condemning Tehran, has urged member states to not let it impact the JCPOA Iran nuclear deal of 2015. The US, which unilaterally pulled out of the agreement in May 2018, simply praised Denmark for arresting an “Iranian regime assassin.”

US President Donald Trump’s administration has been cracking down on Iran, accusing it of sponsoring terrorism and violating international obligations. It has repeatedly warned the EU against maintaining trade with Tehran, but Europe has so far been determined to keep JCPOA alive, and is working on a mechanism to bypass American sanctions.

The target of the alleged plot was a local leader of the Arab Struggle Movement for the Liberation of Ahvaz (ASMLA), the Danish Foreign Ministry said at the time. ASMLA, pushing for a separate Arab state within Iran, is classified as a terrorist organization by Tehran.

Tehran has blamed ASMLA for the September 28, 2018 attack on a military parade in Ahvaz, which left 30 people dead and 70 injured. ASMLA denied responsibility, blaming the attack instead on a splinter group within the movement.

January 8, 2019 Posted by | Economics, Wars for Israel | , , | Leave a comment

Mexico Set to Become Third Country to Fully Legalize Marijuana

21st Century Wire | January 5, 2019

Following in the footsteps of Uruguay and Canada, as well as 30 US states, Mexico is set to adopt a new law which will make cannabis legal for both medicinal and recreational use. New legislation by Mexico’s ruling majority party hopes to “cut the chain” of illegal supply.

Olga Sánchez Cordero, interior minister in Mexico’s new leftist nationalist government, has recently submitted a Bill to Congress which would effectively end prohibition of cannabis, placing the new rescheduled substance under a regime of state regulation.

Mexico had a brief foray into the legalization of drugs back in 1940 when Lázaro Cárdenas, the former Mexican president who had nationalized Mexico’s oil sector in 1938. Cárdenas lifted all state restrictions on narcotics like heroin, morphine and cocaine, which allowed addicts to be treated as patients, rather than felons. State dispensaries sold small amounts to individuals at prices which vastly undercut those of illegal street dealers. The move was reversed after only after 6 months – because of intense diplomatic pressure from the US.

The new law could also open up numerous opportunities for independent entrepreneurs like 17-year-old Nicolás Calderón who hopes to open a cannabis shop and art venue in Mexico City, as well as develop his own cultivation site and supply chain.

“I don’t just see an opportunity to make money but also to help Mexico […] I think this is going to help reduce el narco [the cartels] a lot,” said Calderón to the Financial Times.

However, as on the world’s largest producers of illegal narcotics, the Mexican state will no doubt face intense competition from black markets run by the country’s vast organized crime cartels on which former president Felipe Calderón had unsuccessfully declared ‘war’ 12 years ago.

“I think the cartels will lose 40 per cent of their income with [marijuana] legal here and in the US,” said Vicente Fox, Mexico’s president from 2000 to 2006, in an interview with the FT. Fox currently sits on the board of Canadian cannabis company Khiron Life Sciences – which hopes to enter the Mexican cannabis market later this year.

READ MORE CANNABIS NEWS AT: 21st Century Wire Cannabis Files

January 5, 2019 Posted by | Civil Liberties, Economics | , , , , | Leave a comment

Thomas Friedman Shows Us Why Democracy is Facing Huge Problems

By Dean Baker | Beat the Press | December 19, 2018

When the columnist with the longest tenure at the country’s leading newspaper has no clue on the biggest issues facing the world, then it is a good sign that the elites in general have no idea what they are doing. He notes the disaffection of large numbers of middle class people in both Europe and the United States with the status quo.

Friedman correctly observes that “average work no longer returns an average wage that can sustain an average middle-class lifestyle.” However he absurdly blames this on “rapid accelerations in technology and globalization.”

This is the big lie. Bill Gates is not incredibly rich because of rapid accelerations in technology and globalization, he is incredibly rich because the government gives Microsoft patent and copyright monopolies on Windows and other software. It will arrest people who make copies without his permission. In fact, it negotiates trade deals (wrong called “free trade” deals) that require other countries to arrest people too. Patent and copyright monopolies may transfer as much as $1 trillion a year from average workers to people who have these forms of property in the United States alone. That’s 5 percent of GDP or 60 percent of after-tax corporate profits.

The reason there are very rich people in finance, who can bid up property prices in major cities to make them unaffordable to the middle class, is that we coddle the financial industry. Remember when the market was about to work its magic on Goldman Sachs, Citigroup, and the rest back in 2008? The leaders of both parties could not run fast enough to rescue these bloated turkeys from being destroyed by their own greed and stupidity.

And the reason globalization puts downward pressure on the pay of factory workers, but not doctors and dentists, is that we have protection for doctors and dentists. We make it very difficult for foreign professionals to practice their professions in the United States.

There is a longer list, but the point is that we have screwed middle class workers by deliberate policy, it was not just something that happened, as in “rapid accelerations in technology and globalization.” The fact that our elites refuse to acknowledge this reality and treat the plight of the middle class as a result of personal failings, as in not the right skills, will inevitably cause many to be angry, like yellow vest protestors in France. As long as this is the standard line in policy debates, their anger is not likely to go away.

(Yes, this is the theme of my [free] book, Rigged: How Globalization and the Rules of the Modern Economy Were Structured to Make the Rich Richer.)

January 5, 2019 Posted by | Book Review, Economics, Timeless or most popular | | Leave a comment

Elizabeth Warren Pierces Through Rhetoric on Economy, Muddles on Foreign Policy

By Sam Husseini | January 4, 2019

In her New Years Eve announcement forming an exploratory committee for the presidency, Sen. Elizabeth Warren made a great point: “Right now, Washington works great for the wealthy and the well-connected. It’s just not working for anyone else.”

In case you missed that, she pointedly did not say “the economy isn’t working well” or such, as we’ve all heard numerous politicos say countless times.

She rather said the opposite of that — repeatedly: “The way I see it right now, Washington works great for giant drug companies, but just not for people who are trying to get a prescription filled. Washington works great for for-profit colleges and student loan outfits, but not for young people who are getting crushed by student loan debt. And you could keep going through the list. The problem we have got right now in Washington is that it works great for those who’ve got money to buy influence.”

And in case anyone at all missed the point, she said it yet again: “We want a government that works not just for the rich and the powerful. We want a government that works for everyone.”

It’s laudatory that Warren is using her perch and analytical skills to avoid a common rhetorical trap and is articulating the truism that the political establishment largely does the bidding of the wealthy and connected when it comes to the economy.

The problem is that she doesn’t articulate that in the same manner when it comes to bloody wars. Quite the contrary. That is, she says that she goes down a list — drug companies, for-profit colleges and student loan outfits — but that list doesn’t seem to include those who have an interest in continuing horrific wars.

When asked on Wednesday night by Rachel Maddow about Trump’s recent announcement on Syria, Warren said the U.S.’s wars are “not working”.

She didn’t say: “The wars are working great for military contractors, just not for regular people in the U.S. or Syria or anywhere else.”

Warren — who is on the Senate Armed Services Committee — did not say: “The wars are are great for the wealthy profiting off of them, they’re just terrible for the people getting killed in them.”

Instead, Warren actually swallowed some of the rhetoric about U.S. wars having as their alleged goals stability or humanitarianism or security. The profits of military contractors or geopolitical elites are thus not examined.

She said it was “right” to pull U.S. troops out of Syria and Afghanistan, an arguably positive position, but added: “It is not working and pretending that somehow, in the future, it is going to work…it’s a form of fantasy that we simply can’t afford to continue to engage in.”

But part of the fantasy is ignoring that the wars are indeed working great for some. Indeed, if Warren heard someone else say that “it is not working” about the economy, she’d likely correct them.

Warren did at least raise the question of what “success” in the perpetual wars might be, which is certainly better than most of official Washington: the advocates of perpetual war “need to explain what they think winning in those wars look like and where the metrics are.”

But, like most of the U.S. political establishment, Warren doesn’t actually scrutinize the underlying motives: “When you withdraw, you got to withdraw as part of a plan, you got to know what you’re trying to accomplish throughout the Middle East and the pieces need to be coordinated,” Warren said, adding, “this is why we need allies.”

What allies? France, Britain and Turkey — the traditional colonial power in the region? Or the ever aggressive, oppressive Israel? Or the tyrannical Saudi Arabia?

And that’s rather the point — U.S. foreign policy appears as a muddle, without clearly stating what is supposed to be accomplished, because its stated goals obscure actual goals.

The idea that the U.S. establishment gets the country into wars for ulterior financial or geopolitical reasons should be regarded as banal. Instead, it’s barely articulated at all.

Most obviously, the military contractors benefit from wars.

Indeed, the power of the euphemistically called “defense sector” would seem to be substantially larger than the drug companies Warren focuses on. According to OpenSecrets.org, the top five military contractors — Northrop Grumman, Boeing, Lockheed Martin, General Dynamics and Raytheon — more than doubled the top five companies in the pharmaceutical manufacturing sector ($14.4 million vs. $7.7 million) in their outlays to politicos. For more, see the writings of William Hartung, such as “Corporate Patriots or War Profiteers?

Even more critically, the U.S. establishment’s geopolitical aims frequently thrive on war. Dahlia Wasfi argued in 2015 in “Battling ISIS: Iran-Iraq war redux” that “Obama’s unofficial strategy to fight ISIS may be that of Reagan’s for Iran and Iraq in the 1980s: a long, drawn-out war to strengthen U.S.-Israeli hegemony in the region.” Also, see Robert Naiman’s “WikiLeaks Reveals How the U.S. Aggressively Pursued Regime Change in Syria, Igniting a Bloodbath” and my own “Is U.S. Policy to Prolong the Syrian War?

In 2015, Sen. Bernie Sanders was actually calling for more Saudi intervention in the Mideast. Said Sanders: The Saudis have “got to get their hands dirty.” He was criticized for this by Margaret Kimberley, David Swanson and myself.

Now, Sanders has taken the lead in Congress in criticizing the Saudi war in Yemen, opening the door to some alleviation of massive suffering. I wish he would be much better still on foreign policy, but this may be serious progress, though the ACLU has criticized the congressional resolution.

It’s imperative to criticize presumable progressive politicians and parse their words carefully. It might open the door to actual improvements in policy, as in the case of Sanders. And in the case of Elizabeth Warren, it’s simply asking her to cease obscuring war as she clarifies economic issues.

January 4, 2019 Posted by | Economics, Militarism | | Leave a comment

Bashir: I was advised normalising relations with Israel will stabilise Sudan

MEMO | January 4, 2019

Sudanese President Omar Al-Bashir was advised to begin normalising relations with Israel in order to ensure stability in his country, Haaretz reported him saying yesterday.

Speaking during a meeting with religious leaders in the capital Khartoum yesterday, Al-Bashir did not specify who gave him the advice adding only that “sustenance is in the hand of God”.

Sudan is witnessing widespread protests triggered by a government decision to triple bread prices from one Sudanese pound ($0.02) to three Sudanese pounds ($0.063). Food prices have soared since the start of this year after the government stopped state-funded imports of wheat.

Sudan has been facing heightened economic uncertainty in recent years with an acute shortage of foreign currency resulting in the Sudanese pound plunging against the dollar. Despite the lifting of US economic sanctions last year, international banks have continued to be wary of doing business with financial institutions in the country.

In November reports surfaced that Israeli and Sudanese representatives held a secret meeting in Istanbul, Turkey, in 2017 to discuss diplomatic relations in exchange for Israeli aid to Sudan.

According to a source, the parties discussed “the warming of relations between the countries and possible Israeli aid to Sudan in the fields of medicine, agriculture and the economy,” the Times of Israel reported.

The revelation came in the wake of rumours that Sudan and Israel were considering opening diplomatic relations. The senior leader of Sudan’s ruling National Congress Party, Abdel Sakhi Abbas, was forced to deny claims that Netanyahu is due to visit Sudanese capital Khartoum. Abbas stressed: “It is impossible that Netanyahu visits Sudan. There is nothing to deal with such an official visit,” lambasting the rumours as “completely false”.

January 4, 2019 Posted by | Economics, Ethnic Cleansing, Racism, Zionism | , | Leave a comment

The Mediterranean Pipeline Wars Are Heating Up

By Viktor Katona | Oilprice.com | December 28, 2018

Things have been quite active in the Eastern Mediterranean lately, with Israel, Cyprus and Greece pushing forward for the realization of the EastMed pipeline, a new gas conduit destined to diversify Europe’s natural gas sources and find a long-term reliable market outlet for all the recent Mediterranean gas discoveries. The three sides have reached an agreement in late November (roughly a year after signing the MoU) to lay the pipeline, the estimated cost of which hovers around $7 billion (roughly the same as rival TurkStream’s construction cost). Yet behind the brave facade, it is still very early to talk about EastMed as a viable and profitable project as it faces an uphill battle with traditionally difficult Levantine geopolitics, as well as field geology.

The EastMed gas pipeline is expected to start some 170 kilometers off the southern coast of Cyprus and reach Otranto on the Puglian coast of Italy via the island of Crete and the Greek mainland. Since most of its subsea section is projected to be laid at depths of 3-3.5 kilometer, in case it is built it would become the deepest subsea gas pipeline, most probably the longest, too, with an estimated length of 1900km. The countries involved proceed from the premise that the pipeline’s throughput capacity would be 20 BCM per year (706 BCf), although previous estimates were within the 12-16 BCm per year interval. According to Yuval Steinitz, the Israeli Energy Minister, the stakeholders would need a year to iron out all the remaining administrative issues and 4-5 years to build the pipeline, meaning it could come onstream not before 2025.

The idea of EastMed was first flaunted around 2009-2010 as the first more or less substantial gas discovery in the Eastern Mediterranean, the Tamar gas field in Israel’s offshore zone, paved the way for speculations about an impending gas boom. Then came the 535 BCm (18.9 TCf) Leviathan in 2010 and the 850 BCm (30 TCf) Zohr discovery in offshore Egypt five years later and suddenly it seemed that an Eastern Mediterranean gas expansion is inevitable. Yet over the years, the operators of Leviathan have already allocated part of their total gas volumes to domestic power generating companies and most notably NEPCO, the Jordanian electric power company (1.6-2BCm per year). Egypt has been concentrating on meeting domestic needs and getting rid of LNG imports, moreover once it bounces back to gas exporter status in 2019, it will only use its own 2 LNG terminals in Damietta and Idku. Related: Has Oil Hit Rock Bottom?

Thus, a pertinent question arises – whose gas would be used to fill the EastMed pipeline? If the pipeline starts in offshore Cyprus, then it would be logical to expect that Cyprus’ gas bounty would be somehow utilized. Yet Cyprus has been lagging behind Egypt and Israel in its offshore endeavors and so far lacks a clear-cut giant field to base its supply future on. The two discoveries appraised heretofore, the 6-8 TCf Calypso operated by ENI and the 4.5 TCf Aphrodite operated by Noble Energy, are not enough to support the construction of a relatively expensive gas pipeline – all the more so as Noble has signed a provisional deal to send Aphrodite gas to Egypt’s Idku LNG terminal, most likely by means of a subsea gas pipeline. If we are to judge the viability of the EastMed on the current situation, there is only Calypso and Israel to fill the pipeline, as Greece’s gas export plans are close to zero on the probability scale.

The subsea section from Cyprus’ offshore zone to the island of Crete lies in depths of 3km and is stretched across a seismically active zone. But there is even more – should Turkey claim rights on Cyprus’ offshore hydrocarbon deposits (in February 2018 it sent warships to scare away ENI’s drilling rig that was on its way to xxx), the project is all but dead. This is far from an implausible scenario as President Erdogan stated that Turkey would never allow for the extortion of natural resources in the East Mediterranean by means of excluding Ankara and Northern Cyprus. Cognizant of the risks inherent in an East Mediterranean gas pipeline, there has been no interest from oil and gas majors to participate in the project. This is worrying as the $7 billion are expected to be financed from private investors, of which there is a palpable dearth – despite the EU’s 35 million funding to promote what it sees as a Project of Common Interest. Related: Wall Street Sees Oil Price Recovery In 2019

Yet even for the European Union, the EastMed gas pipeline presents a bit of a headache as its commissioning would render the Southern Gas Corridor, comprising so far only of Trans Adriatic Pipeline (TAP) with a 10 BCm per year throughput capacity, irrelevant by creating a sort-of competitor. The price of the natural gas to be supplied via the EastMed pipeline might become the biggest obstacle of them all – if the cost of producing offshore Mediterranean gas turns out to be $4-5/MMBtu as expected, the addition of further transportation costs to it all would place EastMed supplied at the bottom range of European gas supply options (Russian gas supply is alleged to be profitable with price levels as low as $4/MMbtu). All this might change if any of the East Mediterranean countries were to discover a giant gas field, altering the economics of production or possibly even liquefaction.

In fact, 2019 will witness several key wells being drilled across Cyprus, Egypt and possibly even Israel. ExxonMobil’s testing of Block 10 in offshore Cyprus would largely point to the overall attractiveness of Cyprus as an oil and gas producing country – the drilling has already started, with results expected in Q1 2019. The ENI-operated Noor offshore field in Egypt, adjacent to Zohr, is a much hotter prospect with BP buying into it lately – most likely it will outshine all the other drilling sites in the Eastern Mediterranean, however, if a big discovery is confirmed, it would be most likely used for Egyptian purposes which run counter to the EastMed gas pipeline. Thus, EastMed’s only hope is that Israel 2nd international licensing round, results to be announced in July 2019, will elicit a couple of Leviathan-like finds that would make pipeline construction profitable. Until then, the prospects are rather bleak.

January 4, 2019 Posted by | Economics | , , , , | Leave a comment

Iraq Not Obliged to Abide by US anti-Iran sanctions: FM

Al-Manar | January 3, 2019

Iraq’s Foreign Minister Mohammed Ali al-Hakim, said his country is “not obliged” to abide by unilateral US sanctions against Iran, adding that Baghdad is seeking ways to bypass those sanctions and continue trade with Tehran.

“These sanctions, the siege, or what is called the embargo, these are unilateral, not international. We are not obliged [to follow] them,” al-Hakim said, speaking to a gathering of journalists on Wednesday.

He said a number of “possibilities” had been suggested that could keep trade routes open with Iran, “including dealing in Iraqi dinars in bilateral trade,” and creating a fund for payments to Iran.

Following the re-imposition of unilateral sanctions on Iran in early November, the US gave Iraq a 45-day waiver for imports of gas from Iran, and extended the waiver for 90 days in December. Iran also provides around 40 percent of Iraq’s electricity needs.

The current level of annual bilateral trade between Iran and Iraq amounts to $12 billion, with a target to raise that figure to $20 billion in the near future.

January 3, 2019 Posted by | Economics | , | Leave a comment

Trump Border Wall is ‘Symbolic’, Can’t Stop Undocumented Migrants – Analysts

Sputnik – 03.01.2019

WASHINGTON – The border wall President Donald Trump shut the US federal government down over is not part of any coordinated strategy to limit undocumented migration but is a potent emotional symbol for his political base, analysts told Sputnik.

The US federal government has been shut down for eleven days because Democrats have refused Trump’s demand to include $5.6 billion in funding in next year’s budget to build a wall on the southern border.

On Wednesday, talks between Trump and Democratic lawmakers at the White House collapsed on the eve of the new US Congress convening. After the meeting, House Democrats vowed to submit legislation on Thursday that includes only $1.3 billion in border security funding, far short of Trump’s target.

Symbolic Wall

Currently there is nearly 600 miles worth of barrier, primarily consisting of 16-foot high fencing, along the 1,900-mile US-Mexico border. Trump wants to erect steel and/or concrete walls over 30 feet tall on more than 200 miles of the border that would include new and replacement barriers.

“The problem is that this wall is not and never was part of a well thought organic border security plan aimed at preventing or at least containing illegal immigration,” Global Policy Institute President Professor Paolo von Schirach said on Wednesday. “For Trump and his core supporters, the Mexico border wall was and is a symbol of America First in action.”

Building the wall on a border symbolizes “getting tough” in a hostile world by protecting US core interests, he added.

Parts of a wall or physical barrier at the US land border with Mexico have already been built under other presidents, Schirach recalled.

“Trump is the first US leader who made the wall into a core issue, a symbol of his agenda,” he said.

The Democrats who now control the House of Representatives, the lower chamber of Congress that controls funding also see the wall as a symbolic issue to be opposed at all costs, Schirach observed.

“Given the hyper partisan climate in Washington, it is no surprise that the Democrats look at the same wall ‘project’ not as a policy issue to be discussed with the goal of reaching some compromise on an issue,” Schirach said.

Instead, the Democrats matched Trump’s uncompromising all-or-nothing approach, Schirach noted.

“If Trump wants the wall, then it seems to be the duty of all good Democrats to oppose it,” he said.

Both sides were therefore now locked into a potentially risky confrontation, Schirach cautioned.

“Now it is basically all about brinkmanship. Who will blink first? Based on his own calculations, Trump decided that it is politically alright for him to cause a major national disruption. We are talking about posturing, rallying the base — on both sides,” he said.

US border security and the fashioning of a comprehensive immigration policy were serious and important matters, Schirach advised.

“A totally divided US leadership cannot even begin to have a constructive debate on realistic, workable policy options,” Schirach warned.

Bargaining Chip

Trump on Wednesday, despite talks collapsing, said in a twitter post that he was till ready and willing to reach a funding agreement with the Democrats and urged both parties to work together.

Former Brown University Assistant Economics Professor Barry Friedman told Sputnik he held out hope that Trump and the new Democratic majority in the House could still find room to maneuver, bargain and compromise over the wall and government funding and end the ongoing shutdown.

“The Congress can agree on policies that reduce illegal immigration, and more tightly screen refugees and impose limits on legal immigration — Mr. Trump could call this a victory of bargaining where the threat of the Wall is just an expensive bargaining chip that may not be needed,” he said.

A compromised agreement on limiting illegal immigration could still be achieved with a combination of preventive and enforcement measures, Friedman suggested.

“The preventive [aspects] will have to involve detention centers for people awaiting deportation. To enforce the compromise, there has to be substantial policing of people who overstay travel and work visas, who come across the border illegally,” he said.

Such detainees should lose their place in line to be heard for asylum and be deported to wait a turn, Friedman advised.

“On the subject of the Wall, what data shows how many illegal immigrants are stopped this way?” he asked.

Also, building the border wall “does not deal explicitly with policing and with reducing the number of refugee hearings and visa abuses and the total level of immigration,” Friedman pointed out.

Trump was acting as if unilateral action by a president can simply overcome existing US immigration laws, Friedman observed.

On the other side of the US political divide, Trump’s “opponents suck out the oxygen by also flooding the zone with congressional powers of investigation, especially now that lying to Congress has been successfully prosecuted,” he noted.

However, if the Congress failed to produce specific marketable new ideas on immigration, they would share the public disgust over the gridlock in the budget, Friedman warned.

January 3, 2019 Posted by | Economics | | Leave a comment

India sequesters Iran ties from US predatory strike

(Iran’s Chabahar Port)
By M. K. BHADRAKUMAR | Indian Punchline | January 2, 2019

India has done well to put in place the nuts and bolts of a payment mechanism for its trade and investment transactions with Iran against the backdrop of the US withdrawal from the Iran nuclear deal (known as the Joint Comprehensive Plan of Action) in May last year followed by the imposition of sanctions against Iran. The US had threatened to bring Iran’s oil trade to zero by the end of 2018 but ultimately pragmatism prevailed and major importing countries such as India were given 6-month ‘waivers’ in November.

Delhi has utilised this interregnum to sequester India-Iran economic relations as far as possible from the vagaries of the Trump administration’s Iran policies. How far Delhi sensitized Washington in advance about its Iran strategy we may never know, but the overall approach suggests a quiet determination to safeguard Indian economic (and political) interests from suffering collateral damage without, at the same time, displaying any strategic defiance of the US in the foreign-policy domain. The Indian diplomacy has been successful here so far.

Broadly, the Indian government has revisited the strategy adopted by the UPA leadership in similar circumstances of US sanctions against Iran and in the light of past experience, finessed a payment mechanism that dispenses with the use of American dollar in India-Iran economic transactions thereby bypasses the cutting edge of the US sanctions. Indeed, the impetus to do so is far more keenly felt today than under the UPA government because India-Iran economic relationship is transforming phenomenally and assuming strategic importance under the Modi government, especially with the operationalization of the Chabahar Port project.

Arguably, the Modi government is showing far greater grit in comparison with the timid attitude by the previous UPA government in asserting India’s strategic autonomy to advance the India-Iran partnership notwithstanding the hostile policies of Washington toward Iran, which are in the nature of forcing a ‘regime change’ in Tehran. Interestingly, the Indian approach is also impervious to the continued Israeli and Saudi intrigues against Iran, although the Modi government has significantly boosted India’s relations with these two Middle East countries.

The Indian policy toward relations with Iran under the deepening shadow of US sanctions has evolved in three carefully measured stages through the month of December. Needless to say, this wouldn’t have been possible without mutual trust and understanding in the relationship characterized by close consultations through diplomatic channels. In the first stage, it came to be known that in early November the two countries signed an agreement to the effect that India will import crude oil from Iran using a rupee-based payment mechanism and that 50 percent of those payments will be used for exporting items by India to Tehran.

Accordingly, India’s government-owned UCO Bank (which has no exposure to the US) was designated to handle this mechanism. In a third stage, in continuation of the above, the Ministry of Finance in Delhi issued an order in end-December exempting the National Iranian Company (NIOC) which exports crude to India from paying a steep ‘withholding tax’ to the Indian authorities. This order issued on December 28 will have retrospective effect from November 5 so that an amount of $1.5 billion that Indian refiners had accumulated as outstanding payments to NIOC could be released. Under Indian laws, the income of a foreign company that is deposited in an Indian bank account is subject to a withholding tax of 40 percent plus other levies, leading to a total take by the authorities of 42.5 percent.

Suffice to say, the door is open, Iran will now be able to use the rupee funds for a range of expenses–including imports from India, the cost of its missions in the country, direct investment in Indian projects, and its financing of Iranian students in India. It can also invest the funds in Indian government debt securities. The tax exemption order, though, only refers to crude oil. That means it does not apply to imports of other commodities, such as fertilizer, liquefied petroleum gas and wax. It appears that the scope of the use of funds will ensure balanced bilateral trade, which is traditionally in Iran’s favour.

On December 31, the two countries announced that their banking transactions mechanism is ready for operation.

Interestingly, India is leapfrogging many other countries that have been talking about similar payment mechanisms with Iran bypassing the US sanctions. The most glaring instance is of the European Union’s much-vaunted proposed mechanism of the Special Purpose Vehicle (SPV), which has not arrived yet. Brussels had vowed to establish the SPV “before the end of the year (2018) as a way to protect and promote legitimate business (of European companies) with Iran,” to quote the EU foreign policy chief Federica Mogherini.

Clearly, Delhi is not waiting to take the cue from other capitals that may harbor grave reservations over the US sanctions against Iran. Equally, Tehran’s willingness to accept for payments the Indian rupee (which is not traded on international markets) bears testimony to its great desire to sustain a beneficial relationship with India notwithstanding the US pressure on Delhi to severely cut back on economic ties with Iran.

All in all, Delhi seems to be preparing for the long haul. The fact of the matter is that politically, it is an increasingly tall order for the present Iranian leadership to continue with its adherence to its share of the 2015 Iran nuclear deal without any infringement or breach in the face of the failure on the part of the European leaders to deliver on their promise that in return Iran will be compensated through steps such as the EU maintaining and deepening economic relations with Iran, the continued sale of Iran’s oil and gas, effective banking transactions with Iran, the further provision of export credit and development of the SPVs in financial banking, insurance and trade areas and so on.

The ground reality is that the European leaders failed to deliver on their promises to Tehran and Iran has been left to fend for itself under the most savage and unlawful economic and political pressure by Washington. Simply put, while Europe claims that the Iran nuclear deal is of strategic importance, it is unwilling or reluctant to invest in its own strategic interests. The Iranian Foreign Minister Mohammad Zarif aptly summed up the European dilemma in a recent remark that you cannot swim without getting wet. Delhi may have shown that where there is a strong political will, there is always a way forward.

Without doubt, the operationalization of the Chabahar Port a week ago dramatically changes the India-Iran strategic calculus. Where words are not adequate to describe it, a look at the map showing India’s new Silk Road will do. Its geopolitical ramifications are profound. Ironically, Chabahar may eventually bring not only India and Iran but the US as well on the same page. Much lies in the womb of time.

January 2, 2019 Posted by | Economics | , , , | Leave a comment

Guns or Butter: Neocons Want More Weapons less Government Services

By Philip Giraldi | American Herald Tribune | December 30, 2018

It is one of the great ironies that the United States, which is not actually threatened by any foreign power, maintains a ruinously expensive and globally destructive national security policy that is based on fear. It can be argued that Washington was at least briefly a force for stability and good governance in the aftermath of the Second World War when much of Europe and Asia were in ruins, but America’s interference in the internal politics of other nations has, most particularly in the past twenty years, borne bitter fruit. The argument being made that the U.S. national security mandates “forward defense” by maintaining a string of overseas bases and outdated alliances has been proven wrong again and again as allies have proven feckless and countries that would otherwise be friendly have chafed and then rebelled under America’s imposed leadership role.

President and General Dwight D. Eisenhower famously warned in 1961 about the developing military-industrial-complex (MIC), which he had originally dubbed the military-industrial-congressional complex before accepting that he would need legislative help if he were to reverse the seemingly inexorable spending on weapons and expansion of overseas military bases. In the event, Ike’s warning went unheeded and, more recently, the expected “peace dividend” that might have developed from the end of the Cold War in 1991 was wasted when the Clinton Administration recklessly enabled the looting of the former Soviet Union’s natural resources while also expanding the no longer needed NATO alliance up to the Russian border.

Many politicians and industrialists who directly benefit from the spending on the military are largely to blame for propagating the myth that the United States is vulnerable to enemy attack. One only has to recall the panic when Moscow launched a satellite into orbit in 1957 and then there was the essentially fraudulent “Soviet Estimate” by the intelligence community which persisted in overrating Russian military capabilities and the strength of the Soviet Union’s economy. Having a powerful enemy was a sine qua non for those who wished to profit from “defense” spending.

The situation currently is somewhat different than that which prevailed during most of the post-World War 2 era. To be sure, the spending on weapons has continued at a ruinous level but the enemy has changed. Russia is back as a major threat due to the seemingly endless investigations into the 2016 election that have been dubbed “Russiagate,” but it has been joined by China, which is being seen at the major “over the horizon” enemy. And there is also the ubiquitous non-state player “Islamic terrorism” as well as Iran for good measure to keep the money flowing.

It would not be completely fatuous to suggest that the list of all of America’s presumed enemies is at least somewhat contrived. And it is also important to note that the identification of enemies for most Americans depends on the mainstream media, which is now closely linked to corporate and government interests so as to be incapable of independent inquiry or investigation. The impact of a tame media is significant: during the Vietnam War the press was highly critical and hammered the Lyndon B. Johnson Administration. Since then, reporters are embedded and the stories they are allowed to write, are generally puff pieces because to report the truth would make them lose their access.

A recent article that appeared in The Washington Post perfectly illustrates how the newspaper is selling a product that fearmongers to sustain more military spending. It is entitled Wake up. America’s military isn’t invincible, written by regular columnist Robert J. Samuelson.

The article begins with “The most uncovered story in Washington these days is the loss of U.S. military power — a lesson particularly important in light of recent events: the resignation of Defense Secretary Jim Mattis; President Trump’s rash decision to withdraw U.S. troops from Syria; North Korea’s announcement that it will keep nuclear weapons after all; and alleged massive computer hacking by Chinese nationals.”

Now, right off the bat, Samuelson’s argument can be challenged. “Loss of U.S. military power” if it can be quantified at all has nothing to do with Mattis or Syria, nor with North Korea or China. Or even with Donald Trump, who has increased the armed services budget, though one should presume that the president is the ultimate target of the article given that it has appeared in the Post.

Samuelson makes his case by citing defense modernization programs in China and Russia and “advances” in Iran and North Korea that undercut U.S. military capabilities. He refers to a recent report of the congressional National Defense Strategy Commission (NDSC), which identifies specific areas in which Russia and China have upgraded their capabilities and quotes “If the United States had to fight Russia in a Baltic contingency or China in a war over Taiwan . . . Americans could face a decisive military defeat.” The report concludes that “America has reached the point of a full-blown national security crisis.”

The possible armed conflicts cited by Samuelson are, of course, carefully chosen to produce a desired result. Confronting Russia or China in their home waters thousands of miles away from the U.S. gives all the advantage to the defense, which will be able to operate on interior lines and maximize available land, sea, and air forces. And the NDSC report itself is suspect, designed to promote a certain point of view. Its authors are top heavy with retired senior military officers and defense industry “experts” who have a personal interest in more spending on weapons.

Samuelson also cites fellow Post columnist Max Boot, writing that he had “done a great favor by publicizing the report.” He quotes Boot: “Air superiority, which the United States has taken for granted since World War II, is no longer assured. And, without control of the skies, U.S. ships and soldiers would be [highly] vulnerable.” Boot,  sometimes referred to as the Man Who Has Never Been Right About Anything is, of course, a neocon mouthpiece who is in favor of war all the time and nearly everywhere, particularly if Israel is involved. He characteristically, like Samuelson, fancies himself as an expert on national security even though he has never served in the armed forces. His “air superiority” mantra is ridiculous as it would seem to suggest that the U.S. should be able to “control the skies” everywhere simultaneously, which is impossible. And he ignores the fact that the United States uniquely has 19 aircraft carriers which can project air power to anywhere in the world.

Samuelson goes on to condemn what he calls “unwise cuts in defense spending” and cites a 12% decline in spending on the military between 2010 and 2015 as well as a decline in the “defense” share of the GDP from 1960 until 2017. Both figures come from the NDSC report. He does not, however, mention that the current defense budget is larger than the military spending of the next eight countries combined, to include both China and Russia.

Samuelson, doing a great impersonation of ex-Speaker of the House Paul Ryan, blames the lack of money for the Pentagon on “the American welfare state — Social Security, Medicare, Medicaid, food stamps and the like.” He advocates cutting “welfare” to buy more and better weapons. He then goes on to liken the current situation to that existing before World War 2, when Adolph Hitler’s Germany rearmed while England and France did nothing. The analogy is not exactly correct as, when war broke out, France alone fielded an army greater than Germany’s, but it’s always reassuring to have Hitler cited yet again in a neocon op-ed.

Samuelson concludes with the obligatory slap at Trump: “We need to keep our commitments — Trump’s abrupt withdrawal from Syria devalues our word. And we need to repair our alliances,” but one might well opine that there is something seriously wrong with that kind of thinking, where guns always take precedence over butter. Government exists to benefit the citizens that together make up the state, not to meddle in the affairs of other nations and peoples worldwide.

The selling of America the All-Powerful is a bit of a con job promoted by neocons like Samuelson and Boot but we do not need to send tens of thousands of young Americans overseas to give “value to our word.” We do not need to enter into pointless wars in places like Afghanistan, Iraq, Libya, and Syria. We do need an America that is at peace with itself and which is willing to be strong and brave enough to realize that real security will come when the United States is no longer the world’s designated bully. Let’s consider a New Year’s wish to see a 2019 where the soldiers, sailors, marines, and airmen finally come home and where scribblers like Samuelson and Boot find themselves unemployed.

December 30, 2018 Posted by | Economics, Mainstream Media, Warmongering, Militarism, Russophobia | , , , , | Leave a comment