Daily Archives: 24 February 2012

Main Reason For US Hostility to Iran: they’re leaving the dollar

open quoteAs tensions between the US and Iran heat up, author Michael T. Winter believes the main reason behind America’s harsh stance is Tehran’s move to seek an alternative to the dollar as an oil currency.

­Economic sanctions, spearheaded by the US and, less willingly, the EU could have a disastrous effect on both of their respective economies. If Iran cannot sell their oil to Europe, there are plenty of customers waiting in the wings, and if they come bearing not petrodollars, but gold and sovereign currencies, then all the better for Iran. These sanctions, if enforced, will in effect place a serious dent in the power of the petrodollar.

Any rhetoric regarding Iran’s nuclear program and the insistence on crippling it is nothing more than a US attempt to force regime change for one more receptive to maintaining the hegemony of the petrodollar.

The world now knows the truth about the US and how they conduct their affairs. US hostilities toward Iran have nothing to do with nuclear weapons development. If that were the case, then North Korea and Pakistan would be facing similar sanctions and threats, but they aren’t. The difference of course is in what lies beneath the ground – oil. Iran has it and the other guys don’t.

At the heart of the issue is not Iran’s dubious attempt to build nuclear weapons, or even oil, but how that oil is paid for. In 1973, Richard Nixon promised King Faisal of Saudi Arabia that the US would protect Saudi Arabian oilfields from any and all interested parties seeking to forcefully wrest them from the House of Saud. It’s important to remember that in 1973, Saudi Arabia didn’t have a fraction of the military and ground forces it possesses today (almost exclusively US manufactured weapons) and the USSR was very much a threat.

In return Saudi Arabia, and by extension OPEC, agreed to sell their oil in US dollars only. As if that weren’t sweet enough, as part of the deal, they were required to invest their profits in US treasuries, bonds and bills. The real zinger is that all countries purchasing oil from OPEC had to do so in US dollars, or ‘petrodollars’. close quote (Read more)

Iran well prepared for the worst

open quoteMost discussions of possible United States military operations in the Persian Gulf, should Iran try to prevent maritime traffic from going through the Strait of Hormuz, generally say that while it would not be a cakewalk, it would not be an enormously difficult task either.

But that conventional wisdom is wrong, according to a recent report issued by an independent, non-profit public policy research institute in Washington DC. The report found that the traditional post-Cold War US military ability to project power overseas with few serious challenges to its freedom of action may be rapidly drawing to a close.

. . . .

For example, the populations, governments and much of the wealth of the region are concentrated in a handful of urban areas within range of Iran’s ballistic missiles. While attacks against Gulf cities may have little direct military utility, their psychological and political impact on regional governments could be significant, especially if Iran demonstrated the capacity to arm its missiles with chemical, biological, radiological or nuclear warheads.

And, as most analysts recognize, Iran could also mobilize its network of predominately Shi’ite proxy groups located across Southwest Asia to conduct acts of terrorism and foment insurrection in states that remain aligned with the United States.

Iran’s proxies could become far more dangerous should Iran arm them with guided rockets, artillery, mortars and missiles (G-RAMM). Other groups, like the Lebanese Hezbollah, could conduct a terrorism campaign designed to broaden the crisis and hold US rear areas – even the US homeland – at risk.

And while that indirect approach may not succeed, Iran could use its ballistic missiles and proxy forces to attack US bases and forces in the Persian Gulf directly.

Iran’s hybrid strategy would continue at sea, where its naval forces would engage in swarming “hit-and-run” attacks using sophisticated guided munitions in the confined and crowded waters of the Strait of Hormuz and possibly out into the Gulf of Oman. Iran could coordinate these attacks with salvos of anti-ship cruise missiles and swarms of unmanned aircraft launched either from the Iranian shore or from the islands guarding the entrance to the Persian Gulf.

That last scenario is hardly theoretical. Lieutenant General Paul K Van Riper (US Marine Corps-retired) gained notoriety after the Millennium Challenge 2002 wargame, which was a major exercise conducted by the US armed forces in mid-2002, likely the largest such exercise in history.

It cost $250 million and involved both live exercises and computer simulations. The simulated combatants were the US, referred to as “Blue”, and an unknown adversary in the Middle East, “Red”, commanded by Lieutenant General Van Riper.

Red received an ultimatum from Blue, essentially a surrender document, demanding a response within 24 hours. Thus warned of Blue’s approach, Red used a fleet of small boats to determine the position of Blue’s fleet by the second day of the exercise. In a pre-emptive strike, Red launched a massive salvo of cruise missiles that overwhelmed the Blue forces’ electronic sensors and destroyed 16 warships.

This included one aircraft carrier, 10 cruisers and five of six amphibious ships. An equivalent success in a real conflict would have resulted in the deaths of over 20,000 service personnel. Soon after the cruise missile offensive, another significant portion of Blue’s navy was “sunk” by an armada of small Red boats, which carried out both conventional and suicide attacks that capitalized on Blue’s inability to detect them as well as expected.

In the years since then, Iran has been investing in the capabilities necessary to carry out Van Riper’s strategy. Looking at its maritime forces, in mid-2001 Iran launched the first of a new type of locally built craft equipped with rocket launchers.

In July 2002, a conventional arms sale triggered sanctions on several Chinese companies. Beijing had transferred high-speed catamaran missile patrol boats to Iran. The C-14 boats are outfitted with anti-ship cruise missiles. Short-range anti-ship missiles for the patrol boats also were sold from China to Iran in January 2002. The high-speed gunboat can carry up to eight C-701 anti-ship cruise missiles, and usually have one gun.

Between 2003 and 2005, authorities in the Iranian navy continued to talk about their pushes for greater self-sufficiency, including the continued development of domestically produced missile boats and frigates, as well as new details about submarine projects.

In 2006 and 2007, the Iranian navy accepted new missile boats and a frigate, as well as two types of submarines. The Sina class missile boats, introduced in 2006, were essentially Iranian copies of Kaman missile boats already in service. Also in 2006, the Iranians deployed the first of the Nahang class of midget submarines, described as the first Iranian submarine designed and produced without foreign assistance.

In 2007, the Iranian navy accepted the first of three planned Mowj-class frigates, again essentially copies of a ship already in the Iranian inventory, the Alvand class. Also in 2007, it deployed the Qadir midget submarine, sometimes referred to as the first of the Yono class.close quote (Read more)

Israeli Finance Minister Pushes Naval, Aerial Blockade of Iran in Bloomberg Interview

open quoteIn an interview today with Bloomberg Businessweek, Israeli Finance Minister Yuval Steinitz rejected the European Union’s ban on importation of Iranian crude oil, insisting it doesn’t go nearly far enough.

Instead, Steinitz called for the international community to impose a full naval and aerial blockade across all of Iran so that “no one can even go out [sic].” This is the only option with any chance of success, he said.

Steinitz said a good model for his plan was the Cuban blockade by the United States in 1962, an effort which nearly ended with the annihilation of all life on earth in the Cuban Missile Crisis.

“Sometimes it might work. You have to at least try,” Steinitz added. It is unclear how he imagines the full aerial blockade in the north could be imposed, since it would presumably be opposed by Russia.close quote (Read more)

Mondoweiss: What did AIPAC do and when did it do it? (Iraq)

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As I pointed out yesterday, the Center for American Progress (CAP), a Democratic-Party-linked thinktank in D.C., has met quietly with officials of the Israel lobby group AIPAC (American Israel Public Affairs Committee) and explicitly sought to squelch suggestions by its own journalists that AIPAC is pushing war on Iran.

Notably it squelched a CAP blogger, Eli Clifton, who wrote in August at the thinktank’s site that AIPAC’s summons to Congress for sanctions on Iran “brings to mind eery parallels” to its campaign for Iraq sanctions that paved the way for that stupid war. Clifton’s piece concluded:

It would appear that AIPAC is now using the same escalating measures against Iran that were used before the invasion of Iraq.

But in December the thinktank came under heat from a neocon smear campaign that accused Clifton and others of anti-Semitism, and CAP put its tail between its legs and stuck a long amendment to Clifton’s piece, kinda eviscerating it:

we want to make clear that we are not reporting on whether AIPAC lobbied for the Iraq war.

Also as a matter of clarification, international sanctions on Iran over its nuclear program, particularly those engineered by the Obama administration, are useful…

What is the truth here?

Though AIPAC wants to deny it now, it lobbied for the Iraq war. And CAP is participating in a coverup.

Here’s the data:

Back in 2000, AIPAC specifically worked to ramp up sanctions on Iraq because of its “weapons of mass destruction.” Remember them? In March 2000, AIPAC circulated an Action Alert to Congress, urging its members to put pressure on Congress to pressure the Clinton administration.

If sanctions were lifted, Saddam could spend the oil revenue to accelerate Iraq’s military programs rather than on the humanitarian needs of Iraqi citizens.

It is essential that you contact your representative today and urge them to sign the letter to President Clinton:

Very similar to the Iran sanctions AIPAC pushed last summer.

Then in April 2003, according to JWeekly, AIPAC rose up against a congressional effort led by California Republican Tom Campbell, then taking on Dianne Feinstein in a Senate race, to weaken those sanctions:

The military threat from Iraq is a major concern of the American Israel Public Affairs Committee, which favors retaining economic sanctions.

“Lifting sanctions wouldn’t benefit the Iraqi people,” said Amy Friedkin, an AIPAC national vice president who lives in San Francisco. Rather, it would enable Saddam to obtain more oil money, and use it to amass more weapons. That would constitute a danger to the rest of the Middle East and the world, she added…

Campbell and his allies are now rallying behind H.R. 3825, legislation by Rep. John Conyers, Jr. (D-Mich.) that would allow U.S. companies to export food and medicine to Iraq outside of the U.N. oil-for-food program. Campbell and Rep. Zoe Lofgren (D-San Jose) are among the bill’s co-sponsors.

Friedkin said AIPAC opposes the bill, although the organization recognizes the sponsors’ “very compassionate reasons” for proposing it.

Elliot Brandt, AIPAC’s Pacific Northwest regional director, said: “AIPAC has no desire to hurt the people of Iraq, but we have a vested interest in hurting Saddam Hussein’s ability to build weapons of mass destruction. Rather than blaming the sanctions for hurting the people of Iraq, we should be putting the blame on Saddam Hussein, who is cynically and cruelly using his people as a political card to generate sympathy and support.”

Talk about eery parallels: When Obama tried to stop sanctions on the Iran Central Bank, AIPAC posterized Obama in the Senate 100-0 last December.

Let’s skip forward to the Iraq war itself, 2003.

In The Israel Lobby and US Foreign Policy, Walt and Mearsheimer clearly show that AIPAC pushed the Iraq war, though quietly.

AIPAC usually supports what Israel wants, and Israel certainly wanted the United States to invade Iraq. Nathan Guttman made this very connection in his reporting [in Haaretz, April 2003] on AIPAC’s annual conference in the spring of 2003, shortly after the war started: “AIPAC is wont to support whatever is good for Israel, and so long as Israel supports the war, so too do the thousands of the AIPAC lobbyists who convened in the American capital.” AIPAC executive director Howard Kohr’s statement to the New York Sun in January 2003 is even more revealing, as he acknowledged “‘quietly’ lobbying Congress to approve the use of force in Iraq” was one of “AIPAC’s successes over the past year.” And in a lengthy New Yorker profile of Steven J. Rosen, who was AIPAC’s policy director during the run-up to the Iraq war, Jeffrey Goldberg reported that “AIPAC lobbied Congress in favor of the Iraq war.” 

Dana Milbank reported in the Washington Post on that AIPAC conference as the Iraq war began:

Officially, AIPAC had no position on the merits of a war against Iraq before it started. Officially, Iraq is not the subject of the pro-Israel lobby’s three-day meeting here.

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