first draftD i s c l a i m e r : I have no background in finance or economics; so don’t base your investment decisions on what you read here. Follow the capitalist hysteria
du jour, and get out early. Historically I’ve gone hysterical capitalistic-ally (!)-speaking late and froze when it came time to get out. Whatever you do, don’t blame me.
IRAN, ITS AGENTS, AND THE TREATY00 Iran for now has turned its episodic defeat -- its surprise at the SOFA/Treaty negotiations between Iraq and the harmful idiots –- into a victory. It turns out that its promise to go through Iraq’s parliament to defeat the proposal is working. There seems to have been not-so-veiled threats against the double-agents. Iran knows them all too well. I find it difficult to pinpoint these threats, but I can swear I see them in the Arabic reporting about the sermons of ayatollah Khatami at his Tehran mosque.
The Iranian threats (if my reading of them is correct) don’t surprise me. You can’t be nursed by Iran for so long in your political life and not expect Iran to demand allegiance and services. It’s only natural. It’s happened to the Lebanese Christians and Lebanese Shias who had worked for Israel during Lebanon’s civil war. For all practical purposes they’re Israel’s people, come what may. Israel owns them. It saved them when it took them in after Hizbollah defeated it, the first time around. I feel bad for them because I’m confident they would rather live in the West. But the last I heard (which was a good while ago), the West didn’t want them. Israel expects their allegiance and their services. Iran expects the same of the Iraqi Shia agents it had nursed, the ones who occasionally forget their status: agents!
The Treaty in the end doesn’t really matter much, at least not as much as the news has portrayed or Iran’s reaction, or the harmful idiots’ colonialist demands included in their draft. Through the Treaty, Sophomoric Crusader and Frustrated Bald Samson in part are trying to tie down the coming administration with a contract, a piece of paper that’s worth as much as the ink on it. Not much. Treaty or non, the harmful idiots will do what they feel they need to do, and the Iranians will behave likewise.
INFLATION, RECESSION, AND UNEMPLOYMENT WILL COMPETE WITH IRAQ.The worthlessness of the Treaty is made all the more obvious by the fact that Iraq and the Treaty will be competing for attention with some dire issues awaiting the new American President. That president should be running smack into high inflation and a possibly steeper-than-usual recession. I can sniff the recession all about me. One of my closest friends on the West Coast just lost his job after at least a dozen years with the same outfit. A colleague’s girlfriend, an accountant, just lost hers. Another acquaintance, at 58, a teacher, was forced into “retirement.”
The papers already announce plenty about inflation: utilities raising rates steeply; Dow chemicals raising prices steeply. On a personal level, I see it when I see one medical bill for pulling water out of my knee, which insurance refuses to pay for. It’s a hefty bill. And food! A 4-lb
tehini, for instance, cost $9.99 a few months ago. (I still have the old container so I was able to check the price.) Yesterday: $19.99.
00 Transportation cost?
00 That and the fact that inflation is hitting Lebanon’s region (from where the tehini comes) really hard. All the oil dollars in the region (likely by now over a trillion) are chasing limited supplies. If you can export your product to the trillionaires in the Gulf and to Euro-land, why would you ask for less by exporting to the land the harmful idiots lord over?
OIL AND THE WIDER MARKET.00 Why now?
00 Because of idiots. Who are harmful. Going for an oil grab (“war”) on a miscalculation about extent and cost. Not taxing for that grab. Worse: giving a tax cut before going for the grab. To compound things: giving a tax rebate after. I mean the world looked hard at us and said these people are a plantation and their dollar is being printed at a speed that way surpasses that plantation’s level of expected growth.
00 What now?
00 First it should be clear to all, including idiots, that you can’t have a strong foreign policy if you have a weak dollar. For one, printing money (a weak dollar) accounts for more than one third (by my rough calculation) of the rise in oil prices. Add to that the insecurity brought about by the invasion of Iraq and the nearly daily talk of war by the harmful idiots, the Israelis, and the Iranians – which invited and still does speculators – , the miscalculation about extent and cost, the expectation by most of the world that Iraq will drain us and bankrupt us even further, and you have the current oil prices. The harmful idiots likely thought that they could emulate Reagan who printed money to defeat the USSR. (Reagan actually did raise taxes.) But the Reagan people were smarter. When Iranian intelligence blew up the US Marines in Lebanon, Reagan retaliated against ... Grenada! A little nothing island so close to home. Smart. Vent the public’s anger and get it over with. (I don’t mean to say that Regan’s people were caring, just politically smart. The Marines in Beirut died because Reagan’s people were asleep at the wheel. But Reagan got away with it.) Reagan, too, through Saudi intelligence (according to the Washington Post then) exploded a car bomb in Beirut decimating tens of civilians in an assassination attempt against Fadlallah, then Hizbollah’s Secretary-General.
Now we will need to raise interest rates and raise taxes, too. McCain’s people have put out the word that people should vote their pocketbook, implying that Obama will raise their taxes. As if McCain will not. Ha! One way to scare voters away from Obama. Never mind that we’re already being taxed via higher oil prices, except that the $2.50-plus extra we’re paying for a gallon of gasoline is going not to us – governments at various levels - - but to the oil producers and companies. I don’t think it’ll matter who gets elected when it come to taxation. Both these guys will have to raise taxes. They’ll do it symbolically at first –raise a hundred billion dollars. But the world isn’t stupid. It’d want to see more than that to return to the dollar. It’d want to see Iraq not drain us. The Federal Reserve will have to complement the taxation hike with a hike in interest rates. If I have to make a guess, I’d say it’ll have to be between 6 and 8 percent I’m being cautious. It could be more.
That should suck the money away from the globe and oil and into the US–or into dollar-denominated accounts. There’ll be political and social turmoil at home. But I don’t think anything else will work. You don’t have a strong dollar and you’re dead when it comes to foreign policy. A strong dollar is a message that the country is well-managed, or well enough to make up for the excesses of years of allowing China, for one, to keep us on a leash with its seller-financing of our consumption. Not to mention that the country will have to address the issue of oil prices
AKA inflation. My guess is that no accumulated capital will leave oil unless it can make the 6-to-8 percent figure, at a minimum. And if accumulated capital doesn’t shed oil, then the bubble will continue on. True, people will drive less, blah blah blah, but would you take your investment out of oil if you weren’t persuaded that the government is serious about doing all it can -- including raising interest rates -- to burst the oil bubble? You wouldn’t want to be in oil when the bubble bursts, would you? And it’s unlikely that it’ll burst of its own accord. If you’re waiting for the rise in oil prices to force a lowering in the price of that staple, forcing accumulated capital to shed it, you might be waiting for a long, long time. Oil is safest until further notice. Anything else –e.g., real estate – and accumulated capital would open itself up to taxation, likely high, by local government. In short: there’s a dire and urgent need to burst the oil bubble.
True: a rise in interest rates beyond a certain point will wreak havoc in the 10-year bond market. Expect havoc!
00 Stocks?
00 These likely might benefit from the money heading back to the dollar denomination. The country will be getting out of the recession around the same time when people would’ve come to terms with the fact that our government is serious about reining in inflation and dollar-printing. Psychologically they’d have adapted to the new mood and will trade and consume away. You can’t stop trade. People will trade away regardless. I remember once in high-taxation Australia learning that BMWs and Mercedes cost so much money, sinfully more than Australian non-luxury cars, because of some luxury tax. Yet, people bought these with abandon. Status always will sell.
IRAQ, AGAIN. 00 Iraq?
00 Can’t continue to spend so much on chimerical schemes and spin. Can’t let Iraq bankrupt us any further. We’re in Iraq for three reasons, two of them aren’t working out or are unlikely to work out in the foreseeable future; one may, but it’ll not benefit us as a society. The three reasons:
1. Gain a strategic advantage
vis-a-vis China and Europe, by controlling oil supplies. The alternative, foreign policy-speaking, is to keep up the value of our currency by raising taxes and interest rates. That should slow down the expansion even more and with it China’s power -- the latter (China's power) being a source of concern for the Pentagon. Politically, it takes courage ans smarts to raise taxes. Oil grabs, to harmful idiots, are easier. They give the illusion of courage (e.g., landing on an aircraft carrier) and smarts (having a competent pilot land the plane.) Crusader and Bald Samson, having come into office on the thinnest of mandates, went the opposite way. Another team player, Alan Greenspan seemed to have been running a popularity campaign by keeping interest rates low. The guy wanted to be popular. Can’t do that. People now are blaming him for the mess. Something’s gotta give. Killing two birds with one stone, Crusader and Bald Samson invaded. But have we gained control of Iraq’s oil by spreading bases all over that country and have we assured long-term military presence there? Hardly. Can it be done in the near future? Highly unlikely.
2. Giving the friends of this oil administration a gift in the form of an Iraqi oil bonanza. And I mean this -- this is not some sort of lefty conspiracy stuff. These two men -- Christian Zionism’s Crusader and Bald Samson -- come from an oil background. Old World me knows that this has an impact on policy and related decisions. This goal may yet become a reality. It’ll help the oil companies but not us. (The oil companies could, too, lose money on this, but they have so much that they can take risks.) Those Europeans who joined in, including most recently Sarkozi, have brought with them their national oil companies. They’re betting that the oil grab will at least work for Big Oil, even if it’ll not work for the harmful idots.
3. Bust OPEC by turning Iraq into the swing producer to replace Saudi Arabia. Because it’s unclear whether Saudi Arabia can play this role any longer. It looks like heavy crude is what it has as spare capacity. I don’t know enough about it, but it seems to me that heavy crude isn’t sought after that much by modern refineries. Goal achieved? Hardly. Can it be achieved in the near-future, say ten years? I doubt it. Iraq should be expected to go through so much turmoil about its oil. Besides, by the time Iraqi capacity is increased the oil bubble likely will have burst. The oil companies might lose their passion. So it looks like it’s a race between bursting the oil bubble and increasing Iraq’s production capacity while under occupation. What’s your bet? I tend to pick the conservative approach. I’m not a gambler. What’s your game? Gambling away so much as Crusader and Bald Samson have done?
ISRAEL: THAT GEM OF AN ADJUTANT. THAT BURDEN.00 What about the reason given that the US invaded Iraq to assure Israel’s security?
00 Israel’s security my ass. Two things:
a. Israel has factored into the miscalculation of extent and cost in that this administration relied on Israel’s people in the US —the Jewish Right and its liberals within its diaspora and the allies of these, including self-hating Arabs and Arab-Americans who owe their careers to the Jewish Right. These played such a huge part in making the calculations. The intellectual framework for these is so Israel-based that the concern about assuring the preeminence of that state blinded them. Or they could simply have been mediocre people, reflecting in their abilities the intellectual curiosity and openness of those at the White House who had called on them. Old World and lawyer me knows that a biased individual is unlikely to judge properly. These guys were/are biased.
b. Everyone and his brother, including Sarkozi, Blair, Cheney, Bush and many, many small ones , ride on the back of the American Jewish community to satisfy their political ambitions. The Israel-as-a-rallying-cry consensus within the American Jewish community must be so strong, so iron-clad, that the majority in that community becomes a sucker to any political entrepreneur – Jewish or non – with blind ambition who wants to get ahead as his best assurance for a penile erection. The American Jewish community seems to have an engine of its own, spinning to Israel’s music, a community that’s fearful of losing its togetherness and thinks that Israel-as-a-rallying-cry can keep it together. Every shrewd political entrepreneur and his brother milk this phenomenon.
00 Anything achieved in Iraq?
–00 Nothing. Absolutely nothing. Forget the spin and the articles about normal life returning to Baghdad. One of the harmful idiots’ theories is that if you create enough stability the political players will come together and heal the wounds and , as a positive side-effect, give the US an oil advantage and bases and what have you.
Like everything the harmful idiots touch, they break -- they shoot themselves (really: us) in the foot. They’re under such pressure to show success at home that they put an entire army of Arab Sunnis (the sahwas and neighborhood watch groups) on the payroll. They made it look like the “surge’ had brought relative peace to Iraq when in fact it had been the formation of a new Sunni army. In other words, the harmful idiots have revived the old army they had dismantled, but this time it’s exclusively Sunni. Too little, too colonialist, and too late. Jordan and Saudi Arabia and the Gulf adjutants of the harmful idiots have promised these that the US will return them as an essential player in the Iraqi body politic. It’s unlikely to happen – not through the harmful idiots, anyway.
Besides, the harmful idiots would sell out the Iraqi Sunnis at the drop of a hat, and do sell them out whenever they strike a deal with the Shia Badr/Dawa government: You go afer Mahdi and we will clip the wings of the sahwas. That’s one of sahwa’s accusation against the harmful idiots. Neither Mahdi nor the Sunni resistance AKA sahwas have gone away, anyway. Maliki’s repression of Mahdi is Iranian-mediated and therefore cosmetic. The sahwas are armed to the teeth and likely haven’t forgotten how to place roadside bombs. For how long will this go on? For ho long do you think the Arab Sunnis will wait for the harmful idiots to return them to an essential role in the life of their country? There are revolutions happening in Iraq, of young against old, of poor against rich, within both sects and within the ranks of the Kurds. What are we doing in the middle of these revolutions? Who are we trying to help? The Shias who will not leave Iran and whose (Mahdi) is aching to go after those in power (Badr/Dawa) ? The Sunnis, whose young and poor have waited so long for their revolution but couldn’t start it under the former President of Iraq? Why stand in their way? Who are we to do that? Only the Kurds have relative calm, the product not so much of their Peshmergas but of so much deal-making with Turkey and Iran. But if the harmful idiots ever dream of heading there, to Iraqi Kurdistan, they can kiss the rest of Iraq goodbye. Additionally, if the US reaches a deal with Iran and Syria and the three repress the Iraqi Sunni Islamic resistance, which force is bound to revive, that would strengthen the Shia state. Which should freak out the Gulf Arabs and these should start rushing over to Tehran and striking independent deals.
I think Iran is here to stay as a regional power. I think any new administration would be foolish not to concede to Iran that role. Unless the harmful idiots can send in a million troops to stay there for years to come. I think the Gulf Arabs -- especially Saudi Arabia -- would be foolish not to open up to Iran in a genuine fashion. I think the Saudi leaders are playing with fire when they allow their secret government to finance anti-Iranian activities in places such as Lebanon and inflame Sunni passions against the Shias. I think the Arab Sunnis of Iraq would be foolish not to follow suit and reach a
modus operandi with Iran. I say these things because I’m confident the various actors are thinking them and acting on them. The bet on Iran’s young to detest the Iranian Revolutionary Guard Corps (IRG) and the mullah is a bad bet. What may come after these (IRG and the mullahs) likely will be much worse.
The harmful idiots in Iraq don’t know what to do. They just don’t. Forget the spin and the portrayal of success at home. They swing between believing the Shia state is theirs and the realization that it’s not. That it would be if they only do this or that, only to find out that Iran can do this or that, too. Then they have the Sunni state which they keep up both as a
modus operandi to supplant the resistance by the Sunnis and the concomitant casualties among the troops, and as a stick against the Shia state. So they think they own at least the Sunni state. A safe bet. But they don’t. The young Islamists have infiltrated this one and will continue to. Why? Because at that checkpoint manned by sahwas, as the level of frustration among the Arab Sunnis climbs higher and higher, as they hit a wall having believed the harmful idiots and their Gulf trilionaires and Jordanian beggar adjutants – it’s then at that same checkpoint, that the sahwas should let the Islamists through on their mission. The Islamists increasingly are and will be their hope for a fighting chance. They can’t leave the money the harmful idiots are doling out to them. But they certainly can turn a blind eye to the Islamists going through a checkpoint. Are we micro-managing these matters as the police would criminal investigations at home? With an army of interpreters? It certainly looks that way. Is this realistic?
God are we gonna get deeper into bankruptcy for chimeric goals!
SAUDI ARABIA AND THE SAHWA CHECKPOINT.00 Can’t the Saudis help out?
00 No. Remember the checkpoint. The sahwas will accept Saudi money but no Iraqi Arab Sunni should trust them or any of the Gulf trillionaires. These weren’t able to stop the Pentagon from practically finishing them, and the trillionaires are supposed to be “allies” of the harmful idiots. Worse, the Saudi government through Bandar bin Sultan had partnered in their humiliation and loss of their country. As an Iraqi Sunni Arab you can’t trust the Sunni “Arabs” of the Gulf. The God of these is Money. Iraq, to many of the Arab Sunnis, had fought a costly 8-year war with the Islamic Republic to defend the trillionaires, in good part. And these turned around and let their protector devastate the same Iraqi Arab Sunnis. No. If I were an Iraqi Arab Sunni I’d be sitting with Iran and reaching a deal. The thinking would be something like this: Iran, after all, didn’t invade and finish us. The axis of the US/Israel/Kuwait/Saudi Arabia did.
00 And that’s exactly why the harmful idiots are trying not to let happen by withdrawing?
00 You bet. In the meanwhile, I suspect there’s likely ongoing open venues of communication and funding between Iran and those among the Sunnis , even mainstream, who know that the harmful idiots can be no good for them if ever they are to see Iraq revived as a nation that is united – not broken up into sectarian and ethnic pieces. The Arab Sunnis need freedom to maneuver; Iran is that freedom.
00 But the Saudis can assist in taking over the payment to the sahwas and saving the Americans some money.
00 The Saudis are schizophrenic. They don’t know what to do. Their secret government unleashes a Sunni anti-Shia paranoia only to discover that Saudi Arabia itself has Shias of its own. So others, with level heads (e.g., Sheikh Muhammad al-Nujaimi , Sheikh –as tribal leader, not religious– Mukhallaf al-Shamri) within the Sunni governmental establishment rush over to a city like al-Qutaif to mitigate the damage Bandar and Muqrin (the secret government) have done. The Saudi Shias are left confused: Is this an act? Going after the Shias outside the Kingdom should come back to haunt the Kingdom.
00 Once you recommended Arab nationalism.
00 Yes; and they seemed to bite but not all that well. Arab nationalism requires them to compete with Iran on the Palestinian-Israeli conflict and the Syrian Arab Joulan. And if they so compete, they’d upset the harmful idiots and Israel’s extensions in the US, including in Congress. Not to mention that Israeli intelligence, which is in the business of collecting and trading intelligence with all, likely has tons of dirt on the ruling princes as does US intelligence. The harmful idiots and the Israelis have the ruling princes by the balls. So the option of Arab nationalism is not. Unless the Saudis shed the team currently in power and that which is expecting to get there. Which isn’t an easy task by any stretch.
In short, as far as US interests are concerned: the Saudis, Kuwaitis and other Gulf trillionaires are useless; the Israelis are harmful, the Egyptians are useless except as adjutants for the Israelis and the harmful idiots in Gaza.
**
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Last minute laugh: Did you notice that Syria went through Turkey to negotiate with Israel? Not Arab Egypt, who would die to play that role as adjutant of the harmful idiots. A few weeks ago, Syria didn't allow Egyptian "journalists" to enter the country, likely believing they were mostly spies on the harmful idiots' payroll. Syria is marginalizing Egypt, not the other way around.)