Tuesday, March 24, 2009

The Iranian Government: A Petulant Child

Recently, President Obama attempted to normalize, at least to some degree, the relations between Iran and the US. He tried to use key operative words to express that the US does respect Iran, its history, its strength, its people. Obama even bent over backwards to convey such respect by congratulating the Iranians on the start of the Persian calendar year 1338. What year? I think the rest of the world is calling 2009. He even used phrases from a famous Iranian poet. All this simply to try to have dialogue, start fresh after a bitter and isolated 30 years, when the Iranians took over the US Embassy and tossed out the Shah and installed radicals that subsequently got Iran into a eight year war with Iraq and resembled WW1, complete with hundreds of thousands of deaths.

An what is Iran's government response?

Iran reacted like a kid brother trying to catch up to the rest of the world in prestige after 30yrs of isolation, like a street punk holding some illusion of power. Its default rhetoric remained, "Thanks, but change your policies, and we will talk", "don't be fooled by Obama, he is as harsh and dangerous and is against Iran as Bush was". Ahmadinejad, Iran's president, went on to state that iran will not change nor forget the previous hostile and aggressive attitude of the US. Iran will not show its back to him.

Now, we all know this guy is out to lunch. Some think he was part of the 1979 overthrow, when he was a student. But what the heck is he referring to? What hostile American policy is he ranting about?

They were the hostiles in 1979. They went to war with Iraq for eight years and did not want peace. They send Iranian made weapons into Iraq. They send elite soldiers to train HAMAS in the Gaza and in Lebanon. They have nuclear ambitions just to prove to the world that they are a "major" player on the world stage.They refuse to allow UN inspectors in to their nuclear sites to prove to the world that it is for peaceful purposes. They deliberately isolate themselves and provide harsh law on their young population. They try to control every aspect of its population through deception and other means.

Why would Obama change policy with such a BS response. What policy? Do they mean, get out of Iraq, get out of Afghanistan, not fight al-Qaeda, not fight the Taliban, have faith in Iranian promises regarding nukes, remove USN escorts of oil tankers through the Straits of Hormuz, halt western influence via satellites, accept Iran as an equal on the world stage?

Seriously, the government in Iran is acting like an angry, neglected kid that now demands attention or they will not play. It is they should get over their own inferiority complex. Responding publicly as they have simply will continue to chill things. Whether Obama is sincere or not, at least, at the very minimum, he tried.

Apparently, Iran likes isolation and playing the role of the bad-ass, rogue, nation of the world. So, that is just how they will be treated. They are not interested in conciliation, they seek power via weapons. They seek a "Greater Persia" as in by-gone days. They seek world respect in the most dangerous way. The outcome of any Iran against the World is predictable. But then, their are some real crazies leading its people.

Friday, March 13, 2009

China is Buying America

The recent naval confrontations within international waters between Chinese patrol craft and the US Impeccable, a mapping and reconnaissance vessel, seem to indicate things to come.

China is a major economic player. It is no longer a "red chinese menace" although it remains communist in nature, except for the special "economic zones of capitalism", such as Hong Kong. China is outspending the major Western powers in military hardware. But China is simply not building up its military, it already owns much of America and is America's largest creditor for loans, which the US desperately needs. I know, rather scary if you really think about the ramifications!

It now owns nearly $1 out of every $10 in U.S. public debt and this forces the US government to rely on China economically as it tries to cover the $700 billion dollars bailout. China owns so much of America it is too vast to fathom since most of the purchases of treasury notes and bonds are via third party countries. This is granting Beijing extraordinary sway over the U.S. economy. In effect, a economic weapon should they threaten to sell or move out of this part of the US economy. If China decides to move out of U.S. government bonds it could lead a herd of other investors to follow suit. That would drive up the cost of U.S. borrowing, damaging Obama's ability to fund his stimulus package to jump-start the economy. If it sold its investments, interest rates would increase on all loans that America needs.

The economic weapon is deeper. if China continues to invest heavily in the US economy, it actually makes it harder for the US to sell its products overseas because China's purchase of U.S. bonds makes the dollar stronger, particularly against the Chinese yuan, which has been kept artificially weak to boost Chinese exports! Something the US greatly dislikes yet must tolerate because of China's 800 billion of dollars invested in America. The Chinese have influenced the home mortgage rates also by shying away from buying more, Fannie Mae and Freddie Mac (which have now been taken over by the US Government) have had to pay more to borrow and have gotten less for mortgage bonds. This pushes up rates for people seeking home loans just as the U.S. government is trying to bring them down! China has the world's largest cash reserves ($1.9 trillion), and has shed about $50 billion in Freedie Mac and Fannie Mae debt and mortgage bonds.

Unknown to the US public, China is co-financing the $1 trillion annual U.S. deficit and massive bailout with money earned from exports to the United States, which last year imported five times as much as it exported to China.

By China buying bonds in US dollars, it weakens the yuan making goods much cheaper to import to the US than US goods into China. The bottom line to all this is that if China stopped investing in the US, then sold their investments, the US economy would be in cardiac arrest. The US knows this as does China.

Now, China is giving the US government a "warning" to make sure that they make credible decisions with Chinese investments, otherwise, guess what? More disturbing is the fact that the Chinese are even making this threat. This would never had occurred even a few years ago. The Chinese Navy would never had harassed a US Naval ship in international waters moving to within 100 yards in provocative action.

In the 60s and 70s, the cheap products were made in Japan. Now, its China. China maybe using the old marxism, that roughly states that the communists would use the West and "milk them" for all technology and advances during friendly times and when equal to them, confront them and seize the enemy. Unlike the USSR in its heyday, China's economic weapon on the US might be used as a first blow, followed by some sort of military sortie against Taiwan, the oil fields in the South Sea as their demands for fuel outgrow even America's or vice versa. As its military grows, one can see when China may start seizing geographic areas of interest for economic reasons. The question is how can the West confront this? The larger and stronger they become, the more influence they will have on world governments. China's new found wealth is emboldening them, no question about this. Will China turn on America once it no longer benefits them?

China really is a sleeping dragon. But this ain't no fairy tale.

Friday, March 6, 2009

Hamas and the $900 million from the UN

The US fights terrorists on one hand, fully support Israel's defense including the recent Gaza War after Hamas fired rockets into Israel, then, like the Wizard of Oz, pledges $900 million dollars (of our taxpayer money) to the Palestinians to rebuild Gaza. The money, when granted, will flow via a UN Agency, the United Nations Relief and Work Agency, or UNWRA. Hamas has a close relationship with this agency and openly employs high ranking senior terrorists! The money will not reach Hamas but will go instead to nongovernmental organizations, most notably UNWRA, so claimed by the US. Excuse me, just how can they be 100% sure none will be diverted to Hamas? The PLO and Hamas share the same Gaza Strip, they share the same bed, even though they may not like each other and one is more radical than the other. Will the US have some security measures once the money begins to arrive.

In July, 2001, Hamas convened a conference in a UNRWA school in the Jabalya refugee camp in Gaza. Hamas presented their ideology, and then an Hamas leader, Saheil Alhinadi, who represented the teaching sector of UNRWA, praised students who had recently carried out suicide attacks against Israel! Hamas used the UNRWA schools to hold their meetings. Past confessions during Israeli interrogations that Hamas transported weapons and explosives in an UNRWA ambulance to terrorists within Gaza. Israeli intelligence has even provided evidence that in some UNRAW camps, the Hamas is using them to make weapons and fire rockets from.

Hmmm, does the US really think none of the $900 million will be secretly diverted to Hamas for weapons they purchase from Syria, Iran? What planet is Hilary Clinton on? US officials claim they can send the money via "trusted" secure means. Hmmm, what happens after it is delivered? Is the US going to have someone there?

Of course, the US strategy is naive. They think that the money will be used solely by the PLO president Mahmoud Abbas and boost his respect within Gaza and the US, which generally is seen as a foe of the PLO. They hope that the reconstruction will allow the US to have a greater influence over the PLO, which also shares the Gaza with Hamas terrorists. Clinton also conveys the proper image while in the Middle East by wearing a scarf covering her head, as if a Secretary of State has to do "please" the Muslim community.

I can see how the current US administration will try to play both sides of the Middle East mess, but at some point, I think it will backfire and they really must choose.


The FDIC in the US is a government organization that guarantees all deposits made by anyone in the US into a US bank are secure. If the bank collapses, those whose money deposited in the bank will be fully refunded up to $100,000.

The problem now is that by the end of this year, the FDIC, unless more money is given to it, will no longer be able to refund any money lost due to a bank failure. If this happens, depositors will withdraw their money out of fear. This happened in 1929 and many banks quickly failed and the Great Depression occurred. This is a very bad sign.

PrintShare it!