Coming Soon - War with Iran?

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Re: Coming Soon - War with Iran?

Postby Ben D » Sun Jan 01, 2012 6:13 am

Iran says it's produced first nuclear fuel rod

AP – 1 hr 26 mins ago

TEHRAN, Iran (AP) — Iran says its scientists have produced the nation's first nuclear fuel rod, a feat of engineering the West doubted Tehran was capable of.

Sunday's announcement comes after Iran has said it was compelled to manufacture fuel rods on its own since international sanctions banned Tehran from buying them on foreign markets.

Nuclear fuel rods contain pellets of enriched uranium that provide fuel for nuclear power plants.

Iran's atomic energy agency's website says the first domestically made rod has already been inserted into the core of Tehran's research nuclear reactor.


It's unclear if the rod contained pellets or was inserted empty, as part of a test.

The West fears Iran's uranium enrichment program is geared toward making atomic weapons — a charge Tehran denies.


Obama signs Iran sanctions bill into law

31 December 2011 Last updated at 22:49 GMT

US President Barack Obama has signed into law a major defence bill including tough new sanctions against Iran.

The law cuts off from the US financial system foreign firms that do business with Iran's central bank.

But Mr Obama stressed that he had concerns about parts of the legislation dealing with the handling of foreign terror suspects.

"The fact that I support this bill as a whole does not mean I agree with everything in it," Mr Obama said.

The president signed the law in Hawaii, where he is on holiday. The move comes at a times of heightened tension over the Iranian nuclear programme.

Western powers say Tehran is seeking to acquire a nuclear weapons capability, but Iran insists the programme is purely for energy and medical purposes.
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Re: Coming Soon - War with Iran?

Postby Ben D » Tue Jan 03, 2012 7:38 am

Not sure if this is an official statement but fwiw...

Iran threatens US over aircraft carrier

TEHRAN, January 3 – Iran will take action if a US aircraft carrier which left the area because of Iranian naval exercises returns to the Gulf, the state news agency quoted army chief General Ataollah Salehi as saying on Tuesday.

“Iran will not repeat its warning ... the enemy’s carrier has been moved to the Sea of Oman because of our drill. I recommend and emphasise to the American carrier not to return to the Persian Gulf,” Gen Salehi told IRNA.

“I advise, recommend and warn them [the Americans] over the return of this carrier to the Persian Gulf because we are not in the habit of warning more than once,” the semi-official Fars news agency quoted Gen Salehi as saying.

Gen Salehi did not name the aircraft carrier or give details of the action Iran might take if it returned.

Iran completed 10 days of naval exercises in the Gulf on Monday, and said during the drills that if foreign powers imposed sanctions on its crude exports it could shut the Strait of Hormuz, through which 40 per cent of the world’s traded oil is shipped.

The US Fifth Fleet, which is based in Bahrain, said it would not allow shipping to be disrupted in the strait.
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Re: Coming Soon - War with Iran?

Postby Searcher08 » Tue Jan 03, 2012 12:30 pm

I was amazed by those remarks -it's like going up to the class bully and drawing a line in the sand and saying 'I'll beat on you if you cross it'

There was a poll a short while ago that indicated a large percentage of Amercians would only support a war with Iran if there was a first strike attack on an American carrier...
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Re: Coming Soon - War with Iran?

Postby ninakat » Tue Jan 03, 2012 4:03 pm

emphasis mine

War Imminent In Straits Of Hormuz? $200 A Barrel Oil?
Written by John Daly
Thursday, 29 December 2011

The pieces and policies for potential conflict in the Persian Gulf are seemingly drawing inexorably together.

Since 24 December the Iranian Navy has been holding its ten-day Velayat 90 naval exercises, covering an area in the Arabian Sea stretching from east of the Strait of Hormuz entrance to the Persian Gulf to the Gulf of Aden. The day the maneuvers opened Iranian Navy Commander Rear Admiral Habibollah Sayyari told a press conference that the exercises were intended to show "Iran's military prowess and defense capabilities in international waters, convey a message of peace and friendship to regional countries, and test the newest military equipment." The exercise is Iran's first naval training drill since May 2010, when the country held its Velayat 89 naval maneuvers in the same area. Velayat 90 is the largest naval exercise the country has ever held.

The participating Iranian forces have been divided into two groups, blue and orange, with the blue group representing Iranian forces and orange the enemy. Velayat 90 is involving the full panoply of Iranian naval force, with destroyers, missile boats, logistical support ships, hovercraft, aircraft, drones and advanced coastal missiles and torpedoes all being deployed. Tactics include mine-laying exercises and preparations for chemical attack. Iranian naval commandos, marines and divers are also participating.

The exercises have put Iranian warships in close proximity to vessels of the United States Fifth Fleet, based in Bahrain, which patrols some of the same waters, including the Strait of Hormuz, a 21 mile-wide waterway at its narrowest point. Roughly 40 percent of the world's oil tanker shipments transit the strait daily, carrying 15.5 million barrels of Saudi, Iraqi, Iranian, Kuwaiti, Bahraini, Qatari and United Arab Emirates crude oil, leading the United States Energy Information Administration to label the Strait of Hormuz "the world's most important oil chokepoint."

In light of Iran’s recent capture of an advanced CIA RQ-170 Sentinel drone earlier this month, Iranian Navy Rear Admiral Seyed Mahmoud Moussavi noted that the Iranian Velayat 90 forces also conducted electronic warfare tests, using modern Iranian-made electronic jamming equipment to disrupt enemy radar and contact systems. Further tweaking Uncle Sam’s nose, Moussavi added that Iranian Navy drones involved in Velayat 90 conducted successful patrolling and surveillance operations.

Thousands of miles to the west, adding oil to the fire, President Obama is preparing to sign legislation that, if fully enforced, could impose harsh penalties on all customers for Iranian oil, with the explicit aim of severely impeding Iran’s ability to sell it.

How serious are the Iranians about the proposed sanctions and possible attack over its civilian nuclear program and what can they deploy if push comes to shove? According to the International Institute for Strategic Studies’ The Military Balance 2011, Iran has 23 submarines, 100+ “coastal and combat” patrol craft, 5 mine warfare and anti-mine craft, 13 amphibious landing vessels and 26 “logistics and support” ships. Add to that the fact that Iran has emphasized that it has developed indigenous “asymmetrical warfare” naval doctrines, and it is anything but clear what form Iran’s naval response to sanctions or attack could take. The only certainty is that it is unlikely to resemble anything taught at the U.S. Naval Academy.

The proposed Obama administration energy sanctions heighten the risk of confrontation and carry the possibility of immense economic disruption from soaring oil prices, given the unpredictability of the Iranian response. Addressing the possibility of tightened oil sanctions Iran’s first vice president Mohammad-Reza Rahimi on 27 December said, “If they impose sanctions on Iran’s oil exports, then even one drop of oil cannot flow from the Strait of Hormuz.”

Iran has earlier warned that if either the U.S. or Israel attack, it will target 32 American bases in the Middle East and close the Strait of Hormuz. On 28 December Iranian Navy commander Rear Admiral Habibollah Sayyari observed, "Closing the Strait of Hormuz for the armed forces of the Islamic Republic of Iran is very easy. It is a capability that has been built from the outset into our naval forces' abilities."

But adding an apparent olive branch Sayyari added, "But today we are not in the Hormuz Strait. We are in the Sea of Oman and we do not need to close the Hormuz Strait. Today we are just dealing with the Sea of Oman. Therefore, we can control it from right here and this is one of our prime abilities for such vital straits and our abilities are far, far more than they think."

There are dim lights at the end of the seemingly darker and darker tunnel. The proposed sanctions legislation allows Obama to waive sanctions if they cause the price of oil to rise or threaten national security.

Furthermore, there is the wild card of Iran’s oil customers, the most prominent of which is China, which would hardly be inclined to go along with increased sanctions.

But one thing should be clear in Washington – however odious the U.S. government might find Iran’s mullahcracy, it is most unlikely to cave in to either economic or military intimidation that would threaten the nation’s existence, and if backed up against the wall with no way out, would just as likely go for broke and use every weapon at its disposal to defend itself. Given their evident cyber abilities in hacking the RQ-170 Sentinel drone and their announcement of an indigenous naval doctrine, a “cakewalk” victory with “mission accomplished” declared within a few short weeks seems anything but assured, particularly as it would extend the military arc of crisis from Iraq through Iran to Afghanistan, a potential shambolic military quagmire beyond Washington’s, NATO’s and Tel Aviv’s resources to quell.

It is worth remembering that chess was played in Sassanid Iran 1,400 years ago, where it was known as “chatrang.” What is occurring now off the Persian Gulf is a diplomatic and military game of chess, with global implications.

Washington’s concept of squeezing a country’s government by interfering with its energy policies has a dolorous history seven decades old.

When Japan invaded Vichy French-ruled southern Indo-China in July 1941 the U.S. demanded Japan withdraw. In addition, on 1 August the U.S., Japan’s biggest oil supplier at the time, imposed an oil embargo on the country.

Pearl Harbor occurred less than four months later.
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Re: Coming Soon - War with Iran?

Postby ninakat » Thu Jan 05, 2012 2:53 am

Via Cryptogon, linked from GlobalResearch, original story at Whiteout Press.

US Troops going to Israel
Whiteout Press

January 2, 2012. Jerusalem. In one of the most blacked-out stories in America right now, the US military is preparing to send thousands of US troops, along with US Naval anti-missile ships and accompanying support personnel, to Israel. It took forever to find a second source for confirmation of this story and both relatively mainstream media outlets are in Israel. With one source saying the military deployment and corresponding exercises are to occur in January, the source providing most of the details suggests it will occur later this spring.

Calling it not just an “exercise”, but a “deployment”, the Jerusalem Post quotes US Lt.-Gen Frank Gorenc, Commander of the US Third Air Force based in Germany. The US Commander visited Israel two weeks ago to confirm details for “the deployment of several thousand American soldiers to Israel.” In an effort to respond to recent Iranian threats and counter-threats, Israel announced the largest ever missile defense exercise in its history. Now, it’s reported that the US military, including the US Navy, will be stationed throughout Israel, also taking part.

Also confirming the upcoming US-Israeli military missile exercises is JTA.org - 'global news service of the Jewish people'. In their account, they report, 'Last week, plans for Gen. Martin Dempsey, the chairman of the U.S. Joint Chiefs of Staff, to visit Israel in January were leaked to Israeli media; his visit likely will coincide with the largest-ever joint U.S.-Israel anti-missile exercise'.

While American troops will be stationed in Israel for an unspecified amount of time, Israeli military personnel will be added to EUCOM in Germany. EUCOM stands for United States European Command.

(continues)
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Re: Coming Soon - War with Iran?

Postby ninakat » Thu Jan 05, 2012 3:36 pm

VIPS Memo To Obama: Avoid Another Long War
Coleen Rowley
Posted: 1/5/12 09:08 AM ET

Obama's re-election campaign may be focusing almost exclusively on domestic economic issues but there are strong forces pushing him and the U.S to war again, this time with Iran. The dangerous brinkmanship with Iran could be alleviated if facts were not being misrepresented and distorted. Inasmuch as American politicians have failed miserably in the last decade on the issue of war, it would behoove concerned citizens to bring the facts in our memo to the attention of their respective congresspersons, as well as the president.

    January 4, 2012

    MEMORANDUM FOR: The President

    FROM: Veteran Intelligence Professionals for Sanity (VIPS)

    SUBJECT: Avoiding Another Long War


    As retired professionals with collectively hundreds of years of experience in intelligence, foreign policy, and counterterrorism, we are concerned about the gross misrepresentation of facts being bruited about to persuade you to start another war.

    We have watched the militarists represent one Muslim country after another as major threats to U.S. security. In the past, they supported attacks on Sudan, Somalia, Yemen, Iraq, Pakistan, Libya and Afghanistan, as well as Israel's attacks on Syria and Lebanon -- nine Muslim countries -- and Gaza.

    This time, they are using a new IAEA report to assert categorically that Iran is building a nuclear weapon that allegedly poses a major threat to the U.S. Your intelligence and military advisors can certainly clarify what the report really says.

    As you know, the IAEA makes regular inspection visits to Iran's nuclear facilities and has TV cameras monitoring those facilities around the clock. While there is reason to question some of Iran's actions, the situation is not as clear-cut as some allege.

    Mohamed ElBaradei, a Nobel Peace Prize recipient and former IAEA director-general, said recently, "I don't believe Iran is a clear and present danger. All I see is the hype about the threat posed by Iran."

    He is not alone: All 16 U.S. intelligence agencies concluded "with high confidence" in a 2007 National Intelligence Estimate that Iran had halted its nuclear-weapons program as of 2003.

    We are seeing a replay of the "Iraq WMD threat." As Philip Zelikow, Executive Secretary of the 9/11 Commission said, "The 'real threat' from Iraq was not a threat to the United States. The unstated threat was the threat against Israel."

    Your military and intelligence experts can also provide information on unpublicized efforts to derail Iran's nuclear program and on the futility of attempting to eliminate that program - which is dispersed and mostly underground -- through aerial bombing. Defense Secretary Panetta and other experts have stated that an air attack would only delay any weapons program for a year or two at most. Former Mossad head Meir Dagan said that an air force strike against Iran's nuclear installations would be "a stupid thing," a view endorsed in principle by two other past Mossad chiefs, Danny Yatom and Ephraim Halevy. Dagan added that "Any strike against [the civilian program] is an illegal act according to international law."

    Dagan pointed out another reality: bombing Iran would lead it to retaliate against Israel through Hezbollah, which has tens of thousands of Grad-type rockets and hundreds of Scuds and other long-range missiles, and through Hamas.

    We are already spending as much as the rest of the world combined on National Security and $100 billion per year on a Long War in Afghanistan. The Israel lobby has been beating the drums for us to attack Iran for years, led by people with confused loyalties like Joe Lieberman, who once made the claim that it is unpatriotic for Americans not to support Israel.

    Another Long War is not in America's or Israel's interests, whatever Israel's apologists claim. Those are the same people who claim that Ahmadinejad said he would "wipe Israel off the map."

    Persian specialists have pointed out that the original statement in Persian actually said that Israel would collapse: "This occupation regime over Jerusalem must vanish from the arena of time."

    What we have is a situation where Israel's actions, for example in sending 300,000 settlers into the West Bank and 200,000 settlers into East Jerusalem, are compromising U.S. security by putting us at risk for terrorist retaliation. We have provided Israel with $100 billion in direct aid since 1975. Since this is fungible, how has funding settlements contributed to our security? You agreed to provide $3 billion in F-35s to Israel in exchange for a 90-day freeze on settlements. What you got was 90 days of stonewalling on the peace process and then more settlers. What more do we owe Israel?

    Certainly not a rush to war. We have time to make diplomacy and sanctions work, to persuade Russia and China to make joint cause with us.

    James Madison once wrote that "Of all the enemies of true liberty, war is, perhaps, the most to be dreaded... War is the parent of armies; from these proceed debts and taxes. ...No nation can preserve its freedom in the midst of continual warfare."

    We are currently winding down what you labeled a "dumb war;" we should not undertake another dumb war against a country almost three times larger than Iraq, that would set off a major regional war and create generations of jihadis. Such a war, contrary to what some argue, would not make Israel or the U.S. safer.

    Steering Group, Veteran Intelligence Professionals for Sanity (VIPS)

    Phil Giraldi, Directorate of Operations, CIA

    Ray McGovern, US Army Intelligence Officer, Directorate of Intelligence, CIA

    Coleen Rowley, Special Agent and Minneapolis Division Counsel, FBI

    Ann Wright, Col., US Army Reserve (ret.), Foreign Service Officer, Department of State

    Tom Maertens, Foreign Service Officer and NSC Director for Non-Proliferation under two presidents

    Elizabeth Murray, former Deputy National Intelligence Officer for the Near East in the National Intelligence Council

    David MacMichael, former history professor and CIA and National Intelligence Council analyst
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Re: Coming Soon - War with Iran?

Postby eyeno » Fri Jan 06, 2012 6:19 am

A truly regional problem if it happens.



OPEC’s second largest producer Iran sells large volumes of oil to China, India, South Korea, Japan and Italy. But Turkey, South Africa and Sri Lanka rely most heavily on Iranian oil as a percentage of imports.

U.S. sanctions already forbid imports of Iranian oil. France is pressing the European Union to consider a ban on Iranian oil to discourage Tehran’s nuclear programme.

Iran produces about 3.5 million barrels a day of crude with another 500,000 bpd of condensate, exporting about 2.6 million bpd of which 50,000 bpd is refined products, the International

Energy Agency estimates.

The top ten buyers of Iranian crude are as follows. Data is for the second quarter 2011 from the IEA with the exception of China, India and Sri Lanka which are not IEA members. Data for

those countries is for first half 2011 from the U.S. Energy Information Administration.

Country Imports k/bpd Percent Imports

1. China 543,000 10

2. India 341,000 11

3. Japan 251,000 5.9

4. Italy 249,000 13.3

5. South Korea 239,000 7.4

6. Turkey 217,000 30.6

7. Spain 149,000 9.6

8. Greece 111,000 34.7

9. South Africa 98,000 25

10.France 78,000 4.4

In addition Sri Lanka imported 39,000 bpd in the first half of the year. It is completely reliant on Iranian oil.

Iran holds around 137 billion barrels of proven oil reserves, or nearly 10 percent of the world total, according to the BP Statistical Review of World Energy 2011. Despite sitting on the world’s second largest reserves of gas, Iran’s growing appetite for its own gas, combined with tightening international sanctions that have throttled its fledgling liquefied natural gas (LNG) programme, have made it a net gas importer for most of the last decade. Natural gas accounts for 54 percent of Iran’s total domestic energy consumption, while most of the remainder of energy consumption is attributable to oil, according to the EIA.

(Complied by Daniel Fineren and Emma Farge; editing by William

Hardy)

http://www.kippreport.com/2012/01/top-1 ... irans-oil/




Oh wait...its already a problem. emphasis in red mine



Legislation reluctantly signed into law by President Barack Obama last week requires the president within 180 days to impose sanctions on any foreign financial institutions that deal with Iran's central bank. Widespread refusal to deal with Iran's central bank would strangle the country's access to hard currency from its oil revenues, which earn Iran, as the world's fourth-largest oil exporter, about $75 billion a year.

But it can be waived for 120 days at a time so I guess we will see who blinks

Although the president can waive the new sanctions for 120 days at a time, a White House spokesman said the administration is working with its European allies and others "to be in a position to most effectively implement" the sanctions, seeking to "avoid negative repercussions to international oil markets."
http://www.huffingtonpost.com/2012/01/0 ... ostpopular





These people aim to give Iran a central bank courtesy of the country of London or else...
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Re: Coming Soon - War with Iran?

Postby wordspeak2 » Fri Jan 06, 2012 10:44 am

Yeah, what about that "U.S. Troops to Israel" story that ninakat posted? Big deal, no?

Russia Today is framing it as "Thousands of U.S. Troops Deploying to Israel"
https://rt.com/usa/news/us-troops-israel-iran-257/

Washington Post frames it as a missile defense drill:
http://www.washingtonpost.com/world/mid ... tid=pm_pop
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Re: Coming Soon - War with Iran?

Postby seemslikeadream » Sun Jan 08, 2012 9:31 am

Iranian war fears spark closure of Israel reactor

From: The Times
January 09, 2012 12:00Am

ISRAEL is preparing to shut its nuclear reactor at Dimona, where it makes nuclear weapons, because of the site's vulnerability in a war with Iran.

The decision, taken by the Israel Atomic Energy Commission and the country's civil defence authorities, follows a realisation that the facility could be vulnerable to a missile attack.

The Haaretz newspaper quoted officials last week as saying they had concluded the reactor was no longer impenetrable in the event of war.

Deactivating the reactor in the southern Negev desert would minimise the dangers of nuclear fallout in the area "should it be targeted by missiles from as far away as Iran".

The official explanation is that work on the reactor is conducted for research and does not need to be carried out around the clock.

According to defence sources, the shutdown at Dimona would begin before the launch of any Israeli or US assault on Iran's nuclear facilities.
Tile2_28DayPass

Whistleblowing technician Mordechai Vanunu, who first revealed Israel's nuclear arsenal to London's The Sunday Times in 1986, worked at Dimona.

Uzi Even, one of the founders of Israel's nuclear program and now a professor in Tel Aviv, said it would take a long time, many weeks, to cool down a nuclear reactor and lower the level of radioactivity.

He said the Dimona reactor, built in 1964, was probably the second oldest active reactor in the world.

It was dangerous and "should have been closed a long time ago", he said.

Dimona, constructed with French help, was used to make plutonium for nuclear weapons and experts say the reactor produces tritium for H-bombs.

The defence of Dimona is a top priority.

Huge air defence batteries ring the site, but this is no longer considered sufficient.

An Israeli intelligence officer said last week that in the event of war with Iran "no fewer than 15,000 rockets and missiles will land on Israel".

The decision to close Dimona follows Iranian warnings that the site is a legitimate target.

Iran's deputy chief of staff Brigadier-General Massoud Jazzayeri has warned that Dimona would be targeted in retaliation to an Israeli attack.

A leaked defence department report suggested security arrangements at Dimona had been "severely deficient" for years.

Dimona is within range of Iranian and Syrian missiles, and some of those possessed by the Lebanese militia Hezbollah.
Mazars and Deutsche Bank could have ended this nightmare before it started.
They could still get him out of office.
But instead, they want mass death.
Don’t forget that.
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Re: Coming Soon - War with Iran?

Postby Nordic » Mon Jan 09, 2012 1:21 am

I found this story today to be particularly chilling:

http://www.rawstory.com/rs/2012/01/08/u ... an-consul/

WASHINGTON — The United States has declared the Venezuelan consul general in Miami persona non grata and ordered her expulsion, a State Department official said Sunday.

The Venezuelan embassy in Washington was notified of the action on Friday and Livia Acosta Noguera, the consul general, was given until January 10 to leave the country, said William Ostick, a State Department spokesman.

“In accordance with Article 23 of the Vienna Convention on Consular Relations, the department declared Ms Livia Acosta Noguera, Venezuelan consul general to Miami, to be persona non grata. As such, she must depart the United States by January 10,” he said.

“We cannot comment on specific details behind the decision to declare Ms Acosta persona non grata at this time,” he added in a statement.

The State Department had said last month it was looking into “very disturbing” allegations that Noguera was a participant in an alleged Iranian plot to launch cyber-attacks on sensitive US national security facilities.

The allegations were made in a documentary that aired on the Spanish-language television network Univision.

The US action comes as Iranian President Mahmoud Ahmadinejad was to kick off a Latin American tour in Caracas later Sunday.

Last edited by Nordic on Mon Jan 09, 2012 5:20 am, edited 1 time in total.
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Re: Coming Soon - War with Iran?

Postby Ben D » Mon Jan 09, 2012 3:05 am

Nordic wrote:I found this story today to be particularly chilling:
http://www.rawstory.com/rs/2012/01/08/u ... an-consul/

How subtle is that...

The Venezuelan embassy in Washington was notified of the action on Friday and Livia Acosta Noguera, the consul general, was given until January 10 to leave the country, said William Ostick, a State Department spokesman.
-snip-
The State Department had said last month it was looking into “very disturbing” allegations that Noguera was a participant in an alleged Iranian plot to launch cyber-attacks on sensitive US national security facilities. The allegations were made in a documentary that aired on the Spanish-language television network Univision.

The US action comes as Iranian President Mahmoud Ahmadinejad was to kick off a Latin American tour in Caracas later Sunday.
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Re: Coming Soon - War with Iran?

Postby Laodicean » Mon Jan 09, 2012 4:57 am

Iran sentences American man to death in CIA case

(AP) – 23 minutes ago

TEHRAN, Iran (AP) — An Iranian court has convicted an American man of working for the CIA and sentenced him to death, state radio reported Monday.

Iran charges that as a former U.S. Marine, Amir Mirzaei Hekmati received special training and served at U.S. military bases in Iraq and Afghanistan before heading to Iran for his alleged intelligence mission.

The radio report did not say when the verdict was issued. Under Iranian law, he has 20 days to appeal.

Hekmati, 28, was born in Arizona. His family is of Iranian origin. His father, who lives in Michigan, said his son is not a CIA spy and was visiting his grandmothers in Iran when he was arrested.

The U.S. State Department has demanded his release.

The court convicted him of working with a hostile country, belonging to the CIA and trying to accuse Iran of involvement in terrorism, Monday's report said.


http://www.google.com/hostednews/ap/art ... ed6594998b
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Re: Coming Soon - War with Iran?

Postby Byrne » Tue Jan 10, 2012 9:19 pm

a bit of background....

A new Reserve currency to challenge the dollar – What’s really going on in The Straits of Hormuz.
By Golem XIV on January 9, 2012 in latest

A little over a year ago on 1st November 2010 I wrote what I called “…a little bit of scurrilous speculation.” In it I speculated that an unintended consequence of QE had been to spur several countries to think very seriously of how they could replace the dollar as their settlement currency for international deals. The Settlement Currency just means the currency both parties agree is stable, internationally trusted and accepted, and in plentiful supply. Which may not be the case for their own currencies . I wondered if doubts about the longer term stability of the dollar and of US debt levels, was combining with a political desire in China and perhaps other countries as well to challenge the US via the dollar with the eventual goal of creating an alternative reserve currency backed by gold rather than, as the dollar now is, by debt.

Various countries have been buying gold. Russia, China, India have all bought a lot….Which brings me to my speculation. The list of countries accumulating gold is similar to the list of countries that were reported to be talking about the need for a new reserve currency to replace the dollar.

I wonder if those who are seriously thinking of trying to unseat the dollar and create a currency which is backed by something other than debt and is not under the control of America’s corrupt banks and even more corrupt government, are investing in gold as a precursor to making a real bid for a new currency.


Later, in Making the New Sub Prime Part 2 I looked at the growing network of bilateral agreements in major trade deals gradually replacing the dollar as a settlement currency.

Being a ‘Settlement’ currency is not quite the same as being a ‘Reserve Currency’ like the dollar, but it a major step in that direction. It is, in fact, a very large step. Which currency large international trades are done in matters. It is a fact that in 2000, Iraq signed an agreement to sell its oil, all its oil, in Euros. Iran was contemplating doing the same at around the same time. The Iraq decision involved the large French bank PNB-Paribas. France was not one of those who supported the war and Washington led a hate campaign vilifying the French. The worry was that a switch from dollar to Euro settlement might gain momentum. Any major move away from dollar settlement would cripple the US.

In January of this year the India Times reported that India was talking to Iran about moving out of dollar settlements so as to be able to buy Iranian oil despite a US embargo. India said it was discussing settling in Gold. Remember, India has just signed a settlement agreement with China to use the Yuan.


A very good summary of recent news by ZeroHedge suggests I may have been on the right track. And recently the pace has picked up.

China and Russia have been trading directly in their own currencies and using them both interchangeably for settlement for over a year. As the The China Daily article reports,

China is allowing greater use of its currency for cross-border transactions to reduce reliance on the US dollar, after Premier Wen Jiabao said in March he was “worried” about holdings of assets denominated in the greenback.

Then on 26th December 2011 Bloomberg reported,

Japan and China will promote direct trading of the yen and yuan without using dollars and will encourage the development of a market for companies involved in the exchanges, the Japanese government said.

China is Japan’s largest trading partner. Japan will also start in 2012 buying Chinese debts. How much Dollar debt will either of them buy? They have both already been buying less.

Two days later (Dec.28th) the Iranain news service reported,

Iran and China on Wednesday signed two agreements on expansion of trade ties and joint investments.

These trades too will not be settled in Dollars or in Euros.

Three days after that The China Post reported that on the last day of 2011, US President Obama had signed a new law in which

U.S. imposes sanctions on banks dealing with Iran….Sanctioned institutions would be frozen out of U.S. financial markets.

Sounds tough. A bit like sending an aircraft carrier to the Straits of Hormuz. But as the article went on to report, with only barely concealed delight, the threat may be as hollow as the dollar itself. The law comes with exemptions which may eventually highlight America’s plight rather than its might.

The sanctions target both private and government-controlled banks – including central banks – and would take hold after a two- to six-month warning period, depending on the transactions, a senior Obama administration official said.

Under the law, the president can move to exempt institutions in a country that has significantly reduced its dealings with Iran and in situations where a waiver is in the U.S. national security interest or otherwise necessary for energy market stability. He would need to notify Congress and waivers would be temporary, but could be extended.


And as if to make the point, only a couple of days after this on Jan 7th, came the news that,

Iran and Russia replaced the U.S. dollar with their national currencies in bilateral trade, Iran’s state-run Fars news agency reported, citing Seyed Reza Sajjadi, the Iranian ambassador in Moscow.

So now almost none of Iran’s oil will be traded in Dollars.

India and Japan have also recently agreed a 15 billion dollar currency exchange. This will tie their two currencies closer together.

The list of countries and trades no longer using the dollar for settlement for their trade is now considerable. How close are we to reaching the tipping-point where it no longer makes sense for nations to use dollars and makes more sense for them, both economically and politically, to use the network of currencies tied to the Yuan? When we reach that point the Yuan becomes in reserve currency in all but name.

China, India, Russia and Iran are all large holders of physical gold and most of them are also large producers of it. None of them are firm allies of the US. They all have long term relations with each other. All of them have expressed oncercern over US debts and printing. None of them will like QE3, nor Euro printing, when they both arrive later this year.

I think the stand-off with Iran in the Straits of Hormuz over sanctions is as much to do with the moves to replace the dollar as anything else. The stand off is as much with China and its allies as it is specifically with Iran. The US is testing China’s nerve and the solidity of its network of bilateral currency settlement agreements. We are seeing military power deployed to counter economic power. I think the US will lose. Depending on the nature of its loss we could see a precipitate decline in the standing of the dollar as global reserve currency.

2012 could see the beginning of large scale defections from the dollar settlement currency. Which would in turn have massive, perhaps even catastrophic consequences for how the world perceives what is an acceptable level of debt for the US. What is acceptable when you have the global reserve currency is quite different from what is acceptable when you don’t.

And the reverse is also true. If China can transform the netwrok of bilateral agreements which centre upon China and the Yuan, in to becoming accepted as a de facto reserve currency, then for those, like me, who wonder how China can possibly avoid a hard landing as its bad bank and property bubble deflates faster and faster, look no further.

There is no denying China has an absolutely massive bad debt crisis fermenting. Every one of its banks is gagging on bad loans made to every one of China’s regional governments. Trillions of Yuan worth of loans which will not be repaid, on property and land valued at hugely inflated but now defaulting prices. But if China can become a rival and rising reserve currency at the centre of a new and growing collection of trading partners then China can and will bury the debts in a a mass unmarked grave somewhere in its hinterland.

At the moment when America is seen as being no longer the pre-eminant reserve currency and its debt load is re-considered accordingly, China and its debt load will go the other way. America and its currency risk being seen as too rotted by debt to be trusted and it’s claims of economic growth seen as fake, empty, paper-based, accountancy-conjured growth. The Dollar and America itself risk being seen as the fiat currency and fiat nation par excellence .While China and the Yuan will be seen as backed by sold gold and real growth.

One more question to ask in all this is – how far have the big banks and brokerages managed to turn even gold and silver (at least gold and silver held in the West) in to another fiat currency? Gold and bullion bugs amoung you might argue the question makes no sense. But consider re-hypothecation. How much gold and silver has been pledged and re-pledged, hypothecated and re-hypothecated? How many more paper contracts for and claims upon gold and silver exist above and beyond the amount of actual physical gold and silver? After all gold and silver are the ultimate in ‘good’ assets which counterparties will happily accept. So it seems likely to me that gold and silver (or contracts for them) will have been in demand in those repo and hypothecation markets. If so then I wonder how many conflicting and contesting claims will surround every ounce of gold and silver in the West when investors start demanding to see their ‘investment’.

I think the big old sterling silver coin may already have dropped for some investors. That is why prices for physical silver are surging above the price for paper claims on silver. I think some traders are getting nervous about buying paper claims on silver and now want only the metal itself. They suspect that in the end, if you have only a paper claim or contract for, silver that is exaclty all you will ever have – the paper. Only those with the actual metal in their hands, will get what they paid for. I think there is a fiat, paper currency version of gold and silver floating around and parasitising the metals themselves. Those who own that paper stuff may get…well … stuffed.

http://www.golemxiv.co.uk/2012/01/a-new ... of-hormuz/


see also the interesting comments...
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Re: Coming Soon - War with Iran?

Postby smiths » Tue Jan 10, 2012 11:10 pm

Hyperinflation Comes To Iran
Hyperinflation has struck again, this time at ground zero of the most sensitive geopolitical conflict in ages: Iran. EA WorldView reports:

An EA source reports that a relative in Tehran ordered a washing machine for 400,000 Toman (about $240) this week. When he went to the shop the next day, he was told that --- amidst the currency crisis and rising import costs --- the price was now 800,000 Toman (about $480). Another EA source says that the price of an item of software for a laptop computer has tripled from 50,000 Toman to 150,000 Toman within days.

And so the opportunity cost for the Ahmedinejad regime to preserve its status quo gradually grinds to zero, as the entire economy implodes (courtesy of a few strategic financially isolating decisions) making further escalation virtually inevitable, in a 100% replica of the US-planned Japanese escalation that led to the Pearl Harbor attack, and gave America the green light to enter the war.

http://www.zerohedge.com/news/hyperinflation-comes-iran
the question is why, who, why, what, why, when, why and why again?
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Re: Coming Soon - War with Iran?

Postby Nordic » Wed Jan 11, 2012 2:08 am

http://www.rawstory.com/rs/2012/01/09/p ... ing-nukes/

Panetta admits Iran not developing nukes

By Stephen C. Webster
Monday, January 9, 2012

Topics: leon panetta ♦ nuclear weapon ♦ nuclear weapons

U.S. Defense Secretary Leon Panetta let slip on Sunday the big open secret that Washington war hawks don’t want widely known: Iran is not developing nuclear weapons.

Appearing on CBS’s Face the Nation on Sunday, Panetta admitted that despite all the rhetoric, Iran is not pursuing the ability to split atoms with weapons, saying it is instead pursuing “a nuclear capability.”

That “capability” falls in line with what Iran has said for years: that it is developing nuclear energy facilities, not nuclear weapons.

“I think the pressure of the sanctions, the diplomatic pressures from everywhere, Europe, the United States, elsewhere, it’s working to put pressure on them,” Panetta explained on Sunday. “To make them understand that they cannot continue to do what they’re doing. Are they trying to develop a nuclear weapon? No. But we know that they’re trying to develop a nuclear capability, and that’s what concerns us. And our red line to Iran is, do not develop a nuclear weapon. That’s a red line for us.”


Dumbass. Somebody's probably taking the thumbscrews to him today.

But if you turn on our "news", all you'll see is useless primary bullshit. CNN took five hours tonight to tell us two words: "Romney won". FIVE HOURS.
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