Threatening Iran

July 23, 2009 by · Leave a Comment 

By Paul Craig Roberts, Countercurrents.org

When Japan attacked Pearl Harbor, Japan did not spend years preparing her public case and demonstrating her deployment of forces for the attack. Japan did not make a world issue out of her view that the US was denying Japan her role in the Pacific by hindering Japan’s access to raw materials and energy.

Similarly, when Hitler attacked Russia, he did not preface his invasion with endless threats and a public case that blamed the war on England.

These events happened before the PSYOPS (Psychological Operations) era. Today, America and Israel’s wars of aggression are preceded by years of propaganda and international meetings, so that by the time the attack comes it is an expected event, not a monstrous surprise attack with its connotation of naked aggression.

The US, which has been threatening Iran with attack for years, has passed the job to Israel. During the third week of July, the American vice president and secretary of state gave Israel the go-ahead. Israel has made great public disclosure of its warships passing through the Suez Canal on their way to Iran. “Muslim” Egypt is complicit, offering no objection to Israel’s naval forces on their way to a war crime under the Nuremberg standard that the US imposed on the world.

By the time the attack occurs, it will be old hat, an expected event, and, moreover, an event justified by years of propaganda asserting Iran’s perfidy.

Israel intends to dominate the Middle East. Israel’s goal is to incorporate all of Palestine and southern Lebanon into “Greater Israel.” The US intends to dominate the entire world, deciding who rules which countries and controlling resource flows.

The US and Israel are likely to succeed, because they have effective PSYOPS. For the most part, the world media follows the US media, which follows the US and Israeli governments’ lines. Indeed, the American media is part of the PSYOPS of both countries.

According to Thierry Meyssan in the Swiss newspaper Zeit-Fragen, the CIA used SMS or text messaging and Twitter to spread disinformation about the Iranian election, including the false report that the Guardian Council had informed Mousavi that he had won the election. When the real results were announced, Ahmadinejad’s reelection appeared to be fraudulent.

Iran’s fate awaits it. A reasonable hypothesis to be entertained and examined is whether Iran’s Rafsanjani and Mousavi are in league with Washington to gain power in Iran. Both have lost out in the competition for government power in Iran. Yet, both are egotistical and ambitious. The Iranian Revolution of 1979 probably means nothing to them except an opportunity for personal power. The way the West has always controlled the Middle East is by purchasing the politicians who are out of power and backing them in overthrowing the independent government. We see this today in Sudan as well.

In the case of Iran, there is an additional factor that might align Rafsanjani with Washington. President Ahmadienijad attacked former President Rafsanjani, one of Iran’s most wealthy persons, as corrupt. If Rafsanjani feels threatened by this attack, he has little choice but to try to overthrow the existing government. This makes him the perfect person for Washington.

Perhaps there is a better explanation why Rafsanjani and Mousavi, two highly placed members of the Iranian elite, chose to persist in allegations of election fraud that have played into Washington’s hands by calling into question the legitimacy of the Iranian government. It cannot be that the office of president is worth such costs as the Iranian presidency is not endowed with decisive powers.

Without Rafsanjani and Mousavi, the US media could not have orchestrated the Iranian elections as “stolen,” a n orchestration that the US government used to further isolate and discredit the Iranian government, making it easier for Iran to be attacked. Normally, well placed members of an elite do not help foreign enemies set their country up for attack.

An Israeli attack on Iran is likely to produce retaliation, which Washington will use to enter the conflict. Have the personal ambitions of Rafsanjani and Mousavi, and the naive youthful upper class Iranian protesters, set Iran up for destruction?

Consult a map and you will see that Iran is surrounded by a dozen countries that host US military bases. Why does anyone in Iran doubt that Iran is on her way to becoming another Iraq, Afghanistan, and Pakistan, in the end to be ruled by oil companies and an American puppet?

The Russians and Chinese are off balance because of successful American interventions in their spheres of influence, uncertain of the threat and the response. Russia could have prevented the coming attack on Iran, but, pressured by Washington, Russia has not delivered the missile systems that Iran purchased. China suffers from her own hubris as a rising economic power, and is about to lose her energy investments in Iran to US/Israeli aggression. China is funding America’s wars of aggression with loans, and Russia is even helping the US to set up a puppet state in Afghanistan, thus opening up former Soviet central Asia t o US hegemony.

The world is so impotent that even the bankrupt US can launch a new war of aggression and have it accepted as a glorious act of liberation in behalf of women’s rights, peace, and democracy.

Paul Craig Roberts was Assistant Secretary of the Treasury in the Reagan administration. He is coauthor of The Tyranny of Good Intentions.He can be reached at: PaulCraigRoberts@yahoo.com

11-31

Uyghurs & Chinese Can Live Together in Peace in East Turkestan

July 23, 2009 by · Leave a Comment 

By Harun Yahya

www.harunyahya.com
www.eastturkestan.net

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Ethnic Uighurs and Han Chinese Muslims pray together during Friday prayers at Yang Hang mosque in the city of Urumqi in China’s Xinjiang Autonomous Region July 17, 2009.       

REUTERS/David Gray

The efforts being made today to stir up ethnic conflict in East Turkestan are extremely dangerous. Our Muslim brothers in East Turkestan have been subjected to various difficulties for the last 60 years or so, but have never turned to violence and conflict. The Uyghur Turks are a noble people, known for their good manners, honesty, fortitude, reconciliatory natures, obedience to the state, loyalty and devotion. These fine people possess excellent virtues, such as forgiveness, loving peace, lovableness, respect for different ideas and beliefs and judging people according to their moral values rather than their race. There has therefore never been any conflict based on ethnicity with the other peoples living in the region, especially the Han Chinese, and neither will there be any in the future. The Uyghur Turks want a climate in which everyone can live together in peace and security, respecting the right to life of everyone in East Turkestan, no matter what their religion or ethnic origin. Some of the main ways in which this can be brought about are as follows:

1. It is obvious that the Uyghur Turks favor peace and security. But peace in the region can only be ensured if the security of our Uyghur brothers is guaranteed. The international community has important responsibilities in that respect. The support of international societies and organizations is essential if it is to be possible for our Uyghur Turk and Chinese brothers are to be able to live in peace. Democratic pressure from these organizations, especially the UN, on the Chinese government, will ensure that the administration follows a line that is more peaceable toward the problems and legitimate demands of our Uyghur brothers and respects their human rights.  When the necessary encouragement and direction is provided, when the international community acts as a guarantor, it will be easier to establish peace in the region.

2. It is natural for China to be keen to protect its national and economic interests. But this cannot be established through oppression and aggression. The path that will make China prosperous and strengthen its economic and social regeneration lies in a conception that respects human rights, is democratic and loving, and that defends freedom of ideas and belief. The only solution that can calm Chinese fears, such as lack of access to energy resources, economic losses, loss of territory or fragmentation is the foundation of the Turkish-Islamic Union. The Turkish-Islamic Union will establish an environment in which borders are lifted, there is freedom of trade and investment and in which all communities have equal access to energy resources. In this way, China will be able to spread its investments over a wide area from Tanzania to Indonesia and sell its good across a wide territory, and Muslims will be able to invest in China on a large scale. China will regenerate rapidly with the establishment of the Turkish-Islamic Union, will be spared from having to use its citizens as a cheap labor force and will enjoy abundance and plenty all over. 

3. Islam is a religion of peace. All forms of violence are sinful in Islam. In the Qur’an, Allah commands Muslims to be forgiving. A Muslim who abides by the Qur’an and follows our Prophet (s) has a duty to be peace-loving, affectionate, loving, compassionate, patient and moderate. The moral values of the Qur’an oblige Muslims to control their anger, to respond to evil with good, to always speak and behave in a pleasant manner, to forgive under even the most difficult circumstances and to behave justly, even if that conflicts with their own interests. The spread of and learning about Islamic moral values is a great benefit for China. If the Chinese government is concerned about the Han Chinese taking in action in terror attacks and wishes to avoid anarchy and violence, then it must encourage the teaching and dissemination of Islamic moral values. In a China inhabited by people who live by the moral values of the Qur’an there will be no need for military occupation and security measures. The unrest and unease will come to a complete stop. The result will be a society made up of individuals who trust and respect one another, treat one another with understanding, are respectful of and loyal to the state and who all live in peace, that spends its money on the wealth of its own citizens instead of military investment, without investing millions of dollars in armaments and employing thousands of security personnel. And the order and equilibrium sought by China will be established naturally.

4. Our Uyghur brothers’ demands for humane conditions, to live freely according to their religion, to be able to worship as they wish, to protect their own culture and maintain their own existence are all justified and human ones. The most effective way of bringing these about is for the Uyghur people to make a cultural leap forward, to improve themselves with an anti-materialist and anti-Darwinist education, to increase their economic strength, and strengthen themselves both materially and spiritually. The Turkic Uyghur people must not forget that they are the most important representatives of Muslims and Islam in China. They must act as models to the Chinese people with their good manners, nobility, modesty, balance and moderation. An Uyghur people who are culturally advanced and materially stronger will clearly have wide opportunities to defend their own rights and also to describe and spread the moral values of Islam. By Allah’s leave, the future of an Uyghur society that loves Allah, protects its own national culture, is anti-Darwinist and anti-materialist, whose members love one another, which perfectly implements Qur’anic moral values and supports peace, love, tolerance and compassion, will be a very bright and excellent one.

The time we are living in is a very holy one, in which Hazrat Mahdi (as) will appear and in which the Prophet Jesus (as) will return to Earth. The time has now come when war and conflict will come to an end, when armament will come to an end, when people will love and embrace one another as brothers, when they will trust one another and when moral virtues will reign. This is the destiny of Allah. That destiny will also manifest itself in China, and this will be a time when Chinese and Uyghurs live together in friendship, when they all attain wealth, and when they build a bright civilization with joy and enthusiasm.

11-31

How the Serenity of Swat Was Vandalized

July 16, 2009 by · Leave a Comment 

By Javed Akbar, The Canadian Charger

Nightmarish scenes in the valley of Swat in northern Pakistan – a major tourist attraction known for its ‘indescribable beauty and serenity’ mark the latest stage of that nation’s crisis, brought to a boil by the U.S. escalation of its war in Afghanistan, which is spilling across the border.

But the turmoil is also a sign of the deepening contradictions of Pakistani politics following the downfall of the U.S.-backed strongman, Gen. Pervez Musharraf, last year amid growing unrest.

The rise of extremism, militancy and the Taliban are a reaction to the American-led “war on terror” and the occupation of Afghanistan. So big has been the displacement of people (1.7 million according to the UN) due to the latest military operations in Swat that UN officials are already comparing the unfortunate situation prevailing in Pakistan with that of Rwanda, the Central African country where genocide in 1994 forced large-scale dislocation of communities.

The resulting disequilibrium of Pakistani society has as its latest consequence an increasing influx of the internally displaced people of Swat.

The refugees from Swat are victims of a Pakistani Army offensive, backed by the U.S., against forces of the Taliban, which operate in both Pakistan and Afghanistan. Under pressure from the U.S., the Pakistani military broke a ceasefire arrangement with the Taliban and carried out a scorched-earth assault — with the excuse that this is the only way to flush out Taliban fighters.

But the civilian population is paying a terrible price. The Pakistani military will never be able to win over those people who actually experienced what is happening on the ground. And certainly those people are not Taliban supporters either, since they have experienced their terror.

The U.S. has created the bizarre new moniker “Af/Pak” as a way to cover over its expansion of the war from Afghanistan into Pakistan. Building consent for this expansion has been what all the State Department, Pentagon and media propaganda has been about before the onslaught of this military expedition.
Leading counterinsurgency theorist John Nagl, an Iraq combat veteran and now the head of the Center for a New American Security, writes that “there is a growing realization that the most likely conflicts of the next fifty years will be irregular warfare in an ‘Arc of Instability’ that encompasses much of the greater Middle East and parts of Africa and Central and South Asia.”

That goes a long way towards explaining U.S. strategic planning.

The U.S. wants to wind down its occupation in Iraq, which it sees as a distraction, and push ahead with a much larger scenario — ‘in the arc of instability’ from North Africa to the Middle East to South and Central Asia. The U.S. is gearing up for, in the shocking words of Nagl, 50 years of warfare in this area.

Such imperial-style strategic concepts echo the “Great Game” of rivalries in the region over who’s going to control the oil and natural gas resources. Beyond that geopolitical battle, the military industrial complex has a material interest in perpetual warfare.

This is the new Great Game involving the U.S., Russia, China, India, Pakistan and Iran. It’s all about the resources that we have been observing since the beginning of the war in 2001. The U.S. had planned a pipeline to go from Central Asia through the Pakistani province of Balochistan. Planners saw Afghanistan as strategically important in these designs. The strategic importance was considered high enough to open a new front on its open-ended “war on terror.”

Despite eight years of war, occupation and counter-insurgency, and seeing that war and occupation aren’t working and are, in fact, backfiring, U.S. thinking doesn’t seem to be shifting at all. The Obama administration is certainly trying to repackage its essential continuity with the Bush administration’s policy in Afghanistan and Pakistan.

But there isn’t a whole lot of finessing that needs to be done to sell this to the American public, since there is a widespread impression that the Afghan war is a moral war, a necessary response to the 9/ll attackers, and that Pakistan is an untrustworthy and reluctant ally that is crawling with militants.
The real alternative for President Obama should be to maintain a deterrent posture while immediately accelerating diplomacy to address legitimate Muslim concerns, from a Palestinian state to genuine progress on Kashmir.

By not recognizing that the unresolved Kashmir issue is a cause for promoting militancy in the region, Washington has opted for selective engagement with the underlying causes of militancy and terrorism in the region.

The anti-war movement should not let Obama continue this imperial policy of aggression into Afghanistan and Pakistan (and potentially many other states).

The heart of the crisis is that this has become a multiple-front war, and the main theater has spawned a second, more diffused arena for potentially disastrous outcomes.

Meanwhile the sufferings of the people of the Northern Pakistan continue, with the rest of country adversely affected due to a war imposed upon its people.
Barack Obama has been bombing Pakistan since the third day of his presidency, and on the ground the Pakistani army has been acting as his country’s mercenaries.

* Javed Akbar is a freelance writer based in Toronto.

World’s Youth Leaders Gather to Address the Challenges of Militarization, Nuclear Weapons and the Misuse of Religion

July 16, 2009 by · Leave a Comment 

Kathmandu_street
File:  A busy street in Kathmandu.

(Kathmandu, July 10, 2009)  The International Summit of Religious Youth Leaders on Disarmament for Shared Security was inaugurated by His Excellency the President, Dr. Ram Baran Yadav, in Kathmandu on 10 July 2009.  Organized by the World Conference of Religions for Peace, the world’s largest multi-religious organization accredited with the United Nations and headquartered in New York, the Summit brought together approximately 100 Nepali and 50 international religious and civil society leaders from 25 countries.[1]   Other prominent participants in the Summit included Mr. Kul C. Gautam, former UN Assistant Secretary-General and former Deputy Executive Director of UNICEF; Mr. Taijiro Kimura, Director, UN Regional Centre for Peace and Disarmament in Asia and the Pacific; Rev. Kyoichi Sugino, Assistant Secretary General, the World Conference of Religions for Peace; and Ms. Stellamaris Mulaeh, International Coordinator, Religions for Peace Global Youth Network.

Globally nearly 1,000 people a day die from various kinds of weapons.  Military spending in 2008 reached a new high of $1.464 trillion, even as the global economy faltered and the majority of the world’s population continued to live in extreme poverty.   Four billion dollars worth of small arms are traded legally each year, while another $1 billion is traded illegally.  The world is confronted with proliferation of nuclear weapons, continued use of cluster munitions, landmines and other conventional weapons, rising military expenditures at the expense of development, and the misuse of religion in support of violence and war.

His Excellency Dr. Ram Baran Yadav, the President of Nepal, stated that “We need to harness the power of the world’s religions to counter violence with the message of peace, love and compassion, especially among the youth of our nations. I want to compliment the Religion and Peace Academy of Nepal (RAPAN) and the World Conference of Religions for Peace (WCRP) for convening a very timely ‘International Summit of Religious Youth Leaders on Disarmament for Shared Security’ in Kathmandu.”

Mr. Tadatoshi Akiba, Mayor of Hiroshima, Japan, and president of Mayors for Peace, a global coalition of mayors from 2,926 cities in 134 countries and regions, stated in his message that “The possibility of proliferation and the use of nuclear weapons are growing, and the Non-Proliferation Treaty (NPT) is on the verge of collapse.  Mayors for Peace welcomes the possibility of working with the world’s religious communities and young people through the Religions for Peace global network to promote our 2020 Vision, a program to eliminate all nuclear weapons by the year 2020, the 75th anniversary of the atomic bombings in Hiroshima and Nagasaki.” 

Mr. Kul Gautam, former UN Assistant Secretary-General and former Deputy Executive Director of UNICEF noted that “Youth are the soul of the society.  They are essential to transform culture of violence we are seeing at present to culture of peace, which is an intrinsic and inherent part of Nepali culture.  Based on my long association with Religions for Peace, I am confident that this conference will help advance a powerful campaign for peace and non-violence through multi-religious cooperation in Nepal and around the world.” He urged the World Conference of Religions for Peace to support a massive campaign to rollback violence in Nepal as a direct follow-up of this conference in Nepal, and consider similar campaigns in other post-conflict countries in the world.

Rev. Kyoichi Sugino, Assistant Secretary General of the World Conference of Religions for Peace, said, “This Summit intends to further unleash the positive socially transformative power of religion, underline the crucial role of young people in shaping our world, and highlight the added value of multi-religious cooperation and multi-stakeholder approach to disarmament for shared security, development and peace.”

Ms. Stellamaris Mulaeh, International Coordinator, Religions for Peace Global Youth Network said, “This Summit is a great opportunity for religious youth leaders to discuss major challenges to shared security and develop action plans.  Based upon these, Religions for Peace youth leaders from national, regional and global networks will launch a campaign on reducing military expenditures to advance shared security.”

[1] Afghanistan, Argentina, Cambodia, Canada, China, Czech Republic, Democratic Republic of Congo, France, Georgia, Greece, India, Indonesia, Israel, Japan, Jordan, Kenya, Malaysia, Nepal, New Zealand, Pakistan, Peru, Philippines, Singapore, Sri Lanka and the US.  

11-30

CHINA: Uighur Uprising

July 9, 2009 by · Leave a Comment 

Riot in Urumqi: At least three people were killed and more than 20 injured after an ethnic minority clashed with police in China’s far north-western province of Xinjiang. The disturbances come after a year of rising tensions between the dominant Han Chinese authorities and the Uighur ethnic minority. The clashes in Urumqi on Sunday night between police and a 3,000-strong crowd from the Uighur Muslim ethnic minority left burned-out cars and buses and several smashed shop-fronts. — Peter Foster in Beijing

Travellers in today’s China are often surprised to discover that the country has a sizeable Muslim population. According to the Chinese government, there are more than 20 million Muslims who live in all parts of the country. Others say the number may even be higher. Many Chinese towns have mosques. The call to prayer can be heard on Fridays from Beijing to Yunnan in the south, and especially in the oases of arid Xinjiang in the far northwest. But there are subtle differences among the communities that follow Islam in China — cultural, linguistic and nationalist nuances that formed over centuries of an often-troubled history. Muslims have lived in the Middle Kingdom from just after the death of the Prophet Muhammad in 632 AD. – Backgrounder, CBC News

11-29

China’s Rodney King Riots

July 9, 2009 by · Leave a Comment 

Vivian Po, New America Media

New America Media Editor’s Note: Tensions between Muslim Uighurs and majority Han Chinese escalated July 5 when a peaceful protest over the deaths of two Uighur workers in Southern China turned into riots, leaving at least 156 dead and more than 1,000 injured. China expert Dru C. Gladney, Ph.D., says the riots reflect longtime ethnic tensions caused by unequal resource distribution and employment. Gladney is president of the Pacific Basin Institute and professor of anthropology at Pomona College. His most recent book is “Dislocating China: Muslims, Minorities, and Other Subaltern Subjects” (2004). He was interviewed by NAM reporter Vivian Po.

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What was your first reaction when you learned about the riots in Xin Jiang?

I think it is quite remarkable. Mostly, incidents have taken place in the south of the province, so this is quite extraordinary to have such a high number of people involved in this many casualties, in the downtown district of Urumqi. This place has really a small Uighur population, about 11 to12 percent of the entire city population. Urumqi has never been a Uighur city. It is just one small district. I understand there is a sympathy riot in support of them in Kashgar, so it is interesting to see whether it will spread to the rest of the region.

What really caused the riot?

Clearly, there is a lot of tension underneath the surface. Though a lot of people make references to the uprising in Tibet, I think a better analogy is what happened in the Rodney King riots in Los Angeles. There was a terrible beating of Rodney King, but there were so many other tensions in the city, racial tensions that were ignited by this incident. I think the Tibetan situation is different. It was much more internationally focused, monks were involved, and religion was a factor.

Is religion playing a part in this riot?

It is not. In the past, the problems of the region have been attributed to Islam and to complaints about religious freedom, independence, separatism and even jihad. But none of them seems to be an issue here. There are many complaints from the Uighurs about wanting more roles in government, and more freedom to practice religion, but that is not what prompted this riot.

The Uighurs organized the protest as a response to a fight that took place at a factory in Guangdong, after a Han Chinese man who used to work there accused Uighur men of raping two Han Chinese girls. How did relations between the Han and the Uighurs in China’s labor market contribute to this riot?

Labor is a very important issue in this whole situation. I wouldn’t be surprised if the Han Chinese man who accused the Uighurs of rape did it because he was angry over losing his job. Uighurs from Xin Jiang had jobs but he couldn’t get a job, so he made these allegations about rape that are totally unsubstantiated.

And Uighurs in Xin Jiang have complained that they get squeezed from both ends of the labor market, as both the skilled jobs go to the Han and then the unskilled and low-wage jobs go to the Han migrants, so Uighurs are really stuck in the middle. And when they go outside of the region to look for work, they are discriminated against and are not protected by the government. That was what a lot of the protests in Urumqi were about.

What is the Chinese government’s approach to ethnic minorities in China?

The policy and constitution in China are extremely enlightened and have some very positive policies for minorities, but the reality is that there is discontent. It is clear that these people have some legitimate concerns. You do not get that many people out on the streets if they are satisfied with their situations. So there are real problems.

How did technology play a role in the riot?

The role of the Internet in fostering Uighur national consciousness is very important. Now, Twitter and cell phones, YouTube and Youku, all this technology has made the region much more accessible. In the past, the region was very cut off and in some ways less accessible than Tibet because Tibet was a place people were interested in and people knew the history. Uighurs have always been isolated, and nobody really knew or cared about them. Now through technology, international organizations of exiled Uighur groups, as well as the media attention that the Uighur detainees in Guantanamo Bay have gotten, it has become a global issue.

The Chinese government claims political activist Rebiya Kadeer masterminded the riots. What do you think?

I think it is true that several international organizations, not just Rebiya’s, were engaged in this issue, but to suggest that any one of them has masterminded the event in Xin Jiang is very difficult to prove. I think the Chinese government is taking a cue from the Iranian situation, where they blamed the Americans for inciting people to go into the streets.

How would you compare the ethnic conflicts in China and those in the United States?

The Rodney King riots were an example of these extraordinary racial tensions. Hopefully we won’t have to wait for a Uighur to become president or premier of China before racial tensions improve. They run very deep. We also have the issue of the indigenous people here, like the Native Americans and their concerns, and many have similar problems such as joblessness and high mobility.

Is there any solution to the ethnic conflicts?

Uighurs are demanding a greater voice in their own affairs and greater representation. There are Uighurs in the government but they are handpicked by the party, so their real concerns aren’t being addressed. There are some policy issues the government could address, such as limiting Han migration, ensuring that Uighurs are given equal opportunities or even greater compensation for the mineral wealth that is extracted from their province. Residents of Xin Jiang should get some special privileges. Also, the Chinese have the “hukou” (household) residential privilege system where residents get certain benefits, such as education, and Uighurs do not feel they are getting those benefits in their autonomous region.

What do you think about the way China’s state-sanctioned media has approached covering the riots?

I find it quite striking that they immediately reported the uprising in the region. I think they’ve recognized the fact that they can’t keep a lid on the news anymore because of cell phones and easy access to media outlets. But you also see their bias. It is really extraordinary that the level of animosity between the Uighur and the Han population exhibits itself so clearly, so you can actually see Uighur men kicking a Han Chinese girl on TV. I am concerned that the reason this was shown on Chinese television, as opposed to a policeman beating protesters, was deliberate and can be very counterproductive.

11-29

The American Empire Is Bankrupt

June 27, 2009 by · Leave a Comment 

By Chris Hedges

This week marks the end of the dollar’s reign as the world’s reserve currency. It marks the start of a terrible period of economic and political decline in the United States. And it signals the last gasp of the American imperium. That’s over. It is not coming back. And what is to come will be very, very painful.

Barack Obama, and the criminal class on Wall Street, aided by a corporate media that continues to peddle fatuous gossip and trash talk as news while we endure the greatest economic crisis in our history, may have fooled us, but the rest of the world knows we are bankrupt. And these nations are damned if they are going to continue to prop up an inflated dollar and sustain the massive federal budget deficits, swollen to over $2 trillion, which fund America’s imperial expansion in Eurasia and our system of casino capitalism. They have us by the throat. They are about to squeeze.

There are meetings being held Monday and Tuesday in Yekaterinburg, Russia, (formerly Sverdlovsk) among Chinese President Hu Jintao, Russian President Dmitry Medvedev and other top officials of the six-nation Shanghai Cooperation Organization. The United States, which asked to attend, was denied admittance. Watch what happens there carefully. The gathering is, in the words of economist Michael Hudson, “the most important meeting of the 21st century so far.”

It is the first formal step by our major trading partners to replace the dollar as the world’s reserve currency. If they succeed, the dollar will dramatically plummet in value, the cost of imports, including oil, will skyrocket, interest rates will climb and jobs will hemorrhage at a rate that will make the last few months look like boom times. State and federal services will be reduced or shut down for lack of funds. The United States will begin to resemble the Weimar Republic or Zimbabwe. Obama, endowed by many with the qualities of a savior, will suddenly look pitiful, inept and weak. And the rage that has kindled a handful of shootings and hate crimes in the past few weeks will engulf vast segments of a disenfranchised and bewildered working and middle class. The people of this class will demand vengeance, radical change, order and moral renewal, which an array of proto-fascists, from the Christian right to the goons who disseminate hate talk on Fox News, will assure the country they will impose.

I called Hudson, who has an article in Monday’s Financial Times called The Yekaterinburg Turning Point: De-Dollarization and the Ending of America’s Financial-Military Hegemony. “Yekaterinburg,” Hudson writes, “may become known not only as the death place of the czars but of the American empire as well.” His article is worth reading, along with John Lanchester’s disturbing exposé of the world’s banking system, titled “It’s Finished,” which appeared in the May 28 issue of the London Review of Books.

“This means the end of the dollar,” Hudson told me. “It means China, Russia, India, Pakistan, Iran are forming an official financial and military area to get America out of Eurasia. The balance-of-payments deficit is mainly military in nature. Half of America’s discretionary spending is military. The deficit ends up in the hands of foreign banks, central banks. They don’t have any choice but to recycle the money to buy U.S. government debt. The Asian countries have been financing their own military encirclement. They have been forced to accept dollars that have no chance of being repaid. They are paying for America’s military aggression against them. They want to get rid of this.”

China, as Hudson points out, has already struck bilateral trade deals with Brazil and Malaysia to denominate their trade in China’s yuan rather than the dollar, pound or euro. Russia promises to begin trading in the ruble and local currencies. The governor of China’s central bank has openly called for the abandonment of the dollar as reserve currency, suggesting in its place the use of the International Monetary Fund’s Special Drawing Rights. What the new system will be remains unclear, but the flight from the dollar has clearly begun. The goal, in the words of the Russian president, is to build a “multipolar world order” which will break the economic and, by extension, military domination by the United States. China is frantically spending its dollar reserves to buy factories and property around the globe so it can unload its U.S. currency. This is why Aluminum Corp. of China made so many major concessions in the failed attempt to salvage its $19.5 billion alliance with the Rio Tinto mining concern in Australia. It desperately needs to shed its dollars.

“China is trying to get rid of all the dollars they can in a trash-for-resource deal,” Hudson said. “They will give the dollars to countries willing to sell off their resources since America refuses to sell any of its high-tech industries, even Unocal, to the yellow peril. It realizes these dollars are going to be worthless pretty quickly.”

The architects of this new global exchange realize that if they break the dollar they also break America’s military domination. Our military spending cannot be sustained without this cycle of heavy borrowing. The official U.S. defense budget for fiscal year 2008 is $623 billion, before we add on things like nuclear research. The next closest national military budget is China’s, at $65 billion, according to the Central Intelligence Agency.

There are three categories of the balance-of-payment deficits. America imports more than it exports. This is trade. Wall Street and American corporations buy up foreign companies. This is capital movement. The third and most important balance-of-payment deficit for the past 50 years has been Pentagon spending abroad. It is primarily military spending that has been responsible for the balance-of-payments deficit for the last five decades. Look at table five in the Balance of Payments Report, published in the Survey of Current Business quarterly, and check under military spending. There you can see the deficit.

To fund our permanent war economy, we have been flooding the world with dollars. The foreign recipients turn the dollars over to their central banks for local currency. The central banks then have a problem. If a central bank does not spend the money in the United States then the exchange rate against the dollar will go up. This will penalize exporters. This has allowed America to print money without restraint to buy imports and foreign companies, fund our military expansion and ensure that foreign nations like China continue to buy our treasury bonds. This cycle appears now to be over. Once the dollar cannot flood central banks and no one buys our treasury bonds, our empire collapses. The profligate spending on the military, some $1 trillion when everything is counted, will be unsustainable.

“We will have to finance our own military spending,” Hudson warned, “and the only way to do this will be to sharply cut back wage rates. The class war is back in business. Wall Street understands that. This is why it had Bush and Obama give it $10 trillion in a huge rip-off so it can have enough money to survive.”

The desperate effort to borrow our way out of financial collapse has promoted a level of state intervention unseen since World War II. It has also led us into uncharted territory.

“We have in effect had to declare war to get us out of the hole created by our economic system,” Lanchester wrote in the London Review of Books. “There is no model or precedent for this, and no way to argue that it’s all right really, because under such-and-such a model of capitalism … there is no such model. It isn’t supposed to work like this, and there is no road-map for what’s happened.”

The cost of daily living, from buying food to getting medical care, will become difficult for all but a few as the dollar plunges. States and cities will see their pension funds drained and finally shut down. The government will be forced to sell off infrastructure, including roads and transport, to private corporations. We will be increasingly charged by privatized utilities—think Enron—for what was once regulated and subsidized. Commercial and private real estate will be worth less than half its current value. The negative equity that already plagues 25 percent of American homes will expand to include nearly all property owners. It will be difficult to borrow and impossible to sell real estate unless we accept massive losses. There will be block after block of empty stores and boarded-up houses. Foreclosures will be epidemic. There will be long lines at soup kitchens and many, many homeless. Our corporate-controlled media, already banal and trivial, will work overtime to anesthetize us with useless gossip, spectacles, sex, gratuitous violence, fear and tawdry junk politics. America will be composed of a large dispossessed underclass and a tiny empowered oligarchy that will run a ruthless and brutal system of neo-feudalism from secure compounds. Those who resist will be silenced, many by force. We will pay a terrible price, and we will pay this price soon, for the gross malfeasance of our power elite. 

11-27

Minister: Indonesia, Egypt to Boost Trade Cooperation

June 18, 2009 by · Leave a Comment 

Jakarta (ANTARA News) – Foreign Affairs Minister Hassan Wirajuda said the visit of Mohamed Elzorkany, Egypt`s assistant foreign affairs minister for Asia, was aimed at boosting bilateral trade cooperation between the two countries.

The bilateral relations between Egypt and Indonesia was limited to the political field so far, and therefore the ties would be expanded to include economic, social and cultural fields.

“The close political relations between Indonesia and Egypt will be intensified and translated into cooperation in other fields, including trade,” Wirajuda said.
Elzorkany visited Jakarta as parts of his Asian tour which included China, Mongolia, and Malaysia.

During his two-day visit in Indonesia, the Egyptian official held meetings with Foreign Affairs Minister Hassan Wirajuda, Trade Minister Marie Elka Pangestu, and National Education Minister Bambang Sudibyo.

Elzorkany at a dinner reception hosted by the Egyptian ambassador to Indonesia, here on Monday evening, said that Egypt and Indonesia had big potential to intensify the bilateral cooperation in the trade and investment fields.

Indonesia and Egypt had close bilateral relations and both nations had set up a joint commission to improve cooperation in various fields, especially trade and investment, he said.

Egypt which recorded an economic growth at 7.1 percent last year, was a gate to Africa, Europe and other Arab countries, he said, hoping that Indonesia could use his country`s potential to penetrate those regional markets.

The bilateral trade value of the two countries reached US$1.1 billion, with Indonesia enjoyed a surplus of US$900 million.

Egypt`s exports to Indonesia include phosphates, cotton, fruits, and carpets, while its imports from Indonesia are among other things crude palm oil (CPO), rubber, paper, and tires.

Elzorkany believed that the two nations had huge potentials to achieve progress in the future.

Indonesia and Egypt as developing countries also supported each other in various international forum including in G-15, he said.

11-26

Is the U.S. Experiencing its First Brain Drain?

April 2, 2009 by · Leave a Comment 

Courtesy New America Media, Vivek Wadhwa

brain_drain Editor’s Note: When high-skilled immigrants and foreign students completing their degrees in the United States both consider returning to their home countries, it might be a sign that the United States is experiencing its first brain drain in history. NAM contributing writer Vivek Wadhwa has been tracking the effects of globalization on labor markets as a professor at Duke University’s Pratt School of Engineering and Harvard Law School’s Labor and Worklife Program. Immigration Matters regularly features the views of immigration experts and advocates.

The USA has long served as a magnet for the world’s talented scientists, engineers and mathematicians. But, this trend may now be reversing and the United States may be experiencing the first brain drain in its history.

Between 1990 and 2007, the proportion of immigrants in the US labor force increased from 9.3 percent to 15.7 percent, according to the U.S. Census Bureau. Approximately 45 percent of the growth of the workforce over this period consisted of immigrants.

They came for the traditional reasons – education, professional opportunities, a chance at a better life. With them, many of these immigrants brought high levels of education and advanced skills. As a result, immigrants have contributed disproportionately to the most dynamic part of the U.S. economy — the high-tech sector. In Silicon Valley, over 50 percent of the startups over the last decade have had an immigrant as a chief executive or lead technologist. Immigrants have co-founded firms such as Google, eBay, Intel and Yahoo, to name a few.

Now many are going back. While the economic downturn has caused a rise in xenophobia and the enactment of populist legislation to restrict the hiring of foreign nationals by some financial institutions, the economies of India and China have been rising. Some of the most highly skilled workers in American corporations are returning to the lands where they were born and foreign students who would normally be the next generation of U.S. science and engineering workers are buying one-way tickets home.

There are no hard numbers available, but anecdotal evidence suggests a sizeable reverse migration of skilled talent is in progress. Our team of academics at Duke, UC Berkeley and Harvard interviewed hundreds of company executives, surveyed more than 1,000 foreign students and more than 1,000 returnees, and made multiple trips to India and China to understand the trend.

What we learned should alarm policy-makers who are concerned about long-term U.S. competitiveness.

The average age of the skilled workers we located was in the low 30s, and more than 85 percent had advanced degrees — precisely the type of people that the United States needs to fuel economic recovery. Among the strongest factors cited by these ex-immigrants as a reason for coming to the United States were professional and educational development opportunities. Ironically, this was the same reason they returned home. And, they had advanced their careers in the process.

Respondents reported that they have moved up the organizational chart by returning home. Only 10 percent of the Indian returnees held senior management positions in the United States, but 44 percent found jobs at this level in India. Chinese returnees went from 9 percent in senior management in the United States to 36 percent in China. Opportunities for professional advancement were considered to be better at home than in the United States by 61 percent of Indians and 70 percent of Chinese. These groups also felt that opportunities to start a business were significantly better in their home countries.

Surprisingly, visa status was not the most important factor determining their decision to return home — even U.S. citizens and permanent residents were returning home. Three out of four indicated that considerations regarding their visa or residency permit status did not contribute to their decision to return to their home country. In fact, 27 percent of Indian respondents and 34 percent of Chinese held permanent resident status or were U.S. citizens. In addition to job opportunities, the returnees we surveyed were lured by social factors such as closeness to friends and ability to care for aging parents.

The rationale for returnees moving home was echoed by responses of surveyed foreign nationals currently enrolled in U.S. universities. These groups have traditionally represented a disproportionate percentage per capita of advanced degree students. During the 2004–2005 academic year, roughly 60 percent of engineering doctoral students and 40 percent of master’s degree students were foreign nationals, and foreign nationals made up a significant share of the U.S. graduate student population in all STEM (Science, Technology, Engineering, Medicine) disciplines.

In the past, the overwhelming majority of these students worked in the United States after graduation. The five-year stay rate for Chinese holding Ph.D.s has been 92 percent and for Indians 85 percent. Most end up staying permanently. Yet, the overall consensus among students we surveyed was that the United States was no longer the destination of choice for their professional careers.

Most students in our sample wanted to stay in the United States, but only for short periods. Among respondents, 58 percent of Indian, 54 percent of Chinese, and 40 percent of European students said that they would stay in the United States for at least a few years after graduation, if given the chance. However, only 6 percent of Indian, 10 percent of Chinese, and 15 percent of European students said they wanted to stay permanently. The largest group of respondents— 55 percent of Indian, 40 percent of Chinese, and 30 percent of European students— wants to return home within five years.

Visa concerns were more evident among students. More than three-fourths of these students expressed concern about obtaining work visas, and close to that number worry that they will not be able to find U.S. jobs in their field. Few said they found anything but a warm reception here from the American people. But their concern over work visas could only have been exacerbated by the ongoing attempts to curtail work possibilities for foreign nationals in the United States.

Further, the students’ assessment of their individual opportunities mirrored their view for the future of the U.S. economy. The survey found that only 7 percent of Chinese students, 9 percent of European students, and 25 percent of Indian students believe that the best days of the U.S. economy lie ahead. Conversely, 74 percent of Chinese students and 86 percent of Indian students believe that the best days for their home countries’ economies lie ahead.

The anti-immigrant groups will no doubt celebrate the departure of foreigners. But the impact of a reverse brain drain could potentially be profound and long lasting for the United States. The country is effectively exporting its economic stimulus.

Vivek Wadhwa co-authored his survey of returnees (http://www.kauffman.org/newsroom/united-states-losing-immigrants-who-spur-innovation-and-economic-growth.aspx) and foreign students (http://www.kauffman.org/newsroom/foreign-national-students-in-united-states-plan-to-return-to-native-countries.aspx) with the Kauffman Foundation.

11-15

Middle East Hit by U.S. Financial Crisis

October 16, 2008 by · Leave a Comment 

Courtesy New America Media, Shane Bauer

Editor’s Note: Even oil-rich Arab countries, which until recently were smug about being insulated from the financial debacle on Wall Street, are starting to worry. Analysts are predicting that they are sure to increase regulations and start pulling their economies away from the United States. NAM contributor Shane Bauer is a journalist and photographer based in the Middle East.

Stock traders in the Middle East

SANA’A, Yemen–While Washington was hashing out the terms of its largest financial bailout in history, Arab bankers were saying everything in the Middle East was as good as ever.

A full-page ad in one Middle Eastern magazine advertised a proposed business park called Falcon City, another fantasy land to add to the skyscrapers and glitter of oil-rich Dubai. Office buildings were shaped to resemble the Eiffel Tower, the Great Wall of China, the Pyramids of Egypt, and the Taj Mahal.

“As a residential or business address, each wonder is a totally amazing investment,” the caption read.

A few days later, the same newsstands spelled dread. Images of fear-stricken men in white robes and kafiyyas, their eyes fixed on strings of red numbers, splashed the front pages. Headlines announced that the Middle East’s markets were crashing, and columnists spit fire, calling on the Arab world to free itself “from the shackles of American imperialism.”

The degree to which Arab investors, which have some $800 billion invested internationally, will rein in their international investments will likely depend on how heavily they are impacted by the crisis. But analysts say that at the very least, Arab countries are sure to increase regulations and start pulling their economies away from the United States.

“U.S. influence has long been waning, both in its capacity to inspire and to intimidate,” says David Levy, senior fellow and director of the Middle East Initiative at the Washington, D.C., think tank the New America Foundation. “The region has been increasingly looking elsewhere for investments and markets. The crisis on Wall Street will only hasten that process.”

2008-10-12T102958Z_01_DUB09_RTRMDNP_3_DFM-LIMITDOWN But Arab analysts say the United States was becoming increasingly unattractive for investment well before the financial crisis hit. Washington had rejected several investment attempts in recent years by Arab companies on the basis that they were, well, Arab.

The last rejection came when some Gulf companies showed interest in investing nearly $20 billion to help save Citi Group and Merrill Lynch when they were initially threatened with bankruptcy. The deal was stopped in Congress when opponents said an increase in Arab investment in the United States would present a national security problem.

As Arab stock markets fall for their third day since reopening after a one-week post-Ramadan holiday, one thing is clear: those with the most open markets and the strongest ties to the U.S. economy are being hit the hardest.

In the past three days alone, banks in the Persian Gulf have lost about $150 billion. On Tuesday, the Tadawul All-Shares Index, home to the Arab world’s biggest market, finished at its lowest close in four years.

Countries that last week were saying that their economies were “insulated” from international financial disasters are now bailing out their banks. The central bank of the United Arab Emirates pumped $17.5 billion into its banks this week and said it is ready to give more if needed.

Jan Randolph, an economic analyst at Global Insight, says that “Arab investors and banks are going to start looking locally for investments.”

The president of the Union of Arab Banks, Adnan Yusif, has announced that there needs to be an increase in regional investment, and economists have been calling for a meeting of financial ministers and policy makers to come up with a regionwide plan to deal with the crisis.

But inter-Arab economic cooperation might not be easy. The Middle East is home to some of the world’s most closed economies, like Syria, as well as countries whose names are virtually synonymous with unfettered growth, like the United Arab Emirates.

Antagonisms over competing economic ideologies run deep in the Arab world, and the current crisis seems to be reigniting debates about how much regional economies should be bound to the global economy.

“If this crisis does send real shockwaves through the region, and you start seeing that economies more closed to the world are more protected, people might start seeing open economies as a double-edged sword,” says David Levy.

Masa’ad al-Kurdi of the Saudi-owned Al-Majella magazine writes that neo-liberal globalization is to blame for the crisis. “The developing world’s economies are dependent on the U.S., the world’s largest importer, to buy their exports,” he argues. As the dollar weakens, “developing countries are going to pay the most,” writes Al-Kurdi, who concludes that “the United States of America is driving the world into the abyss.”

10-43

Clampdown in Xinjiang

August 7, 2008 by · Leave a Comment 

Courtesy AFP

2008-08-05T041909Z_01_NIR01_RTRMDNP_3_OLYMPICS-XINJIANG

Members of the security forces walk pass local Uighurs as they patrol a steer, near the area where a bomb attack took place the day before, in Kashgar, Xinjiang province, August 5, 2008. China’s tense Xinjiang region announced sweeping security checks of transport on Tuesday after assailants used a truck to mount a deadly attack on police days before the Beijing Olympic Games open. 

REUTERS/Nir Elias (CHINA)

KASHGAR, China (AFP) — Chinese authorities moved Tuesday to keep a lid on further information about a bloody assault on police in Kashgar with a truck, explosives and machetes.

At the hotel directly across from the site of Monday’s raid, which killed 16 policemen, guests were told in the morning that the Internet had been shut off across the city, on police orders.

Police entered an AFP photographer’s hotel room and forced him to delete photos he had taken of the scene. Plainclothes police followed journalists as they moved around the city.

“We can’t talk about that. You must understand if we talk about it, the police will come and arrest us,” said a shopkeeper in Kashgar, a remote city in northwest China’s Xinjiang region, who declined to be named.

Nevertheless some independent information emerged outside of the uniform coverage in China’s state-run press, which was all based on reports from the official Xinhua news agency.

Foreign witnesses described a “sickening” scene that unfolded as two assailants drove a truck at a group of policemen who were out jogging, then attacked the officers with small explosives and machetes.

“My wife almost threw up and had to lie down afterward,” said Wlodzislaw Duch, a Polish tourist who watched the assault from his hotel room directly across the street from the scene.

The Xinhua news agency said the two, aged 28 and 33, were arrested immediately, and identified the men as members of the Muslim ethnic Uighur group, a Turkic-speaking people that have long chafed at Chinese rule of Xinjiang.

The state-controlled China Daily, the government’s main outlet to foreign audiences, said the East Turkestan Islamic Movement (ETIM), listed by the UN as a terrorist organisation, was “likely” responsible.

“There is little doubt that the ETIM is behind the attack,” said Li Wei, an anti-terrorism expert at the China Institute of Contemporary International Relations, according to the paper.

The attack showed the ETIM is now “into advanced planning” since “it has rarely used cars or trucks in an attack before,” Li was quoted as saying.

China has repeatedly warned the ETIM was planning to stage attacks on the Beijing Olympics, which starts on Friday.

However Chinese authorities have not gone on the record to blame the ETIM for Monday’s attack, allowing only unofficial “experts” to be be used in the state-run press.

Beijing Olympic organisers said they did not know yet if there was a direct connection to the showpiece sporting event, but insisted the Games would not be threatened.

“There is always the risk to the security of the Bejing Olympics,” Sun Weide, a spokesman for the Beijing Olympic organising committee, told reporters.

“That is why we have drafted hundreds of security plans, and now we are prepared to deal with these kind of security threats. We can guarantee a safe and peaceful Olympic Games.”

Xinjiang, a vast area that borders Central Asia, has about 8.3 million Uighurs , and many are unhappy with what they say has been decades of repressive Communist Chinese rule.

Two short-lived East Turkestan republics emerged in Xinjiang in the 1930s and 1940s, at a time when central government control in China was weakened by civil war and Japanese invasion.

The exiled leader of China’s Uighur Muslims condemned the reported killings.

“We condemn all acts of violence,” Rebiya Kadeer said in Washington, where she has been living in exile since 2005 after spending six years in a Beijing prison.

"The Uighur people do not support acts that engender bloodshed.”

10-33

A Saudi Arabian University with a Western Feel

July 17, 2008 by · 1 Comment 

By Jeffrey Fleishman, Los Angeles Times Staff Writer

kaust classroom artist

Artist’s rendering of a classroom at KAUST.  King Abdullah University of Science and Technology (KAUST) will feature coed classes, a curriculum in English and other touches seen as dangerous liberalism by Islamic fundamentalists.

THUWAL, SAUDI ARABIA — Up the corniche, along a coast where boats carrying pilgrims bound for Mecca sailed for centuries, a thicket of cranes rises over whitewashed mosques along the Red Sea.

Steel flashes and blowtorches glow as 20,000 workers build a $10-billion university ordered up by a king who hopes Western ingenuity will revive the economy of this ultraconservative Muslim nation. When finished next year, King Abdullah University of Science and Technology will offer coed classes, Western professors, a curriculum in English and other touches loathed as dangerous liberalism by Islamic fundamentalists.

The West may be dependent on Saudi crude, now as high as $145 a barrel, but this campus outside an ancient fishing village is recognition that the country that is home to Islam’s holiest shrines needs the likes of USC, Oxford University and the Massachusetts Institute of Technology to survive globalization.

An architect’s rendering shows a campus of canals and reflecting pools running along sleek silver and glass libraries and laboratories. A marina with slips for 140 boats stands in a cove lighted by a tapered beacon. Students and professors will live in villas and apartments looking out on date palms and furnished with eggshell and white Swedish-style sofas and chairs.

Saudis have studied in the U.S. and Europe for decades, bringing back expertise without directly exposing the kingdom to Western classrooms and professors. But the new university is inviting the secular West a step closer in another ideological battle between Saudi reformers led by King Abdullah and the Wahhabi sect of puritanical Islam that has resisted outside influences since the days of desert caravans.

“Saudis are beginning to realize they are not the center of the universe,” said Tariq Maeena, a writer and aviation expert. “The king hopes that a young Saudi will be in a class with an American professor. The king is jabbing the conservatives from all sides. He’s not doing it with a massive decree, but incrementally, and all the radicals can do is roll their eyes and say, ‘Uh-oh, we’re losing more power.’

“Amira Kashgary, a literature professor at a women’s college, said, “We are part of the global world now. Whether we like it or not, and regardless of our political and religious systems, there are changes seeping through our lives.

“The radicals ran a wicked Internet campaign against the university. They said it is another sign liberals are invading us.”

The kingdom’s huge oil reserves cannot mask Saudi Arabia’s problems: 40% of its population is younger than 18, its schools are backward and its economy is not diverse enough to compete in a high-tech future balanced between the West and the rising powers of China and India.

King Abdullah is building the university, along with six multibillion- dollar Economic Cities, to provide jobs and open the country to global markets. Conservatives fear that these international voices, from South Asian construction workers to Western scientists, will change the religious fabric.

“Men and women learning together should remain forbidden,” said Mohammed Ben Yehia Nogeemy, a member of the Saudi Juristic Academy, a religious organization that issues fatwas. He said that such an atmosphere could be regarded as sedition and “if any Saudi official has the intention to allow the establishment of a coeducational university, that will be a big mistake that will need to be corrected.”

But the king, for now, is a step ahead of the conservatives. Nogeemy was not in attendance on a recent afternoon when oil money seduced brainpower at a hotel along the Red Sea in Jidda.

Silver trays of hors d’oeuvres and alcohol-free champagne glided through a crowd of Western academics gathered for a conference on the university’s goals. Soldiers with Humvees and .50-caliber machine guns stood guard outside to scare away would-be terrorists, while inside mathematicians and molecular biologists tried on blue university ball caps and pocketed Lamborghini pens left on seats as gifts.

The university, known as KAUST, is promising academic freedom, the mixing of cultures and religions, and subjects as varied as nanotechnology and crop development. The country’s ubiquitous and often abusive morality police will not patrol the campus, depicted on the university’s interactive website with unveiled women. Going unveiled is a crime in Saudi society that could lead to lashings and imprisonment.

kaust artist's rendering KAUST will be “a new house of wisdom,” Ali Ibrahim Naimi, the Saudi minister of petroleum and mineral resources, told the guests. He said world research projects and the Saudi economy, with a 12% unemployment rate, would benefit from the “easy flow of ideas and people into and out of the region.”

To ensure that, KAUST is not under the jurisdiction of the Education Ministry, which is controlled by fundamentalists and often forbids the teaching of music, art and philosophy.

The project is overseen by Aramco, the Saudi oil company founded by US firms in the 1930s. Aramco has experience in creating a parallel world: In its gated communities in the eastern part of the country, alcohol is available but hidden, there’s a pee-wee baseball winter carnival, and Western women drive cars, a practice forbidden to Saudi women.

With a chocolate-scented cigar in one hand and a honey-flavored coffee in the other, Maeena sat in his favorite Jidda cafe, nodding hellos to young men with laptops and waiters who know his preferences. This is the world he likes, a place to write, a den of intellectual freedom in Saudi Arabia’s most liberal city.
He said KAUST, which is being built 50 miles north of the cafe, is another sign that the country’s religious and ideological barriers are weakening.

“It’s an act of opening us up to a better side of education,” said Maeena, who, like many of his generation, attended college in the U.S. “The West has planted those seeds of liberalism in me and thousands like me. We were young Saudis educated in the West in the ‘60s, ‘70s and ‘80s, but this slowed as the seeds of fundamentalism took hold here in the 1990s.”

10-30

Community News (V10-I30)

July 17, 2008 by · Leave a Comment 

Mohammad Khan, President and Founder. ViVotech is the President and Founder of ViVOtech Inc.

Mr. Khan held several engineering, marketing, and business development management positions during the 15 years he worked with VeriFone.

Joining VeriFone in its early stage in 1983, Mr. Khan helped the company develop its payment automation systems and later helped successfully market these products in more than 96 countries.

Included were the smart card and security payment products he conceived for VeriFone and launched to its worldwide markets in the early ‘90s.

Mr. Khan was also a co-founder of the Internet Commerce Division within VeriFone and was responsible for expansion of its Internet payment systems business into more than 25 countries. Khan is a co-founder of Sparkice, Inc., China’s e-Hub for global commerce, where he worked as its senior vice president.

Mr. Khan holds a master’s degree in electrical engineering from the University of Hawaii at Manoa. In 2006 Mohammad Khan was recognized as a leader of the Electronic Payments Industry by the Transaction Trends Magazine and in 2005 as a “Mover and Shaker” of the Electronic Payments Industry by the Transaction World magazine.

ViVOtech is a market leader in contactless payment software, over the air (OTA) card provisioning, promotion, and transaction management infrastructure software, NFC smart posters, and contactless readers/writers.

These innovative solutions allow consumers to make contactless payments with radio frequency-enabled credit cards, debit cards, key fobs, and NFC-enabled mobile phones. ViVOtech’s products are used by some of the most prominent retailers in the United States.

ViVOtech’s products are in use at movie theaters, fast food restaurants (QSR), casual dining establishments, convenience stores, gas stations, drug stores, grocery stores, buses, taxicabs and vending machine locations, enabling a wide variety of businesses to accept contactless payments.

Nevada brings people of diverse faiths together

LAS VEGAS–With an interfaith picnic Sunday, Nevada showed to the world that Christians (various denominations), Muslims, Hindus, Jews, and others could discuss similarities and differences in their religions across the picnic tables and make friends with people of “other” faith.

There were prayers in Hebrew, Sanskrit, Arabic, and English when Christians Muslims, Hindus, Jews and others gathered at Second Annual Northern Nevada Interfaith Community Picnic in Rancho San Rafael Park of Reno.

Besides coordinators Methodist Pastor John J. Auer, Rabbi Myra Soifer, Imam Abdul Rahim Barghouthi, several other religious leaders from the area participated in the event.

Muslim and Christian leaders to meet at Yale

NEW HAVEN–More than 150 Muslim and Christian leaders, including some of the world’s most eminent scholars and clerics, will gather at Yale University July 28-31 to promote understanding between the two faiths, whose members comprise more than half the world’s population.

Prominent political figures and representatives of the Jewish community also will speak at the conference, which launches a series of interfaith events planned around the world over the next two years.

These gatherings respond to the call for dialogue issued in an open letter, A Common Word Between Us and You, written by major Islamic leaders, to which Yale scholars responded with a statement that garnered over 500 signatures.

A watershed in Muslim-Christian relations, this interfaith meeting was organized by Yale Divinity School’s Center for Faith & Culture under the leadership of its founder and director, Miroslav Volf, together with the director of the Center’s Reconciliation Program, Joseph Cumming. Volf will co-teach a course on faith and globalization at Yale this fall with former British Prime Minister Tony Blair.

“I firmly believe that few things are more vital to our shared future than that people of different faiths understand each other better, respect each other more, and work together more closely. That is why I, along with countless others, was hugely encouraged when A Common Word was published.

I warmly welcome the fact that one of the world’s premier academic institutions, by hosting this gathering, is seeking to carry the debate and the dialogue further and deeper,” said former Prime Minister Tony Blair.

Yale Divinity School Dean Harold Attridge said, “I am extremely pleased that Yale Divinity School is hosting this important conference.

The Divinity School is committed to bringing the best insights of faith and intellect to bear on contemporary life, and the relationship between Christians and Muslims is one of the most pressing issues of our time.”

Notable leaders expected at the conference include Prince Ghazi bin Muhammad of Jordan; former Prime Minister Sadiq al-Mahdi of Sudan; top Evangelical leaders Leith Anderson and Geoff Tunnicliffe; prominent Ayatollahs from Iran; Sheikh Tayseer Tamimi of Palestine, Grand Muftis of several Middle Eastern countries; Antonios Kireopoulos of the National Council of Churches; and John Esposito of Georgetown University. Senator John Kerry as well as other senior U.S. government officials also are expected to attend.

Residents pack meeting on Wallingford Mosque

WALLINGFORD, CT-Residents opposed to the construction of a mosque in Wallingford packed  Planning and Zoning Committee meeting. They held signs saying they don’t want any new development in the area.

The dispute is over the construction of the Salma K.Farid Islamic Centre on a 6.5 acre site. The mosque which would serve up to thirty people on Fridays is being built by Tariq Farid,39, a successful entrepreneur in the area.

Opponents of the mosque say that they are concerned about traffic. Some of them denied that they are anti-Islamic and said that they are only opposed to development.

A recent traffic study found the intersection and road satisfactory for the mosque’s traffic projections.

The Planning and Zoning Committee is expected to vote on the subject in September.

10-30

The Hui People and the Earthquake

May 29, 2008 by · Leave a Comment 

By Geoffrey Cook, MMNS

Alameda (Calif.)–May 26, 2008–The recent tragedies that have overtaken Southeast Asia and the Far East have impacted Muslim communities — although in a minority there; i.e., Burma (see my recent article on the subject in this paper a few weeks ago), and Sichuan (China).  Today I shall spend my time on that huge Chinese Province devastated by the massive earthquake of mid-month (May).

We in the West do not think of Islam as a major force outside the Middle East, but the People’s Republic of China has 56 officially recognized minorities.  Ten of those are from the Muslim ummah.  The estimates of the Muslim population in Chinga vary from 10 to 100 million — making that country one of the twenty most populous Muslim countries upon our globe.

The Muslim people there are divided into those ten recognized groups plus smaller grouping – all based on ethnicity.  The Hui are the largest of the ten distinct Muslim ethnic groups.  Some say the Hui Muslims are the descendants of Arab, Persian and Turkish Muslim immigrants who intermarried with the local Han (majority) Chinese people.  Others say they are descended from Companions who emigrated in the early days of Islam to mainland China.  There are approximately ten million Hui Muslims in China. Their culture is the same as that of the majority Han Chinese with the difference that the Hui practice Islam and do not eat pork or drink alcohol.  Much of the Hui homeland is in the region of the epicenter of the devastating earthquake in Sichan Province.

Historically speaking — other than the practice of Islam — there is not much difference from the Han (majority Chinese).  For the Huis, being a Muslim means belonging to an (independent) subethnic group, and thus their [“academic” or formal] knowledge of Islam is practically non-existent to the point that they do not even know the basic pillars of Islam, and yet they consider themselves Hui.  On the other hand, there are recent Han Chinese converts who follow Islam much more stringently than the Hui, but they do not like to be called Hui because they are purely Han Chinese.  Like Christianity, Islam crosses the boundaries of race and ethnicity.  For the Musim, all that is necessary is the simple (paraphrased) Credo (in Engish): “I bear witness that there is no god except God (Allah), and Muhammad is the messenger of God!” (s).

Back to China’s disaster and her peoples (the traditional Hui Musims and the newer Han converts), in terms of lifestyles, the two groups are almost identical – to the point of speaking the same language.  Even amongst the Hui one will find people who eat pork, though, and even drink alcohol; so it is difficult to tell where the Hui begins or the Han ends.

Unfortunately, with the immensity of the destruction, I could not locate articles that addressed directly — with hard facts and figures — the impact of the earthquake upon the Hui and other Chinese Musims and their immediate needs.  Therefore, because of  their populace’s concentration, it is unfortunately fair to assume that the Hui have been unevenly affected by the tragedy.

Even before the devastation, Islamic Charities had been active in China improving the lives of poorer Chinese citizens irrespective of religion.  Beijing has recently expressed their gratitude to all the Musim charities working towards the humanitarian relief of their citizens – most especially to the Muslim relief workers, for with their geographical closeness to the disaster, they were some of the first to arrive into the interior with relief.

10-23

SE Michigan Events Volume 8 Issue 17

April 24, 2006 by · Leave a Comment 

Mawlid Fills Hearts of IIK Worshippers with Love for Prophet (s)

Dearborn—April 15—The Islamic Institute of Knowledge (IIK) in Dearborn celebrated the blessed birth of our holy Prophet (s) this past weekend at a very popular meeting attended by about a hundred Muslims who sang praises and rejoiced at his coming into this world with the message that is the light of our lives.
The event was by open-invitation to the community. There were three main speakers at the event, being Imam Abdul Latif Berry, Imam Baquir Berry (the son of Imam Abdul Latif Berry), and the Chairman of the IIK, Dr. Ali Sobh.
The elder Imam Berry spoke on the importance of education, emphasizing that the first revealed verse was “Iqra,” read. He also spoke on world events, discussing the impact of Islam on those events, and saying that it is important for Muslims to be educated, to participate in politics, education, and the media. In support of this he quoted Qur`an and `ahadith.
Imam Baquir Berry and Dr. Sobh echoed this theme, the first saying that those closest to God are those who are well-educated, and the doctor emphasizing the hadith to “seek knowledge even if it is in China.” Imam Baquir Berry said that it is important to raise children in the ethnical and moral way that Islam was founded on. There were many children at the event, and one of the speakers mentioned a hadith that when your children look at you with love in their eyes, it is as if you are paying charity. Candy bags and balloons were given to the children to make them happy on the blessed occasion of the birth of the holy Prophet (s).

Women’s Mawlid at IIK Dearborn Heights

April 12—The women of several mosques gathered at the IIK to celebrate Mawlid together on Friday. About 75 women were in attendance at the event, at which Imam Baquir Berry spoke.
The event began with a brunch of fruit and other nice food. Then Imam Baquir Berry spoke.
He spoke on different issues of how Prophet (s) was—as a role model, how forgiving and compassionate and understanding he was. He spoke for a few minutes.
Then two women, Linda and Hanan, read anthems or songs of praise including Tala’al Badru ‘Alayna and other songs. A first-grade class from the neighboring Islamic academy also sang songs of praise for Prophet (s).
Following this, the ladies had a raffle event, for which they competed in answering questions about the life of Prophet Muhammad (s) and Companions, wives and descendants—the winners receiving different prizes.
Hajja Khalida Beydoun, when asked about the event, quoted a hadith of Prophet (s) that “Live howsoever you like but you will surely die; love whatsoever you like but you will surely depart from it; do whatsoever you like but you will certainly meet it (and receive its reward). The honor of a Muslim believer is his midnight prayers, and his nobility is his refraining from ruining the reputations of people.”

Sunni-Shi’a Dialog

Canton—April 15—A packed house greeted IIK’s Imam Baquir Berry this past weekend in celebration of Shi’a-Sunni unity.
This event was held at the Canton Mosque, the Muslim Community of the Western Suburbs, on 40440 Palmer Avenue, in Canton. This mosque is a huge and sprawling center with a large mosque, cafeteria, and school, with until now signs of recent construction—unfinished landscaping and some building debris close to the mosque.
About 130 people were in attendance in total, roughly evenly split between men and women. MCWS is primarily considered, in its community’s eyes, as a south-Asian mosque composed of peoples from Bangladesh, Pakistan, and India.
The evening began with words of welcoming and an introduction of the evenings main speakers, firstly MCWS’s own imam, Shaykh Ali Suleman Ali, and then of the visiting imam, the guest of honor at the evening, Shaykh Baquir Berry, the son of Imam Abdul Latif Berry and an imam in his own right at the Islamic Institute of Knowledge in Dearborn. Their topic, chosen by the mosque, was “Shi’a-Sunni relations—how to keep unity.”
Imam Berry spoke first at the behest of MCWS. He said that he was impressed by MCWS, and reflected that it is the result of 100 years of hard work by Muslim immigrants to this country. He quoted an ayah of Qur`an that Allah made Muslims the best nation to grace human beings. He said that Allah made this ummah appear as the best. He said that Prophet (s) had one mission, which Imam Baquir Berry emphasized was to lead people from “dhulumaty `ila nur” to guide people from darkness to light.
In view of this single mission that Prophet (s) did, we must continue his work of bringing guidance and nur to humanity. He said that in order to accomplish this we must work, hand in hand with other Muslims—by means of this ayah he emphasized the importance for all Muslims of all different forms of practice to come together to further this message.
He emphasized Prophet’s (s) example of bringing brotherhood between people by means of pairing the ansar with the muhajiroon. He emphasized that although the Companions disagreed over things at times, they would set aside their disagreements in light of their respect for and love of the Holiest Messenger (s).
He emphasized that we should, firstly, focus on this overriding mission rather than on the minor differences between Sunni and Shi’a, and secondly, that we should come closer together in order to know one another because just opening enough knowledge to bridge gaps of ignorance will solve by itself many problems.
He minimized differences of practice between Sunni and Shi’a, saying that even the differences between the Ja’fari madhhab and the Sunni madhahib is not that much, and emphasizing that the founders of the madhahib used to keep mutual respect and used to pray behind each other without disputing differences of practice—even following the practices of another madhhab’s imam when in his presence rather than arguing with him.
Imam Ali Suleman Ali also emphasized similar issues. Imam Ali is a Ph.D. holder who received his doctorate from the University of Michigan Ann Arbor.
He emphasized that in his early days in Michigan, decades ago, he and other Sunni imams including Shaykh Musa, now of the Bloomfield Unity Center, used to visit Shaykh Berry’s father on Fridays and sit and joke together and spend pleasant time with one another.
He said that in fact there are no problems between Sunni and Shi’a here in the US, but that historically there have been some differences. He said we should bury these issues and focus on what’s good for Muslims as a community. He emphasized shahada, of clinging to “hablil Lah jami’an,” and emphasized that there are many efforts today to divide Muslims based on sex, race, and differences of practice and belief like Sunni and Shi’a.
He thanked Shaykh Berry for coming, and emphasized several definite plans for Sunni Shi’a cooperation in the immediate future.
In their questions and answers the people of the mosque asked questions for which there are not easy and clear-cut answers, (1) trying to establish universal acceptance of an ‘ied day, (2) to establish that Sunni and Shi’a zabiha-halal meat is mutually acceptable (Shaykh Ali said unequivocally that Shi’a zabiha halal meat is acceptable for Sunnis), (3) how to prevent the terrible division between Sunnis and Shi’a in Iraq from spreading here and to other places (Shaykh Berry said that in fact America is the shining example for the rest of the Muslim world, because we have held so many mutual Sunni-Shi’a gatherings since the terrible Samarra boming, and Shaykh Ali said that no Muslim could have bombed that shrine), (4) what we can do as Muslims to come together (Shaykh Berry said that religious people are open to come together, but that some people in the community are not religious and therefore not open to relations with people of different ethnicities), (5) asked whether Sunnis and Shi’a can pray behind each other.
Shaykh Berry’s response to this last question was very nicely worded, emphasizing again that the founders of the madhahib used to show respect to one another by following the rulings of the other major jurists when in their presence in order to show respect and mutual love and honor, and would pray behind one another even in a manner out of keeping with their own practices for the sake of mutual respect—therefore we also should adhere to this practice of mutual respect despite differences of opinion and law.

It’s Not Just Me

April 24, 2006 by · Leave a Comment 

It’s Not Just Me
By Bob Wood
Any Bear will tell you it’s tough making a living on the short side of the markets, risking your hard-earned capital on the idea that markets are heading lower. And it’s just as hard for the Bear writing weekly columns about the markets’ shaky footing. Since, in both cases, “wrong” can be costly, never assume that a Bear takes his position just to be contrarian or different.
You can be sure of one thing about the Bears whose work I follow. Neither are they pessimistic or negative by nature. But to me, it seems only the Bears are doing any real analytical work, though few people prefer listening to or believing Bears over Bulls, so strong cases must be made for their side.
Several better-known Bears tend to agree about the near- and long-term future of stock and bond markets and now add information relating to real estate. To me, their analyses are much more compelling than those offered by TV’s Bulls. And to assure you that not only the guy writing on page 6 of TMO is bearish, I’m sharing thoughts from other financial writers, whose thinking I respect and follow.
On the stock market, I can hit two birds with one rock by citing a quote from one guy whom I wouldn’t have known except for the other. In his most recent work, the Mogambo Guru quotes Robert Prechter from the “Elliot Wave.”
And in talking about Newtonian physics and “big moves,” Robert Prechter, of Elliott Wave fame, says that the recent huge (>40%) losses in Middle-Eastern stock markets is just prolog. “This year the U.S. stock market is shaping up to drop at least as fast. Generally when stocks levitate into a market cycle, they make up for it by crashing.
In 1929, stocks rose for 2.5 years into the 2.7-year cycle. Then they lost 50 percent of their value in 2 months. In 1987, stocks rose for 3.1 years into the 3.3-year cycle. Then they lost 40 percent of their value in 7 weeks.” If you think you got the guts to weather a 40% drop in your portfolio, maybe you ought to re-think that optimistic assessment when he goes on to say “But given that the bear market is of Grand Supercycle degree, the largest in nearly 300 years, the coming drop should dwarf both of those crashes.”
And not only these two voice their concerns about today’s stock market. Richard Russell also chimed in this past week.
“But with the massive amount of debt built into the US economy, I don’t see how the Fed could tolerate a path of contracting liquidity—it would be too dangerous. The more probable path would be the Fed raising rates too high and setting off trouble in the housing market— remember, the effects of rate changes don’t usually appear until six months to even a year after the last rate change.
In the meantime, stock market action is erratic and suspect. While the Dow holds and even creeps higher, the majority of stocks are failing to follow. How about this surprising statistic—only 50% of the stocks in the S&P 500 are now holding above their 50-day exponential moving average (statistics from the great DecisionPoint site). In other words, we’re seeing persistent internal deterioration in the stock market, despite the better performance of the Dow.
What are the markets waiting for or looking at? One thing they’re looking at is the oil situation, and they’re wondering if there’s any way that it can be resolved—Nigeria, Iraq, Venezuela, Iran? Has the US lost control of the world’s oil markets? Well, there’s always Canada.
In response to all the uncertainty, the stock market seems to have adopted a “what, me worry?” attitude. Here we have an “Iran problem,” an expensive mess in Iraq, huge negative trade balances, China taking away our manufacturing base, rising interest rates, record high oil prices—and lots, lots more. And does Wall Street worry? Not at all. The only thing the boys on Wall Street are worried about is the size of next year’s bonus.
Jim Stack of Investech Research now allocates 39% of his model portfolio to cash. While his reading of technical tools like charts leads him to think that bull market trends will continue, his concerns center on the real estate market. Of particular concern: more than $2 trillion in mortgages are the adjustable rate variety. And with rates now rising, those debts will see rates “that will be reset at much higher levels in 2006-07.’’
Since the middle class seems to save little, the pain could be most intense there. And speaking of real estate, Bill Fleckenstein noticed this Wall Street Journal item.
“It is indeed the financial institutions that are most at risk in the real-estate market (which is not to say that consumers and speculators won’t get hurt). They will bear the brunt of the pain, because in many cases, they loaned the entire purchase price. As I have said often, the housing bubble has been more a lending bubble. It will be the impairment of the financial institutions that will stop the flow of credit to the real-estate market.
In turn, that will accelerate the collapse in house prices somewhere along the way.
The story closes with a description of how slow the market has recently become in Florida, demonstrated by an email sent last week by real-estate broker Mike Morgan read as follows: “We went three days this week with not a single showing.
That’s incredible. I have 35 listings. We usually get 2-6 showings a day. . . . I received more desperate calls from sellers than ever. One lady broke down into tears. Her husband bought two investment properties, and they are now going to lose their ‘life savings’ if they sell the homes in today’s market.”
Ladies and gentlemen, that is going to happen to a lot of people around the country.
And, after they have lost their life savings, the financial institutions that were the engine behind this folly will take their own hit. Easy Al tried to bail out one bubble with another bubble. While it bought some time, it will end in far-worse pain.’’
But the overall economy looks pretty good, doesn’t it? How many times have you heard that the economy is ‘’strong and getting stronger’’ and unemployment and inflation rates are nearly at record lows? But here’s another problem: whom do you believe when smart arguments come from both sides of an economics issue? We’ve all seen glorious statistics issued by government agencies and touted by those making fiscal policy!
I tend to listen to people who work for me—those whom I pay for access to their work, including some cited in this article. I don’t see much conflict in their thinking. One such source, Kurt Richebacher, notes in his latest letter how government statistics have changed over the past 40 years.
“We have pursued these and other changes in the U.S. statistics for years with great misgivings. There has been an unusual, concerted drive to produce better looking statistics. Obviously, these contributions have been decisive in creating the perception of the U.S. economy’s superior performance. The particular importance of the inflation rate arises from the fact that it has a large effect on real GDP and productivity growth, two aggregates of highest economic and political assessment’’.
So, if you understate inflation enough, the economy looks like it’s growing smartly when it is actually in recession—the thinking of some right now. John Williams of “Shadowstats.com” shows how using methodology of the 1980s to calculate today’s rate of inflation produces a result of 6.6%, while using a method from the 1970s yields a 7.4% inflation rate. And that would take GDP growth to about a negative 4%.
Speaking of government accountability and the veracity of its reports, Williams offers more interesting items this week. It seems that some have misgivings about reporting our country’s financial position, such as material weaknesses and “problems with fundamental record keeping and financial reporting, incomplete documentation and weak internal control.’’
He adds that auditors will not apply their signatures to attest accuracy of the nation’s financial accounting, with three reasons cited: “serious financial management problems at the Dept. of Defense, the federal government’s inability to account for billions of dollars of transactions between federal government entities, and the federal government’s ineffective process for preparing the consolidated financial statements.’’
Comforting? Here’s more. Deeper in his report is the writer’s opinion of the National Debt, “only $7 trillion,’’ at the time, which does not account for the federal government’s true liability total. Left out are items for projected Social Security and Medicare benefits at about four times that amount. And “the new prescription drug benefit, which is one of the largest unfunded commitments ever undertaken by the federal government, will serve to increase this financial and fiscal challenge.”
It seems the President has pushed through his prescription drug plan with no apparent thought about how to pay for it. This information comes from David Walker, Comptroller General of the United States, who should know! And since we borrow to pay our deficits — and more every year to pay interest costs on that debt, rapid money printing as seen during the Greenspan era seems like the easiest thing for government leaders to do. And so they continue the printing.
Williams concludes that “risks of the current circumstance evolving into a hyperinflationary depression remain extraordinarily high. An unfolding inflationary recession is the worst of all worlds for financial markets. Particularly hard hit will be the U.S. dollar, with downside implications for both equity and bond prices.’’ But the story does get better. He adds that “when the system re-stabilizes, post-crisis, there will be exceptional investment opportunities for those who have been able to preserve their wealth, capital and liquidity.’’ And Russell agrees.
So what do we do about this now? If you’ve been reading this column regularly, you’ve heard it all before. In his latest “Gloom, Boom and Doom Report” (wish I’d thought of that!), Marc Faber says, “In my opinion, the dollar will depreciate mostly against gold. In the long run, what you will see is the standard of living in America decline very significantly compared to the standard of living in Asia.
And the stock market capitalization of the U.S., which is now 52% of the world’s stock market capitalization, which will decline to somewhere between 20 and 30% and the Asian stock market capitalization will rise to between 20% and 30%, possibly 50% of the world’’.
And you thought I was gloomy, eh? To me, these sources make perfect sense. Remember, it is hard being the Bear when investors would much rather be hopeful. But there is hope! In economics, we always find winners and losers, just as in the markets. The outlook for gold, energy and Asian markets offer hope for positive returns. And of course, hedging with bear market mutual funds makes any bear market a lot less worrisome.
Have a great week…I mean it!
Bob

“New Urgency” to Curb Iran

April 24, 2006 by · Leave a Comment 

“New Urgency” to Curb Iran
By Christian Lowe
MOSCOW (Reuters) – Russia said on Wednesday it wanted to refrain from taking action before a U.N. deadline set for Tehran to halt uranium enrichment expired, but a top U.S. official believed other countries were inching toward action.
Tensions remained high, with oil prices hitting a new high above $73, partly driven by fears the dispute could disrupt shipments from the world’s fourth-largest oil exporter.
“What I heard in the room last night was not agreement on the specifics but to the general notion that Iran has to feel isolation and that there is a cost to what they are doing,” UnderSecretary of State Nicholas Burns told reporters.
“Now we need to go beyond that and agree on the specifics of what measures we need to put that into operation,” he said.
He said Iran’s shock announcement last week that it had enriched uranium to a low level and planned to produce it on an industrial scale had focused the minds of the international community.
The US and its European allies say Tehran could divert highly enriched uranium to make bombs.
“What is new is a greater sense of urgency given what the Iranians did last week … Nearly every country is considering some sort of sanctions and that is a new development. We heard last night and again today that all of those that spoke are looking at sanctions,” Burns said.
In a surprise development, an Iranian delegation appeared later in the day in Moscow for talks with officials from the EU3—Britain, France and Germany—although one European official said he did not expect a “breakthrough.”
The Security Council on March 29 gave Iran a month to halt enrichment and answer questions from the International Atomic Energy Agency (IAEA) on its nuclear program.
Russia and China, which both have veto power in the council, say they are not convinced sanctions would work. U.S. officials had hoped to use the talks to persuade them to take a tougher line on Iran, which it suspects of seeking nuclear weapons.
Russian Foreign Minister Sergei Lavrov said some countries, including Russia, wanted to wait until the U.N. nuclear watchdog reports on Iranian compliance on April 28 before acting.
“We are convinced of the need to wait for the IAEA report due at the end of the month,” Lavrov told reporters.
An Iranian delegation headed to Moscow for talks on the dispute, Foreign Minister Manoucher Mottaki told state radio.
He said officials from the Foreign Ministry and the Supreme National Security Council would “discuss possible solutions which could pave the way to reach a comprehensive understanding based on a recognition of Iran’s right to nuclear technology.”
Iran says it only wants nuclear power for civilian use, but Russia said Tehran was not responding to international demands.
One diplomat from a country that opposes Iran’s nuclear work said Iran could suggest a “pause.”
“This is to prepare the ground for renewing negotiations with the Europeans,” the diplomat, said about the proposal. It was unclear how long the pause would be.
A senior EU3 diplomat said he would welcome Iran’s presentating such an initiative and halting their enrichment research. But it would have to be more than a brief technical pause in order for the Europeans to revive negotiations with Tehran.
Burns said Washington was opposed to allowing Iran any kind of pause, calling some of Iran’s negotiating positions “a ruse.”
Market worries that the nuclear crisis might disrupt Iranian oil exports pushed oil above $73 a barrel, a fresh record.
Tuesday’s meeting of deputy foreign ministers from Russia, China, the United States, Germany, France and Britain underlined international differences over punitive action against Iran.
All the powers have said they are determined to solve the problem through diplomatic means, but the US is alone among them in not ruling out military action.
Pres. Bush plans to raise the issue during PM Hu Jintao’s visit.

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