Showing posts with label India. Show all posts
Showing posts with label India. Show all posts

Wednesday, September 5, 2012

INTERPOL: Judge Orders Extradition And Arrest Of Former U.S. Treasury Undersecretary David Mulford

Daily Bail



Argentina hasn't forgotten Mulford's role in the 2001 crisis.
A judge in Argentina has ordered the arrest of CreditSuisse executive and former U.S. Treasury Undersecretary David Mulford because he failed to testify over a 2001 Argentine debt swap, the state news agency reported on Monday.

Federal Judge Marcelo Martinez de Giorgi will ask Interpol to issue an international arrest warrant seeking Mulford's extradition for questioning over the bond exchange carried out by the government in an unsuccessful bid to avoid default.

Mulford, who currently serves as vice chairman international of Credit Suisse Investment Bank, was seen as one of the debt swap's architects when he served as a senior official at Credit Suisse First Boston (CSFB).

Argentina's government swapped about $30 billion in debt for new, longer-maturity issues in June 2001. But it stopped paying most of its debts six months later as the economy collapsed.

A local court has been investigating the swap for more than 10 years to see if Argentine officials committed any crime when they hired banks to carry out the swap. Former Economy Minister Domingo Cavallo and former Finance Secretary Daniel Marx have been charged in the case, which has yet to go to trial.

Mulford was first called to testify in the probe in 2002 but he has never done so, according to court documents cited by the Telam news agency.

Argentine officials have "made numerous attempts by all possible legal means to achieve David Mulford's compliance, in this country's territory as well as through U.S. authorities, and all of these have invariably failed," the documents stated.

Cavallo said that Mulford was one of the main engineers of the swap.

Mulford worked at the U.S. Treasury from 1984 to 1992 and was at the center of international economic negotiations under former U.S. Presidents Ronald Reagan and George H.W. Bush.

He later served as the U.S. ambassador to India.

---

Here's Mulford on the 2008 crisis:

Debt-swap fraud is not forgiven in 3, 2, 1...

Tuesday, April 3, 2012

US fronts $10 million dollar reward for Pakistani terrorist

Examiner
Robert Tilford

Hafiz Muhammad Saeed
Hafiz Muhammad Saeed founded the violent extremist group Lashkar-e-Taiba (LeT), which in the 1990s sent Islamist militants to fight Indian troops in Kashmir, and is blamed by US and Indian officials for organizing the 2008 attacks on tourists and commuters in India's commercial capital. As such the US has offered a $10m (£6m) reward for information leading to the arrest and conviction of the Pakistani radical blamed for the 2008 Mumbai terror attacks, in which 166 people were killed.

The move is seen as a affront to Pakistan's security establishment, which has a close relationship with Saeed.

The US state department's Rewards for Justice program also announced a lesser reward of $2m reward for Hafiz Abdul Rehman Makki, Saeed's brother-in-law and the group's second-in-command.

The rewards were announced by Wendy Sherman, US under secretary of state for political affairs, in a meeting with the Indian foreign secretary, Ranjan Mathai, on Monday in a move that is sure to upset officials in Paksitan.

ONE HAND WASHES ANOTHER

Sherman is visiting India to broker support for US sanctions against the nation of Iran – India is a significant customer for Tehran's oil so the move to comply with US wishes will cost India in the form of higher oil and gas prices. The Indian ministry of external affairs said Delhi "sincerely appreciated" the move against Saeed, that could greatly complicate already fraught US relations with Pakistan.

In an interview with Al Jazeera, Saeed said the US move came after he organized rallies against the reopening of military supply lines through Pakistan to US and NATO forces in Afghanistan.

He denied having links to the Mumbai attacks.

"We are not hiding in caves for bounties to be set on finding us. I think the US is frustrated because we are taking out countrywide protests against the resumption of NATO supplies and drone strikes," he said.

"I believe either the US has very little knowledge and is basing its decisions on wrong information being provided by India or they are just frustrated."

Muhammad Yahya Mujahid, a spokesman for Saeed's Jamaat-ud-Dawa, the political wing of LeT, which stands for Laskar e- Tibia said the announcement was "an onslaught on Islam and Muslims".

He told the Guardian newspaper : "The world knows that Hafiz Muhammad Saeed and Hafiz Abdul Rehman Makki … are the mainstream religious and political leaders of the country.

Tuesday, March 20, 2012

Iran presses ahead with dollar attack

The Telegraph
Garry White

Last week, the Tehran Times noted that the Iranian oil bourse will start trading oil in currencies other than the dollar from March 20. This long-planned move is part of President Mahmoud Ahmadinejad’s vision of economic war with the west. 



“The dispute over Iran’s nuclear programme is nothing more than a convenient excuse for the US to use threats to protect the 'reserve currency’ status of the dollar,” the newspaper, which calls itself the voice of the Islamic Revolution, said.
“Recall that Saddam [Hussein] announced Iraq would no longer accept dollars for oil purchases in November 2000 and the US-Anglo invasion occurred in March 2003,” the Times continued. “Similarly, Iran opened its oil bourse in 2008, so it is a credit to Iranian negotiating ability that the 'crisis’ has not come to a head long before now.”
Iran has the third-largest oil reserves in the world and pricing oil in currencies other than dollars is a provocative move aimed at Washington. If Iran switches to the non-dollar terms for its oil payments, there could be a new oil price that would be denominated in euro, yen or even the yuan or rupee.
India is already in talks with Iran over how it can pay for its oil in rupees.
Even more surprisingly, reports have suggested that India is even considering paying for its oil in gold bullion. However, it is more likely that the country will pay in rupees, a currency that is not freely convertible.

Monday, February 13, 2012

Binyamin Netanyahu accuses Iran over bombs targeting Israeli diplomat

The Guardian


Tehran's ambassador to India denounces Israeli claim as 'sheer lies' after blast in New Delhi and discovery of device in Tbilisi

Israeli prime minister Binyamin Netanyahu has accused Iran of being behind twin attacks on Israeli targets in India and Georgia on Monday in a move likely to further escalate tensions between the two countries and increase international pressure on the Iranian regime.

The attacks, in which four people were injured, followed a warning from Iran's supreme leader, Ayatollah Ali Khamenei, earlier this month that the Islamic Republic would retaliate against international sanctions and would back "any nation or group" that sought to "confront and fight" Israel.

In Delhi, witnesses said they saw assailants on motorcycles attaching a device to a car when it stopped at a traffic light. In the Georgian capital, Tbilisi, an Israeli embassy driver discovered a device planted on the undercarriage of his car. The modus operandi in both incidents mirrored the assassination of an Iranian nuclear scientist in Tehran last month, which Iran claimed was carried out by agents for Israeli intelligence.

The Iranian regime also blamed Israel for a string of earlier assassinations and covert operations. Many in the international community have voiced alarm at the prospect of a low-intensity war between the two states conducted by intelligence operatives and their proxies.

Within hours of Monday's apparently co-ordinated attacks in the Indian and Georgian capitals, Netanyahu declared: "The elements behind these attacks were Iran and its protege, Hezbollah."

Tehran, he added, was "the largest terror exporter in the world" and was also responsible for recent attempted assaults on Israeli targets in Azerbaijan and Thailand. Israel, he said, would "act with a strong hand".

The Israeli foreign minister, Avigdor Lieberman, said Israel "know[s] how to identify exactly who is responsible for the attack and who carried it out".

Iran described the accusations as "sheer lies". Mehdi Nabizadeh, Iran's ambassador to Delhi, was quoted as saying by IRNA: "Any terrorist attack is condemned [by Iran] and we strongly reject the untrue comments by an Israeli official. These accusations are untrue and sheer lies, like previous times."

There has been no claim of responsibility for the attacks, which were initially linked to the anniversary of the assassination of a Hezbollah militant in Lebanon four years ago.

Four people, including the wife of an Israeli diplomat on her way to collect her children from the American Embassy School in Delhi, were reported injured when an explosive device wrecked a car with diplomatic plates.

According to Delhi Police Commissioner BK Gupta, the woman noticed a passing motorcyclist attach what appeared to be a magnetic device to the car when it slowed to approach a crossing.

The car drove a short distance, there was a loud sound and then an explosion and the car caught fire, he told a press conference.

Some witnesses told Indian television channels that they saw two riders on the bike.

The woman, Tali Yeshova, was taken to hospital for treatment and was expected to fly back to Israel later. Her driver and two other people in a nearby car sustained minor injuries, Gupta said.

In Tbilisi, police safely defused an explosive device found underneath a car of a local man employed as a driver at the Israeli embassy.

The Israeli foreign ministry declined to give details, only saying Israeli authorities were co-operating with local security forces.

Israeli missions around the world had been alerted to potential attacks around the anniversary of the death of Imad Mughniyah, a senior Hezbollah figure who was killed when his car exploded in 2008. Hezbollah, which has close ties to Iran, blamed Israel for the blast.

Israeli officials have also warned of the threat to embassies and other targets from Iran or its allies.

Last month, the Israel Defence Force chief of staff, Benny Gantz, warned: "We are witnessing efforts by Hezbollah and other hostile elements to perpetrate a brutal terror attack far from Israel."

Yoram Cohen, the head of Israel's internal security agency Shin Bet, said earlier this month that Iranian agents were attempting to attack Israeli targets around the world in retaliation for covert operations, including the assassination of Iranian nuclear scientists.


Saturday, February 4, 2012

Currency Warfare: What are the Real Targets of the E.U. Oil Embargo against Iran?

Global Research
Mahdi Darius Nazemroaya

Against whom is the European Union’s so-called “oil embargo on Iran” really aimed at?

This is an important geo-strategic question. Aside from rejecting the new E.U. measures against Iran as counter-productive, Tehran has warned the member states of the European Union that the E.U. oil embargo against Iran will hurt them and their economies far more than Iran.

Tehran has thus warned the leaders of the E.U. countries that the new sanctions are foolish and against their national and bloc interests. But is this correct? At the end of the day, who will benefit from the chain of events that are being set into motion?

Are Oil Embargos against Iran New?

Oil embargos against Iran are not new. In 1951, the Iranian government of Prime Minister Mohammed Mossadegh with the support of the Iranian Parliament nationalized the Iranian oil industry. As a result of Dr. Mossadegh’s nationalization program, the British militarily blockaded the territorial waters and national ports of Iran with the British Royal Navy and prevented Iran from exporting its oil. They also militarily prevented Iranian trade. London also froze Iranian assets and started a campaign to isolate Iran with sanctions. The government of Dr. Mossadegh was democratic and could not be vilified easily domestically by the British, so they began to portray Mossadegh as a pawn of the Soviet Union who would turn Iran into a communist country together with his Marxist political allies.

The illegal British naval embargo was followed by regime change in Tehran via a 1953 Anglo-American engineered coup d’état. The 1953 coup transformed the Shah of Iran from a constitutional figure head to an absolute monarch and dictator, like the monarchs of Jordan, Saudi Arabia, Bahrain, and Qatar. Iran was transformed overnight from a democratic constitutional monarchy into a dictatorship.

Today, a militarily imposed oil embargo against Iran is not possible like it was in the early 1950s. Instead London and Washington use the language of righteousness and hide behind false pretexts about Iranian nuclear weapons. Like in the 1950s, the oil embargo against Iran is tied to regime change. Yet, there are also broader objectives that go beyond the boundaries of Iran tied to the Washington’s project to impose an oil embargo against the Iranians.

The European Union and Iranian Oil Sales

Iran’s largest customer for oil is the People’s Republic of China. According to the Paris-based International Energy Agency (IEA), which was created after the 1973 Arab Oil Embargo as the strategic wing of the Western Bloc’s Organization of Economic Co-operation and Development (OECD), Iran exports 543,000 oil barrels per day to China. Iran’s other large customers are India, Turkey, Japan, and South Korea. India imports 341,000 barrels per day from Iran, Turkey imports 370,000 barrels per day from Iran, Japan imports 251,000 barrels per day from Iran, and South Korea imports 239,000 barrels per day from Iran.

According to the Iranian Ministry of Petroleum the European Union only accounts for 18% of Iranian oil exports, which means less than one-fifth of Iranian oil sales. Only “collectively” is the European Union the second largest customer of Iran. All the E.U. countries together import 510,000 barrels per day from Iran. This collective rank that all Iranian oil importing E.U. countries have together is being highlighted by those that want to emphasize the effectiveness of the E.U. oil embargo against Iran.

Sunday, January 29, 2012

Gold Reserves Now A National Security Issue For The World's Governments

WorldofWallStreet
Monty High

I've been feeling that the "India buys Iran's oil with gold" story (e.g. click here) was quite important for understanding the world geopolitical situation and for gold investing, but I wasn't sure exactly how. Just last night the reasoning to support the feeling came to me.
Let's review the major, recent geopolitical gold-related news stories:
  • Libya's Ghadafi pays his mercenaries with gold as he attempts to fend off the Bankster Empire attack masquerading as an Air Campaign to protect citizens from slaughter.

  • Venezuela's Chavez demands the return of Venezuela's gold from London. He realizes that Venezuela is definitely on the Bankster's list of "regimes that need changing".

  • Iran relies on gold to maintain international trade using gold as the Bankster Empire cuts it off from the dollar system and escalates its increasingly violent (bombs, assinations, etc.) campaign for regime change.

  • India relies on gold to maintain its supply of Iranian oil.

  • China and Russian, still not under the control of the Bankster Empire, eschew dollars for gold, beefing up their gold reserves as fast as they can without driving the price of gold too high, too fast.
Gold is what a nation (regime) relies on should the Bankster Empire turn against that nation.

The first thing the Bankster Empire does when its turning the screws on a regime is to freeze its assets. After that comes the kind of things happening to Iran (funding and supplying internal opponents, preventing them from doing trade by locking them out of the banking system, assinations, bombings, etc.). Throughout, gold reserves held within that nation allow the nation to continue to function and trade with other nations.

So, to any nation that is not fully integrated into the Bankster Empire (a non-aligned nation), gold reserves aren't a nice investment, they are an integral part of National Security (survival). As we know in the USA, national security trumps all other political priorities.

Here's my quick estimate of those nations which constitute the core of the Bankster Empire (dark green) and those nations that are clearly either close allies or vassals of the Empire (light green). Dark yellow constitutes those nations which are clearly outside of the control of the Bankster Empire with light yellow nations constituting those that I deem to be mostly outside of Bankster Empire control. Countries which are white are countries that I just don't know enough about to categorize. Please leave me a comment if you think I have a country misclassified.
Worldmapbankstercoreandalliesandvassalsandnonaligned

As a result of the pattern formed from the Libya, Venezuela, Iran, China, Russia (all non-aligned), I'm expecting that every nation in the world (beginning with the non-aligned nations, but continuing to fully aligned nations like Germany) are going to making the accumulation a significant, no-kidding physical gold bullion reserve located on their own soil as a matter of national security, a top priority.

This major geopolitical shift is an unexpected consequence of the Banker Empire's squeezing of the Iranians that has enormous long-term bullish implications for the price of gold.

It seems Saddam Hussein's decision to sell oil in something other than the US dollar (Euros) was the final straw that drove the Bankster Empire to attack Iraq. I think that the Bankster Empire is not at all amused by the Iranian Gold For Oil deal and that they will be escalating their attack on Iran. Jim Rickards and Ron Paul are right. In my view, sanctions are a prelude to war and war with Iran is already underway and that will become more apparent as time goes by. That seems bullish for oil and gold for the short and medium-term.
MontyHigh, www.worldofwallstreet.us


Saturday, January 21, 2012

China, India brush aside Iran oil ban

PressTV


The permanent representatives of China and India to the United Nations say the US-led sanctions on Iranian oil sector are neither logical nor economically viable.

Chinese Ambassador to the UN, Li Baodong said that US officials should reconsider their move on sanctioning Iran's oil sector since these requests are irrational and contrary to other nations' interests.

Li added that the US should not expect any country to act against diplomatic and commercial rules and put Washington's interests ahead of its own.

He emphasized that an embargo on Iranian oil will not be constructive and will only have a negative impact on negotiations between Iran and the five permanent members of the UN Security Council -- Russia, China, Britain, France and the US -- plus Germany (P5+1).

Meanwhile, India's Ambassador to the UN, Hardeep Singh Puri praised friendly and all-out political and commercial relations between Iran and India and said such sanctions cannot affect Tehran-New Delhi ties, especially the duo's economic relations.

Singh Puri added that India is determined to expand political and economic ties with its allies including the Islamic Republic of Iran.

On December 31, US President Barack Obama signed into law fresh economic sanctions against Iran's Central Bank in an apparent bid to punish foreign companies and banks that conduct business with the Iranian financial institution.

The bill requires foreign financial firms to make a choice between doing business with Iran's Central Bank and oil sector or with the US financial sector. The legislation will not go into effect for six months to allow buyers of Iran's oil to find alternative suppliers.

The US and EU accuse Iran of pursuing a military nuclear program and have used this as an excuse to get the UN Security Council to impose four rounds of sanctions against the country.

Tehran insists that as a signatory to the nuclear Non-Proliferation Treaty and a member of the International Atomic Energy Agency, it is entitled to utilize nuclear energy for peaceful purposes.  

Friday, June 24, 2011

Shanghai Cooperation Organization (SCO) versus Bilderberg: Where are Real Decisions Being Made?

Shanghai Cooperation Organization
Global Research
Eric Walberg

As the Western elite gathered in picturesque St Moritz to grapple with pressing

world crises, the outsiders met in the bleak steppes of Central Asia.

Last week’s 10th Shanghai Cooperation Organisation (SCO) summit in the Kazakh capital Astana highlighted how the major rivals to empire, led by Russia and China -- themselves rivals, are trying to fashion an alternative to US hegemony.

The SCO is the only major international organisation that has neither the US nor any close US ally among its members, and its influence is growing across Eurasia. Leaders of member states Russia, China, Kazakhstan, Kyrgyzstan, Tajikistan, and Uzbekistan were joined by leaders from observers Iran, Pakistan, India, Afghanistan and Mongolia. Belarus and Sri Lanka have been admitted as dialogue partners, and prior to his arrival in Astana to attend the summit, Chinese President Hu Jintao visited Ukraine.

With a Chinese rhetorical flourish, the Astana Declaration stressed the goal of combatting the "three forces" of "terrorism, extremism, and separatism". The summit called for a "neutral" Afghanistan (read: no permanent US bases), supported by Afghan President Hamid Karzai, even as the US is actively discussing a post-2014 strategic partnership agreement with him. The prospect of permanent US military bases in Afghanistan lies at the core of current US-Pakistan tensions. India has indicated its aversion to "new cold war" tensions appearing in the region.

Russia and China fear that the US plan is to establish permanent bases in Afghanistan and to deploy components of its missile defence system. The SCO meeting supported Russian criticisms of the planned NATO missile defence shield underway in Europe . Plans by "a country or small group of countries unilaterally and without restriction to deploy an anti-missile system could undermine strategic stability and international security".

The summit also called for Afghanistan’s neighbours to play the leading role in improving security and helping to rebuild Afghanistan, rejecting a purely military solution. "It is possible that the SCO will assume responsibility for many issues in Afghanistan after the withdrawal of coalition forces in 2014," said Kazakh President Nurusultan Nazarbayev, echoing Russian President Dmitri Medvedev’s call "for more intensive and deeper cooperation between the SCO and Afghanistan".

Both Beijing and Moscow are already rebuilding their influence there, China in mining, and both countries in infrastructure projects and cooperation with Western forces to combat drug trafficking. "Afghanistan was the main reason the SCO was created 10 years ago, even before 9/11 forced the Americans to recognise the threat," says Duma deputy Sergei Markov. "The threat of radical Islamism being exported into our region is something we’re very familiar with. And a resurgence of that threat has got to be a major concern."

During the conference, the UN Office on Drugs and Crime (UNODC) signed an accord with the SCO to promote cooperation in fighting drug trafficking, organised crime, human trafficking and international terrorism. UNODC Executive Director Yury Fedotov said, "Countries such as Kazakhstan are on the frontline of the flow of Afghan heroin headed towards the West. The work in countering organised crime and drug trafficking, which I am pleased to see is increasingly taking on a cooperative approach." The most urgent issue is heroin trafficking from Afghanistan via Tajikistan which surged after the 2001 US invasion.

Security cooperation and economic development were described as the "two wheels" of the SCO by its General Secretary Zhang Deguang. China’s People’s Daily noted, "Among other concrete moves is the construction of a railway, highway and pipeline network linking landlocked Central Asia and its rich natural resources to the global economy." Currently a natural gas Pease Pipeline is under construction which could eventually link Iran, Pakistan, India and China, helping to overcome India-Pakistani animosity and integrate the entire region on the basis of mutual interests, carefully shepherded by China.


Tuesday, May 31, 2011

Arab League to seek full UN membership for Palestinian state

Ugly Truth
Reuters

An Arab League committee decided on Saturday to seek full UN membership for a Palestinian state in the Gaza Strip and the West Bank, with East Jerusalem as its capital, it said in a statement.

The Arab League’s peace process follow-up committee said it would request membership for the state of Palestine at the UN General Assembly’s meeting in New York in September.

Qatar’s Prime Minister Sheikh Hamad bin Jassem al-Thani speaks as Palestinian President Mahmoud Abbas (L) listens on during the opening of the Arab League Monitoring Committee in Doha on May 28, 2011.

“The committee decided to go to the United Nations to request full membership for Palestine on the 1967 borders, with East Jerusalem as its capital,” it said in a statement.

Earlier on Saturday, Palestinian President Mahmoud Abbas said there were “no shared foundations” for peace talks with Prime Minister Benjamin Netanyahu and seeking UN recognition of Palestinian statehood was his only option.

Abbas expressed concern that taking the diplomatic step opposed by the United States and Israel could result in financial sanctions and urged Arab states to fill any gap.

While he left room for a compromise, saying a resumption of peace talks on terms acceptable to the Palestinians would avoid the UN move, the remarks were some of Abbas’s bleakest yet on the likelihood of more negotiations.

Palestinian leaders have said Netanyahu’s ideas for peace with the Palestinians, outlined in a speech to the U.S. Congress on Tuesday, put more obstacles in the path of an already moribund peace process.

“We see from the conditions that Netanyahu laid out that there are no shared foundations … for negotiations. Our fundamental option is to go to the United Nations,” Abbas said in his opening remarks.

“This is no secret, we have said it to the Americans and the Europeans and the Israelis, our only option is to go to the United Nations,” he said.

Tuesday, April 19, 2011

Talks on U.S. Presence in Afghanistan After Pullout Unnerve Region

No Sunglasses
by Rod Nordland

KABUL, Afghanistan — First, American officials were talking about July 2011 as the date to begin the withdrawal from Afghanistan. Then, the Americans and their NATO allies began to talk about transition, gradually handing over control of the war to the Afghans until finally pulling out in 2014. Now, however, the talk is all about what happens after 2014.

American soldiers played video games at Kandahar Airfield. The United States will begin drawing down its forces in July.

Afghanistan and the United States are in the midst of negotiating what they are calling a Strategic Partnership Declaration for beyond 2014.

Critics, including many of Afghanistan’s neighbors, call it the Permanent Bases Agreement — or, in a more cynical vein, Great Game 3.0, drawing a comparison with the ill-fated British and Russian rivalry in the region during the 19th and 20th centuries.

It is without doubt a delicate process, and one that comes at a critical time. Afghan officials have expressed concern that the negotiations could scuttle peace talks with the Taliban, now in their early stages, because the insurgents have insisted that foreign forces must leave the country before they will deal. That they are already talking is an indication they are willing to compromise on the timing of a withdrawal — but it is hard to imagine Taliban acceptance of a lasting American presence here.
Formal talks on a long-term agreement began last month under Marc Grossman, the official who has replaced Richard C. Holbrookethe diplomat who died in December, as the Obama administration’s envoy to Afghanistan and Pakistan, and a delegation visited Kabul under the direction of Frank Ruggiero, a State Department official who ran the Kandahar Provincial Reconstruction Team until last year.

The reaction regionally was immediate. The Iranian interior minister made a rushed visit to Kabul, followed shortly by the national security advisers of India and Russia.

The Russians, though generally supportive of NATO’s role in Afghanistan, were alarmed at the prospect of a long-term Western presence.

“The Russian side supports the development of Afghanistan by its own forces in all areas — security, economic, political — only by its own forces, especially after 2014,” said Stepan Anikeev, a political adviser at the Russian Embassy here. “How is transition possible with these bases?”

American officials have hastened to assure Russia and other neighbors about their intentions after 2014. Mr. Grossman made a visit late last month to Moscow to do so. And officials from Secretary of State Hillary Rodham Clinton on down have insisted that any presence after 2014 would not mean permanent bases.

It is a “long-term framework for our bilateral cooperation,” Mrs. Clinton said in a speech to the Asia Society on Feb. 18.

“In no way should our enduring commitment be misunderstood as a desire by America or our allies to occupy Afghanistan against the will of its people,” Mrs. Clinton said, adding, “We do not seek any permanent American military bases in their country.”

The Russians, however, have complained that any talk of a foreign troop presence in Afghanistan after 2014 violates international understandings, including one made in a joint statement by President Obama and President Dmitri A. Medvedev on June 24 supporting a neutral status for Afghanistan.
Afghan officials have acknowledged, however, that the talks do countenance some sort of long-term bases after 2014, if only for the purpose of continued training of Afghan troops. “What we’re discussing is a long-term strategic framework agreement,” said Ashraf Ghani, an adviser to President Hamid Karzai who is one of the Afghan negotiators. “The U.S. has many 10- to 25-year-long agreements, a wide range of agreements.”

“The important thing now is that the sense of abandonment that was in the air last year is gone now,” he said.

One person’s long-term base is another’s permanent base, however — and in the region many people took Mrs. Clinton’s assurances as proof that the United States was not leaving, whatever the bases are called.

“A 10- or 20-years agreement can be prolonged at any time,” Mr. Anikeev said. “And we have no guarantee they’re not permanent.”

“The Americans have not been honest about this, even among themselves,” said Mullah Attullah Lodin, deputy chairman of the High Peace Council of Afghanistan, which is charged with leading reconciliation efforts with the Taliban. “One says we are not building bases, another says we are building them, and it’s very confusing.”

The big concern, he said, was that if any such agreement were reached, it would make it that much harder to enter into serious peace talks with the Taliban. “That is the first thing the Taliban demand is the withdrawal of foreign troops,” Mullah Lodin said.

Rangin Dadfar Spanta, the national security adviser to Mr. Karzai, disagreed. “Reconciliation and a strategic relationship, they are not contradictory to one another. We have the same goals, peace and stability in Afghanistan, and elimination of sanctuaries and bases for terrorism, that is for the common good.”

Despite such worries, American and Afghan officials are negotiating on an accelerated timetable, with the Americans hoping to come to an agreement by July, when the first withdrawals of some American troops are to start, diplomats say.

“The Afghans are very worried about after 2014,” said a European diplomat, who spoke on the condition of anonymity because of diplomatic delicacies. “They’re trying to extract from the West as much as they can now.”

Mr. Ghani said that Afghan officials were hoping to win agreement on the transfer of Provincial Reconstruction Teams, which dispense aid from the United States and NATO countries directly to projects in the Afghan countryside, to Afghan government control. In general, the Afghans want to see more aid money funneled through their government, and they also want to see a reduced presence of the United Nations.

Then there is the issue of how the Afghans will be able to pay for their greatly enlarged police and military, which by some estimates will require $10 billion a year to sustain come 2014 — 10 times the Afghan government’s annual tax revenues.

“The whole mindset is to get as much as possible in the course of the next couple years,” the European diplomat said. “They really understand that they won’t get as much as they used to get, and they’re desperate to get as much as they can.”

One regional diplomat, speaking on the condition of anonymity for similar reasons, said the Americans were equally concerned to keep a long-term or permanent foothold in Afghanistan for their own interests as well.

“There was a time when the Americans were struggling to find one base in Central Asia,” he said. “Here is a place where they can have all the bases they want, and Afghanistan is a place between two potential nuclear Islamic powers, Iran and Pakistan.”

“There are forces of reaction who are itching to fire the starting gun on Great Game 3.0, and the insurgents will try to exploit this,” said Mark Sedwill, the NATO senior civilian representative in Afghanistan, in a recent speech.

Reaching accord among the diplomats on a Strategic Partnership Declaration will only be a first step. Mr. Karzai has already said any such agreement would have to be put to a nationwide loya jirga, a tribal assembly that acts as referendum on important issues.

“In general, people in Afghanistan are against foreign forces,” Mullah Lodin, the negotiator, said. “I don’t think the loya jirga will ever support foreign forces in the country.”

Mr. Spanta recognized the difficulty. “We have to convince the Afghan people there is something for us in this,” he said.

Tuesday, February 1, 2011

Egypt's Unrest May Have Roots in Food Prices, US Fed Policy

A few weeks earlier, political opponents of President Hosni Mubarak had rallied to protest rising prices and to demand price ceilings on products to protect Egypt's poor.

Soaring food prices aren't the only reason that Egyptians took to the streets to try to topple their long-serving president. But they're a significant factor, and a steady surge in global commodity prices reminiscent of 2008 is sure to bring new battles over food security this year.

Protests against food prices recently rocked Jordan and Algeria. These same rising prices were partly why Tunisia's strongman, Zine El Abidine Ben Ali, fled his nation in mid-January. India and China are navigating the difficult waters of trying to control rising prices in their populous nations.

In the trading pits of commodity markets, the buzz is that many poor nations are trying to hoard wheat, corn and other staples. Such stockpiling has added to the bullish sentiment that's driving commodity prices even higher.

"Countries are hoarding grain supplies right now because they don't want to see what's happening in Egypt happen to them," said Phil Flynn, senior market analyst for commodities trader PFG Best in Chicago.

The United Nations Food and Agriculture Organization took the unusual step last Wednesday of updating its guide for policymakers in developing nations. It urged nations to avoid "policy actions that might appear useful in the short term but could have harmful longer-term effects or even aggravate the situation."
Such actions in the past have involved export restrictions by food-producing nations, which aggravated tight global supplies in 2008 and led to a spike in prices. By restricting exports, these nations, which include Argentina and Ukraine, drove down domestic prices, discouraging production and causing even tighter global supplies.

The Food and Agriculture Organization compiles an index of basic food prices around the globe, and it peaked in December.

"With this new price shock only two years after the crisis in 2007/08 there is a serious concern now about implications for food markets in vulnerable countries," Richard China, the director of the U.N. organization's policy and program development support division, said last week in announcing the updated guidelines.

For U.S. farmers, Egypt presents the eighth largest export market, much of it wheat sales, since the country is the world's leading wheat importer. American wheat and corn are sold across North Africa and the Middle East, prompting worries by U.S. farmers that Egypt's problems will spread throughout the region.

Wheat prices have risen by more than 70 percent over the past 12 months, and corn prices climbed in mid-January to their highest level since July 2008, a period when global food prices soared. They've since dipped slightly, to just under $6.60 a bushel Monday, but they're expected to remain volatile, since corn production is expected to drop 14 percent globally, according to the U.S. Department of Agriculture.

U.S. corn farmers traditionally have had 80 percent of the Egyptian market, although that dipped to 50 percent last year. There's less concern about current shipments, especially since Egypt is thought to have adequate inventories for now. The focus is more on what sort of government emerges there.

"I think, longer term, it is really what's going to happen with the transitional government. Is that some sort of continuation," said Chris Corry, the senior director of international operations for the U.S. Grains Council, which represents U.S. farmers.

The issues in Egypt right now are basic, he said, noting, "The government must function for banks to be open, for payments to get transacted, for commodities to be purchased."

A number of factors are combining to drive up the global prices of wheat, corn, soy and other commodities. Some of the story is weather-related. Argentina, Australia and Pakistan have suffered from heavy rains, which have damaged crop production. Russia is recovering from a devastating drought last year.

Another part of the story is demand. Big emerging markets such as China, India and Brazil continue to soak up greater shares of global supplies, and the recovery in the U.S. economy, the world's biggest, is accelerating.

A third explanation that's gaining acceptance is that the U.S. Federal Reserve inadvertently exacerbated the price picture for grains and other commodities. The Fed has been engaged in what economists call "quantitative easing," buying U.S. Treasury bonds to attack the threat of deflation - the phenomenon of falling prices across an economy.

Quantitative easing has the effect of raising asset prices, whether they're the prices of stocks or what traders are willing to pay for commodities such as wheat or corn. One of the side effects of this policy is that the dollar weakens against other currencies, and that's helped push up the global prices of commodities.

"The truth of the matter is that when the Federal Reserve moved on the quantitative easing, it did export inflation to a lot of these emerging markets," Flynn said. "There's no doubt that one of the side effects of the weak dollar and quantitative easing has been rising commodity prices. It helped create this bullish environment for commodities. This is a very delicate balancing act."

It's a view shared by Ed Yardeni, a veteran financial market analyst, who reached a similar conclusion in a research note to investors Monday. He joked that Fed Chairman Ben Bernanke should be added to a list of revolutionaries, since his quantitative easing policy, unveiled last year in Wyoming, has provoked unrest and change in the developing world.

"Since he first indicated his support for such a revolutionary monetary change in his August 27, 2010, speech at Jackson Hole, the prices of corn, soybeans and wheat have risen 53 percent, 37 percent and 24.4 percent through Friday's close," Yardeni noted. "The price of crude oil rose 19.8 percent over this period from $75.17 to $90.09 this (Monday) morning. Soaring food and fuel prices are compounding anger attributable to widespread unemployment in the countries currently experiencing riots."

Although the policy was announced in August, the Fed didn't begin purchasing bonds until November. It's expected to buy $600 billion worth through June, in hopes of driving down the return on long-term bonds and forcing more investor risk-taking in the economy.

"There are a lot of different sticks in the fire here," said Jerry Gidel, the president of Midland Research Inc., which provides assessments of financial risk. What happens to the price of one food crop affects others, he added, because "it is a human-consumption commodity, and things can get emotional, and they do get emotional. And right now, we're kind of in one of those periods."

Saturday, November 6, 2010

The Real Reason For Obama's Trip To India: The Sixth Biggest Arms Deal In U.S. History

Business Insider

President Obama is traveling to India this weekend to make a $5 billion sale for 10 of Boeing's C-17 cargo planes. If India signs the contract, this would be the sixth biggest arms deal in U.S. history. This and the pending $60 billion deal with Saudi Arabia will certainly help to jump-start the economy, as they have for the past fifty years.
We've identified the biggest sales since 1973 with help from William Hartung at the Arms and Security Initiative at New America Foundation.
"There's no question it's big business," he said. "But relative to the overall size of our economy and other things we export it's not like these deals will make or break us."

See More

Tuesday, October 19, 2010

Pakistan intelligence services 'aided Mumbai terror attacks'

Militant arrested last year described dozens of meetings between ISI officers and senior Lashkar-e-Taiba operatives

Pakistan's powerful intelligence services were heavily involved in preparations for the Mumbai terrorist attacks of November 2008, according to classified Indian government documents obtained by the Guardian.

A 109-page report into the interrogation of key suspect David Headley, a Pakistani-American militant arrested last year and detained in the US, makes detailed claims of ISI support for the bombings.

Under questioning, Headley described dozens of meetings between officers of the main Pakistani military intelligence service, the ISI, and senior militants from the Lashkar-e-Taiba (LeT) group responsible for the Mumbai attacks.

He claims a key motivation for the ISI in aiding the attacks was to bolster militant organisations with strong links to the Pakistani state and security establishment who were being marginalised by more extreme radical groups.

Headley, who undertook surveillance of the targets in Mumbai for the operation, claims that at least two of his missions were partly paid for by the ISI and that he regularly reported to the spy agency. However, the documents suggest that supervision of the militants by the ISI was often chaotic and that the most senior officers of the agency may have been unaware at least of the scale and ambition of the operation before it was launched.

More than 160 people were killed by militants from LeT who arrived by sea to attack luxury hotels, a Jewish centre, a café, a hospital and the main railway station in Mumbai, the Indian commercial capital. Casualties included citizens from 25 countries, including four Americans killed and seven Britons injured. The attacks dominated media for days and badly damaged already poor Indian-Pakistan relations.

European and American security services now fear that LeT, which has thousands of militants, runs dozens of training camps and has extensive logistic networks overseas, is moving from what has been a largely regional agenda – focused on the disputed Himalayan former princely state of Kashmir – to a global agenda involving strikes against the west or western interests. The documents suggest the fierce internal argument within the organisation over its strategic direction is being won by hardliners.

Headley, interviewed over 34 hours by Indian investigators in America in June, described how "a debate had begun among the terrorist outfits" and "a clash of ideology" leading to "splits".

"The aggression and commitment to jihad shown by several splinter groups in Afghanistan influenced many committed fighters to leave [LeT]," Headley said. "I understand this compelled the LeT to consider a spectacular terrorist strike in India."

Headley, who changed his name from Daood Gilani, told the investigators that the ISI hoped the Mumbai attack would slow or stop growing "integration" between groups active in Kashmir, with whom the agency had maintained a long relationship, and "Taliban-based outfits" in Pakistan and Afghanistan which were a threat to the Pakistani state.

"The ISI … had no ambiguity in understanding the necessity to strike India," Headley is reported to have said. The aim of the agency was "controlling further split in the Kashmir-based outfits, providing them a sense of achievement and shifting … the theatre of violence from the domestic soil of Pakistan to India."

Headley describes meeting once with a "Colonel Kamran" from the military intelligence service and having a series of meetings with a "Major Iqbal" and a "Major Sameer Ali". A fellow conspirator was handled by a Colonel Shah, he claims. Headley also alleges that he was given $25,000 by his ISI handler to finance one of eight surveillance missions in India.

However, Headley describes the ISI director general, Lt General Shuja Pasha, visiting a key senior militant from LeT in prison after the attacks in a bid "to understand" the operation, implying that, as many western security agencies suspect, the top ranks of the agency were unaware of at least the scale of the planned strike.

The Pakistani government has repeatedly denied any involvement of any security official in the Mumbai attacks. Last night, an ISI spokesman told the Guardian the accusations of the agency's involvement in the Mumbai attacks were "baseless".

LeT was banned in Pakistan in 2002. Jamat-ud Dawa, the social welfare wing of LeT, has been blacklisted in the wake of the Mumbai attacks although it continues to function.

The revelations could prove embarrassing to the US government as well as to the Pakistanis. Reports in American newspapers over the weekend claimed that Headley's wife had tried to alert American authorities to her husband's activities but had been ignored.

Tuesday, October 12, 2010

Pakistan's nuclear arms push angers America

U.K. Telegraph

Pakistan has been secretly accelerating the pace of its nuclear weapons programme, infuriating the US which is trying to cap worldwide stocks of fissile material and improve fraught relations with a fragile ally in the Afghanistan war.

The Institute for Science and International Security, a Washington-based nuclear watchdog, has obtained satellite images showing that a row of cooling towers at Pakistan's secret Khushab-III reactor has been completed. This suggests the plant could begin operation within months, allowing Pakistan substantially to increase its stockpiles of weapons-grade plutonium.

Last year, Barack Obama, US president, called for "a new treaty that verifiably ends the production of fissile materials". In response, the Conference on Disarmament, a 64-nation coalition that negotiated the 1992 Chemical Weapons convention and the 1996 Comprehensive Nuclear Test Ban Treaty, agreed to negotiate a Fissile Materials Cut-off Treaty, intended to cap production of weapons-grade enriched uranium and most forms of plutonium.

Khushab-III is the latest in a series of reactors built to feed Pakistan's nuclear weapons programme. Khushab-II, located next to its new sister plant, became operational in February. The plutonium produced at the complex allows for the construction of small but lethal weapons: a single kilogram can produce an explosion equal to 20,000 tons of conventional explosives.

Work at Khushab III has forged ahead even as Pakistan struggles to cope with floods that have inflicted damage estimated at £27 billion–and amid mounting concerns over the long-term security of the strife-devastated country's nuclear arsenal.

Pakistan argues that its nuclear weapons programme is necessary to counter the superior conventional forces of India, its historic adversary. In a recent report published by the prestigious Bulletin of Atomic Scientists, Hans Kristensen and Robert Norris estimated it had assembled 70-90 nuclear warheads to India's 60-80, and had produced enough fissile material to manufacture another 90 more.

The Obama administration is also disturbed by Chinese plans to build two new nuclear reactors in Pakistan, bypassing Nuclear Suppliers Group (NSG) rules that bar sales of nuclear equipment to states that have not signed the Nuclear Non-Proliferation Treaty (NPT). India, which along with Israel and Pakistan has refused to sign the NPT, recently obtained a waiver from the NSG allowing sales under international safeguards.

China, however, says it does not need NSG permission to sell reactors to Pakistan, arguing it had committed to the deal before it joined the NSG in 2004–a claim the United States disputes.