http://noiri.blogspot.com/2005/11/mullahs-threat-not-sinking-in.html
 

Friday, November 04, 2005


Mullahs'
<http://noiri.blogspot.com/2005/11/mullahs-threat-not-sinking-in.html>
Threat Not Sinking In 


Indications of radical changes in the dynamics of the 3-month-old Iranian
government, politically, philosophically and in their potential to do
irreparable global damage without flinching or concern has begun sending
shivers down some analysts' spines. However, this has yet to reach policy
decision makers or the mass media.

Iran's Supreme Ruler, "ayatollah" Ali Khamenei's hasty revisions of the
national ruling structure, delegating some of his own authority to the
Expediency Council, chaired by rival "ayatollah" and former President
Hashemi Rafsanjani, reflects unusual action to counter-balance the
power-grab by newly inaugurated President Mahmoud Ahmadi-Nejad.

The unannounced moratorium on policies and procedures of all Iran's
government ministries has been equally attributed to Rafsanjani's efforts to
take control of Judicial, Legislative and Executive bodies through the
broadened Expediency Council powers - and to Ahmadi-Nejad's cabinet
implementing new regulations that suit their views. Specially, after
warnings to the Expediency Council from his hard-line allies in the Majliss
(parliament), not to mess with the Legislative system.

Persistent reports emanating from Tehran of solid rocket fuel capability and
long range Shahab-3 missile tests, with emptied North Korean designed
nuclear warheads, providing serious concerns, the nuclear component has
begun taking second place to Iran's ability, even unintended, to damage
global economies resulting (in worst-case scenarios) in worldwide financial
meltdowns.

The 27-year, overtly hostile but comparatively "reasoned" approach toward
the Western world and foreigners by the previous generation of senior
Iranian Mullahs, with their accumulated overseas personal financial
interests - even overflowing bank accounts outside Iran, has clearly ended.
This has yet to permeate onto the desks of leaders in the Western world.

Analysis and evaluation based on prior status quo and parameters, with some
adjustment for new players - as was the case with former changes of
President and Majliss (parliament) deputies - no longer holds water. Any
more than understandable, logical evaluations had a place with genocidal,
paranoid Pol Pot of Cambodia.

Greater and lesser indicators mentioned below of mindsets, policies and
philosophy, show "C" note changes, particularly to SME's (subject matter
experts) on what drives "neo-Iran".

OVERVIEW

Less than three months ago, on August 15, 2005, Mahmoud Ahmadi-Nejad took
office as the new "selected" President of the Islamic Republic of Iran with
huge doubts over validity of the elections.



. He immediately purged nearly all senior governing positions of older
generation clerics and officials and replaced them with his military
colleagues of the elite Islamic Revolutionary Guards Corps (IRGC) - about
350,000 strong, in which, prior to becoming Mayor of Tehran, he had been a
commander.

. His neo-Islamic Republic, harking back to Khomeini times, has instructed
all airports and domestic or international airlines operating in Iran to
remove all foreign words or characters from their signs at ground locations
across the country. In the same vein, clothing designers, hired for this
purpose, have started creating a national Islamic style for everyone to
wear. Strict imposition of restrictions on movies and audio, allowed to
lapse to some extent by the previous President Mohammad Khatami, has been
re-instated.

. Bassiji paramilitary (anti-demonstration and Islamic enforcement strike
forces) have had their authority widely expanded to suppress dissent without
any restraints and for the past month, Revolutionary Guards have begun
appearing at posts on street corners and in a highly increased number of
patrols. (Still unclear was the
showing up of only 1,400 Bassijis at an event when 20,000 should have
appeared, though they have continued attacking students and by-standers with
knives and clubs with their customary brutality).

. Residents of Tehran and its outer suburbs of late witnessed unannounced
military exercises that involved the use of live munitions and firepower -
and on an almost nightly basis in the hills East of Tehran. Officials have
tried to explain such activity as an eradication of communities and
townships around Tehran, populated by criminal elements fleeing justice and
becoming a threat to national security.

. Brigadier-General Mohammad Kossari, head of the Security Bureau of the
IRGC stated, "Iran intends to become a superpower and will drive all foreign
forces out of our region". What was previously sheer hyperbole now has a
basis in serious executive policy and planning in Iran's new government.

. Hassan Abbasi, Head the Center for Security Doctrines Research of the IRGC
has become Ahmadi-Nejad's prime advisor on Foreign Affairs. He lately
announced, "We have a strategy drawn up for the destruction of Anglo-Saxon
civilization". (An attitude supported by the tenets of Hojatieh - see
below).

. Ahmadi-Nejad has declared a plan to create an Oil Bourse (Exchange) in
Iran to unlink oil pricing from the U.S. Dollar and use the Euro or barter
instead, thus to break any grip the West and the Dollar have on oil supplies
or trade and make Iran the top oil and natural gas broker within the region.
(Unlikely to succeed but perhaps effective enough on a short-term basis to
trigger a dollar crash which could destabilize global solvency).

. Having studied Urban Development at the University of Science in Tehran,
Ahmadi-Nejad has started drawing up plans to relocate 25 million rural
residents to existing urban centers to facilitate less costly provision of
utilities and services. (Grandiose Stalinist or Hitlerian methods,
exhibiting simplistic disregard of unintended consequences and social side
effects).

. After his inauguration, Ahmadi-Nejad visited the grave of his hero,
Ayatollah Rouhallah (soul of Allah) Khomeini then went to kiss the hand of
his mentor and spiritual guide, Ayatollah Mesbah Yazdi, leader of the
Hojatieh sect of Islam, who was instrumental in elevating Ahmadi-Nejad to
his Presidential position.

MAJOR NEW COMPONENT

The newest and most dangerous component that lends credibility to the
potentially mindless chaos and destruction that Ahmadi-Nejad and his clique
could trigger comes from a look at his mentor, Ayatollah Mesbah Yazdi and
his sect's deep-rooted beliefs.

The Hojatieh philosophy, considered by mainstream Shia Moslems as a lunatic
fringe, was too much even for extreme hardliner Ayatollah Khomeini, whose
disapproval sent them into underground, clandestine status in 1983, some
four years after the Islamic revolution in Iran.

Censure from a man as ruthless and radical as Khomeini, who insisted that
the Prophet Mohammad had not completed Allah's work in the world and that he
(Khomeini) was born to finish the job of bringing Islam to its rightful
place (as the only religion and to destroy unbelievers) - indicates how far
off the Islamic radar the Hojatieh function.

Ahmadi-Nejad, a Khomeini adherent throughout his adult life, transitioned to
his present, previously unpublicized role of acolyte to Ayatollah Mesbah
Yazdi, himself a pseudo-Khomeini supporter, though not of Khomeini's Islamic
revolution, in total concealment. (The Hojatieh took no part in the 1979
Khomeini revolution).

Nicknamed the "crocodile" and often referred to as the "crazy" Ayatollah,
Mesbah Yazdi echoes Khomeini saying, "Islam permits spilling the blood of
anyone who insults Islamic sanctities and no court is needed".

After his 1979 return to Iran, in early days, a companion asked Khomeini how
he wanted the Ministry of Justice restructured and he replied, "Anyone who
is against me is against Allah and must be killed where they stand. No other
justice system is required".

HOJATIEH

Understanding the abruptly dominant Hojatieh philosophy becomes essential
for any current analysis. Formed in the 1950's at the time of the late Shah,
the group's primary motivation was to eradicate the Bahai faith and all its
members in Iran over a philosophical clash about Imam Mehdi - the Lord of
all Time and 12th descendant of Prophet Mohammad.

Shia Islam believes that the 12th Imam, a child named Mehdi, hid down a well
1,300 years ago and disappeared but will return to redeem the world. The
Bahai religion, which declassified documents from the British Foreign Office
appear to indicate Britain founded and organized artificially to splinter
and weaken Iranian clergy influence, consolidated against British presence
in Iran, claims their Prophet, Sheikh Baha'ollah, as the 12th Imam, who has
already returned.

As devotees of the 12th Imam, the Hojatieh firmly believe he will return
only when the world contains enough oppression, misery, tyranny and sorrow
to warrant his coming. To hasten and facilitate the return, they believe in
spreading evil, tyranny and misery and argue that standing in the way of all
these delays his coming and their redemption.

Ayatollah Mesbah Yazdi, the power behind the scenes now helps formulate Iran
policy, through President Ahmadi-Nejad, his submissive and a man called
Mojtaba Somreh Hashemi, the President's mentor without whom, much to their
chagrin, nobody in senior government can make a decision. Nor start a
Cabinet meeting or access the President himself. Hashemi represents
Ayatollah Mesbah Zadeh and had the same role when the new President was
still Mayor of Tehran.

The Hojatieh receives full co-operation of belligerent, military
Revolutionary Guard commanders - suddenly in positions of national executive
authority as Cabinet Ministers. They brook no half measures, instantly ready
to suppress any internal resistance - clerical or otherwise - including
removal of Supreme Ruler Khamenei himself.

The neo-Iran status presents a very different scenario from what we faced,
uncomfortable as it was with the Ayatollahs in general, for the past quarter
century. A recent cabinet meeting evidences the unconventional mindset of
the new players running Iran and now addressing the world stage from their
eyes:

President Ahmadi-Nejad's first deputy, Parviz Davoudi, submitted and the
cabinet ratified in a formal meeting, an agreement between the cabinet
ministers and the Shia 12th Imam, Mehdi, Lord of All Time, in a similar
fashion to the pact they had all signed with Ahmadi-Nejad upon taking
office.

The question then arose how to obtain the long dead Imam's signature on the
document for ratification. Minister of Culture and Islamic Guidance, Saffar
Harandi finally dropped the agreement into the Jamkaran well into which they
believe Imam Mehdi descended 1300 years ago, where it joined tons of letters
and requests from pilgrims over the centuries.

A large number of Ahmadi-Nejad's close allies are talking about preparing
the grounds for the hidden Imam's imminent manifestation. Any hope for
logical international policies from these leaders may be too much to expect
- or for them to understand.

Total disregard for the well-being of the world community, so incredible a
concept, even impossible to digest for Western minds (as was Pol Pot), has
become a readily acceptable philosophy of Iran's new active rulers. With the
reverberations of religious tenets of "ultra-conservative" Ayatollah Mesbah
Yazdi, preaching apocalypse to his choir, encompassing everyone and
everything.

The semi-clandestine nature of the Hojatieh over time, in no way hampers
Mesbah Yazdi's influence in today's Islamic Iran. Apart from long roots in
the poorer, superstitious populace through his Khomeini Institute, he was
one of only two Ayatollahs to support Supreme Leader "ayatollah" Ali
Khamenei in his bid to succeed Khomeini when every other Ayatollah, except
Iraqi born Ayatollah Hashemi Shahroodi, the current Chief of Judiciary,
rejected Khamenei's theological credentials. To become Supreme Leader has a
prerequisite of being a Grand Ayatollah (Emulation Source for Shiite
faithful).

As reward, Mesbah Yazdi requested and received funds to found and run the
Imam Khomeini Institute to spread the teachings of Khomeini - providing a
vehicle to gain support and standing in conventional Islamic circles - while
strengthening the radical Hojatieh network.

AHMADI-NEJAD

The new Iranian President's personality profile provides another important
input to the Iranian challenges the world could inevitably face, unless, as
one SME notes, circumstances change dramatically or a nuclear take-out of
the Islamic Iranian regime occurs. Israel seems increasingly willing to
undertake action against Iranian facilities and despite denials, U.S.
military strategists appear to have a massive conventional bombing plan of
some 5,000 specific locations on their charts.


1. Still in his mid-teens when Khomeini took over, Ahmadi-Nejad is a product
of post-revolutionary Iran and has no perception of the West except as an
enemy to be confounded and defeated. Studying Urban Development and rising
to Mayor of Tehran did not provide him grounding for even national level
concepts, nor has he any foreign affairs experience at all. His idea to move
25 million Iranians from rural areas to existing urban locations indicates
simplistic, linear thinking.

2. Coming from impoverished circumstances, where his coppersmith father
provided only a minimalist life, the new President has lived off very little
all his life, including a meager military salary. Unlike most senior Mullahs
and their entourages, who over the past 25-years have acquired riches,
invested in overseas real estate and other projects and often have sizeable
accounts in offshore banks, consequently a stake in keeping global economies
steady, Ahmadi-Nejad has nothing to lose or to gain by factoring in "time
wasting" and unfamiliar international components.

3. His strong proclivity to Ayatollah Khomeini's Valiate-Faghi guiding
principles, which propound Islamic clerical rule and dominance of the world
and his dedicated religious conduct as a daily part of his military
lifestyle in the IRGC, easily puts him in the category of a religious
fanatic, though secular in official title.

The underpinning to the problem is Iranian in nature, but the ability for
Iran to do serious harm stems more from a combination of global weaknesses.

World currency markets, oil unlinking radically from the dollar (potentially
to some extent through the Iranian Oil Bourse plan) and the political and
personal ambitions of leaders in Europe, Russia, China and the Islamic
world, combine to become a serious peril. Significantly, terrorist groups
have also begun switching from purely bodily or property harm to attempting
to destroy the financial well being of target countries.

Viewed in perspective, emerging anxiety about "neo-Iran" ponders a bizarre
situation, far from wild conjecture, that will require drastic action to
prevent. Existing dynamics might, at best, bring far reaching doldrums and
financial pain to Europe and advanced Western nations, similar to that
encountered in the USA during the Jimmy Carter administration, intertwining
with aspects unrelated to Iran's intentional efforts to cause harm.

CURRENCY

The U.S. Dollar plays the role of the world's primary currency and nothing
else can presently substitute for the dollar's mandatory use for oil
purchase and oil trading, which has to be in dollars. Nevertheless, based on
supply and demand principles, U.S. money is about 40-50% overvalued.

Central Banks find themselves crammed with a surplus of dollars, which they
hold beyond logical considerations just to maintain equilibrium in world
trade and commodities - mostly out of self-interest and self-preservation.

Quite to the contrary, Ahmadi-Nejad and his clique have neither such
compunctions nor personal wealth to protect. A negative run on the dollar
would change the economic face of the earth and delight the Hojatieh mindset
and religious aims of spreading misery.

A glut of dollar holdings by Central Banks and among Asian lenders (China
reportedly has hundreds of billons in U.S. Treasury bonds) plus the current
low interest rate offered to investor/lenders by the USA has been putting
the dollar in jeopardy for some time.

Including, potentially, by some inexperienced Third World central bank
employee, who seeing an over stock of dollars in the bank's currency
portfolio, decides to diversify their holdings.

Were that person to offer several billion dollars on the market, they would
trigger a panic sell-off by everyone else. A twitching finger on currency's
hair-trigger can shoot down the dollar without any purposeful ill intent.
Most estimates place the likely drop to "floor levels" at a rapid 50% loss
in value for a presently 40% overvalued Dollar.

Not too long ago, a mid-level official of the Korean Central bank casually
mentioned currency "diversification" at an obscure lunch. The U.S. Stock
Market fell by 100 points in 15 minutes, because of an implied desire for
Korea to decrease its dollar holdings. What would the drop have been had he
actually sold dollars?

When a group called "Long Term Capital Management", a hedge fund of
derivatives - something fully understood by probably less than half a dozen
people in the world - failed, U.S. Federal Reserve Chairman, Alan Greenspan
had to help bail it out to save the dollar and the U.S. economy.

This fund had Nobel Prize winning economists writing their trading
algorithms and top-drawer traders involved and still went down in flames.
What about the expertise level of other hedge funds trading daily in the USA
- some 8,000 of them?

About $6,000 Billion (easier to conceptualize as "huge" instead of a mere
"six trillion") worth of derivatives trade on the international market -
daily - so the already built-in prospect of disaster surpasses all possible
defensive safety measures.

Compare this daily volatility to the annual USA national budget of
approximately $1,900 Billion (less than two trillion) of revenues and $2,350
Billion (2.35 trillion) in expenditures.

While economists scoff at the currency market being unable to right itself
in the face of fluctuations, if left to its own devices, introduce into this
at best "delicately balanced" economical environment, a hostile "Hojatieh"
Iran's lack of any desire or motivation to help prevent global economic
mayhem.

OIL BOURSE

While a regional Oil Exchange attempted by Dubai failed, partly because they
play by international rules and monetary exchange norms, Iran's Bourse, in
Euros or in barter trade agreements and Hojatieh willingness to sacrifice
the world and its own people to achieve its religious ends of bringing back
their 12th Imam, presents a special set of givens. Specifically in the area
of damage to world financial stability, as opposed to a conventionally
deemed "successful", venture for Iran.

Experts from the International Petroleum Exchange (IPE) and New York
Mercantile Exchange (NYMEX) have apparently already confirmed the
feasibility of the project, bearing in mind Iran's much greater reserves of
petroleum products with which to operate and weight the market.

Realistic argument posits that the Iranian oil fields are old and require
huge investments to continue production or to keep them at anywhere near
current levels. New oil fields will take time to come online and hamper the
speed of Iran's negative activity. In addition, Iran's natural gas fields,
the second largest reserve in the world after Russia, have yet to be
developed fully and cannot provide a big enough supply to make a significant
immediate difference in the markets.

Because U.S. sanctions on the sale of American technology to Iran, the most
modern systems for effective, large scale liquefaction of natural gas have
been denied to Iran and hampers their ability to bring important liquid
natural gas prominently into the mix.

While the Bourse may be wishful thinking as a constructive revenue source
for Iran, according to Western standards of logic and assessment of success,
missing from the equation of production targets and capability is that
oil-currency - not oil or natural gas itself - is the principle fulcrum and
danger factor.

If the Euro became the reserve currency and choice of oil producing
countries, the U.S. would have to purchase Euros to purchase oil, the
reverse being the case today with countries having to pay a "Dollar Tax" to
buy oil in dollars.

Experts agree the effect over only a very few years would be devastating to
the status of the dollar globally. Then, Euros (in their role as
petro-currency) would affect the U.S. Dollar, U.S. economy and the interest
rates America must offer to attract buyers. Former U.S. Reserve Chairman
Paul Volcker has already placed the likelihood for a Dollar crash in the
next five years at 75%.

The Iranian Oil Bourse's trade in Euros instead of dollars could possibly
hasten the crash and the percentage of likelihood. Some feel Volcker was
unable to assess Federal Reserve matters knowledgeably but with experts like
George Soros and Warren Buffet putting their own billions into betting
against the dollar, Volcker's comments gather strength.

If major oil and natural gas supply and trade quantities become easily
available only in Euros or barter, Central Banks will have ever less reason
to overstock their portfolios with U.S. currency and will eventually begin
replacing unwanted Dollars with necessary Euros, unleashing a dollar decline
of great proportions.

Any crash would bring Iran, with a wealth of oil and natural gas reserves
with which to barter with China, Russia, India and Far East nations, to the
fore as a new superpower, in a future scenario where money or devalued
currencies might have much less, little or even no value.

The latest flavor of Islamic Republic would suffer only tangentially and try
to obtain all their needs through barter or exchange. Their life styles
would remain similar to what they had until very recently as military men
and whether the populace is unhappy - preferably so for the Hojatieh - means
little or nothing in their big picture.

At very best, the USA would enter another Carter administration era
financial pattern:



1. Interest rates were so high nobody could afford to finance a house, so
this market sector, like many other big-ticket items such as automobiles,
slowed to almost a halt in some instances.

2. Grocery items had multiple superimposed price stickers as the cost of
goods rose faster than customers bought them. Imported retail merchandise
normally sells or distributes through national chains like Walmart or food
chains, so a drop in the dollar makes these more expensive for the buyer and
leads to layoffs as the retail chains find their sales volumes and profit
margins eroded.

3. The price of energy shot up so much people resorted to wood burning
stoves to stay warm at a price they could afford. The quality of life went
down.

4. People on fixed incomes could no longer afford to live and the more
solvent could not keep abreast of rising prices and interest rates. A drop
in the dollar immediately cuts into the value of saved money.

5. Running a business became almost impossible as the price of goods and
materials skyrocketed. Sales to a greatly less solvent market plummeted and
marketing assumptions needed for advertising, budgeting and planning became
wild guesses at best.

What might happen if the dollar devalued rapidly? Global ruin.

With economies so interdependent and interwoven, a global not just American
Depression would occur with a domino effect throwing the rest of world
economies into poverty. Markets for acutely less expensive US exports would
never materialize.

The result, some SME's estimate, might be as many as 200 million Americans
out of work and starving on the streets with nobody and nothing able to
rescue or aid them, contrary to the 1920/30 Great Depression through soup
kitchens and charitable support efforts.

Iran would most likely intentionally sabotage any return to stability and
market balance/adjustment with their fossil fuels; their newfound nuclear
deterrent probably discouraging use of force against them until too late.

A close look shows Ahmadi-Nejad holds the key to throwing the world into the
tribulations of the Weimar Republic of Germany after World War I. High
inflation and interest rates drove the value of the Mark into the ground and
allowed Hitler to present himself as a savior.

To provide an adequate cash flow to the working class, Hitler promised to
pay them once a week, then twice a week, then once a day. When this failed,
he allowed workers two hours off work every day to trundle wheelbarrows full
of German currency, which barely sufficed to buy a loaf of bread.

Iran succeeding in unlinking the Dollar as the primary currency for oil
purchases, were it to occur, creates the same outcome for the USA and
consequently within short time frames for the rest of the civilized world.

To deny history repeating itself with Ahmadi-Nejad's Hojatieh minded
governing group filling in for Hitler, suggests a refusal to face and
counteract an indescribable menace beyond the reach of Western logic but
totally in alignment with this specific brand of Islamic fervor to
intentionally create an apocalypse. Then to impose Islamic rule on a
shattered world.

CONCLUSION

Apart from the use of nuclear arms by the West to bring down the new regime
in Iran, only an internal effort by the old-guard Ayatollahs to overcome
Ahmadi-Nejad and his allies, at the clear risk of a civil war they would
lose, has a hope of preventing a potential global Depression.
Few other counter measures come to mind. Mostly because of the shortcoming
of the global "family" of nations to withstand mindless nihilism and an
untrammeled desire to destroy in the name of their 12th Imam.

When Iran's lately announced pull back from subsidizing refined gas prices
domestically and import of this fuel takes hold on the population, who will
suddenly be unable to afford to operate vehicles, the dissatisfaction could
translate into riots and open a new window to remove the Islamic regime of
whatever flavor.

In-depth bombing, specifically of all Iranian military and nuclear
facilities at that time - possibly the 5,000 locations mentioned above -
would weaken or remove any government ability to suppress the riots and
allow a smooth overthrow of the current regime.

The unanswered question - as was the case in Gulf War I with Iraq and Saddam
Hussain - will be with what or with whom to replace it.

FrontPageMagazine.com
<http://www.frontpagemag.com/Articles/ReadArticle.asp?ID=20065>  November 4,
2005


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