Thursday, December 18, 2008

USD = Toilet Paper


It Is So Stupid To Borrow US Dollar "Toilet Papers" For Trade Finance.

There Can Be Only A Credit Crunch For Dollars If You Are Stupid Enough To Want To Be Paid And To Pay In Dollars.

Otherwise, There Is Only An Illusion Of A Global Credit Crunch.

This Is The Global Con Game By Bernanke, Paulson,.




It may have made some sense, post-World War II to dollarise international trade when the so-called “Free World” was supposedly threatened by the “Communist Bloc” and the Imperial United States was offering “protection” in exchange for financial dominance.

The imperial design for financial dominance was the Bretton Woods dollar reserve currency scheme.

Since those days, the US has been abusing its financial power by the use of its greatest invention, the “toilet paper printing press” (now, the modern “electronic printing press”) to issue irredeemable fiat money.

Now the world is flooded with trillions of this toilet paper, namely US dollars.

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The US Superpower is at the very precipice of the abyss and a wrong move will plunge it into the black-hole of financial Armageddon.

The world will not face Armageddon, only the US. The rest of the world will suffer pain, deservedly so, for being so stupid in believing in the use of US toilet papers as money!

To avoid this catastrophe, Ben Bernanke and Paulson as directed by their Shadow Money-Lender masters have devised an insidious scheme. The ultimate con-game!

Basically, what they have done is to try to turn a weakness into perceived strength.

Let me explain.

Countries have been so used to trading in dollars that they cannot think otherwise. They continue to borrow dollars to finance their imports. Their corporations continue to borrow dollars to finance their business expansion. It is as if the world is addicted to dollars, as a drug addict is addicted to cocaine and or crack!

The world has been brainwashed into thinking that without the US toilet paper, their global economy would come to a grinding halt.

How stupid!

Yet this is exactly the state of mind of governments and central banks all over the world. China is a case in point: blind reliance on the US dollar. But fortunately, they have other strengths which will see them through this painful period.

Taking advantage of this temporary idiotic global mindset, the Fed and the US Treasury have deliberately triggered a credit crunch for US dollar denominated toilet papers. The major global banks are hoarding the toilet papers and with-holding cross-border financing of every kind.

There is an ocean of toilet paper (literally in the trillions) but there is now created, a deliberate shortage of these very same toilet papers.

But where is the money? There is no money. It is an illusion!

What a ridiculous contradiction. But that is the present reality. The Fed has stated that they will pump US$8.5 trillion to resolve the crisis! You have to give credit where credit is due. This is indeed a brilliant con-game and the whole world has fallen for it hook, line and sinker – almost the whole world!

I refuse to accept this state of affairs.

Yet, the Nobel Laureates in economics have missed this stark reality by a thousand miles and are coming up with all kind of theories for the present global credit crunch of US toilet paper. Alternatively, it may be that as paid-scribes, they have been directed to spew economic nonsense to confuse other economists.

How was this illusion set up?

This happened when all of a sudden, and in total connivance, Brazil, Mexico, South Korea and Singapore got into the act by entering into swap facilities with the FED, each requesting a hefty US$35 Billion to “overcome their liquidity problems.” These countries could not get enough toilet papers! Wow!

Even the great magician Houdini would not have come up with this grand illusion of shortage in currency when there is an ocean of funny money. But it is an illusion and a stupid one at that.

So now, Bernanke and Paulson is advertising to the whole world, that they are prepared to do anything and use all financial weapons, including financial nuclear weapons to defeat the crisis.

For those countries that are short of toilet papers, the US will be the global guarantor and will be willing to lend trillions of toilet papers to help them weather the financial crisis and the credit crunch. How generous of the FED and the US Treasury. But there is a catch.

The catch being – countries must continue to use the worthless toilet papers in global trade.

In one masterful stroke, the US has created an artificial demand for dollars thereby rescuing in the short term the plunging value of the dollar.

Since the global banks are not willing to lend and are insolvent, the mighty FED, the nasty and abhorrent creation of the global Shadow Money-Lenders, will be the lender of last resort to the whole world. It will be business as usual. That is what they hope. This is their final gambit. The last magic show!

And as I have written earlier, this is the OBAMA’s GAMBLE!

Countries need not trade in dollars, as after all, they are not even BUYING “MADE IN AMERICA GOODS”. AMERICA IS A NET IMPORTER, NOT EXPORTER.

So central banks of the world, especially the Third World, and the emerging powers of China and Russia: you have no need for US toilet papers when you sell your national products to countries other than the US.

And in so far as the U.S. is concerned, why are you demanding to be paid in toilet papers? Why are you not demanding payment in your own currency?

China and Russia are at the present moment on the wrong course. They hold trillions of US dollar denominated debts but act as if they are at the mercy of the US, fearing that if they do anything unfavourable to US or cahllenge the hegemony of the greenback, there will be a massive slump in the value of the dollar.

But that is a given in any event. So why play a game that has been rigged in the favour of the global Shadow Money-Lenders.

There is no reason why Russia and China should be in a recession or experience slower growth. They are suffering from the present so-called credit crunch because they continue to manage their economies in dollar terms and in a dollar mindset.

The US is playing suicide poker and calling one last card. They have nothing on the table but toilet paper.

The US will collapse in a minute, if not sooner if China and Russia were to categorically call the US’s bluff and say:

1) Close down the derivative casino now!

2) Buy back all the toxic wastes which you have unloaded on the unsuspecting global economies with currencies of our choice!

3) Since the US is in debt, the US must now borrow in the currencies of our choice to repay past debts and new loans!

Failure to comply will result in a credit crunch to US banks and companies. US can continue to use domestically their worthless toilet papers (to wipe the shit off the ceiling fans, if there are any left hanging from the ceilings) but there will be no more credit in toilet papers. Period. There will be loans only in other currencies.

This is the checkmate. .

So China and Russia should wake up and do what is necessary to save their economies as well as the global economy or their economies will end up in the shit hole as they are now playing the US / UK rigged game.

I am not surprised at the present state of mind of Chinese and Russian bankers. They have sent some of their best brains to be trained in Harvard etc., and by the fraudsters in Goldman Sachs, JP Morgan Chase, Merrill Lynch, Citigroup etc. They have all been infected with the Ponzi disease and as such cannot think otherwise. Otherwise, how do you explain their mental paralysis?

This is a simple financial puzzle.

There is no credit crunch. There is only a false or an illusion of credit crunch for US toilet papers.

Once there is no demand for dollars, there will be no credit crunch for dollars. The Shadow Money-Lenders con-game will be exposed for what it is – a giant fraud. Not unlike that of Bernard Madoff, only a thousand times more insidious and toxic.

I hope that I have made myself absolutely clear to the financial officials in Russia and China.

If China and Russia and the third world continue to stand pat, these economies deserve to be in the dog house.

Bernanke and Paulson are going to destroy the US and the global economy so as to fulfil the grand design of the Shadow Money-Lenders. Stop them before it is too late.

The Count-down has started!

Tuesday, December 16, 2008

Opening a Pandora's Box: Kosovo "Independence" and the Project for a "New Middle East"

Western public opinion has been misled. Unfolding events and realities on the ground in the former Yugoslavia have been carefully manipulated.

Germany and the U.S. have deep-seated geo-strategic interests in dividing Yugoslavia. Washington, D.C. and Berlin have also been the first governments to recognize the secessionist states, which resulted from the breakup of the Yugoslav federation.

The Broader Implications of Kosovo “Independence”

The February 2008 declaration of independence of Kosovo is a means towards legitimizing the dissolution and breaking up of sovereign states on a global scale.

Eurasia is the main target. Kosovar “independence” is part of a neo-colonial program with underlying economic and geo-political interests. The objective is to instate a New World Order and establish hegemonic control over the global economy.

In this sense Kosovo provides a blueprint and a “dress-rehearsal” which can now be applied to restructuring the economies and borders of the Middle East, under the Project for a “New Middle East.”

The restructuring model that is being applied in the former Yugoslavia is precisely what is intended for the Middle East — a process of balkanization and economic control.

Kosovo’s Pseudo-Declaration of Independence

On February 17, 2008, the secessionist province of Kosovo declared unilateral independence from the Republic of Serbia. The occasion was declared through an extraordinary gathering of the Kosovar Parliament and its executive bodies. Belgrade has not had any control over Kosovo since 1999, when NATO went to war with Serbia to impose control over Kosovo under humanitarian arguments.

President Fatmir Sejdiu, Prime Minister Hashim Thaci, and the Speaker of Parliament Jakup Krasniqi all marked the occasion with speeches inside and outside of the Kosovar Parliament.

Many in Kosovo’s ethic Albanian majority celebrated what they believed was a shift towards self-determination. The truth of the matter is that the Kosovar declaration of independence was a declaration of dependency and the surrounder of Kosovo to colonial forces.

Without any remorse Kosovar leaders have transformed their land into a colonial outpost of Franco-German and Anglo-American interests. February 17, 2008 also marked the day that Kosovo further entrenched itself as a NATO-E.U. protectorate. Under the so-called “independence” roadmap, NATO and E.U. troops and police officers will formally administer Kosovo.

In reality, Kosovo would have had greater independence as an autonomous province in an agreement of autonomy with Serbia, which had been envisaged in bilateral talks between Belgrade and Pristina. The majority of Kosovars would have been satisfied under such an agreement.

However, the talks were never meant to succeed for two obvious reasons:

1) the leadership of Kosovo are agents of foreign interests that do not represent the Kosovar populaiton;

2) the U.S. and E.U. were determined to establish another protectorate in the former Yugoslavia.





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Kosovo: Another phase in the Economic Colonization of the former Yugoslavia

One of the leading global academic figures who has thoroughly documented the foreign-induced disintegration of Yugoslavia and the situation in Kosovo is Michel Chossudovsky. He has documented the economic and geo-strategic motives that have acted as the fingers pulling the strings that have caused the collapse of Yugoslavia and the drive for the independence of Kosovo from Serbia. His work unmasks the truth behind the downfall of Yugoslavia and the tactics being used to divide nations and peoples who have lived together in peace for hundreds of years.

A glance at the restructuring of Bosnia-Herzegovina must be made before further discussing the case of Kosovo.

Bosnia’s constitution was written at a U.S. Air Force base in Dayton, Ohio by U.S. and European "experts."
Chossoduvsky appropriately labels Bosnia-Herzegovina as a neo-colonial entity. NATO troops have dominated Bosnia-Herzegovina, closely followed by the imposition of a new political and economic framework and model.

Chossudovsky’s work also reveals that the real head of the Bosnian government, the High Representative, and the head of the Bosnian Central Bank are both foreigners that are hand-picked by the European Union, the U.S., and the International Monetary Fund (IMF). This is a clear re-enactment of a colonial administration.

This model has also been replicated with some variations in several of the former republics of the Yugoslav federation. The major obstacle to the full implementation of this agenda is the popular will of the local people in the former Yugoslavia, especially the Serbs.

Serbia, like an island of resistance, is the last bastion of independence left in the former Yugoslavia and the Balkans, but even in Serbia a modus vivendi exists where the local people have made a one-sided accommodation with the foreign economic agenda to allow their way of life to go on for a little longer. However, this accommodation is not meant to last.

The same Political and Socio-Economic Model is being applied in the Balkans and the Middle East

The process in Iraq is no different than the model applied in the former Yugoslavia. Divisions are fueled by foreign catalysts, the economy is destabilized, national dissolution is induced, and a new politico-socio-economic order is established.

Foreign interference and military intervention have also been justified on bogus humanitarian grounds. It is no coincidence that a “High Representative” was appointed by the American-led coaltion to govern occupied Iraq, thereby replicating the Bosnia-Herzegovina model, which is characterised by a E.U. appointed “High Representative.” The pattern should start becoming startlingly familiar!

The parallels between Iraq and the former Yugoslavia are endless.

In the wake of the Anglo-American invasion of Iraq, the U.S. and Britain established the Office for Reconstruction and Humanitarian Assistance (ORHA), which evolved into the Coalition Provisional Authority.

The head of the Coalition Provisional Authority was also called “Special Representative,” “Governor,” “Special Envoy,” and “Consul.”

The justifications for setting up the occupying administration in Iraq, similarly to Bosnia-Herzegovina, where originally humanitarian and national stabilization. However, the main objectives of the Coalition Provisional Authority were to decentralize the state and implement a mass privatization program of Iraqi resources and wealth.

It is no coincidence that Bosnia-Herzegovina was divided alongside ethnic and religious lines: Serb, Croat, and Bosniak; Christians and Muslims. To these various ethnic-religious divisions further sectarian divisions were also added amongst the Christians: Eastern Orthodoxy versus Roman Catholicism.

A similar strategy of “divide and rule” was applied in Iraq. In Iraq the same pattern is being replicated alongside ethnic and sectarian lines: Arabs, Kurds, Turcomans, Assyrians, and others; Shiites versus Sunnis. Just like in the former Yugoslavia the centralized economic system of Iraq was also shattered by the occupying administration. Under the Anglo-American occupation and its Coalition Provisional Authority foreign corporations entered Iraq in a second wave of foreign invasion, an economic takeover.

This neo-colonial project is based on two interdependent building blocks: a military stage executed by NATO and a process of political, social, and economic restructuring executed by the U.S. and E.U. with the help of corrupt local leaders in the occupied countries. The shock and awe of war opens the door for destabilization followed by “nation building” or the restructuring process, which even attacks the cultural and social roots of the target nation-state. The important cultural and historic aspects unifying the occupied nation-states have also been systematically attacked and errased.

The Economic Colonization of Kosovo

The economic affairs of Kosovo are to be exclusively under the hands of the E.U. in partnership with the United States. The euro was already being used in Kosovo, despite of the protests of Belgrade, as the official currency for a number of years before 2008. The utilization of the euro was part of the process of untying the Kosovar economy from the rest of the Serbian economy and a means of establishing control over the sovereignty of Kosovo via monetary and financial means.

The Kosovar flag has been designed to match both the flags of Bosnia-Herzegovina and the European Union. The Bosnian flag was also designed to match the flag of the European Union. To many in the Balkans these flags are symbols of vassaldom and the protectorate status of these territories.

This unraveling process involving military means has been the modus operandi throughout the former Yugoslavia. The key governments behind this process are the usual players; the U.S., Germany, Britain, and France, which have been sharing the spoils of war and economic colonization in the former Yugoslavia. NATO and the E.U. have been the agents of this process on behalf of all four Western powers.

An Illegal Precedent: Paving the Way for the Dismantlement of other Nation-States

In the realm of international law, a Pandora’s Box has been opened. A new form of interventionism which threatens nation-states has emerged. Worldwide, nations have been divided into two camps in regards to Kosovo: those that recognize it at the expense of international law and those that do not recognize Kosovar independence.

There are profound implications in regards to the events in Yugoslavia. The law of the jungle and the concept that “might is right” have been unveiled as the true ideals of E.U. and American foreign policy. From Somalia, Sudan, and Iraq to the Russian Federation and Central Asia, a dangerous precedent has been established. The latter is intent upon fracturing and dividing.

The E.U. and NATO have also threatened Belgrade and the Serbian people with military action if they try and keep Kosovo. NATO had prepared for Kosovar independence through the holding of war games in late-2007. As Germany has admitted, negotiations for a solution were never taken seriously by Western powers from the start. NATO’s military preparations for the secession of Kosovo suggests that the negotiations were a diplomatic game, which was never intended to succeed.

The global ramifications of E.U.-U.S. interventionism and open disregard for fundamental international laws are significant. Nations combating secessionist movements worldwide have voiced disapproval of the Kosovar declaration of independence, while expressing apprehension in regards to the enthusiastic support shown by American, German, British, and French officials.

China has voiced disapproval out of fears that Taiwan (Chinese Taipei) may declare independence under the precedent set by Kosovo. Indonesia, Sri Lanka, Sudan, Spain, Georgia, the Republic of Azerbaijan, and Russia have all voiced opposition because of their own secessionist movements such as the Tamil Tigers and the Basque separatist group ETA.

Ramifications of the Kosovo Precedent in the Caucasus and the Former Soviet Space

While fully acknowledging the fact that the Kosovo precedent is internationally illegal, Moscow has nonetheless used the Kosovo precedent against Georgia. Moscow’s objective is to strengthen its control in the geo-strategically important Caucasus region. Georgia has opposed the push by Kosovar Albanians for independence because of secessionist movements in Abkhazia, South Ossetia, and Adjara. While Adjaran separatism has declined, Abkhazia and South Ossetia have standing armies with close ties to Moscow and are virtually independent.

Russia is arguing that if the U.S. and E.U. recognize the independence of Kosovo, then the independence of Abkhazia and South Oesstia must also be recognized based on the same principle.

The Kosovar declaration of independence also has ramifications for Trans-Dniester (also known as Transnistria or Transdniestria), a tiny breakaway Russian-majority portion of Moldava bordering Ukraine.

The effects of Kosovar independence have also been watched carefully by the leaders of Armenia and the Republic of Azerbaijan, because of the Nagorno-Karabakh Conflict. In the cases of Trans-Dniester, Nagorno-Karabakh, Abkhazia, and South Ossetia, all four breakaway republics believe they have far stronger cases for lobbying for official recognition by the Commonwealth of Independent States (C.I.S.), Russia, and the United Nations.





Preparing a Dangerous Precedent for the Middle East and Beyond

The ghosts of Versailles and earlier schemes that the model in Yugoslavia and the Middle East is replicating still hunt humanity. U.S. President Woodrow Wilson’s seemingly good intentioned declaration of creating an arc of “national self-determination” stretching from the Baltic Sea and the Balkans to the Middle East after the First World War is coming into fruition.

Since the First World War, the larger and more powerful states of Eastern Europe and the Middle East have progressively been carved up into smaller and weaker states. This process was part of a colonial project to control the Eurasian Heartland that still survives.

The board is being set for the recognition of new states in a redrawn Middle East in total disregard for international law. The Kosovar declaration of independence from Serbia is part of the broader post-Cold War balkanization and dismantlement of Yugoslavia. The legitimization of Kosovar independence through international recognition serves to extend Anglo-American and Franco-German influence across Eurasia and the globe. This model is tied in a straight line with the forthcoming plans in the Middle East to breakup countries such as Iraq, Syria, and Iran in fragmented and easy to control protectorates managed by the E.U., the U.S., and Israel.

Russia and China also are aware of the real danger of plans to divide their territories as has been advocated for years by Anglo-American policy makers in Washington and London going back to before the First World War. Iran is also aware of a Kosovo-like scenario planned for its predominately Arab regions in Khuzestan. The declaration of independence was also closely watched by the Kurdistan Regional Government of Northern Iraq.



The synchronization of other global events with Kosovo Independence: Coincidence?

The “Arc of Instability” is yet again being exasperated and agitated. In Pakistan threats of civil war and balkanization loom large. In the Levant one of Hezbollah’s top officials, Imad Mughniyeh, was assassinated in Syria by a car bomb similarly to those killing Lebanese politicians.

Most probably Imad Mughniyeh was assassinated by the Mossad, the intelligence agency of Israel. American, Jordanian, Saudi, French, British, and German intelligence were almost all likely to be involved. It is an open secret that all these intelligence agencies have been collaborating together in Lebanon against Hezbollah and have been behind attempts to assassinate Hezbollah leaders. The timing of the assassination is extremely suspicious.

Mughniyeh’s assassination also came just before the anniversary of the Hariri Assassination and could have been meant to further galvanize political tensions in Lebanon and create a sectarian divide amongst the Muslims of Lebanon. Israel has denied being behind the assassination, but it is now talking about a new war with Lebanon that it conveniently plans to blame Hezbollah for starting with the help of Syria and Iran.

The rupture of multiple conflicts and crises could also be used to encircle the westernmost periphery of Russia within an arc of conflict. In other words, there may be a deliberate attempt in the making to trigger through covert actions further conflicts and ethnic divisions, with a view to ultimately paralyzing Russia and weakening other opposing political forces in the broader region.

A Prepackaged Solution: Supranationalism?

The leadership in Serbia is playing a balancing act between its people and foreign interests. The Serbian people are against the foreign agenda in their region, but the leadership in Serbia is the spawn of a Western-funded and supported Velvet Revolution that occurred in 2000 and ousted Slobodan Milosevic. A large portion of Belgrade’s leadership supports the foreign agenda and has been co-opted into the neo-liberal restructuring project for the Balkans. The fact that the U.S. and the E.U. became major paymasters for Serbia after the Kosovo War is a mere testimony to this.

Surpanationalism or entry into the E.U. or a larger supranational entity for both Serbia and Kosovo is most probably going to be presented as the solution for Kosovar independence. Similarly such a solution may also be presented for a balkanized Middle East through such projects as the Mediterranean Union. Supranationalism is also being pressed as an answer to the unification of Cyprus under the Mediterranean Union.

Returning to Serbia and Kosovo, many of the leaders of Serbia are opposing Kosovar secession, but this is merely a fa├žade that is meant to occupy the minds of the Serbian general public. These same leaders are taking a soft stance on the issue and are also moving towards integration into the European Union. To them supranationalism is a solution.

On the Eve of the New World Order: Welcome to the Rule of the Jungle

While the E.U. pushes for a bridge to end national and ethnic divisions amongst its own members it does the opposite in the cases of Kosovo and other regions. Is not the American Civil War marked with honour, because the Union States fought a war to keep the Confederate States within the “American Union” by force?

Whatever the case, the hypocrisy of the E.U. and the U.S. in international relations is exposed by the recognition of Kosovar independence. Firstly, it is a breach of international law, but also it is insincere and for self-serving motives and not because of genuine principles or concerns for the people of Kosovo.

In addition, the Turkish Republic of Northern Cyprus has a far more legitimate case of being recognized in addition to its own functioning institutions and maturity. Although there is a secure and stable means to peacefully address the desires of the Basque and the Catalans in the Pyrenees and the Flemish in the Flanders region of Belgium, these separatist movements are also ignored.

The Armenian majority in Nagorno-Karabakh declared independence on December 10, 1991. Yet, the self-proclaimed and functioning breakaway republic enjoys no backing from either the U.S. or the E.U. unlike Kosovo. What sets Northern Cyprus, South Ossetia, Abkhazia, the Nagorno-Karabakh Republic, and Trans-Dniester apart from Kosovo? The answer is: Anglo-American and Franco-German interests represented through the E.U. and NATO are the forces behind self-serving “exceptionalism” — the same force that permitted the Nazis to believe that they could colonize Eastern Europe and the Eurasian Heartland without guilt.

American and European Union leaders have argued that the Serbs are no longer morally capable of managing the affairs of Kosovo. What gives the governments of the U.S., Germany, France, and Britain any moral capability after years of blood baths and a deficit in credibility? If these claims where based on any principle then what about the case of the Palestinians? Does Israel have any moral capability to occupy the Palestinians? Yet, the occupation continues. Ironically it is not Serbian troops who occupy Kosovo, but NATO troops and tanks.

by Mahdi Darius Nazemroaya

Establishing an "Arc of Crisis"

Many would be skeptical that the Anglo-Americans would be behind terrorist acts in Iraq, such as with the British in Basra, when two British SAS soldiers were caught dressed as Arabs, with explosives and massive arsenal of weapons. Why would the British be complicit in orchestrating terror in the very city in which they are to provide security? What would be the purpose behind this? That question leads us to an even more important question to ask, the question of why Iraq was occupied; what is the purpose of the war on Iraq? If the answer is, as we are often told with our daily dose of CNN, SkyNews and the statements of public officials, to spread democracy and freedom and rid the world of tyranny and terror, then it doesn’t make sense that the British or Americans would orchestrate terror.

However, if the answer to the question of why the Anglo-American invasion of Iraq occurred was not to spread democracy and freedom, but to spread fear and chaos, plunge the country into civil war, balkanize Iraq into several countries, and create an "arc of crisis" across the Middle East, enveloping neighboring countries, notably Iran, then terror is a very efficient and effective means to an end.

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An Imperial Strategy

In 1982, Oded Yinon, an Israeli journalist with links to the Israeli Foreign Ministry wrote an article for a publication of the World Zionist Organization in which he outlined a "strategy for Israel in the 1980s." In this article, he stated, "The dissolution of Syria and Iraq into ethnically or religiously unique areas such as in Lebanon is Israel's primary target on the Eastern front. Iraq, rich in oil on the one hand and internally torn on the other is guaranteed as a candidate for Israel's targets. Its dissolution is even more important for us than that of Syria. Iraq is stronger than Syria. In the short run, it is Iraqi power which constitutes the greatest threat to Israel." He continued, "An Iraqi-Iranian war will tear Iraq apart and cause its downfall at home even before it is able to organize a struggle on a wide front against us. Every kind of inter-Arab confrontation will assist us in the short run and will shorten the way to the more important aim of breaking up Iraq into denominations as in Syria and Lebanon." He continues, "In Iraq, a division into provinces along ethnic/religious lines as in Syria during Ottoman times is possible. So, three (or more) states will exist around the three major cities: Basra, Baghdad and Mosul and Shiite areas in the South will separate from the Sunni and Kurdish north."

The Iran-Iraq War, which lasted until 1988, did not result in Oded Yinon’s desired break-up of Iraq into ethnically based provinces. Nor did the subsequent Gulf War of 1991 in which the US destroyed Iraq’s infrastructure, as well as the following decade-plus of devastating sanctions and aerial bombardments by the Clinton administration. What did occur during these decades, however, were the deaths of millions of Iraqis and Iranians.

A Clean Break for a New American Century

In 1996, an Israeli think tank, the Institute for Advanced Strategic and Political Studies, issued a report under the think tank’s Study Group on a New Israeli Strategy Toward 2000, entitled, "A Clean Break: A New Strategy for Securing the Realm." In this paper, which laid out recommendations for Israel’s Prime Minister Benjamin Netanyahu, they state that Israel can, "Work closely with Turkey and Jordan to contain, destabilize, and roll-back some of its most dangerous threats," as well as, "Change the nature of its relations with the Palestinians, including upholding the right of hot pursuit for self defense into all Palestinian areas," and to, "Forge a new basis for relations with the United States—stressing self-reliance, maturity, strategic cooperation on areas of mutual concern, and furthering values inherent to the West."

The report recommended Israel to seize "the strategic initiative along its northern borders by engaging Hizballah, Syria, and Iran, as the principal agents of aggression in Lebanon," and to use "Lebanese opposition elements to destabilize Syrian control of Lebanon." It also states, "Israel can shape its strategic environment, in cooperation with Turkey and Jordan, by weakening, containing, and even rolling back Syria. This effort can focus on removing Saddam Hussein from power in Iraq — an important Israeli strategic objective in its own right — as a means of foiling Syria’s regional ambitions."

The authors of the report include Douglas Feith, an ardent neoconservative who went on to become George W. Bush’s Under Secretary of Defense for Policy from 2001 to 2005; David Wurmser, who was appointed by Douglas Feith after 9/11 to be part of a secret Pentagon intelligence unit and served as a Mideast Adviser to Dick Cheney from 2003 to 2007; and Meyrav Wurmser, David’s wife, who is now an official with the American think tank, the Hudson Institute.

Richard Perle headed the study, and worked on the Pentagon’s Defense Policy Board Advisory Committee from 1987 to 2004, and was Chairman of the Board from 2001 to 2004, where he played a key role in the lead-up to the Iraq war. He was also a member of several US think tanks, including the American Enterprise Institute and the Project for the New American Century.

The Project for the New American Century, or PNAC, is an American neoconservative think tank, whose membership and affiliations included many people who were associated with the present Bush administration, such as Dick Cheney, Donald Rumsfeld, Paul Wolfowitz, John Bolton, Richard Armitage, Jeb Bush, Elliott Abrams, Eliot A. Cohen, Paula Dobriansky, Francis Fukuyama, Zalmay Khalilzad, I. Lewis "Scooter" Libby, Peter Rodman, Dov Zakheim and Robert B. Zoellick.

PNAC produced a report in September of 2000, entitled, "Rebuilding America’s Defenses: Strategy, Forces and Resources for a New Century," in which they outlined a blueprint for a Pax Americana, or American Empire. The report puts much focus on Iraq and Iran, stating, "Over the long term, Iran may well prove as large a threat to US interests in the Gulf as Iraq has." Stating that, "the United States has for decades sought to play a more permanent role in Gulf regional security," the report suggests that, "the unresolved conflict with Iraq provides the immediate justification," however, "the need for a substantial American force presence in the Gulf transcends the issue of the regime change of Saddam Hussein."

Engineer a Civil War for the "Three State Solution"

Shortly after the initial 2003 invasion and occupation of Iraq, the New York Times ran an op-ed piece by Leslie Gelb, President Emeritus and Board Member of the US-based Council on Foreign Relations, the most influential and powerful think tank in the United States. The op-ed, titled, "The Three State Solution," published in November of 2003, stated that the "only viable strategy" for Iraq, "may be to correct the historical defect and move in stages toward a three-state solution: Kurds in the north, Sunnis in the center and Shiites in the south." Citing the example of the break up of Yugoslavia, Gelb stated that the Americans and Europeans "gave the Bosnian Muslims and Croats the means to fight back, and the Serbs accepted separation." Explaining the strategy, Gelb states that, "The first step would be to make the north and south into self-governing regions, with boundaries drawn as closely as possible along ethnic lines," and to "require democratic elections within each region." Further, "at the same time, draw down American troops in the Sunni Triangle and ask the United Nations to oversee the transition to self-government there." Gelb then states that this policy "would be both difficult and dangerous. Washington would have to be very hard-headed, and hard-hearted, to engineer this breakup."

Following the example of Yugoslavia, as Gelb cited, would require an engineered civil war between the various ethnic groups. The US supported and funded Muslim forces in Bosnia in the early 1990s, under the leadership of the CIA-trained Afghan Mujahideen, infamous for their CIA-directed war against the Soviet Union from 1979-1989. In Bosnia, the Mujahideen were "accompanied by US Special Forces," and Bill Clinton personally approved of collaboration with "several Islamic fundamentalist organisations including Osama bin Laden's al Qaeda." In Kosovo, years later, "Mujahideen mercenaries from the Middle East and Central Asia were recruited to fight in the ranks of the Kosovo Liberation Army (KLA) in 1998-99, largely supporting NATO's war effort." The US Defense Intelligence Agency (DIA), the British Secret Intelligence Services (MI6), British SAS soldiers and American and British private security companies had the job of arming and training the KLA. Further, "The U.S. State Department listed the KLA as a terrorist organization, indicating that it was financing its operations with money from the international heroin trade and loans from Islamic countries and individuals, among them allegedly Usama bin Laden," and as well as that, "the brother of a leader in an Egyptian Jihad organization and also a military commander of Usama bin Laden, was leading an elite KLA unit during the Kosovo conflict."

Could this be the same strategy being deployed in Iraq in order to break up the country for similar geopolitical reasons?

The Asia Times Online reported in 2005, that the plan of "balkanizing" Iraq into several smaller states, "is an exact replica of an extreme right-wing Israeli plan to balkanize Iraq - an essential part of the balkanization of the whole Middle East. Curiously, Henry Kissinger was selling the same idea even before the 2003 invasion of Iraq." It continued, "this is classic divide and rule: the objective is the perpetuation of Arab disunity. Call it Iraqification; what it actually means is sectarian fever translated into civil war."

In 2006, an "independent commission set up by Congress with the approval of President George W Bush," termed the "Baker Commission" after former Secretary of State, James Baker, "has grown increasingly interested in the idea of splitting the Shi’ite, Sunni and Kurdish regions of Iraq as the only alternative to what Baker calls ‘cutting and running’ or ‘staying the course’."

It was also reported in 2006 that, "Iraq's federal future is already enshrined within its constitution, allowing regions to form, if not actually prescribing how this should happen," and that, "the Iraqi parliament (dominated by Shi'a and Kurds) passed a bill earlier this month [October, 2006] allowing federal regions to form (by majority vote in the provinces seeking merger)." Further, "The law, which unsurprisingly failed to win Sunni support, will be reviewed over the next 18 months in a bid to bring its opponents round." The article, however, stated that instead of a three state solution, "a system based upon five regions would seem to have more chance of succeeding. A five-region model could see two regions in the south, one based around Basra and one around the holy cities. Kurdistan and the Sunni region would remain, but Baghdad and its environs would form a fifth, metropolitan, region." The author of the article was Gareth Stansfield, an Associate Fellow at Chatham House think tank in London, which preceded, works with and is the British equivalent of the Council on Foreign Relations.

"Ethnic Cleansing Works"

In 2006, the Armed Forces Journal published an article by retired Lieutenant-Colonel Ralph Peters, titled, "Blood Borders: How a better Middle East would look." In the article, Peters explains that the best plan for the Middle East would be to "readjust" the borders of the countries. "Accepting that international statecraft has never developed effective tools — short of war — for readjusting faulty borders, a mental effort to grasp the Middle East’s "organic" frontiers nonetheless helps us understand the extent of the difficulties we face and will continue to face. We are dealing with colossal, man-made deformities that will not stop generating hatred and violence until they are corrected." He states that after the 2003 invasion, "Iraq should have been divided into three smaller states immediately." However, Iraq is not the only country to fall victim to "Balkanization" in Peters’ eyes, as, "Saudi Arabia would suffer as great a dismantling as Pakistan," and "Iran, a state with madcap boundaries, would lose a great deal of territory to Unified Azerbaijan, Free Kurdistan, the Arab Shia State and Free Baluchistan, but would gain the provinces around Herat in today’s Afghanistan." Further, "What Afghanistan would lose to Persia in the west, it would gain in the east, as Pakistan’s Northwest Frontier tribes would be reunited with their Afghan brethren." Peters states that "correcting borders" may be impossible, "For now. But given time — and the inevitable attendant bloodshed — new and natural borders will emerge. Babylon has fallen more than once." He further makes the astonishing statement that, "Oh, and one other dirty little secret from 5,000 years of history: Ethnic cleansing works."

The map of the re-drawn Middle East, initially published alongside Peters’ article, but no longer present, "has been used in a training program at NATO's Defense College for senior military officers. This map, as well as other similar maps, has most probably been used at the National War Academy as well as in military planning circles." Nafeez Mossadeq Ahmed wrote of Peters’ proposal, that "the sweeping reconfiguration of borders he proposes would necessarily involve massive ethnic cleansing and accompanying bloodshed on perhaps a genocidal scale."

Federalism or Incremental Balkanization?

A month before Peters’ article was published, Leslie Gelb of the Council on Foreign Relations, and Joseph Biden, a Democratic member of the Senate Foreign Relations Committee, wrote an op-ed for the New York Times, in which they stated, "America must get beyond the present false choice between "staying the course" and "bringing the troops home now" and choose a third way that would wind down our military presence responsibly while preventing chaos and preserving our key security goals." What is this third option? "The idea, as in Bosnia, is to maintain a united Iraq by decentralizing it, giving each ethno-religious group—Kurd, Sunni Arab and Shiite Arab—room to run its own affairs, while leaving the central government in charge of common interests."

They describe a few aspects of this plan. "The first is to establish three largely autonomous regions with a viable central government in Baghdad. The Kurdish, Sunni and Shiite regions would each be responsible for their own domestic laws, administration and internal security. The central government would control border defense, foreign affairs and oil revenues." Then, "The second element would be to entice the Sunnis into joining the federal system with an offer they couldn’t refuse. To begin with, running their own region should be far preferable to the alternatives: being dominated by Kurds and Shiites in a central government or being the main victims of a civil war."

In testimony before the Senate Foreign Relations Committee in 2007, Leslie Gelb stated that his plan for "federalizing" Iraq, "would look like this: The central government would be based on the areas where there are genuine common interests among the different Iraqi parties. That is, foreign affairs, border defense, currency and, above all, oil and gas production and revenues." And, "As for the regions, whether they be three or four or five, whatever it may be, it’s up to—all this is up to the Iraqis to decide, would be responsible for legislation, administration and internal security."

The Senate subsequently passed a nonbinding resolution supporting a federal system for Iraq, which has still yet to be enacted upon, because it stated that this resolution was something that had to be enacted upon by the Iraqis, so as not to be viewed as "something that the United States was going to force down their throats." Further, "when Ambassador Ryan Crocker appeared before the Senate Foreign Relations Committee, he testified in favor of federalism. In his private conversations with senators, he also supported the idea," yet, while in Baghdad, the Ambassador "blasted the resolution." Could this be a method of manipulation? If the American Embassy in Baghdad promotes a particular solution for Iraq, it would likely be viewed by Iraqis as a bad choice and in the interest of the Americans. So, if the Ambassador publicly bashes the resolution from Iraq, which he did, it conveys the idea that the current administration is not behind it, which could make Iraqis see it as a viable alternative, and perhaps in their interests. For Iraqi politicians, embracing the American view on major issues is political (and often actual) suicide. The American Embassy in Baghdad publicly denouncing a particular strategy gives Iraqi politicians public legitimacy to pursue it.

This resolution has still not gone through all the processes in Congress, and may, in fact, have been slipped into another bill, such as a Defense Authorization Act. However, the efforts behind this bill are larger than the increasingly irrelevant US Congress.

Also in 2007, another think tank called for the managed "break-up of Iraq into three separate states with their own governments and representatives to the United Nations, but continued economic cooperation in a larger entity modeled on the European Union." In a startling admission by former US Ambassador to the United Nations, John Bolton, stated in 2007 that the "United States has "no strategic interest" in a united Iraq," and he also suggested "that the United States shouldn't necessarily keep Iraq from splitting up."

Conclusion

Clearly, whatever the excuse, or whatever the means of dividing Iraq, it is without a doubt in the Anglo-American strategy for Iraq to balkanize the country. Saying that what is being proposed is not balkanization, but federalism, is a moot point. This is because reverting to a more federal system where provinces have greater autonomy would naturally separate the country along ethno-religious boundaries. The Kurds would be in the north, the Sunnis in the centre, and the Shi’ites in the south, with all the oil. The disproportionate provincial resources will create animosity between provinces, and the long-manipulated ethnic differences will spill from the streets into the political sphere. As tensions grow, as they undoubtedly would, between the provinces, there would be a natural slide to eventual separation. Disagreements over power sharing in the federal government would lead to its eventual collapse, and the strategy of balkanization would have been achieved with the appearance of no outside involvement.