Meltdown is a four-part investigation that takes a closer look at the people who brought down the financial world. See Part 1: The men who crashed the world, Part 2: A global financial tsunami, and Part 3: Paying the price.
Author Archives: News Sources
Meltdown — Part 3: Paying the price
Meltdown is a four-part investigation that takes a closer look at the people who brought down the financial world. See Part 1: The men who crashed the world, Part 2: A global financial tsunami, and Part 4: After the fall.
Meltdown — Part 2: A global financial tsunami
Meltdown is a four-part investigation that takes a closer look at the people who brought down the financial world. See Part 1: The men who crashed the world, Part 3: Paying the price, and Part 4: After the fall.
Meltdown — Part 1: The men who crashed the world
Meltdown is a four-part investigation that takes a closer look at the people who brought down the financial world. See Part 2: A global financial tsunami, Part 3: Paying the price, and Part 4: After the fall.
Occupy Wall Street not Palestine!
Occupy Wall Street not Palestine!
We are part of the world’s 99% yearning for freedom, justice and equal rights!
If, one day, a people desires to live, then fate will answer their call.
And their night will then begin to fade, and their chains break and fall.
– Abou-Al-kacem El-Chebbi (Tunisia)
Occupied Palestine, October 13 — The Palestinian Boycott, Divestment and Sanctions National Committee (BNC), the largest Palestinian civil society coalition struggling for Palestinian rights, is proud to stand in solidarity with the movements struggling for a new world based on democracy, human rights and economic justice. From New York to Athens, from Madrid to Santiago, from Bahrain to Rome, these huge mobilisations provide a much needed reminder of something that Palestinians have always known – that another world, a dignifying one, is possible and ordinary people can create it.
Our aspirations overlap; our struggles converge. Our oppressors, whether greedy corporations or military occupations, are united in profiting from wars, pillage, environmental destruction, repression and impoverishment. We must unite in our common quest for freedoms, equal rights, social and economic justice, environmental sanity, and world peace. We can no longer afford to be splintered and divided; we can no longer ignore our obligations to join hands in the struggle against wars and corporate exploitation and for a human-friendly world community not a profit-maximizing jungle.
The Occupy Wall Street movement and its counterparts across the US, Europe, Latin America and elsewhere are — at least partially — inspired by the Arab Spring for democracy and social justice. Leaders of the Arab popular revolts tell us that they, in turn, were largely inspired by our own, decades-old struggle against Israel’s occupation of our land, its system of discrimination that matches the UN’s definition of apartheid, and its denial of the right of Palestinian refugees to return home.
The rapidly emerging movement for Boycott, Divestment and Sanctions (BDS) against Israel until it complies with international law is a key and effective part of the Palestinian struggle. Anchored in universal principles of human rights and struggling for freedom, justice and equality, the BDS movement, established in 2005, is deeply rooted in decades of Palestinian peaceful resistance to colonial oppression and is inspired by the South African struggle against apartheid as well as the civil rights movement in the US. It is adopted by a near consensus among Palestinians everywhere, with all the main political parties, trade unions, professional syndicates, women’s unions, student groups, NGO networks and refugee advocacy networks represented in the BNC, the reference for this growing movement to end Israeli impunity.
The Palestinian-led BDS movement is a global effort of groups, from South Africa to Britain, from Canada to India, and within Israel itself, all committed to ending Israel’s denial of basic Palestinian rights. It is endorsed by towering moral leaders of the calibre of Archbishop Desmond Tutu and Holocaust survivor and co-author of the Universal Declaration of Human Rights, Stephane Hessel. It is supported by world renowned cultural and intellectual figures such as Alice Walker, Naomi Klein, Roger Waters, Judith Butler, Sarah Schulman, John Berger, Ken Loach, John Greyson, and Adrienne Rich. Massive trade union federations such as COSATU (South Africa), CUT (Brazil), TUC (UK), ICTU (Ireland), among many others, have also adopted BDS.
The movement has scored in the last two years some spectacular achievements when internationally renowned artists and music groups heeded the cultural boycott of Israel and refused to perform there or cancelled scheduled appearances. These have included the Pixies, Elvis Costello, Snoop Dogg, Meg Ryan, Vanessa Paradis, Gil Scott-Heron, among many others. The Norwegian state pension fund, among others, major European banks and some corporations have all been convinced to divest from businesses implicated in Israel’s violations of international law. Increasingly, BDS is recognized as a civic movement capable of ending Israeli impunity and, crucially, contributing to the global struggle against the war-mongering, racist agenda which Israel has persistently played a key role in.
So as you break your own chains and build your own effective resistance against corporate tyranny, we ask you to demand a just peace for all the peoples in the Middle East, based on international law and equal human rights. Palestinians, too, are part of the 99% around the world that suffer at the hands of the 1% whose greed and ruthless quest for hegemony have led to unspeakable suffering and endless war. Corporate power has not just profited from our suffering but has colluded in maintaining Israel’s occupation and apartheid to perpetuate an unjust order that profits oil and military companies and multinational financial institutions.
We call upon all the spreading social movements of the world to think critically when considering their attitude towards the Israeli ‘social justice’ protests, which have almost completely ignored the key issue at the heart of all of the problems faced by ordinary Palestinians and even Israelis: Israel’s costly system of occupation, colonialism and apartheid over the Palestinian people. Without putting an end to that multi-tiered Israeli system of oppression, our entire region will never enjoy a comprehensive and lasting peace, one that is based on justice and human rights.
Money for jobs, health and education, not for racist oppression and occupation!
Nowhere is this more important than in the United States. Despite Israel’s persistent denial of Palestinian rights, the US has provided Israel with unconditional political and military assistance that directly contributes to the denial of Palestinian rights, but also to the problems faced by ordinary US citizens. Could the $24bn of military aid provided to Israel in the period 2000-2009 not been better spent on schools, healthcare and other essential services? Did Israel not play a major role in prodding the US to launch and continue its wars in Iraq and Afghanistan, at immense human and material cost, mainly borne by the poorest in those countries?
But, we must remind ourselves all the time that this struggle will never be easy, and reaching our objectives never inevitable. As Martin Luther King once said:
Change does not roll in on the wheels of inevitability, but comes through continuous struggle. And so we must straighten our backs and work for our freedom. A man can’t ride you unless your back is bent.
The refreshing scenes of determined peaceful protest for justice from around the world tell us that we, the 99% of the world, are in the process of straightening our backs, collectively, with unwavering fortitude and boundless hope.
– BNC Secretariat
From Argentina to Wall Street
Benjamin Dangl writes: Almost overnight in late 2001, Argentina went from having one of the strongest economies in South America to one of the weakest. During this economic crash, the financial system collapsed like a house of cards and banks shut their doors.
Faced with such immediate economic strife and unemployment, many Argentines banded together to create a new society out of the wreckage of the old. Poverty, homelessness and unemployment were countered with barter systems, factory occupations, communally-run kitchens and alternative currency.
Neighbourhood assemblies provided solidarity, support and vital spaces for discussion in communities across the country. Ongoing protests kicked out five presidents in two weeks, and the movements that emerged from this period transformed the social and political fabric of Argentina.
These activities reflect those taking place at Occupy Wall Street and in other actions around the US right now. Such events in Argentina and the US are marked by dissatisfaction with the political and economic system in the face of crisis, and involve people working together for solutions on a grassroots level. For many people in Argentina and the US, desperation pushed them toward taking matters into their own hands.
“We didn’t have any choice,” Manuel Rojas explained to me about the occupation of the ceramics factory he worked at outside the city of Mendoza, Argentina during the country’s crash.
“If we didn’t take over the factory we would all be in the streets. The need to work pushed us to action.”
This was one of hundreds of businesses that were taken over by workers facing unemployment during the Argentine crisis. After occupying these factories and businesses, many workers then ran them as cooperatives. They did so under the slogan, “Occupy, Resist, Produce”, a phrase borrowed from Brazil’s Landless Workers Movement (MST), which has settled hundreds of thousands of families on millions of acres of land through direct action.
In 2008 in Chicago, when hundreds of workers were laid off from the Republic Windows and Doors factory, they embraced similar direct action tactics used by their Argentine counterparts; they occupied the factory to demand the severance and vacation pay owed to them – and it worked.
Mark Meinster, the international representative for United Electrical Workers, the union of the Republic factory workers, told me that the strategies applied by the workers specifically drew from Argentina. In deciding on labour tactics, “We drew on the Argentine factory occupations to the extent that they show that during an economic crisis, workers’ movements are afforded a wider array of tactical options,” Meinster said.
Many groups and movements based in the US have drawn from activists in the South. Besides the 2008 occupation of the Republic Windows and Doors factory in Chicago, movements for access to water in Detroit and Atlanta reflected strategies and struggles in Cochabamba, Bolivia, where in 2000, popular protests rejected the multinational company Bechtel’s water privatisation plan and put the water back into public hands.
The Take Back the Land movement in Florida, which organised homeless people to occupy a vacant lot and pairs homeless families with foreclosed homes, mirrors the tactics and philosophy of the landless movement in Brazil. Participatory budgeting in Brazil, which provides citizens with direct input on how city budgets are distributed, is now being implemented by communities across the US.
Saudi oil exports under threat from within
Reuters reports: The world may have to live on a lot less Saudi Arabian crude towards the end of this decade as rampant internal demand eats into oil exports and the kingdom’s alternative energy plans may prove too little too late.
The top crude exporter is already burning more than 10 percent of its output in power plants on hot summer days. Meanwhile huge fuel subsidies, which have helped sedate Saudi social unrest throughout the Arab Spring, are exacerbating a demand boom that is lapping up the world’s largest oil reserves.
Faced with ever increasing quantities of its biggest export earner being consumed at home, Riyadh is banking on a massive nuclear plant building programme to drastically reduce oil use from around 2020, with solar power bridging the gap.
But that may not be quick enough to avert a supply crunch by the end of the decade for a world economy still hooked on abundant Saudi crude.
“Domestic consumption has been growing very fast as a result of rapid demographics, steady economic growth and heavy subsidies, with the latter leading to excess demand,” said Ali Aissaooui, head of economic research at Arab Petroleum Investments Corporation in Saudi Arabia.
“With the ongoing turmoil in parts of the region, social demands are featuring prominently on top of governments’ policy agenda. In this context phasing out subsidies to rein in excess demand growth has become extremely tricky,” he told Reuters.
“Excess demand could affect the capacity of some countries, such as Saudi Arabia, to maintain the spare capacity needed to provide flexibility to the global oil market.”
Thanks to huge subsidies, which the International Energy Agency (IEA) warned last week encourage waste, Saudi energy demand has been growing much faster than its non-oil economy in the last few years, while the rest of the world has become more efficient in its energy use.
According to analysts at Riyadh-based Jadwa Investment, oil demand in the kingdom rose by 22 percent between 2007 and 2010, out pacing the Chinese oil demand growth rate despite China’s economy expanding almost three times faster.
In UK, Goldman Sachs let off paying £10m interest on failed tax avoidance scheme
The Guardian reports: Britain’s tax authorities have given Goldman Sachs an unusual and generous Christmas present, leaked documents reveal. In a secret London meeting last December with the head of Revenue, the wealthy Wall Street banking firm was forgiven £10m interest on a failed tax avoidance scheme.
HM Revenue and Customs sources admit privately that the interest-free deal is “a cock-up” by officials, but refuse to say who was responsible.
Documents leaked to Private Eye magazine and published in full by the Guardian record that Britain’s top tax official, HMRC’s permanent secretary Dave Hartnett, personally shook hands on a secret settlement last December.
Hartnett is due to be questioned on Wednesday by the Commons public accounts committee. The leaked documents suggest that a previous PAC chairman, Edward Leigh, was misled when he was told it was illegal to reveal details of such cases to parliament.
Leaked legal advice from James Eadie QC, which the Guardian also publishes today, says the opposite. Hartnett has discretion to reveal such facts to the parliamentary watchdog, according to the advice.
Leigh said: “It just underlines the absurd culture of secrecy that still pervades Whitehall.”
Hartnett also refused to give the facts about Goldman Sachs to MP Jesse Norman on the Treasury committee last month, claiming disclosure would be illegal. He also refuses to brief ministers on the details.
The £10m Christmas gift for Goldman was the culmination of a prolonged attempt by the US firm to avoid paying national insurance on huge bonuses for its bankers working in London.
The sum was pocket change to Goldman, whose employees received $15.3bn (£9.5bn) in pay and bonuses last year. Its Wall Street head, Lloyd Blankfein, received $68m in 2008 and at the height of Britain’s banking crisis 100 London partners set their bonuses at £1m each. This level was considered a mark of restraint.
Roubini: Occupy Wall Street is a symptom of the economic malaise facing the world
Foreign Policy magazine interviewed the economist Nouriel Roubini and Ian Bremmer, head of the Eurasia Group political-risk analysis firm.
Foreign Policy: What do you think of the Occupy Wall Street protests? Have you been down to see them?
Nouriel Roubini: I stopped by. My view of it is that it is a symptom of the economic malaise that we’re facing not just in the United States, but all over the world. It started with the Arab Spring, and of course, poverty, unemployment, corruption, inequality eventually leads to people becoming restless. But now, you have middle-class people in Israel saying we cannot afford homes; you have middle-class students in Chile saying we don’t have education; you have riots in London; people smashing Mercedes and BMWs of fat cats in Berlin and Frankfurt; you have an anti-corruption movement in India. It takes a lot of different manifestations, but we live in a world with a lot of economic insecurity, of worries about the future, of inequality, poverty, of concerns about jobs. And [Occupy Wall Street] is the manifestation in the U.S.
In 2009, [President Barack] Obama told the bankers, “I’m the only one who’s standing between you and the pitchforks.” The bankers got the bailouts; they were supposed to extend credit, extend mortgages. They did pretty much nothing, and they went back to the same actions as before: making money through trading. At this point, I think people are fed up with it. Rightly or wrongly, there’s a huge amount of anger.
FP: Ian, do you think the so-called 1 percent feels any pressure to change its practices?
Ian Bremmer: Less than you think. It’s very clear that there is rising animosity toward the financial sector. It’s true in the United States and in Europe, as well. And I do think these economic protests have legs, even though they’re very poorly organized and it’s not entirely clear what they are or what the agenda is. And I say that because we’re in an election year and there are a lot of wealthy, vested interests that are both on the Democratic and the Republican side that will try to throw money at these guys and tap into some of that anger. We’ll see where it goes.
Having said that, the United States is not Egypt. It’s not as if you have unemployment in the U.S. and as a consequence people starve. You still have a lot of political apathy in the United States. You also have a country — frankly, much like Saudi Arabia — where a lot of immigrants come in and take jobs that the average American, even an unemployed American, wouldn’t necessarily want. 9.1 percent unemployment is very, very high, and it’s an outrage in this country to have that level of sustained unemployment. Yet it appears to be something that Washington is prepared to tolerate. We don’t see an urgency in Washington to truly address the issue, certainly nothing like the urgency you see in Europe today.
So I don’t think the 1 percent is coming under the kind of pressure that would force them to take a different position.
NR: I would make the point that, however, while I agree with what Ian says, that the “official” unemployment rate is 9.1 percent — but the one that includes discouraged workers who have left the labor force or partially unemployment has gone from 16.2 percent to 16.5 percent. And if you add to it the millions of people that you have in jail in the U.S. — which is four times the amount of any civilized country as a share of population — than unemployment is probably closer to 20 percent. And that’s just among the average population. For minorities, the youth, or unskilled people that don’t have a high school degree, the number is closer to 30 percent. It’s a stressful situation.
The U.S. might not be Europe, but the U.S. is not used to having an unemployment rate so high — and staying so high. Usually, when you get a recession the monetary and fiscal stimulus leads to a recovery of jobs in short order. But this is becoming chronic and longer term. Either the United States becomes like Europe — and we’ve already extended unemployment benefits three or four times over — or otherwise you have a much bigger social welfare state and safety net. Or you’ll have people rioting in the streets. We have to do something either way. Either we’ll have a fiscal problem or a social problem.
ThinkProgress reports: The new NBC/Wall Street Journal poll [PDF] shows that Americans support the Occupy Wall Street protests by a two-to-one margin (37 percent in favor, 18 percent opposed) while more Americans view the Tea Party negatively (28 percent in favor, 41 percent opposed). This means the Occupy Wall Street protests have a net favorability of +19 percent while the Tea Party has a net favorability of -13 percent, as this chart produced by ThinkProgress shows (right).
A new Time Magazine poll found an even more positive results for Occupy Wall Street, showing 54 percent held a favorable view of the movement, compared to just 27 percent with a favorable view of the Tea Party. In the Time poll, just 23 percent had an unfavorable view of Occupy Wall street, for a net rating of +31 percent. Meanwhile, 33 percent had an unfavorable view of the Tea Party, giving it a a net rating of -6 percent.
Egypt’s military more brutal than Mubarak regime, eyewitnesses say
Al-Masry Al-Youm reports: A day after Egypt’s military rulers provided their account of this week’s deadly clashes between soldiers and mostly Christian protesters, activists responded with an opposing narrative that accused the army of committing brutalities hitherto unseen under former President Hosni Mubarak.
Armed with videos of the clashes, human rights activists, lawyers and victims’ families who witnessed the incident told their side of the story on Thursday at a news conference. The clashes, which happened on Sunday, left at least 26 killed and more than 300 injured.
“The performance of the military, which always took pride in never firing a bullet at the revolutionaries, surpassed that of Mubarak’s mercenaries. It shed the blood of Egyptians in cold blood and with the cruelest of means, even throwing dead bodies in the Nile in an attempt to cover up their crimes,” read a statement signed by at least 12 political parties and youth groups and distributed to local and foreign media at the conference.
On the stage, Mary Daniel, sister of Mina Daniel, who was killed on Sunday, sat in her mourning black to describe what happened in the Coptic-led march which began in Shubra and ended in tragedy once demonstrators reached the Maspero area in downtown Cairo.
“I was with Mina,” said Daniel. “We marched from Shubra until we reached Maspero. It was a long distance. If we had been armed, people would have resisted us from the beginning. We were peaceful.”
After reaching Maspero, “We saw an influx of armored vehicles, bullets, tear gas bombs and stones,” said Daniel. “The scene was horrible. Even if we were in the middle of a war, things would not have been like that.”
Mariz Tadros writes: At first, it looked like a repeat of the worst state brutality during the January 25 uprisings that unseated the ex-president of Egypt, Husni Mubarak: On Sunday, October 9, security forces deployed tear gas, live bullets and armored vehicles in an effort to disperse peaceful protesters in downtown Cairo. Joined by Muslim sympathizers, thousands of Coptic Christians had gathered that afternoon in front of the capital’s state television and radio building, known as Maspero, and in many other parts of Egypt, to protest the burning of a church in the Upper Egyptian village of al-Marinab. A few days earlier, their initial demonstrations had also been met with violence.
What happened next, however, was worse than any single incident of state violence in January and February: Captured live by the cameras of the al-‘Arabiyya satellite channel, armored personnel carriers bearing army markings sped toward the protesters, at one point bumping cumbrously over curbs and a sidewalk, and crushed several people to death underneath their massive treads. By night’s end, 17 demonstrators were dead, and 300 more injured, some in critical condition. The death toll is now at least 25 and counting. Furthermore, the army’s claim to fame during the January-February popular uprising — that it would not, under any circumstances, harm Egyptian civilians — has now been given the definitive lie.
How it all started is hotly debated. At a press conference on October 12, representatives of the Supreme Council of the Armed Forces (SCAF), Egypt’s de facto ruling authority since Mubarak’s ouster, insisted that the army did not attack first or even engage the demonstrators. Some SCAF defenders put forward the notion that the army did engage, but only because it was provoked by the assaults of the protesters. Others argue that “thugs” of unknown provenance infiltrated the demonstration to foment chaos and invite the army’s retaliation. Yet the overwhelming thrust of eyewitness accounts, from both Muslims and Christians, is that the army initiated the violence, first throwing stones, then wielding batons, then firing live ammunition, before taking the grim final step of grinding protesters into the pavement. Certainly, several protesters threw stones as well, but eyewitnesses are adamant that they did so in response to the bullets being shot at them.
The scatterbrained, hapless, terrorist, used-car salesman
The San Antonia Express-News reports: The man accused of scheming to kill a Saudi diplomat is described by those who know him as a scatterbrained, hapless businessman who in college earned the nickname “Jack” for his affinity for whiskey — hardly the type to mastermind a terrorist plot.
A long-time associate and former business partner of Manssor Arbabsiar said the terror suspect had owned a string of used-car and other businesses in the Corpus Christi area, but if anything seemed absentminded and shifty.
“He was pretty disorganized, always losing things like keys, titles, probably a thousand cellphones,” said David Tomscha, an Aransas Pass businessman who ran a used-car lot with Arbabsiar. “He wasn’t meticulous with taking care of things.”
News that Arbabsiar was implicated in a plot to assassinate the Saudi Arabian ambassador to the U.S. surprised Tomscha and others who knew him.
Tomscha said that if the allegations were true, Arbabsiar must have been driven by “easy, squeezy” money rather than religious or political zealotry.
“He never spoke ill of the United States,” Tomscha said. “I always thought he liked it here, because he could make money. He loved to make money.”
Tomscha said his acquaintance with Arbabsiar, who liked to be called “Jack,” went back more than a decade, though they’d lost touch about a year ago.
Tom Hosseini, an Iranian whose friendship with Arbabsiar dates back 30 years, went as far as calling Arbabsiar “a joke.”
The two were roommates at what’s now Texas A&M University-Kingsville, but Arbabsiar dropped out after two semesters and finished his degree in Louisiana.
It was Hosseini who nicknamed Arbabsiar “Jack,” for the quantities of Jack Daniel’s whiskey Arbabsiar would drink.
“Scarface,” another nickname, was for the lasting reminder of the time Arbabsiar arranged for the then-college students to party with some girls, not knowing the girls’ boyfriends would arrive wielding bats and knives.
Was Arbabsiar religious?
“He couldn’t even pray, doesn’t know how to fast. He used to drink, smoke pot, go with the prostitutes,” Hosseini said, laughing with a clerk at his market in downtown Corpus Christi. “His first wife left him because he would lose his keys every other day. … This guy is not a mastermind.”
Reuters reports: The Obama administration has conducted numerous undercover and sting operations leading to arrests of many people seeking to carry out bombing or other attacks on U.S. soil, prompting some questions about the tactics used.
No individuals charged in terrorism cases involving undercover operations since the Sept. 11, 2001, attacks have prevailed using an entrapment defense, said Georgetown University law professor David Cole, a longtime expert on the subject who has challenged terrorism policies in U.S. court.
“Entrapment requires the defendant to show that he was not predisposed to commit the crime, so that the crime was instigated by the government rather than by himself,” said Cole.
“The more serious the crime, the more difficult it is to imagine that someone would commit it who was not predisposed to commit it,” he said.
[…]
To ensure an individual is not entrapped, undercover agents offer the person chances to back out and typically discuss possible collateral damage, including killing bystanders.In the case of Arbabsiar, the criminal complaint described how he approached an individual in Mexico — who turned out to be a paid U.S. Drug Enforcement Administration informant — with a plot to blow up a Saudi Arabian embassy.
Arbabsiar also discussed with the informant assassinating the Saudi ambassador, which was the plot they pursued, according to the sworn complaint signed by an FBI agent.
While the plot to kill Jubeir never reached the operational stage, the paid informant discussed with Arbabsiar that if they bombed a restaurant the diplomat frequented, potentially 150 others would be killed, including U.S. lawmakers.
Arbabsiar dismissed such concerns, stating “no problem” or “no big deal,” according to the criminal complaint.
Meir Javedanfar writes: Could elements within the Iranian government or security establishment have planned this attack, without Khamenei’s knowledge in order to hurt him and his regime? On the surface, at least, this seems unlikely. However, details of the US claims certainly suggest that the idea isn’t completely without merit. Why? Because according to the Justice Department, Arabisar, who the US government has accused of being connected to the Iranian government, is supposed to have wired $100,000 to the US undercover agent whom he thought would carry out the hit against the Saudi Ambassador.
But this would be extremely sloppy and unprofessional work by a government that has, over the years, become adept at hiding its tracks. Why would Khamenei make himself and his regime so vulnerable by wiring money directly? Why wouldn’t Iranian security officials use third parties operating through third countries?
As crazy as the Iranian regime can sound through its rhetoric, when it comes to protecting its interests, it‘s essentially rational and careful. Iran knows that it can’t afford a war against the United States. It also knows that further deterioration could mean more sanctions and further isolation, both of which would hurt the regime’s ability to sustain itself at home. This is more important to Khamenei’s interests right now than the elimination of the Saudi Ambassador in Washington.
The fact is that looking at Khamenei’s background, such a reckless initiative as the one he is accused of is almost too radical, the costs too high for his regime. This is why it seems at least plausible that elements within the Iranian regime could have orchestrated this to hurt him, with the goal of eventually pushing him out of power.
The Iranian regime is already fractured, and the business interests of many officials are being undermined by Khamenei’s nuclear policies. Meanwhile, the children of former officials such as Intelligence Minister Ali Younesi, are reportedly in jail because of their opposition to the regime. Anyone who wants to hurt Khamenei from within would have plenty of reason to undertake such an initiative, especially as it would ultimately tar the supreme leader.
Julian Borger asks: Could the alleged conspiracy be the work of an extremist cell within the Quds force? In that case, the unit is far more fragmented than previously thought and we should shortly see top people in the organisation disappearing from view. There is a precedent for such a cell: in 1999 the deputy minister of intelligence, Saeed Emami, was arrested and accused of carrying out a series of murders of intellectuals, known as the chain murders, without official authority. He was also reported to have tried smuggling missiles to Brussels to attack Nato. Emami was reported to have killed himself in prison.
Iran sees terror plot accusation as diversion from Occupy Wall Street
The New York Times reports: Iran’s leaders marshaled a furious formal rejection on Wednesday of the United States accusations that the Islamic republic had schemed to assassinate the Saudi ambassador in Washington, calling the case a cynical fabrication meant to vilify Iran and distract Americans from their own severe economic problems, highlighted by the Occupy Wall Street movement.
The Foreign Ministry of Iran issued an angry complaint to the Swiss Embassy in Tehran, which is responsible for monitoring United States interests in Iran since the two broke diplomatic relations 32 years ago after the Islamic Revolution. The ministry said it had summoned the Swiss ambassador to personally convey its outrage over the American charges and warn “against the repetition of such politically motivated allegations.”
Iran’s supreme leader, Ayatollah Ali Khamenei, went a step further. In a speech broadcast on Iran state television, he predicted what he called the demise of American capitalism and corporate favoritism. Press TV, an Iran government Web site that translated portions of the ayatollah’s speech, said he emphasized that “the corrupted capitalist system shows no mercy to any nation, including the American people.”
The ayatollah commended the Occupy Wall Street protests in New York, Washington and other American cities, calling them a consequence of “the prevalence of top-level corruption, poverty and social inequality in America.” He denounced what he called “the heavy-handed treatment of the demonstrators by U.S. officials” and said that such treatment “is not seen even in underdeveloped countries with dictatorial regimes.”
“They may crack down on this movement but cannot uproot it,” Ayatollah Khamenei said. “Ultimately, it will grow so that it will bring down the capitalist system and the West.”
Not that Khamenei would have any experience in heavy-handed treatment of demonstrators!
Syria: Assad’s Alawites
A multi-part series by Al Jazeera special correspondent Nir Rosen, who recently spent seven weeks travelling throughout Syria with unique access to all sides.
Part one — The guardians of the throne: As we left the central Syrian city of Homs, Abu Laith pulled a 9mm Llama pistol from under his shirt, loaded it and placed it in the gap between our seats. He was a sergeant in Syria’s State Security and drove a small Chinese-made taxi to avoid the attention of armed men looking for members of the security forces. Heading north to his village of Rabia, in Hama, we passed shops covered in gashes from gunfire.
“There was a sniper here,” he said at one point on the road. “He shot six military buses.” We drove by a Military Security building that had been attacked by armed opposition fighters.
“Here was a statue of the late President Hafez,” he pointed at a now empty pedestal. Visibly offended, he added: “They took it down and put a live donkey there instead.”
Abu Laith belongs to the Alawite sect who make up about ten per cent of Syria’s population. Sunni Arabs comprise 65 per cent, while Sunni Kurds and Christians constitute ten per cent each. Druze, Shia, Ismailis and others make up the remainder. Since the Baathists seized power in Syria, sectarianism has been taboo, ever-present but unspoken of, with perpetrators of incitement harshly punished.
Prejudice in all its forms – racism, sexism, sectarianism – exist in all societies, but, in times of crisis, collective identity often comes to dominate social relations. Identity is complex and membership of ethno-religious sects is only one part of Syrian identity.
Social class, profession, nationalism, regional identities and other factors are all very important. But one is born into a sect and few but the wealthy elite transcend these classifications, typically revealed by one’s name and place of birth. As in the Balkans, religious identities are often cultural identities and lead to ethnic-like divisions, even within same-language groups.
In the Arab world, the Sunni exercise a hegemony which has often made minority sects feel insecure. Shia and heterodox sects – such as the Alawites – have been persecuted.
Little is known about the history of the Alawite faith – even among the Alawite community – as its beliefs and practices are available only to the initiated few. It bears little resemblance to mainstream doctrines of Islam and involves belief in transmigration of the soul, reincarnation, the divinity of Ali ibn Abi Talib – the fourth Caliph and a cousin of Prophet Muhamad – and a holy trinity comprising Ali, Muhamad and one of the prophet’s companions, Salman al Farisi.
A common theme to Alawite identity is a fear of Sunni hegemony, based on a history of persecution that only ended with the demise of the Ottoman empire. Sunni cultural hegemony, however, remains. [Continue reading…]
Part two — An entrenched community: Driving near the high-altitude resort of Slonfeh in the Alawite mountains of the Latakia region, I passed a funeral tent for a Syrian soldier killed in the region the previous week, one of two military “martyrs” Slonfeh had lost to armed opposition activists. When my driver entered the village of Mazar al-Qatriyeh, he asked to be directed towards Sheikh Khalil Khatib, a respected Alawite elder. “Ask the rocks and they will tell you,” said one man. “Everybody knows him.”
The sheikh was an intense old man who lectured me while a television behind him screened the Hezbollah-affiliated al-Manar satellite channel.
“You can be called a sheikh for being old or for being educated,” he explained to me. He blamed religious sheikhs for the crisis in Syria. “They aren’t sheikhs of thought,” he said. “They are sheikhs of air, that’s why Syria has all these problems. I am a sheikh of logic.”
I told him that the opposition said Alawites controlled the regime. “This is rejected,” he said. “It’s for justifying the attack against the regime.” He listed ministers, governors, and director-generals and insisted very few were Alawites and most were Sunni.
“Our president is Alawite and we suffer from this,” he said. “There are four million Alawites,” he claimed with some exaggeration. “We don’t have even one per cent of the positions in the government.” He and his guests said they believed Syria was being pressured so it would make a deal with Israel. “If Bashar signs a humiliating peace we are against him,” said Ali Janud, a professor of civil engineering. “I am not with Hezbollah because they are Shia,” he said, “only because they are resistance.”
The sheikh agreed. “We are with the devil if he fights Israel,” he said. If outside powers intervened in Syria it would lead to armageddon, the sheikh said. “If they want to destroy us,” he said, “they are welcome.”
The sheikh conflated the protesters with the armed opposition. “The armed people are ignorant and don’t have any education,” he said. “In the mountains we are all educated,” said one of his guests. “Our orientation is education.” Janud agreed: “This is a conflict between ignorance and knowledge,” he said. Bayda and Baniyas, two coastal towns that had seen demonstrations, had nobody educated in them, the sheikh said, and they were majority Sunni. “And the Alawite villages around [those towns] are all educated.”
He recommended that I read the Protocols of the Elders of Zion, an infamous anti-semitic book about a fabricated Jewish conspiracy written in Russia a century ago – but still sometimes believed to be true. This would help me understand how Saudi Arabia was a chess piece in the hands of world Zionism, he said. “Jews are the cause of corruption in the world,” he told me. [Continue reading…]
The preceding parts in this series:
Syria: The revolution will be weaponised (September 23)
Armed defenders of Syria’s revolution (September 27)
Syria’s symphony of scorn (September 30)
Ghosts in the mosques (September 30)
The tides of mosques (October 2)
A conversation with Grand Mufti Hassoun (October 3)
Irvine 11 conviction reveals double standard and bias
Amirah Mizrahi, Antonia House and Emily Ratner write: When we disrupted Israeli Prime Minister Benyamin Netanyahu’s keynote speech at the Jewish Federations of North America’s annual general meeting last November in New Orleans, we were met with hisses, boos, verbal harassment and even physical attacks from other members of the audience. But criminal charges were never so much as mentioned. Yet, on September 23rd, ten students who interrupted Israeli Ambassador Michael Oren’s speech at UC Irvine in February 2010 were convicted of two misdemeanors for their participation in that protest. Today, October 11, 2011, is a national day of action to protest those unjust convictions. We think it’s a perfect opportunity to look at the similarities and differences in these two actions.
In both protests, each person who stood up to bring attention to crimes committed by the Israeli government acted non-violently, and cooperated fully with security personnel and the police. So what was the difference? Why were we not arrested, charged and tried while the Irvine 11 were? Logically, the opposite should have been true: our target was bigger – the Prime Minister of Israel; our venue was bigger – the largest Jewish event in North America; and our protest came later – inspired in part by the brave actions of the Irvine 11. But there is one more difference, and it proved to be the crucial one: we are Jews and the Irvine 11 are Muslims.
Get hacked, don’t tell: drone base didn’t report virus
Danger Room reports: Officials at Creech Air Force Base in Nevada knew for two weeks about a virus infecting the drone “cockpits” there. But they kept the information about the infection to themselves — leaving the unit that’s supposed to serve as the Air Force’s cybersecurity specialists in the dark. The network defenders at the 24th Air Force learned of the virus by reading about it in Danger Room.
The virus, which records the keystrokes of remote pilots as their drones fly over places like Afghanistan, is now receiving attention at the highest levels; the four-star general who oversees the Air Force’s networks was briefed on the infection this morning. But for weeks, it stayed (you will pardon the expression) below the radar: a local problem that local network administrators were determined to fix on their own.
“It was not highlighted to us,” says a source involved with Air Force network operations. “When your article came out, it was like, ‘What is this?’”
The drones are still flying over warzones from Afghanistan to Pakistan to Yemen. There’s no sign, yet, that the virus either damaged any of the systems associated with the remotely piloted aircraft or transmitted sensitive information outside the military chain of command — although three military insiders caution that a full-blown, high-level investigation into the virus is only now getting underway.
Obama’s obsequiousness is shameful
Avraham Burg writes: It was depressing to see American President Barack Obama’s weak appearance at the United Nations. It was depressing to see this talented man, who brought such great hope to the world, presenting the pitiable position of a feeble empire. It was embarrassing to see him defending positions and people whom only a few months earlier he had attacked with fury. His obsequiousness is shameful, and this weakness is a real danger to the world. Therefore anyone who wants peace cannot make do merely with accusing Obama. One cannot allow his desperation to have veto power over our hope.
It is strange, but we no longer have anyone on whom to rely but the head of the Palestinian Authority, Mahmoud Abbas. If the current Palestinian move in the UN is successful, it will be wonderful. There will be two states between whom negotiations will be conducted – on an equal footing, and not as an occupying force and the vanquished – about their future and the relations between them. But if the move fails, because Obama has become a hostage in the hands of Prime Minister Benjamin Netanyahu, who himself is a hostage in the hands of the settlers and other Israeli extremists, we will be left merely to wonder what the next step will be.
In the past few years, there has been a change in the cast of players in the Middle East theater of the absurd. Israel has become big and clumsy, erring and intransigent. The Palestinians, or at least those among them who support the PA and the government in Ramallah, have taken over the role that was once ours: seeking peace, restraining violence, building a state, and initiating diplomacy. That is how things are in history – yesterday’s weak ones are today’s sated, decadent ones; the victim becomes the oppressor.
On the other hand, as has happened more than once in history, the hope for change lies with the weak. The weak side is the side that stands to gain most from change, and is therefore prepared to take great personal and political risks for change. Netanyahu is several times worse than former prime ministers – David Ben-Gurion, who established the state, or Menachem Begin who achieved peace with Egypt, or Yitzhak Rabin, who tried to follow the Oslo path and paid for it with his life. Abbas is several times better than PLO leader Yasser Arafat who preceded him. That is how things are. They are in a state of evolving and we are receding.
I realize that the commitment to democracy is an inseparable part of the PA’s leadership today. (It is not possible to say the same for the Israeli leadership ). I hope it is a path of no return. If the idea of realizing this aspiration in the framework of a democratic Palestinian state does not bear fruit, the Palestinians must embark on a worldwide initiative demanding that they be allowed to vote for the Knesset. Yes, Israel’s parliament.
This initiative must be accompanied by a non-violent civil rebellion. It will attract a great deal of attention and will cast the spotlight on the paradox of Israeli hypocrisy which claims that we are the only democracy in the Middle East but forgets to point out that we are a democracy for Jews alone. Because we are also the only colonialist conqueror that is left in the Western world.
In order to prove the seriousness of their intentions, the Palestinians need a pilot project, so here it is. The Palestinian leadership must ask the Arabs of East Jerusalem to get organized for the next municipal elections. Since 1967, there have been about one quarter of a million Arabs who have the right to vote in the municipality of Jerusalem alone. In protest against the offensive annexation of the eastern part of the city, they have never realized their democratic right. However this protest does not really help.
The time has come for the anger to be turned into a constructive step. I have no doubt that the moment that one third of the members of the city council of Israel’s capital represent the residents of East Jerusalem, everyone will start to wake up.
Even Netanyahu, who is always the last to wake up, will make sure to stay alert. Because Palestinian political partnership in Jerusalem means one city that belongs to all its residents. That will be very different from the disgraceful situation of discrimination that exists today. One city that belongs to all its residents is only the prologue to one state that belongs to all its citizens between the Jordan River and the sea. That is the real price of the refusal on the part of Netanyahu and the right.
Anyone who is not prepared to do anything to promote two states today – and who is not prepared to pay the price by evacuating the settlements – will, in the end, have to concede all of the state of Israel. That is to say, the Jewish and not so democratic state will be renounced in favor of a legitimate democratic process in which everyone between the Jordan River and the sea has one basic right – the human and civic equality to elect and to be elected. They will have at least the very same rights that are enjoyed by Obama and his new friend who knows just how to manipulate him, Netanyahu.
Avraham Burg is an Israeli author and a former Speaker of the Knesset.
Trust bust: Why no one believes the banks
Jesse Eisinger writes: Morgan Stanley by any measure is a safe and solid investment bank. Except for one: The amount of trust people have in the whole financial and political system. It’s just about zero.
That’s why the bank’s shares are down 42 percent this year. That’s why all the big bank stocks have double-digit dips.
True, they start their next round of quarterly reporting in a matter of days. Morgan Stanley is scheduled to report its third-quarter earnings on Oct. 19, and its earnings may calm fears temporarily.
But the essential problem will still be there, a slow burn beneath the global financial system that flares up at the worst moments. Banks don’t have faith in other banks, investors are deeply scarred and wary, and nobody believes that the governments around the world could grapple with the magnitude of the problems, even if they wanted to.
Three months ago, the Belgian bank Dexia passed the European stress tests. By that measure, it was fine. Then it collapsed.


