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Showing posts with label Robert Fisk. Show all posts
Showing posts with label Robert Fisk. Show all posts

Wednesday, October 7, 2009

The Demise Of The Dollar

The Independent (published from London) in its front-page article on Tuesday (October 6) headlined The Demise of the Dollar, by its legendary Middle East correspondent Robert Fisk exposing a secret plot by international central banks to topple the US dollar, has rocked the world.

In the report Fisk says secret talks have been taking place between Arab states and China, France, Japan and Russia, to stop using the US currency for oil trading and to move to a basket of currencies.

The proposed new basket supposedly includes the Japanese yen and Chinese yuan, the euro, gold and a new, unified currency planned for the six-member Gulf Cooperation Council (comprising Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE).

Finance ministers and central bank governors in Russia, China, Japan and Brazil have been working on the scheme, says Fisk, adding, the talks “may help to explain the sudden rise in gold prices, but it also augurs an extraordinary transition from dollar markets within nine years”.

He adds: “The Americans, who are aware the meetings have taken place — although they have not discovered the details — are sure to fight this international cabal which will include hitherto loyal allies Japan and the Gulf Arabs.”
Denials have been coming out thick and fast from all the central banks involved, especially Saudi Arabia. But given Fisk's formidable reputation, the report moved markets declined against 14 of its 16 major counterparts, Bloomberg reported.

As the Financial Times (of London) stressed: “The article in The Independent becomes quite serious in that The Independent has not been given to such rumours in the past. This is not The Sun, nor the NY Post. The Independent is a reasonably credible news source and we suspect that the leaks made to the newspaper are to be taken quite seriously. Certainly the markets are taking it as such, and we should also.”

Not surprisingly, the Financial Times is distressed. “This is not new news of course, for such a change from dollar pricing to some other methodology has been discussed, rumoured, tossed about for months, but this time we note that Japan and France are involved in the meetings and that changes the tenor of the rumours entirely. Too, the addition of the Saudis and the Emirates AND Kuwait to the meetings adds further importance and seriousness to the threats.”

FT is not alone. A rather alarmed Dennis Gartman of the Gartman Letter wrote: “IT IS UNANIMOUS: “THEY” HATE THE US DOLLAR and it appears that a fully fledged attack is being made upon the US currency this morning (October 6), with money flowing anywhere and everywhere… but particularly to the non-US dollars, the Canadian, the Aussie and the New Zealand dollars. Fears of problems in the Middle East; fears that the world is turning away from the US dollar as the policies being followed by the left-of-centre Obama Administration; fears of fears.. it makes no difference at this point. The rout is on, and it is not a pretty sight to behold.”

BNY Mellon, meanwhile, did not make much of the central bank denials: “Given the enormity of events these past two years, it is entirely understandable that investors took to the sidelines ahead of meetings of the G20 and G7 whose contingent were seemingly armed with a greater will to effect change. Yet given that these meetings appear to have actually contributed to a reinforcement of the status quo, then there seems little reason to believe that investors will not resume their prior activities. As such, this continues to bode ill for the USD.”

The idea of replacing the dollar for oil trading is not new. Venezuelan President Hugo Chavez has been seeking Arab support for a proposed oil-backed currency for some time now. In fact another report today in TOI says: “UN countries should agree on the creation of a global reserve bank to issue the currency and to monitor the national exchange rates of its members, the Geneva-based UN Conference on Trade and Development said on Tuesday in a report.”

But as Fisk wryly concludes: “Bankers remember, of course, what happened to the last Middle East oil producer to sell its oil in euros rather than dollars. A few months after Saddam Hussein trumpeted his decision, the Americans and British invaded Iraq.”

Roger Alexander

Wednesday, July 29, 2009

Why Does Life In The Middle East Remain Rooted In The Middle Ages?

Robert Fisk, a journalist I admire greatly, has covered West Asia for more than three decades. This excellent piece he argues the Arabs – or, outside the Arab world, the Iranians or the Afghans – will not produce the eco-loving, gender-equal, happy-clappy democracies that we would like to see. But freed from "our" tutelage, they might develop their societies to the advantage of the people who live in them. Maybe the Arabs would even come to believe that they owned their own countries

Why is the Arab world – let us speak with terrible sharpness – so backward? Why so many dictators, so few human rights, so much state security and torture, so terrible a literacy rate?

Why does this wretched place, so rich in oil, have to produce, even in the age of the computer, a population so poorly educated, so undernourished, so corrupt? Yes, I know the history of Western colonialism, the dark conspiracies of the West, the Arab argument that you cannot upset the sheikhs and the kings and the autocrats, the imams and the emirs when the "enemy is at the gates". There is some truth to that. But, not enough truth.

Once more the United Nations Development Program has popped up with yet one more, its fifth, report that catalogues – via Arab analysts and academics mark you – the retarded state of much of the Middle East. It talks of "the fragility of the region's political, social, economic and environmental structures... its vulnerability to outside intervention". But does this account for desertification, for illiteracy – especially among women – and the Arab state which, as the report admits, is often turned "into a threat to human security, instead of its chief support"?

As Arab journalist Rami Khouri stated bleakly last week: "How we tackle the underlying causes of our mediocrity and bring about real change anchored in solid citizenship, productive economies and stable statehood, remains the riddle that has defied three generations of Arabs."

Real GDP per capita in the region – one of the statistics which truly shocked Khouri – grew by only 6.4 per cent between 1980 and 2004. That's just 0.5 per cent annually, a rate which 198 of 217 countries analysed by the CIA World Factbook bettered in 2008. Yet the Arab population – which stood at 150 million in 1980 – will reach 400 million in 2015.

I notice much of this myself. When I first came to the Middle East in 1976, it was crowded enough. Cairo's steaming, fetid streets were already jam-packed, night and day, with up to a million homeless living in the great Ottoman cemeteries. Arab homes are spotlessly clean but their streets are often repulsive, dirt and ordure spilling on to the pavements.

Even in beautiful Lebanon, where a kind of democracy does exist and whose people are among the most educated and cultured in the Middle East, you find a similar phenomenon. In the rough hill villages of the south, the same cleanliness exists in every home. But why are the streets and the hills so dirty?

I suspect that a real problem exists in the mind of Arabs; they do not feel that they own their countries. Constantly coaxed into effusions of enthusiasm for Arab or national "unity", I think they do not feel that sense of belonging which Westerners feel. Unable, for the most part, to elect real representatives – even in Lebanon, outside the tribal or sectarian context – they feel "ruled over".

The street, the country as a physical entity, belongs to someone else. And of course, the moment a movement comes along and – even worse – becomes popular, emergency laws are introduced to make these movements illegal or "terrorist". Thus it is always someone else's responsibility to look after the gardens and the hills and the streets.

And those who work within the state system – who work directly for the state and its corrupt autarchies – also feel that their existence depends on the same corruption upon which the state itself thrives. The people become part of the corruption. I shall always remember an Arab landlord, many years ago, bemoaning an anti-corruption drive by his government. "In the old days, I paid bribes and we got the phone mended and the water pipes mended and the electricity restored," he complained. "But what can I do now, Mr, Robert? I can't bribe anyone – so nothing gets done!"

Even the first UNDP report, back in 2002, was deeply depressing. It identified three cardinal obstacles to human development in the Arab world: the widening "deficit" in freedom, women's rights and knowledge. George W Bush – he of enduring freedom, democracy, etc etc. amid the slaughter of Iraq – drew attention to this.

Understandably miffed at being lectured to by the man who gave "terror" a new name, even Hosni Mubarak of Egypt (he of the constantly more than 90 per cent electoral success rate), told Tony Blair in 2004 that modernization had to stem from, "the traditions and culture of the region".

Will a solution to the Arab-Israeli war resolve all this? Some of it, perhaps. Without the constant challenge of crisis, it would be much more difficult to constantly renew emergency laws, to avoid constitutionality, to distract populations who might otherwise demand overwhelming political change. Yet I sometimes fear that the problems have sunk too deep, that like a persistently leaking sewer, the ground beneath Arab feet has become too saturated to build on.

I was delighted some months ago, while speaking at Cairo University – yes, the same academy which Barack Obama used to play softball with the Muslim world – to find how bright its students were, how many female students crowded the classes and how, compared to previous visits, well-educated they were. Yet far too many wanted to move to the West. The Koran may be an invaluable document – but so is a Green Card. And who can blame them when Cairo is awash with PhD engineering graduates who have to drive taxis?

And on balance, yes, a serious peace between Palestinians and Israelis would help redress the appalling imbalances that plague Arab society. If you can no longer bellyache about the outrageous injustice that this war represents, then perhaps there are other injustices to be addressed. One of them is domestic violence, which – despite the evident love of family which all Arabs demonstrate – is far more prevalent in the Arab world than Westerners might realize (or Arabs want to admit).

But I also think that, militarily, we have got to abandon the Middle East. By all means, send the Arabs our teachers, our economists, our agronomists. But bring our soldiers home. They do not defend us. They spread the same chaos that breeds the injustice upon which the al-Qa'idas of this world feed.

No, the Arabs – or, outside the Arab world, the Iranians or the Afghans – will not produce the eco-loving, gender-equal, happy-clappy democracies that we would like to see. But freed from "our" tutelage, they might develop their societies to the advantage of the people who live in them. Maybe the Arabs would even come to believe that they owned their own countries.(The Independent)

Sunday, June 21, 2009

Lies, Fantasy And Twitter In Iran Elections

By Roger Alexander

Twittering "truth” out of Tehran these days has become an industry in own right. Amazingly, by basing its stories and analysis on 140-character "tweets" emanating from Iran, virtually the entire Western media is unanimous that the Iranian presidential election last week was “stolen” by Mahmoud Ahmadinejad with the blessings of the “clerical regime.” It is claimed that the fraud was committed to keep out of office the “moderate, secular, and pro-US” former prime minister Mir Hossein Mousavi.

The coverage by the Western corporate media typifies a presentation of Ahmadinejad's victory over Mousavi, that abandons any pretence of journalistic objectivity. It is sheer propaganda aimed at discrediting the election result.

A typical example: The Christian Science Monitor quoted Farideh Farhi, an 'expert' of Iranian elections at the University of Hawaii, saying, “I am convinced they just pulled it out of their hats.” Indeed, it is easy to be “convinced” when you're half way across the world on the beautiful Waikiki Beach.

I hold no brief for Ahmadinejad. But the manner in which the Western corporate media continues to demonise a sovereign nation and its president borders on the obscene. And they are steadfast in their belief that they, and not the people of Iran, are the agents of social change in that country.

The Western media has conveniently forgotten that Ahmadinejad has strong support among urban workers and the rural poor—the vast majority of the population. That Ahmadinejad (who was previously mayor of Tehran and commands a substantial base among the urban poor and in the rural areas) has retained this constituency is a fact grudgingly acknowledged by various Western commentators.

Besides, it is not mentioned that Mousavi campaigned as no less an ardent defender of Islamic clerical rule than Ahmadinejad. On domestic policy, he vaguely called for more openness, while opposing Ahmadinejad’s “populist” subsidies to the urban poor and the peasantry.

The media has also not sought to explain why the mass of the Iranian people should be expected to support an advocate of the same free market policies that have produced a social disaster throughout the world.

Still, directly reflecting the outlook of the Obama administration, the corporate media promoted the candidacy of Mousavi and depicted a rising tide of “popular support” that was certain to either sweep the “reformer” into office or obtain a close enough result to force a run-off contest with Ahmadinejad.

In their function as conduits for the state and US imperialist policy, the corporate media is seeking to promote the notion that a victory for Mousavi would have represented a “triumph of democracy” and opened up a new chapter in US-Iranian relations. The only possible explanation for Ahmadinejad’s landslide victory, they immediately concluded, was “fraud”. But is there a fraud involved?

There is no reason for anyone to believe Supreme Leader Ayatollah Ali Khamenei who said yesterday (June 19) that the election was fair. So the next best thing is to look at the analysis undertaken by independent American scholars and reported in the media.

Writing in the online journal Slate, University of Wisconsin mathematician Jordan Ellenberg applied some statistical analysis to what critics identified very early as a suspicious consistency in Ahmadinejad's results.

Hours after polls closed on June 12, the blog Tehran Bureau pointed out that in the six waves of tallied votes, Ahmadinejad's total ranged from 62 to 70 per cent. Ellenberg wrote that consistency might look odd to American voters “who may be more used to seeing wide swings in the vote totals” because “our fine-grained media start reporting results when just a few per cent of the votes are in.”

But he found nothing statistically inexplicable about the results. The batches of the votes were sufficiently large, he said, that they naturally absorbed the extremes of popularity that one would expect in a diverse electorate and delivered averages that were more or less uniform but not identically so. “The official numbers may or may not be authentic,” he wrote, “but they're messy enough to be true,” Ellenberg concluded.

Indeed, opinion polls done before the election indicated that Ahmadinejad - as unpopular as he is said to have become for his handling of the economy - would nevertheless win by more than a 2-1 ratio - the same margin (63:34) as the final result.

An opinion poll sponsored by the Rockefeller Brothers Fund conducted on May 11 and 20 across Iran by 'Terror Free Tomorrow: The Centre for Public Opinion' and the New America Foundation, showed Ahmadinejad with 34 per cent of the vote and Mousavi with 14 per cent. While releasing the results, the TFT's press statement said, “About seven in ten Iranians think the elections will be free and fair, while only one in ten thinks they will not be free and fair.”

The Western corporate media is shouting from the rooftops that a “fraud on a massive scale” was committed, citing the “head-scratching” results in Mousavi's home province of East Azerbaijan where Ahmadinejad took 57 per cent of the vote, an astonishing improvement over his 2005 total of 10 per cent.

But the TFT pre-election opinion poll reported: “Inside Iran, considerable attention has been given to Mr Mousavi's Azeri background, emphasizing the appeal his Azeri identity may have for Azeri voters. (However), the results of our survey indicate that only 16 per cent of Azeri Iranians indicate they will vote for Mr Mousavi. By contrast, 31 per cent of the Azeris claim they will vote for Mr Ahmadinejad.” In other words, Ahmadinejad was 2-1 ahead even before actual votes were cast.

True to form, the Western corporate media is plumbing new depths reporting Iran. Earlier it was Iran's “nuclear ambitions,” now it is all about “eye-witness accounts” of sham elections, the takeover of party offices, a massacre on a university campus, an imminent coup d'etat, the possible overthrow of the whole 30-year-old Islamic Republic, and the isolation of an entire country as its communications are systematically shut down. Lies are being palmed off as gospel.

Secret memos and “smoking gun” documents are playing their role in fuelling outrage. Before the election, Newsweek quoted “secret Iranian government polls” that showed Mousavi would win 16-18 million votes and the incumbent a third of that.

After the results were out, a widely circulated letter, “written by the minister of the interior to Ayatollah Ali Khamenei”, sought to prove the results were fixed at Khamenei's orders. The letter also provides “real” vote totals that more or less tally with the secret polls Newsweek reported - 19 million for Mousavi and just under 6 million for Ahmadinejad.

But the (London) Independent's Robert Fisk, one of the few Western journalists reporting from Tehran, wondered aloud whether the letter was a fake. “However incredible Mr Ahmadinejad's 63 per cent of the vote may have been, could he really - as a man who has immense support among the poor of Iran - have picked up only 5½ million votes?”

Fisk is not an admirer of either Ahmadinejad or the theocratic regime in Iran. But he is an objective, old-school journalist and has wonderful stories to tell from the past week. “A day earlier, an Iranian woman muttered to me in an office lift (in Tehran) that the first fatality of the street violence was a young student. Was she sure, I asked? Yes, she said. I have seen the photograph of his body. It is terrible. I never saw her again. Nor the photograph. Nor had anyone seen the body. It was a fantasy.

“Earnest reporters check this out – in fact, I have been spending at least a third of my working days in Tehran this past week not reporting what might prove to be true but disproving what is clearly untrue.”

Here’s another beauty: “We had the famous instruction to journalists in Tehran from the Ministry of Islamic Guidance that they could no longer report opposition street demonstrations. I heard nothing of this. Indeed, the first clue came when I refused to be interviewed by CNN (because their coverage of the Middle East is so biased) and the woman calling me asked: Why? Are you worried about your safety? Fisk continued to spend 12 hours a day on the streets. I discovered there was a ban only when I read about it in The Independent. Maybe the Guidance lads and lassies couldn’t get through on my mobile. But then, who had cut the phone lines?”

Fantasy and reality make uneasy bedfellows, but once they are combined and spread with high-speed inaccuracy around the world, they make politically titillating headlines, as Fisk discovered to his dismay.

“Take the call I had five hours before the early-hour phone call, from a radio station in California. Could I describe the street fighting I was witnessing at that moment? Now, it happened that I was standing on the roof of the al-Jazeera office in north Tehran, (the most affluent section of the city) speaking in a late-night live interview with the Qatar television station. I could indeed describe the scene to California. What I could see were teenagers on motorcycles, whooping with delight as they set light to the contents of a litter bin on the corner of the highway.

“Two policemen ran up to them with night-sticks and they raced away on their bikes with shouts of derision. Then the Tehran fire brigade turned up to put out – as one of the firemen later told me with infinite exhaustion – their 79th litter-bin fire of the night. I knew how he felt.

“A report that Basiji militia had taken over one of Mir-Hossein Mousavi's main election campaign office was a classic. Yes, there were uniformed men in the building – belonging to Mousavi's own hired security company.

“Now for the very latest on the fantasy circuit. The cruel 'Iranian' cops aren't Iranian at all. They are members of Lebanon's Hizbollah militia. I've had this one from two reporters, three phone callers (one from Lebanon) and a British politician. I've tried to talk to the cops. They cannot understand Arabic. They don't even look like Arabs, let alone Lebanese.

“The reality is that many of these street thugs have been brought in from Baluch areas and Zobal province, close to the Afghan border. Even more are Iranian Azeris (from Mousavi's home province). Their accents sound as strange to Tehranis as would a Belfast accent to a Cornishman hearing it for the first time.”

Fisk concludes, “I am reminded of Eisenhower's comment to Foster Dulles when he sent him to London to close down Anthony Eden's crazed war in Suez. The secretary of state's job, Eisenhower instructed Dulles, was to say 'Whoah, boy!' Good advice for those who believe in the Twitterers.”

Roger And Out
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