Showing posts with label Middle East/politics. Show all posts
Showing posts with label Middle East/politics. Show all posts

Saturday, July 16, 2011

Manipulation and Purposeful Behaviour!

Back from beach. Some of the e mails I have received while gone along with some of my own readings. More to come in a separate memo over the weekend. have a great weekend yourself.


















So much for hope!
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If Obama gets his way and raises the debt ceiling he will be able to wreck the nation claiming 'fairness,' standing up for the 'little guy' and for 'taxing the rich' to achieve 'rightful redistribution.'

If he is not allowed to raise the debt ceiling he will claim Republicans wrecked the nation through contempt for that same 'little man,' for having a stone heart and because they support 'capitalist greed.'

Turning America into a European socialized styled nation is actually perverse because Obama has consistently railed against European Colonialism so why would he want to turn America into an economic clone of Europe?

Secondly, if Obama is as intellectual as claimed then, why cannot he see what has happened to Ireland, Greece, Spain, Portugal, Italy, even Russia, etc. where economic Socialism has failed? Even Israel, which began totally socialistic, prospered when it began to throw off the yoke of economic statism and embraced their semblance of capitalism.

Perhaps the answer is Obama is steeped in contempt for this nation, its 'unfairness' and questionable history and his mission of change is truly based on all he has been taught by all the radicals with whom he has been associated. In a word, his actions are, as I have alleged, purposeful!





(I have just finisheed Francis Fukuyama's: "The Origins of Political Order" and will discuss in a separate memo.)





If this is obvious then why do a vast number of Americans remain blind? I guess part of the answer is their dependency upon government and their fear they could not survive in a more austere government. A government supposedly caring less for their welfare dependency.

Another reason could be jealousy of their fellow citizens who have more and who, they believe, have achieved their vaulted status because the system is rigged or because they have lied and cheated their way to the top driven by greed. There certainly is plenty of evidence available for disreputable politicians seeking to lay blame beyond the shores of Congress.

Then there is the issue of victim hood that PC'ism guilt has perpetrated upon our society.

Finally, ignorance provides a fertile field for gullibility. Take fear, jealousy and add stupidity and you have a powerful concoction dishonest politicians can manipulate. Castro did it, Chavez is doing it and then we have the Arab/Muslim street, numbering in the billions, buying the hate and distortions spewed by the likes of Arafat, Hezballah, Hamas, Assad etc..

Saul Alinsky knew what he was doing and writing and so does Obama. I defy anyone who believes otherwise. Why? Because the facts point in only one direction and I return to my repeated theme - Obama is willingly engaged in purposeful behaviour and we re-elect him at our Republic's peril!
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Stratfor has published an article pertaining to Chinese companies listed on American Exchanges where accounting is questionable. The Chinese government maintains companies that are owned by China are immune from accounting investigation as well as companies that might not be owned but are engaged in sectors strategically critical to China's security.

Stratfor writes: "The problem faced by Chinese companies, and more broadly the Chinese government, is this: To be listed on U.S. stock exchanges, Chinese companies have to make their financial information public. The companies and their Chinese auditors may be trying to hide behind the threat of state-secrets prosecution in order to hide their own problems. The Ministry of Finance may also be bringing up the importance of "national economic information," as Reuters reported July 6, to deter Chinese companies and auditors from revealing too much." (See 1 below)

I actually own stock in one such company which claims it is co-operating with the SEC and The NYSE to rectify any questionable financial activities and accounting procedures.
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Pat Buchannan is one ticked off guy and with some justification. On the other hand asking for credit from oppressed blacks by claiming you assisted them after their shackles of oppression were removed is a bit disingenuous. (See 2 below.)
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Bolton said it, I just think it. (See 3 below.)
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Facts speak louder than Obama's B.S. Then and now!(See 4 below.)
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And if you want a little Southern humor from our police look at these responses. (See 5 below.) ---
Dennis Prager about sizes it up. (See 6 below.)





Talking about sizing it up I understand two disreputable politicians are opening a bar in Little Italy, New York and are naming their signature concoction the "Weiner Spitzer."
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Jordan rethinks support of a Palestinian state and now seems to want to oppose it in the U.N. Read why. (See 7 below.)
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Government bureaucrats are human and therefore, they react like humans.
The problem is they are ofetn dealing with critical issues and matters of national security.

That is when their human reactions can get dangerous. (See 8 below.)
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Because of a rcent poll regarding Palestinian intentions, their continued intransigence and unwillingness to recognize Israel's right to exist Caroline Glick writes, Israel has basically one option to remain a viable nation - annex Samaria and Judea with all the consequent problems entailed in doing so. (See 9 below.)
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Dick
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1) China Security Memo: Looking into 'Reverse Mergers' on Wall Street

What is a Trade Secret Now?

Members of the U.S. Securities and Exchange Commission and the U.S. Public Company Accounting Oversight Board (PCAOB) went to Beijing for meetings July 11-12 with the Chinese Ministry of Finance and the China Securities Regulatory Commission. The meetings were prompted by a series of accounting scandals that involved Chinese companies being listed on U.S. stock exchanges through "reverse mergers." This is a process in which companies enter an American exchange not by an initial public offering but by acquiring a shell company that is already publicly traded on the exchange.

The United States allows foreign companies to gain access to its markets if approved by foreign auditors, and the PCAOB is responsible for accrediting the foreign auditors. But if the auditors fail to perform due diligence they can allow fraudulent accounting to affect American markets — hence the need for the PCAOB to conduct investigations abroad.

For years the Chinese government has rejected American appeals to investigate 110 Chinese auditing companies on the basis of preserving its sovereignty over China's business practices. The latest scandals have resulted in the U.S. suspension of 24 Chinese-listed companies that had already been reviewed by the approved auditing companies. This has had a significant impact on the markets, so there is renewed market pressure for U.S. authorities to gain access to Chinese books. STRATFOR sources say the most recent round of negotiations was preliminary and that it will be a long time before the two countries agree on a solution, such as raising standards for accreditation or allowing joint U.S.-China inspections on Chinese soil.

Chinese auditors have reportedly denied giving American investigators access to their books, claiming that to do so would be to violate China's state-secrets law. STRATFOR sources believe this reference to the state-secrets law is a smokescreen for firms that do not want to provide transparency or cooperate with American authorities. Therefore, entirely aside from the stock scandals and financial regulatory negotiations, this incident has again brought up the issue of China's state-secrets laws.

The question comes down to whether auditors in China can legally be allowed to give information to U.S. regulators or whether such information can be designated as state secrets. The current state-secrets law, which was updated in 2010, theoretically gives the Chinese government less flexibility in prosecuting such cases, but it does not make it impossible. The reality is that taking action under the new law — trying to prosecute a case — is the only way to assess how the new law will be interpreted.

One criterion for information to qualify as a state secret would have to be whether it is related in any way to state-owned enterprises (SOEs). The rules set in April 2010 by China's State-Owned Assets Supervision and Administration Commission (SASAC), which manages SOEs, and the state secrets law that went into effect in October 2010 provided some clarity on this issue. Any commercial information from "central enterprises," which are identified as 120 companies overseen by the SASAC, could be considered a state secret. None of the Chinese companies that have been publically identified so far in the recent accounting scandals is an SOE, so information on these companies is not clearly defined as state secrets. But if any of the companies being audited has major business dealings with SOEs, or if SOEs are stakeholders in these companies, such information could be so defined.

Another criterion would be whether the information is related to any "strategic sectors" defined by Beijing or whether it would be in the interest of national security. This is the part of the law that gives Beijing flexibility, and any information relevant to the U.S. investigation could be considered a state secret. An example of this would be the prosecution of Xue Feng, who collected public information on oil reserves, which relate to an industry classified as a strategic sector. This also ignores the whole concept of commercial secrets, which could more clearly be applied to the companies in question. While not as serious as a state secrets prosecution, commercial secrets are also protected under Chinese law, a charge Stern Hu also faced, but was not convicted of, in the 2009 Rio Tinto scandal.

The redefinition of SASAC rules and the new state-secrets law came after Hu's case, in which he was originally accused but not prosecuted for violating the previous law. The new law broadened the potential classification for information related to state-owned companies but not private ones. If what Chinese authorities consider important auditing information is exposed during the U.S. investigation, they may use the same tactics they used in the Hu case. Chinese authorities have created a culture of fear around the issue, making it difficult to move forward with proper due diligence for fear of prosecution.

The problem faced by Chinese companies, and more broadly the Chinese government, is this: To be listed on U.S. stock exchanges, Chinese companies have to make their financial information public. The companies and their Chinese auditors may be trying to hide behind the threat of state-secrets prosecution in order to hide their own problems. The Ministry of Finance may also be bringing up the importance of "national economic information," as Reuters reported July 6, to deter Chinese companies and auditors from revealing too much.

In the end, Beijing may decide that the release of information by the Chinese companies being investigated could reveal state secrets and threaten national security. However it chooses to handle the situation will be telling. If the Chinese government prosecutes auditors for handing over their books, the message will be clear: China's state-secrets law is incompatible with American expectations regarding foreign access to U.S. equity markets. If no auditors hand over their books, it will reinforce the assumption that they are using their fears to hide fraudulent accounting.
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2)SILENT!!!! NOT ANY MORE -- BUCHANAN TO OBAMA













This appears accurate. Blacks are 12.9% of our population, but comprise about 40% of the federal work force whose average salary is $78,000 per year as compared to the general population's annual salary of about $42,000 per year. It is odd that no one writes about this great disparity.

And then:

BUCHANAN TO OBAMA
By Patrick J. Buchanan

Barack says we need to have a conversation about race in America .. Fair enough. But this time, it has to be a two-way conversation.. White America needs to be heard from, not just lectured to.... This time, the Silent Majority needs to have its convictions, grievances and demands heard. And among them are these:

First, America has been the best country on earth for black folks. It was here that 600,000 black people, brought from Africa in slave ships, grew into a community of 40million, were introduced to Christian salvation, and reached the greatest levels of freedom and prosperity blacks have ever known.. Wright ought to go down on his knees and thank God he is an American.

Second, no people anywhere has done more to lift up blacks than white Americans. Untold trillions have been spent since the ' 60s on welfare, food stamps, rent supplements, Section 8 housing, Pell grants, student loans, legal services, Medicaid, Earned Income Tax Credits and poverty programs designed to bring the African-American community into the mainstream. Governments, businesses and colleges have engaged in discrimination against white folks -- with affirmative action, contract set-asides and quotas -- to advance black applicants over white applicants.Churches, foundations, civic groups, schools and individuals all over America have donated their time and money to support soup kitchens, adult education, day care, retirement and nursing homes for blacks.
We hear the grievances. Where is the gratitude??

Barack talks about new 'ladders of opportunity' for blacks. Let him go to Altoona ? And Johnstown , and ask the white kids in Catholic schools how many were visited lately by Ivy League recruiters handing out scholarships for 'deserving' white kids...? Is white America really responsible for the fact that the crime and incarceration rates for African-Americans are seven times those of white America ? Is it really white America 's fault that illegitimacy in the African-American community has hit 70 percent and the black dropout rate from high schools in some cities has reached 50 percent?

Is that the fault of white America or, first and foremost, a failure of the black community itself?

As for racism, its ugliest manifestation is in interracial crime, and especially interracial crimes of violence. Is Barack Obama aware that while white criminals choose black victims 3 percent of the time, black criminals choose white victims 45 percent of the time?

Is Barack aware that black-on-white rapes are 100 times more common than the reverse, that black-on-white robberies were 139 times as common in the first three years of this decade as the reverse?

We have all heard ad nauseam from the Rev. Al about Taiwan Brawly, the Duke rape case and Jena .. And all turned out to be hoaxes. But about the epidemic of black assaults on whites that are real, we hear nothing.

Sorry, Barack, some of us have heard it all before, about 40 years and 40 trillion tax dollars ago
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3)Fmr. U.N. Ambassador Bolton: Obama is “the Most Anti-Israel President in the History of the State, Without Any Question”

Former U.S. Ambassador to the United Nations, American Enterprise Institute Fellow and possible Republican presidential aspirant, John Bolton, has said during a visit to Israel that Barack Obama is “the most anti-Israel president in the history of the State, without any question.” In an interview with the Jerusalem Post, Mr. Bolton emphasized that the tensions that have beset the U.S./Israel relationship are not the result of misunderstanding, saying, “If you think that this is just a misunderstanding of where the green crayon went in 1949, then think again.” Mr. Bolton said that President Obama bought in to what he said was the “European line,” namely, that if you make progress between Israel and the Palestinians “sweetness and light” will break out in the region, and every other problem from Iran to terrorism will be easier to solve. “I think that is like looking through the wrong end of the telescope.”

Mr. Bolton also criticized President Obama’s policy towards Iran, saying that he believed the Obama administration’s “real Plan B for the Iranian nuclear weapons program is that it can be contained and deterred, much as we contained and deterred the Soviet Union in the Cold War. I think that is fundamentally wrong.” Mr. Bolton stated that in his view, the only way to stop Iran from getting nuclear weapons was through military action and that “Diplomacy and sanctions are not going to work. The Obama administration certainly isn’t going to use force against the Iranian program, and Israel is obviously very reluctant to do it as well … If Israel is not prepared to strike, then get ready for an Iran with nuclear weapons, and you can draw your own conclusions. If you think Iran’s behavior is bad now, imagine what it will be if it gets nuclear capability. I think we are all sleepwalking past this … If I had been in charge of the Israeli government, I would have attacked in 2008 for several reasons. First, it was three years ago, so you are much more likely to have eliminated the key elements of Iran’s nuclear weapons program … [Secondly] in 2008 you had a president sympathetic to Israel – so you calculate the next time that is going to occur.”

Mr. Bolton also argued that the Palestinian Authority’s bid for recognition of Palestinian statehood at the U.N. should not – as it is in Israel and elsewhere – be getting more attention and energy than the Iranian nuclear threat. Israel’s proper response to the move, he said, is “not to pay any attention to it, and to care no more about it than the grass you tread beneath your feet … if you make the General Assembly into something more than what it is, than you are giving it authority and legitimacy it doesn’t have.” Mr. Bolton said that the only way to get this move stopped in the UN was for the U.S. Congress to pass legislation saying that if the move did go through, Washington would cut off funding to the international body, as the U.S. successfully threatened in 1989 when the UN was moving towards accepting the PLO as a full U.N. member (Herb Keinon, ‘Bolton: Obama worst president for Israel – ever,’ Jerusalem Post, July 13, 2011).

ZOA National President Morton A. Klein said, “Mr. Bolton’s assessment of President Obama and his policy towards Israel is one with which we agree and which, indeed, we have long suspected to be true. In fact, immediately following President Obama’s June 2009 Cairo speech, we predicted in a press release that President Obama “may become most hostile president to Israel ever.” We also published an opinion piece in the Jerusalem Post in January 2009 and other publications regarding ‘Hillary Clinton's troubling transformation on Israel,’ detailing several of the swings towards pro-Palestinian positions and ignoring of Palestinian incitement to hatred and murder under President Obama. Clearly, there is a range of issues relating to Israel in which President Obama’s policy is of deep concern to the pro-Israel community.”
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4)“The fact that we are here today to debate raising America ’s debt limit is a sign of leadership failure. It is a sign that the US Government can not pay its own bills. It is a sign that we now depend on ongoing financial assistance from foreign countries to finance our Government’s reckless fiscal policies. Increasing America ’s debt weakens us domestically and internationally. Leadership means that ‘the buck stops here.' Instead, Washington is shifting the burden of bad choices today onto the backs of our children and grandchildren. America has a debt problem and a failure of leadership. Americans deserve better.”

-- Senator Barack H. Obama, March 2006


When you compare the increases in the national debt for Clinton through the Obama presidencies, here is what you will see as per the Government's own figures:

Clinton JAN 1993 4.2 trillion to JAN 2001 5.7 trillion or 1.5 in 8 years or 187 billion per year

G. Bush JAN 2001 5.7 trillion to JAN 2009 10.6 trillion or 4.9 in 8 years or 613 billion per year

obama JAN 2009 10.6 trillion to JAN 2011 14.0 trillion or 3.4 in just 2 years or 1.7 trillion per year

Obama has been averaging almost 3 times the annual debt level rate increase than President Bush and the Democrats want us to believe that their increases in the debt are just as bad as those of the previous Republican administration. You do not have to be a mathematician to see the true story and why we need to start cutting the spending and pass a balance budget amendment.
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5)Southerners have a way with words!

These are actual comments made by South Carolina Troopers that were taken off their car videos:


1. "You know, stop lights don't come any redder than the one you just went through."

2. "Relax, the handcuffs are tight because they're new. They'll stretch after you wear them a while."

3. "If you take your hands off the car, I'll make your birth certificate a worthless document."

4. "If you run, you'll only go to jail tired."

5. "Can you run faster than 1200 feet per second? Because that's the speed of the bullet that'll be chasing you."

6. "You don't know how fast you were going? I guess that means I can write anything I want to on the ticket, huh?"

7. "Yes, sir, you can talk to the shift supervisor, but I don't think it will help. Oh, did I mention that I'm the shift supervisor?"

8. "Warning! You want a warning? O.K, I'm warning you not to do that again or I'll give you another ticket."

9. "The answer to this last question will determine whether you are drunk or not. Was Mickey Mouse a cat or a dog?"

10. "Fair? You want me to be fair? Listen, fair is a place where you go to ride on rides, eat cotton candy and corn dogs and step in monkey poop."

11. "Yeah, we have a quota. Two more tickets and my wife gets a toaster oven."

12. "In God we trust; all others we run through NCIC." ( National Crime Information Center )

13. "Just how big were those 'two beers' you say you had?"

14. "No sir, we don't have quotas anymore. We used to, but now we're allowed to write as many tickets as we can."

15. "I'm glad to hear that the Chief (of Police) is a personal friend of yours. So you know someone who can post your bail."

16. "You didn't think we give pretty women tickets? You're right, we don't. Sign here."
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6) Big Government, Small People
By Dennis Prager


While liberals are certain about the moral superiority of liberal policies, the truth is that those policies actually diminish a society’s moral character. Many individual liberals are fine people, but the policies they advocate tend to make a people worse. Here are ten reasons:

1. The bigger the government, the less the citizens do for one another. If the state will take care of me and my neighbors, why should I? This is why Western Europeans, people who have lived in welfare states far longer than Americans have, give less to charity and volunteer less time to others than do Americans of the same socioeconomic status.

The greatest description of American civilization was written in the 19th century by the Frenchman Alexis de Tocqueville. One of the differences distinguishing Americans from Europeans that he most marveled at was how much Americans — through myriad associations — took care of one another. Until Pres. Franklin D. Roosevelt began the seemingly inexorable movement of America toward the European welfare state — vastly expanded later by other Democratic presidents — Americans took responsibility for one another and for themselves far more than they do today. Churches, Rotary Clubs, free-loan societies, and other voluntary associations were ubiquitous. As the state grew, however, all these associations declined. In Western Europe, they have virtually all disappeared.

2. The welfare state, though often well intended, is nevertheless a Ponzi scheme. Conservatives have known this for generations. But now any honest person must acknowledge it. The welfare state is predicated on collecting money from today’s workers in order to pay for those who paid in before them. Unfortunately, today’s workers don’t have enough money to sustain the scheme, because there are too few of them to do so. As a result, virtually every welfare state in Europe, along with many American states, like California, is going broke.

3. Citizens of liberal welfare states become increasingly narcissistic. The great preoccupations of vast numbers of Brits, Frenchmen, Germans, and other Western Europeans are how much vacation time they will have and how early they can retire and be supported by the state.

4. The liberal welfare state makes people disdain work. Americans work considerably harder than Western Europeans, and, contrary to liberal thought since Marx, work builds character.

5. Nothing more guarantees the erosion of character than getting something for nothing. In the liberal welfare state, one develops an entitlement mentality — another expression of narcissism. And the rhetoric of liberalism — labeling each new entitlement a “right” — reinforces this sense of entitlement.

6. The bigger the government, the more the corruption. As the famous truism goes, “Power tends to corrupt, and absolute power corrupts absolutely.” Of course, big businesses are also often corrupt. But they are eventually caught or go out of business. The government cannot go out of business. And, unlike corrupt governments, corrupt businesses cannot print money and thereby devalue a nation’s currency, and they cannot arrest you.

7. The welfare state corrupts family life. Even many Democrats have acknowledged the destructive consequences of the welfare state on the underclass. It has rendered vast numbers of males unnecessary to females, who have looked to the state to support them and their children (and the more children, the more state support) rather than to husbands. In effect, these women took the state as their husband.

8. The welfare state inhibits the maturation of its young citizens into responsible adults. As regards men specifically, I was raised, as were all generations of American men before me, to aspire to work hard in order to marry and to support a wife and children. No more. One of the reasons many single women lament the prevalence of boy-men — men who have not grown up — is that the liberal state has told men they don’t have to support anybody. They are free to remain boys for as long as they want.

And here is an example regarding both sexes. The loudest and most sustained applause I ever heard was that of college students responding to a speech by Pres. Barack Obama informing them that they would now be covered by their parents’ health-insurance policies until age 26.

9. As a result of the Left’s sympathetic views of pacifism, and because almost no welfare state can afford a strong military, European countries rely on America to fight the world’s evils and even to defend them.

10. The leftist weltanschauung sees society’s and the world’s great battle as between rich and poor rather than between good and evil. Equality therefore trumps morality. This is what produces the morally confused liberal elites that can venerate a Cuban tyranny with its egalitarian society over a free and decent America that has greater inequality.

None of this matters to progressives. Against all this destructiveness, they will respond not with arguments to refute these consequences of the liberal welfare state, but by citing the terms “social justice” and “compassion,” and by labeling their opponents “selfish” and worse.

If you want to feel good, liberalism is awesome. If you want to do good, it is largely awful.
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7)Jordan on verge of survival showdown?
By ALEXANDER BLIGH

Jordan’s prime minister revealed that his country would vote against Palestinian statehood at the UN General Assembly in September.

Jordan has been relatively quiet since the outbreak of popular unrest engulfing many Arab and North African countries.

However, two recent developments perhaps indicate that the kingdom is far from complacent.

Last Saturday, King Abdullah declared a reshuffle in the cabinet not five months after it was sworn in – clearly in response to demonstrations protesting alleged government corruption. Earlier that week, the Dubai-based daily Al-Bayan published a leaked report that Jordan’s prime minister revealed his country would vote against Palestinian statehood at the UN General Assembly in September – thus breaking Arab consensus.

Unsurprisingly Jordan is facing two major challenges. On the one hand, there are mounting domestic pressures, especially from the Beduin South, the backbone of the regime for over 90 years. So far, the king has been following in the footsteps of his late father, King Hussein, and has demonstrated no less than brilliance in balancing all domestic players.

On the other hand, Jordan is nearing a crossroads in its attitude toward the Palestinians. In my book, The Political Legacy of King Hussein (2004), I analyze the advantages that Hussein could have found in losing the West Bank to Israel.

First and foremost, Israel would be in charge of resolving the Palestinian issue, and the Palestinians would not be in a position to claim Jordan as a Palestinian state.

In recent months, Israel seems to have divorced itself from its traditional policy of resisting a Palestinian state at all costs.

In the Jordanian mind, this translates to a position that might endanger the very existence of the Hashemite Kingdom, as well as the 1994 Israeli-Jordanian Peace Treaty, and a de-facto abandonment of the traditional friendship between the two countries that has survived many crisis since 1960.

Jordan has tried (and usually succeeded) in letting Israel lead the way against the creation of a Palestinian state. However, Israel is now seen as being too weak to halt a Palestinian independence process. The creation of such a state would put Jordan’s very existence in jeopardy: The PLO is formally and spiritually committed to taking over all of mandatory Palestine – i.e., Jordan, the territories and Israel.Considering Israel would hold its ground within the 1967 lines, the next target of a small, economically weak, irredentist Palestinian state would be Jordan –a country that has already served as a battleground for the PLO in 1970-71.

If, indeed, this is the current Jordanian reading, it follows that the US and Israel are seen as weak players that cannot be trusted to support the kingdom.

Furthermore, if Jordan is to take to arms – diplomatic in this case – it has quite a strong weapon: Declaring a Palestinian state with Jerusalem as its capital constitutes a flagrant violation of the internationally recognized Israeli-Jordanian Peace Treaty. That instrument states (Article 9): “When negotiations on the permanent status will take place, Israel will give high priority to the Jordanian historic role in these shrines [Muslim holy shrines in Jerusalem].” A Palestinian unilateral declaration of a state – let alone one that claimed Jerusalem as part of that state – cannot, at least in the Jordanian mind, be approved by any country, since it negates a basic element of the peace agreement and directly harms the interests of the Hashemite family, descendants of the Prophet Muhammad, in the Holy City.

All in all, a stable and strong ally of the US, led by a courageous ruler, would be directly threatened by a Palestinian state, and is apparently on the verge of openly fighting for its own survival.
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8)America's Intelligence Denial on Iran
CIA censors prevented me from naming the outside reviewers who rubber stamp agency estimates.
By FRED FLEITZ

Mounting evidence over the last few years has convinced most experts that Iran has an active program to develop and construct nuclear weapons. Amazingly, however, these experts do not include the leaders of the U.S. intelligence community. They are unwilling to conduct a proper assessment of the Iranian nuclear issue—and so they remain at variance with the Obama White House, U.S. allies, and even the United Nations.

The last month alone has brought several alarming developments concerning Tehran's nuclear program. International Atomic Energy Agency (IAEA) chief Yukiya Amano said last month that his agency has new information pointing to the military ambitions of Iran's nuclear program. As of today, Iran has over 4,000 kilograms of low-enriched uranium—enough, according to the Wisconsin Project on Nuclear Arms Control, for four nuclear weapons if enriched to weapons grade.

Iran has accelerated its production of low-enriched uranium in defiance of U.N. and IAEA resolutions. It has also announced plans to install advanced centrifuge machines in a facility built deep inside a mountain near the city of Qom. According to several U.S. diplomats and experts, the facility is too small to be part of a peaceful nuclear program and appears specially constructed to enrich uranium to weapons grade.

To top this off, an item recently posted to the Iranian Revolutionary Guard Corps website mused about the day after an Iranian nuclear test (saying, in a kind of taunt, that it would be a "normal day"). That message marked the first time any official Iranian comment suggested the country's nuclear program is not entirely peaceful.

Despite all this, U.S. intelligence officials are standing by their assessment, first made in 2007, that Iran halted its nuclear weapons program in 2003 and has not restarted it since.

In February, the 17 agencies of the U.S. intelligence community issued a highly classified National Intelligence Estimate updating their 2007 assessment. That estimate had been politicized by several officials who feared how President George W. Bush might respond to a true account of the Iranian threat. It also was affected by the wave of risk aversion that has afflicted U.S. intelligence analysis since the 2003 Iraq War. Intelligence managers since then have discouraged provocative analytic conclusions, and any analysis that could be used to justify military action against rogue states like Iran.

I read the February 2011 Iran NIE while on the staff of the House Intelligence Committee. I believe it was poorly written and little improvement over the 2007 version. However, during a pre-publication classification review of this op-ed, the CIA and the Office of the Director of Intelligence censored my criticisms of this analysis, including my serious concern that it manipulated intelligence evidence. The House Intelligence Committee is aware of my concerns and I hope it will pursue them.

Censors also tried to prevent me from discussing my most serious objection to the 2011 Iran NIE: its skewed set of outside reviewers. The U.S. intelligence community regularly employs reviewers who tend to endorse anything they review: former senior intelligence officers, liberal professors and scholars from liberal think tanks. These reviewers tend to share the views of senior intelligence analysts, and they also want to maintain their intelligence contacts and high-level security clearances.

I believe that senior intelligence officials tried to block me from naming the NIE's outside reviewers because the names so strongly suggest that intelligence agencies took no chances of an outside reviewer unraveling the document's poorly structured arguments and cavalier manipulation of intelligence.

I have been permitted to say the following about the outside reviewers: Two of the four are former CIA analysts who work for the same liberal Washington, D.C., think tank. Neither served under cover, and their former CIA employment is well known. Another reviewer is a liberal university professor and strong critic of George W. Bush's foreign policy. The fourth is a former senior intelligence official. Not surprisingly, the 2011 NIE included short laudatory excerpts from these reviewers that offered only very mild criticism.

It is unacceptable that Iran is on the brink of testing a nuclear weapon while our intelligence analysts continue to deny that an Iranian nuclear weapons program exists. One can't underestimate the dangers posed to our country by a U.S. intelligence community that is unable to provide timely and objective analysis of such major threats to U.S. national security—or to make appropriate adjustments when it is proven wrong.

If U.S. intelligence agencies cannot or will not get this one right, what else are they missing?

Mr. Fleitz retired this year after a 25-year career at the CIA, DIA, State Department and House Intelligence Committee staff. He now writes for Newsmax.com. This op-ed was amended to obtain classification clearance from the CIA and the Office of the Director of National Intelligence.
------------------------------------------------------------------------------------------------- 9)Israel’s only two options
By CAROLINE B. GLICK



The Jewish state’s choices are to either annex Judea and Samaria or be destroyed by its neighbors.

Fatah leader Mahmoud Abbas is in Europe this week seeking to convince the Spanish and Norwegian governments to support the Palestinian bid to sidestep negotiations with Israel and have the UN General Assembly recognize Palestinian sovereignty over Judea, Samaria and Jerusalem in addition to Gaza.

The Palestinians know that without US support, their initiative will fail to gain Security Council support and therefore have no legal weight. But they believe that if they push hard enough, Israel’s control over these areas will eventually unravel and they will gain control over them without ever accepting Israel’s right to exist.

Fatah’s UN gambit, along with its unity deal with Hamas, makes clear that the time has come for Israel to finally face the facts: There are only two realistic options for dealing with Judea and Samaria.

Either the Palestinians will take control of Judea and Samaria, or Israel will annex them.

If the Palestinians take control, they will establish a terror state in the areas, which – like their terror state in Gaza – will use its territory as a starting point for continued war against Israel.

It isn’t only Israel’s experience with post-withdrawal Gaza and South Lebanon that make it clear that a post-withdrawal Palestinian-controlled Judea and Samaria will become a terror state. The Palestinians themselves make no bones about this.

In a Palestinian public opinion survey released last week by The Israel Project, 65 percent of Palestinians said they believe that they should conduct negotiations with Israel. But before we get excited, we need to read the fine print.

According to the survey, those two-thirds of Palestinians believe that talks should not lead to the establishment of the State of Palestine next to Israel and at peace with the Jewish state. They believe the establishment of “Palestine” next to Israel should serve as a means for continuing their war against Israel. The goal of that war is to destroy what’s left of Israel after the “peace” treaty and gobble it into “Palestine.”

That is, 66% of Palestinians believe “peace” talks with Israel should be conducted in bad faith.

Moreover, three-quarters deny Jewish ties to Jerusalem, and 80% support Islamic jihad against Jews as called for in the Hamas charter; 73% support the annihilation of the Jewish people as called for in the Hamas charter on the basis of Islamic scripture.

As bad as Israel’s experience with post-withdrawal Gaza and South Lebanon has been, Israel’s prospects with a post-withdrawal Judea and Samaria will be far worse. It isn’t simply that withdrawal will invite aggression from Judea and Samaria. It will invite foreign Arab armies to invade the rump Jewish state.

Unlike the post-withdrawal situation with Gaza and South Lebanon, without Judea and Samaria, Israel would not have the territorial depth and topographical advantage to defend itself from invasion from the east.

Moreover, the establishment of the second Palestinian terror state after Gaza in Judea and Samaria would embolden some of Israel’s Arab citizens in the Galilee and the Negev as well as in Jaffa, Lod, Haifa and beyond to escalate their already declared irredentist plans to demand autonomy or unification with whatever Palestinian terror state they choose.

Living under the constant threat of invasion from the east (and the south, from a Muslim Brotherhood-controlled Egyptian army moving through the Sinai and Gaza), Israel would likely be deterred from taking concerted action against its treacherous Arab citizens.

As then-prime minister Ariel Sharon warned in 2001, the situation would be analogous to the plight of Czechoslovakia in the 1930s. Just as the Nazis deterred the Czech government from acting against its traitorous German minority in the Sudetenland in the 1930s, so Arab states (and a nuclear Iran), supporting the Palestinian terror states in Judea and Samaria and in Gaza, would make it impossible for Israel to enforce its sovereign rights on its remaining territory.

Israel’s destruction would be all but preordained.

The second option is for Israel to annex Judea and Samaria, complete with its hostile Arab population.

Absorbing the Arab population of Judea and Samaria would increase Israel’s Arab minority from 20% to 33% of the overall population. This is true whether or not Israel grants them full citizenship with voting rights or permanent residency without them.

Obviously such a scenario would present Israel with new and complex legal, social and law enforcement challenges. But it would also provide Israel with substantial advantages and opportunities.

Israel would have to consider its electoral laws and weigh the prospect of moving from a proportional representation system to a direct, district system. It would have to begin enforcing its laws toward its Arab citizens in a manner identical to the way it enforces its laws against its Jewish citizens. This includes everything from administrative laws concerning building to criminal statutes related to treason. It would have to ensure that Arab schoolchildren are no longer indoctrinated to hate Jews, despite the fact that according to the Israel Project survey, 53% of Palestinians support such anti-Semitic indoctrination in the classroom.

These steps would be difficult to enact.

On the other side, annexing Judea and Samaria holds unmistakable advantages for Israel. For instance, Israel would regain complete military control over the areas. Israel ceded much of this control to the PLO in 1996.

The Palestinian armies Israel agreed to allow the PLO to field have played a central role in the Palestinian terror machine. They have also played a key role in indoctrinating Palestinian society to seek and work toward Israel’s destruction. By bringing about the disbanding of these terror forces, Israel would go a long way toward securing its citizens from attack.

Furthermore, by asserting its sovereign rights to its heartland, for the first time since 1967, Israel would be adopting an unambiguous position around which its citizens and supporters could rally. Annexation would also finally free Israel’s politicians and diplomats to tell the truth about the pathological nature of Palestinian nationalism and about the rank hypocrisy and anti-Semitism at the heart of much of the international Left’s campaigns on behalf of the Palestinians.

No, annexation won’t be easy. But then again, the alternative is national suicide.

And again, these are the only options. Either the Palestinians form a terror state from which it will wage war against the shrunken, indefensible Jewish state, or Israel expands the size of the Jewish state.

Since 1967, Israel has refused to accept the fact that these are the only two options available. Instead, successive governments and the nation as a whole have set their hopes on imaginary third options. For the Left, this option has been the fantasy of a two-state solution. This “solution” involves the Palestinians controlling some or all of the lands Israel took over from Jordan and Egypt in the Six Day War, establishing a state, and all of us living happily ever after.

Given the Palestinians’ overwhelming, consistent and violent support for the destruction of Israel in any size, this leftist fantasy never had a leg to stand on.

And since 1993, when the Rabin government adopted the Left’s fantasy as state policy, more than 2,000 Israelis have been killed in its pursuit.

Not only has the Left’s third option fantasy facilitated the Palestinian terror machine’s ability to kill Jews, it has empowered their propaganda war against Israel.

Israel’s pursuit of the nonexistent two-state solution has eroded its own international position to a degree unprecedented in its history.

Last week’s meeting of the so-called Middle East Quartet ended without a final statement. It isn’t that its members couldn’t agree on the need to establish “Palestine” in Judea and Samaria and Jerusalem. That was a no-brainer. The Quartet members couldn’t agree on the need to accept the Jewish state. Russia reportedly rejected wording that would have enjoined the Palestinians to accept the Jewish state’s right to exist as part of a peace treaty.

And this was eminently foreseeable. The unhinged two-state solution makes Israel’s legitimacy contingent on the establishment of a Palestinian state. And it put the burden to establish a Palestinian state on Israel.

Since everyone except Israel and the US always accepted the establishment of a Palestinian state, and no one except Israel and the US always accepted the existence of the Jewish state, by making its own legitimacy dependent on Palestinian statehood, Israel started the clock running on its own demonization.

The longer Israel allows its very right to exist to be contingent on the establishment of another terror state committed to its destruction, the less the nations of the world will feel obliged to accept its right to exist.

As for the Right, its leaders have embraced imaginary third options of their own. Either Jordan would come in and save us, or the Palestinians would come to like us, or something.

The one thing that both the Left’s fantasy option and the Right’s fantasy option share is their belief that the Palestinians or the Arabs as a whole will eventually change. Both sides’ imaginary third options maintain that with sufficient inducements or time, the Arabs will change their behavior and drop their goal of destroying Israel.

Our 44-year dalliance in fantasyland has not simply weakened us militarily and diplomatically. It has torn us apart internally by surrendering the debate to the two ideological fringes of the political spectrum. Actually, to be precise, we have surrendered 99% of our public discourse to the radical Left and 1% to the radical Right.

The Left’s control over the discourse has caused its ideological opposite’s numbers to increasingly disengage from the state. That would be bad enough, but the Palestinians’ inarguable bad faith and continued commitment to Israel’s destruction have driven the far Left far off the cliff of reason and rationality.

Unable to convince their fellow Israelis that their two-state pipe dream will bring peace, the Israeli Left has joined forces with the international Left in its increasingly shrill campaigns to delegitimize the country’s right to exist and undermine its ability to defend itself.

This sorry state of affairs is exemplified today by the radical Left’s hysterical response to the Knesset’s passage last week of the anti-boycott law. The comparatively mild law makes it a civil offense to solicit boycotts against Israel. It bars people engaged in economic warfare against Israel from getting government benefits and makes them liable to punitive damages in civil suits.

The Left’s hysterical public relations campaign to demonize the law and its supporters as fascists and seek its overthrow through the Supreme Court makes clear that the Left will wage war against its own country in pursuit of its delusion.

But aside from driving the public discourse into the depths of ideological madness, Israel’s embrace of fantasy has made it impossible for us to conduct a sober-minded discussion of our only real options. The time has come to debate these two options, choose one, and move forward
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Friday, July 15, 2011

Sun Block vs Media Block and Sole not Soul Goal!

Subj: White House bias against Fox??

The first move of all dictators is to muzzle the media where and if possible. Why did it take eighteen months for the Obama administration to respond to the request under the Freedom of Information Act which revealed what was already obvious - Obama' s thin skin cannot take criticism and negative exposure. Instead of sunblock he resorts to media block.

Again we see the Obama at his pissyfanny best.

http://video.foxnews.com/v/1054669964001/white-house-excluded-fox-news-from-interviews
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A rational explanation of the debt ceiling matter from a Tea Party member. (See 1 below.)
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Krauthammer writes: Call Obama's bluff rather than execute a short term solution which is good for the soul but poor strategy. To get the economy under control Republicans must win the presidency and to do that they need to keep their eye on that 'sole not soul' goal. (See 3 below.)

Strassel presents a different view. It is the Mitch McConnell view that Republicans should allow Obama the privilege of owning the economy and raising the debt limit. (See 3a below.)

Obama is clever and, as president, controls the bully pulpit. With an assist from a biased media and press, Obama has been able to maneuver Republicans into the Tea Party corner of adhering to their pledge to end profligate government, to which all politicians have historically made their contribution.

Obama has been able to frighten a gullible and ignorant public with threats of withholding Social Security, etc. and they have, seemingly, bought the argument.

My own view is, and has always been, demonstrate some principle, stick to your spoken word and though it may cost Republicans in the short run in the long run they and the nation will be better for it. Thus, I repeat what I have said - force Obama to stick to his word, ie. spend the nation into a steep financial hole, as he threatens, and then allow him to dig himself out if he can.

Unbridled spending must stop and now is as good a time to begin as any!
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Mort Zuckerman seems to agree and suggests the solution is to embrace austerity. Whether we embrace it or not it is coming our way. (See 4 below.)
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Have a great weekend - off to the beach and lots of sun block!
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Dick
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1)Making Sense of the Debt Ceiling

Dear Fellow Citizens and Taxpayers,

The federal debt ceiling is front and center and the media is doing it's usual poor job of explaining what's going on.


The very short version is that the House Republicans are demanding that any increase in the debt ceiling be matched with spending cuts. Obama is participating in negotiations, but is actually pushing for a plan that is farther to the left than the one released by his own fiscal commission.

So far, John Boehner and the House Republicans are standing firm, but Obama is busily threatening to withhold Social Security checks and sending Tim Geithner out to lie about the risk of default (more on that in a moment). As a result of the Democratic lies, Minority Leader Mitch McConnell is going wobbly. He is worried about the political ramifications of the fight and has proposed allowing the President to raise the debt ceiling unilaterally in order to push the political risk back in Obama's direction.


Below is an essay by our Clermont County leader Ted Stevenot that explains the situation with the debt ceiling in more detail. I want to highlight one point.

There is absolutely no reason why the US Treasury should default on our debt or withhold Social Security checks. If they do so, it is solely due to a decision by the Obama administration.

Each month, there is sufficient government revenue to pay for interest on the debt, social security, medicare, medicaid, necessary defense spending, and veterans benefits. Default is a choice, not a reality. Obama does not want to prioritize government expenditures. Obama wants to use the debt ceiling as leverage to lock in tax increases and bigger government.

Mike Wilson ,President

Cincinnati Tea Party


The Debt Ceiling and How to Take Back America
By Ted Stevenot, Clermont County Tea Party


I think we have an opportunity to make a significant difference in turning around America's fiscal outlook via the current debt ceiling debate. But, before explaining this idea fully, let's consider a brief analogy.

Imagine a two income couple blissfully, but unenviably, traveling through life while spending all the money they make. One spouse makes about 60% of the household income, the other the remaining 40%. One day, the spouse making 40% of the income, comes home and says, "Bad news today dear. I lost my job!"

Meeting at the kitchen table that night, the couple sits down to prioritize how to survive on the money they have left. Quickly, they must determine which expenses are essential and which are not.

Together, they consider expenditures such as;

Season tickets or the mortgage?
Cable TV or the electric bill?
Family vacation or the car payment?
Eating out or buying groceries?

At the end of the discussion, the couple will hopefully have determined their priorities. They can now put in place a plan to carry their family forward until the unemployed spouse is either able to find new work or achieve some other remedy.

The Debt Ceiling Debate

With the above portrait of "everyday" prioritizing in mind, let's consider the debt ceiling and appropriation debate currently raging in DC.

As long as spending is prioritized properly, there will be no risk of default or of seniors going without Social Security checks. But, if the figurative couple "goes on vacation" and "buys the season tickets," they could end up losing their house. There is roughly $50 billion leftover for the month even after critical expenditures have been fully met.


Saving the Country by Controlling Spending

It is a very good thing that James Madison and the founders thought to separate the powers of our government in the Constitution. As a result of this, the President today needs two favors from Congress to keep moving forward with his statist agenda - namely, (1) higher taxes and (2) a higher debt ceiling. Yet, he puts a new twist on "audacity of hope," by demanding he be given one favor in order to get another. He says in effect, "You must first wash my car before being allowed to mow my lawn."

The President is in this position because, in these circumstances, and by Constitutional design, the Speaker of the House holds all the cards. The Speaker has the "gavel." As such, he (or she) controls the schedule for what gets voted on and who gets to speak. Without the Speaker's direct consent, nothing can get through the Congress. No debt increases, no appropriations, no new taxes, no new legislation, no nothing. Ultimately, the President can only accept or reject what has first been permitted through the Speaker's hands.

So, Here Is the Basic Plan...

The Republicans can write an appropriation bill that directly stipulates spending to service the current debt, Social Security, Medicare and Essential Defense. No new debt. No new taxes. After that, they can prioritize what to do with the remaining cash receivables such as funding federal law enforcement, border patrol, VA benefits, etc.

Pass this bill in the House and send it to the Senate. It will then be the Senate's turn to decide whether to pay for "season tickets or the mortgage." The burden will be on them to pass the bill that will head off any impending doom. Once the Senate "eats their peas," the bill can be served up to the President where he can, subsequently, eat his.

Redistributing the Haircuts

As alluded above, the Speaker of the House is in the driver's seat on any new legislation and the nation's purse. Let the progressives whine about how disastrous it will be when entities like the Department of Education, NPR, the NEA, ACORN, the IMF, PBS and over half of the EPA's budget do not rate high enough to be funded. It's tough love. All agencies of government will have to hold "kitchen table meetings" of their own. Bring on the thousand legislative and spending cuts we were promised during the 2010 midterm elections. Defund Obamacare. The leverage is there and the people will support a sincere effort to restore fiscal sanity.

Key fact: As of this session of Congress - and many thanks to Tea Party folks like you - there are fewer Democrats in the House of Representatives then at any time since 1937.

It is therefore time for the Republicans to act decisively to save our nation from crushing and irresponsible spending and debt. As long as the double-threat of default and suspension of essential services is removed, the people will get on board with the plan. The fact is, the people have been taking haircut after haircut in recent years. It is now time for the federal government to take one too.
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3)Call Obama’s bluff
By Charles Krauthammer

President Obama is demanding a big long-term budget deal. He won’t sign anything less, he warns, asking, “If not now, when?”

How about last December, when he ignored his own debt commission’s recommendations? How about February, when he presented a budget that increases debt by $10 trillion over the next decade? How about April, when he sought a debt-ceiling increase with zero debt reduction attached?

All of a sudden he’s a born-again budget balancer prepared to bravely take on his own party by making deep cuts in entitlements. Really? Name one. He’s been saying forever that he’s prepared to discuss, engage, converse about entitlement cuts. But never once has he publicly proposed a single structural change to any entitlement.

Hasn’t the White House leaked that he’s prepared to raise the Medicare age or change the cost-of-living calculation?

Anonymous talk is cheap. Leaks are designed to manipulate. Offers are floated and disappear.

Say it, Mr. President. Give us one single structural change in entitlements. In public.

As part of the pose as the forward-looking grown-up rising above all the others who play politics, Obama insists upon a long-term deal. And what is Obama’s definition of long-term? Surprise: An agreement that gets him past Nov. 6, 2012.

Nothing could be more political. It’s like his Afghan surge wind-down date. September 2012 has no relation to any military reality on the ground. It is designed solely to position Obama favorably going into the last weeks of his reelection campaign.

Yet the Olympian above-the-fray no-politics-here pose is succeeding. A pliant press swallows the White House story line: the great compromiser (“clearly exasperated,” sympathized a Post news story) being stymied by Republican “intransigence” (the noun actually used in another front-page Post news story to describe the Republican position on taxes).

The meme having been established, Republicans have been neatly set up to take the fall if a deal is not reached by Aug. 2. Obama is already waving the red flag, warning ominously that Social Security, disabled veterans’ benefits, “critical” medical research, food inspection — without which agriculture shuts down — are in jeopardy.

The Republicans are being totally outmaneuvered. The House speaker appears disoriented. It’s time to act. Time to call Obama’s bluff.

A long-term deal or nothing? The Republican House should immediately pass a short-term debt-ceiling hike of $500  billion containing $500  billion in budget cuts. That would give us about five months to work on something larger.

The fat-cat tax breaks (those corporate jets) that Obama’s talking points endlessly recycle? Republicans should call for urgent negotiations on tax reform along the lines of the Simpson-Bowles commission that, in one option, strips out annually $1.1 trillion of deductions, credits and loopholes while lowering tax rates across the board to a top rate of 23 percent. The president says he wants tax reform, doesn’t he? Well, Mr. President, here are five months to do so.

Will the Democratic Senate or the Democratic president refuse this offer and allow the country to default — with all the cataclysmic consequences that the Democrats have been warning about for months — because Obama insists on a deal that is 10 months and seven days longer?

That’s indefensible and transparently self-serving. Dare the president to make that case. Dare him to veto — or the Democratic Senate to block — a short-term debt-limit increase.

This is certainly better than the McConnell plan, which would simply throw debt reduction back to the president. But if the House cannot do Plan A, McConnell is the fallback Plan B.

After all, by what crazy calculation should Republicans allow themselves to be blamed for a debt crisis that could destabilize the economy and even precipitate a double-dip recession? Right now, Obama owns the economy and its 9.2 percent unemployment, 1.9 percent GDP growth and exploding debt about which he’s done nothing. Why bail him out by sharing ownership?

You cannot govern this country from one house. Republicans should have learned that from the 1995-96 Gingrich-Clinton fight when the GOP controlled both houses and still lost.

If conservatives really want to get the nation’s spending under control, the only way is to win the presidency. Put the question to the country and let the people decide. To seriously jeopardize the election now in pursuit of a long-term, small-government, Ryan-like reform that is inherently unreachable without control of the White House may be good for the soul. But it could very well wreck the cause.



3a)The Real GOP Debt Choice Do the Republicans want a showdown now, or in 2012?
By KIMBERLEY A. STRASSEL

Senate Minority Leader Mitch McConnell is taking heat from some in his caucus for "caving" on debt-limit talks. They might instead be thanking him for finally laying out the real choice Republicans face in this debate: 2012 or 2010.

Put another way: With President Obama now committed only to bad options, does the GOP allow him to unilaterally take ownership of his spending mess going into the 2012election? Or does the party remain so rigidly committed to its own 2010 promises of spending cuts that it joins the president in irresponsibility?

Republicans took a flyer on the debt debate, betting that the high stakes gave them enough leverage to force Mr. Obama to accede to spending cuts. It was bold. It was a potential shot at serious spending reform. It hasn't worked.

Instead of blinking, Mr. Obama has stubbornly dug in, committing himself either to whacking the country's credit or whacking the country's economy—or both. He's made clear to Republicans that the only deal he'll cut will require their help in those ruinous objectives.

Option No. 1 is for the GOP to do a $4 trillion "big deal," in which it gets some cuts, including to Medicare, though only in return for agreeing to significant tax hikes. The president forces Republicans to make a mockery of their own tax promises, and he gets cover for what's been his goal all along. He also gets to brag to his base about that victory, even as he demoralizes conservative voters.

Option No. 2 is the smaller, $2 trillion Biden deal. Even here the White House is demanding some tax increases, while Democrats insist a significant chunk of the cuts take place in future Congresses (which can ignore them). The conservative base will deride this as budget gimmickry, and the GOP will get little credit. The president, however, will boast to the rest of America that he has clocked "significant" spending reductions, and he'll run as a deficit-cutter.

Option No. 3 is for the GOP to go to the brink and share the turmoil or shutdown that follows default. Ask Newt Gingrich how that worked out for him in 1995. Mr. Obama today owns a failing economy. Republicans are begging for joint custody. Come turmoil in August, the president will lay every unemployment uptick, every poor economic statistic, at the foot of whatever panic or pain came out of the debt-ceiling mess—and the Republicans who helped push it to that point.

All this is why Mr. McConnell earlier this week proposed to step back and give the president authority to raise the debt ceiling. If he's so committed to his positions, let him swim in them. Let him own a deficit that's on track to hit $1 trillion for his third presidential year running. Let him tell America why he's cut nothing. Let him explain a credit downgrade caused by his failure to get serious about American debt.

Let him explain the slowing economy, the high unemployment and his proposals for new taxes—next summer. Let the Democrats up for re-election have to vote (as Mr. McConnell's proposal requires) to back up Mr. Obama's profligacy. Let Americans understand, clearly, that this is what they will continue to get if they re-elect him.

Resisting this position are dozens of House Republicans who were elected in 2010 on the promise that they would get America's spending problem under control immediately. This promise has been the animating principle behind all of Speaker John Boehner's and Mr. Cantor's negotiations with the White House. This crowd is aching for a giant spending-cut number to flaunt to the base, proving they are as good as their 2010 campaign word.

Yet despite campaigning on the Constitution, most appear to have missed the whole "separation of powers" bit. You know, the part that provides a presidential veto. Republicans cannot run government from the House alone, yet many have bought into their own debt-limit rhetoric. Rather than see this as the failed gamble it is, they truly believe they have the leverage to make this president give them all they want. "Call his bluff," goes the cry.

These are the same Republicans who have spent years rightly describing Mr. Obama as ideologically committed to giant government—the architect of stimulus, ObamaCare, blowout budgets. The same Republicans who believe Mr. Obama is pursuing a deliberate strategy to turn America into a European entitlement state. Yet now they believe he'll just roll over and give up all he's attained?

If the GOP is so eager to call an Obama bluff, how about this: Call him on his argument that he is acting like a leader, working to fix the debt problem, offering the GOP the opportunity to go big. That's the story line Americans are being fed right now, and the GOP shores it up every time it agrees to another White House summit. A shame, since in fact the only Obama offers are for mediocre cuts, higher taxes, and the opportunity for Republicans to help permanently enshrine big government. That, or for joint ownership of a failing economy and/or shutdown turmoil.

Let him own it.
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4)Mort Zuckerman: America Must Embrace Austerity


Brookings Institution senior fellow Mort Zuckerman says the U.S. must embrace austerity.

"A new era of American austerity is the only way to put things right," Zuckerman writes in the Financial Times. "Who could dispute, when our government must borrow $4.5 billion a day just to keep going, that our national debt is now an existential threat?"

"No wonder this is being called the most predictable crisis in U.S. history."

Zuckerman points out knowledgeable people in finance are aware the U.S. Federal Reserve has been buying 70 percent of all new Treasury paper, making the government by far the largest client of its own debt.

"This is possible only by increasing the money supply and the balance sheet of the Fed itself, a practice that sooner or later must blow up," he says.

Economists Carmen Reinhart and Kenneth Rogoff have shown that economic growth deteriorates as total government debt exceeds 90 percent of gross domestic product, Zuckerman notes.

"America is already in that range," he says. "Indeed, the real facts are even worse, for we are also now in the midst of the familiar Washington game of kidding ourselves about the size of the deficit. It is already at $1,645 billion for the next fiscal year."

"The Congressional Budget Office concludes that President Obama’s most recent budget underestimates spending while also overestimates revenues."

The Wall Street Journal reports that Standard & Poor’s has taken the unprecedented step of putting U.S. short- and long-term debt on CreditWatch negative and saying there’s now a one-in-two chance they will downgrade the U.S.’s debt within three months.
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Monday, July 11, 2011

Obama Then, Obama Now - If The Shoe Fits Wear It!

The woman applying for a job in a Florida lemon grove seemed to be far too qualified for the job; given her liberal arts degree from the University of Michigan and her jobs as a social worker and school teacher.

The foreman frowned and said, "I have to ask you this: "Have you had any actual experience in picking lemons?"

"Well, as a matter of fact, I have!" "I've been divorced three times,
owned 2 Chryslers, and I voted for Obama."
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Sweet Tammys and its new pink buses!

















Pink catches your eye and is not easily forgotten but, for some reason, reminds me of Obama but then almost everything pink reminds me of Obama!
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Obama then, Obama now.

If the shoe fits wear it:"The fact that we are here today to debate raising America's debt limit is a sign of leadership failure. It is a sign that the US Government can not pay its own bills. It is a sign that we now depend on ongoing financial assistance from foreign countries to finance our Government's reckless fiscal policies.

Increasing America's debt weakens us domestically and internationally.

Leadership means that the buck stops here. Instead, Washington is shifting the burden of bad choices today onto the backs of our children and grandchildren.

America has a debt problem and a failure of leadership. Americans deserve better."

SENATOR BARACK H. OBAMA, MARCH, 2006

Obama is a consummate liar, a fraud and a deceitful president who just yesterday suggested Social Security checks might not be mailed. What contemptible fear leadership.

If the debt limit is not raised then income receipts will be used for that purpose and government will have to slim down, agencies will have to cut back, government employees will be let go, as has happened in the private sector, and the world will not only not come to an end but we will all be better off as our government is forced to live within its means! That's what people and families do and what is government but a politically organized body of people and families. (See 1 below.)

First it was Ireland, then Portugal, Spain, Greece and Italy. What do they have in common? A political structure that is Socialistic and believes government can spend whatever is needed because there are free lunches! America will be next if we keep following Obama over the cliff.(See 1a below.)
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Some comments on the article I posted in the last memo by Jack Curtis entitled: "Our Retreat From Prosperity." (See 2 below.)
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What is The Obama White House thinking? (See 3 below.)

Meanwhile, the weak, the timid the appeasers seldom learn. (See 3a below.)
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Correction, retraction and apology regarding Delta and Saudi air travel. (See 4 below.)
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Obama needs to keep trying to revive this dead horse because everything else he is doing seems to be going down the toilet. (See 5 below.)

Why not invite members of The Muslim Brotherhood to the White House for a beer summit? Oh I forgot. How about tea? (See 5a below.)

These are the people whom Obama seems to align himself with. See PJTV.Com: "The Gaza Flotilla of Hate: Leftists to Hit the High Seas to Show Solidarity with Hamas

Leftists are assembling another flotilla in an attempt to embarrass Israel. Among them is author Alice Walker. Why are these leftists standing up for Hamas and not for Israel, the only democracy in the Middle East? Joe Hicks gives you the answers."
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Obama's popularity in Middle East now lower than GW's according to Zogby. (See 6 below.)
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This week a group held a meeting here on Sharia Law and infiltration. I could not attend but a friend sent me this recap. (See 7 below.)
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Are Conservatives being fair to Obama asks Jerry Shenk. Probably not, but then when you turn the question around perhaps you get a more appropriate answer, ie. Obama does not know how to be fair because he demagogues everything having learned well the Alinsky lessons of anarchist leadership. (See 8 below.)

However, Chad Stafko finds Obama is failing even by his own benchmarks and Krauthamer calls Obama's debt efforts a farce.. (See 8a and 8b below.)
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Israel's main defense companies displayed advanced wares at the recent Paris Air Show.

I previously sent a video mock up of the defense system layers discussed below.(See 9 below.)
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Learn more about this rising power in Egypt. (See 10 below.)
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Worthless paper is money but not rising gold according to our Fed Chairman. (See 11 beow.)
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Dick
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1) Rogers: US to Default 'One Way or Another'

The United States is going to "default one way or the other" and talks between Republican and Democratic leaders to lift the debt ceiling are "a sham" that won't do anything to prevent it, according to investor Jim Rogers.

Lawmakers will probably find a way to lift the $14.3 trillion debt ceiling, which the government says has to happen by Aug. 2, but gaping deficits have and will inflict enough damage to the dollar that a default is unavoidable.

Plus the debate will resume shortly after Aug. 2 anyway, as the government will quickly spend beyond its means again.

"It might be good for the world if the United States closed down for a while, but I can’t see that happening," says Rogers.

"Something will happen, things will look better, but then in six months or a year, things will be worse again."

Ratings agencies state the U.S. could lose its coveted AAA ratings if it defaults on its debt. Treasury Secretary Tim Geithner concurs that failure to lift the borrowing limit could be devastating to the economy because the U.S. won't be able to pay its bills.

The International Monetary Fund, meanwhile, has said it's not just the U.S. that will suffer.

"The federal debt ceiling should be raised expeditiously to avoid a severe shock to the economy and world financial markets," according to an IMF report.

Failure to reach a budget and debt compromise could result in a "sudden increase in interest rates and/or a sovereign downgrade."

Meanwhile, President Barack Obama and congressional leaders, struggling to break an impasse over taxes and spending cuts, continue meeting to seek common ground for a deal to avoid a looming U.S. debt default.

"Failure is not an option," Obama's Treasury secretary, Timothy Geithner, said before the talks got under way.

A former top economic adviser to Obama, Larry Summers, warned of "financial Armageddon" if the debt limit, which caps how much the United States can borrow, was not raised. But, he said he was confident both sides would reach agreement in time to avert such a scenario.

But the White House and Republican leaders remain far apart on the role of revenues in a deficit-fighting plan.

Obama is pressing for a big, $4 trillion package that would encompass spending cuts, tax increases for top earners, and reform of expensive entitlement programs for the elderly and the poor.

Republicans are pressing for a smaller, $2 trillion deal that is limited to spending cuts.

1a)Greece: Where Profit Is Taboo
A shipping magnate on the fate of his country.
By ANNE JOLIS


If you've ever wondered why so many Greeks succeed in shipping, John Coustas has a plausible theory: "Greek shipping has nothing to do with the Greek state."

His firm, Danaos Corporation, is a case in point. Mr. Coustas took over the company, which owns container ships, from his father in 1987 and has since transformed it from a three-vessel outfit into the third-largest company of its kind in the world, with a fleet of 56 ships. Danaos is incorporated in the Marshall Islands, a popular and stable jurisdiction for the global industry, and handles many of its operations through its German, Ukrainian, Russian and Tanzanian offices.

Nevertheless, Mr. Coustas is deeply concerned with the fate of his country. The government is now on the brink of default after passing its latest round of spending cuts and tax hikes. Yet the biggest risk to Greece, he says, is brain drain, that "all the good people, who really have something to offer, are either leaving or seriously considering it."

The accepted wisdom is that Greece's tragedy began when it joined the euro zone in 2001. The rich-country currency club allowed Athens to borrow at interest rates tailored to Berlin and amass debts totaling 155% of GDP today. Mr. Coustas sees the rot as originating in 1974 when politicians in newly re-democratized Greece began expanding the state to "enlarge their influence." That process accelerated after 1981, when Greeks "got our first Socialist government. In Greece we had socialism through borrowing, and actually politicians were never honest about what the true situation was. That holds across the political spectrum."

On top of misguided government spending, Mr. Coustas says entrepreneurial activity was denigrated for many years and profit was regarded as "wrong." "Anyone who wanted to make an investment here was considered a kind of bloodsucker."

In the early 1980s, Mr. Coustas was in Japan to sign a new shipbuilding contract for Danaos. He recalls being approached by a Japanese workers' representative who "wanted to thank us for giving them work." The worker told him, "'We will do everything possible to build a good ship for you.' Can you imagine that happening here? Here, if you tried to do the same thing and place an order in the Greek shipyards, you would get protests that either you paid too little, or are trying to pressure the workers, or whatever."

Little wonder, he observes, that Greece's Skaramanga and Elifsis shipyards went bankrupt. Danaos's recent new-build program was worth some $3.5 billion, and Mr. Coustas estimates that the entire Greek maritime sector's new-build projects were worth close to $100 billion in the last decade: "Imagine if a small fraction of that had been ordered in Greek shipyards."

Today, of course, "everyone agrees that Greece needs private-sector growth," but "nobody really asks the private sector what is required in order to invest. Nobody listens."

If they ever do, Mr. Coustas would recommend nothing less than a constitutional overhaul. He would start by "removing the Supreme Court's environmental involvement, through which it can practically annul anything, even if it's been legislated by the Greek parliament." He cites this judicial climate as a key reason for why Qatar has yet to proceed with its planned $5 billion investment in the Greek economy.

Equally unhelpful is Greece's tax code, which Mr. Coustas says "is designed so that the taxman can benefit from the lack of transparency. . . . He gets bribed in order to accept your illegitimacy." Businesses' total levies are 47% of profits, according to the World Bank, and Mr. Coustas notes that "of course a lower tax rate helps." But stability and transparency are more important. "That's how you really generate corruption, when things are gray," he tells me. "When things are black or white, interpretation is very easy; that is why we need a complete rewrite of Greek laws."

Greece's bloated public sector—state workers comprise at least 15.5% of the total labor force—are another burden. Politicians of all stripes, Mr. Coustas says, have given lifetime sinecures to this "totally unproductive" army of bureaucrats and now see them as a "sacrosanct" constituency.

Whether EU-IMF bailouts and chiding can save Greece, Mr. Coustas says, is really beside the point. "These questions are conditional on what Greece is really prepared to do." He points to his own storied industry as "the example of what Greek entrepreneurs can do when the state isn't nailing us down. If that kind of philosophy extended to the other sectors of the economy, then we would definitely see Greece prosper and thrive."

Miss Jolis is an editorial page writer for The Wall Street Journal Europe.
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2) The Civil War, fought to decide whether industrial or agrarian interests would control policy

No, the Civil War was fought to decide if liberty or tyranny would control policy, fought to decide if the dream ("We hold these truths to be self-evident: That all men are created equal; that they are endowed by their Creator with certain unalienable rights; that among these are life, liberty, and the pursuit of happiness...") of most of the Founding Fathers would be realized or longer denied, fought to decide if lazy men could keep other men, and women, as their slaves to force them to produce wealth for them while they sat on their lazy rear ends like a Gaggle of Welfare Queens.

The slave owners were clearly in this political elite category. That's probably why they were Democrats. "What has been will be again, what has been done will be done again; there is nothing new under the sun" (Ecclesiastes 1:9) show more show less

I have to suspect that all socialists governments in the past were based on the lack of basic necessities: food, clothing and shelter. In those times, people starved to death and died of exposure to the elements. But the massive wealth created by the remnants of our capitalism throws off off that much stuff almost as a waste product. Anybody can receive Food Stamps, public housing. And I am told that many minority children in inner cities wear expensive designer sneakers and Ugg boots. The basics for living that fueled classic socialism are now satisfied automatically. The rich are not hoarding these basics. The driving force of our socialism is something new.

There is a TV show called 'American Greed". This advertisement for more socialism supposedly proves that the rich have too much. But the top 10% already pay 90% of the tax. How could they possibly have too much? So in reality, the term "Greed" is the scam, and the real problem is the mirror image of Greed, jealousy. Indeed it is the vice of jealousy which is the problem. It isn't that rich people have too much. No, the problem is that government keeps telling 90% of the...show more show less


Feral Cat: Beg to differ, sir. Read the Constitutional Debates and Anti-Federalist Papers and the cause of the Civil War will be clear. It was the Confederacy that remained true to the founding fathers, Sir. I do agree with your comment on the slave owners, though. They imported a foreign race on this nation without regard for it's affect on society, only concerned about the almighty dollar (it was all economic). Those who hire illegal immigrants today do the exact same thing. show more show less


Socialism is the fraudulent bargain that we each can (and must) live at the expense of others. Since this destroys several essential components of our prosperity, it cannot be "sustainable". This is ironic in light of the fact that socialists in the form of environmentalists love to scold the rest of us about "sustainability". But a socialist economy destroys the very price information that ever participant in the economy needs in order to make economic evaluations. When enough participants consume more wealth than they produce, the economy must consume its capital resources. That is what we are doing at this very moment.

This was put in plain language by Margaret Thatcher when she is reported to have said that socialism works until they run out of other people's money
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3)WHAT IT MEANS TO ENGAGE HEZBOLLAH
By Omri Ceren

There are a number of signs the Obama White House is ready to establish something more than a modus vivendi with Hezbollah-controlled Lebanon. From siding with Beirut over Jerusalem regarding maritime resources to providing weapons to the Hezbollah-infiltrated LAF on the thinnest pretexts, the administration seems intent on “biting the bullet,” “living in the real world,” “negotiating with enemies not friends,” or whatever leaden catchphrase we’re using this week to justify bringing into the tent fanatics who want to destroy us.…

But let’s all keep in mind what Hezbollah is, because there was a time when even the echo of something like national honor would have precluded sitting across the table from them or anyone who refused to repudiate them. We owe more than a few Hezbollah leaders death sentences, and we owe the organization itself nothing less than unremitting hostility until we or they lose (as the world’s only hyperpower, in theory I like our odds). Instead the White House is actively searching for loopholes to maintain or enhance bilateral relations with Hezbollah-controlled Lebanon. So it’s worth reviewing how in 1984 Hezbollah kidnapped CIA Lebanon Station Chief William Buckley as he was leaving his house in the morning. They tortured him continuously for 15 months, occasionally sending videos of him naked and screaming to U.S. bureaus and agencies in Europe, until his body gave out. In the meantime, Hezbollah used the information he provided to dismantle U.S. intelligence assets in the Levant.…

In 1988, a few years after Buckley’s torture and murder, Hezbollah kidnapped U.S. Marine Colonel Rich Higgins. Higgins, who at the time was serving as a UN military observer, was tortured and eventually murdered.…

And of course, there are the 63 people Hezbollah murdered when they bombed our Beirut embassy in 1982, the 241 Marines they killed in their barracks in 1983, and the 18 serviceman they killed near the Torrejon Air Force Base in 1984. These might all be water under the bridge to the reset-philic neophytes who inhabit the White House, but the Hezbollah leaders who committed these atrocities are very much aware of who is coming to whom asking for talks, and under the shadow of what crimes. Americans should be as well.…

With the possible exception of al Qaeda, and driven by their state sponsor Iran, there is no terrorist organization more thoroughly committed to undermining American interests globally.

What is the White House possibly thinking?


3a)Three unlearned lessons about appeasement may yet again cause massive loss of life
By Caroline B. Glick


Five years ago this week, Iran's Lebanese proxy opened war with Israel. The war lasted 34 days, during which Hezbollah launched more than 4,000 missiles against Israel. Now five years later, under US President Barack Obama, America is pushing a policy that drastically escalates the chance that a new war between Israel and Iran's Lebanese army will break out again in the near future.

Back in 2006, Israel's response to Hezbollah's aggression was swift but incompetent. While Israel scored some blows against the Iranian proxy force, the war ended with Hezbollah still shooting. Israel failed to defeat the terror army. And because Hezbollah survived, it won the war.

This truth is exposed in all its ugliness by the political and military realities five years on. Today, Hezbollah is not simply in charge of Israel's former security zone in South Lebanon.

It is in charge of all of Lebanon. The Hezbollah-controlled government controls all aspects of the Lebanese state that it wishes. These include the military, the telecommunications networks, and the international borders, airports and sea ports, among other things.

Today, Hezbollah has not merely refilled its depleted missile arsenals. It has tripled the size of its missile arsenals. In 2006, IAF strikes in the first 24 hours of the war knocked out all of Hezbollah's long-range missiles. Today, not only have those stocks been replenished, Hezbollah's arsenal includes missiles with ranges covering all of Israel, with larger payloads and many with guidance systems.

The lessons of the war are easy to see. And the Israeli public, which learned them five years ago, still hasn't forgotten them.

GENERALLY SPEAKING, the war taught us three lessons. The first lesson is that you can't convince terrorists to lay down their arms simply by walking away. Israel withdrew from its security zone in southern Lebanon in 2000. The withdrawal was a precursor to its withdrawal from Gaza in 2005. In 2006, Israel was attacked from both territories.

In the lead-up to both withdrawals, Israel's national leadership told the public that the only reason terrorists from these territories were attacking us was that we were there. If we went away, they would stop hating us and we would be safe. We were the problem, not them, so we could solve the problem by giving them what they wanted.

Although then-prime minister Ehud Olmert and then-foreign minister Tzipi Livni continued to push appeasement through their insistence that Israel surrender Judea and Samaria, the war of 2006 showed the public the folly of their plans. And at first opportunity, the public elected the Likud and other right-wing parties — which oppose appeasement — to form the current government.

The second lesson the public learned is that when a nation goes to war against an enemy that seeks its destruction, it must fight to win. You cannot fight a half-war against an implacable foe. And if you fail to win, you lose.

This is not how Israel fought the war of 2006. Partially due to pressure from then-secretary of state Condoleezza Rice and partially due to his own strategic incomprehension, Olmert believed it was possible to fight to a draw without losing.

In the event, there was only one way for Israel to defeat Hezbollah — by regaining control over southern Lebanon.

Any other conclusion to the war would leave Hezbollah standing. And simply by surviving intact, as Lebanese Druse leader Walid Jumblatt warned at the time, the road would be paved for Hezbollah to take over Lebanon.

But Olmert — and Livni — wouldn't even consider retaking control of South Lebanon. The option was discarded contemptuously as a delusional recipe for forcing Israel back into the "Lebanese quagmire." The fact that the "Lebanese quagmire" came to Israel after we left Lebanon, and that it will only end when Israel defeats Hezbollah, was completely ignored.

Olmert's and Livni's reason for rejecting the one strategy that would have brought Israel victory is explained by the third lesson of the war. That lesson is that once a leader is ideologically committed to a policy of appeasement, he is unable to allow rational considerations to permeate his thinking.

THE OLMERT government was elected in 2006 on the basis of its plan to repeat the Lebanon and Gaza withdrawals in Judea and Samaria. During the war, Olmert told his supporters that victory in Lebanon would enable him to carry out his planned withdrawal from Judea and Samaria. And this was true. But because of the circular logic of appeasement, there was no way that Olmert could fight to win.

If Israel had retaken control of southern Lebanon, Olmert would have had a chance of convincing the public that unilateral withdrawal was a viable strategy. He would have been able to argue that just as the IDF retook control of southern Lebanon, so it would retake control of Judea and Samaria if the Palestinians used the vacated lands to attack the rest of the country.

But because he was committed to appeasement, Olmert could not fight to win in Lebanon. The appeasement agenda is predicated on the disavowal of the notion of military victory and the embrace of the mantra, "There is no military solution."

If victory is an option, then surrender along the lines that Olmert preached in Judea and Samaria is also an option.

That is, surrender is an option, not an imperative, as he claimed. And if victory is an option, then clearly it has much more to recommend it than defeat.

But with their appeasement agenda reigning supreme — as appeasement agendas always do — instead of fighting to win, Olmert and Livni sued for a cease-fire. That is, they sought a diplomatic solution to a military problem. And since by not losing, Hezbollah won the military contest, it also came out the victor in UN Security Council Resolution 1701, which set the conditions of the cease-fire.

Resolution 1701 was a massive victory for Hezbollah. The resolution placed the international terror group run by Iran on equal footing with Israel, a sovereign state. The security arrangements in the resolution were an invitation for Hezbollah to rearm. It was pure fantasy to believe that the Hezbollah-dominated Lebanese government would block Hezbollah's rearmament. And it was utter madness to think that European military forces would lift a finger to prevent Hezbollah from reasserting full control over the border with Israel.

But again, if you accept the circular logic of appeasement — that always puts the burden of proof on the non-aggressor — then you will never learn these, or any other lessons. And as a consequence, appeasers will always and forever foment wars in the name of peace.

THE ISRAELI public learned these lessons and elected a government that understands them. Perhaps if the American people had elected Senator John McCain to succeed George W. Bush in 2008, the US government would have learned these lessons as well. And then maybe together the Israeli and the US governments might have set about fixing at least some of the damage the war caused them both.

But in their wisdom, the American people elected Barack Obama to succeed Bush in the White House. And Obama has learned none of the lessons of the last war. Consequently Obama's current policies are increasing the likelihood of another war between Israel and Iran's Lebanese proxy in the near future.

Far from recognizing the nature of Hezbollah, the Obama administration has tried to wish away its implacability. Last May, Obama's counter-terrorism adviser John Brennan spoke of the administration's plan to cultivate "moderate elements" in the Iranian-run jihadist organization.
The Obama administration's notion that the US can adopt a nuanced approach to the terror group is put paid by Hezbollah's takeover of the Lebanese government, its growing capabilities in the Western hemisphere, its continued devotion to the cause of Israel's destruction, its participation in the killing of Syrian anti-regime protesters, and Iran's clear control over all aspects of the organization's operations. And yet, by all accounts, the administration refuses to acknowledge that there can be no nuance toward Hezbollah.

The dangers of Obama's rejection of these basic truths were exposed this week. Sunday the government approved the demarcation of Israel's territorial waters along the border with Lebanon. The borders will be submitted to the UN.

Israel's move was forced on it by the Obama administration.

The dispute over the sea border arose after Israel discovered massive quantities of natural gas in its territorial waters in 2009. Acting on orders from Hezbollah and Iran, the Lebanese government immediately claimed erroneously that the waters belonged to Lebanon. Last August, Lebanon submitted its claim to the UN.

Israel negotiated its maritime borders with Cyprus in 2007. The same year, Cyprus also negotiated its maritime borders with Lebanon. At the time, Lebanon did not claim the areas in which Israel has discovered natural gas deposits or the areas abutting those areas, which are suspected of similarly containing large natural gas deposits. Lebanon's current claim includes Israel's territorial waters abutting the gas fields it discovered in 2009.

In staking this false claim, as it did with the Shaba Farms on Mount Dov in the Golan Heights in 2000, Lebanon is setting up a casus belli against Israel.

Under the circumstances, the only rational policy that the US can possibly adopt is to loudly and strenuously back Israel's claim and reject all Lebanese contentions to the contrary.

Only by completely rejecting Lebanon's claim can the US deny Hezbollah and Iran the ability to use Israel's gas finds in its territorial waters as a justification for war.

Rather than do this, guided by its appeasement ideology, the Obama administration has refused to take sides. It urged Israel to submit its counter-claim to the UN — where it can bully Israel into accepting arbitration of the dispute by the inherently anti-Israel UN.

More generally, by refusing to take sides, the US is in fact siding with its enemy Iran and Iran's proxy Hezbollah against its ally Israel.

According to media reports, the Obama administration claims that by acting in this manner, it is seeking to prevent a flare-up of hostilities. That is, the administration believes that if it shows Hezbollah its good will by treating Israel's honest claim as equal to Lebanon/Hezbollah/Iran's false claim, it will appease the latter into not waging a war of aggression against the former.

But again, what the last war taught us is that this sort of behavior is what emboldens aggressors to attack. Obama's even-handedness in the face of a US enemy's aggression against a US ally is placing Israel and Lebanon on a straight path to a new war.
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4)RELIGION NEWS SERVICE EDITOR'S NOTE:

The RNS story on Delta Air Lines’ pending partnership with Saudi Arabian Airlines that was distributed on June 23 contained incomplete information about Saudi visa policies and U.S. Jews’ ability to fly Delta flights to Saudi Arabia. The story was not fully edited according to RNS standards:

-While Saudi Arabia does not issue visas to citizens carrying Israeli passports, Saudi officials say an Israeli stamp in a U.S. passport is not a barrier to entry, even for a stop in transit.

-While Saudi Arabia does not allow non-Islamic religious articles within its borders, religious identity and a passenger’s religious articles are not barriers to flights on either Delta or Saudi Arabian Airlines flights.

-Airline alliance programs typically allow passengers on one airline to book tickets on another, or redeem frequent flyer points on partner airlines. On Friday, Delta said such “code-sharing” agreements will not be part of its alliance with Saudi Arabian Airlines, nor will Delta passengers be able to redeem Delta frequent flyer miles on the Saudi airline.

RNS takes very seriously its commitment to accuracy, balance and thorough reporting, and the June 23 story failed to meet those expectations. Steps are being taken to correct and improve our internal editing process. We regret that the story was transmitted with incomplete information, as well as any unintended implication that Delta would be adopting policies of the Saudi government.
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5) It’s time to park the peace process
By Gideon Rachman,

A lot has changed in the Middle East since the Arab uprisings began. But one thing that remains constant is the obsession of international diplomats with the Israeli-Palestinian “peace process”. Monday saw yet another effort to drag the unwilling parties back to the negotiating table. A meeting of the Quartet (the US, the UN, the European Union and Russia), held in Washington, was expected to call for talks to restart, as a matter of urgency.

Nobody seems minded to point out an obvious fact. With the Middle East in turmoil, starting a new round of Israeli-Palestinian talks is completely pointless.

Speaking last week Catherine Ashton, the EU’s foreign policy chief, made the opposite case, listing several reasons why she thinks it crucial to start talks. Reason number one was “changes in the surrounding neighbourhood” – which seems a rather mild description for revolutions in Egypt and Tunisia, civil wars in Syria and Libya, and the destabilisation of Arab states from Morocco to Saudi Arabia.

In fact, it is precisely the “changes in the surrounding neighbourhood” that make it a bad idea to waste precious energy on a peace process that is now a sideshow.

Some European diplomats cling to the idea that the Palestinian issue remains at the heart of the instability in the Middle East. But that is a theological position that can only be upheld by resolutely ignoring actual events. If there is one thing that the uprisings across the Middle East have in common, it is that they have very little to do with the Palestinians. What is more, despite the eager predictions of many outside analysts, the occupied Palestinians territories have not (so far) exploded into Egyptian-style insurrection.

The main bearing that the Arab spring has had on the Palestinian issue is to change the calculations of both sides to the conflict, in ways that make them even less likely to risk negotiating a peace settlement.

At a time when Arab leaders everywhere are under attack for being remote, corrupt and elitist, it is simply too risky for the leadership of Fatah, the Palestinian faction in control of the West Bank, to enter into tortuous negotiations with the Israelis that will inevitably lead to accusations that they are selling out their own people. For the moment, the Palestinians seem much more interested in trying to reconcile Fatah and Hamas – and in pursuing the possibility of recognition of a Palestinian state at the UN General Assembly in September.

The Israelis are also in a defensive crouch. Israel’s regional policy was built around a peace treaty with Egypt, cordial relations with Turkey, a cold peace with Syria and a shared interest with Saudi Arabia in the containment of Iran. The upheavals across the Middle East raise questions about the durability of all of these arrangements – which make it highly unlikely that the Israeli government will take any further risks by pulling troops out of the West Bank.

There is, of course, real doubt about whether the current Israeli government actually has a genuine interest in trading “land for peace”. But even an Israeli government that was completely committed to the idea of a “two-state solution” would hesitate to take any long-term decisions in such a rapidly-changing environment.

One of the great potential rewards for the Israelis of an eventual peace deal with the Palestinians is the prospect that it will lead to a permanent peace with the wider Arab world. But with almost all of the Arab regimes tottering, Israel could have no guarantee that such a peace would last. There are also certain practical difficulties. Any peace with Syria would involve Israel handing back the occupied Golan Heights – but the government of Bashar al-Assad is otherwise engaged, right now.

Rather than waste time trying to pursue a final peace settlement, the “international community” should set more modest goals. The key point, at the moment, should be to try to stop either side from doing things that make a future peace deal actually impossible.

When it comes to the Palestinians, that means continuing to put pressure on Hamas to recognise the state of Israel. Without that, it is hard to see the Israelis agreeing to start talks. As far as Israel is concerned, the US and Europe should take a much harder line on Israeli settlements in the occupied territories that continue to eat into the land of a future Palestinian state. In an ideal world, the Obama administration would cut aid to Israel every time a settlement was expanded. Instead, Congress is currently waving the financial big stick in the wrong direction, at the Palestinians – for having the temerity to pursue their UN bid in September. Yet Israeli and Congressional hostility to the Palestinian charge at the UN is overdone. A General Assembly resolution without Security Council backing would change very little, legally or politically.

Still, the Americans and the Europeans do not relish the idea of being put on the spot at the UN. That might explain their eagerness to get talks started again. The plan seems to be to start a pointless peace process, in the hope of averting a meaningless UN declaration.

Meanwhile, the real action in the Middle East is going on in Egypt, Libya, Syria and the Gulf. Until the outcome of those dramas becomes much clearer, trying to force progress on the Palestinian question is a futile displacement activity.


5a) Egyptian Muslim Brotherhood Spokesman: necessary to annihilate Israel

"Both nations underline the necessity for Muslim nations to maintain
solidarity and unity to annihilate this cancerous tumor (Israel)," he
reiterated.

TEHRAN (FNA)- A senior member of the Egyptian al-Ikhwan al-Muslimun (Muslim
Brotherhood) party said the US, Israel and Saudi Arabia are pressuring Cairo
into giving up resumption of ties with Iran.

Speaking to FNA, former spokesman of Muslim Brotherhood Kamal al-Halbawi
called on Iran and Egypt "to take the necessary steps" to get rid of such
problems and hurdles placed by their opponents to impede resumption of their
ties.

He reminded the friendly and age-old relations between Iranian and Egyptian
nations, and called for faster diplomatic activities between the two sides.

"The Egyptian nation supports and welcomes Iran's anti-Zionist stance
because the two nations view formation of the Zionist regime on the
Palestinian territories as a brutal act and against the interests of the
regional nations and Muslims," Halbawi noted.

"Both nations underline the necessity for Muslim nations to maintain
solidarity and unity to annihilate this cancerous tumor (Israel)," he
reiterated.

After the collapse of Hosni Mubarak's regime, the Iranian and Egyptian
officials voiced their interest in the resumption of diplomatic relations
between the two countries and Iranian Foreign Minister Ali Akbar Salehi
officially invited the then Egyptian Foreign Minister Nabil Al-Arabi to pay
a visit to Tehran.

The Iranian foreign minister and his former Egyptian counterpart also held a
meeting in Bali, Indonesia in Spring.

During the meeting which took place on the sidelines of a ministerial
meeting of the Non-Aligned Movement (NAM), the two diplomats conferred on
ways to promote the bilateral relations between Tehran and Cairo, and
stressed the need for continued consultations in this regard.

Al-Arabi had earlier announced that Cairo would soon open a new page with
Iran.

Al-Arabi who was replaced with Mohamed El-Orabi became the next Arab League
Secretary to replace Amr Mussa .
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6)ContentionsObama’s Popularity in Arab World Now Lower than Bush’s
By Alana Goodman

James Zogby, the anti-Israel pollster who released these findings today, blames the drop in support for Obama in the Arab world on Obama’s failure to put the amount of pressure on Israel the Arab world wanted and expected. But according to the poll, the Arab world doesn’t seem to be happy with any of America’s foreign policy positions. Respondents rated Obama’s policies as the least popular, when compared with other leaders, including Iranian President Mahmoud Ahmadinejad.

Killing Osama bin Laden also contributed to the Arab world’s negative views of Obama. In all six countries surveyed – Egypt, Morocco, Lebanon, Jordan, the UAE and Saudi Arabia – the majority of respondents said killing bin Laden made them “less favorable toward the U.S.” Notably, in Egypt, only 2 percent said the al Qaeda leader’s death made them view America more positively.

Most surprisingly, Obama’s approval ratings are even lower than President Bush’s before he left office in 2008. They dropped from 26 percent to 12 percent in Morocco, 9 percent to 5 percent in Egypt, 16 percent to 10 percent in Jordan and 22 percent to 12 percent in the UAE (though they did improve in Saudi Arabia, and tick up slightly in Lebanon).

Obama’s unique background was supposed to make him a prime candidate to improve the relationship between the U.S. and the Arab world. But more than halfway through his first term, not only has there been no progress, it looks like relations are worse than before.
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7)This week we hosted a seminar on Radical Islam. Here are the notes from that seminar...We have a major problem in our government because the AG does not take seriously this threat to America, and far too many Americans have no idea how wide spread this threat is within our borders.

Seminar on Sharia Law

On July 11, True Perspectives hosted a seminar at Plantation
Club on Shariah Law. A capacity audience saw a riveting
presentation on how far the proponents of Sharia
Law have come towards their objectives of proselytizing
the world including America. The following is a summary
of that presentation.

Sharia Law is the only permitted civil law for believers in
Islam which is more a political philosophy than a religion,
as Sharia Law would govern all aspects of society and
exclude the validity of the U.S. Constitution.

Sample precepts of Sharia Law include:
• There is no freedom of religion: Jews and Christians
must convert or pay a fine
• There is no freedom of speech
• There is no equality: non-Muslims are less than Muslims
• There are no equal rights for women, who can be beaten
• All governments must be ruled by Sharia law alone
• Sharia cannot change (it was designed by Allah)

In 1987 the goals of the Muslim Brotherhood (MB) were
revealed in their website listings. Ultimately they wish to
convert the entire world to this one system of law known
as Sharia. The Muslim Brotherhood is an umbrella organization
of all Muslim sects that sets aside temporarily the
differences between Sunni, Shira and other sects in order
to eliminate all non-believer religions.

The Muslim Brotherhood plans were also brought out in
the “Holy Land Foundation (HLF) trial in 2007. Initially
HLF was designated a tax-exempt a charitable organization,
but was charged with being a primary U.S. funding
organization for Hamas and other Islamic terrorist groups
(e.g. funding children to become suicide bombers). This
trial ended in a mistrial, but a 2008 retrial brought convictions
and sentencing of the principals, including a founder
of the Council of American-Islamic Relations (CAIR).

MB methods include covertly infiltrating all aspects of
Western society, business and government to pave the
way for an ultimate takeover. Western Europe has already
seen its effects in the size of Muslim communities that
have not become assimilated into those countries. Instead
they are a potent force to use a native country’s own political
system to take over control. In many European
countries right now the majority of youth under age 21 are
avowed Muslims, as native popuations have seen their
own birthrates drop precipitously.

Muslim Infiltration Examples:

The US military had a Muslim Major Asan who murdered
13 and injured 29 persons at Fort Hood, He was in charge
of counseling returning veterans from Middle East wars.
Before his murder spree, he used to try to convert soldiers
to Islam instead of counseling them.

Al Qaeda was also active in infiltrating Mexico and co-sponsoring
drug lords to help get Al Qaeda operatives
into the US. Some of these sleeper cells in the US even
used the Port of Savannah to ship out US-made SUV vehicles
to the Middle East theater to rig up with bombs to
penetrate U.S. defenses. This was easier because the US
military used SUVs themselves, so approaching SUVs
loaded with bombs could get close to targets without suspicion.

There are even Muslim Brotherhood people on the advisory
board for U.S. textbook design in Texas to help rewrite
U.S. history to be more favorable to Islamic goals.
And it is now known that some U.S. mosques are being
used to plot further takeovers of elements of our society
and even to plot terrorist activities.

Islam in Commerce and Banking

U.S. corporations can inadvertently support the goals of
the Muslim Brotherhood by adhering to Islamic financial
arrangements. The Koran forbad paying interest on bank
loans so there is a charade that is played to circumvent
this notion, but what amounts to the equivalent to loan interest.
In some of these transactions, extra monies are
generated to support known terrorist activities. Banks also
pay the equivalent of interest on depositors’ accounts
without calling it that by make a monetary “gift” from the
proceeds used by the bank’s extra assets given to it by
the depositor. So much for the purity of the religion.

Also in Islam, it is ok to lie, especially to infidels, as long
as it furthers the goals of Islam. The worst sin is that of
apostasy, or leaving Islam for another faith. This crime can
be quickly punishable by beheading, by any one who is
now authorized to do the execution for this heinous crime.
Talk about golden “handcuffs.”

The Muslim Bar Association in alliance with the ACLU has
actively sought to bar U.S. investigations of seditious plots
claiming Islam is a “religion of peace” that deserves protection
from sinister plots against it. In Georgia, with the
help of the ACLU, they successfully killed a bill that would
have outlawed the use of Sharia Law in lawsuits and arbitration
cases. There was a case in Tennessee recently
that had the presiding judge rule that Sharia law could be
considered in exonerating a father for his daughter’s
honor killing based on Sharia Law. He was only following
his conscience, and didn’t recognize that U.S. Law superseded
any foreign belief system.

The uprisings in the Middle East of late are likely the major
work of the Muslim Brotherhood that may be entering
into a more aggressive phase to take over more countries.
Of course there are others in those countries who support
the uprisings and merely want more democracy from
heretofore repressive regimes. It remains to be seen who
winds up in power in each of these rebellious countries as
Egypt, Tunisia, Libya and even Syria. Is the U.S. State
Department fully knowledgeable about the more sinister
possibilities in these countries ultimate political outcomes?
Hillary Clinton’s assistant Huma Abedin (recently married
to the now infamous Anthony Weiner) has known ties and
sympathies to Hamas and the Muslim Brotherhood.

Additional materials on this subject include:
Sharia Law for Non-Muslims, by Bill Warner,

Journey Into the Mind of an Islamic Terrorist, by Mark Gabriel,

MissionP91.com, a website dealing with radical Islamic threats
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8) Are Conservatives Being Fair to Barack Obama?
By Jerry Shenk

Every day conservative media outlets devote incredible amounts of column inches, pixels, and air time to criticize President Obama and his administration. Conservatives comprehensively hammer Obama for his fiscal policies, spending policies, military policies, social policies, regulatory policies, labor policies, education policies, and foreign policies, plus any other policy which failed to make this list. Is such chronic disparagement reasonable? After all, everyone is human. Obama deserves to get cut a bit of slack every now and then, right?

Reflect for a moment on Grey's Law: "Any sufficiently advanced incompetence is indistinguishable from malice" and the law's variously attributed corollary, "Never ascribe to malice that which is adequately explained by incompetence."

I'll wait...

Finished reflecting? Ditto. Those are lousy choices. Malicious or incompetent, either way, America can -- must -- do better.

President Obama and national Democrats have much to answer for. America's barely discernible economic growth is insufficient to accommodate job-seekers. Unimaginably, the national debt has skyrocketed more than $5 trillion in only three years. Food and fuel prices continue to climb -- and the housing market is as bad as it was three years ago.

To support $5 trillion in deficit spending in three years, the Federal Reserve has tried two rounds of "quantitative easing," a euphemism for printing astonishing amounts of money, to buy back, or monetize, our own debt. All that new un-backed liquidity cheapens our currency, inflates prices for commodities, food and fuel among them, and threatens hyper-inflation.

Unemployment is still above 9% -- above 15% if those who have abandoned hope of finding work are counted. Unemployed Americans are falling off the tax rolls. Those still employed are made to do more with less at work and at home. Welfare is expanding and record numbers of Americans receive food stamps. Entitlement commitments for federally mandated Medicare and Social Security are unsustainable, yet the administration resists reforms. And the administration and fellow Democrats in Congress haven't submitted the annual budget their rules require in more than 700 days.

Now that the White House and House Republicans have reached an impasse over raising the debt ceiling, the president says that congressional Republicans must grow up, "eat our peas," and do something the Democrats could have done but would not do in the two years they held the White House and both Houses of Congress: pass a tax hike in the middle of a recession. Cut spending? Tax or entitlement reform? Those are not factors in the Democrats' calculus. Who could be naïve enough to think that reversing the policies that got America into this mess might get us out? According to the Democrats, what we need is more spending -- that, and no accountability for Democrats, of course.

In 2009, the Democrats' massive, unsuccessful $787-billion "stimulus" bill was peddled as a way to keep unemployment under 8% of the workforce. When the number of unemployed exceeded 10%, the administration moved the goalposts, telling America that the effects of the stimulus would improve the job picture by 2010 to mid-2011. But the rate of unemployment increased again in May and June 2011, at the same time earlier, rosier Labor Department job growth estimates were being discounted.

Things in America are far worse than the government will admit -- worse than the Obama Administration can admit going into a presidential election year. But, top administration advisor, David Plouffe, has acknowledged that the economy belongs to Obama and the Democrats.

Not only has Obama taken difficult economic times and made them worse, he and the Democrats propose to enact a tax increase and double down on the spending policies that prolonged and deepened the recession. But Obama needs a pigeon. Thinking he can count on enough Senate Republicans to roll over, Obama wants House Republicans to be complicit, too.

If they wish to extend their majority and win the Senate and the White House, House Republicans must resist tax increases, hold firm on genuine spending reductions, effectively present their case to the people, and allow the election of 2012 to sort out the dispute.

Obama wishes to be seen as above politics, the adult in a room of squabbling pre-schoolers or the principled agent among malefactors. He steps into policy disputes late when he steps in at all, placing himself between anonymous straw men at both extremes.

Victor Davis Hansen writes of the "first person" fatigue caused by Obama's rhetoric:

The demagogue, in messianic fashion, sees himself as a lone crusader taking on special interests, again always on behalf of "the people." Almost everything is personalized in these cosmic struggles. So, ad nauseam, we hear of the narcissistic "I," "my," "mine," etc., as if the executive branch is but one man of genius and compassion, set against existential challenges and demonic enemies everywhere.

To many, perhaps by now most, Americans, Obama is no longer a sympathetic figure. It's not just the arrogant condescension in Obama's voice to which people object. It's his policies. Viewed through the lens of Grey's Law, if Obama possesses the intellect with which his supporters credit him, and if there is a True North from which he takes his political bearings, a reasonable case can be made for willful malice in Obama's policy pursuits. On the other hand, other than campaigning, Obama has little real-world experience and no record of accomplishment.

Considering Grey's choices in characterizing Obama -- malice or incompetence -- the most persuasive case includes a combination of those attributes, both of which are unacceptable in the Oval Office.

Jerry Shenk is co-editor of the Rebuilding America, Federalist Papers 2 website©: www.federalistpapers2.org.



8a)Krauthammer: Obama's Sudden Interest In Cutting Debt A "Farce"

Charles Krauthammer on "Special Report" panel segment: "Look, he adopts this position of being the Olympian observer of all this, above all the squabbling. Everyone else plays politics, but he acts in the national interest. And he says, you know, 'If not now, when?' All of a sudden he's decided we have to have a big deal, not a small deal. For months, he insisted we have no deal. For months, he insisted that we have a debt ceiling increase with no cuts at all. Now all of a sudden, only a big deal. He says, 'If not now, when?' How about in February when he, as president, submitted a budget that increased the deficit?

"All of a sudden he is a man who wants to be the one who cuts the deficit and the debt. It's a farce. And you see it in the threat he made where he said, 'I will not sign a short-term extension.' Let's say we're in negotiations, and we're approaching, and we want something real like tax reform which takes a few months. And Republicans pass a tax reform -- pass a debt ceiling increase for say three months to allow negotiations. He says he will veto it because he is acting in the national interest; has to be a big deal.

I think the Republicans ought to call the bluff on this. There is no way in which if the House approves a three-month extension with cuts, commensurate relatively small cuts, that the Senate will oppose it and the president will veto it. Because then he gets the blame for the catastrophe that he and Geithner have been predicting."
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9)Sky's no longer the limit
Defense establishment presents plan to protect Israel with world's most advanced systems by 2015
By Alex Fishman


Israel's defense establishment is set to present an impressive plan in the coming days, the aim of which is to render Israel the most defensible country in the world from the threat of rockets and ballistic missiles.


The National Emergency Plan includes the development and production of the world's most advanced missile defense systems at the expense of NIS 7-8 billion ($2-2.3 billion).

(Fifteen Israeli companies show at prestigious Paris Air Show event; Israeli pavilion among show's top-five.)

These funds will not just come out of the defense budget – the state has already earmarked millions of dollars for the plan, which it hopes will be in place by 2015, around the time Iran is scheduled to be capable of producing a nuclear warhead.

The US has also granted Israel funds for the endeavor, some of which will come out of the budget allotted for the purchase of F-35 stealth jets, whose production has fallen behind.


Defense Minister Ehud Barak mentioned the plan during a visit to Paris several weeks ago. He spoke of "a national emergency plan that will significantly alter the defense of the home front and the state's citizens".


The plan is comprised of four levels protecting against ballistic missiles and long-range as well as short-range rockets.


The first level of defense is based on Arrow 3, which will intercept long-range missiles such as the Shihab 3 outside the atmosphere. The system is scheduled to undergo a test run in the beginning of 2012 and, if all goes well, to be fully functional by 2015.


Arrow 3 missiles will be fired from already existing Arrow batteries, currently stationed throughout Israel, according to the plan.


The second level of defense is based on Arrow 2, which targets missiles that have already entered the atmosphere.


The third and main level of defense is intended to handle artillery and long-range rockets such as the Syrian M-600 and the Fajr, as well as cruise missiles.

According to the plan, these will be intercepted by Magic Wand, another project supported by Uncle Sam. The system has encountered various problems and delays recently, but its developers hope it will be in place by 2015.


The fourth level – aimed at intercepting short-range rockets – is handled by Iron Dome, the defense establishment's newest fully functional system and one that has already intercepted rockets on various occasions.

The US recently earmarked $205 million for the continuing distribution of the system and its further development. The plan maps out 13 Iron Dome batteries throughout the country, up from the two currently in existence.


All of the systems described in the plan rely on various radars, which will be united and linked to US and Israeli satellites as part of the layout.


US Defense Secretary Leon Panetta has invited Barak to the Pentagon to discuss the mutual armament against ballistic and nuclear threats in the Middle East.
-------------------------------------------------------------------------------------------------------------------------10)Egypt's Rising Power Player
By Dan Ephron


Amr Moussa is on track to succeed Mubarak. And that spells danger for Israel.

At first glance, Amr Moussa would seem to have scant hope of winning Egypt's upcoming presidential election—the first truly free contest in modern history for that position. There's no shortage of candidates to lead the country, and none of them is more closely identified with the hated dictatorship of Hosni Mubarak than Moussa. He served as Mubarak's foreign minister from 1991 to 2001 and has spent the past decade as head of the Arab League, essentially an association of Mideast autocrats like Mubarak before his ouster early this year.

And yet, with the vote planned for sometime this fall, the frontrunner is none other than Moussa. Drawing support from a whole array of disparate groups, he's far ahead of his leading challenger, Mohamed ElBaradei, even though ElBaradei is a big favorite among the anti-Mubarak protesters who filled Cairo's Tahrir Square during the winter. More than anything, they sought a sharp break from the policies and the regime that ruled Egypt for three decades of repression and mismanagement. A break, that is, from the likes of Amr Moussa.

What's his secret? Many people admire the 74-year-old's dignified bearing and his smoky baritone, but that's only part of the explanation. What his supporters love most is his long and vocal history of anti-Israel diatribes. Speaking at his Arab League office looking out on Tahrir Square, he made no secret of his anger against Israel. "The peace process has become a dirty word, because we discovered it was just [an Israeli] trick to continue talking and make the cameras flash … but there's no substance. We shall not engage in such a thing anymore. Never."
Israel has been a theme in much of Moussa's professional life. A career diplomat, he was a protege of Egypt's foreign minister in the 1970s, Ismail Fahmy. When President Anwar Sadat made his historic visit to Jerusalem in 1977, Fahmy resigned his post, arguing that the overture would cost Egypt its leadership position in the Arab world. Moussa, 41 at the time, broke with Fahmy and eventually joined the team that helped draft the peace treaty between the two countries.

The agreement returned the Sinai Peninsula to Egypt, but just as Fahmy had warned, it also shattered Egypt's standing among the Arabs. By the time Moussa became foreign minister, Israel's settlement building in the West Bank and Gaza and its stalled negotiations with the Palestinians had undermined the rapprochement.

Moussa became one of Israel's most relentless detractors in Egypt. He confronted Israelis at conferences and attack-ed them in television interviews. His tirades even made him the subject of a hit song: Egyptian crooner Shaaban Abdel Rahim's 2000 "Ana Bakra Israel"—"I Hate Israel." After chanting the title phrase over and over, the singer adds: "But I love Amr Moussa." Moussa says he met Abdel Rahim years ago at a wedding party where the singer was performing. In a conversation between sets, Abdel Rahim told him that the line about Moussa had made Mubarak jealous. To avoid trouble, the singer mixed a new version in which the object of his love is Hosni Mubarak. Moussa gloats that the original made Abdel Rahim a millionaire, while the Mubarak version hardly sold.

Nagui El-Ghatrifi, who served as Moussa's spokesman for four years at the Foreign Ministry, says his former boss's anger at Israel is genuine. Still, Moussa seems keenly aware of the public's response to his outbursts. In a Pew Research Center poll published this April, two months after the revolution, 54 percent of Egyptians favored annulling the peace agreement with Israel, versus 36 percent who wanted to maintain it. (The rest were undecided.) A Western diplomat who got to know Moussa while serving in the region puts it bluntly: "The source of his popularity is almost entirely derived from his image as an Arab nationalist who's very critical of Israel."

Even so, Moussa rules out the idea of abolishing the treaty. "I will tell you two things: No. 1, that the treaty, we're not going to abrogate it. And No. 2 … We want to rebuild the country, and rebuilding the country by necessity [means] not to follow an adventurous policy."

Apart from his longstanding dislike of Israel, Moussa's political record is ambiguous at best. He insists that he often criticized the regime he served—so much so that he and Mubarak had a falling-out. "Relations between us became very tense, even personally," says Moussa. Yet it's hard to find evidence of any efforts at serious reform. In a television interview just a year ago, he vowed to support Mubarak: "As long as President Mubarak will run for election—and I know him well, and I know how he runs things, and so on—I'll vote for him," he said.

Moussa was on his way to the World Economic Forum in Davos, Switzerland, when protests erupted in Egypt this January. As the unrest grew, he left the conference early and flew home to Cairo. Back in his Arab League office, looking out on the hundreds of thousands of Egyptians filling Tahrir Square, he phoned President Mubarak, he says. "I told him, 'Mr. President, this is a revolution …' And I pleaded that there would be no bloodshed. 'You should listen to what they say, and no bloodshed.'" With Mubarak under house arrest and inaccessible to journalists, the story is impossible to verify.

According to several Egyptian newspaper reports, Moussa joined the protesters in the second week of demonstrations but tried to discourage them from seeking Mubarak's ouster. Asked about those reports, he says they were spread by his political opponents and were flat wrong.

Political polling was never allowed under Mubarak, but the international research company Ipsos is making up for decades of lost time. Its latest survey, in June, showed Moussa leading the pack with 25 percent of the vote, versus 5 percent for ElBaradei and even lower numbers for the rest. But Moussa's trend line is less upbeat: his support has declined steadily, from 40 percent in March. And the formidable number of undecideds—57 percent as of June—means the race is still open. As political scientist Marc Lynch of George Washington University puts it: " 'None of the above' appears to be winning by a mile right now."

Nevertheless, Moussa leads the field in name recognition, and he's courting the Islamist vote. He might actually win. After the revolutions of 1989 in Eastern Europe, more than one former communist apparatchik repackaged himself as a reformer and won office democratically. Steven Fish, a political scientist at UC Berkeley who studies post-revolution societies, thinks Moussa could do the same. Washington might find the former foreign minister more palatable than some of his America-bashing rivals, says Lynch: "The West can live with him, I'd guess."

But what about the protesters who toppled the regime—can they live with him? Will they give up on democracy if he's elected? To escape Cairo's hopelessly gridlocked traffic, I recently took the subway. On every map I saw in the cars and stations, the name of one stop had been scratched off. When I asked another passenger about it, he told me the stop used to be named Mubarak. Now it's being changed to "Shuhada"—"Martyrs." Egyptians seem determined to put the past behind them. The election may hinge on whether Moussa can do the same.
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11)Bernanke To Ron Paul: "Gold Is Not Money"

Rep. Ron Paul: "The price of gold today is $1,580. The dollar during these last three years was devalued almost 50 percent. When you wake up in the morning, do you care about the price of gold?"

Ben Bernanke: "Well, I pay attention to the price of gold, but I think it reflects a lot of things. It reflects global uncertainties. The reason people hold gold is as a protection against what we call tail risk, really, really bad outcomes. And to the extent that the last few years have made people more worried about the potential of a major crisis, then they have gold as a protection."

Paul: "Do you think gold is money?"

Bernanke: "No. It's a precious metal."

Paul: "Even if it's been money for 6,000 years? Somebody reversed that and eliminated that economic law?"

Bernanke: "Well, you know, it's an asset. Would you say treasury bills are money? I don't believe they're money either, but they're a financial asset."

Paul: "Why do central banks hold it if it's not money?"

Bernanke: "Well, it's a form of reserves."

Paul: "Why don't they hold diamonds?"

Bernanke: "Well, it's tradition. Long-term tradition."

Paul: "Some people still think it's money."
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