Britain’s Short Term Economic Outlook by Michael C. Feltham

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by Michael C. Feltham
Dandelion Salad
The Contrarian Analyst
13 January 2010

Smoke and Mirrors

Britain enters 2010 in a critical fiscal and financial position.

Much has been written, spoken and discussed about the strategy of stimulus via so-called Quantitative Easing or QE: now, most commentators glibly state this exercise is “Uncharted Territory” and no one knows how it will pan out.

I very much dispute such conclusion.

QE is simply creating money out of thin air, in the hope that piling supra-liquidity into financial markets will somehow act as a magical economic stimulus and return the economy to growth from recession.

Well, such could only work – to a limited degree – where the extra liquidity was immediately filtered down through the money markets and banks into direct business and commercial activities.

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Pots and Kettles! By Michael C. Feltham

Dandelion Salad

By Michael C. Feltham
Jun 17, 2008, 06:12

Which prominent Western nation might support a state, which presents as wholly xenophobic, is in process of committing ongoing and cynical genocide, constant sequestration of tribal assets, torture and deprivation of men, women and children and human rights abuses which, employing an effective standard of the Geneva Convention would earn the pejorative sobriquet “Pariah State”?

If we progress yet further in a quantitative analysis, then we discover that not only does this one major Western state support these totally amoral actions, but other lesser Western states are queuing up to emulate their example!

We learn from the gradually worsening news that Israel is threatening to bomb Iranian atomic reactors.

Personally, I believe it’s time for something of a rethink on Western attitudes and support for a claimed nation state, which is evermore rapidly turning pariah.

Failure of the IAEA

Whilst in theory, The International Atomic Energy Agency (IAEA) was intended to reduce the threat of a global nuclear holocaust by limiting national ambitions and possession of nuclear weapons this august body has clearly failed!

So, what precisely do the USA and Israel and the states such as Great Britain which exclusively and persistently support Israel base their belief in this support on?

Looking for a moment at the IAEA, post World War Two and the dreadful annihilation of both Hiroshima and Nagasaki, thereafter the arms race between the USA and Soviet Russia created a climate of ultimate Thermo-Nuclear fear: MAD (Mutually Assured Destruction) became a reality, until the early SALT meetings between the Russian President and the US President, began in 1969, defused, gradually inter-nation tensions and threats.

Since that time and despite the IAEA, first China and then India and Pakistan developed nuclear weapons and perhaps more critically, delivery platforms.

Now when the bully on the block threatens the little guy, well the little guy seeks some form of self-defence.

It’s not for nothing that the early products of one Samuel Colt came to be named “The Peacemaker”, since even a little guy, when faced with a much bigger and stronger guy could hold his own: hence the second popular name for a handgun became “The Equaliser”.

The Bullies and Iran

Right now, Islamic nations have been increasingly demonised: continuing the parlance as before, they are the Black Hats: Hiss! Boo!

But, let’s stop a while and ponder.

Are they really the bad guys? And if so, why?

During and after the Ayatollah’s Revolution, America came to be called The Great Satan:  or in Persian ÔíØÇä ÈÒѐ  and in Arabic ÇáÔíØÇä ÇáÃßÈÑ.


Well, here, we have to wind the historical clock right back to the early 1950s: in fact, 1953.

Post World War Two, the critical importance of crude oil supplies had been reinforced to allied nations, particularly the USA and Britain by the increasingly mechanised nature of warfare.

As the Middle East settled down from the effects of the conflict, social reform and its inevitable political energies accelerated.

Iran had elected a moderate leader, Mossadegh in 1951 and he started a rapid programme of social reform and, as had so many other states, nationalised Iran’s oil assets to the intense fury of the Anglo-Iranian Oil Company – now BP –  (previously the Anglo-Persian Oil Company) a major British economic lynchpin.

Britain was furious and their collective perspective viewed all Iranians as unwashed stone-aged savages, particularly those pin-striped gents with bowler hats (Derbys) in the hallowed Foreign and Commonwealth Office, whose singular qualification for a senior “Desk” was usually zero knowledge and empathy with the country of their focus!

Meanwhile, the US had negotiated with its ME oil sources and had reached a reasonably fair accommodation on both ownership and price.

However, the DDG (Deputy Director General) of Britain’s Secret Intelligence Service, the SIS –normally incorrectly expressed as MI6 – Dick White, flew to Washington and conspired with Allan Dulles, head of the fledgling CIA; with the president’s eventual support, Kermit Roosevelt, the grandson of Teddy and CIA Desk head for ME, secretly flew to Iran and set about destabilising Mossedgh’s government and mounting a coup which would restore Shah Reza Pahlavi to the famed Peacock Throne, which was eventually achieved.

Thereafter a new oil company with ownership split between US and Iranian interests, NIOC, came into being.

Once returned to Iran, the Shah commenced a process, with the keen assistance of US intelligence staff and the military, of seeking out those who had previously opposed him. His regime brutally repressed any opposition, as well as attempting to squash any form of secularism and Islamic interest.

His secret police SAVAK, were noted for their cruelty and refined and esoteric methods of torture: a commonplace circumstance.

Whilst parts of Iran became industrially advanced – making it probably the most advanced industrial state in the region – its peoples were driven rapidly backwards, socially and in terms of their religion.

As oil prices rose rapidly post the OPEC price hikes in the early 70s, the huge oil revenues allowed many Iranians, in particular the “Bizzaris” to become spectacularly rich: whilst the Shah squanders billions on mainly US weapons and systems, with the UK adopting a sort of subservient but highly profitable secondary role. However, with such wealth moral corruption can follow and it did: young Iranian women wanted to copy their brethren in Paris, New York, Monet Carlo et al and with a new freedom to travel they did; their styles became provocative and the Mullahs outraged.

The greater the process of unfettered material Americanism, the greater the cultural and religious divide became: too much too quickly is perhaps a fair description.

Meanwhile, however, in the more remote Iranian regions, particularly those bordering what was then Russia and Pakistan, the people were still staunchly Islamic and poor. It now seems obvious that where a nation is suppressed, fundamentalism emerges as a sort of backstop to human self-respect, self-belief and future hopes.

Eventually, as we know, the exiled Ayatollah Khomeini managed to foment his own rebellion and in short process, the Shah and his family left once more but this time finally.

Thereafter, as societies do, Iran swung from one extreme to the other and a fundamentalist Shia society became the norm, as did the reintroduction of stoning adulterers and others who offended the moral code of archaic Islam.

Now, we might well find such practices anathema: that said, many Western practices, like public nudity, drunkenness, debauchery, abandonment of children and the poor, usury as typified perhaps by Sub Prime, gluttony and obesity are equally reprehensible and anathema to devout followers of Islam.

Brief Review of Nuclear History

United States: After the USA with the assistance of many leading physicists from the UK, Germany, Italy and Norway, numbering Edward Teller, Enrico Fermi, Bill Penney amongst them, led by Dr Robert Oppenheimer  in the Manhattan Project, a new dangerous world dawned.

IAEA: The IAEA (International Atomic Energy Agency) was established in 1957 to try and prevent the proliferation of nuclear weapons, since it was obvious as with all technological breakthroughs, once the core and difficult design dynamics had been cracked, less advanced countries would emulate the process.

Russia: After Russia developed its Thermo-Nuclear capacity, 1955, the UK followed suit with its own independent programme under Lord Penney, 1957; then France, with a first fission test in 1960 followed by a Thermo-Nuclear test in 1968.

China: The World was shocked when China, at the time seen as a backwards state, mired in political ideology and focused on spreading the words of its then leader Mao, revealed in 1964, after its first test, that it had atomic weapons. (Most Chinese tests were carried out underground and thus left little visible “Footprint” for snooping US satellites).

India & Pakistan: India and Pakistan followed (1974 and 1998 respectively); South Africa whilst being an acknowledged nuclear power, has never tested.

Israel: Israel, who has also never tested, was forced to admit, eventually, that it too had joined the semi-exclusive nuclear nation club, whilst such admission has been hinted rather absolute. Most authorities however, believe Israel possesses a nuclear capability, evidenced, perhaps by its top-secret atomic station, hidden in Dimona. (Authorities believe that with the advent of Super Computers, testing has been carried out by simulation).

Now with Israel, it is alleged that Mossad hatched a secret plan to highjack a cargo of Uranium Yellow Cake ore on the high seas in “Operation Plumbat. Other theories lean to a secret deal between South Africa  (from where much Uranium ore is found and mined) by then a pariah state and banned from official weapons purchases from the main armaments producing countries by UN embargo. (Also see Uranium: The Israeli Connection)

Whatever the truth concerning the precursors, without doubt, Israel possesses a nuclear arsenal, which, during the Yom Kippur War in 1973, was readied for operational use as a final desperate throw of the dice when it looked as if they might be overwhelmed.

Israel, with tacit support from the US has, thus far, bombed, without provocation, reactors in Iraq, 1981 and Syria, 2007,

Whatever the stated justification, these are hardly actions to please the Arab world!

WMD: Now, the West is rightly concerned about Weapons of Mass Destruction being vested in extremists and nuts: quite agree. Additionally, we are worried about such dreadful systems being potentially possessed by sabre rattling hawkish opportunists; concur once more.

Hold the phone!

Those previous descriptors can neatly be applied to one George Walker Bush, who has illegally invaded another sovereign state, massacred tens of thousands of its population and all on a pretext, which seemed to change by the hour!

First it was WMD: next it was a “Moral Cause”: and finally, it was a “War on Terrah!”, when firstly no WMDs were ever found; morals were frankly missing from the whole sorry exercise and the “Terrah” factually, non-existent.

And then we have Israel, a self-confessed “State”, squatting on other people’s lands, which they have possessed by dint of genocide, torture, theft and aggression: led by a militarised government, hell-bent on a continuum of their singular determination to anger all those states around them.

And Muslims no doubt, wonder and question why America thinks it has the sort of God given right to reprimand their countries, and act as the World’s policeman where Dubya “Born Again” Bush (The draft-dodging ex-drunk and druggie) acts as Chief of Global Police, aided and abetted by his spiritual advisers, (between jetting round in their executive jets and gathering cash from the naïve) and his closet criminal associates, like Cheney, have been busy ripping off the US taxpayer over Iraq, it is alleged, to the tune of some $27 billion.

Rather than support the action of a warlike and aggressive state, perhaps the West might brook the words of a hawk, Winston Spencer Churchill: “Jaw, Jaw, Jaw, is better than War, War, War!”

One is thus compelled, perhaps to quote from the New Testament.

Who knows; perhaps it might chime, with Dubya!

Judge not, that ye be not judged. 2 For with what judgment ye judge, ye shall be judged: and with what measure ye mete, it shall be measured to you again. 3 And why beholdest thou the mote that is in thy brother’s eye, but considerest not the beam that is in thine own eye? 4 Or how wilt thou say to thy brother, Let me pull out the mote out of thine eye; and, behold, a beam is in thine own eye? 5 Thou hypocrite, first cast out the beam out of thine own eye; and then shalt thou see clearly to cast out the mote out of thy brother’s eye. (Matthew Chapter Seven, verses 1 through 5)

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