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Responding to Obama’s insistence on negotiating specifically over nukes rather than vague principles, Iran’s new Defense Minister Vahidi announced that manufacturing weapons of mass destruction is contrary to Islam and has never been on Iran’s agenda.

Those words are ironic coming from the man responsible for the bombing of a Jewish community center in Argentina. Somehow Islamic Pakistan found nukes not to be incompatible with its religion.

Ayatollah Khomeini sanctioned political lies in the pursuit of religious and political goals. Before coming to power it was necessary to put on an acceptable face for Westerners, so he posed as the Shah’s liberal opponent. At the same time, dealing with the Mujahedeen Khalq terrorists, he promised to share power with them in exchange for their help in driving out the Shah. He bought weapons from America and Israel while at the same time ordering Hezbollah to kidnap their citizens in Lebanon.

Lying comes very naturally to Iranian politicians, as indeed to all politicians.

Netanyahu’s secret two-hour visit to Russia could be related to either of two things. One is the Arctic Sea affair. The fact that the Russians sent so many ships and submarines to intercept the hijacked ship suggests that they are incredibly angry over the incident, and Netanyahu’s trip could be an attempt at damage control.

No less plausibe is the possibility that Israel is gearing up for an attack on Iran. The Obama administration spurned Iran’s negotiation offer, demanding that any talks be specifically on the subject of nukes. Since Iran is unlikely to agree to so direct an agenda, Obama seems to be constructing a casus belli. In that case, Netanyahu would act as an intermediary, correlating American and Russian positions on Iran, allowing both superpowers to keep their hands clean of the attack.

Netanyahu cannot allow himself to go down in history as the Israeli PM who stood idle while Iran acquired nuclear weapons. The question now is whether the US would strike North Korea simultaneously.

The BoI purchased a record of $800 million to stem off a speculative attack on the dollar. The Bank keeps dollar highly overvalued compared to the shekel to promote exports at the expense of consumers and importers.

In the midterm, the BoI’s efforts are doomed as international hedge funds possess vastly larger resources.

As we predicted, the BoI’s reckless policy of supporting the dollar can easily cost Israeli taxpayers in the range of 50 billion shekels, far in excess of export revenues the bank’s policy generated.

September 2009
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