My Comments: To deal or not to deal, that is the question. Most people are focused on the political implications of the agreement, and whether it’s a good deal for us or not. I’m very concerned about the economic implications as well. My blog post tomorrow talks about the high probability that Saudi Arabia will completely exhaust its currency reserves by the end of this decade. This has the potential to completely rearrange the balance of power in the Middle East, and if Iran is free to resume building a nuclear weapon, we’re all in trouble.
The net effect of these two seemingly unrelated circumstances could lead to a conflict of biblical proportions in the Middle East. We are now involved with Turkey in attempting to reverse the gains made by ISIS. Couple that with the financial relationship we have with Saudi Arabia, to name just one country, the chances of a dramatic shift in the balance of power if we cannot contain the nuclear ambitions of Iran increases dramatically.
Granted, the agreement cannot ultimately guarantee that Iran does not get a nuclear weapon. But it does realistically allow some time for counter measures to get put in place. If the outcome is the removal of the Saudi government in its present form, all bets are off. Never mind the lives to be lost in a conflict between the US and Iran, imagine the cost to us and the rest of the free world if the oil now flowing to Europe, Russia, China, India, etc. from Saudi Arabia stops. Talk about a global economic crisis. And all because few people in Congress are willing to look beyond their hatred of Obama. Dumb, and you and I will pay for it, again.
Edward Luce, August 2, 2015
A US rejection of the deal would give Tehran a green light to revive their nuclear agenda
Six years ago, Barack Obama’s big domestic reform almost went up in flames during an August of town hall protests. He was accused of trying to set up death panels for the elderly. This time his big foreign policy deal is under fire — though the allegation has not changed.
The Iran nuclear deal will apparently create a death panel just for Israel. The difference in 2015 is that Mr Obama is already lobbying Congress. His legacy, and the future of the Middle East, hinges on whether the deal survives next month’s vote on Capitol Hill.
The noisiest protest will take place on Thursday when the top 10 Republican candidates appear on Fox News for their first presidential debate. Among them will be Mike Huckabee, the former Arkansas governor, who believes the deal “will take the Israelis and march them to the door of the oven”. Ted Cruz, the Texas senator, says: “Hundreds of billions [sic] of dollars will flow to Iran that they will use to fund radical Islamic terrorism to murder Americans.” Donald Trump says Mr Obama has been taken “to the cleaners”. Only Jeb Bush has risked nuance. He has been pilloried for saying Republicans should be more “mature and thoughtful” about it. Yet he, too, says the deal should be binned.
Will it survive the onslaught? That depends on Mr Obama’s own party. To a person, Republican lawmakers oppose the deal, some apocalyptically. Even former isolationists, such as Rand Paul, who will also appear on the Fox podium, are now hawkish on the Islamic Republic. Much like Obamacare, the Iran deal will rely solely on Democratic votes on Capitol Hill. Many are wavering. To salvage the deal, Mr Obama must use his veto to override an all but certain majority vote against it. He will need a third of either chamber to do so. That means either 34 of the 46 Senate Democrats or 145 of the 188 House Democrats.
It will boil down to whether he, or Benjamin Netanyahu, the Israeli prime minister, holds more sway with undecided Democrats. Chief among them is Chuck Schumer, the New York senator, and probable next leader of the Senate Democrats. Mr Netanyahu has said Israel’s survival as a nation is at stake. In fact, it is his own job security as the country’s leader that is in the balance. He has built his career on hyping the existential threat from Iran. His coalition controls just 61 of 120 Knesset seats. He broke all rules in March by speaking to the US Congress against a president’s set piece initiative. Never before has a foreign ally done anything this egregious. Having breached the limits once, he has nothing to lose. The American Israel Public Affairs Committee and its allies plan to spend up to $40m lobbying against the deal. Much of it will be targeted at Mr Schumer. Mr Netanyahu will be working the phones as furiously as Mr Obama.
It is easy to forget that America’s legislature is supposed to be evaluating what is in America’s national interests. But Mr Obama’s real task is to convince fellow Democrats it will be good for Israel’s security. On paper, this ought to be straightforward. Though undeclared, Israel has an estimated 80 nuclear warheads. It also has “triad” capabilities – it can launch missiles from sea, air and land. Opponents of the deal say it will unleash a Middle East arms race. But as Bruce Riedel, a former senior official at the Central Intelligence Agency, put it: “A nuclear arms race has been underway in the Middle East for 65 years. Israel won it.” For the next 15 years at least, Mr Obama’s Iran deal cements Israel’s status as the Middle East’s sole nuclear weapons state.
Mr Netanyahu’s allies say the deal will unfreeze $150bn for Iran to spend on terrorism. This is absurd on multiple levels. First, the US Treasury says just $55bn in assets will be repatriated. Much will remain frozen under sanctions unrelated to Iran’s nuclear programme.
Second, Iran already spends what it wants on its regional proxies: unlike nuclear weapons, terrorism is a cheap business. With at least $3bn in annual US military aid — and more promised by Mr Obama — Israel has more than enough ability to keep defeating Hizbollah and Hamas on the battlefield.
Third, Iran suffers from an estimated $500bn in infrastructure backlog, of which up to $200bn is needed to reboot its oil industry. Iran’s government was elected on the promise of restoring economic growth. It will lose office if it wastes too much of the proceeds on foreign adventurism.
Would a rejection by Congress lead to a better deal? This is critics’ most frequent line. It is a fantasy. Rather than bringing Iran back to the table, America’s unilateral rejection of a deal it negotiated will push its own partners away. The horse has already bolted. Countries such as China, Russia and India have made it clear that they will resume trading ties with Iran regardless of what Congress does. Even the European three — the UK, France and Germany — are likely to press on. Moreover, a US rejection would give Iran’s hardliners a green light to revive their nuclear agenda. Instead of waiting a decade or more, Tehran could develop a warhead within months, according to the International Atomic Energy Agency.
Facts, as they say, are stubborn things. But perception matters more. The chances are that Mr Obama can scrape together enough support to uphold this deal. But it will be close. Either he or Mr Netanyahu will end this summer victorious.