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by Editors Gordon Duff and Jim W. Dean, with Mike Harris

The news has been filled with stories of plans by Israel or the US to bomb Iran. There was recently a series of accusations made against Iran involving the assassination of Saudi and other diplomatic officials.

These accusations were quickly discarded by most press organizations as “far fetched” but, for some reason drew responses from the US, France and others, responses that were “non linear” at best.

Why would President Obama threaten Iran over accusations that all the networks said were nonsense?

Now, sources in Iran, at the highest levels, along with sources in the US and Britain, fearful of a “scam gone awry” tell of an extraordinary plot that is ready to unfold.

Secret contacts between Prime Minister Ahmadinejad, Ayatollah Khameni and counterparts in Israel, Russia and Turkey have been uncovered outlining a plan to stage an attack on Iran by Israel with full permission of the key groups within the leadership of the Iranian government and the clerics who oversee them. Members of opposition groups who have learned of this plan are livid.

The attack, scheduled for any day now, has one primary purpose.

It is meant to stabilize both the Iranian and Israeli governments, both of which have strong opposition at home and face charges of corruption and to correct major regional financial disaster each confront.

The “deal” between Israel and Iran is much closer to something out of the Sopranos than normal international relations.

This is pure “mob rule.”

THE OIL GLUT

Americans note that gasoline prices, recently at $4.50 per gallon, now approach $2.99 despite the continuation of artificial price supports due to illegal market speculation.

Gas price manipulation bankrupted the auto companies and has bled trillions of dollars out of the American economy that, not only destroyed our balance of trade but has lowered our standard of living.

This manipulation has been to prevent downward pressure on oil prices from three major market forces.

1) There has been an 8% decrease in demand for oil and other petrochemical products worldwide, causing massive downward pressure on oil prices.

Price platforms that had been over $150 per barrel (2008) with current futures trading up to $120 per barrel while actual sale prices according to Platts Marketscan are at $86.00 per barrel less discounts of up to $8.00.

Corrected prices based on actual supply and demand would have oil at or below $60 per barrel and gasoline on the American market at $1.79 per gallon and on most European markets at E .79 per litre including all applicable taxes and fees.

The truth about supply issues has been suppressed. Not only is demand down but supply is skyrocketing.

2) Recent discoveries in the Eastern Mediterranean and West Africa/Cameroon place available reserves at nearly 40% higher than estimated 3 years ago.

Accurate reporting of these reserves would make oil futures virtually worthless, something that in a normal world would be of interest to the Securities and Exchange Commission. Now its “big oil’s” time for its own “pump and dump” in the futures market. With this comes more powerful political backing for this crazed and apocalyptic scheme.

3) New gas pipelines have broken Russia’s stranglehold on the market for natural gas and will push costs and profitability in that commodity through the floor.

THE WAR FIX

There is only one way to stabilize gasoline prices that are in “free fall,” closing the Straits of Hormuz, the narrow waterway serving Iraq, Kuwait and other Gulf States that is controlled militarily by Iran through its vast network of Silkworm missiles will do exactly that.

Such an act would hit just like a worldwide oil embargo and could be triggered in hours by any Israeli attack on Iran.

What had been seen, in the past, as a potential world disaster, is now just another way to make a quick buck, despite the fact that those involved are, at least according to stories in our press, “blood enemies.”

IRAN’S PROBLEM

Iran’s government is unstable, unpopular, considered extremely corrupt and is subject to pressure both internally and externally and we note from the continual talk of “sanctions.”

Post revolutionary Iran has a theocratic government, whose elected officials are subject to oversight by a religious authority.

However, it is the religious authority itself that is currently the subject of most accusations of corruption and reported to be behind this new deal with Israel.

Additionally, Iran had chosen to invest around the imagined stability of the Euro, both out of poor financial judgement and a belief it was a way of opposing the influence of the United States in the region.

However, as the Euro is currently in total collapse and the banks looked to for providing support for the Euro, banks Iran is heavily invested in, are insolvent due to hundreds of trillions of Euros of “toxic assets,” worthless securities they have used to underwrite their most profitable lending activities.

Thus, Iran’s financial picture isn’t very hopeful and much less so if oil markets are under threat.

A collapse of oil prices would lower Iran’s GNP (Gross National Product) significantly, causing additional social discord and the inability on behalf of the government to subsidize key constituencies. Currently, veterans of the Iraq/Iran war are one of the key political constituencies in Iran and are very mobilized for political action.

They stand ready to act against the current government if financial policies threaten their interests, as does the military and the Revolutionary Guard.

NOT JUST IRAN

Just look at Nigeria. With a population of nearly 200 million, any cut in revenue due to falling oil prices would threaten their already beleaguered situation, a nation facing, not only terrorism but revolution.

Venezuela faces the same as does Ghana, Sudan, Chad, Angola, Tunisia, Indonesia and a dozen other nations without the financial wherewithal to remain stable with significant changes in the oil market.

Though “flush with cash,” the big loser is Russia, not just a potential big loser but also a “big player” in the region.

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