Tag Archives: middle east

Mad Dogs Alert: Saudis To Give Israelis Airspace To Attack Iran

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Hugh Tomlinson at The Times Online, June 12, 2010:

“Saudi Arabia has conducted tests to stand down its air defences to enable Israeli jets to make a bombing raid on Iran’s nuclear facilities, The Times can reveal.

In the week that the UN Security Council imposed a new round of sanctions on Tehran, defence sources in the Gulf say that Riyadh has agreed to allow Israel to use a narrow corridor of its airspace in the north of the country to shorten the distance for a bombing run on Iran.

To ensure the Israeli bombers pass unmolested, Riyadh has carried out tests to make certain its own jets are not scrambled and missile defence systems not activated. Once the Israelis are through, the kingdom’s air defences will return to full alert.”

Read the rest of this article at The Times Online

Esau And Jacob In The Middle East

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From Rabbi Brian’s Blog:

“In one of the most poignant moments in the Torah, after Isaac tells Esau, his son, that his brother Jacob has stolen the blessing, Esau burst into wild and bitter sobbing and said to his father,

“Have you but one blessing? Bless me too, my father” (Genesis 26:38) Continue reading →

Strategies Of Tension

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The Daily Bell on the tensions between Israel and the world as an elite manipulation:

“The creation of the tiny theocratic state of Israel was not something that came about because of an upsurge in sentiment that such a state was needed. Even Dr. John Coleman, who has written a recent (fairly vituperative) history of the Rothschilds, explains that the Jewish state was an invention of the elites – especially the Rothschilds – not a movement that bubbled up from Jewish populations around the world. The book, written in 2007, certainly makes a case for the Rothschilds as the driving force in the political developments and wars of the 19th and 20th century, especially. The motivating idea – the goal – is one-world government, though Dr. Coleman does not spell out the linkage between the state of Israel itself and the larger issue of global governance. Continue reading →

Israeli Historians, Politicians: Israel Was Never In Danger Of Extinction

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I’m indebted to Jeremy Hammond (author of the excellent piece, “The Simplicity of the Israeli-Palestinian Conflict”) for the compilation of these quotes:

“I know how at least 80 percent of all of the incidents there started. In my opinion, more than 80 percent, but let’s speak about 80 percent. It would go like this: we would send a tractor to plowin the demilitarized area, and we would know ahead of time that the Syrians would start shooting. Continue reading →

Madoff -Related Accounting Firm Does Dubai´s Accounts..

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From the Independent:

“Dubai World will start a formal process next week that will see it invite leading banks, including HSBC, Royal Bank of Scotland (RBS), Lloyd’s Banking Group and Standard Chartered, to create a steering committee to represent the many lenders. KPMG has been lined up by the lead banks to represent them in negotiations, with a formal appointment expected once the compilation of the five-to-six bank steering committee is finalised.

My Comment:

Now, KPMG is the big four accounting firm that gave Madoff´s representations to Tremont Group Holdings (a US fund that Madoff purportedly hoodwinked) a thumbs up.  The Tomchin Family Charitable Trust, one of numbers of investors who were allegedly scammed by Madoff,  has launched a lawsuit against KPMG and Tremont for negligence in monitoring one of Tremont´s funds that invested with Madoff.

The lawsuit included a list of other Madoff clients that included Victoria de Rothschild of the banking family of the Rothschilds and a Tory party contributor:

“Also on the list of Mr Madoff’s British clients is Lady Victoria de Rothschild, who is related to Nathaniel Rothschild, the co- chairman of Atticus Capital, the hedge fund.

Lady Victoria is a well-known figure on the society circuit and became known more recently as a lender to the Tory party, having set up a special company that gave the party a £1,014,000 loan that is due to be repaid in 2010.”

(Times Online, February 5, 2009)

KPMG has also been hit with a $1b lawsuit for “reckless and negligent” auditing of failed subprime broker, New Century Financial, reportedly the first major case against an auditor arising from the financial crisis.

My Comment

So we have a Madoff-tainted accounting firm KPMG, with multiple legal problems, representing the banks that loaned to Dubai on one side, and  (as I noted before) French banking legend Rothschild on the other side, heading up the restructuring efforts for Dubai….

Wiki has a list of KPMG´s legal infractions that includes this:

“In February 2007 KPMG Germany was investigated for ignoring questionable payments in the Siemens bribery case.[29] (Siemens agreed to pay a record $1.34 billion in fines to settle the case in December, 2008.) In November 2008 the Siemens Supervisory Board recommended changing auditors from KPMG to Ernst & Young.[30]

In 2006, Fannie Mae sued KPMG for malpractice for approving years of erroneous financial statements.[31]

In March 2008 KPMG was accused of enabling “improper and imprudent practices” at New Century Financial, a failed mortgage company[32] and KPMG agreed to pay $80 million to settle suits from Xerox shareholders over manipulated earnings reports.”

Some confidence-builder… a bank that´s been closely connected to the Madoff scam and to the Fannie and Freddie case (and hence, to Goldman Sachs)…

And, how about this:

KPMG and Deloitte were brought in to investigate India´s ¨Madoff¨” – the fraud- riddled IT outsourcing giant Satyam (now Mahindra Satyam, its post-merger avatar – over the objections of the Institute of Chartered Accountants, India´s regulator, which said KPMG was not registered with it and would thus not be subject to its code of conduct or disciplinary proceedings.

India Fears Effects of Dubai Meltdown

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After earlier assurances that the Dubai meltdown wouldn´t impact the Indian market much, top officials now admit in published reports that the Indian labor market could be affected.

“Annual remittances to India from UAE is about 2 billion US dollars, out of the $52 billion sent by Indian expats from across the world.Two-thirds of the six million people living in Dubai are Indians, more than 60 per cent of them Malayalis, much to the worry of Kerala’s Finance Minister T M Thomas Isaac.“One main fear,” he notes, “is that the credit to realty sector in Dubai would be frozen for some time. It could seriously affect the construction sector, thereby our workers.” There is also concern about the fate of Kochi’s Smart City project as the Dubai-based real estate giant TECOM is already alleged to be in a bad shape.Most of the Indians employed in the UAE, according to recruitment agencies, are in the real estate sector, financial services and retail.“The Middle East meltdown,” says E Balaji of Chennai-based headhunting firm Ma Foi Management Consultants, “will lead to at least 25 per cent contraction in the job market. It can have a ripple effect.”

My Comment:

I´m assuming that the job market refered to is the job market for Indians in the Middle East….

Meanwhile, the rupee has come under pressure as the Indian stock market sold off on the events in Dubai.

Deadbeat Expats Flee Sharia Crackdown on Debtors

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Foreign workers lured by the promise of easy living and credit are turning tail and choosing to leg it, rather than face Dubai´s tough Sharia law which mandates prison for debtors [not a bad idea in some cases…]:

“Now, faced with crippling debts as a result of their high living and Dubai’s fading fortunes, many expatriates are abandoning their cars at the airport and fleeing home rather than risk jail for defaulting on loans.

Police have found more than 3,000 cars outside Dubai’s international airport in recent months. Most of the cars – four-wheel drives, saloons and “a few” Mercedes – had keys left in the ignition.

Some had used-to-the-limit credit cards in the glove box. Others had notes of apology attached to the windscreen.”

Abu Dhabi Agrees to Selective Bail Out

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“We will look at Dubai’s commitments and approach them on a case-by-case basis,” the official told the Reuters news agency by telephone, adding: “It does not mean that Abu Dhabi will underwrite all of their debt.”  Al Jazeera, November 28, 2009

An unnamed Abu Dhabi official has said that the rich UAE [United Arab Republic] emirate will help its spendthrift neigbour Dubai on a case by case basis.

This gets pretty interesting for all the other countries out there with sovereign debt problems .. even though, as I blogged earlier, Dubai´s is not a sovereign debt problem. It´s a problem for Dubai World.

However, there seems to be a perception issue involved, which is causing credit default swaps for Irish banks to rise dramatically.

What´s going on?

This isn´t the first time the Dubai story has caused jitters in the market. Ten months ago, Dubai CDS´s rose to record levels on fears that neighboring and much richer Abu Dhabi wouldn¨t ride in to the rescue.
But that was Dubai CDS. Now it´s Irish CDS´s that are up.

Over at the Baseline Scenario, Simon Johnson has an explanation. He says the Irish tremors are caused by the perception that as Dubai goes, so go the other sovereign debt crises around the world:

1. If Dubai can effectively default or reschedule its debts without disrupting the global economy, then others can do the same.
2. If Abu Dhabi takes a tough line and doesn’t destabilize markets, others (e.g., the EU) will be tempted to do the same (i.e., for Ireland and Greece). “No more unconditional bailouts” is an appealing refrain in many capitals.
3. If the US supports some creditor losses for Dubai (e.g., because of its connections with Iran), this makes it easier to impose losses on creditors elsewhere (even perhaps where IMF programs are in place, such as Eastern Europe).

I´m not sure I follow this reasoning at all. Nor do I understand why Mr. Johnson seems to think this adds up to strengthening Ben Bernanke´s hand…..

Let´s see. Is Mr. Johnson saying that if picking and choosing whom to rescue is OK for an Arab sheikh, it should be good  enough for Ben Bernanke?

Frankly, that sounds less like an explanation and more like advance PR for the Fed to engage in arbitrary treatment – bailouts – of banks and other companies..

[Update:  And lo, it turns out that Ben Bernanke does need all the help he can get. He wants his power, dammit…see this oped at the Washington Post, hat tip to EconomicPolicyJournal]

A more convincing explanation of the Irish reaction than Johnson´s is Irish exposure via investment and employment to the Dubai economy.

“The Emirate was a Mecca for the Irish glitterati during the Celtic Tiger years, with many would-be investors taking a gamble. Ireland captain O’Driscoll bought an apartment in the e389million Tiara Residence in 2006 off the plans. However, the property may now be worth much less than the €500,000 he paid for it.

But thousands of Irish investors are facing the prospect of their Dubai prop-erties plunging in price. Price drops in Dubai have been severe. According to Knight Frank Global House Price Survey, prices dropped by 40%.

It’s all a long way from the glittering heights of the middle of the decade – and from the 1980s, before the ruling Al-Maktoum family decided to turn their dusty emirates into a leading city.

The Irish have shaped the landscape of Dubai like few other nationalities, with Irish builders, engineers and architects prominent in building up the city state.

But now, question marks hang over the fate of hundreds of Irish who escaped the slump at home for jobs with companies under Dubai’s control.”

More here.

No Check Points in Heaven

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Palestinian activist Ramzy Baroud writes about his father’s struggles, and eventual death, in Gaza:

“My father’s reputation as an intellectual, his obsession with Russian literature, and his endless support of fellow refugees brought him untold trouble with the Israeli authorities, who retaliated by denying him the right to leave Gaza.

His severe asthma, which he developed as a teenager was compounded by lack of adequate medical facilities. Yet, despite daily coughing streaks and constantly gasping for breath, he relentlessly negotiated his way through life for the sake of his family. On one hand, he refused to work as a cheap labourer in Israel. “Life itself is not worth a shred of one’s dignity,” he insisted. On the other, with all borders sealed except that with Israel, he still needed a way to bring in an income. He would buy cheap clothes, shoes, used TVs, and other miscellaneous goods, and find a way to transport and sell them in the camp. He invested everything he made to ensure that his sons and daughter could receive a good education, an arduous mission in a place like Gaza.

But when the Palestinian uprising of 1987 exploded, and our camp became a battleground between stone-throwers and the Israeli army, mere survival became Dad’s new obsession. Our house was the closest to the Red Square, arbitrarily named for the blood spilled there, and also bordered the ‘Martyrs’ Graveyard’. How can a father adequately protect his family in such surroundings? Israeli soldiers stormed our house hundreds of times; it was always him who somehow held them back, begging for his children’s safety, as we huddled in a dark room awaiting our fate. “You will understand when you have your own children,” he told my older brothers as they protested his allowing the soldiers to slap his face. Our ‘freedom-fighting’ dad struggled to explain how love for his children could surpass his own pride. He grew in my eyes that day.

It’s been fourteen years since I last saw my father. As none of his children had access to isolated Gaza, he was left alone to fend for himself. We tried to help as much as we could, but what use is money without access to medicine? In our last talk he said he feared he would die before seeing my children, but I promised that I would find a way. I failed.”