Live from Austin!

So, 5 undersea cables have now mysteriously been severed. Iran’s telecommunications connectivity is almost destroyed. Why on earth is this happening?

Meanwhile, Iran was due to start an international oil trading organization by February 11th, which would allow oil to be traded in currencies other than US dollars.

You know who else started selling oil in currencies other than the US dollar? Iraq, in 2000.

Hmm, what a coincidence.

In case anyone’s missing the significance: the only thing propping up the value of the dollar is that everyone needs oil, and you need dollars to buy oil. If countries could buy all their oil in (say) Euros, they’d stop dealing in dollars, stop lending the US money to run the deficit, and make it impossible to run the US economy as it’s currently being run. Or as the Economist puts it:

A shift towards a looser peg in the GCC would undoubtedly hurt the greenback. At the very least, dollars would be purchased at a slower rate—leading to what Mr Lyons calls “passive diversification”. At worst, the policy might encourage others to follow, sparking panic sales of American assets.

i.e. a very real chance of the US economy entering another Great Depression.

Text from a memo found in terror leader Abu Musab al-Zarqawi’s hide-out:

As an overall picture, time has been an element in affecting negatively the forces of the occupying countries, due to the losses they sustain economically in human lives, which are increasing with time. However, here in Iraq, time is now beginning to be of service to the American forces and harmful to the resistance [...]

In general and despite the current bleak situation, we think that the best suggestions in order to get out of this crisis is to entangle the American forces into another war against another country or with another of our enemy force, that is to try and inflame the situation between American and Iran or between America and the Shi’a in general.

[...] We have noticed that the best of these wars to be ignited is the one between the Americans and Iran, because it will have many benefits in favor of the Sunni and the resistance [...]

Sometimes you have to wonder whose side the US government is on.

Quote:

According to IRNA, the official Islamic Republic news agency, the national Police chief has implicitly verified the news about the confiscation of a number of squirrels, equipped with eavesdropping devices, on the Iranian borders. He has declined to give any more details, but, reportedly, when asked about the confiscation of 14 spy squirrels, he stated, “I have heard about it, but I do not have precise information”. IRNA adds, “These squirrels were equipped by foreign intelligence services, but were captured two weeks ago by the Police”.

Life imitates Flickr?