What Does the Ayatollah Want?

My previous analysis of the Iranian crisis focused on whether Israel or the United States will preemptively attack Iran’s nuclear facilities. This question does not require us to investigate which course of action is right or wrong, strategically sound or unsound. The question is whether a certain military action will be taken or not. Today’s column will leave this question and focus on the Iranian side. What does the Iranian leadership want? What are they trying to achieve? What unintended consequences are likely to follow?

On Saturday President Mahmoud Ahmadinejad said Iran is about to unveil “major achievements in the nuclear domain.” He said an announcement would follow in a matter of days. More than a week ago, the Ayatollah Ali Khamenei said that Iran would never give up. “We will respond to threats of war and oil sanctions.” Indeed, Iran is suffering from sanctions and the freezing of assets.

UN Security Council Resolution 1696 calls on Iran to suspend all uranium enrichment and related activities. Several other UN Security Council Resolutions have been passed, basically restricting Iranian access to technology and equipment. The European Union has passed sanctions against Iran, as well as several nations – including Canada, Australia, Switzerland, India, the United States and South Korea.

Iranian President Ahmadinejad does not hide the fact that Iran is attempting “major achievements in the nuclear domain.” Undoubtedly, a country that is floating on oil, and has a plentiful supply of domestic energy, does not need nuclear power. Furthermore, why should Iran defy the international community in pursuit of this power? Nuclear power is more expensive than energy from fossil fuels. Add to this the cost of an embargo and sanctions. Is it not madness to persist?

What could the Iranian leaders be thinking? There is only one path to discovery. You have to ask someone who has been inside the Iranian system. Iranian defector and former Revolutionary Guardsman Reza Kahlili has written a book about the inner workings of the Iranian regime, titled A Time To Betray. It describes a leadership that believes in the coming of the Mahdi (or twelfth Imam), a figure from Islamic eschatology who will annihilate the unbelievers worldwide. According to Kahlili, Ahmadinejad “believes that many of the signs of the Madhi’s return have emerged. Known as Hadiths, these signs include the invasion of Afghanistan, the bloodshed in Iraq, and the global economic meltdown.”

Islamic prophecy says chaos and war, famine and mass death will set the stage for the appearance of the Mahdi. What could such a prophecy signify, if not the aftermath of a nuclear war? “People like Ahmadinejad so completely believe that these conditions would hasten the return of the twelfth Imam [Madhi], that they were willing to foment universal war, chaos, and famine to bring it about.” What the Iranian regime wants, according to Kahlili, is to immanentize the Islamic eschaton. Kahlili claims that the Iranian regime plans to unleash a nuclear war – a thousand suitcase nukes detonated in Europe and America at one time (or some such terrorist fantasy).

There is little doubt that Kahlili is accurately describing the openly professed beliefs of the Iranian leaders. What is unclear is whether the pragmatic business of statecraft can be entirely given over to a religious enthusiasm. Do the Iranian leaders govern with the idea of triggering the appearance of the Mahdi?

Last 7 November Joel C. Rosenberg wrote a piece for Fox News with the title Why Iran’s Top Leaders Believe That the End of Days Has Come. In this piece Rosenberg refers to a July 2010 claim by Ayatollah Ali Khamenei that he personally met the Mahdi (or twelfth Imam). Furthermore, the Ayatollah claims to be the Madhi’s representative. And there is more.

Last year a CD was widely distributed within Iran, titled The Appearance Is Imminent. From this CD we learn that the Mahdi is soon to appear. The CD also suggests that the Ayatollah Khamenei and President Ahmadinejad are the Mahdi’s helpers. Atousa Bayan, writing on balatarin.com, tells us the CD was “widely criticized” and that Iranian clerics and officials admonished the people who produced it, “and distanced themselves from the program.” However, wrote Bayan, “[T]wo important people did not react to the whole debacle – Mahmoud Ahmadinejad and Ayatollah Ali Khamenei.” Bayan went on to site a prominent Qom cleric who insisted on “the story of a miracle in which witnesses said that at the time of his birth, Ayatollah Khamenei uttered the name of Imam Ali.” Such claims, according to Bayan, show “the deteriorating image of clerics who would resort to telling unfathomable stories in order to create an air of sanctity around Iran’s Supreme Leader, a man bestowed with unlimited and unchecked power….”

In 2008 The Middle East Quarterly offered an article by Mohebat Ahdiyyih, titled Ahmadinejad and the Mahdi. According to Ahdiyyih, “After the 1979 revolution, the Islamic Republic incorporated the idea of Mahdism into its complex system of governance.” In this concept, the government of Iran and its top leaders are, by definition, “representatives of the Madhi in the ‘first government of God’ on earth.” In fact, the Iranian parliament is allowed to exist only insofar as its deputies offer their “services to [the] Lord of the Age [the Mahdi], may God speed his blessed appearance.” Since the first days of Ayatollah Khomeini’s regime, officials of the Iranian government paid lip service to the Madhi. Ahmadinejad and Khamenei are not the first Iranian leaders to pose as harbingers of the messiah. They have merely brought this belief front and center.

Reza Kahlili worked inside the Iranian Revolutionary Guard. He witnessed atrocities. He saw how crazy the regime’s beliefs were; so he decided to work for the CIA – to become a spy. In Kahlili’s account the Iranian regime plans to inflict massive destruction on Israel, the United States and Europe. If Iran becomes a nuclear power, he says, it will be too late for the world. Unprecedented destruction and suffering will follow.

How do we analyze Kahlili’s claim? First, we do not wish to believe such a claim. If we accept what he says, then we must invade Iran with ground forces. This would be expensive and unpopular. No American politician would publicly advocate such a plan. As the Iranian regime has total control over its own population, an internal uprising is unlikely. What is more likely, then, is that Iran will eventually attack the United States. Unfortunately for Khamenei and Ahmadinejad, the chaos unleashed in this attack will not bring forth the Mahdi. Instead, the chaos will bring forth the ascendancy of the undamaged powers (those not hit by Iran’s planned nuclear assault).

Jeffrey Nyquist is the President of the Strategic Crisis Center and Distinguished Senior Fellow in Political Science at the Inter-American Institute for Philosophy, Government, and Social Thought.

This article was originally published on Financial Sense on February 13, 2012. The opinions published here are those of the writer and are not necessarily endorsed by the Institute.

Iran Crisis Heats Up

The U.S. Defense Secretary Leon Panetta has said that Iran is probably one year away from having a nuclear device, indicating “a red line for us, and … for the Israelis.” Then Panetta said, “If we have to do it, we will do it.” This is one of the strongest statements from a U.S. official to date. In recent days Israeli officials have talked openly of striking Iran’s nuclear facilities. It seems there is something of an American-Israeli chorus in this regard. Can we take it seriously?

The Los Angeles Times ran a piece titled “Israel’s intentions toward Iran remain unclear.” According to this article, recent Israeli threats may be “a bluff to spur tougher sanctions.” Observing the statements of U.S. and Israeli officials, this seems probable. If you are planning a preemptive attack there is no point discussing it publicly. But if your strategy is to compel other nations to carry out sanctions, trusting they are frightened by the prospect of war, then you will talk openly about the possibility of war.

Yet, there is room enough for worry. Before the Israelis bombed Iraq’s nuclear facility on 7 June 1981 there was public talk. Of special interest is the role that Iran played at the time.  As it happened, Iran and Iraq were at war. When this war began the director of Israeli Military Intelligence publicly urged the Iranians to bomb Iraq’s nuclear reactor. And here is the punch line: On 30 September 1980 the Iranians attacked and damaged the Iraqi nuclear reactor with two F-4 Phantoms. (Please note: this was the first instance in history of a preemptive military attack against a nuclear reactor. The attack did not destroy the reactor. As noted above, the Israelis destroyed the reactor on 7 June 1981.)

According to the founder of the National Iranian American Council, Trita Parsi, the Israelis sent an official before the 7 June attack to secretly meet with a representative of the Iranian regime in France. At this meeting the Iranians agreed to allow Israeli warplanes to use an Iranian airfield if such usage became necessary during Operation Babylon (Israel’s preemptive strike against Iraq’s nuclear reactor). A preemptive attack on the Iraqi nuclear facility was strategically desirable for both Israel and Iran.

Today the Iranians have a nuclear program, and Iranian officials have talked publicly of wiping Israel off the map. Whatever Iran’s actual intentions, the Jewish people look back to the Holocaust and say to themselves, “Never again.” Some Iranian officials no doubt realize how frightened the Israelis are of a second Holocaust. They also know that the Israelis are willing to launch preventive strikes against the nuclear facilities of a hostile country. Knowing all this, the Iranian government does not rely – as did Saddam Hussein – on the deception that they are merely developing “peaceful” nuclear power. Nobody should doubt that the Iranian nuclear program is heavily protected, with critical facilities located underground. In addition to this, Iran has prepared its armed forces to close the Strait of Hormuz in the event of an Israeli or American attack. This is, perhaps, the most serious threat of all; for such a closure would cut the world’s main oil artery.

Rethinking the situation today, we must ask whether the Israelis will launch an attack. Israeli officials have at least three criteria with regard to an attack on Iran’s nuclear sites: (1) Are sanctions working? (2) Can Israel successfully destroy Iran’s nuclear capability? And (3) will America give the green light to an Israeli strike?

It is difficult to say whether sanctions are working. Iran has not abandoned its nuclear program, and is probably receiving under-the-table assistance from China and/or North Korea.  In all probability sanctions will not work. As for the feasibility of an Israeli strike, in terms of distance to the target and Iranian defenses, there is plenty of uncertainty. Nobody knows whether a strike of this kind would succeed or not. Given the international condemnation of Israel that would result, and the possible loss of U.S. support, the Iranians might secretly wish for an attack (provided it fails).

Given the consequences to the world economy (if the Strait of Hormuz is closed, even for a short time), it is not in the U.S. national interest for Israel to bomb Iran. While an Iranian nuclear arsenal would pose a potential threat to the United States, it would not be the only such threat. Russia and China already have nuclear arsenals aimed at America. What is more frightening to the Americans is a war in the Persian Gulf with a constricted flow of oil. In light of this, it is not surprising that President Obama and Defense Secretary Panetta have both warned the Israelis against a preventive strike in the past. This makes more recent statements by Panetta suspect, adding weight to the theory that U.S. and Israeli officials are attempting to intimidate Iran with tough talk.

Some Israeli strategists believe there is no choice. Israel will have to accept the reality of Iranian nuclear power. Therefore, they argue, Israel must rely on deterrence. Besides this, there is only one country that would profit by an Israeli attack on Iran. That country is Russia. First, because a closure of the Strait of Hormuz would mean that Russian oil exports would generate vast profits for the Kremlin. Yet the Russian government does not enjoy popular support at the moment. If Putin is replaced in the upcoming elections, Russia might be in a stronger position (or maybe not). But for now, massive anti-government protests in Moscow makes Iran unsure of Russia’s help.  All these factors may lead the Iranians to short-term concessions.

Of course, there are no certainties here.  We should not dismiss the possibility of a Third World War originating in a conflict with Iran. That much being admitted, the tough-talk of American and Israeli officials should not be taken at face value.

Jeffrey Nyquist is the President of the Strategic Crisis Center and Distinguished Senior Fellow in Political Science at the Inter-American Institute for Philosophy, Government, and Social Thought.

This article was originally published on Financial Sense on February 6, 2012. The opinions published here are those of the writer and are not necessarily endorsed by the Institute.

The Battle for Russia

The year 2012 is going to be an exciting one. There will be a presidential election in the United States. There may be a military clash in the Strait of Hormuz. But the most important changes may occur in Russia, where the Russian people are preparing to challenge the government of Prime Minister Vladimir Putin.  During the street protests in Moscow and other cities last month, a new feeling swept the country. This feeling has its roots in the development of an authentic Russian middle class. It is not a wealthy middle class by Western standards, but it nonetheless bears the mark of self-sufficiency and decency. Either this decency will prevail, or it will be checked. Either Putin will be swept from power or the Russian middle class will be smashed.

On one side of the struggle is the surviving machinery of old Soviet state: the secret police, the Interior Ministry, the large corporations, and Putin’s controlled media.  On the other side we see millions of people who are fed up with arbitrary government power, gangster methods, and who want to see the rule of law. Each side has its own rhetoric, its own philosophy.

Exemplifying the rhetoric of the Russian state, consider a recent Pravda.ru opinion piece titled Nuclear War on the horizon. Here is a view sometimes expressed by operatives of the Kremlin. In fact, something akin to this view was put forward by Vladimir Putin when he spoke to the Russian nation following the Beslan massacre of September 2004. At that time he blamed America for conspiring to murder Russian children, claiming that “someone” wanted to break up Russia and finish off what remained of the Soviet state because Moscow still had nuclear weapons.

In the Pravda.ru column, America is depicted as threatening the entire world with nuclear annihilation. The United States is accused of leading a bloody “genocidal campaign against Libya” and of threatening the same against Iran. No credit is given to U.S. Secretary of Defense Leon Panetta for publicly speaking out against a preemptive attack on Iran’s nuclear facilities. In fact, the United States is embarking upon a program of spontaneous disarmament. As Congress has been unable to pass the necessary deficit reduction package, the U.S. Defense Department will face what Panetta says are “devastating, automatic, across-the-board cuts that will tear a seam in the nation’s defense.”

The real policy of the United States and the real objectives of the U.S. military are never acknowledged by Putin’s spokesmen. In the Pravda.ru column we read: “The forces of demonic evil now have come nose to nose with the forces of reason.” This was a reference to the Russian fleet stationed near Syria, and the potential for a confrontation with NATO warships. Here the old rhetoric of the Soviet Union appears once more. The war drums are thundering, and the “imperialist aggressor” is called to account. But we cannot take it seriously. For something else has appeared on the horizon, which Putin says was inspired by the CIA: a popular opposition movement against his KGB regime.

Exemplifying this opposition we find Danila Galperovich’s interview with Russian dissident Vladimir Bukovsky, translated for Frontpagemag.com [2] by Yelena Glazova. Here we find a frank discussion of Moscow’s police state methods. Here we learn that the KGB has “lost much of their qualitative acumen and sharpness in the last twenty years.” And why wouldn’t they? According to KGB defector Anatoliy Golitsyn, the post-Soviet regime of pretended democracy was not supposed to last twenty years. It was designed to overpower the West in ten years. So the plan didn’t work. So Russia’s hidden totalitarian structures have begun to decay. They have remained under fake bourgeois auspices too long; and besides, there is no Stalin to lead them. In this matter we should remember what Stalin said to his henchmen during his last days: “You are like blind kittens; what will happen without me? The country will perish because you do not know how to recognize enemies.”

What Bukovsky goes on to describe is the fate of these blind kittens, caught up in the crisis of Russia’s false democracy. One might say it is the crisis of a deception gone too long, carried too far by structures that can no longer bear the load. A world war might have once saved the current Russian regime, granting it renewed legitimacy in the midst of crisis. But now it is too late. According to Bukovsky, the incompetence of the regime is such that if Stalin were alive today he would have them all shot. “They cannot even blow up the buildings in their capital city without exposing themselves and leaving traces,” Bukovsky added, referring to the 1999 apartment bombings that were used to justify the KGB’s return to power. “Nothing [in the KGB/FSB] works as it should,” says Bukovsky.

So how will this Kremlin, with its third generation blind kittens, survive the growing groundswell of popular opposition? Bukovsky says that the KGB understands how to manipulate mass movements with its network of double agents. But in the end, this method will not work. “The social atmosphere in due course becomes ever more politicized, radicalized,” Bukovsky explained. In the end, the KGB cannot join the protests against itself without damaging its own position. And so, Russia faces a serious political crisis in March or April. This crisis will likely grow, and spiral out of control.

Such is the hopeful, optimistic language of Putin’s opposition – represented by Vladimir Bukovsky. It does not entail fear-mongering or anti-Western propaganda. It simply describes a regime that has lost touch with its people. Such a regime may accuse the United States of fostering a revolution in Russia, or threatening the whole world with nuclear destruction; but the game of deflecting criticism in the wake of fraudulent elections does not appear to be working.

The year 2012 should prove decisive for Russia. Will the anti-Americanism take Russia by the throat? Or will the KGB regime lose its grip? One year from today we should know the answer.

Jeffrey Nyquist is the President of the Strategic Crisis Center and Distinguished Senior Fellow in Political Science at the Inter-American Institute for Philosophy, Government, and Social Thought.

This article was originally published on Financial Sense on January 9, 2012. The opinions published here are those of the writer and are not necessarily endorsed by the Institute.

The Mafia That Rules Russia

On Sunday I spoke with Luke Harding, the Guardian (UK) Moscow bureau chief who was expelled from Russia on 5 February 2011. “For you Russia is closed,” he was told when returning to Moscow after a trip to Britain. His Russian visa was annulled and he was bounced out of the country, despite lobbying from friends and associates, despite having a home in Moscow (which the Russian secret police had previously broken into – in order to intimidate Harding’s family). The Kremlin has a special means of communicating with uncooperative journalists: you break into their home, you rearrange objects, you open the tenth floor window of a child’s room, and if all else fails you expel the unwanted critic from the country.

Political fallout from such moves cannot be avoided. But, says Harding, those who dominate Russia – the siloviki – are not really interested in good relations with Britain or America. They do not care for our good opinion. They are more interested in controlling dissent; and punishing a British journalist by denying him access to Russia is a warning to all foreign journalists in Moscow. Do not criticize the Russian state. Do not criticize the FSB or Prime Minister Putin. “I think it’s important to be honest about the Putin regime,” Harding explained. And the Russian government violently disagrees.

Harding is brave, and perhaps lucky. He could have been abducted and killed, like his Russian associate Natalya Estemirova (a friend of Anna Politkovskaya, a Putin critic who was herself gunned down on 7 November 2006 – Vladimir Putin’s 54rth birthday). While the murder rate of Russian journalists is higher than that of Western journalists, a Western passport is no guarantee. Paul Klebnikov of Forbes Magazine died after being shot four times on a Moscow street on 9 July 2004. The publisher of Forbes’ Russian edition expressed the opinion that the murder was linked to Klebnikov’s “professional activities.”

Harding has written a book about his experiences in Russia, titled Mafia State: How one reporter became an enemy of the brutal new Russia. It is the account of a decent man who entered into an indecent political zone. Harding wanted to impress upon me the distinction between the warm, good-hearted Russian people and the gangsters in charge of the country. “Russia is not our enemy,” he said. The bosses in the Kremlin, along with the security services, are the problem. Describing Putin’s mentality as “stuck in the Cold War,” Harding said the Russian state was a chaos of competing interests, with Soviet attitudes dominating the top level. “They do not like the United States,” he emphasized.

Is there any hope for positive change? Harding thinks there is no immediate prospect of an Orange-type revolution in Russia. “Perhaps in four years, or ten,” he explained. There seems little doubt that Putin will be elected president next year. I asked Harding about former Ukrainian President Leonid Kravchuk’s claim that Putin is “one step below” the real rulers of Russia. Harding dismissed this idea, saying that Putin was clearly in charge; though Harding elsewhere admits that the Russian system is murky. In his book he wrote: “In a city prone to rumors and conspiracy theories, it is fair to say that during the Medvedev period very few people in Moscow really know what is going on at the top of the Kremlin. Even Russia’s cabinet seems largely in the dark.”

We must not forget that Harding is writing about a country that has thousands of strategic nuclear warheads, including the most advanced ICBM on the planet (the SS-27). The fact that Russian television is under the thumb of a KGB officer, that journalists are routinely assassinated (and the assassins remain at large), is only the tip of a much larger Cold War iceberg. The chill, as it were, is still on. If the “new” Russia can be characterized as a regime of assassination and censorship at home, is there an ongoing Russian campaign of subversion and espionage abroad?

I asked Harding about former KGB officer Alexander Lebedev, a Russian billionaire who presently owns two British newspapers. “He is not your typical Russian oligarch,” said Harding, who described Lebedev as “charming,” cultured and elegant. “How do you feel about a former KGB officer owning two British newspapers?” I asked. Although Harding likes Lebedev pesonally, he is not altogether at ease with Lebedev’s position.

Does Lebedev use his ownership of British newspapers to slant the news in England? Supposedly, Lebedev doesn’t interfere with editorial policy, “But his newspapers have failed to review my book,” Harding admitted with a laugh. Is this an innocent oversight? I asked Harding why Lebedev doesn’t get along with Putin critic and former World Chess Champion Garry Kasparov. Harding admitted that Lebedev was probably a Kremlin operative.

So what has changed in Russia since the fall of the Soviet Union? The Communist label has been removed, and ideological indoctrination no longer occurs. But the instrument of dictatorship continues, with its Soviet mentality and its vast nuclear arsenal; oppression and censorship at home, subversion abroad.

Jeffrey Nyquist is the President of the Strategic Crisis Center and Distinguished Senior Fellow in Political Science at the Inter-American Institute for Philosophy, Government, and Social Thought.

This article was originally published on Financial Sense on October 31, 2011. The opinions published here are those of the writer and are not necessarily endorsed by the Institute.

The Root of the Matter

Are we headed for hyperinflation? Consider the Web site of the National Inflation Association (NIA), www.inflation.us  – with the subtitle Preparing Americans for Hyperinflation. According to the NIA, “The United States now has over $76 trillion in total debt obligations. Our budget deficit in February of 2011 alone was a record $225.5 billion, more than the entire year of 2007.” The NIA believes that the U.S. federal government will not be able to balance its budget, let alone pay off its existing national debt. Inflation is therefore inevitable as the government will have no alternative. Not everyone agrees with this assessment, however. Looking at the situation very differently, Wall Street Journal Economic Editor David Wessel concluded that an “immediate outbreak of inflation is improbable.” The economy, after all, is stagnant. How could there be inflation? Of course there are special circumstances that could arise, Wessel admits. But these are nonetheless unlikely.

How are we to evaluate the inflation question? Is there more sense in the “big picture” analysis of the NIA? Or is there more sense in the detailed analysis of David Wessel? The NIA takes the long view while David Wessel is trying to see what may be lurking around the next corner. What we find in the NIA and WSJ is two approaches to the same question. In the game of prediction, “big picture” analysis usually won’t tell you want is going to happen in the short run; and most details of the moment are mere trivia when it comes to the long run.

Those who specialize in long run thinking are sometimes called “philosophers,” or lovers of wisdom. One of the more relevant philosophers of the last century was Jose Ortega y Gasset, who wrote a remarkable little book published in 1930 under the title The Revolt of the Masses. One of the core themes of the book is that, “for good or ill,” the masses have ascended to “complete social power.” Ortega called this situation “the greatest crisis that can afflict peoples, nations, and civilization.” He noted that mass man is only concerned with his own well-being while remaining ignorant of the principles that make civilized existence possible. “They do not see behind the benefits of civilization,” he wrote. “The mass man has a radical ingratitude towards all that has made possible the ease of his existence.” This might include the principles of economics, thrift and industry. The mass man is focused on the immediate future, and immediate gratification. He does not look to the long run. “The long run is a misleading guide to current affairs,” wrote John Maynard Keynes. “In the long run we’re all dead.” (Spoken with due sensitivity to the spirit of the age.)

Something is definitely lost when we adopt a negative attitude toward the long run. In a chapter titled “Primitivism and History,” Ortega argued that “Nature is always with us.” Civilization, however, is not Nature and is not always with us. Civilization is artificial and fragile. “If you want to make use of the advantages of civilization,” he warned, “but are not prepared to concern yourself with the upholding of civilization – you are done.” Civilization exists because of long run thinking. It is maintained by long run thinking. Therefore, civilization is imperiled at a time when nearly everyone is focused on the short run. A key symptom is found in a general want of historical knowledge. “The most ‘cultured’ people today are suffering from incredible ignorance of history,” wrote Ortega. “I maintain that at the present day, European leaders know much less history than their fellows of the nineteenth, even of the seventeenth century.”

A similar statement could be made with regard to economic knowledge. Just as we have been losing our sense of history, we have been losing that sense which says “a penny saved is a penny earned.” If the mass man is merely concerned with his immediate gratification, and if he has no regard for the economic long-run, is not indebtedness his destiny? And once he finds himself ruined by short-sightedness, what desperate measure will he next employ?  Retrogression is likely, Ortega predicted. By this he meant “typical movements of mass men, directed, as all such are, by men who are mediocrities, improvised, devoid of long memory and a ‘historic conscience,’ they behave from the start as if they already belonged to the past….”

If we look back at history, we see that inflation and economic stagnation can exist together. We also see that inflation is the natural course of government when leaders prove themselves ignorant. And why should leaders be any more enlightened than the so-called “experts” and professors who advise them today? What was taken as common sense for centuries is now considered out-of-date. The same John Maynard Keynes quoted above also said, “In truth, the gold standard is already a barbarous relic.” Indeed! The Roman Emperor Caracalla debased the silver denarius from 95 percent silver to 50 percent and then 0.5 percent. Barbarian mercenaries in service to the emperor would not accept payment in Roman coins, but insisted on payment in gold.

History suggests that all fiat currencies are headed for worthlessness. We do not know, of course, how long it will take in any given case. The National Inflation Association has a number of intriguing charts, which readers may wish to evaluate for themselves (see http://inflation.us/charts.html [4]). The one that caught my attention is titled “Fed & Treasury Total Money (FTTM).” According to this chart the Fed & Treasury total money supply began to skyrocket after the 2008 economic meltdown. The NIA set down the following note below the chart, “The DOW Jones has rallied 97 percent from its low in March of 2009. However, adjusted for real inflation, the Dow Jones is about equal to where it was in 1963.”

Inflation is already here, and worse is coming.

Jeffrey Nyquist is the President of the Strategic Crisis Center and Distinguished Senior Fellow in Political Science at the Inter-American Institute for Philosophy, Government, and Social Thought.

The opinions published here are those of the writer and are not necessarily endorsed by the Institute.

Russia’s Disruptive Role

On Sunday I spoke with Polish journalist Tomasz Pompowski, who wanted to give me an update on events in Europe. The picture he painted was not entirely pleasant. Russia, he said, was promoting economic and political instability. Russia’s role is not generally understood, he explained, but “whenever you look behind a little, you see the Russians. You see former KGB people.” The game appears to involve businesses, including media businesses – but especially the energy business. The Russians make a great deal of money by exporting gas and oil. It also appears they have a special strategy for dealing with their competition.

“The peaceful siesta after the collapse of the Berlin Wall was deceptive,” said Pompowski. The Russians, he explained, made use of the Arab world in order to cause problems and play games with future energy prices. “If you talk to KGB dissidents,” he said, “they will tell you that the most important research department in the KGB was that devoted to Arabic language, culture and Islam, going back since before the invasion of Afghanistan.” The Arabs and the Iranian Muslims control a very considerable part of global energy production. If trouble can be stirred up within these countries, or between countries, then Russia will get more money for its energy exports. For example, the political destabilization of Saudi Arabia could be very profitable for Russia. At present, encouraging Iranian nuclear ambitions, with the attending sanctions on Iran, may also lead to higher Russian profits.

Russia is also making economic moves into Europe and Israel. “Russian tycoons are buying up the Israeli media,” he said. “Meanwhile, Rupert Murdoch is under attack just as he was starting to invest in Eastern Europe.” Pompowski pointed to the fact that Murdoch’s rival in the United Kingdom is “former” Soviet KGB officer Alexander Lebedev, who owns the Evening Standard and is buying Murdoch’s News of the World which was closed down three weeks ago in the wake of a scandal in which News of the World was found by British police to have hacked the phone calls of nearly 4,000 people, including members of the Royal family. “Look at that,” said Pompowski.

When I asked Pompowski why the Russian operatives would block Murdoch in Eastern Europe while taking over his outlets in Britain, he explained: “I believe Moscow has to put down the alternative voices.” Why would this be necessary? Moscow is trying to split off Europe from America through the agency of anti-American active measures.  Murdoch’s media outlets represent an obstacle to such an effort.  “The late Gen. Odom believed that the Soviet Union transformed itself into these different entities,” noted Pompowski. “Now the NATO states have to understand this new complex of power, and they must take notice.” The danger, said Pompowski, is that Russia may “damage and destabilize the structures established after the Second World War, which were part of the Western security system.” The official Russian policy is to create a new “security architecture for Europe.” This translates as Europe without NATO – that is to say, Europe dominated by Russia.

Pompowski also spoke of revelations that the bombing of the U.S. Embassy in Georgia last year was carried out by Russian GRU officer Maj. Yevgeny Borisov, and was coordinated by Russian military intelligence.  Why would Russian military officials order an attack against a U.S. Embassy? “I believe the Russian state is completely in disarray,” Pompowski explained. “There are several criminal powers within the state, all acting along different lines. I think in the end they are lost. Russia is a rogue state. It is completely a rogue state.” The idea is that Russia is caught between nationalist, communist, mafia and ersatz-Orthodox Christian power blocs. Yet all the various internal Russian power groups share a similar perspective when it comes to America. “Have you seen the report on the visit of the Russian ambassador to NATO with members of Congress?” asked Pompowski. “Ambassador Rogozin met with Senators Kyl and Kirk on Tuesday or Thursday, and he called them ‘monsters of the Cold War.’”

Pompowski also spoke of the ersatz-Christian Norwegian terrorist, Anders Bhering  Breivik, who was allegedly trained earlier this year at a secret paramilitary field camp in Belarus (a former Soviet republic currently defended by the Russian military and used as a conduit for exporting crime, drugs, weapons – and perhaps even terrorists). Supposedly, Breivik visited Minsk last spring. “There is a discussion of Russian links with this tragedy in Norway,” said Pompowski. “The information is growing all the time.” Breivik’s code name within the Belarus KGB was allegedly “Viking,” though his connection to Russia is unproven, his praise for Putin and the Russian political system is coincident with his disgust for the soft, politically correct democracies of Western Europe and Scandinavia.

I asked Tomasz about the idea that somebody in Moscow has been pushing Right Wing extremism in Europe. “I am close to this theory,” Pompowski responded. “But you cannot find in this a homogeneous Russian goal. There is no one in control of the Russian state. It is a conglomerate of different states.” Of course, support for Slavic nationalism is nothing new, he explained.” They were behind the nationalism of Slobodan Milosevic in Serbia, for example. The Russians are involved in many manipulations, some of them established under Gorbachev or earlier.” According to Pompowski, the tendency of these manipulations is to destabilize the West, to bring higher energy prices and to foster extremism. The Russian military has indeed been fostering a movement in Europe, acknowledged Pompowski. “Unlike the militaries of the West, they had a department of military philosophy placed high up within the strategic command system. These people claimed to be Russian Orthodox, but the majority of the Russian Orthodox leadership had their origins within the KGB. Under the Soviet Union you had to get through the KGB to rise as a priest. Now these people are given a free hand, and are still involved in KGB strategies.”

I asked Pompowski about the release of an independent report on the tragic air crash that killed the Polish president last year as he traveled to mark the 60th anniversary the Katyn Forest massacre where thousands of Polish military officers were slaughtered by the Soviets in 1940. He described how Russian officials hindered Polish investigators of the air crash, denying them access to aircraft wreckage, onboard voice recordings and more. In summing up, Pompowski translated a line from Polish poet Zbigniew Herbert, which was used in the report, and which had to do with the Katyn massacre.

“And do not forgive
“And you are not entitled to forgive
“On behalf of those who are betrayed.”

Jeffrey Nyquist is the President of the Strategic Crisis Center and Distinguished Senior Fellow in Political Science at the Inter-American Institute for Philosophy, Government, and Social Thought.

This article was originally published on Financial Sense on August 1, 2011. The opinions published here are those of the writer and are not necessarily endorsed by the Institute.

The Grand Deception

Those who fear Russia are easily mocked. “The Russians Are Coming, the Russians Are Coming,” is on video. Watch it and laugh. Concern about communist subversion is also mocked. All you have to do is remember what a bad egg Joseph McCarthy was, if you remember at all. To allay any lingering doubt or fear, go to Russia and take the KGB tour. See all the rusting submarines and missile boats you want. You can even see rusty signs in front of Russia’s ABM radar at Sofrino.

If you subscribed to “National Review” when it was still under the influence of Whittaker Chambers and James Burnham, you may remember a completely different magazine than exists today. It’s funny how vigilance and a sense of danger can be turned into smug self-satisfaction over time.

Twenty years ago, a Russian KGB defector named Anatoliy Golitsyn went to see William F. Buckley, the editor of “National Review.” Golitsyn needed help on writing a book with the title “New Lies for Old.” It was about Russia’s strategy of faking the collapse of communism in Eastern Europe. As it happened, Buckley showed Golitsyn the door.

After the “patron saint of American conservatives” closed the door on the truth about communist strategy, few would have the courage to look back and say that Golitsyn was right. The changes in Eastern Europe have been deceptive, orchestrated and calculated from on high. The strategy has been to disarm the West and get communist bloc countries inside NATO – to subvert the alliance from within.

Consider the Czech Republic as an example. Having entered NATO, it is yet controlled by the old communists who are waiting for a signal from Moscow. That’s all it will take for them to reverse the changes that have taken place since 1989. Yesterday, I received a letter from a politically active Czech citizen, Hana Catalanova. “I know how hard this is to make people see,” she wrote. “You might think it is better over here … no, it is not!”

The big lie of 1989, the grand deception, was cynically calculated to take advantage of modern apathy and ignorance: “… we are actually living our lives in such lies, and people don’t care,” wrote Catalanova. “What about the next generation, our kids?”

Hana worries about freedom and the truth. Explaining how the communists retained control after the Velvet Revolution of 1989, she noted, “The problem here is that too many people were involved and engaged in shady deals with the secret police and corruption … betraying their friends, fellow workers, next door neighbors. And this is such a small country.”

America has a different excuse for turning its back on freedom and the truth. As I once told a leading Russian military defector who asked about America’s unpatriotic attitudes, “They’re too busy shopping and having fun.”

The Czechs have another problem. “In towns and villages everyone knows everyone,” explained Catalanova, “They are hiding their past behind the silence. They stay deaf to everything that doesn’t concern them, because if they speak up, somebody might tell who they were before. I can tell you, it is all very depressing.”

Hana Catalanova has written an important essay on the imprisonment of Captain Vladimir Hucin, a Czech official who has uncovered the truth about secret communist structures controlling important public institutions. “The whole world must know that communism is not dead,” wrote Catalanova. “It is very much alive and threatens to overthrow the world democracies.”

People here in America look around and wonder why the environmentalists are so strong, why business is under assault and rural property rights are no longer secure. They wonder why so many are teaching Marxist propaganda in schools and universities. Some of us cannot understand why our political leaders keep insisting on further military cutbacks as they continue to do business with the gangsters in Beijing and Moscow.

The short answer is: We’ve been subverted, infiltrated, duped and manipulated by communists and leftists. We have been too busy shopping and having fun to notice their “long march” through our institutions. We have been too absorbed in our careers and personal satisfactions. And now our country has its own hidden (or not so hidden) communist structures. As Russia and China prepare new missiles against us, our own state system allows itself to be unthinkingly nudged toward self-dissolution.

The danger is real, despite all the ridicule that comes to mind about “communists under every bush.” Have you talked to your daughter’s social studies teacher? Have you any idea where all this political correctness ultimately comes from?

If I joined the present chorus writing about shark attacks, the response to my column would be huge. But since I write about the advance of communism, about evidence that our Cold War enemy has been playing a trick on us, I get hardly any response at all. Americans have lost their sense of self preservation, their sense of history.

Do you really think that an enemy of more than four decades simply ran up the white flag because he couldn’t “pay the bills”?

Of course, that’s what you want to believe to keep your peace of mind. But this peace of mind is for fools. Give it up and get with the facts and testimony. The superficial reports on Russia, Chechnya, Eastern Europe and the collapse of communism are laced with falsehood and distortion. Such reports do not convey a real understanding of events.

French journalist Anne Nivat’s book on the Chechin war has recently been translated into English. It deserves to be widely read, though few will understand its importance. Nivat disguised herself as a Chechin refugee and watched events close up. Many of the Chechins she interviewed felt the war was a Kremlin puppet show. “I’m ashamed for Western Europe, where you live in a world of lies,” an elderly Chechin told Navat. “We are all victims, manipulated by the politicians in Moscow.”

The same could be said for America.

Jeffrey Nyquist is the President of the Strategic Crisis Center and Distinguished Senior Fellow in Political Science at the Inter-American Institute for Philosophy, Government, and Social Thought.

This article was originally published on Financial Sense on September 6, 2001. The opinions published here are those of the writer and are not necessarily endorsed by the Institute.

Sheep in Sheep’s Clothing

A curious discussion was started on the Website of the Inter-American Institute between the Russian geopolitical theorist Aleksandr Dugin and the Brazilian philosopher Olavo de Carvalho. In this discussion Mr. Dugin argues against global capitalism and the “New World Order.” He foresees the ultimate victory of Eurasian land power over American sea power. It is difficult to say whether Dugin’s rhetoric has real long-term importance or whether it will prove to be one of Moscow’s passing trial balloons. Whatever the case, Dugin’s ideas appear to justify a future war against the United States; furthermore, his promotion within the Russian establishment indicates an observable strategic tendency.

Dugin’s point of departure is simple: Western and Russian (or Eurasian) civilizations are incompatible. “The metaphysical basis of the West is individualism,” wrote Dugin. Russian civilization, on the other hand, stresses “a collective entity.” The collective entity in question is a Eurasian commonwealth, with its capital in Moscow. In Dugin’s view America is the champion of a hyper-materialistic ethic, based on radical individualism. It is subversive of traditional human values. As an empire of “frenetic consumption,” America threatens to remake the world in its own image. To prevent this, Dugin proposes an alliance between Russian/Chinese militarists and the Muslim Brotherhood. Appealing to the conservative sympathies of Professor de Carvalho and others, Dugin wrote: “every … traditionalist should be on the Eurasian and Islamic side against materialist and capitalist decline….” He believes that all conservatives and traditionalists should join with Moscow and the Islamists in smashing the Bilderberg Club, the Council on Foreign Relations and the Trilateral Commission.

Here we encounter a central theme of Moscow’s old (and new) rhetoric: Western civilization is a den of iniquity ruled by a wicked money power. Within Western civilization the Left already represents a movement against capitalism. Now it is time to bring the political Right into the anti-capitalist camp. Dugin therefore extends a hand of friendship to all conservatives and traditionalists. We have the same enemy, he explains. And that enemy should be attacked. The globalist project, says Dugin, “is far more powerful … [and] dangerous … than the two other projects [i.e., Russian/Chinese militarism and Islamism].” The merchants of the West, and the financial oligarchy they build, can only be stopped by a combination of Russian-Chinese “national-militarism” and “Islamic religious fundamentalism.” The choice is clear, says Dugin, “and everyone is invited to make it by himself.”

Furthermore, as Dugin points out, the emerging neo-socialist trend in Latin America suggests that a new bloc of countries will soon join Russia, China and the Islamists. As a Brazilian, Professor de Carvalho should know that South America isn’t really part of Western civilization at all. The Latin Americans are, by nature, opposed to the West’s money changers. Though Dugin does not pose as a Luddite, he nonetheless suggests (however indirectly) that the fundamental technology of civilization (i.e., the technology of money) must be smashed; and those who handle money (i.e., bankers) are vile. He does not acknowledge that money (together with fire and the wheel) is one of those inventions responsible for getting man out of the Stone Age. Instead, he says that the world will never accept “the absoluteness of the free market, human rights, liberalism, individualism and parliamentarian democracy.” Such ideals only signify the hegemony of the Western financial elite. Surely, Western conservatives cannot align themselves with corrupt money interests. And they cannot remain neutral, either. For the reality is, they must choose one side over the other. It is either Rome or Carthage. And for Dugin, U.S. global power represents “the eternal Carthage, which became a worldwide phenomenon.”

This theory, by the way, implies that America is doomed. In the end, sea power cannot cope with land power. The great wealth that comes to sea power is ultimately corrupting and vulnerable. Athens, as a sea power, was defeated by Sparta. Carthage, as a sea power, was defeated by Rome. In the end, the land power can become a sea power. Inevitably, Eurasia defeats Oceania. Russia and China form the whole of Eurasia, together with its “temporary” Islamist allies. What can the United States do against this great combination? The Americans cannot possibly “impose” individual freedom and the market economy on such a vast territory. The entire American project is therefore doomed, and will be squeezed out of existence in the end. As for those Americans who do not serve the greedy financial oligarchy of the free market system, Dugin says, “There may be another America, but that does not change anything in general.” America apart from the CFR and the neo-cons (i.e., “World Carthage”) is a nullity.

Dugin is incredulous regarding de Carvalho’s idea that the globalist elite “is not an enemy of Russia, China or the Islamic countries” but a collaborator with them in efforts to “destroy the sovereignty … and economy of the United States.” Because Dugin relies on a set formula for stigmatizing American policy-makers and their motives, he does not see the extent to which American leaders are themselves neo-socialists ready to hoist the banner of “holistic collectivism.”

In response, Professor de Carvalho noted the difference between Dugin’s mission and his own. “[Dugin’s] task is to recruit soldiers for the battle against the West and for the establishment of the universal Eurasian Empire. Mine is to attempt to understand the political situation of the world so that my readers and I are not reduced to the condition of blind men caught in the gunfire of the global combat….” To associate the globalist elite with America, argues de Carvalho, is an error. The globalist elite are following a course of their own, which does not coincide with American national interests. “I defend one-half of the West against the other half,” he says.

As a matter of course, de Carvalho’s claims that the Western financial elite has been working to establish its own worldwide socialist dictatorship, which is not to be confused with the dictatorship of Moscow or Beijing. The socialism put forward by the richest families in the West is a means for ensuring their ongoing influence – an effort to protect themselves against the ravages of free market competition. To prove his case, de Carvalho points to the work of Anthony Sutton. He also points to the “industrial blossoming of China … and its transfiguration … into the most powerful potential enemy of the USA….”

Here the question must be asked: What kind of brilliant scheme could entail the industrialization of China, and the arming of an implacable enemy? Setting aside Sutton’s misinterpretations of the data (where he completely fails to grasp the psychological realities of the capitalist milieu), the entire situation may be clarified by reference to a single fact: namely, the suicidal trajectory of the Western financial elite over the past half-century.  As James Burnham indicated long ago, liberalism is a philosophy leading to Western suicide. By industrializing and arming China, by rebuilding Russia’s position, by opening Europe to Islamic immigration, by adopting social policies which have collapsed Europe’s birth rate, we see the rush to suicide. What geniuses indeed! What leadership! Through intellectual superficiality, political shallowness, and arrogance, they cannot possibly hope to survive their own policies. If there is a plot to establish a universal socialist dictatorship the only people who stand a chance of establishing it are in Moscow and Beijing. I fail to see how Washington and London remain standing, let alone influential.

The pre-war propaganda of Alexander Dugin merely provides a rationale for destroying something that has essentially weakened and undermined itself over a period of decades. The course of self-undermining is not conspiratorial, in my view. Wealth and power, combined with an overly rationalistic intellectual culture, tend to produce a mild form of insanity within elite groups.  Russian, Chinese and Islamic leaders are not free from their own special forms of insanity. It is the large, deracinated, non-traditional, highly bureaucratic structures of modernity that contribute to such insanity, along with the shift away from a culture based on books and serious reading to a culture based on images, television and slogans. The intellect in all classes, among the most advanced societies, has been declining for decades. Stupidity may be added to insanity, the one amplifying the other.  This is the real New World Order. We have left behind the greatness of the past, setting aside the classics. The vaunted elite are merely sheep. Or as Winston Churchill once described a representative specimen: “A sheep in sheep’s clothing.”

Jeffrey Nyquist is the President of the Strategic Crisis Center and Distinguished Senior Fellow in Political Science at the Inter-American Institute for Philosophy, Government, and Social Thought.

This article was originally published on Financial Sense on May 5, 2011. The opinions published here are those of the writer and are not necessarily endorsed by the Institute.