Spain, Argentina to discuss move against UK

 

 

Source: Press TV

http://www.presstv.ir/detail/2013/08/12/318326/spain-argentina-to-talk-antiuk-move/

Spain may join Argentina in a diplomatic offensive against Britain over disputed territories, a report says.

Spanish Foreign minister Jose Manuel Garcia-Margallo is to discuss the issue with Argentinean authorities during a trip to Buenos Aires next month, according to a report published by Spanish newspaper El Pais on Sunday.

The report also said that the Spanish foreign ministry is considering taking its complaints over British-held territory Gibraltar to the United Nations Security Council or to its General Assembly.

Furthermore, Spain is looking into the option of denouncing Gibraltar to the International Court of Justice in The Hague for its “illegal occupation” of an area, called Isthmus, which connects the territory to the mainland. The land strip was not included in the 1713 Treaty of Utrecht.

Margallo is scheduled to meet Argentina’s Foreign Minister Hector Timerman, whose administration is also in a long-standing dispute with Britain over the sovereignty of Malvinas Islands.

Spain vowed on August 9 to take all necessary measures to defend its interest in Gibraltar, after reports revealed that Britain is set to send naval ships to the territory.

Tension between the two countries arose after authorities in Gibraltar dumped 70 blocks of concrete in waters close the territory’s coast in mid-July, aimed at creating an artificial reef.

However, Spain denounced the action, saying the blocks had been dumped “without any type of authorization and breaking several environmental norms.”

In addition, Madrid said the concrete blocks seriously damaged the fishery, making it impossible for Spanish fishing boats to work in the area.

Gibraltar is one of the British Overseas Territories, which is on the United Nations list of areas waiting decolonisation.

The British territory was seized from Spain in 1713 and remains a bone of contention between the two European countries.


 

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Japan posts another record trade deficit

 

(Reuters / Toru Hanai)

Source: Russia Today

http://rt.com/business/news/japan-trade-deficit-record-219/

Japan has seen its worst trade deficit for October in over 30 years, renewing September’s record, with dropping exports to China due to the territorial dispute, and easing demand from debt-stricken Europe.

The government data showed that a 549 billion yen ($6.7 billion) visible trade deficit in October far exceeded the 360 billion yen shortfall expected by economists surveyed by Dow Jones Newswires and the Nikkei. This year, Japan posted trade deficits every month except February and June.

Overall, exports fell 6.5% year on year in October to 5.15 trillion yen. Total exports to China were down 11.6% year on year, compared with a 14.1% drop in September due to the growing anti-Japanese sentiment. Exports of automobiles to China were down 82% year on year, and exports of car parts were off 28.1%. The shortfall in car exports to China was the largest since October 2001, according to Japan’s Ministry of Finance.

The territorial dispute with China that sparked anti-Japanese riots in September re-emerged after the Japanese government bought a group of islands that China also claims.

Meanwhile, exports to the European Union dropped 20.1% year on year according to the data. But exports to the US were up 3.1%, supported by a rise in supplies of cars, engines and car parts.

Weaker exports have hit Japanese corporate majors such as Sharp, Panasonic, and Nissan, which heavily rely on foreign trade. Panasonic forecast a $9.5bln loss this year, 30 times bigger than analyst estimates, while Hitachi Construction Machinery Co. and Nissan Motor Co. cut their full-year profit forecasts.

Experts say Japan’s economy would experience its fifth technical recession in 15 years as it is expecting a fall in October-December, after dropping by 3.5% in Q3, which is below analysts’ expectations.

On Tuesday the Bank of Japan announced it has no plans for further stimulus measures, but experts suppose that weak figures would force them to change their mind. "With weak trade data, and likely a weak result to the BOJ's December Tankan survey, the BOJ could very probably ease in December," said Daiwa Securities senior economist Maiko Noguchi.

 

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China and Russia are Acquiring Gold Dumping US Dollars

 

By: Prof. Michel Chossudovsky

Source: Global Research

http://www.globalresearch.ca/central-banks-are-acquiring-gold-dumping-us-dollars/22672

There is evidence that central banks in several regions of the World are building up their gold reserves. What is published are the official purchases.

A large part of these Central Bank purchases of gold bullion are not disclosed. They are undertaken through third party contracting companies, with utmost discretion.

US dollar holdings and US dollar denominated debt instruments are in effect being traded in for gold, which in turn puts pressure on the US dollar.

In turn, both China and Russia have boosted domestic production of gold, a large share of which is being purchased by their central banks:

It has long been assumed that China is surreptitiously building up its gold reserves through buying local production. Russia is another major gold miner where the Central bank has been purchasing gold from another state entity, Gokhran, which is the marketing arm and central repository for the country’s mined gold production. Now it has been reported by Bloomberg that the Venezuelan Central Bank director, Jose Khan, has said that country will boost its gold reserves through purchasing more than half the gold produced from its rapidly growing domestic gold mining industry.

In Russia, for example, Gokhran sold some 30 tonnes of gold to the Central Bank in an internal accounting exercise late last year. In part, so it was said at the time, the direct sale was made rather than placing the metal on the open market and perhaps adversely affecting the gold price.

China is currently the world’s largest gold producer and last year it confirmed it had raised its own Central Bank gold holdings by more than 450 tones over the previous six years. Mineweb.com – The world’s premier mining and mining investment website Venezuela taking own gold production into Central Bank reserves – GOLD NEWS | Mineweb

The 450 tons figure corresponds to an increase in the gold reserves of the central bank from 600 tons in 2003 to 1054 tons in 2009. If we go by official statements, China’s gold reserves are increasing by approximately 10 percent per annum.

China has risen to now be the largest gold producing nation in the world at around 270 tonnes. The amount bought in by the government initially looks like 90 tonnes per annum or just under, 2 tonnes a week. Before 2003 the announcement by the Chinese central bank that gold reserves had been doubled to 600 tonnes, accounted for similar purchases before that date. Why so small an amount you may well ask? We think local and national issues clouded the central bank’s view as it was the government that bought the gold since 2003 and have now placed it on the central bank’s Balance Sheet. So we would conclude that the government has ensured central bank gold purchasing must continue. “How will Chinese Central Bank Gold Buying affect the Gold Price short & Long-Term?” by Julian Phillips. FSO Editorial 05/07/2009

Russia

Russia’s Central bank holdings are in excess of 20 million troy ounces (January 2010)

 

Russia’s Central Bank reserves have increased markedly in recent years. The RCB reported in May 2010 purchasing 34.2 tons of gold in a single month. Russian Central Bank Gold Purchases Soar In May – China Too? | The Daily Gold

The diagram below shows a significant increase in monthly purchases by the the RCB since June 2009.

 

Central Banks in the Middle East are also building up their gold reserves, while reducing their dollar forex holding.

Gold reserves of GCC states is less than 5 percent:

Dubai International Financial Centre Authority economists released a report yesterday calling for local countries to build gold reserves, according to The National.

Despite a high interest in gold, GCC states maintain less than 5 percent of their total reserves in gold. Compared to the ECB, which holds 25 percent of reserves in gold, that leaves a lot of room for growth. http://www.businessinsider.com/gcc-boost-gold-holdings-2010-12#ixzz18FEqpTy3

GCC states should boost their foreign reserve holdings of gold to help shield their billions of dollars of assets from turbulence in global currency markets, say economists at the Dubai International Financial Centre Authority (DIFCA).

Diversifying more of their reserves from US dollars to the yellow metal would help to offer central banks in the region higher investment returns, said Dr Nasser Saidi, the chief economist of DIFCA, and Dr Fabio Scacciavillani, the director of macroeconomics and statistics at the authority.

“When you have a great deal of economic uncertainty, going into paper assets, whatever they may be – stocks, bonds, other types of equity – is not attractive,” said Dr Saidi. “That makes gold more attractive.”

Declines in the dollar during recent months have dented the value of GCC oil revenues, which are predominantly weighted in the greenback. GCC urged to boost gold reserves

According to a report in People`s Daily;

The latest rankings of gold reserves show that, as of mid-December, the United States remains the top country and the Chinese mainland is ranked sixth with 1,054 tons of reserves, the World Gold Council announced recently.

Russia climbed to eighth place because its gold reserves increased by 167.5 tons since December 2009. The top ten in 2010 remains the same compared to the rankings of the same period of last year. And Saudi Arabia squeezed to the top 20.

Developing countries and regions, including Saudi Arabia and South Africa, have become the main force driving the gold reserve increase. … .

The International Monetary Fund (IMF) and the European central bank are the major gold sellers, and the IMF’s gold reserves decreased by 158.6 tons. (China’s gold reserves rank 6th worldwide – People’s Daily Online

It should be understood that actual purchases of physical gold are not the only factor in explaining the movement of gold prices. The gold market is marked by organized speculation by large scale financial institutions.

The gold market is characterised by numerous paper instruments, gold index funds, gold certificates, OTC gold derivatives (including options, swaps and forwards), which play a strong role, particularly in short-term movement of gold prices. The recent increase and subsequent decline of gold prices are the result of manipulation by powerful financial actors.

 

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Japan in doldrums as export shrinks

 

(AFP Photo / Yoshikazu Tsuno)

Source: Russia Today

http://rt.com/business/news/japan-economy-debt-contraction-490/

While investors are focused on the eurozone crisis Japan’s economy is showing signs of contraction as its GDP fell last quarter by 3.5%, the most since the earthquake and tsunami in early 2011, while exports and consumer spending slumped.

­The results fell below analysts’ expectations, which predicted Japan’s GDP to decline 3.4 % in the Q3, according to a Bloomberg News survey last week. It was expected to be the third technical recession since 2008.

“The GDP figures were grim," Japanese PM Yoshihiko Noda told parliament after the data was released. Noda is preparing for an election and has pledged to speed up government efforts to boost the economy. Weaker results could undermine his efforts including a crucial plan to raise the national sales tax from 2014 to boost revenues. The proposed measure would be the first tax rise in more than a decade and is considered politically controversial.

“Today’s bad economic numbers deliver unpleasant news for Noda,” Hiroshi Shiraishi, senior economist at BNP Paribas SA in Tokyo, told Bloomberg. “It will take a while for Japan to get back to a sound recovery, considering a modest pick-up in the global economy at best and the country’s damaged relationship with China.”

Japan suffered the worst September trade result in more than 30 years amid the territorial row with China. The long running dispute re-emerged after the Noda administration’s bought a group of islands that China also claims. Exports to China – Japan’s biggest trading partner – sank 14% from a year earlier to 953.4 billion yen ($12.2 billion). Meanwhile the spreading crisis in Europe also hurt Japanese exports.

Weaker exports have hit Japanese corporate majors such as Sharp, Panasonic, and Nissan, which heavily rely on foreign trade. Panasonic forecast a $9.5bln loss this year, 30 times bigger than analyst estimates, while Hitachi Construction Machinery Co. and Nissan Motor Co. cut their full- year profit forecasts and cosmetics major Shiseido Co. plans spending cuts.

At the end of October the Bank of Japan expanded its asset-purchase program by 11 trillion yen ($137bln) to 91 trillion yen for the second time in two months. With the new weak figures the BoJ is likely to continue its supporting policy under political pressure, experts believe.

High debt burden is another problem of the Japanese economy. Earlier this year the US-based Fitch rating agency cut Japan's Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs) to 'A+' from 'AA' and 'AA-' respectively. The move reflects “growing risks for Japan's sovereign credit profile as a result of high and rising public debt ratios,” according to Andrew Colquhoun, Head of Asia-Pacific Sovereigns at Fitch.

Japan's general government debt is expected to hit 239% of GDP by the end of 2012, compared to the average 39% for OECD economies and 8% for 'A' –rated economies. Even Greece has a debt of 178% of GDP. This debt ratio has risen by 61% since the global financial crisis broke out.

However, Fitch considers that broader private sector savings, official foreign reserves worth $1.3 trillion and the fact that the Japanese yen is a global reserve currency will help the country’s economy to stay firm.

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Financial Turbulence: New Downturn in the Global Economy

 

By: Nick Beams

Source: Global Research
http://www.globalresearch.ca/financial-turbulence-new-downturn-in-the-global-economy/5309872

There are increasing signs that the global economy is about to enter a new period of financial turbulence, coupled with deepening recession in a growing number of countries.

In the immediate aftermath of the global economic breakdown that began in 2008, set off by the collapse of the US investment bank Lehman Brothers, governments around the world took on increased debt as they made available trillions of dollars to prevent a complete collapse of the financial system. Meetings of the Group of 20 were dominated by pledges there would be no return to the conditions of the 1930s and assurances that the lessons of history had been learned.

The writings of John Maynard Keynes, the British economist of the 1930s who advocated increased government spending to counter depressions, were suddenly back in vogue. But a sharp turn came in June 2010, when a meeting of the G20 initiated a turn to austerity, emphasising the necessity to impose “fiscal consolidation.” The essence of this program was to claw back the money given to the banks through massive cutbacks to government spending, especially on social services.

However, this program brought a contraction in economic growth leading to decreased profit opportunities for major corporations. Faced with this situation, the US Federal Reserve initiated a policy of “quantitative easing”—the provision of unlimited supplies of money to banks and financial institutions. Central banks around the world cut interest rates to record lows and followed that up with their own versions of quantitative easing (QE). Under conditions of a stagnant real economy, these measures were aimed at boosting the value of financial assets, thereby providing a new avenue for finance houses to realise speculative profits.

While the QE program and its equivalents have been touted as a means of preventing a slide into global recession—US Fed Chairman Ben Bernanke claimed the recently enacted QE3 program was motivated by continuing high unemployment—they have done virtually nothing to boost the real economy. Their only significant impact has been to increase profits through financial manipulation, with the ultra-cheap money provided by the central banks.

But now there are signs that a new stage in the global breakdown is underway, marked by growing recessionary trends, as the impact of the central bankers’ program wanes.

Share prices in the US, which had been lifted by the QE program, have started to fall as companies report a downturn in sales and profits amid announcements of further job cuts. This week American companies pointed to weakening global demand and the fears generated by the continuing financial crisis in Europe.

Dow Chemical announced it would axe 2,400 jobs, 5 percent of its global workforce. It also said it would shut 20 plants and cut capital spending by $500 million, citing a “slow-growth environment in the near term.” DuPont, the largest US chemical group, announced 1,500 layoffs and a loss for the third quarter. It pointed to a sharp drop in sales to the Asia-Pacific region, where volumes were down 10 percent compared to a year ago, dealing a blow to claims that so-called “emerging markets” would provide an alternative source of global demand.

Overall, US corporate profits and earnings are expected to fall for the first time since 2009. The latest data on the US economy show that gross domestic product (GDP) grew at an annual rate of only 2 percent in the third quarter, well below that required to maintain employment levels. Were it not for the effect of an increase in defence spending, the figure would have been significantly under market expectations.

The most significant feature of the US GDP data was investment spending. Its continuing decline reduced the overall growth figure by 0.1 percentage points for the quarter, while imports and exports both fell, taking off 0.2 percentage points.

While the central bankers will continue to pump money into financial markets, these measures will do nothing to turn the situation around. This week, in a major speech, the governor of the Bank of England, Mervyn King, noted that every increase in the money supply had a declining impact on the real economy.

His warnings are confirmed by historical trends. Writing in the Financial Times, financial analyst Satyajit Das pointed out that between 2001 and 2008, borrowing against the rising value of houses contributed about half the growth in the US. “But ever increasing borrowings are needed to sustain growth. By 2008, $4 to $5 of debt was required to create $1 of US growth, up from $1 to $2 in the 1950s. China now needs $6 to $8 of credit to generate $1 of growth, an increase from around $1 to $2 15-20 years ago.”

At the meetings of the G20 in 2009, government leaders insisted there would be no return to the protectionist measures of the 1930s which had such a devastating impact on world trade. But the QE program is producing a twenty-first century version of the beggar-thy-neighbour policies of the Great Depression. The flood of money from the US Federal Reserve has pushed down the value of the US dollar, hitting the export markets of its competitors and leading to the development of “currency wars” as they try to maintain their position.

Furthermore, the boosting of financial assets under conditions of slowing economic growth threatens to replicate the conditions that sparked the 2008 collapse on an even broader scale. This is because, unlike the situation four years ago, the central banks themselves are now heavily involved in financial markets and stand to lose massive amounts in a market collapse.

The central bankers and capitalist politicians claim that while their actions may not have promoted growth, they have at least averted a return to the conditions of the 1930s. These claims are belied by the conditions in Spain and Greece, where unemployment is already at 1930s levels.

Moreover, when viewed from an historical perspective, their self-congratulations are somewhat premature. The Great Depression came after a decade of financial and economic turbulence set off by the breakdown of global capitalism that began with the outbreak of World War I in 1914.

This time around, the capitalist breakdown began with a financial crisis that has now set in motion a deepening contraction in world economy.

Like their counterparts in an earlier period, the ruling elites have no response to the historic crisis of the profit system other than a social counterrevolution against the working class, militarism, and the imposition of dictatorial forms of rule.

Far from ending, the global economic crisis is only just beginning. The working class must respond by developing its own independent program based on an intransigent political struggle for the overthrow of the bankrupt capitalist profit system and the bringing of the banks and major corporations under public ownership in order to establish a planned world socialist economy.

Nick Beams

 

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Iran threatens to stop oil exports, considers anti-Europe sanctions

 

A general view of Iran's first offshore oil platform, Iran-Alborz, in the Caspian Sea near city of Neka about 392 km (245 miles) north of Tehran (Reuters/Official website of the Iranian Oil Ministry)

Source: Russia Today

http://rt.com/news/iran-stop-oil-export-sanctions-072/

Iran warns that it could stop exporting oil, driving global crude prices up, should the US and allied Europe tighten sanctions further. For such a case, Tehran says, it has a contingency strategy to carry on without oil revenues.

­“If you continue to add to the sanctions, we will stop our oil exports to the world,” Iranian Oil Minister Rostam Qasemi told reporters Tuesday. “The lack of Iranian oil in the market would drastically add to the price.”

Iran is currently under pressure from international sanctions, mainly in oil exports, imposed by the UN Security Council, the US and the EU in order to curb the Islamic Republic’s controversial nuclear program. Washington and some if its allies believe the program is being used to develop a nuclear weapon.

On October 15, the European Union foreign ministers approved a new package of sanctions targeting Iran’s financial, trade, energy, transportation and telecommunications sectors.

Earlier in October, American lawmakers also extended the already tough sanctions against Iran.

The measures have severely hurt the Islamic Republic’s economy.

However, Qasemi said that Iran has a “Plan B” which will enable the country to make due without profits from oil sales. He did not mention how long the economy could function, though, without selling oil.

Iran is still pumping oil at capacity and producing 4 million barrels per day (bpd), Qasemi said, denying OPEC’s report that the country's output has fallen to around 2.7 million bpd. He added that "Iran has been facing US sanctions for 30 years while successfully managing its oil sector."

Iranian Parliament considers sanctions on Europe

­Angered by a new round of sanctions, Iranian lawmakers are working on a “preemptive embargo package” which would hit European states, Press TV reported.

Officials plan to impose sanctions in three phases.

The first will deprive Iran’s enemies of its high-quality light and heavy crude oil. According to the report, 70 European oil-refining plants depend on Iranian oil.

The second phase is a ban on goods transported from European states that participated in imposing the sanctions against Tehran.

And the third would prohibit Iranian citizens from traveling to hostile countries.

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Wide trade deficit hits Japan

 

Massive protests across China and attacks on Japanese companies and factories prompted Tokyo to shut down its auto business in China temporarily in September

Source: Press TV

http://www.presstv.ir/detail/2012/10/22/268093/wide-trade-deficit-hits-japan/

Officials in the world’s third economic heavy-weight, Japan, have announced that a wide trade deficit hit the country in September amid the global economic slowdown and the state’s territorial row with its longtime trade partner China.

Japan's monthly trade deficit was USD 7 billion and bigger than a deficit of about USD 3.7 billion a year earlier, the Japanese Finance Ministry said on Monday.

The deficit for September was the worst figure in more than 30 years for Japan, as demand for Japanese products, including chemicals, cars, medical products and computer parts reduced.

Overall exports in September totaled USD 68.7 billion with a more-than-10-percent fall.

The imports also rose 4 percent from a year earlier to USD 75.9 billion, particularly for additional oil and other fuels needed for power generation following the nuclear reactors’ shutdown across the country.

The territorial dispute with China led to a 14-percent decline in China’s demand for Japanese cars and other products as well.

Massive protests across China and attacks on Japanese companies and factories prompted Tokyo to shut down its auto business in China temporarily in September following a refreshed row between the two states over disputed islands.

Tensions heightened between Tokyo and Beijing after Japan signed a deal on September 11 to buy three of the disputed islands in the East China Sea from their private Japanese owner in line with plans to nationalize the archipelago

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EU bans import of Iranian gas to European countries – German FM

 

Nouri Petrochemical facilities of the South Pars gas field in the southern Iranian port of Assaluyeh (AFP Photo / Atta Kenare)

Source: Press TV

http://rt.com/news/eu-ban-iran-gas-479/

EU governments have agreed to one of the toughest sets of sanctions against Iran's nuclear program. German Foreign Minister Guido Westerwelle has announced the EU is banning the import of Iranian natural gas into European Union countries.

The set of sanctions also includes a ban on financial transactions between European and Iranian banks, with some exceptions for those involving humanitarian aid, food, and medicine purchases.

"The [EU] Council has agreed additional restrictive measures in the financial, trade, energy and transport sectors, as well as additional designations, notably of entities active in the oil and gas industry," a written statement issued by the European Union council said.

Further export restrictions were imposed on graphite, metals, and software for industrial processes. Restrictive measures were also made relating to Iran's ship building industry.

The move is aimed at putting pressure on Iran to cooperate in talks regarding its nuclear program.

Prior to Monday’s meeting of EU foreign ministers in Luxembourg, British Foreign Secretary William Hague said new sanctions would be"a sign of our resolve in the European Union that we will step up the pressure."

The US and its allies have long accused Iran of using its nuclear program to develop atomic weapons, although Tehran says the program is solely for peaceful purposes.

 

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Euro collapse can ignite war in Europe

 

Source: Press TV

http://www.presstv.ir/detail/2012/10/15/266753/euro-collapse-can-ignite-war-in-europe/

British Business Secretary Vince Cable says the collapse of the European single currency has the potential to plunge the continent into war.

The senior Liberal Democrat told an event at the Cheltenham Literature Festival entitled “Austerity, the euro and us”, there is no “automatic guarantee” that a military conflict will not break out in Europe as the consequences of the collapse of the euro are “incalculable.”

“I think we need to take stock that if the eurozone were to unravel in a way that destroyed the European project - and there is a risk that could happen - the consequences would be absolutely incalculable,” Cable warned.

He also pointed to the controversial awarding of this year’s Nobel peace Prize to the European Union last week saying the single currency was introduced to bring nations together against extreme nationalism and a subsequent conflict as was the case in the Second World War.

“We tend to forget, until we were reminded last week of that Nobel Prize, the European project was constructed in order to rescue Europe from extreme nationalism and conflict. There is no automatic guarantee that won’t return,” he said

 

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EU set to impose new anti-Iran bans despite UN warning

 

The EU sanctions against Iran come despite a UN warning against the humanitarian upshots of the bans.

Source: Press TV

http://www.presstv.ir/detail/2012/10/13/266418/eu-to-impose-new-embargoes-on-iran/

The European Union has provisionally approved new embargoes against Iran over its nuclear energy program, despite a UN warning against the humanitarian repercussions of the sanctions already in place.

The Friday motion will have to be formally ratified on Monday at an EU foreign ministers' session in Luxembourg before coming to effect.

According to EU diplomats, the new measures target Tehran’s banking sector, industry and shipping.

The new embargoes will oblige European traders to obtain the authorizations of their respective governments prior to financing any permitted business transaction with Iran.

The bloc will also ban its member states from selling metals and graphites, a steel component, to Iran and providing the country with ship manufacturing know-how, oil-storage technology as well as flagging and classification services to Iranian tankers.

Based on the new motion, the EU will also freeze the assets of 34 Iranian companies.

The bloc’s new move comes in defiance of the UN chief’s recent remarks about the humanitarian ramifications of the previously-imposed embargoes. Ban Ki-moon warned on October 5 that the West’s sanctions have mainly targeted the livelihood of the ordinary Iranian population.

On Wednesday, Leader of the Islamic Revolution Ayatollah Seyyed Ali Khamenei described the West’s embargoes as “illogical” and “barbaric.”

This is while the Norwegian Nobel Prize Committee awarded its 2012 Peace Prize to the EU on Friday.

Following the West’s embargoes on Iran’s banking, the imports of more than fifty kinds of badly needed medicine for people who suffer from certain diseases such as children’s cancer, thalassemia, multiple sclerosis (MS), and respiratory and heart diseases, have declined drastically.

 

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Obama signs order implementing tougher sanctions on Iran

 

Source: Press TV

http://www.presstv.ir/usdetail/266035.html

President Obama on Tuesday signed an executive order tightening sanctions on Iran over its nuclear-enrichment program. The order implements a new Iran sanctions law enacted in August.

The White House said the administration’s actions “have created unprecedented pressure on Iran’s economy.”

Iran policy has become a focus of the presidential election this year. During a speech Monday at the Virginia Military Institute in Lexington, Va., GOP candidate Mitt Romney repeated accusations that Obama is too soft on Iran and too distant from Israel, which views Iran’s nuclear program as a threat to its existence.

Romney has called on Obama to draw a clearer red line for Iran. Critics of this view warn that it could bind the U.S. and force an armed intervention.

The Iran Threat Reduction and Syria Human Rights Act expands the list of those targeted by Iran sanctions, closes loopholes and enhances penalties.

Those targeted include anyone who works in Iran's petroleum sectors or provides goods, services, infrastructure, or technology to Iran's oil and natural gas sector, those who insure or re-insure investments in Iran's oil sector and those who transport refined petroleum to Iran.

This law also tries to stop Iran from repatriating revenue from oil. The Hill

FACTS & FIGURES

The United States has long barred U.S. firms from doing business with Iran, but last December adopted measures that forced international buyers of Iranian oil to cut their purchases. Economic Times

In August, a second package of sanctions added further restrictions for international banks, insurance companies and oil traders. Economic Times

The United States and Israel accuse Iran of having a secret nuclear weapons program and have threatened the country with military action.

Iran insists that its nuclear energy program pursues peaceful purposes only and has warned that it will harshly respond to any foreign attack. Iranian officials say they will reply to U.S. aggression by bombing all American bases throughout the Middle East.

A recent report by the Iran Project, a group of U.S. diplomats and military officials, concluded that U.S. strikes would provoke a war that would last years and cost the U.S. at the very least hundreds of billions of dollars per year.

Iran, as a signatory to the nuclear Non-Proliferation Treaty and a member of the International Atomic Energy Agency, says the nation is entitled to develop nuclear technology for civilian use.

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US sets steep duties on Chinese solar panels

 

Source: Press TV

http://www.presstv.ir/usdetail/266053.html

China demanded Thursday that Washington repeal steep tariffs on solar panels that Chinese producers fear will shut their equipment out of the American market.

The tariffs upheld Wednesday by the U.S. Commerce Department add to financial pressure on struggling Chinese solar panel manufacturers that are suffering heavy losses due to weak demand and a price-cutting war.

"The United States is inciting trade friction in new energy and sending a negative signal to the whole world about protectionism and obstructing the development of new energy development," Ministry of Commerce spokesman Shen Danyang said in a statement. It gave no indication whether Beijing might retaliate.

"We hope the U.S. side will correct its erroneous action with early termination of the trade remedy measures," Shen said.

The dispute highlights tensions over whether China's government-dominated economy should be treated as a free market. Beijing has pressed the United States and Europe to officially grant such status, which would make it harder to bring some dumping and other complaints, but none of its major trading partners has agreed.

Beijing launched its own probe last November into whether U.S. government support for producers of wind, solar and other renewable energy technology is an improper trade barrier.

In August, the Commerce Ministry ruled that U.S. support for six clean energy projects violated free trade rules and called on Washington to stop but made no mention of possible penalties. Businessweek

FACTS & FIGURES

On Monday, October 8, the U.S. House Intelligence Committee warned that China's two leading technology firms pose a major security threat to the United States. Financial Review

The panel says regulators should block mergers and acquisitions in the U.S. by Huawei Technologies and ZTE Corp. It also advises that U.S. government systems not include equipment from the two firms, and that private U.S. companies avoid business with them. Financial Review

The U.S. is in the midst of a deep economic crisis. Devoid of any real solutions to put forward, U.S. politicians are instead looking for a scapegoat which these days happens to be China. The National

U.S. politicians are largely declaring "China is cheating" and engaging in "rogue practices." With no end in sight for the U.S.' economic malaise, the anti-China protectionist sentiment is likely to continue and spread into other sectors, especially as next year's presidential elections come closer. The National

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Panetta threatens 'most serious sanctions' against Iran

 

US Defense Secretary Leon Panetta (file photo)

Source: Press TV

http://www.presstv.ir/detail/2012/10/07/265346/us-threatens-iran-with-fresh-sanctions/

US Defense Secretary Leon Panetta has threatened Iran with new, stronger economic sanctions over the Islamic Republic’s nuclear energy program.

Speaking at a media conference in Peru on Saturday, Panetta said Washington and its allies have reached an agreement “to impose probably the most serious sanctions, economic sanctions, that have been imposed on a nation.”

He said Iran should engage with the international community to try to resolve the West's standoff with the country and address their alleged concerns or face additional sanctions.

Panetta said the US and its allies are united in their efforts to stop Tehran’s uranium enrichment activities.

Washington’s sanction threats against Tehran are escalating despite the UN warning against the humanitarian ramifications of the embargoes.

On Friday, UN Secretary General Ban Ki-moon warned that the West’s embargoes against Iran have significantly targeted the livelihood of the ordinary Iranian population and led to shortage of necessary items, including medicine.

At the beginning of 2012, the United States and the European Union imposed new sanctions on Iran’s oil and financial sectors with the goal of preventing other countries from purchasing Iranian oil and conducting transactions with the Central Bank of Iran.

The sanctions came into force in early summer 2012.

The illegal US-engineered sanctions were imposed based on the unfounded accusation that Iran is pursuing non-civilian objectives in its nuclear energy program.

Iran rejects the allegations, arguing that as a committed signatory to the nuclear Non-Proliferation Treaty (NPT) and a member of the International Atomic Energy Agency (IAEA), it has the right to use nuclear technology for peaceful purposes.

In addition, the IAEA has conducted numerous inspections of Iran's nuclear facilities but has never found any evidence showing that Iran's civilian nuclear program has been diverted to nuclear weapons production.

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UK we want Iran sanctions to hit people

 

Source: Press TV

http://www.presstv.ir/detail/2012/10/07/265364/uk-we-want-iran-sanctions-to-hit-people/

The British Defense Secretary has acknowledged that the western sanctions on Iran are targeted at the livelihood of the ordinary people, which he said are necessary so that Tehran feels an “existential threat” from economic pressure and ends its nuclear activities.

“We can definitely make the pain much greater. Nobody wants to cause the Iranian people to suffer unnecessarily but this mad scheme to build a bomb has to be brought to an end,” Philip Hammond told the Guardian.

“The only thing that is likely to budge the government from its nuclear position is if they see or sense an existential threat. If the level of economic pressure starts to translate into potentially [government]-threatening disruption and dissent on the streets of Tehran, then they may change course,” he added.

Hammond did mention Iranians’ repeated explanation that “they’re enriching uranium for peaceful purposes,” but he blatantly claimed, “Nobody believes them.”

This comes as there are more grounds to believe Hammond is lying rather than Tehran as the latter is pursuing all its nuclear activities under the close inspection of the International Atomic Energy Agency (IAEA) and that the agency has never offered any evidence on a deviation in Iran’s civilian nuclear activities.

Iran says its nuclear energy program is totally civilian and aimed at power generation adding it needs the 20-percent-enriched uranium it produces for production of fuel for a reactor that produces medicine for cancer and other patients.

His comments come ahead of the Conservative party annual conference and a meeting of EU ministers on October 15, when Britain, France and Germany are expected to push for more sanctions against Iran.

“There is talk of a general trade embargo and of shutting down the remaining access that Iran has to international banking channels,” Hammond said.

Iranian officials have long condemned the US and EU unilateral sanctions on the country as an “economic war” targeted at the people; a war commentators believe would further unify Iranians against their enemies.

UN Secretary General Ban Ki-moon has also condemned the western embargoes saying they have affected people’s livelihood and impeded patient’s access to much needed medicine.

“The sanctions imposed on the Islamic Republic of Iran have had significant effects on the general population, including an escalation in inflation, a rise in commodities and energy costs, an increase in the rate of unemployment and a shortage of necessary items, including medicine," Ban said in a report to the UN General Assembly on Friday.

Iran has in the past described the Western propaganda storm against its nuclear energy program as a political game against a democracy Westerners cannot tolerate.

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Financial Warfare: Destabilizing Iran’s Monetary System

By: Nile Bowie

Source: Global Research

http://www.globalresearch.ca/financial-warfare-destabilizing-irans-monetary-system/

Dramatic fluctuations of the Iranian rial triggered small protests among merchants in Tehran’s grand bazaar on October 3rd, 2012. In an attempt by authorities to prevent further devaluation, Iran’s central bank recently issued new limits on the amount of USD available for purchase at a subsidized rate, leading many to panic as the rial fell 40% against the dollar since the start of October. Although the demonstrations were economic in nature, many took advantage of the moment to voice their grievances against the political system, with many crediting President Ahmadinejad with overseeing fiscal mismanagement that has exacerbated Washington’s unceasing barrage of economic sanctions. Ahmadinejad’s political opponents also blame his administration for economic mismanagement, sentiment that is appearing more frequently among Iranian society.

While combating the challenges that economic sanctions represent is an arduous task for any government, it is important to recognize that these sanctions are not aimed against Iran’s government, but at its poor and merchant population. An unnamed US intelligence source cited by the Washington Postclaims:

”In addition to the direct pressure sanctions exert on the regime’s ability to finance its priorities, another option here is that they will create hate and discontent at the street level so that the Iranian leaders realize that they need to change their ways.”

Washington has long engaged in psychological operations that aim to foment the kind of “hate and discontent” among Iran’s factory workers, merchants, shopkeepers, students, and manufacturers – as part of a series of measures taken to coax widespread social discontent and unrest throughout the country to topple the government.

For the average Iranian business owner and worker, US-led sanctions and currency devaluation have affected everyday transactions that provide paychecks and economic viability for millions of people. From urban shopkeepers to rural restaurant owners, many have been forced to close their businesses because they are unable profit from reselling imported goods purchased with dollars. Isolation from the global banking system has made it increasingly more difficult for Iranian students studying abroad to receive money from their families. Sanctions targeting Iran’s central bank aim to devastate the Iranian export economy, affecting everyone from oil exporters to carpet weavers and pistachio cultivators. By crippling people’s livelihoods and hindering their ability to pursue education and afford necessities such as food and medication, the Obama administration believes such measures will erode public confidence in the government and challenge its legitimacy.

Such policy is not only immoral, but exhibits the fraudulence and dishonesty of the United States toward the values of liberty and the pursuit of happiness it claims to represent. Although western media has gone to great lengths to depict Obama as being reluctant to endorse a tough stance on Iran, it is clear that Washington is quietly pursuing belligerent policy against Tehran – one that has alienated Iranians that seek reconciliation with the United States and greatly escalated tensions and the possibility of war. As demonstrated by the covert measures being taken against Tehran – including sabotage, cyber warfare, and targeted assassinations – Washington is fully committed to preventing Tehran’s independent technological, economic and political development. While US-led sanctions are intended to target all mechanisms necessary for international oil transactions, Iran continues to show defiance by pursuing diplomacy and mutually beneficial economic development with its energy hungry allies across Asia.

China has continued to purchase larger amounts of Iranian oil despite the sanctions regime. While the fledging European Union cuts its ties with Tehran, Beijing has moved closer with Iran to provide credit lines and consumer goods. Additionally, nations such as India, Malaysia and Japan have continued their energy imports from Iran – making efforts to internationally isolate Tehran increasing more difficult. Iran has actively engaged in the modernization of its energy infrastructure, including the construction of fifteen domestic pipelines throughout the country. Furthermore, Iranian firms are planning to construct an electrical power plant and a pipeline to provide energy to Pakistan. In the interest of pursuing mutually beneficially economic development, Tehran has sought further cooperation with its neighbors in Pakistan and Turkmenistan. Iran’s domestic investments emphasize the importance of developing the kind of trade and energy infrastructure needed to continue resistance to hegemony without being internationally isolated.

Tehran has pledged $25 billion to develop its Chabahar port, and an additional $4 billion of investment into several different ports around the country. The expanded trade and energy capabilities that would result from such investment would solidify Iran’s place in the global economy, and its seat among world powers. It is for this reason that “the threat of Iran developing nuclear weapons” is used as a stale pretext to enforce economic sanctions, despite a complete lack of evidence to implicate Iran with weaponizing its nuclear energy program. Tehran must be diligent in finding ways to manage its currency devaluation and economic growth – because of its natural resources and abundant energy wealth, the country is in a unique position to deflect international sanctions and use them to its advantage. By partnering with its international allies, Iran can bolster its domestic manufacturing industries and secure international markets for its products. Policy makers in Washington and Tel Aviv should remember that chess is an Iranian game.

Nile Bowie is a Kuala Lumpur-based American writer, video producer and frequent contributor to Global Research. He explores issues of terrorism, economics and geopolitics.

 

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Major Japanese firms suspend operations in China

 

Chinese protesters hold placards and flags as they march past the Japanese embassy during a protest over disputed islands, in Beijing on September 16, 2012

Source: Press TV

http://www.presstv.ir/detail/2012/09/17/262049/japanese-firms-halt-business-in-china/

Japanese companies have temporarily suspended their operations in China as Chinese protesters hold fresh rallies to defy Japan’s move to purchase a chain of disputed islands, claimed by the two economic heavyweights and Taiwan.

Major car-makers Toyota and Honda, as well as electronics-maker Panasonic were on Monday obliged to shut their businesses in China after some of their factories were attacked by Chinese protesters across the country. Toyota and Honda also reported arson attacks on their stores in Qingdao.

Meanwhile, several Japanese schools across China, including in Beijing and Shanghai, cancelled classes due to the escalation of the crisis.

Anti-Japan protesters marched past the Japanese embassy in the capital Beijing after Japan announced its decision on Tuesday to purchase a chain of the disputed islands in East China Sea from their private Japanese owner.

Following the announcement, Beijing sent six surveillance ships to the islands “to start patrol and law enforcement.”

In the southern city of Shenzhen, police fired tear gas at the angry protesters who were calling for “bloodbath” in Tokyo.

In addition, over 1,000 protesters held a demonstration in the southern city of Guangzhou, burning Japanese flags. They also attacked a hotel next to the Japanese consulate.

The disputed territories, known as Diaoyu in China and Senkaku in Japan, have been the topic of a long-running row between Tokyo and Beijing. The islands are uninhabited but resource-rich.

The islands are located near a crucial shipping lane and would give the owner exclusive oil, mineral and fishing rights in the surrounding waters.

 

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US wades into China Japan island dispute with missile defense deal

 

(AFP Photo / Mark Ralston)

Source: Russia Today

http://rt.com/news/china-japan-war-panetta-290/

A territorial dispute between China and Japan could spark a “violent conflict,” US Defense Secretary Leon Panetta said. The US also inked a missile defense deal with Tokyo likely to anger Beijing, while mass anti-Japanese protests grip China.

"I am concerned that when these countries engage in provocations of one kind or another over these various islands, that it raises the possibility that a misjudgment on one side or the other could result in violence, and could result in conflict,"Panetta said.

He also warned that Beijing and Tokyo should put an end to provocations or risk a “potentially expanding” conflict.

Following the diplomatic meeting with Panetta, Japanese Foreign Minister Koichiro Gemba said that Washington had agreed that the Senkaku islands, claimed by both Japan and China, are covered by a US-Japan security treaty.

In the 1960 treaty, the US committed to aid the Japanese in the event of an attack on the nation’s territory.

"I did not bring up the topic today, but it is mutually understood between Japan and the United States that [the islands] are covered by the treaty," Gemba said after the meeting on Monday. Washington previously claimed that the US would not take sides in the territorial dispute over the archipelago in the East China Sea.

The US also signed an agreement with Japan on Monday to build a second missile defense radar installation on Japanese territory, aimed at countering North Korea. China may view the move as a provocation.

The Senkaku islands – known as Diaoyu to the Chinese – are uninhabited, but are believed to contain rich mineral deposits and are located on important shipping lanes.

Violent protests rocked China after Japan announced last week that it had purchased three of the islands from a private owner. In the latest bout of demonstrations, anti-Japanese activists attacked Panasonic factories in the eastern city of Quingdao. Protesters burned Japanese flags and targeted Japanese-made cars.

In response to the wave of unrest, Panasonic temporarily ceased operations in China. In addition, Canon announced that it would suspend operations for employees’ safety. Toyota Motor Corp also said that it was affected by the anti-Japanese unrest, citing a suspected arson attack on one of its factories in the eastern Shandong province.

­

‘A decade of stagnation’

On Monday, the Chinese government threatened that Japan could suffer from another “lost decade” if relations between the two countries deteriorate further.

"How could be it be that Japan wants another lost decade, and could even be prepared to go back by two decades," state newspaper the People's Daily said in a front-page article. China "has always been extremely cautious about playing the economic card," it said.

The paper claimed that China was prepared to “take up the battle,” should tensions persist.

 

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East Asia disputes may draw in others - Panetta

 

US Defense Secretary Leon Panetta

Source: Press TV

http://www.presstv.ir/detail/2012/09/17/262055/east-asia-disputes-may-expand-panetta/

US Defense Secretary Leon Panetta has expressed concern over territorial disputes between Japan and China, saying the spats may lead to conflicts involving other countries.

"I am concerned that when these countries engage in provocations of one kind or another over these various islands that it raises the possibility that a misjudgment on one side or the other could result in violence and could result in conflict and that conflict would then, you know, have the potential of expanding," Panetta told reporters on Sunday onboard his plane en route to Tokyo, Japan.

Tokyo is the first stop of Panetta’s weeklong trip to the East Asia region, which will include visits to China and New Zealand.

The trip is reportedly the third tour of the American military chief to Asia Pacific in the past 11 months, echoing Pentagon’s shifting efforts to place further military emphasis on the region.

Panetta said he will urge countries of the region, especially China, to find ways to peacefully resolve their disputes.

Protests against Japan have erupted across China over the past days over a long-running dispute on a group of uninhabited islands in East China Sea.

During his visit to Japan, the American defense secretary plans to discuss with officials in Tokyo the controversial deployment of 12 V-22 Osprey aircraft to the country.

Thousands of Japanese have protested the hybrid aircraft’s planned deployment in their nation, questioning its safety record.

 

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Americas bloc takes UK threats to Ecuador for international discussion

Source: Russia Today
https://rt.com/news/oas-ecuador-uk-theats-asylum-984/

British threats to invade Ecuador’s embassy will be discussed at international-level talks between the foreign ministers of the Organization of American States. The proposal was adopted despite the US saying OAS has nothing to do with the issue.

­Ecuador’s resolution to convene a meeting of the OAS member nations' foreign ministers was adopted with 23 voting in favor, three against and five abstentions.

The US and Canada were among those who opposed the measure, stating that the dispute over Assange's fate is a bilateral matter between Ecuador and the United Kingdom, and should not be dragged to the international table.

The US State Department stated earlier on Friday that the OAS has “no role” to play in a “bilateral issue between Ecuador and the United Kingdom.” Not party to the 1954 OAS Convention on Diplomatic Asylum, the United States “does not recognize the concept of diplomatic asylum as a matter of international law,” the statement read.

The foreign ministers of the bloc's thirty-five member states will convene at the OAS Headquarters in Washington, DC, on August 24.

A special meeting of the Permanent Council of the Organization of American States was held on Thursday and Friday. The bloc discussed Ecuador’s proposal to arrange a ministerial meeting of the member states to address the issue as a matter of international law.

Ecuador called for an emergency OAS meeting after it received a memorandum from the UK that included a threat of an assault on the country’s London embassy to arrest WikiLeaks founder Julian Assange, who was seeking political asylum there, if he is not handed over to the British authorities. The contents of the letter were revealed the day before Ecuador publicly announced its decision to grant Assange political asylum.

While the UK maintains that it has a right to extract Assange from Ecuador’s embassy, the Latin American country says any entry by British authorities onto its ambassadorial premises to arrest Assange would constitute a violation of Article 22 of the Vienna Convention on Diplomatic Relations.

On Thursday, British Foreign Minister William Hague said that the UK "remains committed” to its obligation to extradite Assange to Sweden, and that the Ecuadorian government's decision will not change anything as Assange's diplomatic immunity is not recognized by the UK.

Ecuador promised to pursue all legal avenues, including an appeal to the International Criminal Court, if the UK refuses to grant Assange safe passage from the country.

But as long as London refuses to give him safe passage, Assange will stay at the Ecuadorian Embassy, the country’s president Rafael Correa said in a radio interview on Friday. Correa asserted that Ecuador won’t hand Assange over to the UK authorities as there is no legal basis for such demands.

In search of regional support, Ecuadorian Foreign Minister Ricardo Patino also called on the Council of Foreign Ministers of the Union of South American Nations (UNASUR) and the Bolivarian Alliance for the Peoples of Our Americas (ALBA) to hold meetings with a similar agenda.

The ALBA countries responded to the call with a statement expressing their solidarity with Ecuador and a “most resounding rejection”of the UK's threats against the country. According to a press release published by Ecuador, the ALBA governments warned Britain of “the serious and irreversible consequences the execution of these threats would have on the political, economic and cultural relations” with its member countries.

The executive secretary of the ALBA, Rodolfo Sanz, confirmed that an emergency meeting on the issue would take place on Saturday. Sanz said the majority of ALBA member states support Ecuador and believe the UK authorities should recognize Assange's political asylum status in full accordance to the international law.

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