Tuesday, November 20, 2012

Middle East Conflict Analysis: Will Hillary Clinton’s visit to Middle East will result in US engagement?

11/20/2012 Portland, Oregon – Pop in your mints…

Here at The Mint, we have been following with great interest the recent escalation in the conflict in the Middle East.  It is understood by many that the grievances between the Israelis and the Palestinians are seemingly irreconcilable.  Today, we will attempt to provide a bit of background, along with details we have gathered from various sources regarding the current dynamic, and engage in speculation as to potential outcomes.

Background

While the divisions in the region have deep historical roots, we have attempted to gain what understanding we can of the modern conflict.  Our reading on the matter has been limited to The Bible, The Haj, and The Source, as such, we recognize that our bias is Pro-Israeli.

From these sources, we have cobbled together the following understanding:  Beginning in the early 1900′s as Jewish settlers began to populate Palestine in an attempt to create a homeland where the Jewish people, who had suffered persecution in every other land on the planet, could relocate to escape said persecution.
The logical place to do this, from the Jewish point of view, was to purchase land in the area where the ancient Kingdom of Israel had been.  The Jews then worked to establish settlements and to encourage Jewish pilgrims and refugees to come home.  In 1947, after the ethnic cleansing that the Jews suffered during World War II, the Jewish settlers appealed to the United Nations for statehood and recognition by the International Community.

On November 29, 1947, with the UN divided on the matter (which required a 2/3 majority vote for passage), the Philippines relented to pressure from the United States and cast the deciding vote in favor, and Israel for all practical purposes was recognized by the UN.

{Editor’s Note:  We present the UN vote as an EPIC FAIL of large scale “democracy by proxy,” and again make the case for small scale democratic systems left to operate in a large scale anarchic environment, which would allow peace to prosper as the small scale systems tacitly work towards the stalemates presented in “The Strategy of Conflict“, which is a discussion for another day.}

On May 15, 1948, when the British Mandate in Palestine officially expired, the predominantly Arab countries surrounding Israel attacked her and were repelled.  It could be said that hostilities in the region have continued on and off ever since.  Naturally, the Arab States refuse to recognize Israel’s existence to this day, and the situation in Palestine may be the most marked example of how the simple drawing of border lines has caused ceaseless bloodshed and heartache for those involved, with the ultimate losers being the inhabitants of what is today understood to be Palestine, those lands in Palestine which are not part of the Jewish state.  These refugees were evacuated from their lands by the Arab states with the promise of inhabiting all of Palestine once the Jewish state was eliminated, and are now held hostage, in a sense, by both the Arab states and Israel.

We now fast forward from what undoubtedly is a biased History lesson to the present situation and, again more importantly, what is likely to occur.

The Present Dynamic

In the most recent escalation in hostilities, which began on November 15, 2012, both Hamas and Israel have continued their mutual assaults despite rumors that a cease fire is being negotiated by Egypt.  To summarize recent events, a number of short and medium range rockets, amongst them the Fajr-5, which has now been used to target both Tel Aviv and Jerusalem, have been launched from the Gaza strip at Israeli population centers.

In response, Israel has called up reserves and is preparing a force of roughly 100,000 for a ground assault into Gaza, with the goal of neutralizing the longer range threat that the Fajr-5 presents.

Even casual observers will note that 100,000 troops is quite a bit of manpower, in fact, it exceeds the number of troops that the US currently has deployed in Afghanistan.  Why would Israel, which should hold a clear technical advantage over its adversaries (leading many observers to sympathize with the Palestinians, a phenomenon known as “Underdogma” made famous by Michael Prell), call up so much firepower to deal with Gaza?  One response is the prospect of prolonged urban warfare in Gaza City, where a portion of the Hamas rocket cache may be located.

Speculation on possible outcomes

However, given the timing of the Israeli response, just weeks after the US Presidential elections, it is just as likely that Israel is using the current conflict as a launch pad towards a unilateral operation to destroy Iran’s nuclear program and eliminate what Israel sees as its most urgent existential threat.

Benjamin Netanyahu, the Israeli Prime Minister, more than alluded to this in his September speech at the United Nations as he all but called for an invasion of Iran.  With the re election of the Obama administration in the US, historically Israel’s closest ally, Netanyahu understands that the US is likely to stay on the sidelines in the near future and is taking the Iranian matter into his own hands.

Nadeem Walayat, the clairvoyant analyst at The Market Oracle, speculates that the ground campaign in Gaza is the first phase of a three phase operation.  In order to attack Iran with minimal civilian casualties, Israel must first remove the threat of short and medium range rocket attacks by Iranian proxies on its population centers as such attacks would immediately begin were Israel to immediately attack Iran.

According to Walayat, Israel would attack Gaza and then Hezbollah in Lebanon, hoping to seal up these theaters of conflict before launching what by any account would be a risky assault on Iran.  Either Iran is desperately close to developing a nuclear weapon, or Netanyahu is desperately seeking reelection.  Whatever the motive, it should be clear that Israel is intent on dismantling Iran’s nuclear capabilities and that they view the present circumstances in the region give them the best opportunity for success, meaning neutralizing Iran’s nuclear program with limited fallout in the region or beyond.

Another part of the regional dynamic which is may greatly aid or hurt the Israeli strategy, depending upon how it plays out, is the conflict in Syria.  The protracted conflict in Syria has caused Hezbollah to conserve rockets and other armaments which they would otherwise train on Israel in anticipation of a possible civil war breaking out in Lebanon.  The recent international recognition of the Syrian opposition has only increased this threat.

At this point, Hezbollah could just as easily be drawn into deeply into a conflict in Lebanon as it could be in Israel.  The current state of events in Syria favors the Israeli plan, if indeed Mr. Walayat is correct. 

However, should Israel be drawn into a protracted operation in Gaza, Hezbollah could choose to strike the Israelis first and open up a second front, which would begin to stretch Israel’s armed forces and slow their strategy which, in order to be successful, must be carried out in a matter of months.

Another wildcard in a situation that is full of them is that the recent spillover from Syria into Turkey has the potential to draw German troops and NATO assets into the theater.

Against this backdrop, Washington DC is panicking (as a result of having no strategy in the Middle East) and has dispatched Secretary of State Hillary Clinton to bring the big brother (or sister, as it were) element into the mix.

Clinton, along with Egyptian officials, will attempt to broker a ceasefire between Israel, Hamas, and the Palestinian Islamic Jihad, which, according to Stratfor, is in control of at least some of the Fajr-5 rocket cache in Gaza.

The most recent report from Stratfor on the matter indicates that the Palestinian Islamic Jihad and Hamas will negotiate together.  The key demand of Israel is the grounding and confiscation of rockets in Gaza to neutralize the threat.  If this can be achieved via a Cease fire, which would likely mean Israeli or even US involvement overseeing the removal of the weapons and preventing further rockets from entering Gaza, Israel will have achieved its objective and a ground assault into Gaza would be unnecessary.

If this is the outcome, expect Israel to concentrate both diplomatic and military efforts on the Iranian threat and ignore Hezbollah, as they will perceive that the US has their back, both literally and figuratively.

If, on the other hand, the Egyptians insist on assuming the role of policing the rocket removal and preventing shipments, a condition that Israel is unlikely to agree to, we anticipate that Israel will proceed with their ground assault into Gaza.

Here at The Mint, half the world away, we hope for the best.  Perhaps the militants in Gaza will throw their rockets into the sea, and both Iran and Israel dismantle their respective nuclear programs.  Seeing this example, all of humanity will immediately lay down their weapons, dismantle their nukes, and sing kumbaya.  Anything is possible if those involved engage in IMMEDIATE FORGIVENESS and begin to live by the Golden Rule.

As this seems unlikely, we must all prepare for the worst, a middle east conflict launched in the name of self defense, which draws all of the world’s powers once again into armed conflict.

In the words of Jesse Ventura, “Nobody likes to see that…nobody.”

Stay tuned and Trust Jesus.

Stay Fresh!

David Mint

Email: davidminteconomics@gmail.com

Key Indicators for November 20, 2012

Copper Price per Lb: $3.49
Oil Price per Barrel:  $87.11
Corn Price per Bushel:  $7.43
10 Yr US Treasury Bond:  1.66%
FED Target Rate:  0.16%  ON AUTOPILOT, THE FED IS DEAD!
Gold Price Per Ounce:  $1,728 THE GOLD RUSH IS ON!
MINT Perceived Target Rate*:  0.25%
Unemployment Rate:  7.9%
Inflation Rate (CPI):  0.1%
Dow Jones Industrial Average:  12,789
M1 Monetary Base:  $2,458,800,000,000 LOTS OF DOUGH ON THE STREET!
M2 Monetary Base:  $10,333,800,000,000