The Conservative Papers

February 8, 2010

World’s tallest tower closed a month after opening

Filed under: Financial — Tags: , , , , , — kalel @ 5:13 pm
By ADAM SCHRECK, AP Business Writer

DUBAI, United Arab Emirates – The world’s tallest skyscraper has unexpectedly closed to the public a month after its lavish opening, disappointing tourists headed for the observation deck and casting doubt over plans to welcome its first permanent occupants in the coming weeks.

Electrical problems are at least partly to blame for the closure of the Burj Khalifa’s viewing platform — the only part of the half-mile high tower open yet. But a lack of information from the spire’s owner left it unclear whether the rest of the largely empty building — including dozens of elevators meant to whisk visitors to the tower’s more than 160 floors — was affected by the shutdown.

The indefinite closure, which began Sunday, comes as Dubai struggles to revive its international image as a cutting-edge Arab metropolis amid nagging questions about its financial health.

The Persian Gulf city-state had hoped the 2,717-foot (828-meter) Burj Khalifa would be a major tourist draw. Dubai has promoted itself by wowing visitors with over-the-top attractions such as the Burj, which juts like a silvery needle out of the desert and can be seen from miles around.

In recent weeks, thousands of tourists have lined up for the chance to buy tickets for viewing times often days in advance that cost more than $27 apiece. Now many of those would-be visitors, such as Wayne Boyes, a tourist from near Manchester, England, must get back in line for refunds.

“It’s just very disappointing,” said Boyes, 40, who showed up at the Burj’s entrance Monday with a ticket for an afternoon time slot only to be told the viewing platform was closed. “The tower was one of my main reasons for coming here,” he said.

The precise cause of the $1.5 billion Dubai skyscraper’s temporary shutdown remained unclear.

In a brief statement responding to questions, building owner Emaar Properties blamed the closure on “unexpected high traffic,” but then suggested that electrical problems were also at fault.

“Technical issues with the power supply are being worked on by the main and subcontractors and the public will be informed upon completion,” the company said, adding that it is “committed to the highest quality standards at Burj Khalifa.”

Despite repeated requests, a spokeswoman for Emaar was unable to provide further details or rule out the possibility of foul play. Greg Sang, Emaar’s director of projects and the man charged with coordinating the tower’s construction, could not be reached. Construction workers at the base of the tower said they were unaware of any problems.

Power was reaching some parts of the building. Strobe lights warning aircraft flashed and a handful of floors were illuminated after nightfall.

Emaar did not say when the observation deck would reopen. Ticket sales agents were accepting bookings starting on Valentine’s Day this Sunday, though one reached by The Associated Press could not confirm the building would reopen then.

Tourists affected by the closure are being offered the chance to rebook or receive refunds.

The shutdown comes at a sensitive time for Dubai. The city-state is facing a slump in tourism — which accounts for nearly a fifth of the local economy — while fending off negative publicity caused by more than $80 billion in debt it is struggling to repay.

Ervin Hladnik-Milharcic, 55, a Slovenian writer planning to visit the city for the first time this month, said he hoped the Burj would reopen soon.

“It was the one thing I really wanted to see,” he said. “The tower was projected as a metaphor for Dubai. So the metaphor should work. There are no excuses.”

Dubai opened the skyscraper on Jan. 4 in a blaze of fireworks televised around the world. The building had been known as the Burj Dubai during more than half a decade of construction, but the name was suddenly changed on opening night to honor the ruler of neighboring Abu Dhabi.

Dubai and Abu Dhabi are two of seven small sheikdoms that comprise the United Arab Emirates. Abu Dhabi hosts the federation’s capital and holds most of the country’s vast oil reserves. It has provided Dubai with $20 billion in emergency cash to help cover its debts.

Questions were raised about the building’s readiness in the months leading up to the January opening.

The opening date had originally been expected in September, but was then pushed back until sometime before the end of 2009. The eventual opening date just after New Year’s was meant to coincide with the anniversary of the Dubai ruler’s ascent to power.

There were signs even that target was ambitious. The final metal and glass panels cladding the building’s exterior were installed only in late September. Early visitors to the observation deck had to peer through floor-to-ceiling windows caked with dust — a sign that cleaning crews had not yet had a chance to scrub them clean.

Work is still ongoing on many of the building’s other floors, including those that will house the first hotel designed by Giorgio Armani that is due to open in March. The building’s base remains largely a construction zone, with entrance restricted to the viewing platform lobby in an adjacent shopping mall.

The first of some 12,000 residential tenants and office workers are supposed to move in to the building this month.

The Burj Khalifa boasts more than 160 stories. The exact number is not known.

The observation deck, which is mostly enclosed but includes an outdoor terrace bordered by guard rails, is located about two-thirds of the way up on the 124th floor. Adult tickets bought in advance cost 100 dirhams, or about $27. Visitors wanting to enter immediately can jump to the front of the line by paying 400 dirhams — about $110 apiece.

___

On the Net: http://www.burjdubai.com

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Second Wave Of Mortgage Defaults

Filed under: Freedoms — Tags: , — alpineski @ 12:47 pm

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February 7, 2010

Bosom bombers: Women have explosive breast implants

Filed under: Terrorism — Tags: , , — alpineski @ 10:38 am

Authorities alarmed by possibility of surgically placed explosives

Suicide bomber Iat Alacharas, 18

LONDON – Agents for Britain’s MI5 intelligence service have discovered that Muslim doctors trained at some of Britain’s leading teaching hospitals have returned to their own countries to fit surgical implants filled with explosives, according to a report from Joseph Farah’s G2 Bulletin.

Women suicide bombers recruited by al-Qaida are known to have had the explosives inserted in their breasts under techniques similar to breast enhancing surgery. The lethal explosives – usually PETN (pentaerythritol Tetrabitrate) – are inserted during the operation inside the plastic shapes. The breast is then sewn up.

Similar surgery has been performed on male suicide bombers. In their cases, the explosives are inserted in the appendix area or in a buttock. Both are parts of the body that diabetics use to inject themselves with their prescribed drugs.

The discovery of these methods was made after the London-educated Nigerian Umar Farouk Abdulmutallab came close to blowing up an airliner on Christmas Day with explosives he had stuffed inside his underpants.

Hours after he had failed, GCHQ – Britain’s worldwide eavesdropping “spy in the sky” agency – began to pick up “chatter” emanating from Pakistan and Yemen that alerted MI5 to the creation of the lethal implants.

A hand-picked team was appointed by Jonathan Evans, the head of MI5, to investigate the threat. He described it as “one that can circumvent our defense.”

Top surgeons who work in the National Health Service confirmed the feasibility of the explosive implants.

In a report to Evans, one said:

“Properly inserted the implant would be virtually impossible to detect by the usual airport scanning machines. You would need to subject a suspect to a sophisticated X-ray. Given that the explosive would be inserted in a sealed plastic sachet, and would be a small amount, would make it all the more impossible to spot it with the usual body scanner.”

Explosive experts at Britain’s Porton Down biological and chemical warfare research center told MI5 that a sachet containing as little as five ounces of PETN when activated would blow “a considerable hole” in an airline’s skin
which would guarantee it would crash.

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More Government Equals Fewer Jobs

Filed under: Barack Obama, Financial — Tags: , — alpineski @ 9:21 am


by Peter Schiff- With today’s unexpected decline in December payrolls, the cry for more job-related stimulus will grow even louder. But the sad truth is that any new stimulus or jobs bills will ultimately swell the ranks of the unemployed, thereby raising calls for an even bigger federal effort. If we are not careful, government regulations, subsidies, and spending, all designed to fight unemployment, could push the labor market into a death spiral.

Regulation acts like a tax on job creation. By subjecting employers to all sorts of extra expenses when they hire people, regulations increase the cost of employment far beyond the wages employers actually pay their workers. In fact, some regulations are specifically tied to the number of workers employed. This provides some employers with a strong incentive to stay small and not hire.

The minimum wage law, which is really just a very visible workplace regulation, actually makes it illegal for employers to hire certain individuals and destroys entire categories of jobs. For instance, faced with high labor costs, some restaurants will avoid hiring dishwashers by switching to plastic utensils and paper plates. On a larger scale, factories may decide to switch to robotic assembly lines if human labor gets too expensive.

Other types of regulations, such as those that prohibit discrimination, create incentives for employers not to hire individuals that fall within the protected class. This is the result of potential litigation costs that may result from wrongful termination lawsuits. In other words, the more expensive government makes it to fire workers, the less likely they are to hire them in the first place.

Subsidies produce the opposite effect of regulation, but sometimes the results can be just as harmful. Government subsidies divert resources towards politically favored activities, resulting in more jobs in areas such as health care and education, but fewer jobs in other sectors such as manufacturing. The net effect of this transfer is to diminish the productive capacity and efficiency of the economy, which lowers real economic growth and diminishes employment opportunities.

Although not as visible as regulations and subsidies, government spending also plays a large role in job destruction. The more money government spends, the more resources it drains from the private sector. The fiscal 2011 budget proposed by President Obama contains $3.8 trillion in federal spending. Think of government as a cancer feeding off the private sector. The larger it grows, the more jobs it kills. Unfortunately, most politicians follow the misguided advice of economist John Maynard Keynes, who advocated government spending as a means of job creation. In reality, government spending merely results in government jobs replacing more efficient private sector jobs.

Some economists point to taxes as the primary job killer, and argue that lower taxes will boost employment. While I have sympathy for this view, it misses the larger issue that the burden of government is not what it taxes but what it spends. The proposed fiscal 2011 federal budget contains “only” 2.4 trillion of taxes. The remaining 1.4 trillion of spending is borrowed (incredibly, for every dollar the government collects in taxes, it now spends almost $1.60). I would argue that a dollar borrowed kills more jobs than a dollar taxed. Therefore, cutting taxes and borrowing the shortfall kills more jobs then it creates. This is true because jobs require capital and government borrowing more directly crowds out private capital investment than taxes do.

In the end, I fully expect the government to directly provide make-work jobs to the armies of the unemployed. This will accelerate the pace of private sector job destruction and make our economy even less productive than it is today. This means that while the government may be able to provide people with jobs, the wages they pay will provide little in the way of purchasing power. In the end, we will become a nation of government employees, with plenty of work but little to show for it.

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February 6, 2010

Sovereign Risk Meets Sovereign Reality

Filed under: Financial — Tags: , , — alpineski @ 11:48 am

Santorini, Greece


The Wall Street Journal- After months of shrugging off debt problems in Dubai, Greece and other smaller economies, markets yesterday seemed suddenly aware of the risks of sovereign default.

Back in November, when the question of Dubai’s solvency came to a head, it was ultimately bailed out by its rich older brother, Abu Dhabi. Now, the European Union is doing its best to avoid promising a similar bailout to Greece, though in the end few believe Brussels will allow Athens to go under.

The current crisis in Greece is only the worst example inside the EU. The PIGS—Portugal, Italy, Greece and Spain—all boast public debt above or headed for 100% of GDP. Though the PIGS acronym was apparently coined by British bankers, Britain, Ireland and Iceland also smell distinctly of bacon.

The problem isn’t confined to Europe. Japan and the United States, by most reckonings the world’s largest economies, also face pressing questions about their sovereign debt levels. To be sure, the U.S. and Japan can sustain such deficits more comfortably than small countries like Greece or Portugal where the government’s ability to curb public-sector spending is rightly suspect. Yet even in economic giants, bad policy could cause investors to move out of debt they have long considered a safe haven. The moment is approaching when the artificial line separating the wealthy from emerging markets will lose much of its relevance.

Countries like Germany, whose fiscal balances have deteriorated largely due to the economic downturn, might have a greater capacity to stabilize their debt ratio. The U.S. and Japan will also be among the last countries to face investor aversion. This is because the dollar is the global reserve currency, and the U.S. has the deepest and most liquid debt markets. Japan is a net creditor and largely finances its debt domestically. But over the next few years, investors will become increasingly cautious about even the U.S. and Japan if the necessary fiscal reforms are delayed.

Investor perceptions about how Brussels handles the current crisis will be a key factor going forward. European countries such as Spain and Greece have delayed reforms and face a severe competitiveness problem. Japan’s aging population and economic stagnation is reducing domestic savings. The U.S. is a net debtor with an aging population and slower growth.

For the U.S., the implications are clear. The annual fiscal deficit in the U.S. will remain close to $1 trillion over the next decade. Ultimately, concerns among foreign investors about a weak dollar will force Washington to put its house in order. The U.S. will have to raise taxes on most income groups and investors, close tax exemptions and loopholes, and reduce entitlement benefits.

Foreign creditors won’t suddenly move away from U.S. Treasurys—the trend will play out gradually. The same holds true for domestic investors who consider U.S. Treasurys a safe haven and remain confident about the country’s debt-servicing ability relative to other developed economies.

But as the Federal Reserve begins to raise interest rates to head off inflation—something likely to begin only in 2011—foreign investors and central banks will be willing to finance the U.S. only at higher yields. Rising interest costs will be one of the factors constraining U.S. policy. That’s where sovereign risk meets sovereign reality.

Mr. Bremmer, president of Eurasia Group, is author of the forthcoming book “The End of the Free Market: Who Wins the War Between States and Corporations?” (Portfolio). Mr. Roubini is a professor of economics at New York University’s Stern School of Business and chairman of Roubini Global Economics.

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February 5, 2010

“Reviving the Islamic Spirit” or Promoting Islamic Dominance?

Filed under: Terrorism — Tags: , , , , — kalel @ 10:17 am

by Jonathan Usher
FrontPage Magazine
February 5, 2010

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February 3, 2010

Stocks Could Fall to 8,800

Filed under: Financial — Tags: , — alpineski @ 10:21 am

Ellen Chang- The market could see a huge correction in a few months, says Dan Cook, senior market analyst at IG Markets.

Investors are not buoyed by positive earnings reports, he says.

“There’s still a lot of confusion in the market. We’re looking at a pretty positive earnings season overall, but as we saw (recently) it was basically ignored due to political conflicts and we’re likely to see more of that,” Cook said.

Cook predicts there to be a 20 percent to 25 percent correction in the markets by April or May.

“It wouldn’t surprise me to see a range of 8,800 to 9,000 on the Dow. There are a few individual stocks I like, but sector-by-sector, I’m definitely more bearish than what I am bullish,” he told CNBC.

The market has also benefited from not being affected by inflation, the New York Times reported.

“The Fed’s job is easy today, because we’re not even back into positive territory on payroll and employment numbers. We’re a long ways away from significant inflationary pressures in the labor market,” said Peter Hooper, chief economist for Deutsche Bank Securities.

The economy remains weak and can not improve with higher interest rates, Bloomberg reported.

“The economy is just too fragile to start raising rates at this point,” said Terry Morris, a money manager at National Penn Investors Trust Co. in Wyomissing, Pa., which manages $2 billion.

The euro dipped to a six-month low compared to the dollar on news from the European Commission stating that Greece has failed to fix its budget deficit.

“It’s basically a fear of the unknown that people have,” said Michael O’Rourke, chief market strategist at BTIG LLC in Yardley, Pa., which provides trading services for large investors.

“The euro is a relatively new currency and it hasn’t been crisis-tested the way it’s being now.”

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Barack Obama Admits That “By Design” You Remain Unemployed

Filed under: Barack Obama, Financial — Tags: , , , , — kalel @ 3:51 am

Posted by Erick Erickson

“Barack Obama refused to help get unemployment down in 2009 by design so he could get credit in the 2010 election year instead.”

Many of us have been saying it for a while. The White House intended that the stimulus money, which the White House intended to use to save or create jobs, would not really be spent in 2009 as unemployment soared to over 10%.

On page 9 of Obama’s budget proposal, we find that, in fact, the White House is now admitting this fact. You are still unemployed by government design.

Barack Obama writes,

All told, as of the end of November 2009, about 50 percent of Recovery Act funds—or $395 billion—has been either obligated or is providing assistance directly to Americans in the form of tax relief. By design, the bulk of the remaining 50 percent of Recovery Act funds will be deployed in the coming months of 2010 and during the beginning of 2011 to support additional job creation when our economy continues to need a boost. Many of the programs slated to receive additional funding in the near future are those with significant promise of job creation. These include more than $7 billion in broadband expansion, approximately $8 billion in funds to lay the foundation for a high-speed rail network, and continued funding for other transportation projects. All told, the Recovery Act is on track to meet the goal of disbursing 70 percent of its funds in the first 18 months of its life.

(Budget at p.9)

So wait? Even after 18 months all the money won’t be spent?

To put this in perspective, consider what the President said in his State of the Union address:

One year ago, I took office amid two wars, an economy rocked by severe recession, a financial system on the verge of collapse, and a government deeply in debt. Experts from across the political spectrum warned that if we did not act, we might face a second depression. So we acted – immediately and aggressively. And one year later, the worst of the storm has passed. 

But the devastation remains. One in ten Americans still cannot find work. Many businesses have shuttered. Home values have declined. Small towns and rural communities have been hit especially hard. For those who had already known poverty, life has become that much harder.

This recession has also compounded the burdens that America’s families have been dealing with for decades – the burden of working harder and longer for less; of being unable to save enough to retire or help kids with college.

So I know the anxieties that are out there right now. They’re not new. These struggles are the reason I ran for President. . . .

For these Americans and so many others, change has not come fast enough. Some are frustrated; some are angry. They don’t understand why it seems like bad behavior on Wall Street is rewarded but hard work on Main Street isn’t; or why Washington has been unable or unwilling to solve any of our problems.

What the hell? This man says last week that “we acted — immediately and aggressively” and this week says “by design, the bulk of the remaining 50 percent of Recovery Act funds will be deployed in the coming months of 2010.”

That is not immediately and aggressively. He says “one in ten Americans still cannot find work” but also says in his budget, “the Administration moved rapidly to sign into law, just 28 days after taking office, the American Recovery and Reinvestment Act (the Recovery Act) to create and save jobs, as well as transform the economy to compete in the 21st Century.” (Budget at p.
Obama is trying to have it both ways. He admits his stimulus money is dragging out and that even after 18 months it won’t all be spent. At the same time, he tells the public at the State of the Union that the reasons there is still 10% unemployment is “bad behavior on Wall Street is rewarded but hard work on Main Street isn’t” and “Washington has been unable or unwilling to solve any of our problems.”

Well, he has the last bit right. Washington was “unwilling to solve” the problems because 2009 was not an election year and 2010 is. The President of the United States refused to help get unemployment down in 2009 by design so he could get credit in the 2010 election year instead.

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February 2, 2010

How to Save the Obama Presidency: Bomb Iran

Filed under: Barack Obama, Terrorism — Tags: , , , , — kalel @ 10:46 am

by Daniel Pipes
National Review Online
February 2, 2010

I do not customarily offer advice to a president whose election I opposed, whose goals I fear, and whose policies I work against. But here is an idea for Barack Obama to salvage his tottering administration by taking a step that protects the United States and its allies.

If Obama’s personality, identity, and celebrity captivated a majority of the American electorate in 2008, those qualities proved ruefully deficient in 2009 for governing. He failed to deliver on employment and health care, he failed in foreign policy forays small (e.g., landing the 2016 Olympics) and large (relations with China and Japan). His counterterrorism record barely passes the laugh test.

This poor performance has caused an unprecedented collapse in the polls and the loss of three major by-elections, culminating two weeks ago in an astonishing senatorial defeat in Massachusetts. Obama’s attempts to “reset” his presidency will likely fail if he focuses on economics, where he is just one of many players.

He needs a dramatic gesture to change the public perception of him as a lightweight, bumbling ideologue, preferably in an arena where the stakes are high, where he can take charge, and where he can trump expectations.

Barak Obama’s job approval problem.

Such an opportunity does exist: Obama can give orders for the U.S. military to destroy the Iranian nuclear weapon capacity.

Circumstances are propitious. First, U.S. intelligence agencies have reversed their preposterous 2007 National Intelligence Estimate, the one that claimed with “high confidence” that Tehran had “halted its nuclear weapons program,” No one (other than the Iranian rulers and their agents) denies that the regime is rushing headlong to build a large nuclear arsenal.

Second, if the apocalyptic-minded leaders in Tehran get the Bomb, they render the Middle East a yet more volatile and dangerous. They might deploy these weapons in the region, leading to massive death and destruction. Eventually, they could launch an electro-magnetic pulse attack on the United States, utterly devastating the country. By eliminating the Iranian nuclear threat, Obama protects the homeland and sends a message to American’s friends and enemies.

Third, polling shows longstanding American backing for an attack on the Iranian nuclear infrastructure.

  • Los Angeles Times/Bloomberg, January 2006: 57 percent of Americans favor military intervention if Tehran pursues a program that could enable it to build nuclear arms.
  • Zogby International, October 2007: 52 percent of likely voters support a U.S. military strike to prevent Iran from building a nuclear weapon; 29 percent oppose such a step.
  • McLaughlin & Associates, May 2009: asked whether they would support “Using the [U.S.] military to attack and destroy the facilities in Iran which are necessary to produce a nuclear weapon,” 58 percent of 600 likely voters supported the use of force and 30 percent opposed it.
  • Fox News, September 2009: asked “Do you support or oppose the United States taking military action to keep Iran from getting nuclear weapons?” 61 percent of 900 registered voters supported military action and 28 opposed it.
  • Pew Research Center, October 2009: asked which is more important, “To prevent Iran from developing nuclear weapons, even if it means taking military action” or “To avoid a military conflict with Iran, even if it means they may develop nuclear weapons,” Out of 1,500 respondents, 61 percent favored the first reply and 24 percent the second.
The nuclear facility at Qum on Sep. 26,2009 from 423 miles in space, provided by GeoEye.

Not only does a strong majority – 57, 52, 58, 61, and 61 percent – already favor using force but after a strike Americans will presumably rally around the flag, jumping that number much higher.

Fourth, were the U.S. strike limited to taking out the Iranian nuclear facilities, and not aspire to regime change, it would require few “boots on the ground” and entail relatively few casualties, making an attack politically more palatable.

Just as 9/11 caused voters to forget George W. Bush’s meandering early months, a strike on Iranian facilities would dispatch Obama’s feckless first year down the memory hole and transform the domestic political scene. It would sideline health care, prompt Republicans to work with Democrats, make netroots squeal, independents reconsider, and conservatives swoon.

But the chance to do good and do well is fleeting. As the Iranians improve their defenses and approach weaponization, the window of opportunity is closing. The time to act is now or, on Obama’s watch, the world will soon become a much more dangerous place.

Mr. Pipes is director of the Middle East Forum and Taube distinguished visiting fellow at the Hoover Institution of Stanford University.

——————————————————————————-

Feb. 2, 2010 update: Of all people, Washington Post columnist Richard Cohen today substantiates my comment about Obama’s counterterrorism record barely passing the laugh test, at ” Obama administration is tone-deaf to concerns about terrorism.”

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US May Be Ramping Up For Showdown With Iran

Filed under: Barack Obama, Terrorism — Tags: , , , , , , , , , , — kalel @ 12:50 am

From VirtualJerusalem.com:

The Obama administration took the unusual step Saturday night, Jan. 30, of leaking word to major US media that the United States, Saudi Arabia and Gulf allies – the United Arab Emirates, Kuwait and Bahrain – have accelerated the deployment of new defenses against possible Iranian missile attacks. They are preparing for Iran, or its surrogate Hizballah, to hit back for a possible US or strikes on Tehran’s nuclear facilities.

debkafile’s US military sources confirm that Washington plans to treble the 10,000-strong US troop contingent, already present in Saudi Arabia for guarding its oil fields and port facilities against medium or short-range Iranian missile attack, or sabotage by Hizballah marine units trained for their mission by Iran’s Revolutionary Guards Corps.

Additional US Aegis missile interceptor cruisers with advanced radar and anti-missile systems were also reported to be heading for round-the-clock patrol around Iranian shores, with more Patriot anti-missile missiles to reinforce the eight batteries already deployed in the four emirates.
The Obama administration set these exceptional steps in motion, debkafile reports, in anticipation of nuclear provocations from Tehran while the regime celebrates the 31st anniversary of the Islamic revolution from Feb.1-11.

President Mahmoud Ahmadinejad has promised to announce Iran’s attainment of a 20 percent uranium enrichment capability, a short step to weapons grade material.

Some high-ranking Revolutionary Guards officers have also said that Iran will parade a new type of surface missile during the celebrations, without revealing its features, while Iranian space scientists predicted the launch of a new spy satellite of the Toloo series.

All this was taken in Washington as a challenge that could not be left without an appropriate response. Administration officials also feared that Israel might be goaded into going forward with a military operation against Iran’s nuclear facilities. The Gulf Arab states were in need of reassurance too.

The White House’s decision to deploy additional defenses in the Gulf came only a day after National Security Adviser James Jones warned that Iran was liable to react to pressure by having its proxies Hizballah and Hamas attack Israel.? The abruptness of this step pointed to the administration having woken up to the realization that its diplomatic and military position in the region was in grave jeopardy and in dire need of shoring up without delay.

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