Doug Casey: Is a US-Iran War Inevitable?
Interviewed by Louis James, Casey Research
US-Iranian saber-rattling or impending shoot-out? In his usual, candid manner, contrarian investor Doug Casey talks about why he believes it's serious this time… why the US is the greatest threat to peace today… why Iran might move towards a gold standard… and what smart investors should do.
L: Doug-sama, I've heard you say you think the US is setting Iran up to be the next fall guy in the wag-the-dog show – do you think it could really come to open warfare?
Doug: Yes, I do. It could just be saber rattling during an election year, but Western powers have been provoking Iran for years now – two decades, really. I just saw another report proclaiming that Iran is likely to attack the US, which is about as absurd as the allegations Bush made about Iraq bombing the US, when he fomented that invasion. It's starting to look rather serious at this point, so I do think the odds favor actual fighting in the not-too-distant future.
L: Could they really be so stupid?
Doug: You know the answer to that one. We're dealing with criminal personalities on both sides, and criminals are basically very stupid – meaning they have an unwitting tendency to self-destruction. One thing to remember is that most of those in power in the West still believe the old economic fallacy that war is good for the economy.
L: The old broken-window fallacy. Paraphrasing Arlo Guthrie, it's hard to believe anyone could get away with making a mistake that dumb for that long.
Doug: People like those in power still suffer the delusion that it was World War II that ended the Great Depression for the US. Actually, it was only after the end of the war that the depression ended, in 1946. In his book World Economic Development: 1979 and Beyond, Herman Kahn documented long-term growth throughout the 20th century. Between 1914 to 1946 – a very tough time, with WWI, the Great Depression, and WWII – the world economy still grew at something like 1.8%. I believe real growth would have been several times as great, were it not for the state and its products. But people still believe that spending money on things that explode and kill and destroy is somehow good for the economy.
L: I suppose they think it's okay if it creates jobs here and destroys lives and livelihoods "over there." But aside from the fact that it's not safe to assume today's enemies are not capable of bringing the battle onto US soil, it still ignores the fact that you're spending money on stuff that gets destroyed – like broken windows – and that impoverishes us all. Worse, the cost is not just economic.
Doug: That's right. This coming war with Iran has the potential to turn into something resembling WWIII, with enormous consequences.
Now, it's hard to speak with any certainty on such matters, because most of what we have to go on are press reports. Governments keep most really critical facts on their doings to themselves, and what you read in the press is as likely as not just a warmed-over government press release – in other words, propaganda. Meaningless, if not actively deceptive. It is correctly said that in war, truth is the first casualty.
L: But we do have the Internet these days, with indie reporters offering coverage ignored by the talking heads in the mainstream media.
Doug: True; it doesn't keep the chattering classes honest, but it does provide some diversity of spin, from which we can try to infer what's really going on. And from all the various sources – mainstream and alternative, Western and from within the Muslim world – I have to say that it appears to me that the Iranians are not actually developing nuclear weapons.
L: Then why do they act in such aggressive and bombastic ways?
Doug: Western powers are pushing them around, telling them what they can and cannot do, and treating them like children or mental incompetents with no right of self-determination. How else would you expect them to react? They may have a collectivist theocratic regime, but it's also a proud and ancient culture.
Now, as you know, I don't think there should be any countries at all – not in the sense of the modern nation-state, and I'm certainly no fan of the Tehran regime, but Iran is a sovereign state. The Iranians resent people from other countries assuming the right to tell them what they can and cannot do with their uranium enrichment program, just as people in the US would if Iranians told them what to do with… well, anything.
L: Do you have specific data to substantiate your view that Iran is not focused on creating nuclear weapons?
Doug: I was just reading about an official report that says that Iran is still not able to enrich uranium to the level needed to make nuclear weapons.
Uranium occurs in two isotopes with half-lives long enough to make it possible to find reasonable amounts of them in the earth's crust: U235 and U238. Most of it is U238 – 99.3% – but it's the U235 that's fissile, meaning, it's the one you want for making nuclear reactors and weapons. So you have to enrich your uranium – to about 20%-30% U235 to make reactor fuel and 90% or better to make weapons.
L: That's why the Russians are able to sell "downblended" uranium from decommissioned nuclear weapons for use as reactor fuel. So, you're saying the reports indicate that Iran is not capable of enriching uranium beyond the level needed for reactors?
Doug: Yes. But again, I have to stress that reliable information is very hard to come by. Remember when the US accused Iraq of having a program to develop so-called weapons of mass destruction? Apart from the fact that, except for nuclear weapons, that term is a complete misnomer, they had no such thing. It was either lousy intelligence or outright fabrication – and I suspect the latter. So how can we trust what they tell us today? Only a fool would be so naïve.
L: Indeed.
Read the full article here
US-Iranian saber-rattling or impending shoot-out? In his usual, candid manner, contrarian investor Doug Casey talks about why he believes it's serious this time… why the US is the greatest threat to peace today… why Iran might move towards a gold standard… and what smart investors should do.
L: Doug-sama, I've heard you say you think the US is setting Iran up to be the next fall guy in the wag-the-dog show – do you think it could really come to open warfare?
Doug: Yes, I do. It could just be saber rattling during an election year, but Western powers have been provoking Iran for years now – two decades, really. I just saw another report proclaiming that Iran is likely to attack the US, which is about as absurd as the allegations Bush made about Iraq bombing the US, when he fomented that invasion. It's starting to look rather serious at this point, so I do think the odds favor actual fighting in the not-too-distant future.
L: Could they really be so stupid?
Doug: You know the answer to that one. We're dealing with criminal personalities on both sides, and criminals are basically very stupid – meaning they have an unwitting tendency to self-destruction. One thing to remember is that most of those in power in the West still believe the old economic fallacy that war is good for the economy.
L: The old broken-window fallacy. Paraphrasing Arlo Guthrie, it's hard to believe anyone could get away with making a mistake that dumb for that long.
Doug: People like those in power still suffer the delusion that it was World War II that ended the Great Depression for the US. Actually, it was only after the end of the war that the depression ended, in 1946. In his book World Economic Development: 1979 and Beyond, Herman Kahn documented long-term growth throughout the 20th century. Between 1914 to 1946 – a very tough time, with WWI, the Great Depression, and WWII – the world economy still grew at something like 1.8%. I believe real growth would have been several times as great, were it not for the state and its products. But people still believe that spending money on things that explode and kill and destroy is somehow good for the economy.
L: I suppose they think it's okay if it creates jobs here and destroys lives and livelihoods "over there." But aside from the fact that it's not safe to assume today's enemies are not capable of bringing the battle onto US soil, it still ignores the fact that you're spending money on stuff that gets destroyed – like broken windows – and that impoverishes us all. Worse, the cost is not just economic.
Doug: That's right. This coming war with Iran has the potential to turn into something resembling WWIII, with enormous consequences.
Now, it's hard to speak with any certainty on such matters, because most of what we have to go on are press reports. Governments keep most really critical facts on their doings to themselves, and what you read in the press is as likely as not just a warmed-over government press release – in other words, propaganda. Meaningless, if not actively deceptive. It is correctly said that in war, truth is the first casualty.
L: But we do have the Internet these days, with indie reporters offering coverage ignored by the talking heads in the mainstream media.
Doug: True; it doesn't keep the chattering classes honest, but it does provide some diversity of spin, from which we can try to infer what's really going on. And from all the various sources – mainstream and alternative, Western and from within the Muslim world – I have to say that it appears to me that the Iranians are not actually developing nuclear weapons.
L: Then why do they act in such aggressive and bombastic ways?
Doug: Western powers are pushing them around, telling them what they can and cannot do, and treating them like children or mental incompetents with no right of self-determination. How else would you expect them to react? They may have a collectivist theocratic regime, but it's also a proud and ancient culture.
Now, as you know, I don't think there should be any countries at all – not in the sense of the modern nation-state, and I'm certainly no fan of the Tehran regime, but Iran is a sovereign state. The Iranians resent people from other countries assuming the right to tell them what they can and cannot do with their uranium enrichment program, just as people in the US would if Iranians told them what to do with… well, anything.
L: Do you have specific data to substantiate your view that Iran is not focused on creating nuclear weapons?
Doug: I was just reading about an official report that says that Iran is still not able to enrich uranium to the level needed to make nuclear weapons.
Uranium occurs in two isotopes with half-lives long enough to make it possible to find reasonable amounts of them in the earth's crust: U235 and U238. Most of it is U238 – 99.3% – but it's the U235 that's fissile, meaning, it's the one you want for making nuclear reactors and weapons. So you have to enrich your uranium – to about 20%-30% U235 to make reactor fuel and 90% or better to make weapons.
L: That's why the Russians are able to sell "downblended" uranium from decommissioned nuclear weapons for use as reactor fuel. So, you're saying the reports indicate that Iran is not capable of enriching uranium beyond the level needed for reactors?
Doug: Yes. But again, I have to stress that reliable information is very hard to come by. Remember when the US accused Iraq of having a program to develop so-called weapons of mass destruction? Apart from the fact that, except for nuclear weapons, that term is a complete misnomer, they had no such thing. It was either lousy intelligence or outright fabrication – and I suspect the latter. So how can we trust what they tell us today? Only a fool would be so naïve.
L: Indeed.
Read the full article here
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