The March 20, 2008 US Declaration of War on Iran

[Hannah Bell]

by John McGlynn

...No, there was no dramatic televised announcement by President George W.... But make no mistake. As of Thursday, March 20 the US is at war with Iran. So who made it official?

A unit within the US Treasury Department, the Financial Crimes Enforcement Network (FinCEN), which issued a March 20 advisory to the world's financial institutions under the title: "Guidance to Financial Institutions on the Continuing Money Laundering Threat Involving Illicit Iranian Activity."...FinCEN charges, all of Iran's banks -- including the central bank (also on FinCEN's list) -- represent a risk to the international financial system, no exceptions....

To summarize to this point: (1) the March 20 advisory represents a US declaration of war by sanctions on Iran and a sanctions threat to the international banking community, (2) the US has various unilateral financial sanctions measures at its command in the form of executive orders and Patriot Act Section 311 and (3) the BDA-North Korea sanctions were, at least in retrospect, a test run for Iran...

...a Section 311 designation of Iran's central bank would have a powerful coercive effect on the world's banks. For any bank in Europe, Asia, or anywhere else that goes near the central bank once the 311 blacklist is on ...Not only would that bank be barred from the US financial market, it would also be shunned by European and Japanese financial markets, as government and private banking officials in those markets are likely to cooperate with Washington's intensifying sanctions campaign.

China and Japan "were the top two recipients of exports from Iran... On the import side... in 2006 "Germany and China were Iran's largest providers of imports... sanctions imposed on Iran would presumably make the financial administration of this trade next to impossible.

What then will the impact be of this US-Iran banking standoff? For the US, almost no impact...Iran, however, will become another Gaza or Iraq...

That Iran's complete financial and economic destruction is the goal of US policy was spelled out by the State Department the day before the FinCEN announcement.

http://mrzine.monthlyreview.org/mcglynn240308.html

[leveymg]

1. "government and private banking officials in those markets are likely to cooperate with Washington"

Nyet. Not after the Administration's own position on Iran's alleged nuclear weapons program was shattered by the Iran NIE.

There's simply no basis on which to ground a punative sanctions regime. Even a financial one.

This too will be ignored.

[formercia]

2. Likely to backfire

Oil and other trade with Iran is becoming more valuable than trade with the US. You can't run an economy without energy and Iran supplies a good percentage of the World output.

The US has lost most of its moral authority in the World.


I think it will hurt the US more than Iran.

[Ian_rd]

3. I think you're correct. Iran offers energy for trade. What do we offer?

We don't make anything in this country anymore. All we used to have was the money to buy other nation's goods, now GWB has made sure we can't do that either. Our government still walks and talks like we have power, authority and respect in the world. GWB has reduced us to the crazy fat homeless guy in the alley who might one day snap and punch you in the face and take your money. Best avoided.

[formercia]

4. Dropping the Dollar as a medium of exchange.

There are a lot of countries that are looking for an excuse to drop the Dollar as a medium of exchange. This may be the catalyst to evoke the death rattle.

It reminded me of this:

http://youtube.com/watch?v=AkNDQD0gkAU&feature=related

[Bandit]

5. There is another world banking system being set up to get away from American influence

It is called the Bank of the South and is being set up by Venezuela and other South American countries. It won't be long until it rivals or surpasses the World Bank. America is losing it's ability to influence financial matters throughout the world.

[dixiegrrrrl]

6. Hoisted by their own petard

good for SA to counter like that.

[Hannah Bell]

7. "America" is. But what's that?

It's always been the political arm of a certain class of people.

Have those people disappeared?

No, they're just moving on to another configuration.

They still own the world.

[Javaman]

8. The colonization will not be televised. nt