Tuesday, June 10, 2008


Last month, German investigators raided the Bank of Melli in Hamburg and put a freeze on Iranian assets. Today, newspapers from London to Moscow have reported that Iran is quickly withdrawing funds from European banks. The Telegraph.co.uk reports that "front companies" headquartered in Dubai are withdrawing huge sums via transactions between Dubai and Dutch Banks. The funds are then forwarded to Tehran where Amadenijhad has entered dream land.

Five days ago, Amadenijhad followed up his threat to make Israel disappear by telling the Japanese that the US would soon disappear from this earth. Today, he is quoted in Iranian newspapers saying that the way can be found to spend Iranian oil money on the Iranian people causing inflation. When Amadenijhad came to power three years ago, he promised the people that they would enjoy the wealth and prosperity created by their oil wealth. Today, when the people have been forced to convert cars from gasoline power to natural gas power, his words have little credibility.

When the Minister of Finance resigned in April, Amadenijhad's economic management competence was questioned. Since then, the reported inflation numbers in the country have reached 25%. The CIA has stated that the countries inflation rate has been under reported by half for the past year. Other reporters say that the political and religious elite of the country have been alienated.


The UN negotiators have provided an easy way out. Accepting the terms offered would not represent a hardship for Iran. The damage done to Iranian pride can be restored by kicking Amadenijhad out of office and letting a new leader "make the deal". It is time for the second largest reserves of oil and natural gas to be developed. There are willing buyers and Iran should be a willing seller. It is time to complete the Iranian nuclear power plant and Russia is prepared to honor its commitments.

The rest of the world is ready for lower energy prices and the end to terrorist bombings. Conditions are ripe for peace and the cumulative total of stock market buy signals is about as strong as you will ever see it.