Finalist-PhilBlogAwards 2010

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Wednesday, June 22, 2016

$2000 CAR FROM INDIA SLAMS NORTHERN AUTOMAKERS’ RENT-SEEKING


$2000 CAR FROM INDIA SLAMS NORTHERN AUTOMAKERS’ RENT-SEEKING

 

Erle Frayne D. Argonza

 

Good morning from the suburbs south of Manila!

 

To continue with our exciting news for the ‘ember’ months, let me share some reflections about the recently released people’s car from India. The array of new innovations goes longer than that, with the car serving as the icing in the cake.

 

Beth Day Romulo, international journalist who’s the other half of the late Carlos P. Romulo who is one of Asia’s greats in the foreign policy field (former President of UN), featured the Nano car in her regular Sunday space at the Philippine Panorama, dated July 25, 2010. The Nano was engineered by the giant Tata group of companies of India, and sells at a very affordable $2000 apiece.

 

As Beth Day Romulo aptly titled, “In India, cheap doesn’t mean shoddy.” A sleek yet classy looking prototype, the Nano would surely be an envy of many countries up North who just couldn’t think of a car unless it sells past $25,000 apiece. Accustomed to the corrupted status-seeking behavior, the North’s customers would do everything in the books (e.g. get credit) to acquire flashy Mercedes Benz or Porsche and brag the same to their family circles and peers.

 

Mass markets are the in-thing in automotive industries as far as the bankrupt or near-death Northern car manufacturers are concerned. Flashy cars & SUVs would be okay for the fractional upper middle class markets up North and their clones down South, but for the larger billions of workers & professionals in emerging markets utility is the yardstick, hence the affordable folk car suits them well.

 

Before I venture into other thoughts, let me declare my own deep admiration for the Tata Group over its feats across the decades. I encountered this group during my own research on the steel industry in the late 90s, and in 1999 their representatives presented papers in the Manila-held conference of the Asian Iron & Steel Institute (I participated in that conference held at the Shangrila Plaza in Manila).

 

From Tata Steel to Tata metallurgies and now to automotives, what can I say but SALUTE! With top-of-the-line scientists among their design innovators, including the world-renowned steel expert Dr. Mukerjee, the only way for Tata to go is to jettison upwards in a very exponential fashion.

 

What the Tata Group is silently proclaiming to the world is that the price policy of Northern car makers is pure and plain rent-seeking practice. Look at the Volkswagen beetle for instance, a people’s car that is now priced at past $23,000 apiece, and that surely makes one have doubts about the ‘people’s car’  facet to the Volkswagen.

 

It’s all pure and plain rent-seeking. Profiteering is a more palatable term for the layman. Just like those Western pharmaceuticals that are produced for a mere $0.01 apiece but sell for over $1 per pill, rendering the pharmaceutical companies the top-gun of obnoxious rent-seeking firms.

 

I wouldn’t be surprised if we’d find out that a people’s car up North should be selling at merely $4000 apiece, using factors of production costs in their own backyards. A Beetle should be selling at $3000 or even lower, come to think of it.

 

At any rate, the peoples of the emerging markets have lives of their own, and they set the patterns of consumption on the basis of their own needs. Such as the need for utility cars that are truly ‘utility’ and not luxury items masquerading as utility.

 

As per report, the German engineering company Siemens had jumped the gun, by committing to mass produce and market the Nano in India, China, Russia, and Brazil. The Mumbai subsidiary of Siemens alone will produce half of the Indian innovations (Nano’s just one of them) that they’ve committed to produce and market.

 

As Beth Day Romulo reported, “While western engineers work on highly sophisticated products, the Indian engineers, who focus on high quality but low cost, aim at simplification and adaptation to the environment.”

 

Stressing on the infusion of social technologies to the engineering works, Madam Romulo concluded that “all of those devices and products are the result of local innovation, the engineers on the ground who study and recognize the needs of the Indian consumer.”

 

Not just the Nano car but also a whole array of innovations from India have been showing the way to the fusion of quality and consumer sensitivity in the product prototypes. This is what true development should be in terms of technological innovations: driven by people’s needs rather the pockets of greedy corporate executives and owners.

 

[Philippines, 02 September 2010]

 

[See: IKONOKLAST: http://erleargonza.blogspot.com,





 

Monday, June 13, 2016

USA’S LEADERSHIP HAD EVAPORATED, WHY OUGHT STOCK MARKETS FOLLOW?


USA’S LEADERSHIP HAD EVAPORATED, WHY OUGHT STOCK MARKETS FOLLOW?

 

Erle Frayne D. Argonza

 

Good day fellow global citizens!

 

It’s late afternoon here in the Philippines, daylight is still around though quite faded a bit. The time of the day seems to be delivering the message that there is still some light in the global economy, and that is a feel-good ambience.

 

Light there may be for the global economy, but that light no longer comes from the Western economies. Definitely no longer from the once mighty ‘economic superpower’ USA that had lost the leadership leverage this decade when it suffered two (2) successive recessions within a short span.

 

I’ve already treated the matter of declining Western techno-economic power and hegemony over the rest of the globe in many articles. There is hardly any serious, highly-informed analyst in the world today who doesn’t share the same view, a view that Western (Caucasian) social forecasters do likewise hold even as they forewarned the West of the catastrophes that will confront them.

 

Stock markets across the globe, however, just couldn’t adjust to the new reality soon enough. They still behave like old hush puppies that look up to Wall Street for precedence in setting the trends of local bourses. That renders the local bourses as laughing stock dinosaurs that need to retool quickly, and the quickest that such retooling will be translated into practice, the better will it be for their respective stock trades and financial-monetary markets.

 

To reminisce a bit, America was the unchallenged global leader after World War II as it contributed 40% to the Gross World Product or GWP. Its European & Japan partners contributed another 20% to GWP, so that empowered the USA & partners’ (OECD) 60% contribution to GWP to exercise hegemony in all regions of the planet.

 

Today, the economic landscape had entirely changed. The USA’s $13+ Trillion GDP is down 22% of world income, while the entire EU’s $13+ Trillion is another 22%. EU + USA/Canada + Japan put together couldn’t even amount to 50% of Gross World Product, so the old partners may just have to metamorphose out of their old identities and retool quickly. They no longer hold the planet’s collective purse and should desist from bullying other nations with their economic clout that is pathetically a non-clout today.

 

Herd behavior, of course, is the least that we can make of the behavior of plummeting bourses. “Follow the leader” mindset of cave dwellers is still in, a mindset that is a messy sticking point for retooling purposes.

 

Why should local bourses refuse to see the new reality and dis-engage from the antiquated herd instinct? After all, stock markets are the exclusive games of the big corporate boys and consummate traders who have been addicted to the casino economy of antiquity. They hardly matter for the real economy sectors, such as those of Asia’s that have effectively built firewalls between the real economy and casino stock markets.

 

If to serve a bit of relevance to domestic growth at all, local bourses ought to look at the health of their own domestic physical economies and financial-monetary wellness.

 

Take a look at East Asia. The region has been driving the global economy beyond doubt, its average investments and savings rates are high, gross international reserves are equally high, and the physical economy as a whole has shown the way to high value-added production. Stock markets should better follow the lead of the healthy conditions of their domestic economies rather than look up to an offshore global leader that is now a chimera.

 

Or, if they can’t resist looking at offshore patterns, then they should look at their very own regional backyards for such models. Regional integration has been the strategy of the day, so why get fixated to a dinosaur fiction (USA as leader) when there are regional economic patterns that can show the lead.

 

USA’s lead will never ever return, this is a foregone conclusion. And Europe ought to rethink its integration efforts, as the Eurozone is now hotly burning, so Europe better not behave like a global hero that can  fill up the vacuum left by the USA. A continent that is perennially flat on its back and is now burning in financial-monetary flames can never fill up such a vacuum.

 

As already articulated by me in previous articles, the Western markets will decline progressively across time. Consumption from 2007 through 2015 will decline by as much as 30% of their pre-recession levels. In contrast, Asia’s consumption will more than double during the same period, thus rendering Asia the unquestioned driver of the global economy in terms of (a) technological cutting edge, (b) production levels of the real economy, and (c) consumption levels.

 

In closing, just like the pattern for mega-cities where no one mega-city can be considered a global center today, so is it with national economies. Economic leadership has already been de-centered, global hegemony had been erased, and there can only be inter-dependence between markets as the most viable option. That interdependence should find translations in the bourses and currency markets.

 

[Philippines, 13 August 2010]

 

 

[See: IKONOKLAST: http://erleargonza.blogspot.com,





 

 

 

 

 

 

 

 

 

 

Thursday, June 02, 2016

ENERGIZING HINTERLANDS: DILEMMA OF ISLAND REPUBLICS


ENERGIZING HINTERLANDS: DILEMMA OF ISLAND REPUBLICS

 

Erle Frayne D. Argonza

 

Good morning from the Philippines suburban boondocks!

 

Erecting energy grids is the main thing in energy distribution and could be so for some decades to come. The Philippines has been among the most notably advanced in building a grid infrastructure in its large islands (Luzon, Mindanao), a precedent that has been emulated by other developing countries.

 

Observably, power production had somehow followed the course of grid infrastructures. That is, it had been facile to install and operate energy production plants for many countries, including island republics, following the distribution lines of energy grids.

 

The dilemma in power production comes with the hinterlands of developing countries. Situated too far distant from grid lines, energizing hinterland villages had proved to be a daunting task particularly for island republics.

 

Ironically, the Philippines has been one of those countries where many hinterland villages remain without power. The key reason is that tapping power along the grid lines for the hinterlands is simply un-feasible from a marketing sense, and so the solution is to build small-scale power plants in or near the villages themselves.

 

Even that option—of installing micro-power plants in situ—proves to be un-feasible using standard yardsticks of economies of scale. The solution adopted by RP’s energy experts is to innovate on hybrid technology, with clean technologies such as solar power on the frontline.

 

Two (2) years ago, the state’s energy department pronounced that merely 900+ barangays (villages) out of the country’s over 42,000 barangays remain without electricity. The regime of the previous president Gloria Arroyo promised to energize the said villages before her term ends in May 2010.

 

Alas! Arroyo’s term had already ended and a new president—Noynoy Aquino—has been installed to power, but the electrification of the said villages is nowhere in site! Just exactly what ‘barriers to entry’ continue to hound the hinterlands electrification program seems to be kept as tightly guarded secret by the energy department, a fact that is tainted with transparency questions (the mass media is a bit silent about the matter).

 

I do recall that the contemporary hinterlands electrification program in RP began yet with the incumbency of then Secretary Vince Perez, an investment banker, who sat in the post for four (4) consecutive years. He was later replaced by Popo Lotilla, a laywer and economist, with similar pronouncements made by his office regarding the matter. Angelo Reyes, former defense secretary, then replaced Lotilla as energy secretary, and heralded the same pronouncements about electrification targets for the hinterlands.

 

Secretaries Perez and Lotilla are brilliant minds no less, as I recall both gentlemen pretty well during our freshmen years at the University of the Philippines (Diliman, the flagship campus). They were my former dorm mates at the Kalayaan Residence Hall for freshmen, we were then the first batch of residents, and at that time I could already sense the aura of brilliance in the two gentlemen.

 

The energy sector surely grew more robust and dynamic during the incumbency of the energy secretaries Perez and Lotilla, and the patterns they set were then followed by those who replaced them later. I just hope that the visions and program targets their respective offices have set will be followed without reserve, as time had already elapsed since they left their respective offices (they are now back to their private practice).

 

With a new president now sitting in power, the question remains the same: will the 900+ villages see the electric lights at night very soon? Or, will the same villages continue to wallow in the ‘dark age’ of zero electricity?

 

Meantime, let us hope that the situation for other island republics isn’t as bad as it is in RP that leads the world in grid technologies yet is lackluster in electrifying the hinterlands. What sayeth New Zealand and its development experts concerning the matter? [NZ is an island republic too, and it seemed to have made enormous mileage in total electrification.]

 

[Philippines, 31 August 2010]

 

[See: IKONOKLAST: http://erleargonza.blogspot.com,





 

 

 

 

Friday, May 20, 2016

FUSION NUCLEAR ENERGY: CHINA TAKES R&D LEAD


FUSION NUCLEAR ENERGY: CHINA TAKES R&D LEAD

 

Erle Frayne D. Argonza

 

Good afternoon!

 

Large swaths of lands in Asia were recently flooded, which paints a gloomy landscape in China, India, and Pakistan. Flooding, however, doesn’t kill civilizations, and floodwaters should be viewed on the positive side as providing, after calamities, much needed water and energy source.

 

As history has shown, it is the sudden absence of water, via large-scale calamity, that had killed many civilizations in antiquity. For as long as we have plenty of water reserves in the planet, civilization will continue. As energy source, water has provided hydro-electricity, geothermal (heated water from underground sources), and fuel cell medium (electrolysis).

 

The present onrush of waters could, in fact, serve as blessing to crack the news of a new form of energy: fusion nuclear energy. Talked about for decades as mere theory in classroom chemistry and physics and in coffee shops, fusion energy is now becoming more of a reality each day.

 

China unquestionably leads in the research & development efforts on fusion energy. Sometime in mid-2008 yet, the news leaked out to the world that China’s research scientists were able to make a breakthrough in the research phase of fusion energy. As per information leaking out, China is ahead of the rest of the world by at least a decade.

 

Reports had it at that time that a commercial breeder plant was still around ten (10) years in the offing. That means the earliest time for the release of such a breeder plant will be around 2018 yet. A tedious process indeed it is to perfect a model for commercial usage, but time runs fast these days, so let us anticipate the formal release of the first prototype just couples of years away from now.

 

The era of clean energy will surely receive a boost when fusion begins to roll, and by next decade we can safely forecast that fossil energy will rapidly decline in importance leading to its demise before 2030. I just wish the time table for burying fossil energy could be shortened, and like everyone else who is tired of the machinations of the oil oligarchs and financier-speculators in spot markets, I could hardly wait to offer dirges to fossil fuels.

 

[Philippines, 30 August 2010]

 

[See: IKONOKLAST: http://erleargonza.blogspot.com,





 

 

 

 

 

 

 

Friday, May 06, 2016

EURO-AMERICAN BANKRUPT COMPANIES ARE LEPERS, ASIANS BE WARY!


EURO-AMERICAN BANKRUPT COMPANIES ARE LEPERS, ASIANS BE WARY!

 

Erle Frayne D. Argonza

 

Leper Companies, Inc. could very well describe the so many huge corporate entities in the West that are now expectantly waiting for some investors to breath fresh life into them. The compass of that search points to Asia as the source of the badly needed ‘smart money’.

 

What a mess indeed had Western economies turned into, as their respective enterprises have been crashing to bankruptcy levels after liberal policies have become granite rock in them since the Thatcher-Reagan era. De-industrialization, massive loss of jobs, and measly investments in S&T have made elephants out of huge companies such as the once mighty Bethlehem Steel.

 

“Bankruptcy! Bankruptcy!” would be an apt line in a classic opera production in New York and London, save that even classic opera groups of the West might even go the bankruptcy route. From manufacturing to culture industry, inclusive of Hollywood stalwarts, Western companies are going down the drain one after the other.

 

Insatiably greedy financiers are of course waiting in the wings to dip their hands into those crashing industries, waiting for the moment to buy them at dirt cheap prices. They did that after the 2nd world war, a war that the global oligarchy created, when they bought so many European factories at rummage sale. Their war chest had been reinforced by slash funds past $3 Trillions circa 2007 yet, so they’re ready for the ‘ukay-ukay’ transactions any time (‘ukay-ukay’ is Filipino term for re-sale of used clothes at cheap dirt prices).

 

The same financier oligarchs did the rummage buying spree on former Soviet bloc economies’ flattened factories groups, with mafia groups joining the fray for purchase of the rummage sales. At one instance in the early 90s, Russia’s mafia groups owned and controlled 80% of the rummage industries, thus prompting patriotic KGB chekka to replace then incumbent president Yeltsin, a puppet of the financier oligarchs, with Putin.

 

Asia has been the undisputed driver of the global economy more so when both USA and Europe began burning economically as early as 2007. Logically, the compass of SOS for fresh investments and loans would be Asia notably the China-Korea-ASEAN-India corridor.  

 

The involvement of the Indian group Mittal in purchasing Alcelor of Europe is classic case of Asian buys. Bookkeeping accounts seemed to have served Mittal right then, with the merger not exactly draining down the stock value of Mittal in the bourses. Mittal-Alcelor came to be born as the largest steel producer, churning out a total volume of 100 tons of steel every year (toppling Korea’s POSCO as top producer).

 

That was then. The times have quite changed in an era when changes happen so rapidly. Western enterprises, notably those of the USA’s and EU’s, are magnets for perceptions of being leper corporations. Getting associated with them could burn down an Asian company’s own par value, and whether the trend could be reversible is something that is tantamount to launching a Herculean PR campaign to reduce negative perceptions owing to buy-ins/mergers.

 

Enormous window dressings have to be applied to the accounts of the leper companies too so as to sweeten their toxically sour values and make them more palatable to Asian investors. Whether Asia’s negotiating agents are naïve to the window dressings is something worth researching.

 

Caucasians still have that perception—conscious and/or unconscious—of Asians as “monkeys with no tails” (subhumans) who can be lured into traps without the latter noticing it. Western financier oligarchs led by the likes of the UK-Netherlands royal houses and Rothschild empire will brook no quarters in condescending on Asians who they regard as cattle or eaters worth controlling, subordinating as Mandingos, and short-changing in business transactions.

 

Such a perception hasn’t changed. Look at how the Indian executives of Mittal et al are perceived in Europe today not just by the oligarchs but by the White executives in their payroll. Why don’t you examine case studies in Western business schools and find out for yourself whether Asian groups are worth studying at all in the West. It’s the same old Victorian perception of racial hubris and arrogance at work!

 

That may just be what western ‘corporate social responsibility’ is all about: to continue derisively condescending at former Asian colonies by dangling carrots to poor communities in Asian backyards. In exchange, Asian ‘smart money’ moves to the West to ensure that leper companies keep on churning out more funds, with 1% of the profits later to allocated for ‘corporate social responsibility’.  

 

Is that what we can regard as an impeccable fair exchange?

 

[Philippines, 13 August 2010]

 

[See: IKONOKLAST: http://erleargonza.blogspot.com,





 

 

Monday, April 25, 2016

RURAL DEVELOPMENT SHOULD BE TOP PRIORITY WORLDWIDE


RURAL DEVELOPMENT SHOULD BE TOP PRIORITY WORLDWIDE
 
Erle Frayne D. Argonza
 
Good evening from the Philippines’ highland suburbs!
 
For this note I will focus on the thesis that rural development should be pursued by developing countries. The world’s nations have pursued growth that has been badly skewed towards urbanization and commercialization since after World War II, a total effort that has seen many people become poor as a result. Most of the poor folks are in rural hinterlands and fisherfolks.
 
The Philippines is a classic case in point that has been direly affected by the badly skewed development in favor of urbanization, an endeavor that has been fostered at the expense of rural communities of farmers, fisherfolks, and Indigenous Peoples or IPs. Today, Philippine population is 66% urban and 34% rural, with 2% added to urban population every year.
 
As urbanization grows, rural poverty likewise grows in my beloved country. Rural to urban poverty ratio here is 2.5:1 and is still moving up. It was 2.1:1 in 1989, and the situation has been deteriorating ever since. 70% of the country’s poor families are rural, with only 30% as urban. Very clearly, between the two, it is rural development that must be pursued with vigor to reverse the poverty situation in the country as a whole.
 
To demonstrate what I mean by skewed development, consider the following information:
 
ü  MetroManila or simply Manila, the national capital region (NCR), produces 30% or nearly 1/3 of the nation’s wealth. Yet it supports merely 12% o3 1/8 of the nation’s population.
 
ü  As of end of 2009, Manila contributed a whopping US $65 Billion to the country’s $186 Billion GDP or gross domestic product. Using UNDP converter index, Manila’s GDP, multiplied by 4, registered an enviable $260 Billion-Purchasing Power Parity or PPP for 2009, rendering it as wealthy as the whole of Vietnam.
 
ü  Included among the world’s 35 most wealthy and powerful mega-cities—comprising the ‘global nexus’—Manila’s economy remains at 65% services and 35% industries, with nary a food base worth documenting. These economic sectors are the highest in value-added, ensuring high levels of income for all component cities and towns of the mega-city.
 
ü  Poverty in Manila has been reduced to a manageable 8%, rendering it on an even much better situation than the USA’s whose poverty incidence had climbed from 12% in 2002 to 15% today. Manila has all the resources it needs to solve its own poverty and development problems, which made it drastically reduce poverty since the 1990s.
 
ü  Therefore, Manila should no longer be subsidized by national government in terms of development projects, from roads to international airports (Los Angeles & US cities are building their own airports without federal or state government support). Yet, as records show, billions of dollars are still being poured by national government to bankroll gigantic projects here, such as lightrail systems, international airport expansion, and flood control.  
 
ü  On top of those national government-initiated projects is Pagcor City, a world-class theme park-cum-gaming complex that is costing U.S. $25 Billion (with private participation). It will employ 250,000 and will house the world’s tallest tower. It is targeted for completion in 2014.
 
So, as you can see from the Philippine case, whereas the mega-city receives billions of dollars for new projects and urban renewal, the rural areas continue to wallow in appalling states of abject poverty. Lucky enough if a region outside Manila would be appropriated P1 Billion or U.S. $24 Million at any given year from the pork barrels of Congress.
 
Fisherfolks in my country are particularly the most vulnerable to poverty and deleterious living conditions spawned by it. With poverty incidence at 66%, you could easily see why past 40% of fisherfolks’ children suffer from advanced malnutrition. The situation of over-fishing in the entire country compounds the poverty situation of marginal fisherfolks who can ill afford to equip themselves with state-of-the art fishing gears to compete with commercial fishers.
 
To say that the Philippines is in a transition phase, and that poverty and malnutrition will disappear it time as the country reaches development ‘maturity’, is pure delusion. Without active intervention to improve the capacities and capabilities of fisherfolks, farmers, and IPs, the problem of poverty will never fade away but will, as a matter of fact, worsen with time.
 
With so many rural folks wallowing in cesspools of pauperization, we can at best watch more rural insurgencies feast upon the resentment-filled minds of the rural poor. As the Philippine case has shown, past rural insurgencies have ceased only to be replaced by new, bigger, and more ferocious insurgencies.
 
[Philippines, 11 August 2010]
 
[See: IKONOKLAST: http://erleargonza.blogspot.com,
 
 

Friday, April 15, 2016

ISRAEL PREPARES TO COMBAT IRAN: SEMITE-PERSIA WAR HASTENS


ISRAEL PREPARES TO COMBAT IRAN: SEMITE-PERSIA WAR  HASTENS

 

Erle Frayne D. Argonza

 

Good evening from the Philippines’ suburban boondocks!

 

Just a couple of weeks back, this analyst wrote and published briefer articles about the forthcoming war between pan-Semitic Zion-Sunni alliance and Persia (Shiite Iran). Barely had I rested from the theme of racial awakenings and the coming conflict, when news came out that Israel is now preparing to combat Iran head-on.

 

Just about a couple of days ago, I wind up of news from the internet economic intelligence reports that Israel is indeed preparing for a unilateral military strike on Iran. Accordingly, the United States is not privy to this conflict, even as its hands are heavily tied up in procuring peace between Israel and Palestine (the efforts will pay off eventually as I forecast rightly).

 

Accordingly, political groups from Israel who represent both Likud and Labor are strongly opposed to the unilateral strike, and are doing what they can to stamp out the planned action. The same anti-war forces have uncovered an agreement between the Israeli premier and the defense establishment to seal the strike plan and commence with war exercises pronto.

 

Meanwhile, reports had it that former intelligence officials of Israel, who are opposed to the war, have unwind of the Israeli military exercises now going on inside Romania. As to when the exercises will be concluded will be the subject of some more extra information gathering.

 

As per assessment from the oppositors themselves and from independent analysts, the combat missions will be launched in the months ahead. Let it be stressed again: MONTHS AHEAD and not years ahead of the present juncture.

 

A war with Iran will surely be an expensive one, and needed to be bankrolled by certain oligarchic forces. We can only surmise, based on near-catastrophic economic events in Europe, that the Anglo-European oligarchy is desperate to recoup from possible losses in the financial-monetary markets precisely by propping up their favorite currencies (dollar, pounds, euros, yen) through a calculated politico-military turbulence in Western Asia.

 

The bankrollers’ home point to Europe as far as our analysis holds. The same oligarchs are aching to prop up the dollar through derivative market gimmickries that have, as of late, been proving to be dead end solutions to their greed accumulations. Bankrupt with ideas as to how the financial-monetary system they built for centuries can still hold up to the global economic roof, they are now planning to unleash the propping up of oil price via a war.

 

The oligarchs’ own financial looting agenda incidentally coheres with the Arab sheikhdoms’ agenda of inflating their own oil, local currencies and the dollar for the same purpose, with the addition that the sheikhs mortally dread Shiite Iran. As already articulated by me before, such a dread springs from the ancient unconscious dread of Persia, a dread that is now re-surfacing after almost 2000 years of dormancy.

 

We won’t be surprised if the sheikhdoms will partly bankroll Israel’s frontal combat missions, with part of the cash registers shouldered by the Rothschild & Soros and financier circles. Not only that, the sheikhdoms may offer the bonus of permitting the use their territories for Israeli flight passes, landing, refueling, even for depository of military ordnance.

 

The dread of Persia is very extensive, which covers the entire ancient territories of Assyria-Canaan-Hyksos-Hamites-Berbers-Nubians. That’s a whopping 5-6 million square miles of territories populated today by over 500 million people, from Western Asia up to the western tip of North Africa (belt of lands north of the Sahara).

 

That does not include yet the peoples of the ancient empire of Bharat (India) that have confronted Persia’s might in antiquity. Pakistan, Kashmir, Afghanistan and central Asian states represent those territories and their descendants today.

 

For sure, those peoples and territories mentioned are now watching the unfolding events very closely. As the military preparations will build up, so will the tensions build up, backed up by negotiations about the alliances to be formed.

 

It is too early to see the exact membership of alliances from each side. For now, we can only presume that the axes of conflict will be the Zion Israel-Sunni Arab axis on one hand, and the Shiite Iran-Hezbollah-Hamas axis on the other hand. There will be fill-in-the-blanks on either side as the war nears, with horse trading done below the table.

 

Let’s all better observe the events closely, as this war won’t just be confined between Israel and Iran. Even before Christmas, the shaping war will sicken the world’s diverse bourses from West to East, thus leaving a bad taste to our annual Christmas and year-ender celebrations.

 

[Philippines, 23 August 2012]

 

[See: IKONOKLAST: http://erleargonza.blogspot.com,