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Did Obama Just Set Off A Global Nuclear Arms Race By Signing The Iran Deal?

Tyler Durden's picture




 

On one level, it’s easy to forgive those who fall victim to unintended consequences when their actions were clearly meant to promote the greater good. 

On another level, leaders - whether operating in the public or private sector - are expected to demonstrate some degree of foresight when making important decisions so that the consequences of those decisions don’t end up being so detrimental as to negate entirely any perceived benefits. 

A good example of this in the corporate world is Wal-Mart, where a presumably well-meaning attempt to raise the wages of the retailer’s lowest paid employees turned into a veritable disaster that led directly to a series of attempts to squeeze more “value” out of the supply chain and culminated in this week’s utter corporate carnage (see here).

In the world of geopolitics, the quintessential example may well be the Iran nuclear deal. 

Just as “higher wages for everyone” sounds good on paper, “deterring nuclear proliferation” sounds great from a “save humanity” perspective.

However, the fact that Iran has a right to develop technology that will deter its enemies (some of whom are nuclear powers), and the fact that frankly, it makes little sense for the US to take on the role of global nuke police officer given that history shows America indeed cannot be trusted not to nuke people, means that any deal Washington strikes regarding nuclear proliferation is likely to engender a series of unintended consequences thanks to rampant counterparty mistrust.

Case in point: before the ink was even dry on the Iran deal, Tehran i) stepped up its on-the-ground involvement in Syria, ii) flouted international inspectors by taking its own samples at Parchin, and best of all iii) test fired a new type of advanced ballistic missile on the way to proclaiming that the country will not be asking "anyone’s permission to enhance defense power or missile capability and will firmly pursue defense plans, particularly in the field of missiles." 

Clearly, Iran saw Washington’s stance in the negotiations as a sign of weakness and, realizing that because the deal is an important part of Obama’s legacy and therefore The White House cannot afford to scale it back, proceeded to defy the spirit (if not the letter) of the agreement at every turn. 

Well don’t look now, but more unintended consequences of the “historic” nuclear arrangement are beginning to show up. It now appears as though one key element of the deal may be set to spark a Mid-East (and perhaps global) nuclear arms race. Here’s AP:

The landmark Iran accord to curb its nuclear weapons in exchange for economic sanctions relief allows Tehran to enrich uranium. In barely noticed testimony last month, Rep. Ed Royce, R-Calif., chairman of the House Foreign Affairs Committee, said the UAE's ambassador in Washington, Yousef al-Otaiba, had informed him in a telephone call that the country no longer felt bound by its previous nuclear agreement with the United States.

 

"He told me, 'Your worst enemy has achieved this right to enrich. It's a right to enrich now that your friends are going to want, too, and we won't be the only country,'" Royce said in a phone interview with The Associated Press this week, elaborating on his testimony.

As an aside, don't forget that the Iran-backed Houthis in Yemen sent 45 UAE soldiers home in bodybags last month. 

Back to AP:

In a 2009 pact with the UAE, the United States agreed to share materials, technology and equipment for producing nuclear energy. In the accord — known as a 123 Agreement — the UAE made a bold pledge not to enrich uranium or reprocess spent fuel to extract plutonium, two pathways to an atomic weapon.

 

Asked to respond, the UAE Embassy in Washington sent a one-sentence email that said the "government has not formally changed its views or perspective on the 123 Agreement or commitments." The UAE has said in the past that it welcomes the nuclear deal reached with Iran.

 

However, Royce said al-Otaiba told him that the UAE "no longer felt bound" by those provisions of the agreement. While he said al-Otaiba did not explicitly state that his country was walking away from them, Royce said, "I took that to mean that they had the right to do that and that it was under consideration."

 

Royce and other opponents of the Iran nuclear deal have repeatedly warned that the accord will unleash a cascade of proliferation in the unstable Middle East or set off an arms race in a hotbed for terrorists. Proponents say it will make the region safer by preventing Tehran from having the means to produce bomb material for more than a decade or longer.

 

At a House subcommittee hearing on Sept. 10, Rep. Michael Turner, R-Ohio, quizzed Frank Klotz, administrator of the National Nuclear Security Administration, about whether the UAE had contacted the U.S. about wanting to forego the part of the 123 Agreement that restricts it from enriching uranium. Klotz said he had no knowledge of it.

 

The United States has signed similar 123 Agreements with about 20 countries. The name comes from Section 123 of the U.S. Atomic Energy Act, which requires such accords when the U.S. is transferring significant amounts of nuclear material, equipment or components to other nations for peaceful energy production. The goal is to prevent further proliferation of material that also can be used to build nuclear weapons.

 

The UAE's pledge not to enrich has been dubbed the "gold standard" in 123 Agreements. 

Yes, the "gold standard" in 123 agreements, which means America is about to go "off the gold standard" (so to speak) thanks to Obama's deal with President Rouhani. Here's a bit more on 123 Agreements from the National Nuclear Security Administration:

Section 123 of the U.S. Atomic Energy Act requires the conclusion of a specific agreement for significant transfers of nuclear material, equipment, or components from the United States to another nation.  Section 123 Agreements are important tools in advancing U.S. nonproliferation principles.  These Agreements act in conjunction with other nonproliferation tools, particularly the Nuclear Nonproliferation Treaty, to establish the legal framework for significant nuclear cooperation with other countries.  Moreover, the Agreements allow for cooperation in other areas, such as technical exchanges, scientific research, and safeguards discussions.  In order for a country to enter into such an Agreement with the United States, that country must commit itself to adhering to U.S.- mandated nuclear nonproliferation norms. The United States has entered into agreements with the following states or groups of states:

States that have Agreements for Cooperation with the United States:

  • Argentina
  • Australia
  • Brazil
  • Canada
  • China
  • Colombia
  • Egypt
  • European Atomic Energy Community (Euratom)1
  • International Atomic Energy Agency (IAEA)
  • India
  • Indonesia
  • Japan
  • Kazakhstan
  • Korea, Republic of (ROK)
  • Morocco
  • Norway
  • Russia
  • South Africa
  • Switzerland
  • Taiwan
  • Thailand
  • Turkey
  • Ukraine
  • United Arab Emirates

And so, it would appear that America's Nobel Peace Prize winning President and Washington's bike-racing Secretary of State have inadvertently stumbled across what might end up being the most catastrophic unintended consequence in the history of statecraft. 

That is, the Iran nuclear deal may have just caused all of the nations on the list shown above to reconsider their commitment to the "gold standard" of nonproliferation. 

So rather than deter Iran - which clearly hasn't worked, given everything noted above - all Washington has done is cause the rest of the world to question whether they too can take steps towards building a bomb and with that, we may have just witnessed a foreign policy blunder that trumps what we've been witnessing in Syria - and that's saying something.

Section 123

 

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Fri, 10/16/2015 - 12:18 | 6675421 jughead
jughead's picture

Unintended consequences?  It's not like these idiots were not warned of the potential results of their naivite. 

Fri, 10/16/2015 - 12:23 | 6675440 Wahooo
Wahooo's picture

So the guy from the UAE is telling us who our worst enemies are, eh? Well fuck him.

Fri, 10/16/2015 - 17:50 | 6677084 Bazza McKenzie
Bazza McKenzie's picture

And he didn't name Obama, so doesn't know what he's talking about.

Fri, 10/16/2015 - 12:25 | 6675449 TAALR Swift
TAALR Swift's picture

Obama: "Say, Ayatollah, is that a rocket in your pocket?"

Fri, 10/16/2015 - 12:31 | 6675482 VladLenin
VladLenin's picture

I've ordered mine!  With Amazon Prime, you can get a 50kT warhead and cruise missile delivered by Chrsitmas!

Fri, 10/16/2015 - 12:32 | 6675487 roadhazard
roadhazard's picture

I don't think any country has the balls to start a nuke war until it's already too late for them. It's the loose nuke material in Russia and their ex-satellite States that Neanderthals try and make a buck at by selling it to Mid East ragheads. Ragheads want Everyone to live in Sandland and eat with one hand. 

Fri, 10/16/2015 - 12:32 | 6675489 Able Ape
Able Ape's picture

The "miracles" of that little country are par with the "miracles" of the SS Storm Troopers during WWII....go peddle your shit somewhere else...

Fri, 10/16/2015 - 12:36 | 6675506 Teh Finn
Teh Finn's picture

But enough about Rus.

Fri, 10/16/2015 - 12:35 | 6675499 orangegeek
orangegeek's picture

No shit barry wants war.

 

Wars occur at market bottoms, but since the 1% is so leveraged at these market levels, the only way to make things go up is to slaughter millions of people and blow things up.

 

Paybacks are a bitch barry.

Fri, 10/16/2015 - 12:43 | 6675534 Baby Bladeface
Baby Bladeface's picture

Another non sense article.

Unable to address reality straightly while being aware of it.

Just a repeation of the same extremelly low quality drivel debunked since years ago.

Fri, 10/16/2015 - 12:43 | 6675539 lordkoos
lordkoos's picture

Much ado about very little. Iran is a regional power -- if the US really wanted to contain it and have a balance of power in the region, then they shouldn't have destroyed Iraq.  

Keep your friends close and your enemies closer.

Fri, 10/16/2015 - 12:48 | 6675555 DFCtomm
DFCtomm's picture

history shows America indeed cannot be trusted not to nuke people

 

The massive casualties from an invasion of Japan might have been worth it, if it would have taken out your grandfather before you had been born.

Fri, 10/16/2015 - 14:06 | 6675932 venturen
venturen's picture

and japan were the good guys...please!

Fri, 10/16/2015 - 15:41 | 6676455 DFCtomm
DFCtomm's picture

The problem with ZH is that people are so damn anxious to write something that they fail to read, or understand what they are replying to.  The first part of my comment was a quote from the article, and that's why it's in bold. My comments not in bold followed.

Fri, 10/16/2015 - 13:03 | 6675620 squid427
squid427's picture

Just because a consequence was unitended does not mean that it was unknown. I believe they were aware of the consequences and moved forward anyway. The scumbag-in-cheif's preceived legacy is more important than the reality that will be left behind.

Fri, 10/16/2015 - 13:58 | 6675892 Herdee
Herdee's picture

How come Israel is missing?Are they exceptional like Obuma from debt ridden Chicago?

Fri, 10/16/2015 - 14:04 | 6675922 Ghost of Robotrader
Ghost of Robotrader's picture

And Obama's alternative was?  Anybody wanna answer that?  We didnt go to war with north korea nor pakistan to stop nuclear weapons development.  Iran and a half dozen other nuclear powers will join the club in 20 yeara or less.  It doesnt matter what we do.

Fri, 10/16/2015 - 17:48 | 6677078 Bazza McKenzie
Bazza McKenzie's picture

It was pretty simple.  Maintain the embargo, particularly on developed countries selling nuke tech to Iran, don't give them $150B, none of which required going to war.  But none of that would give Obama a photo op.

The going to war BS is typical Obama nonsense that you appear to have sucked in.

 

Fri, 10/16/2015 - 14:20 | 6676001 Dickweed Wang
Dickweed Wang's picture

This whole article is bullshit.  If countries like the UAE and Saudi Arabia don't already have nukes they could probably easily get them by using their massive piles of cash to buy them from say - North Korea or Israel.  My guess is that there are nukes all over the middle east right now (micro - less than 1kt, mini - up to 5kt and tactical - up to 25kt sized ones at least) and all of this is just kabuki theater for the sheeple . . .

Sat, 10/17/2015 - 01:21 | 6678331 honestann
honestann's picture

Nations that have nukes tend to feel secure, because they can feel near certain their potential adversaries will never invade, due to the likely extreme consequences.

This tends to make relations more stable, more non-hostile and more cooperative.  The cost, of course, is that if and when the implied MAD aspect breaks down, the consequences could be quite substantial.

Which is better?  Weather that is perfect all day and night, every single day for eternity... but with a one-in-a-thousand chance of a category 8 cyclone someday?  Or really crappy weather all the time, but nothing ever worse than category 5 cyclones.

Take your pick.  Neither is perfect.

Sun, 10/18/2015 - 02:43 | 6681232 onmail1
onmail1's picture

Iran must start selling nuke tech & material to anyone

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