With republicans back in control, it was only a matter of time before the military-industrial complex reminded the world of its existence. It took about 72 hours: republican senator Lindsay Graham, who apparently has not received the memo that all modern wars are now waged in binary, and are won by those who can push the FX bid/ask the furthest and the fastest away from equilibrium, spoke at the Halifax International Security Forum, giving a very distinct taste of what US foreign policy is about to look like: "Iran is a major threat to any conceivable world order" and that he sees an almost inevitable confrontation with Iran. As AP reports, the South Carolina Republican saw the United States going to war with the Islamic republic "not to just neutralize their nuclear program, but to sink their navy, destroy their air force and deliver a decisive blow to the Revolutionary Guard, in other words neuter that regime." And the Democrats, still in shock over their recent pummelling, will likely not have the resolve to respond palliatively to such warmongering, which they likely deem as supported by the broad population: "US Democratic Senator Mark Udall, who joined Graham during a panel discussion at the forum in Halifax, Nova Scotia, urged continued sanctions against Iran. But he also noted that "every option is on the table," a thinly veiled reference to possible military action." And just when the world was getting along so well, and all the international bickering appeared to be taking place over various Forex terminals...
More from AP:
The United States faces a possible war with Iran to curb its nuclear ambitions and a "period of confrontation" with China over its currency, a top US lawmaker warned Saturday.
Republican Senator Lindsey Graham said his fellow conservative, fresh from their historic elections romp this week, support "bold" action to deal with Iran.
If President Barack Obama "decides to be tough with Iran beyond sanctions, I think he is going to feel a lot of Republican support for the idea that we cannot let Iran develop a nuclear weapon," he told the Halifax International Security Forum.
"The last thing America wants is another military conflict, but the last thing the world needs is a nuclear-armed Iran... Containment is off the table."
Furthermore, the fact that Iran recently converted 15% of its $100Bn+ in reserves into gold did not win it any brownie points with the global central banking cartel.
Yet perhaps war may be avoidable:
Democrats may gain surprise support for continued diplomacy from some ultra-conservative Tea Party newcomers to Washington who diverge on foreign policy matters with their Republican brethren.
Various UN resolutions and sanctions have sought to halt Iran's uranium enrichment activities, so far having little effect.
Then again, maybe not. It has been a while since assorted logistic and military airplane manufacturers reported blowout quarters. Time to change that.
And if Graham has his way, soon the US may need to send an aircraft carrier or 17 over to the South China Sea.
Graham also warned of a forthcoming "period of confrontation" with China over its "cheating" currency manipulation.
US and European lawmakers have called for a stronger Chinese currency as their economies struggle to recover from the global financial crisis. US lawmakers claim the yuan is grossly undervalued and causes global trade imbalances.
Several countries ranging from Japan to Colombia have intervened in recent weeks to make their currencies cheaper in the hope of exporting their way out of the downturn, fueling fears of a global currency war.
Currency tensions boiled over at the recent annual meetings of the International Monetary Fund in Washington, with China rejecting calls for a quick revaluation.
Surely, those cheating Chineses will be delighted to be called cheats again, just two days after advisors to the PBoC called unbridled printing of dollars "the biggest risk to the global economy and said China should use currency policy and capital controls to cushion itself from external shocks." We can't wait to read the glowingly favorable, two thumbs up rebuttal in tomorrow's China Daily.
Perhaps before we hit the launch button, we should familiarize ourselves with the following chart which shows that for the first time ever China is now ahead of the US in number of warships.
Last but not least, we are eagerly awaiting the release of a tape by Al Qaeda, spotlighting bin Laden's congratulations to the republican party over their victory.