Iran’s Fortified Bunker, Why?

Concessions abound as John Kerry is desperate to get a deal.

“We can see a path forward here to get to an agreement, we can see what that path might look like,” the official told reporters, cautioning however that this “doesn’t mean we’ll get there.”

Six world powers negotiating with Iran since late 2013 want Iran to disable parts of its nuclear infrastructure in order to put an atomic bomb out of reach and end a 12-year standoff.

After missing two deadlines in 2014 to turn a interim accord struck in November 2013 into a lasting deal, the parties set March 31 for a “framework” agreement with a full pact to be agreed by July.

But it remains unclear how detailed the framework between Iran and the six powers will be, particularly with the United States and France appearing split on the issue.

 

The US may let Iran run 6,000 uranium centrifuges in a fortified bunker

LAUSANNE, Switzerland (AP) — The United States is considering letting Tehran run hundreds of centrifuges at a once-secret, fortified underground bunker in exchange for limits on centrifuge work and research and development at other sites, officials have told The Associated Press.

The trade-off would allow Iran to run several hundred of the devices at its Fordo facility, although the Iranians would not be allowed to do work that could lead to an atomic bomb and the site would be subject to international inspections, according to Western officials familiar with details of negotiations now underway. In return, Iran would be required to scale back the number of centrifuges it runs at its Natanz facility and accept other restrictions on nuclear-related work.

Instead of uranium, which can be enriched to be the fissile core of a nuclear weapon, any centrifuges permitted at Fordo would be fed elements such as zinc, xenon or germanium for separating out isotopes used in medicine, industry or science, the officials said. The number of centrifuges would not be enough to produce the amount of uranium needed to produce a weapon within a year — the minimum time-frame that Washington and its negotiating partners demand.

The officials spoke only on condition of anonymity because they were not authorized to discuss details of the sensitive negotiations as the latest round of talks began between U.S. Secretary of State John Kerry and Iranian Foreign Minister Mohammed Javad Zarif. The negotiators are racing to meet an end-of-March deadline to reach an outline of an agreement that would grant Iran relief from international sanctions in exchange for curbing its nuclear program. The deadline for a final agreement is June 30.

One senior U.S. official declined to comment on the specific proposal but said the goal since the beginning of the talks has been “to have Fordo converted so it’s not being used to enrich uranium.” That official would not say more.

The officials stressed that the potential compromise on Fordo is just one of several options on a menu of highly technical equations being discussed in the talks. All of the options are designed to keep Iran at least a year away from producing an atomic weapon for the life of the agreement, which will run for at least 10 years. U.S. Energy Secretary Ernest Moniz has joined the last several rounds as the negotiations have gotten more technical.

Experts say the compromise for Fordo could still be problematic. They note it would allow Iran to keep intact technology that could be quickly repurposed for uranium enrichment at a sensitive facility that the U.S. and its allies originally wanted stripped of all such machines — centrifuges that can spin uranium gas into uses ranging from reactor fuel to weapons-grade material.

kerry zarif iran nukeREUTERS/Leonhard Foeger John Kerry, Britain’s Foreign Secretary Philip Hammond, Russian Foreign Minister Sergei Lavrov, Iranian Foreign Minister Javad Zarif and German Foreign Minister Frank-Walter Steinmeier (LtoR) pose for photographers before a meeting in Vienna November 24, 2014.

And the issue of inspector access and verification is key. Iran has resisted “snap inspections” in the past. Even as the nuclear talks have made progress, Iran has yet to satisfy questions about its past possible nuclear-related military activity. The fact that questions about such activity, known as Possible Military Dimensions, or PMDs, remain unresolved is a serious concern for the U.N. atomic watchdog.

In addition, the site at Fordo is a particular concern because it is hardened and dug deeply into a mountainside making it resistant — possibly impervious — to air attack. Such an attack is an option that neither Israel nor the U.S. has ruled out in case the talks fail.

And while too few to be used for proliferation by themselves, even a few hundred extra centrifuges at Fordo would be a concern when looked at in the context of total numbers.

As negotiations stand, the number of centrifuges would grow to more than 6,000, when the other site is included. Olli Heinonen, who was in charge of the Iran nuclear file as a deputy director general of the U.N’s International Atomic Energy Agency until 2010, says even 6,000 operating centrifuges would be “a big number.”

Asked of the significance of hundreds more at Fordo, he said, “Every machine counts.”

Iran reported the site to the IAEA six years ago in what Washington says was an attempt to pre-empt President Barack Obama and the prime ministers of Britain and France going public with its existence a few days later. Tehran later used the site to enrich uranium to a level just a technical step away from weapons-grade until late 2013, when it froze its nuclear program under a temporary arrangement that remains in effect as the sides negotiate.

Twice extended, the negotiations have turned into a U.S.-Iran tug-of-war over how many of the machines Iran would be allowed to operate since the talks resumed over two years ago. Tehran denies nuclear weapons ambitions, saying it wants to enrich only for energy, scientific and medical purposes.

Washington has taken the main negotiating role with Tehran in talks that formally remain between Iran and six world powers, and officials told the AP at last week’s round that the two sides were zeroing in on a cap of 6,000 centrifuges at Natanz, Iran’s main enrichment site.

That’s fewer than the nearly 10,000 Tehran now runs at Natanz, yet substantially more than the 500 to 1,500 that Washington originally wanted as a ceiling. Only a year ago, U.S. officials floated 4,000 as a possible compromise.

One of the officials said discussions focus on an extra 480 centrifuges at Fordo. That would potentially bring the total number of machines to close to 6,500.

David Albright of Washington’s Institute for Security and International Security says a few hundred centrifuges operated by the Iranians would not be a huge threat — if they were anywhere else but the sensitive Fordo site.

Beyond its symbolic significance, “it keeps the infrastructure in place and keeps a leg up, if they want to restart (uranium) enrichment operations,” said Albright, who is a go-to person on the Iran nuclear issue for the U.S. government.

 

40 Points Against Israel

The Obama plan to unseat Prime Minister Benjamin Netanyahu failed, so it appears the mission of Europe is to force a Palestinian versus Israel confrontation.

There is little doubt the White House is fully supportive of this operation. EU plans to pressure Israel as diplomat warns of ‘collision course’ Leaked report outlines 40 suggestions to sway Israeli policy; EU source: more chance of implementation in wake of Netanyahu rejection of Palestinian state. A European Union report obtained by Ynet on Wednesday outlines suggestions on how to pressure Israel into returning to negotiations, in a list of 40 possible decisions. An EU diplomatic source told Ynet that there was a definite chance that the recommendations in the report, which the member states have yet to approve, were more likely to be implemented following Prime Minister Benjamin Netanyahu’s statement during his election campaign that a Palestinian state would not be created under his rule.

Netanyahu and Merkel. Israel and Europe are at loggerheads.  (Photo: Reuters) Netanyahu and Merkel. Israel and Europe are at loggerheads. (Photo: Reuters)

“We are on a collision course,” said the European diplomat. “It’s clear to everyone in Brussels that there must be a response to these statements.”   The diplomat said the EU does not believe Netanyahu’s subsequent backtracking on the creation of a Palestinian state. He added that Europe is interested in having a positive relationship with Israel, but considers Israel to be an entity that does not extend beyond the Green Line – the boundaries of Israel from its founding in 1948 until the 1967 Six-Day War.   “If Israel continues its policy beyond the Green Line, it will affect the relationship between European nations and Israel,” he warned.   The heads of diplomatic missions in Jerusalem and Ramallah recommend several steps in the report, and the majority of the 40 recommendations may be hard for Israel to swallow.   The European source hinted that the election results and expected formation of a right-wing government in Israel mean the recommendations will be taken especially seriously by the EU.

 

The report describes 2014 as one of the tensest years in Jerusalem since the end of the Second Intifada.   Drafted before the end of Israel’s election campaign, the document warns against “a vicious cycle of polarization and violence following the rapid deterioration of the situation on the ground.”

EU seeks to increase involvement in peace process

The EU is keen to bring Israelis and Palestinians back to the negotiating table after peace talks collapsed last year, with the bloc’s new foreign policy chief seeking to reinvigorate European involvement in the negotiations.   Israel should make “every effort to ensure an early resumption of the Middle East peace process,” the EU said in a series of annual reports assessing progress on democracy and human rights in countries close to the 28-nation bloc.   A separate report urged the Palestinian Authority to pursue “positive steps” to restart peace talks.   EU foreign affairs chief Federica Mogherini, who took on her position in November, wants to more closely involve Arab states in the work of the Middle East Quartet, which comprises the United States, United Nations, the EU and Russia.   Rather than expanding the Quartet, it would hold more frequent top-level meetings with at least Saudi Arabia, Jordan and Egypt, senior diplomats have said.   Last week, the bloc chose veteran Italian negotiator Fernando Gentilini as its special representative to the Middle East.   In its reports, the EU called on Israel to ensure respect for international law and human rights in the Palestinian territories.   While the EU recognized Israel had the right to defend itself, the “devastating effect” of last year’s Gaza conflict on civilians “underlined the significant challenges attached to Israel’s responsibilities in the occupied territories,” it said.   Hamas and other Gaza militant groups fought a 50-day war with Israel last July and August in which more than 2,100 Palestinians, many of them civilians, were killed. On the Israeli side 67 soldiers and six civilians were killed.   The EU also urged the Palestinian Authority to resume full governmental responsibility in Gaza and to organize free and fair presidential and legislative elections.

Why Yemen?

Hat-tip to my buddy with the PhD:

Several years ago, the Saudi paper “al-Watan” was reporting that Iran had been shipping arms to the Zaydi Hawthis, and training Hawthis at Quds Force camps in Eritrea, just across the Red Sea.  Why would Iran be so brazen?

Reasons for Iran to stir the Shi`I pot in Arabia:

  1. Leveraging “persecution” of Shi`is into regional geopolitical influence for Tehran-Qom
  2. Appealing to, and exploiting, historical connections with Shi`is of Yemen and greater Arabia
  3. Undermining and de-legitimizing the Saudi government
  4. Strengthening its strategic position on both sides of the Red Sea
  5. Strengthening its anti-Israel Islamic front
  6. Searching for allies wherever they can be found. 

Current Zaydi calls for the reestablishment of the Imamate, as well as cooperation with Iran, seem largely to be a result of their disenfranchisement by Sunni authorities in Sana`a, and their perception of being trapped between the anvil of the Saudi Wahhabis to the north and the ever-encroaching hammer of AQAP from the south.

 

Conventional wisdom right now has it that Yemen’s “Hero Imamate” is being used by the Iranian ayatollahs’ “Martyr Imamate.”  But perhaps it is the other way around.  The Zaydis have a historical legacy of ruling much of the country, and they do have legitimate complaints about Sunni repression.  Had the US put any pressure on the Sana`a rulers to acknowledge Hawthi-Zaydi grievances in recent years, they may not have been receptive to Iranian Shi`i blandishments.  But that Imam has left the well.  Now the US needs to find a way to prevent Yemen from fracturing while simultaneously giving the Zaydis their historical and political due.  Maybe, in the process, we can take advantage of the Zaydi hatred of AQAP.   And perhaps a bit of pressure on the Wahhabi fundamentalists in Riyadh and their new King, Salman, could be a good thing, as well.

Saudi ‘Decisive Storm’ waged to save Yemen

Saudi Arabia waged early Thursday “Operation Decisive Storm” against the Houthi coup in Yemen and in support of legitimate President Abd-Rabbu Mansour Hadi.

A Saudi air campaign was launched overnight which has already resulted in the elimination of several Houthi leaders.

Yemen air space is currently under full control of the Saudi Royal Air Force.

As the operation continues, a coalition of all GCC countries, barring Oman, is taking part in the campaign, including Sudan, Egypt, Morocco, Jordan and Pakistan.

Saudi Arabia has deployed 100 fighter jets, 150,000 soldiers and other navy units, Al Arabiya News Channel reported.

Meanwhile, Yemen shut its major seaports on Thursday while Saudi Arabia halted flights to seven airports south of the Kingdom, Reuters news agency reported.     

Infographic: The ‘Decisive Storm’ coalition

(Design by Farwa Rizwan/ Al Arabiya News)

White House backs campaign

The White House has voiced support for the campaign against the Houthis. Saudi Arabia’s Ambassador to Washington Adel al-Jubeir announced the kingdom had launched a military operation involving air strikes in Yemen against Houthi fighters who have tightened their grip on the southern city of Aden where Hadi had taken refuge.

WATCH: Ambassador al-Jubeir: ‘Having Yemen fail cannot be an option’

Jubeir told reporters that a 10-country coalition had joined in the military campaign in a bid “to protect and defend the legitimate government” of Hadi.

“We will do whatever it takes in order to protect the legitimate government of Yemen from falling,” Jubeir said.

The U.S. has said it is coordinating closely with Saudi Arabia.

Saudi Ambassador to the United States Adel Al-Jubeir. (Reuters)

“President Obama has authorized the provision of logistical and intelligence support to GCC-led military operations,” National Security Council spokeswoman Bernadette Meehan said in a statement, referring to the Gulf Cooperation Council.

The Saudi-led military coalition declared Yemen’s airspace as a “restricted area” after King Salman bin Abdulaziz ordered the airstrikes on the Iran-backed Houthi militia on Thursday at 12 a.m. Riyadh time.

Yemeni forces and loyalists to Hadi have already managed to take control of Aden airport from Houthi militias, Al Arabiya News Channel reported citing sources.

Hadi, who has remained in Aden, is in high spirits after the launch of the operation against the Houthi rebel group opposed to his rule, an aide said.

The Iranian Foreign Ministry condemend the operation on Thursday and demanded an immediate halt what it described as “military aggression,” semi-Official Fars news agency reported.

‘Repel Houthi aggression’

Saudi Defense Minister Prince Mohammed bin Salman had warned Ahmed Ali Abdullah Saleh, the son of Yemen’s former President Ali Abdullah Saleh, against advancing toward Aden.

A member of the Saudi security forces stands guard as other demonstrate their skills during a military exercise in Arar, near Saudi Arabia’s northern border with Iraq March 18, 2015. (File: Reuters)

The Houthis had joined forces with the loyalists of former President Saleh in their offensive to take control of Yemen.

Operation ‘Decisive Storm’ to continue

Yemeni Foreign Minister Riad Yassine told Al Arabiya News Channel that the operations would continue until the Houthis agreed to join peace talks and backtrack on all measures taken since their occupation of the capital Sanaa last September.

“We do not recognize any of what happened after September 21,” Yassine told Al Arabiya News, saying the military operation would help the southern Yemenis “regain confidence.”

Demonstrations reportedly broke out in Yemen’s Hadramout and Aden in support of the Saudi airstrikes on the Houthi militia.

The military operation came shortly after Arab Gulf states, barring Oman, announced that they have decided to “repel Houthi aggression” in neighboring Yemen, following a request from Hadi.

In a joint statement Saudi Arabia, UAE, Bahrain, Qatar and Kuwait said they “decided to repel Houthi militias, al-Qaeda and ISIS [Islamic State of Iraq and Syria] in the country.”

The Gulf states warned that the Houthi coup in Yemen represented a “major threat” to the region’s stability.

The Gulf states also accused the Iranian-backed militia of conducting military drills on the border of Saudi Arabia with “heavy weapons.”

In an apparent reference to Iran, the Gulf statement said the “Houthi militia is backed by regional powers in order for it to be their base of influence.”

The Gulf states said they had monitored the situation and the Houthi coup in Yemen with “great pain” and accused the Shiite militia of failing to respond to warnings from the United Nations Security Council as well as the GCC.

The statement stressed that the Arab states had sought over the previous period to restore stability in Yemen, noting the last initiative to host peace talks under the auspices of the GCC.

Call for U.N. action

In a letter sent the U.N. Security Council seen by Al Arabiya News, Hadi requested “immediate support for the legitimate authority with all means and necessary measures to protect Yemen, and repel the aggression of the Houthi militia that is expected at any time on the city of Aden and the province of Taiz, Marib, al-Jouf [and] an-Baidah.”

In his letter Hadi said such support was also needed to control “the missile capability that was looted” by the Houthi militias.

Hadi also told the Council that he had requested from the Arab Gulf states and the Arab League “immediate support with all means and necessary measures, including the military intervention to protect Yemen and its people from the ongoing Houthi aggression.”

Meanwhile, Saudi Arabia has halted flights at seven airports near the Yemeni border, the civil aviation department said.

“The General Authority of Civil Aviation of Saudi Arabia announced a temporary suspension of international and domestic flights to and from airports in the south of the kingdom,” from dawn on Thursday, the department said in a statement.

 

WH Ignoring the Expanding Global Shia Crescent?

Iran and the ‘Shia Crescent’

Although the exact posturing and organization of the “Shia Crescent” is debated, there is no doubt a clear network exists of partners associated with Iran (Shia and non-Shia) who openly seek to undermine U.S. interests, and operate globally with increasing zeal and reach. Iran has long vowed, supported and operated alongside these partners like Lebanon’s Hezbollah, using a variety of soft and hard power.

Hezbollah Rockets

From Latin America, to Iraq and Afghanistan, to Bahrain and even Mexico, observers of current events will find the Shia Crescent at work. This term “Shia Crescent” is not an indictment against the moderate Shia believers who renounce radicalism, but it is a stark acknowledgment of the reality that Iran has co-opted many Shia communities, their grievances and legitimate concerns, and continues to orient them toward a radical agenda of confrontation, armed violence, and subversive activities penetrating legitimate political processes as well as criminal enterprises.

The following points are salient:

  1. Tehran’s Objective. Iran has a very clear agenda to use non-state soldiers to undermine Western interests and spread Iranian influence. Iranian constitutional law, high leadership declarations, military organization and posture, and a host of operations of its Quds forces in Iraq and the region and globally, provide overwhelming evidence of this fact. The link between state and non-state soldiers is thus important for our study.
  2. The nuclear threat. If Iran ever obtains nuclear weapons it will not have to use them to be effective. The mere threat of using them will check or checkmate an opponent by thrusting the fight to the level of non-state soldiers (Low Intensity Conflict) where Iran excels. This may prove to be the most important aspect of obtaining nuclear weapons. That said, many experts are convinced that Iran could and would use nuclear weapons.
  3. A Wide and Popular Appeal. Non-state soldiers surface in the Middle East under Iranian patronage and support even though these groups may not be Shia. The fact is Iran has developed an extraordinary ability to capture, partner with, and motivate disaffected young and middle-aged citizens, and partner with disaffected groups like Hamas, which are Sunni in belief. This wide appeal will continue to foster an environment where non-state soldiers thrive.
  4. Bottom up Strategy. The non-state soldiers under the Shia Crescent have aptly exploited the social and culture terrain by creating a social network offering jobs, emergency aid, religious identification and organization, and inspiration. Hezbollah has used this strategy, and developed a militant social movement into a political one, even though it vowed not to form a political party in Lebanon and participate in the parliamentary politics.
  5. Deadly strikes. Non-state soldiers working in this system have accomplished deadly attacks on US and partner personnel and assets. Beyond Iraq and Afghanistan, where Iranian influence and use of non-state soldiers are open and aggressive, we find high profile terrorist attacks like the Khobar Towers, where the regional Hezbollah conducted a major attack on a facility housing US and Saudi personnel.
  6. Geo-politics of the Shia Crescent. In context, it should be understood that the Shia Crescent emanating from Iran seeks to sweep through the Middle East, thrusting through Iraq, Syria, and extending into the Levant and Palestine.

Yet, Iran has a remarkable ability to “leap frog,” or move beyond a regional theater and operate globally. Despite Western efforts to contain Iranian influence and its use of proxies in the Middle East, Iran continues to support the development of hostile forces beyond this region.

The involvement of non-state soldiers in the Shia Crescent will remain a major challenge to U.S. security in the foreseeable future. Understanding these dynamics is essential.

Exploitation and Sanctions Violations

The sanctions on Iran are already falling apart

The Obama administration insists that the November 2013 interim nuclear deal with Iran gave Tehran’s economy only limited sanctions relief and that it can respond to Iranian misbehavior by snapping back sanctions at any time in.

Iran’s economic windfall, however, goes well beyond the monthly cash transfers and temporary easing on trade stipulated in the Joint Plan of Action, or JPOA.

Not only has the JPOA halted Iran’s slide into economic disaster, but the benefits the deal has prompted are a fraction of the dividends the Islamic Republic is set to reap the day a final agreement is reached.

These gains are only partly due to sanctions relief: Iran’s improved position also results from lax sanctions implementation by its neighbors, reluctance by European authorities to discourage their own economies from trading with the Islamic Republic, and Tehran’s fine-tuning of its talent for bypassing sanctions.

As a result, the interim nuclear deal looks increasingly like a slow-motion funeral procession for the sanctions regime.

Overwhelming evidence suggests Iran has successfully overcome banking sanctions to manage overseas payments. For example, email correspondence between a European manufacturer and an Iranian banking official, leaked last year to the Foundation for Defense of Democracies, helpfully details how to bypass banking sanctions.

Seven Iranian banks not under EU sanctions can be used to process payments, but in the email, the Iranian banking official admits that European correspondent banks, out of zealous overreach, might refuse incoming funds.

To overcome this problem, he offers three alternative methods of payments: avoiding reliance on Letters of Credit by paying directly into suppliers’ accounts in Europe; using Iranian subsidiaries in Turkey and Dubai for payment and delivery of goods; and using a European company’s subsidiary branch in friendly countries like China, India, South Korea, and potentially Russia to handle sales and payments.

DubaiReutersDubai: Iran sanctions-busting central.

Such payment mechanisms work because they obfuscate the final destination of goods — namely Iran — and rely on banking institutions and Iranian front companies overseas to act as intermediaries for payment and shipment between Iran and Europe.

A recent Reuters article revealed that Iran not only knows how to process overseas payments. It has also regained access to foreign currency.

Tehran was able to repatriate $1 billion in cash through Dubai by relying on local money-exchange houses and moving the cash in hand luggage carried by businessmen flying on commercial flights. Moreover, an Iranian MP has publicly accused Iran’s Central Bank of sending cash suitcases of UAE dirhams outside Iran to buy dollars.

Further evidence points to cash moving out of Iran to enable illicit procurement. According to a Georgia-based Iranian businessman who spoke to us on condition of anonymity, couriers from Iran routinely fly to Tbilisi with cash suitcases (both FlyVista, a low-cost Georgian carrier, and Iran’s ATA air have scheduled Tehran-Tbilisi flights). With no limits on declared financial instruments brought into Georgia, Iran is able to bring foreign currency back into its borders through Dubai and transfer it to Georgia to finance procurement and trade.

Iran is able to run rings around the sanctions regime because of lax implementation of EU and US sanctions in the Islamic Republic’s “near abroad.” From the Persian Gulf through Turkey and the South Caucasus, Iran can rely on its neighbors to allow bilateral trade with Tehran to flow unimpeded. Turkey, for example, is home to more than 3,000 Iranian companies, including US-sanctioned Bank Mellat.

Ankara has cited the JPOA as the basis for loosening restrictions on Iranian banking, and in any case, none of Iran’s neighbors has fully signed on to EU and US sanctions. The interim deal and a looming final agreement are vindicating their approach: having kept their doors half-open to Iran’s business, its neighbors will be the first to gain from the demise of the sanctions regime.

Iran nuclearREUTERS/Brian SnyderU.S. Secretary of State John Kerry (L) holds a negotiation meeting with Iran’s Foreign Minister Mohammad Javad Zarif (R) over Iran’s nuclear programme, in Lausanne March 18, 2015.

Direct trade is also getting a push from the new psychological environment that the interim deal has created. Few in Europe believe the sanctions will remain, and many are exploring future commercial opportunities. In the meanwhile, Europe’s bilateral trade with Iran is climbing back to pre-sanctions levels — further evidence that banking sanctions are no longer effective.

According to Iran’s Press TV, last month the French automaker Peugeot finalized a deal with Iran Khodro, the Islamic Republic’s largest car manufacturer, to launch a new joint venture. This is the latest in a long string of European trading overtures to Tehran, reflected in a steep increase in European exports there. The German-Iranian chamber of commerce has reported a 36%-increase in Germany’s exports to the country for 2014 and Iranian figures show an 18% uptick in exports across Europe.

The Obama administration may still believe it is able to snap sanctions back at any time if Iran cheats on its commitments under a final agreement. Developments thus far under the interim deal suggest otherwise.

 

Clare M. Lopez on Cowboy Logic Radio – 03/24/15


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