More on Iran Sanctions

U.S. Allies Ignore Washington’s Iran Sanctions

By John Daly | Wed, 02 January 2013 22:55 | 0

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Since the U.S. began its “global war on terror” in late 2001 in the wake of al Qaeda’s U.S. attacks, two of its most stalwart Muslim allies have been Turkey and Pakistan. Since then Turkey has provided the Pentagon access to its massive aerial facility in Incirlik, a crucial component in both Iraq and Afghanistan, along with providing troops to the NATO led and U.S. commanded International Assistance Security Force currently battling the Taliban in the latter.

Pakistan has also provided crucial infrastructure logistical assistance to ISAF forces.
But there are now policy divergences between Washington, Ankara and Islamabad over Iran’s civilian nuclear program, which both the U.S. and Israel maintain masks a covert program to develop nuclear weapons, a charge that Tehran strongly denies.

Washington first imposed unilateral sanctions on Iran in 1979 and has more recently led efforts in the United Nations Security Council to impose increasingly stringent sanctions on Iran’s hydrocarbon industries and energy exports.

But it is on the issue of Iranian natural gas imports that both Turkey and Pakistan have diverged from U.S. policy interests, not so much opposing sanctions as – simply ignoring them, putting the Obama administration in the uncomfortable position of ratcheting up pressure and alienating two crucial U.S. allies, more discreetly ignoring the actions, further weakening Washington’s attempts to play sanctions hardball with other nations, while complicating relations with U.S. ally Israel.

Related Article: Chinese Oil Companies Apparent Victors in Post-Saddam Iraq

But both Pakistan and Turkey are motivated not by an attempt to poke a finger in Washington’s diplomatic eyes, but rather, the fiscal realities of their economies.

The U.S. Energy Information Administration has noted of Turkey in its 2011 “Country Analysis Brief,” “As of January 1, 2011, the Oil & Gas Journal estimates Turkish natural gas reserves at 218 billion cubic feet (Bcf). Turkey produced 25 Bcf of natural gas in 2009, relying almost exclusively on imports to meet domestic demand. Turkey’s energy demand growth has been among the fastest in the world, although the recent economic downturn dampened some of the growth.”

Iran currently provides 18 percent of Turkey’s natural gas imports, with much of the remainder coming from the Russian Federation.  Speaking bluntly on 29 November so as to leave Washington in no doubt, Turkish Energy Minister Taner Yildiz says unilateral sanctions imposed on Iran are against the interests of Turkey and his country will not implement them, noting that Turkey is a member of the United Nations and complies with UN mandates, it does not abide by unilateral sanctions imposed by other countries, emphasizing the importance of oil and gas imports from Iran to Turkey.

Not clear enough? Turkish Economy Minister Zafer Caglayan added that Turkey only abides by international agreements.

Related Article: How Bad do Sanctions Really Hurt Iran?

And Pakistan?  On 20 December Pakistani Foreign Minister Hina Rabbani Khar said that President Asif Ali Zardari would soon visit Iran and Prime Minister adviser Asim Hussain noted that the $75 billion Pakistan-Iran Gas Pipeline Project would be completed by the end of 2014 as per the schedule. Iran is so interested in the project that it will foot the entire tab for the pipeline’s construction. The Iran-Pakistan pipeline will allow The 56-inch pipeline will allow Pakistan to import 8.7 billion cubic meters (310 billion cubic feet) of gas annually.

And the diplomatic ripples on the proposed Iran-Pakistan natural gas pipeline extend even to Saudi Arabia, which has traditionally enjoyed good relationships with Pakistan. So concerned is Riyadh over the project that Saudi Ambassador to Pakistan Abdul Aziz bin Ibrahim bin Salih Al Ghadeer extended an invitation Pakistan Foreign Minister Khar to visit Saudi Arabia for “urgent talks,” which she has accepted.

Needless to say, behind the scenes the U.S. has been pressuring Islamabad to abandon the project because of Iran’s nuclear activities, but earlier this month Senator Mushahid said that Islamabad had rejected U.S. pressure as it considered the Iran-Pakistan gas pipeline project an integral element in surmounting the country’s ongoing energy crisis.

Given the importance of the two nations to the U.S. war effort in Central Asia, it seems unlikely that the U.S. will offer more than token resistance to both Turkey and Pakistan conducting its “business as usual” energy arrangements with Iran – which, needless to say, will hardly endear Washington to other U.S. allies such as Japan, which are getting a full-court press on the issue.

Chalk up another win for U.S. diplomacy.

By. John C.K. Daly of Oilprice.com

About the author

Contributor
John Daly
Company: U.S.-Central Asia Biofuels Ltd
Position: CEO

Something Afoot Here

Why did a Train Carrying Biofuel Cross the Border 24 Times and Never Unload?

By James Burgess | Tue, 01 January 2013 00:00 | 8

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A cargo train filled with biofuels crossed the border between the US and Canada 24 times between the 15th of June and the 28th of June 2010; not once did it unload its cargo, yet it still earned millions of dollars. CBC News of Canada was the first to pick up on this story on the 3rd of December 2012, and began their own investigation into the possible explanations behind this odd behaviour.

CN Rail, the operator of the train, stated their innocence in the matter as they had only “received shipping directions from the customer, which, under law, it has an obligation to meet. CN discharged its obligations with respect to those movements in strict compliance with its obligations as a common carrier, and was compensated accordingly.” Even so, they still managed to earn C$2.6 million in shipping fees.

During their investigation CBC managed to obtain an internal email which stated that the cars of the train were all reconfigured between each trip but that the cargo was never actually unloaded, because “each move per car across the border is revenue generated”, the sale of the cargo itself was inconsequential.

Related Article: U.S. Military Biofuels Survives Republican Congressional Euthanasia Attempt

The cargo of the train was owned by Bioversal Trading Inc., or its US partner Verdero, depending on what stage of the trip it was at. The companies “made several million dollars importing and exporting the fuel to exploit a loophole in a U.S. green energy program.” Each time the loaded train crossed the border the cargo earned its owner a certain amount of Renewable Identification Numbers (RINs), which were awarded by the US EPA to “promote and track production and importation of renewable fuels such as ethanol and biodiesel.” The RINs were supposed to be retired each time the shipment passed the border, but due to a glitch not all of them were. This enabled Bioversal to accumulate over 12 million RINs from the 24 trips, worth between 50 cents and $1 each, which they can then sell on to oil companies that haven’t met the EPA’s renewable fuel requirements.

Both the Canada Border Services Agency and the US EPA have launched investigations into the possibility of fraud, although the companies claim that the practice was totally legal.

By. James Burgess of Oilprice.com

Remembering the Blizzard of 2011

Last year, while on a Christmas trip to our place near Evergreen Co. we were stuck in a blizzard in Dalhart, Texas.  We made a confirmed pet friendly reservation at the Rodeway Inn, Dalhart.  Upon arriving, the owner refused to honor the reservation.  I told her there was a blizzard.  She said it was not her problem.  I finally threatened to call the county Sheriff.  She relented.  The experience with Rodeway Inns was worse than the blizzard.  I shall never stay at a Roadway Inn again.

The next day we were able to drive to Clayton, New Mexico where we spent the next two days.  We had a far superior experience in Clayton.

This image was taken outside the place  where we stayed in Clayton.

blizzard of 2011

 

Non Cogito, Ergo Sum

NON COGITO, ERGO SUM

Our Top 12 of 2012. No. 5: Sometimes thinking is a bad idea. Ian Leslie draws on Dylan, Djokovic and academic research to put the case for unthinking…

From INTELLIGENT LIFE magazine, May/June 2012

It was the fifth set of a semi-final at last year’s US Open. After four hours of epic tennis, Roger Federer needed one more point to see off his young challenger, Novak Djokovic. As Federer prepared to serve, the crowd roared in anticipation. At the other end, Djokovic nodded, as if in acceptance of his fate.

Federer served fast and deep to Djokovic’s right. Seconds later he found himself stranded, uncomprehending, in mid-court. Djokovic had returned his serve with a loose-limbed forehand of such lethal precision that Federer couldn’t get near it. The nonchalance of Djokovic’s stroke thrilled the crowd. John McEnroe called it “one of the all-time great shots”.

Djokovic won the game, set, match and tournament. At his press conference, Federer was a study in quiet fury. It was tough, he said, to lose because of a “lucky shot”. Some players do that, he continued: “Down 5-2 in the third, they just start slapping shots …How can you play a shot like that on match point?”

Asked the same question, Djokovic smiled. “Yeah, I tend to do that on match points. It kinda works.”

Federer’s inability to win Grand Slams in the last two years hasn’t been due to physical decline so much as a new mental frailty that emerges at crucial moments. In the jargon of sport, he has been “choking”. This, say the experts, is caused by thinking too much. When a footballer misses a penalty or a golfer fluffs a putt, it is because they have become self-conscious. By thinking too hard, they lose the fluid physical grace required to succeed. Perhaps Federer was so upset because, deep down, he recognised that his opponent had tapped into a resource that he, an all-time great, is finding harder to reach: unthinking.

Unthinking is the ability to apply years of learning at the crucial moment by removing your thinking self from the equation. Its power is not confined to sport: actors and musicians know about it too, and are apt to say that their best work happens in a kind of trance. Thinking too much can kill not just physical performance but mental inspiration. Bob Dylan, wistfully recalling his youthful ability to write songs without even trying, described the making of “Like a Rolling Stone” as a “piece of vomit, 20 pages long”. It hasn’t stopped the song being voted the best of all time.

In less dramatic ways the same principle applies to all of us. A fundamental paradox of human psychology is that thinking can be bad for us. When we follow our own thoughts too closely, we can lose our bearings, as our inner chatter drowns out common sense. A study of shopping behaviour found that the less information people were given about a brand of jam, the better the choice they made. When offered details of ingredients, they got befuddled by their options and ended up choosing a jam they didn’t like.

If a rat is faced with a puzzle in which food is placed on its left 60% of the time and on the right 40% of the time, it will quickly deduce that the left side is more rewarding, and head there every time, thus achieving a 60% success rate. Young children adopt the same strategy. When Yale undergraduates play the game, they try to figure out some underlying pattern, and end up doing worse than the rat or the child. We really can be too clever for our own good.

By allowing ourselves to listen to our (better) instincts, we can tap into a kind of compressed wisdom. The psychologist Gerd Gigerenzer argues that much of our behaviour is based on deceptively sophisticated rules-of-thumb, or “heuristics”. A robot programmed to chase and catch a ball would need to compute a series of complex differential equations to track the ball’s trajectory. But baseball players do so by instinctively following simple rules: run in the right general direction, and adjust your speed to keep a constant angle between eye and ball.

To make good decisions in a complex world, Gigerenzer says, you have to be skilled at ignoring information. He found that a portfolio of stocks picked by people he interviewed in the street did better than those chosen by experts. The pedestrians were using the “recognition heuristic”: they picked companies they’d heard of, which was a better guide to future success than any analysis of price-earning ratios.

Researchers from Columbia Business School, New York, conducted an experiment in which people were asked to predict outcomes across a range of fields, from politics to the weather to the winner of “American Idol”. They found that those who placed high trust in their feelings made better predictions than those who didn’t. The result only applied, however, when the participants had some prior knowledge.

This last point is vital. Unthinking is not the same as ignorance; you can’t unthink if you haven’t already thought. Djokovic was able to pull off his wonder shot because he had played a thousand variations on it in previous matches and practice; Dylan’s lyrical outpourings drew on his immersion in folk songs, French poetry and American legends. The unconscious minds of great artists and sportsmen are like dense rainforests, which send up spores of inspiration.

The higher the stakes, the more overthinking is a problem. Ed Smith, a cricketer and author of “Luck”, uses the analogy of walking along a kerbstone: easy enough, but what if there was a hundred-foot drop to the street—every step would be a trial. In high-performance fields it’s the older and more successful performers who are most prone to choke, because expectation is piled upon them. An opera singer launching into an aria at La Scala cannot afford to think how her technique might be improved. When Federer plays a match point these days, he may feel as if he’s standing on the cliff edge of his reputation.

Professor Claude Steele, of Stanford, studies the effects of performance anxiety on academic tests. He set a group of students consisting of African-Americans and Caucasians a test, telling them it would measure intellectual ability. The African-Americans performed worse than the Caucasians. Steele then gave a separate group the same test, telling them it was just a preparatory drill. The gulf narrowed sharply. The “achievement gap” in us education has complex causes, but one may be that bright African-American students are more likely to feel they are representing their ethnic group, which leads them to overthink.

How do you learn to unthink? Dylan believes the creative impulse needs protecting from self-analysis: “As you get older, you get smarter, and that can hinder you…You’ve got to programme your brain not to think too much.” Flann O’Brien said we should be “calculatedly stupid” in order to write. The only reliable cure for overthinking seems to be enjoyment, something that both success and analysis can dull. Experienced athletes and artists often complain that they have lost touch with what made them love what they do in the first place. Thinking about it is a poor substitute.

We live in age of self-reflection, analysing every aspect of our work, micro-commentating on our own lives online, reading articles urging us to ponder what makes us happy. Much of this may be worthwhile, but we also need to put thinking in its place. Djokovic’s return was both the culmination of his life’s effort and an expression of careless joy. It kinda worked.

Ian Leslie works in advertising, is the author of “Born Liars” and tweets as @mrianleslie

 

Would You Wish to Know?

Knowing You Carry a Cancer Gene
By EMMA PIERSON
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Jennifer Renninger
I jogged into the Stanford Cancer Clinic with my boyfriend, the youngest people there by two decades. We stood there sweating and holding hands, a jarring sight in the sickly light.

“You are 18, right?” the receptionist asked. Behind me, a woman so gaunt that her cheekbones protruded rolled by in a wheelchair. The oncologist called me alone to the exam room, and I told her the story I had revealed to more doctors than friends: I carry the BRCA1 mutation, which gives you a 98 percent chance of developing cancer.

When my family found out that I might have inherited the mutation from my mother, we took it as a given that I would get tested. Scientists, atheists and lawyers, we are compulsively rational. Yet when I learned I carried the mutation, I felt the cruel weight of a paradox: you can never know whether you want to know until you already do.

At Stanford, I study artificial intelligence, in which math is used to resolve these sorts of dilemmas. My teachers claim that gaining information never hurts. It can be proved mathematically that a robot with more information never makes worse decisions But we are not robots. Our eyes don’t filigree the world with coordinates and probabilities, and they can be blinded by tears.

Still, we, too, display a preference for information. We dislike uncertainty so strongly that we sometimes even prefer bad news. One study of people at risk for a terminal disease found that those who learned they were going to die from it were happier a year later than those who remained uncertain about their fates. Most people have a deep intuition that a life lived clear-eyed has inherent value, independent of whether the truth makes you happy. But surely this has limits.

I know there are some things I do not want to know: which other girls my boyfriend finds attractive or the day and manner of my death. The truth can hurt in two ways. It can worsen your options: you can’t live as happily with a significant other after learning of his infidelity. Or it can make you irrational: hearing about terrorists targeting airplanes may lead you to drive instead of fly, though planes remain much safer than cars.

So was I wrong to unwind my double helix?

My risks of getting cancer at 21 are too low for me to do anything differently to better my odds. The knowledge is both irrelevant and painful; it’s obsessed me and made me behave irrationally. I wake from nightmares in which I am dying from cancer. I reread the memoirs of patients with metastatic disease until I can’t see the text through my tears. In my supposedly rational pursuit of knowledge, I’ve gone a little mad.

Despite an excess of information, I pursued more, enrolling in Stanford’s cancer biology class. The professor filled his slides with dark oncological puns, lecturing with the almost robotic detachment I sometimes see in those who work closely with cancer. Maybe I, too, am becoming robotic. I can laugh at the puns, calmly press lecturers on survival rates for breast cancer, marvel at the elegant molecular mechanisms by which it eats us alive. Just as tumors eventually swell too large for their hosts to endure, will all this knowledge grow past what I can handle?

The prospect was too much for my mother, a far tougher woman than I am. When she received a diagnosis of breast cancer, she ordered the doctors to give her chemotherapy as rapidly as possible and recovered completely. But she refused to learn her chances of long-term survival or look at her medical records. I became the first in my family to read them, and when I learned her cancer had been unusually lethal, my father asked me not to tell her.

I cannot shake the thought that this mutation was given to me for a reason. I don’t believe in God. I know my chromosomes divided along a random schism, not a divine skein. But while I reject the theist’s idea of God-granted purpose, I accept the existentialist’s idea of crafting your own. The world may be only sound and fury, but we can choose to see patterns in that chaos, stories in the stars.

So I choose to believe that I have been given this mutation so that I can discover how to overcome it. Like the protagonist in “Flowers for Algernon,” I will be both scientist and patient. Even if this sense of purpose is illusory, it lets me do what I couldn’t before. Fear has sharpened me: I wake at 3 in the morning to refine biological algorithms or to read papers on ovarian cancer.

While I believe this knowledge has made me live better, I am not sure it’s made me happier. True, there was the day I dropped by Stanford’s Relay for Life, a fund-raiser for cancer research, ran farther than I ever had and walked home full of joyful purpose. There was also the night I lost it completely and sobbed for hours in my boyfriend’s arms.

In this oscillation between light and dark, one thing remains constant: I’m no longer so eager to illuminate my fate. Recently, I went to the Web site of 23andMe, a company that will read from your genome your risk of dying from a hundred diseases. I clicked through the testimonials and was unnerved by how similar our reasons were for wanting information. I looked down at my fingertips, tempted: what else in my genome waits to be found?

But then I clicked away. The Bible doesn’t tell us if Eve ate any more apples, but I have had my fill of revelations. I am 21 years old, and I want to be free to live a normal life: fate unbound by double helix, future exploding with possibility. I don’t want to know.

A version of this article appeared in print on 01/01/2013, on page D5 of the NewYork edition with the headline: In Pursuit of Answers One May Not Want to Know.

Iran Acting Up Again

Iran Announces 6 Days of Naval Exercises

By James Burgess | Sun, 30 December 2012 00:00 | 0

Benefit From the Latest Energy Trends and Investment Opportunities before the mainstream media and investing public are aware they even exist. The Free Oilprice.com Energy Intelligence Report gives you this and much more. Click here to find out more.

It has been over a year now that Iran has been in conflict with western powers over its nuclear regime. The west believe that Iran is researching and developing the capabilities to enrich uranium to weapons grade in order to build nuclear bombs; Iran maintains that it is only enriching the uranium to levels required for medical research purposes.

Forces have been positioned in and around the Persian Gulf in order to maintain the free passage of tankers through the Straits of Hormuz, which see about 20% of world oil supply move through its waters each day.

Related Article: How Bad do Sanctions Really Hurt Iran?

Even so the Persian state never misses the opportunity to boast about the progress it is making in the development of other military equipment, and routinely holds exercises to taunt UN, US, and Israeli forces stationed around the area.

The latest exercises have been reported by the Islamic Republic News Agency, and will consist of a six-day drill around the Straits of Hormuz by Iran’s navy to test defensive and missile systems, combat vessels, and submarines. The exercises will cover the Sea of Oman across to the north of the Indian Ocean, and according to Habibollah Sayari, and Iranian Navy Commander, will display “the readiness of armed and naval forces to defend Iran’s waterway and national interests.”

Yawning Fox

I took this picture at our place in Colorado.  Mama fox was just waking up from a nap.  This was a very fortunate shot for me.

yawningfox

New Years Greetings from Marcel

Marcel and I wish all of you and your pets a wonderfully Happy New Year.

Marcel

Water Feature

This water feature is at the LadyBird Johnson Wildflower center near South Austin, Texas.  I like the effect of the sun on the concrete

watersculpture

 

Internet Technology Update

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DAVID TISCH: I don’t know about you, but I am going into next year really energized by all of the innovation that I see in technology today. This extends beyond the boundaries of just my computer monitor and smartphone and includes creativity taking place in hardware and other tech-enabled arenas as well.

In one famous (and now maligned) moment of 2012, it was suggested that there are ‘no more great ideas left.’ I feel just the opposite. I think there is no limit to the innovation we will continue to see.

So the question is, what forms will that innovation take in 2013? I think we are in for an exciting year ahead:

The Internet will become fun again. When was the last time you had real fun on the Internet? Exactly. We are past the first wave of social gaming, we all understand content sharing, and we all “like” friends posts on Facebook…but is any of that really fun? I don’t think so. Coming soon: new games, new social applications and new immersive experiences will create true joy for web and mobile users. We are at the point where the internet needs some new toys, and I for one can’t wait to play with them. And no, ‘Poking’ is not the answer.

Technology transforms your everyday places. The majority of us spend most of our time outside of work in two places: the house and the car. Technology has yet to truly penetrate either of these spheres in a meaningful way. We are now at a point where connectivity, cheap and easy hardware and the proliferation of smartphones and tablets can lead to technological innovations in the home and car that have practical life applications. For a great example of this, check out SmartThings.com (full disclosure: I am an investor). They are on to something big and they are not the only ones.

See what other startup mentors have to say about the top startup trends for 2013.
Connectivity, quantified self and the body. Sensors and smartphones allow the body to become another vehicle of connectivity. These possibilities open endless opportunities for entrepreneurs to ‘plug’ into real life in ways never before imagined. Already some very powerful experiences have emerged around running and fitness (which I don’t really do well). The excitement for me is around extending this to all aspects of our physical lives, and using technology to improve our health and the way we live. Easily installable and accessible monitors and sensors allow for the aggregation and processing of massive amounts of data that will unlock new discoveries to allow the human platform to evolve. I can’t wait.

Offline retail finally plays catch-up.The retail experience is stuck in the 1980s. E-commerce continues to put more and more pressure on brick and mortar stores. Additionally, online-only retailers will continue extending their brands offline catalyzing even further innovation in the offline world. I expect this is the year that physical retailers really start to modernize. They need to. This will take many forms, from innovations in merchandising, pricing, customer service and loyalty programs to hopefully the launch of new offline retailers that start with a modernized experience. But what excites me is seeing the online advantages brought offline, such as curation, personalization and the connection between online and offline in one singular experience (in-store pickup, delivery, local inventory). Innovation will also occur behind the scenes, in terms of inventory management, robust in-store analytics and customer intelligence. If this doesn’t happen fast, say goodbye to many of the big box brands you have come to love.

Crowdfunding of startups doesn’t emerge.Venture capital itself is not immune to disruption, but I do not believe that crowd funding sites that allow anonymous investors to pour money into startups that sound cool is a lasting trend. Investing in startups is really hard and most people lose most of their money most of the time (including the best VCs). Having investors on your cap table who understand the high likelihood of loss and behave predictably when this occurs is underrated. New investors not prepared for this will cause headaches, or worse, bring down the company. Access to early stage capital is not the limiting factor for startups and pooling together momentum-driven capital to fund 18 months of web development is not a value add. Having experienced investors who can help your company grow is more important in the hard times than the good ones. Crowdfunding projects and products is awesome, but the jury is still out on crowd-investing.

(Read more from startup mentor David Tisch.)