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Trump to pressure Iran by branding its Guard a terror group

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WASHINGTON — In an unprecedented step to ramp up pressure on Tehran, the Trump administration is planning to designate Iran’s Revolutionary Guard a “foreign terrorist organization.” The move is expected to further isolate Iran and could have widespread implications for U.S. personnel and policy in the Middle East and elsewhere.

The Trump administration has escalated rhetoric against Iran for months, but this will mark the first such designation by any American administration of an entire foreign government entity. Portions of the Guard, notably its elite Quds Force, have been targeted previously by the United States.

Officials informed of the step said an announcement was expected as early as Monday.

Two U.S. officials and a congressional aide confirmed the planned move. They were not authorized to discuss the matter publicly and spoke on condition of anonymity. Iran’s foreign minister, Mohammad Javad Zarif, seemed to anticipate the designation, saying in a tweet Sunday aimed at President Donald Trump that Trump “should know better than to be conned into another US disaster.”

This would be just the latest move by the Trump administration to isolate Iran. Trump withdrew from the Obama administration’s landmark nuclear deal with Iran in May 2018 and, in the months that followed, reimposed punishing sanctions including those targeting Iran’s oil, shipping and banking sectors.

The Revolutionary Guard designation, planning for which was first reported by The Wall Street Journal, comes with sanctions, including freezes on assets the Guard may have in U.S. jurisdictions and a ban on Americans doing business with it or providing material support for its activities.

Although the Guard has broad control and influence over the Iranian economy, such penalties from the U.S. may have limited impact. The designation, however, could significantly complicate U.S. military and diplomatic work, notably in Iraq, where many Shiite militias and Iraqi political parties have close ties to the Guard. And in Lebanon, where the Guard has close ties to Hezbollah, which is part of the Lebanese government.

Without exclusions or waivers to the designation, U.S. troops and diplomats could be barred from contact with Iraqi or Lebanese authorities who interact with Guard officials or surrogates.

The Pentagon and U.S. intelligence agencies have raised concerns about the impact of the designation if the move does not allow contact with foreign officials who may have met with or communicated with Guard personnel. Those concerns have in part dissuaded previous administrations from taking the step, which has been considered for more than a decade.

It was not immediately clear whether the designation would include such carve-outs.

In addition to those complications, American commanders are concerned that the designation may prompt Iran to retaliate against U.S. forces in the region, and those commanders plan to warn U.S. troops remaining in Iraq, Syria and elsewhere of that possibility, according to a third U.S. official. This official was not authorized to discuss the matter publicly and spoke on condition of anonymity.

Aside from Iraq, where some 5,200 American troops are stationed, and Syria, where some U.S. 2,000 troops remain, the U.S. 5th Fleet, which operates in the Persian Gulf from its base in Bahrain, and the Al Udeid Air Base in Qatar, are potentially at risk.

A similar warning is also expected from the State Department of possible Iranian retaliation against American interests, including embassies and consulates, and anti-American protests, the first two U.S. officials said. Similar alerts were issued at the start of the Iraq War in 2003 and more recently when the Trump administration announced it would recognize Jerusalem as Israel’s capital.

Despite the risks, Iran hard-liners on Capitol Hill, such as Sens. Tom Cotton, R-Ark., and Ted Cruz, R-Texas, and elsewhere have long advocated for the designation. They say it will send an important message to Iran as well as deal it a further blow after Trump pulled out of the 2015 nuclear deal and reimposed economic sanctions.

Secretary of State Mike Pompeo and national security adviser John Bolton have taken up the call and have in recent months spoken stridently about Iran and its “malign activities” in the region.

Pompeo has made clear in public comments that pressure on Tehran will only increase until it changes its behaviour. Just last week, Pompeo’s special representative for Iran, Brian Hook, accused Iran and its proxies of being responsible for the death of 608 U.S. troops in Iraq between 2003 and 2011. He cited newly declassified Defence Department information for the claim, which is expected to be used in the justification for the Guard designation.

“Secretary Pompeo will continue to use all the tools at our disposal to press the regime to change its destructive policies for the benefit of peace in the region and for the sake of its own people, who are the longest-suffering victims of this regime,” Hook said, in an indication that new action is coming.

The department currently designates 60 groups, such as al-Qaida and the Islamic State and their various affiliates, Hezbollah and numerous militant Palestinian factions, as “foreign terrorist organizations.” But none of them is a state-run military.

Once a designation is announced by the secretary of state in co-ordination with the Treasury secretary, Congress has seven days to review it. If there are no objections, it then will take effect.

___

Associated Press reporter Lolita C. Baldor contributed to this report.

By Matthew Lee And Susannah George, The Associated Press

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Mortgaging Canada’s energy future — the hidden costs of the Carney-Smith pipeline deal

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By Dan McTeague

Much of the commentary on the Carney-Smith pipeline Memorandum of Understanding (MOU) has focused on the question of whether or not the proposed pipeline will ever get built.

That’s an important topic, and one that deserves to be examined — whether, as John Robson, of the indispensable Climate Discussion Nexus, predicted, “opposition from the government of British Columbia and aboriginal groups, and the skittishness of the oil industry about investing in a major project in Canada, will kill [the pipeline] dead.”

But I’m going to ask a different question: Would it even be worth building this pipeline on the terms Ottawa is forcing on Alberta? If you squint, the MOU might look like a victory on paper. Ottawa suspends the oil and gas emissions cap, proposes an exemption from the West Coast tanker ban, and lays the groundwork for the construction of one (though only one) million barrels per day pipeline to tidewater.

But in return, Alberta must agree to jack its industrial carbon tax up from $95 to $130 per tonne at a minimum, while committing to tens of billions in carbon capture, utilization, and storage (CCUS) spending, including the $16.5 billion Pathways Alliance megaproject.

Here’s the part none of the project’s boosters seem to want to mention: those concessions will make the production of Canadian hydrocarbon energy significantly more expensive.

As economist Jack Mintz has explained, the industrial carbon tax hike alone adds more than $5 USD per barrel of Canadian crude to marginal production costs — the costs that matter when companies decide whether to invest in new production. Layer on the CCUS requirements and you get another $1.20–$3 per barrel for mining projects and $3.60–$4.80 for steam-assisted operations.

While roughly 62% of the capital cost of carbon capture is to be covered by taxpayers — another problem with the agreement, I might add — the remainder is covered by the industry, and thus, eventually, consumers.

Total damage: somewhere between $6.40 and $10 US per barrel. Perhaps more.

“Ultimately,” the Fraser Institute explains, “this will widen the competitiveness gap between Alberta and many other jurisdictions, such as the United States,” that don’t hamstring their energy producers in this way. Producers in Texas and Oklahoma, not to mention Saudi Arabia, Venezuela, or Russia, aren’t paying a dime in equivalent carbon taxes or mandatory CCUS bills. They’re not so masochistic.

American refiners won’t pay a “low-carbon premium” for Canadian crude. They’ll just buy cheaper oil or ramp up their own production.

In short, a shiny new pipe is worthless if the extra cost makes barrels of our oil so expensive that no one will want them.

And that doesn’t even touch on the problem for the domestic market, where the higher production cost will be passed onto Canadian consumers in the form of higher gas and diesel prices, home heating costs, and an elevated cost of everyday goods, like groceries.

Either way, Canadians lose.

So, concludes Mintz, “The big problem for a new oil pipeline isn’t getting BC or First Nation acceptance. Rather, it’s smothering the industry’s competitiveness by layering on carbon pricing and decarbonization costs that most competing countries don’t charge.” Meanwhile, lurking underneath this whole discussion is the MOU’s ultimate Achilles’ heel: net-zero.

The MOU proudly declares that “Canada and Alberta remain committed to achieving Net-Zero greenhouse gas emissions by 2050.” As Vaclav Smil documented in a recent study of Net-Zero, global fossil-fuel use has risen 55% since the 1997 Kyoto agreement, despite trillions spent on subsidies and regulations. Fossil fuels still supply 82% of the world’s energy.

With these numbers in mind, the idea that Canada can unilaterally decarbonize its largest export industry in 25 years is delusional.

This deal doesn’t secure Canada’s energy future. It mortgages it. We are trading market access for self-inflicted costs that will shrink production, scare off capital, and cut into the profitability of any potential pipeline. Affordable energy, good jobs, and national prosperity shouldn’t require surrendering to net-zero fantasy.If Ottawa were serious about making Canada an energy superpower, it would scrap the anti-resource laws outright, kill the carbon taxes, and let our world-class oil and gas compete on merit. Instead, we’ve been handed a backroom MOU which, for the cost of one pipeline — if that! — guarantees higher costs today and smothers the industry that is the backbone of the Canadian economy.

This MOU isn’t salvation. It’s a prescription for Canadian decline.

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Cost of bureaucracy balloons 80 per cent in 10 years: Public Accounts

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By Franco Terrazzano 

The cost of the bureaucracy increased by $6 billion last year, according to newly released numbers in Public Accounts disclosures. The Canadian Taxpayers Federation is calling on Prime Minister Mark Carney to immediately shrink the bureaucracy.

“The Public Accounts show the cost of the federal bureaucracy is out of control,” said Franco Terrazzano, CTF Federal Director. “Tinkering around the edges won’t cut it, Carney needs to take urgent action to shrink the bloated federal bureaucracy.”

The federal bureaucracy cost taxpayers $71.4 billion in 2024-25, according to the Public Accounts. The cost of the federal bureaucracy increased by $6 billion, or more than nine per cent, over the last year.

The federal bureaucracy cost taxpayers $39.6 billion in 2015-16, according to the Public Accounts. That means the cost of the federal bureaucracy increased 80 per cent over the last 10 years. The government added 99,000 extra bureaucrats between 2015-16 and 2024-25.

Half of Canadians say federal services have gotten worse since 2016, despite the massive increase in the federal bureaucracy, according to a Leger poll.

Not only has the size of the bureaucracy increased, the cost of consultants, contractors and outsourcing has increased as well. The government spent $23.1 billion on “professional and special services” last year, according to the Public Accounts. That’s an 11 per cent increase over the previous year. The government’s spending on professional and special services more than doubled since 2015-16.

“Taxpayers should not be paying way more for in-house government bureaucrats and way more for outside help,” Terrazzano said. “Mere promises to find minor savings in the federal bureaucracy won’t fix Canada’s finances.

“Taxpayers need Carney to take urgent action and significantly cut the number of bureaucrats now.”

Table: Cost of bureaucracy and professional and special services, Public Accounts

Year Bureaucracy Professional and special services

2024-25

$71,369,677,000

$23,145,218,000

2023-24

$65,326,643,000

$20,771,477,000

2022-23

$56,467,851,000

$18,591,373,000

2021-22

$60,676,243,000

$17,511,078,000

2020-21

$52,984,272,000

$14,720,455,000

2019-20

$46,349,166,000

$13,334,341,000

2018-19

$46,131,628,000

$12,940,395,000

2017-18

$45,262,821,000

$12,950,619,000

2016-17

$38,909,594,000

$11,910,257,000

2015-16

$39,616,656,000

$11,082,974,000

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