The riches of ISIS 124

The Islamic State is a state, whether the world likes it or not (and its doesn’t). A state is populated territory governed by an authority which is able to enforce its will internally and hold off its enemies. IS/ISIS/ISIL is fully able to do that. It is doing it. (Though being at war, its borders are not yet firmly established.) It does not require recognition by other states, nor to be a member of the ludicrous United Nations.

What is more, it is a rich state.

From the Heritage Foundation:

The army of radical Islamists [IS/ISIS/ISIL] controls production of 30,000 barrels of oil a day in Iraq and 50,000 barrels in Syria. By selling the oil on the black market at a discounted price of $40 per barrel (compared to about $93 per barrel in the free market), ISIS takes in $3.2 million a day. …

The oil revenue, which amounts to nearly $100 million each month, allows ISIS to fund its military and terrorist attacks — and to attract more recruits from around the world, including America.

According to James Phillips, veteran expert in Middle Eastern affairs at The Heritage Foundation:

ISIS sells oil to consumers in territory it controls, roughly the size of Maryland, inside Syria and Iraq. The terrorist group also sells oil to a network of smugglers that developed in the 1990s during Iraqi dictator Saddam Hussein’s rule; that network smuggled oil out of Iraq into Turkey to avoid sanctions imposed by the United Nations.

ISIS also reportedly sells oil, through middlemen, to the Assad regime in Syria that is trying to quell rebellion there. When it comes to making a fast buck, the Middle East has no shortage of “strange bedfellows” willing to do business with each other.

[This is very likely to be true. It is the sort of thing that happens in the Arab Middle East. In Lebanon in the early 1980s, when war and civil war were raging there, I learnt that certain factions bought their weapons from other factions that they were fighting fiercely every day – JB]

Oil is only one of the sources of revenue for the Islamic State.

This is from Business Insider:

ISIS brings in nearly $12 million a month in revenues from extortion and other shady practices in the Iraqi city of Mosul alone in addition to $1 million to $3 million a day selling oil illegally. …

In a recent interview with Der Spiegel, Brookings Doha Center fellow Charles Lister explains how ISIS uses its control of food and water supplies to further its goals:

Money is key here. It is well-known that the IS is almost entirely self-financed. Its money comes from the control and illicit sale of oil and gas, agricultural products like wheat, the control of water and electricity and from imposing taxes within areas it controls. It is literally earning millions of dollars each week, and a great deal of this money is pumped into social services.

ISIS’s advance throughout northern Iraq has put vast quantities of prime farmland under the control of the militant organization. Large portions of five of Iraq’s most fertile provinces are currently under ISIS control.

These provinces are collectively responsible for producing 40% of the country’s wheat crop. The militants have also raided between 40,000 and 50,000 tons of grain from government silos in the north of the country.

Al Arabiya reported that ISIS has transported at least 700 tons of grain from western Iraq into Syria for milling and refining. ISIS then proceeded to sell the grain to the Iraqi government through third-parties in order to raise further funds.

ISIS has expanded this effort recently by making flour using the grain it stole from government mills throughout Mosul.

A source at Iraq’s Agricultural Ministry told Reuters that ISIS has placed close to 30% of Iraq’s entire farm production at risk.

This scarcity and food insecurity has driven up prices and increased the windfall that ISIS receives from its wheat trade.

Control of water resources and hydroelectric power stations provide further funding for ISIS. The control of massive pieces of infrastructure, such as the Tabqa Dam outside of ISIS’s de facto capital of Raqqah, Syria, along with the group’s short-lived seizure of the Mosul Dam in Iraq, further demonstrates ISIS’s capabilities and ambitions. … The dam generates electricity for Aleppo and the surrounding region. ISIS fighters made sure that the dam’s staff was left relatively unmolested, in order to ensure that the dam remained operational.

ISIS collects taxes on a variety of commercial items, such as trucks and cellphone towers Raqqa’s Credit Bank has transformed into a functioning tax authority, with shop owners paying $20 every two months to ISIS in exchange for utilities and security.

ISIS [also engages] in extortion, carjacking, and kidnapping. Kidnappings have become an especially lucrative source of funding for the organization as the group targets foreigners, and attempts to ransom them.

If kidnappings have “become an especially lucrative source of funding” for the Islamic State, it must be because some of their attempts to ransom the captured foreigners have been successful.

ISIS also seized cash and gold from the banks it captured.

Hundreds of airstrikes by the US Air Force will not destroy the Islamic State. Words of condemnation at international summits will not defeat it. The West has allowed the growth of this savage force, has encouraged Islam to believe that it can conquer the Middle East, Europe, and eventually the world. Islam is crowing its triumphalism. It will take iron resolve, a huge commitment of military forces, persistence, and first and foremost the precise defining of the enemy as Islam, if IS/ISIS/ISIL is to be destroyed.

President Obama has poked the nasty thing with a tentative finger, and reluctantly sanctioned some attacking of it from a dizzy height. He will not call the engagement a war. He has sent a few hundred military personnel to Iraq to … what? Advise someone about something?

He’s hoping other nations will do any real fighting that might be necessary. His fervent wish that America will not be perceived (by whom? his political base? the Nobel Peace Prize Committee?) as leading a coalition of states using military force is so desperate that he includes China, and even Iran in his hopes.

Meanwhile the Islamic State is growing, strengthening, flourishing, mass-murdering, and drawing tides of men from all over the world to join its wild jihad.

The war: report from the Iraqi front 225

The Islamic State (IS), al-Qaeda, Boko Haram, and Hamas are regiments of the Army of Islam, now waging open war on the non-Muslim world. This is a war of religion.

The strongest military power on the planet, the US, is engaging battle to as small an extent as it can. President Obama, highly sympathetic to Islam, but under pressure (called “advice”)  from the Joint Chiefs of Staff Chairman General Martin Dempsey, has reluctantly agreed to let a few bombs be dropped by the US Air Force on IS positions. And some military equipment – not too much and not too big and not too effective – is being supplied to the Kurds who are trying to repel the advance of the IS.

The majority of the Kurds are also Muslims. As the big religious war rages on in the Middle East, North Africa, and wherever else the Army of Islam strikes – Hamas against Israel, Boko Haram against the Christians of Nigeria and adjacent territories, al-Qaeda wherever it can – internecine Muslim battles are being savagely waged; and  the  Western governments’ and media’s “good guys” of the moment are the Kurds of Iraq, defending themselves against the advancing Islamic State.

The Washington Post reports:

On the newest front line of the expanding war being waged by Sunni militants for control of the Middle East, the juggernaut of the Islamic State’s advance appeared Saturday to have slowed, at least for now.

Buoyed by U.S. airstrikes the previous day, Kurdish pesh merga fighters said they pushed back an attempt by the extremists to overrun one of their artillery positions on the northern edge of the dust-blown town of Makhmour, south of Irbil. Makhmour was seized by Islamic State fighters Thursday.

At the same time, however, commanders said Islamic State fighters had begun to return to positions that US airstrikes had forced them to flee — a reminder that the so-far limited intervention may represent only the beginning of what President Obama warned Saturday could be a long campaign.

Though not – we suspect – if he can withdraw from it.

Hours later, the US military announced it had carried out four more airstrikes, in the Sinjar area farther west.

The Islamic State boasted in a video of its newest conquests, including Iraq’s biggest hydroelectric dam, outside Mosul. If breached, the dam would inundate towns and villages along the Tigris river and unleash flooding as far south as Baghdad.

The Washington Post sees the IS as an off-shoot of al-Qaeda:

The renegade al-Qaeda force is also reported to have made advances elsewhere across the vast stretch of territory it controls, in the Iraqi province of Anbar, in Kirkuk and in the eastern Syrian province of Hasakah.

Their spirits bolstered by the US intervention, Kurdish forces began to regroup after their rout in the past week, in which they retreated from a string of towns and villages. Tens of thousands of civilians, including Christians and Yazidis, were displaced.

As the sound of outgoing artillery and heavy machine-gun fire rang out across the undulating fields outside Makhmour, trucks bearing fresh supplies of ammunition and SUVs carrying uniformed officers hurtled to reinforce the front lines.

Hundreds of volunteers drawn from all over the Kurdistan region also streamed toward the battle, clutching ancient rifles and wearing the ballooning pants and waistcoats traditional to Kurdish culture.

The first of the three US  airstrikes had taken out an Islamic State artillery position nearby, and pesh merga commanders said they sensed the militants had been chastened by the attack.

“This power they had before, this momentum — we don’t see it now,” said Col. Mohsin Avdal, who sat poring over maps on an ammunition box beside a pile of several dozen newly arrived 107mm rockets. They were delivered, he said, from stocks the pesh merga already owned.

But there was little indication the airstrikes had done much more than slow the militant blitz through Iraq and Syria, where Islamic State forces now govern a vast swath of territory in the name of their self-proclaimed caliphate.

Pesh merga commanders said they had no immediate plans to attempt to push back the militants but rather were under orders to consolidate the positions they now hold.

“We are not moving forward. We are staying put. We are ready and we are strong,” said Mohammed Mohsin, a brigadier general who has come out of retirement to oversee the reinforcement of another front-line checkpoint outside the town of Kalak, east of Irbil.

“But they are really strong,” he added, referring to Islamic State forces. “Everything the Americans sold to the Iraqi army, they have it now.”

The two other American strikes hit an Islamic State mortar position and a convoy a little more than a mile beyond the checkpoint, deterring an attempt by the militants to advance on the position, Mohsin said. Kurdish fighters who visited the site shortly after the strike found the remains of four US-made Humvees that had been captured from the Iraqi army and the bodies of 13 Islamic State fighters. It was all that remained of a convoy that had attempted to advance on the Kurdish position.

But the Kurdish fighters lacked the resources to hold the location and were ordered back to their base at Kalak, Mohsin said.

Later in the day, Islamic State fighters were seen returning to the area, according to Brig. Gen. Azad Hawezi, who commands forces in the area.

“They are bringing new people and more of those weapons they captured from the Iraqi army,” he said.

“They have American weapons, and they have American vehicles,” he added. “Obviously, they are strong.”

Unless the pesh merga are able to make advances, “it would seem likely that further [Islamic State] progress or escalated US airstrikes are the only eventualities,” said Charles Lister of the Brookings Doha Center in Qatar.

(Interruption: Did you know there was a Brookings Center in Qatar? Why would that be?)

Airstrikes by themselves can only ever represent a potential temporary fix against a force like the Islamic State.”

The United States has promised to send arms and ammunition, but the pesh merga say they would need a massive influx to be able to make real gains against the militants. Their forces are stretched thin along a 650-mile front line, and although Kurdish civilians swarmed to offer their services as reinforcements, their utility was in question.

“We have guns, but we need heavy weapons,” said Abdul Aziz Ibrahim, 52, a farmer who fled the advance of the Islamic State on Makhmour overnight Thursday and has returned to join the fight as a volunteer, armed with an aged AK-47 borrowed from a relative.

“The pesh merga ran out of ammunition. There were too many of them,” he said, describing how the entire town fled within minutes of the first shell fired by Islamic State fighters. “Only the American Air Force can save us.”

Other Kurdish civilians had bought guns, flak jackets and helmets on the open market, making their way to the front lines from as far afield as the Iranian border.

Though enthusiastic, the volunteers seemed only to be getting in the way. They milled around checkpoints, taking turns to peer through binoculars at the front line about a mile away whenever an explosion thundered through the air, and they clogged roads the real fighters were using to ferry supplies and men to the front.

Lt. Col. Abdul Aziz Ali Mustafa, who was directing the deployment of fighters on the outskirts of Makhmour, predicted a long fight.

“All we can do is defend our territory and prepare to die, until someone finds a solution,” he said. “This is a big problem, involving all the Arab world. It is not something we can solve.”

War is now the only answer. War against Islam waged by all possible means with the intention of winning. If it is not, Islam will win.