From Art Cashin On The Floor Of The New York Stock Exchange……….

Posted By on March 16, 2010

Is It A Bluff Or Is It Battle Preparation? – Several blogs have picked up on reports that the U.S. may be transferring “bunker-buster bombs” to a base in the Indian Ocean.  Here’s a part of a story in the Sunday Herald of Scotland:

Hundreds of powerful US “bunker-buster” bombs are being shipped from California to the British island of Diego Garcia in the Indian Ocean in preparation for a possible attack on Iran.

The Sunday Herald can reveal that the U.S. government signed a contract in January to transport 10 ammunition containers to the island. According to a cargo manifest from the US navy, this included 387 “Blu” bombs used for blasting hardened or underground structures.

Experts say that they are being put in place for an assault on Iran’s controversial nuclear facilities. There has long been speculation that the US military is preparing for such an attack, should diplomacy fail to persuade Iran not to make nuclear weapons.

Although Diego Garcia is part of the British Indian Ocean Territory, it is used by the US as a military base under an agreement made in 1971. The agreement led to 2,000 native islanders being forcibly evicted to the Seychelles and Mauritius.

We still think the U.S. would have a tough time “going it alone”.  Forces in nearby Iraq and Afghanistan would be suddenly vulnerable.  The U.S. could not prevent a blockage of the Straits of Hormuz, cutting off huge supplies of oil.  Nevertheless, we’ll try to vet this story further.     Art Cashin

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