Welcome. This is Anastasia Yuglova bringing you the Cato Daily Podcast.

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As talks between Washington and Tehran continued, President Bush and Iranian President

Mahmoud Ahmadinejad gave separate speeches at the United Nations on Tuesday

sharply criticizing each other's policies.

With a resolution to the nuclear crisis still in the works, Cato's Vice

President for Defense and Foreign Policy Studies, Ted Gailail and Carpenter would like to offer Iran a

grand bargain as outlined in his new study, Iran's Nuclear Program, America's Policy

Options.

Ted joins us for today's podcast.

Let's talk about the options currently on the table for dealing with Iran.

There are several options.

One is to impose economic sanctions either through the United Nations Security Council or on an ad hoc basis by like-minded nations.

There is a suggestion for covert subversion to overthrow the regime.

There are suggestions for airstrikes to take out the Iranian nuclear installations.

And then finally, the options that I favor, namely either relying on deterrence that we can contain Iran and prevent it from threatening important American interests, or better yet striking a grand bargain with Iran.

I would imagine that if sanctions were to succeed, the United States would have to have the

EU3 on board as well.

Given President Jacques's aversion to the use of sanctions, would you say that this policy is likely to succeed or fail?

I think given the attitude of France, that's probably the death knell for effective sanctions.

Sanctions appear to be a weak option in any case,

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