The only answer to the Iranian nuclear problem is democracy. The Ahmadinejad administration is already notorious for its mediocrity, and for its domination by the military and intelligence sectors. Allegations that the Islamic Republic has supplied Sunni terrorists in Iraq with armor-piercing bombs has put Iran on a collision course with the hitherto unfailingly conciliatory British. The time for a new grand bargain with Iran's people has arrived. Instead of saber-rattling, the U.S. must encourage the unfolding discussions in Iran. Every element of this new bargain must be seen as part of a grand strategy to help the Iranian people achieve their dream of democracy.