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US puts its faith in Pakistan's military

A deal hatched between the Pakistani military and United States Secretary of State Hillary Clinton cleared the path for Hamid Karzai to be re-elected for a second term as Afghanistan's president. With Karzai's challenger, Abdullah Abdullah, now out of the picture, Pakistan's military will actively mediate between Washington and the Taliban. Along with Abdullah, the big loser is Pakistan's President Asif Ali Zardari. - Syed Saleem Shahzad (Nov 5, '09)

UNDER THE AFPAK VOLCANO, Part 1
Welcome to Pashtunistan
A rough beast, its hour come at last, Pashtunistan is already being born across the strategic corridor straddling eastern Afghanistan and western Pakistan. If the Pakistani Taliban and their Pashtun allies manage to establish full control, with or without jihadi support, an Islamic emirate will for all practical purposes be constituted. - Pepe Escobar (Nov 5, '09)
This is the first article in a two-part report.


Iran looks to Argentina for nuclear fuel
Iran hopes to revive nuclear ties with Argentina that have been stalled since Tehran was accused of involvement in the 1994 bombing of a Jewish center in Buenos Aires. Suspicious of a United Nations-backed proposal that its uranium be processed in France, Iran prefers the Argentina option as it would shut out Europe and see the United States become a more central player. - Kaveh L Afrasiabi (Nov 5, '09)

Is Obama's Iran policy doomed?
China has a massive investment in Iranian energy and is willing to supply gasoline to that country in the face of United States threats of sanctions. The attitude of China - and Russia - towards Tehran's nuclear plans also varies radically from Washington's. In the face of this, US President Barack Obama's current Iran policy is unlikely to work. - Dilip Hiro (Nov 5, '09)

India on brink of Maoist offensive
More than 70,000 paramilitary troops are poised to begin Operation Green Hunt, a massive offensive against Maoist rebels in India's northeast "Red Corridor", should a final appeal to the Maoists to sit down with the government for talks fail. - Ranjit Devraj (Nov 5, '09)

INTERVIEW
Uyghur activist seeks talks with Beijing
An avowed critic of China's ethnic policy in the Xinjiang region, Uyghur activist Rebiya Kadeer says Beijing is guilty of persecuting dissidents from her minority, as well as of an economic bias in favor of the Han majority. Rejecting claims she is a terrorist and organized deadly riots, Kadeer wants dialogue with Beijing. - Catherine Makino (Nov 5, '09)

SPEAKING FREELY
How Eurocentric is your day?
A Boston professor, teaching his students about Eurocentric biases in Western accounts of the rise of the global economy, poses a simple question to get his point across. Can they get through a typical day without running into ideas, institutions, values, technologies and products that originated outside the West? The answer is, of course, no. - M Shahid Alam (Nov 5, '09)



Russia, India and China go their ways
Despite its best efforts, Russia failed at a recent trilateral summit to get India and China to agree to a common regional initiative regarding Afghanistan. This failure ensures that the United States can now press ahead with its own strategy of striking grand bargains individually with these key players. - M K Bhadrakumar (Nov 4, '09)

US frets over Tokyo drift
The United States-Japan alliance remains a cornerstone of US security in the Pacific, but Prime Minister Yukio Hatoyama's pledges to create more independence for Japan and a viable East Asian community have led to uncertainty in Washington. Domestically, Hatoyama faces a delicate balancing act as he attempts to satisfy the demands of the public, pacifist coalition members, and an ever-more assertive Japanese military. - Peter J Brown (Nov 4, '09)

Who will be the last frog in the well?
After centuries of Sinocentrism behind the Great Wall and secretive imperial politics within the Forbidden City, China's opening up and thirst for a greater understanding of the foreign world has sparked a global Chinese renaissance in engineering, computing and the classical arts. Should the West not try and dispel its suspicions over this model of modernization, it runs a real risk of being left behind. - David Gosset (Nov 4, '09)

Obama's world outreach teetering
Just months after well-received speeches in Turkey and Egypt, setbacks from Afghanistan to the West Bank to Pakistan, Iraq and Iran have seen belief plunge in the Muslim world over United States President Barack Obama and his plans for progress. With this, anti-US sentiment is back on the rise. - Jim Lobe (Nov 4, '09)

Little Laos relishes its big moment
For the first time, Laos will host the Southeast Asian Games, with the 25th edition of the 11-country sporting fest taking place next month. The tiny landlocked country has had to rely on massive foreign aid - notably from China - to stage the event, arousing considerable scorn in some circles. Yet, the enduring theme of Laos' history has been its engagement with and dependence on foreign powers. For Laos, this is a glorious coming-out for the one-party state. - Simon Creak (Nov 4, '09)

Iraqis divide ahead of elections
Any hopes that sectarianism was on the way out in Iraq died with the massive August 19 and October 25 terror attacks in Baghdad. Sects and communities are once again divided, and the coalitions that have been formed to contest January's elections are a clear reflection of these poisoned waters. - Sami Moubayed (Nov 4, '09)

China hints at move to rein in growth
China's decision to increase the number of funds that invest domestic savings in overseas markets may be a prelude to a tighter monetary policy as the country's recovering economy surges towards double-digit growth. - Olivia Chung (Nov 4, '09)

Jaipur blaze challenges India's oil priorities
A week-long fatal oil inferno close to the famed Indian "Pink City" of Jaipur, soon after a similar blaze in Puerto Rico, has raised concerns about placing oil depots close to population centers and local authorities' failure to limit residential and other developments in their proximity. The priorities of Indian Oil Corp's management are also being challenged. - Raja Murthy (Nov 4, '09)

China's Three Gorges Dam comes of age
Fifteen years since work began and at a cost of between US$8 billion to $27 billion, the water level in the reservoir behind the Three Gorges Dam on the Yangtze River will soon reach its final height of 175 meters. Officials, though, aren't celebrating too loudly: as China searches for new forms of renewable energy, the dam has become a monument to obsolete ambitions. (Nov 3, '09)

The polling booths are finally closed
The Independent Election Commission in Afghanistan has vigorously defended its decision to hand President Hamid Karzai a second five-year term following the withdrawal of his challenger, Abdullah Abdullah. At the same time, the commission makes it clear the matter is not up for debate - it's time to move on, like it or not. - Derek Henry Flood (Nov 3, '09)

DISPATCHES FROM AMERICA
Afghanistan as a bailout state
In Washington's terms, the disaster unfolding daily in Afghanistan is not the definition of failure. In economic lingo, it now falls into the category of "too big to fail", which means upping the ante; America's leaders always opt for more in counter-insurgency disasters rather than cutting their losses. - Tom Engelhardt (Nov 3, '09)

Fighting the 'good' war
Afghanistan is not Washington's "good war", though it is now characterized in that fashion not only by the Republican right wing but by President Barack Obama and many Democrats who were critical of the "Bush" Iraq war. - Jack A Smith (Nov 3, '09)

Drugs, guns and war in Myanmar
Insurgent groups in the north of Myanmar have begun flooding the region with cheap narcotics to boost revenues as part of a concerted weapons build-up. An illicit trade that for years benefited the military leadership may now help fund a re-ignited civil conflict that has the potential to spill over and rattle relations with close ally Beijing. - Brian McCartan (Nov 3, '09)

New heights for Singapore property
Singapore's property market, buffeted as the city-state felt the full brunt of the global financial crisis, is rebounding so strongly that home sales are setting records and potential buyers are leaving blank checks with agents to secure new apartments in new projects. - Megawati Wijaya (Nov 3, '09)

THE BEAR'S LAIR
Bernanke learns from the wrong crash
United States Federal Reserve chairman Ben Bernanke, noted as a specialist on the 1929 market crash and the Great Depression, would be better off looking at other financial disasters over the centuries for lessons more pertinent to the present crisis. - Martin Hutchinson (Nov 3, '09)

US goofs the Afghan election
Presidential candidate Abdullah Abdullah's withdrawal from a runoff that he had scant chance of winning ends what had become a mere sideshow to more significant events unfolding in Kabul. President Hamid Karzai can now firmly take center stage. He has turned the tables on Western powers that would have seen him vilified and overthrown, and, if the rift worsens, he could yet blow the lid on an explosive issue: the role of foreign troops in the narcotics trade. - M K Bhadrakumar (Nov 2, '09)

Al-Qaeda has plans for its new recruit
With the recent appointment of Ilyas Kashmiri as head of its military committee, al-Qaeda has recruited a veteran who learned his trade on the battlefields of Afghanistan and during the insurgency against India in disputed Kashmir. Ilyas also took with him his elite 313 Brigade, which al-Qaeda claims it now wants to unleash. A foiled plot in Denmark could be a prelude. - Syed Saleem Shahzad (Nov 2, '09)

SPENGLER
The idiot twins of
American idealism

It is mad to believe, as the George W Bush administration did, that the United States can remake the world in its own image. It is even madder to turn foreign policy into an affirmative action program for disadvantaged or dying cultures. In such lean times, Washington's "realists" do not seem focused on what should be a core interest, fostering viable partners for the future and jettisoning those that are beyond viability. - Spengler (Nov 2, '09)

Chinese general enters US military core
Ahead of United States President Barack Obama's first official visit to Beijing, China's second-highest officer became the first People's Liberation Army member to visit US Strategic Command headquarters. Both sides are sending the right signals in pursuit of strengthening military-to-military ties; beneath the surface, improved relations do not appear an urgent priority. - Peter J Brown (Nov 2, '09)

Doubles, toil and trouble in Pyongyang
North Korean leader Kim Jong-il's sprightly appearance in a spate of public showings since he reportedly suffered a stroke, including meetings with China's Premier Wen Jiabao and former United States president Bill Clinton, has re-ignited rumors there is a troupe of look-alike Dear Leader actors. - Donald Kirk (Oct 30, '09)

AN ATOL INVESTIGATION
Deep inside Indonesia's kill zone
Indonesia's Detachment 88 counter-terrorism teams are seen by some critics as too willing to kill suspects and so do away with the need for long trials of suspected jihadis. Yet the training of these crisis response teams, and their weaponry, is in many ways inadequate for confronting at close quarters suicidal and well-armed opponents. - John McBeth (Oct 30, '09)

<IT WORLD>
Microsoft reliable as ever
Microsoft has maintained its reputation for delivering fierce headaches along with its new software offerings. Many would-be users of Windows 7 are discovering that the company's new operating system fails to install satisfactorily and their computers then refuse to restore the old system.
Martin J Young surveys the week's developments in computing, science, gaming and gizmos. (Oct 30, '09)

CHAN AKYA
Time to go Dutch
The ruling by the European Union Commissioner for Competition that Dutch bank ING Groep should sell its insurance unit and US banking arm demonstrates that the Europeans, unlike their US counterparts, are taking the right route regarding stewardship of the global financial system. (Oct 30, '09)

SINOGRAPH
China no longer
a law unto itself

China and the West, in particular ancient Rome and Greece, followed markedly different routes on the way to developing the legal systems in use today. The West was notably influenced by the needs of merchants and the market place for equitable regulation, while China saw this as a threat to central power. As China steps onto the international stage, it will have to reconcile such differences. - Francesco Sisci (Oct 22, '09)

Helicopter rumors refuse to die
The United States is battling yet another rumor in Afghanistan, that Western forces are using helicopters to transport Taliban fighters from the volatile south to the north of the country. Officials have dismissed the claims as rubbish, but locals are sticking to their stories. - Ahmad Kawoosh (Oct 28, '09)

Taliban take over Afghan province
Following the withdrawal of United States troops from key bases, the Taliban have taken control of Afghanistan's Nuristan province. It is now under Qari Ziaur Rahman, a Taliban commander with strong ties to Osama bin Laden and al-Qaeda. With this haven, the Taliban's first goal is to disrupt next month's runoff presidential election, then to assist militants in Pakistan. - Syed Saleem Shahzad (Oct 28, '09)

SUN WUKONG
Insurers denied run of property
The Chinese government's decision to allow insurance companies to invest some of their near US$500 billion in holdings directly in real estate has property developers keenly anticipating a new inflow of cash. Yet the red tape with which Beijing is tying up the reform should be sufficient to ensure no quick bucks - or sharp losses - for anyone. - Wu Zhong (Oct 26, '09)
David P Goldman
(Nov 4, '09)
.. a consulting economist has to get attention ... Nouriel Roubini's attention-getting ... is getting tiresome



China's sleepy Hengqin wakes up
A relatively undeveloped corner of the Pearl River Delta immediately west of Macau is being lined up for an extensive makeover. Hengqin island, part of the mainland city of Zhuhai, is to be transformed into a resort paradise featuring golf courses and theme parks. In the process, Macau and Hong Kong will be more intimately integrated into the mainland delta, tricky legal relationships permitting. - Kent Ewing

Iran claim clouds
Turkey's energy goals

The ambiguity of Turkey's role as a transit country for natural gas headed for Europe is deepening, Iran's claim to be in talks with European firms on supplying the planned Nabucco pipeline, discounted by one company involved with that project, being only one part of the puzzle. Not in doubt is Ankara's warming links with Tehran. - Robert M Cutler

D-8 looks forward
to stronger ties

The Group of Eight Islamic Developing Countries, or D-8, is looking towards greater and more meaningful cooperation, with Turkey, Pakistan and Egypt at the forefront of efforts to strengthen trade, energy and other ties. Achievement of a preferential trade agreement remains a distant prospect. - Kaveh L Afrasiabi

Empty boasts of glory
Celebrations of the much-welcomed emergence of the United States economy from recession are premature, given that the only force driving this apparent recovery is increased government spending. The performances of Australia, New Zealand, China and India stand in marked contrast. - John Browne

FROM THE BLOG
Evidence lacking
Contrary to academic economist Nouriel Roubini's claims of a thriving US dollar carry trade, there is NO evidence that the world is borrowing money to buy equities. American assets have gotten cheaper. - David Goldman




CREDIT BUBBLE BULLETIN
The newest abnormal
It's as if there's a contest to coin a catchy phrase that will gain popular acceptance - and persuade the public that everything in the garden is rosy, or at least heading that way. Now we have the "new normal" - a misnomer for what is, in fact, the "new abnormal" of unrelenting monetary disorder.
Doug Noland looks at the previous week's events each Monday. (Nov 2, '09)

MARKET RAP
No silver lining
An end-of-week revival in prices put a positive sheen on recent trading that might survive for a few more days. The longer prospect is for more or less generalized declines.
R M Cutler runs his eye over the ups and downs in the week's markets. (Oct 30, '09)





"What is interesting is that US media resembles 'camps' - you watch Rupert Murdoch's stuff if you lean right, while much of the rest leans outright left. So the only way to secure a balanced opinion is to average the views across the channels. Not sensible at all. ... There is a very interesting sociological experiment going on in the US media, from what I as an outsider can see, just not sure that its worth examining all by itself. ..." - Chan Akya

"Good luck trying to examine the process without getting caught up in the content. Have not watched mainstream TV news for 20 years or so, and don't feel like I'm missing anything. Its entertainment, a kind of gong show suitable for those who are addicted to TV. ..." - Michael

"... America, your mainstream news media have been hijacked by people who seek to influence you, not inform you. ..." - aquicke

From Our Mailbox
[Re Little Laos awaits its big moment, Nov 5, 2009] Laos has come a long way and it seems unimaginable that almost 50 years ago, US president John F Kennedy was threatening to use nuclear weapons on two of its provinces - Sam Neua and Phongsali - which he claimed harbored the Vietcong.
Mel Cooper
Singapore
   Go to Letters to the Editor



1. Russia, India and China go their ways

2. Who will be the last frog in the well?

3. Obama's world outreach teetering

4. US frets over Tokyo drift

5. China's Three Gorges Dam comes of age

6. Bernankeism - the art of spreading starvation

7. Little Laos relishes its big moment

8. The idiot twins of American idealism

9. Power shift

10. Fighting the 'good' war

(24 hours to 11:59pm ET, Nov 4, 2009)

Pick of the month Oct 2009
SPENGLER

Obama's permanent depression




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