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    Front Page
    

US moves towards engaging Iran

Sunday's mortar attacks on the Green Zone in Baghdad may be a harbinger of things to come unless the United States accommodates Iranian interests. And with the George W Bush administration's grudging admission of the realities of the political alignment in Tehran, "unconditional talks" between the countries are in the offing. The real issue now is whether the emboldened leadership in Tehran shares Washington's sense of urgency. - M K Bhadrakumar (Mar 26, '08)


Crisis looms for Myanmar's riven junta
With top junta members under investigation for corruption and the health of senior general Than Shwe deteriorating, Myanmar's leadership is in a state of paralysis. But all the while, tension between rival junta factions is building and something will likely give soon, in the form of a mutiny, purge, or palace coup. - Larry Jagan (Mar 26, '08)

Unreal Rambo finds an army of fans
Rambo averages a record 2.59 killings per minute in his latest cinematic orgy of violence, this time against Myanmar's military regime. As a window into what is really happening inside the conflict-torn country, the film is a failure. All the same, it has struck a chord with the Karen people, whose real war against the regime continues. - Brian McCartan (Mar 26, '08)

The fateful Battle of Baghdad
In its five years under American occupation, Baghdad has been transformed from a metropolis into an urban desert, and various American "surges" have proven, in the end, disastrous. For the residents of the battered city, it's an endless wait for the Americans to leave. - Michael Schwartz (Mar 26, '08)

Very sick, and not getting better
Thousands of doctors have fled Iraq or been killed in the five years since the US invasion. There is a woeful shortage of hospital beds and equipment, and even when patients can dodge the bullets and militias to get to a hospital, most can't afford to pay. The humanitarian situation is one of the world's most critical, a report by the International Committee of the Red Cross concludes. - Alexander Casella (Mar 26, '08)

Will the real Ma please stand up
For years, the Kuomintang's Ma Ying-jeou has been considered an heir to the presidency of Taiwan. Now that he has taken the mantle, with a trail of contradictory campaign promises in his wake, the nation is left to decipher what kind of leader he will become. Ma already has some telling nicknames, among them "Mr Clean", "Mr Teflon" and "Mr Promises, Platitudes and Pablum". - Stephen A Nelson (Mar 26, '08)

India all at sea over US defense ties
A report by an independent watchdog has shot holes through a US$50-million deal the Indian navy inked to acquire the US battleship USS Trenton. The findings run from the ship's toxic leaks to fine print that prohibits it from any offensive action. The controversy has the potential to sink possible big-dollar India-US defense deals. - Siddharth Srivastava (Mar 26, '08)

KEBABBLE
Turkey seeks a
more modern Islam

Turkish highest religious authority has instructed top theologians to re-evaluate the oral traditions relating to the Prophet Mohammad. It's an ambitious attempt at a fundamental revision of the holy texts and Turkey has the capacity to do nothing less than recreate Islam, changing it from a religion whose rules must be obeyed, to one designed to serve the needs of people in a modern secular democracy. - Fazile Zahir (Mar 26, '08)




Tibet, the 'great game' and the CIA
The main beneficiary of the death and destruction in Tibet could be the United States. For Washington and the Central Intelligence Agency, with its deep involvement in the Free Tibet Movement, this is a heaven-sent opportunity to create significant leverage against Beijing, with little risk to American interests. For China, the seriousness with which it is treating the unrest is illustrated by the deployment of a large number of important army units. - Richard M Bennett (Mar 25, '08)

SPENGLER
The mustard seed
in global strategy

With Pope Benedict's baptism of Magdi Allam, a prominent Muslim-born journalist who converted to Catholicism during Easter services, the global agenda is changed through the soul of a single man. Since September 2001, the would-be wizards of Western strategy have tried to conjure variations of Islamic "reform" or "democracy". None of this matters now, as Magdi Allam's case confirms.
(Mar 25, '08)

CAMPAIGN OUTSIDER
Black and white and
barely read at all

US presidential candidate Senator Barack Obama gave an intelligent speech on race relations to the wrong country. America doesn't want to think about much, least of all about a topic on which everyone's already an expert. - Muhammad Cohen (Mar 25, '08)

   What Obama's pastor really said (video)

DISPATCHES FROM AMERICA
Bonfire of puppy-tossers, and the beer test
A widely viewed Internet video of a US Marine throwing a cute puppy to its death in a ditch in Iraq has Americans gnashing their teeth at the appalling actions of a native son. It's disturbing stuff, but where's America's all-consuming concern for the hundreds of thousands of dead Iraqi humans? It's this dicshotomy that exposes the real reasons for the war, and the real risks that those who advocate its quick conclusion are taking. - Julian Delasantellis (Mar 25, '08)

Pakistan's new leaders target militants
Freshly installed Pakistani Prime Minister Yousuf Raza Gillani has already made his mark by freeing judges detained last year on President Pervez Musharraf's orders. In dealing with militancy, many expect the government to similarly unravel Musharraf's policies by treading softly. This will not mean an easy ride for al-Qaeda and radical jihadis, however. - Syed Saleem Shahzad (Mar 25, '08)

SPEAKING FREELY
China risks caution overkill
CITIC Group's decision to cancel its US$2 billion cross-shareholding deal with Bear Stearns highlights China's new mood of caution on investing in Western banks and may coincide with a rethink regarding its own financial organizations. Yet a return by China to the world of rigid financial sector compartmentalization would be in neither its own nor the global financial system's interests. - Sebastian F Bruck (Mar 25, '08)

THE MOGAMBO GURU
Economic stupidity is no solution
The International Monetary Fund surprises nobody with its call for taxpayers to bail out everybody caught in the subprime crisis. But it's another matter when a Financial Times editorial urges inflation. Don't folk understand that keeping the existing structure intact requires the same degree of economic stupidity all over again? (Mar 25, '08)

Promises and pandas for Taiwan's Ma
Saturday's decisive presidential victory by Kuomintang candidate Ma Ying-jeou was a clear mandate to rule the island and a humbling end for the era of President Chen Shui-bian. But with a sluggish economy, internal party divisions and complex relationships with Beijing and Washington, Ma faces an enormous balancing act. - Ting-I Tsai (Mar 25, '08)

Same game, new rules in Afghanistan
Obituaries for the Taliban's spring offensive are premature, though instead of trying to engage opposition forces head-on, the Taliban will open up new fronts in both Pakistan and Afghanistan. In return, North Atlantic Treaty Organization and United States-led troops will target the Taliban's safe havens straddling the border with Pakistan. - Syed Saleem Shahzad (Mar 20, '08)

CHAN AKYA
Why markets love dictators
This week's developments once again highlight the reasons for markets to prefer dictatorships over freewheeling democracies. Clarity in decision-making is more important than preserving the rights of individuals, for the benefit of society at large, as seen by the market reactions to recent political changes in India, Taiwan, Japan, Malaysia and China. (Mar 20, '08)

SEX IN DEPTH
My short time with Tito
It all started innocently enough: a simple research outing to uncover the underworld of Western sex workers in Asia. But then, at the unsubtle urging of an over-bulked Baltic bouncer named Tito, the venture became a tour of the sex trade "circuit". What came out was the naked truth about organized crime, immigration, sex and the story behind some of Asia's most notorious ports of call girls.
William Sparrow writes a weekly column looking at issues relating to sex in Asia. (Mar 20, '08)

Why Spitzer was Bushwhacked
Disgraced New York State governor Eliot Spitzer had cause to feel frisky when he visited Washington in February. As he was paying off a call girl, the press was preparing to run a Spitzer broadside against the world's biggest financial powers and President George W Bush, whom he described as a fugitive from justice and a partner in crime with predator lenders. It was a politically fatal coincidence. - F William Engdahl (Mar 19, '08)

Bernanke running out of bliss room
US Federal Reserve chief Ben Bernanke and his pack of merry pranksters, having given Wall Street yet more interest rate cuts, now have only a few months before they must conjure up other tricks to end the rot in the US economy as rate levels head toward their floor and inflation concerns mount. - Julian Delasantellis (Mar 19, '08)

THE ROVING EYE
Shocked, awed and left to rot
US Vice President Dick Cheney is spot on when he talks of "phenomenal changes" in Iraq. Millions of Iraqis have lost their homes, their jobs, their families, their dreams and in countless cases their own lives because of a pre-emptive war. And anti-American Muqtada al-Sadr will ultimately be the lord of what remains of Iraq. - Pepe Escobar (Mar 19, '08)

SUN WUKONG
Stumbling towards
Confucius-ville

As part a Beijing-sponsored "cultural renaissance", the 2,500-year-old teachings of Confucius are back in vogue as a counterbalance to the meteoric rise of modern China. But a plan to erect a US$4.2 billion "Chinese Cultural Symbolic City" in the philosopher's hometown has hardly inspired the peace and social harmony of which Confucius wrote. - Wu Zhong (Mar 19, '08)

China and India: Oh to be different
Once again, with the unrest in Tibet, Beijing has been caught unprepared and has revealed its inability to deal with dissent and difference, despite the stated goal of creating a harmonious society. In direct contrast, India's diverse polity has flourished against all the odds precisely because of its ability to acknowledge difference. - Pallavi Aiyar (Mar 18, '08)

THE BEAR'S LAIR
Sorry, I wasn't pessimistic enough
Early forecasts of declines in US house prices and of mortgage bad-debt losses have fallen far short of the mark and a far grimmer picture is developing. Losses to come are probably large enough to wipe out the banking system and failure of any one major house could be sufficient to bring down the world economy. - Martin Hutchinson (Mar 18, '08)

THE SHAPE OF US POPULISM
Part 2: Long-term effects of the Civil War
The present deepening and widening financial crisis is laying naked the wealth-making mechanisms of society's elites while wreaking havoc with the lives of low-paid workers. It is also making imminent a wave of populist reform that may extend for several decades. In this are echoes of the New Deal era and much earlier reactions to economic depressions. - Henry C K Liu
This is the second article in a four-part series

 Part 1: A rich free-market legacy - for some
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BEAR'S LAIR
Wall St greed to
feel the squeeze

The present unwinding of the US financial system, with serious and repeated losses still to come, will lead to fundamental change in the regulatory environment. Even as some new rules will prove as counterproductive as those they replace, the altered Wall Street that will emerge will be less exciting for the greedy - providing one of the few unequivocal benefits of the miserable recession ahead. - Martin Hutchinson

THE SHAPE OF US POPULISM Part 3: The progressive era
Ideological ferment at the close of the 19th century left the US with impressive political and economic reforms for future generations to build on. Yet fundamental issues - notably those involving race and economic centralization at the expense of economic democracy - dating back to the nation's birth have even now not been resolved. - Henry C K Liu

 Part 1: A rich free-market legacy - for some

 Part 2: Long-term effects of the Civil War

China's insurers look
to looser shackles

Consumers attracted by higher returns elsewhere have been shunning the once-buoyant Chinese life insurance industry, whose product attractions are limited by a government-imposed ceiling on interest rates paid on policies. Freedom to set their own rates, now under consideration, may help domestic companies win back customers and meet the challenge of increasing overseas competition. - Olivia Chung

Economic path opens
for China reunification

The Taiwanese electorate's support for Ma Ying-jeou and Beijing's restraint in the runup to the island's recent presidential election have created an atmosphere in which economic ties can strengthen and help move China towards reunification.

 THE MOGAMBO GURU

Risk management addiction
Former US Fed boss Alan Greenspan claims amid the worst financial crisis in 50 years that he eliminated "distressing inconsistencies of the unsophisticated forecasting world" in that very period. How? By putting together a bundle of half-witted assumptions that ignore what actually happens in the real world - which is that gamblers lose.

CREDIT BUBBLE BULLETIN
Nationalization and dislocation
Many investors may believe the Fed and the administration have discovered the right antidote to the credit crisis - witness the recent stocks rally. Yet rule changes regarding Fannie Mae and Freddie Mac are nothing less than a transfer of massive prospective credit losses directly to the taxpayer and the US and global markets in reality had "dislocation" written all over them. (Mar 25, '08)
Doug Noland reviews the previous week's events each Monday.

MARKET RAP
What goes up must come down The purchase of Bear Stearns by JP Morgan Chase marks another turn in the US financial drama as it deepens even further into a solvency crisis. The Fed's latest rates cut persuaded few investors that the end is in sight, with most markets barely breaking their downward slide on the news. (Mar 20, '08)
R M Cutler runs his eye over the ups and downs in the week's markets.




[Re The mustard seed in global strategy, Mar 26] ... When the Western powers cease their dishonest manipulations of Middle Eastern politics, then the tension will fade, and with it the source of Islamic extremism. If there is to be a great leader in our time, it is this task that he or she must accomplish.
Andrew Langford
USA
   Go to Letters to the Editor



 <IT WORLD>

One down, many to go
"Spam King" Robert Soloway's guilty plea in a Seattle court this week marked a notable victory in the battle against junk mail, but Internet users have no reason yet to lower their defenses against unwanted emails.
Martin J Young surveys the week's developments in computing, gaming and gizmos.



1. Tibet, the 'great game' and the CIA

2. The mustard seed in global strategy

3. Black and white and barely read at all

4. Bonfire of puppy-tossers, and the beer test

5. Pakistan's new leaders target militants

6. Promises and pandas for Taiwan's Ma 

7. Economic stupidity is no solution

8. Nationalization and dislocation

9. China risks caution overkill after Bear prudence

(24 hours to 11:59 pm ET, Mar 25, 2008)




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