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    Front Page
    
Sunnis make merry on US's dime

Iraq's Sunni-dominated Awakening Councils, bankrolled by the United States, have certainly blunted al-Qaeda, but they continue attacks on US and Iraqi forces. The Sunnis, using a "fight, bargain, subvert, fight" approach, are all the while working towards their ultimate goal of the complete withdrawal of US troops and reducing the power of the Shi'ite-dominated government. - Gareth Porter (Mar 4, '08)

UN deepens the Iran nuclear crisis
The third round of United Nations Security Council sanctions now hanging over Iran's head in connection with its nuclear program is the harshest yet. Tehran has dismissed the measures as "legally defective". But with US and French ships in the Persian Gulf poised to carry out the interdiction of vessels suspected of carrying nuclear cargo to and from Iran, the stage is set for the next chapter - physical confrontation. - Kaveh L Afrasiabi (Mar 4, '08)

SPEAKING FREELY
The 'rape' of Okinawa
Another month, another suspected rape incident involving a US soldier on Okinawa island in Japan. Both US ("regret") and Japanese ("unforgivable") officials make the right noises. But until Tokyo questions why a large standing army of Americans is still garrisoned on Japanese territory, the problem will persist. - Chalmers Johnson (Mar 4, '08)

Pre-election hopes for Malaysian opposition
The weekend's elections in Malaysia have been called the best chance the opposition has had to weaken the ruling party's grip on power in at least a decade. Economic and social problems have beset Prime Minister Abdullah Badawi, but the opposition may struggle to convert popular discontent into votes. - Ioannis Gatsiounis (Mar 4, '08)

SUN WUKONG
Green whirlwind sweeps China
China's National People's Congress this week upgrades its State Environmental Protection Administration into a mega-sized environmental ministry. This is part of a green policy geared to strengthening the country's "toothless tiger" laws. Whether other departments and provinces cooperate is another matter, particularly when their own interests are at risk. - Wu Zhong (Mar 4, '08)

Russia lays new tracks in Korean ties
The new administrations coming into the Kremlin in Moscow and Seoul's presidential Blue House, together with a new generation of leaders in Pyongyang, can radically change the political climate in the region and help resolve the peninsula's nuclear problem. - Leonid Petrov (Mar 4, '08)

In India, a gathering of ghost busters
In the 18th century, Guru Maharaj Deowiji of Malajpur was believed to have the ability to exorcise ghosts. Legend has it he passed on the power to his priests, who have in turn passed it on until today. The result is India's largest, if not only, "ghost fair", to which thousands of pilgrims flock each year to exorcise ghosts and spiritual possession. Psychologists call it mere superstition, but this is India, a land struggling to balance the ancient and the ultra-modern. - Shuriah Niazi (Mar 4, '08)



The 'laptop of mass destruction'
The "laptop documents" - 1,000 pages of data allegedly stolen from an Iranian computer - have been the US's hardest evidence of Iran's supposed intentions to build a nuclear weapon and an obstacle to the International Atomic Energy Agency declaring that Iran has resolved all questions about its nuclear program. Now there are indications the documents were obtained from Israel's Mossad via a terrorist organization. - Gareth Porter (Mar 3, '08)

Iran makes its mark in Iraq
Iranian President Mahmud Ahmadinejad is making the most of his red-carpet treatment in Iraq, handing out platitudes as well as the offer of a US$1 billion loan. Baghdad's government needs all the support it can get, and plenty comes from Tehran. What it does not need is Iran's backing of the al-Qaeda-backed insurgency. But for Iran, this is a separate issue that has everything to do with Afghanistan. - Syed Saleem Shahzad (Mar 3, '08)

INTERVIEW
Let's talk about bombs
Matthew Bunn, non-proliferation expert
Given Iran's extended period of violating its nuclear safeguards agreement, says US award-winning Bunn, many countries will probably not accept Tehran's claim that all of the information that suggests weaponization activities is fabricated and baseless. Nevertheless, there is still room to negotiate, he tells Kaveh Afrasiabi. (Mar 3, '08)


CHAN AKYA
Dead dollar sketch
The demise of the world's reserve currency reads like a financial version of the infamous Monty Python Dead Parrot sketch. The arguments of US dollar supporters appear increasingly hollow. The implications are much more geopolitical than merely economic. (Mar 3, '08)

THE MOGAMBO GURU
Food for thought in price claim
It doesn't take a food hawker, least of all one from the summit of his profession, to tell us food prices are going up. But at rates "never seen before"? Food for thought indeed, unless like The Mogambo you have digested the risks of compounded inflation and stocked the larder with gold. (Mar 3, '08)

Why Arroyo won't go
Besieged with mass protests and allegations of mismanagement and moral impropriety, Philippine President Gloria Macapagal-Arroyo is standing her ground. Former presidents Corazon Aquino and Joseph Estrada have joined the calls for her resignation, but with the political, business and religious forces still aligned behind Arroyo, her downfall will likely need to come through the courts rather than the streets. - Shawn W Crispin (Mar 3, '08)

SPENGLER
Sing, o muse, the
wrath of Michelle

The release of Michelle Obama's undergraduate thesis from Princeton has revealed more about the woman who could be America's First Lady. Complete with rage and guilt, it is, among many things, a poignant cry from the heart of a young black woman from a working-class Chicago home. It also furthers the supposition that her wrath could keep her husband from the White House. (Mar 3, '08)

China, India play it again for Uncle Sam
With US Secretary of State Condoleezza Rice in Beijing and Secretary of Defense Robert Gates in New Delhi, the US's evolving Asian strategy is on display. Washington is out to convince China and India that each is a privileged partner of the US's global strategies, a part of which is containing a resurgent Russia. Beijing has welcomed the US "invitation", but Delhi is convinced the US is building up Indian capabilities just to make it a counterweight to China. - M K Bhadrakumar (Feb 29, '08)

Pakistan, US raise militant tempo
Thursday's missile attack by a US Predator drone in the Pakistan tribal areas has a significance far beyond the dozen or so militants killed. The pilotless craft was launched from a Pakistani airbase - a first - and the targets were hit in an Islamic seminary. In the border regions, these madrassas are widely used by militants to transfer weapons and for meetings - and until now they have fallen under the intelligence radar. - Syed Saleem Shahzad (Feb 29, '08)

Mouth-to-mouth will fail economies
The US government might yet pull the economy out of the jaws of recession through the short-term fix of raising spending on the military or the related disaster capitalism complex. But one way or another, the forces making for long-term global stagnation are now too heavy to be shaken off by the equivalent of mouth-to-mouth resuscitation. - Walden Bello (Feb 29, '08)

Medvedev ready for his Russian moment
Judging by his record, the presumptive next president of Russia, Dmitry Medvedev, can be expected to pursue a concerted liberalization of politics as the next logical stage in the country's evolution. He aims to make business in Russia the most profitable in the world. And in foreign policy, the likely leitmotif is that security will be enhanced when countries share risk - that is, the West and Russia should cooperate. - Nicolai N Petro (Feb 29, '08)

SEX IN DEPTH
Cell swingers in Cambodia
From university sweethearts married in Paris to kingpins in the brutal Khmer Rouge regime in Cambodia, 82-year-old Ieng Sary and his wife Khieu Thirith, 75, now bide their time in detention awaiting trial for crimes against humanity. They're in separate cells, and Sary has requested conjugal visits. While the two await an answer, they could reflect on one of the Khmer Rouge's practices - separation of man and wife. - William Sparrow (Feb 29, '08)

THE ROVING EYE
A long road from Kosovo to Kurdistan
The embrace by Washington of Kosovo's declaration of independence has less to do with democracy than with hard-nosed pragmatism. The US's biggest foreign military base since the Vietnam War - Camp Bondsteel - is in Kosovo, and the region will be home to a US$1.1 billion pipeline that will get oil from the Caspian Sea ultimately to refineries in the US. Kurds in Iraq, believing Kosovo to be a precedent for an independent Kurdistan, will be disappointed: the US-sanctioned Turkish invasion of northern Iraq has seen to that. - Pepe Escobar (Feb 28, '08)

Ambac bailout may cause crisis
There are solutions to the US financial crisis - the proposed injection of US$3 billion into bond insurer Ambac is not one of them. Prices have to come down, banks have to be recapitalized, risk premiums have to go up. But with little interest in tough medicine, we face higher inflation and a substantially weaker dollar. - Axel Merk (Feb 28, '08)

IN THE DRAGON'S LAIR

US prowls for China in the Philippines
With China fast becoming the US's greatest competitor, Washington needs the Philippines more than ever. Not only is it ideally located, its government has been far more willing than other Southeast Asian countries to align itself with the demands of the US. Thus Washington is steadily transforming and deepening its military presence and intervention in the Philippines in preparation for any face-off with China. In return, Beijing is aggressively courting Manila. - Herbert Docena (Feb 27, '08)
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Taxmen hover over Ping An’s $22bn plan

Ping An Insurance shareholders vote this week on a controversial plan by the firm to raise more than US$22 billion by selling shares and bonds. Their decision might be swayed by the Chinese tax authority's move to run a rule over the insurer's acounts. - Sally Wang

Total recall in China
Headline-grabbing incidents of toxic Chinese-made products - from toys with lead paint to contaminated fish and adulterated drug products - mask the progress the country has made in cleaning up its act. More can be done and will be, if civil aviation safety and action over doping in sports are any guide. - Dali L Yang

HK-Macau bridge planners
go for costly option

A proposed 36-km bridge to straddle the Pearl River Delta between Hong Kong and Macau is to be developed under the build-operate-transfer system of funding, with a 50-year operating period. It is a remarkable choice given the wealth of the local governments involved. - Henry C K Liu

THE BEAR'S LAIR
Regulating the un-regulatable
The US securities markets collapse and Northern Rock's demise in the United Kingdom highlight the failure of present finance regulation. Bankers, by nature greedy, will use any loopholes to enrich themselves. Regulations should therefore be draconian and without loopholes, and 30 years' "innovation" should be abandoned. - Martin Huchinson

 THE MOGAMBO GURU

A world without demand
The amount of money that has been lost in the derivatives business is worrisome, as sales tumble 93% from the year before. Without demand, supply is overwhelming, prices plummet, and without new derivative sales to finance the existing clot of derivatives, things go from bad to worse!

CREDIT BUBBLE BULLETIN
No simple repeat
of LTCM fiasco

The crisis at award-winning Peloton Partners highlights that this is no repeat of the LTCM meltdown of 1998. The American economic rot goes far, far deeper. Meanwhile, the Fed, blind to its impotence regarding risk asset prices, should start attending to currency markets, where it might at least have some impact. (Mar 3, '08)
Doug Noland reviews the previous week's events each Monday.

MARKET RAP
Beware the wings
of the butterfly

The fear that an American downturn will significantly hurt Asian corporate earnings seems to have been at least temporarily overcome. Yet the future of structured investment vehicles remains a threatening shadow that can engender yet another crisis with incalculable effects far from the US. (Feb 29, '08)
R M Cutler runs his eye over the ups and downs in the week's markets.



It is time to praise Mogambo for his prescience. Some time ago he said losses from the derivatives scandal would be a trillion dollars. Finally, the establishment pundits have mentioned a trillion-dollar loss! Way to go Guru.
Tom Gerber
   Go to Letters to the Editor



  <IT WORLD>

Pakistan site swipe
exposes web fragility

Pakistan's efforts to prevent its citizens from viewing a YouTube video affected the Internet far beyond its borders. No less worrying, the country's censors indicate they have no inclination to prevent a repeat of the global blackout.
Martin J Young surveys the week's developments in computing, gaming and gizmos.



1. Obama's women reveal his secret

2. Sing, o muse, the wrath of Michelle

3. The 'laptop of mass destruction'

4. Iran makes its mark in Iraq

5. Dead dollar sketch

6. Ambac bailout may cause crisis

7. No simple repeat of LTCM fiasco

8. Let's talk about bombs

9. Food for thought in price claim

10. Why Arroyo won't go

(24 hours to 11:59 pm ET, Mar 3, 2008)




ATol Specials


The Gates
Inheritance
By
Roger Morris
 
(June '07)



Syed Saleem Shahzad reports on the Afghan war from the Taliban side
(Dec '06)

How Hezbollah defeated Israel
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Mark Perry and
Alastair Crooke
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China: The
Impossible
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By
Francesco Sisci 

The Coming
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Sinoroving

Pepe Escobar in China

Money, Power
and
Modern Art


A series by Henry C K Liu

Andre Gunder Frank on Uncle Sam and his shrinking dollar


By Pepe Escobar with photographs by Kevin Nortz

   Nir Rosen goes inside the Iraqi resistance

Nir Rosen rides with the US 3rd Armored Cavalry in western Iraq

On an Australian island: Real estate for sale -- Accommodation.

Air Purifier

 
 


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