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Bernanke takes one more
gamble

United States Federal Reserve
chairman Ben Bernanke's decision to cut key interest
rates one more time was always in the cards. More
astonishing was the scant concern he showed towards the
inflationary risks inherent in his actions over the past
few months, risks that food riots make clear are already
a harsh reality in the world beyond the US. - Julian
Delasantellis (May 1,
'08)
 Fed cuts rate to 2.0 percent, keeps
options open (AFP)
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Economy takes US center
stage A major
new survey finds that oil prices and other
economic issues are edging out foreign policy
concerns on the US public's worry list. Seventy
percent of respondents say they worry "a lot"
about soaring energy costs, and the survey's aptly
named "Anxiety Indicator" shows that 84% worry
about the way things are going for the US. -
Jim Lobe (May 1,
'08) Fed
may want inflationUS
Federal Reserve chairman Ben Bernanke continues to
cut interest rates, even as concerns grow at home
and abroad at rising prices across swathes of the
global economy. Despite public pronouncements to
the contrary, it is possible the Fed chief sees
more pros than cons for the US in the inflation he
risks stoking. - Axel Merk (May 1, '08)
The
heat is on Muqtada The fierce
battle raging in Baghdad's Sadr City between
Muqtada al-Sadr's Mahdi Army and United States and
Iraqi forces has claimed more than 1,000 lives
over the past few weeks. What is not clear is the
motive behind the offensive against the Shi'ite
militia. It could be the Americans, trying to nip
in the bud any united front between Muqtada and
Sunnis. Or the Iranians, wanting to eliminate a
potential thorn in their side. Either way, Muqtada
has a fight on his hands. - Sami Moubayed
(May 1,
'08)

Sadr City fight fuels Iraq
bloodshed in April (AFP)
Al-Qaeda
searches for unity in Iraq A
series of messages from al-Qaeda deputy Ayman
al-Zawahiri and its chief in Iraq, Abu Hamza
al-Mujahir, indicates al-Qaeda is pulling out all
the stops to try to prevent the Sunni Iraqi
mujahideen from militarily winning the war but
then losing the political spoils because of
disunity. - Michael Scheuer (May 1, '08) China's
pride versus Western prejudice The
Chinese
government did not expect the Olympic Games
to be politicized to the extent they have been and
the result is a big loss for Beijing. It has
also damaged the image of China's "harmonious
society" and prompted a new wave of Chinese
nationalism. Many Chinese now feel, for the first time
in many years, antagonized by Western ideology. -
Da Wei (May 1,
'08)
Protests at Carrefour stores in
China (AFP) India
raises a toast to Iran In a clear
reference to the United States, Delhi has asserted
that India and Iran "are perfectly capable of
managing all aspects of their relationship", and
is solidifying a number of agreements previously
stalled with Tehran, mostly related to energy. The
economic imperatives are obvious, but there are
also compelling political reasons. - Siddharth
Srivastava (May 1,
'08) Local
democracy pains in Indonesia Two
disputed results from last year's local elections
in Indonesia highlight a lack of neutrality in the
institutions tasked with protecting the integrity
of elections. In the run-up to general elections
next year, this is a growing concern. -
Jacqueline Hicks (May 1, '08)
Women
at the temple door While women
are barred from Hindu temples in other parts of
India, women in the city of Pune are studying
the priesthood at two schools and conducting
ceremonies. It started when the casual attitude
of male priests became too much for the faithful
to bear, and female priests are now preferred. -
Gagandeep Kaur (May 1,
'08) | Push
comes to shove in Afghanistan In his latest assessment, US
President George W Bush admits it's going to be a
"long struggle" in Afghanistan (this after seven
years of fighting the Taliban). US Marines, fresh
in the country, are venturing into uncharted
territory, while more coalition troops are being
deployed. For the Taliban, having made space for
themselves in their strategic backyard in Pakistan
through dubious peace deals, a new battle has now
begun. - Syed Saleem Shahzad (Apr 30,
'08)
US's
Pakistan policy under fire
Appeals are growing in the United States for the George W Bush administration
to reassess its "war on terror" and Pakistan's place in it. In particular, US
policymakers are being asked to place more confidence in Islamabad's plans to
make deals with tribal leaders, even though these play into the hands of the
Taliban. - Jim Lobe (Apr 30, '08)
Iran-US talks await
new leadership era
It
is unlikely that either the George W Bush administration or hardliners in Tehran
will initiate serious bilateral talks prior to the US presidential elections in
November. The prospect of dialogue with Iran seems plausible after the vote,
but only if the next US president is willing to risk strengthening President
Mahmud Ahmadinejad's hand before Iran's 2009 presidential polls.
(Apr 30, '08)
THE
MOGAMBO GURUAt
the center of a flood of debtLook
out any US window and the view is nothing but a
sea of unpaid bills, with all that subprime
mortgage panic a drop in the ocean of woes facing
a low-IQ nation that thinks it can painlessly
borrow and inflate its way out of any debt. It
can't. And if you want to survive the threat of
drowning like your neighbors, sell everything and
buy that golden lifeboat. (Apr 30, '08)
Iran
holds key to India's energy
insecurity In terms of its energy
needs, India has woken to the simple fact that
nearly all roads lead to Tehran, both as a source
of energy as well as an outlet for other
countries' energy exports to India. This could be
the first step in a whole gamut of economic,
trade, cultural, political and even security
cooperation. - Kaveh L Afrasiabi (Apr 29,
'08)
THE BEAR'S LAIR
Oil in 2012: $200 or $50?
The US broad money supply by one measure has increased at an annual rate above
30% for most of this year. Maintained, that could triple prices within four
years and oil would look moderate at US$200 a barrel, with gold hitting $2,000.
Good sense by the US Fed and politicians might save the day, or a full-scale
revolt by bond dealers. - Martin Hutchinson (Apr
29, '08)
China intensifies war against splittism
The Hu Jintao administration has intensified its efforts to suppress and
contain "splittists" in Tibet and Xinjiang allegedly in cahoots with
"anti-China elements overseas" - and it is using nationalistic sentiments to
help achieve its goal. Significantly, Communist Party and state authorities
have called for a people's-war-style crusade to round up "conspirators" and
"traitors". - Willy Lam (Apr 29, '08)
SUN
WUKONG
Moving
markets and mountains
The new overseer of China's financial affairs was barely in
office before polishing his "Mr Fix It" reputation by turning around the
plummeting stock markets. Curbs on refinancing by listed companies are expected
to be Wang Qishan's next mountain-moving stroke. All very impressive - but his
is still a visible hand that would be better not seen. - Wu Zhong
(Apr 29, '08)
CAMPAIGN
OUTSIDER
Doubting Obama
Senator Hillary Clinton's campaign keeps raising questions about rival
Senator Barack Obama. Rather than complain about Clinton's tactics or the tone
for the contest, it's time for the frontrunner for the Democratic presidential
nomination to rediscover his mojo. - Muhammad Cohen (Apr
28, '08)
Brains, not brawn, in Afghanistan
The audacious attack in Kabul on Sunday on Afghan President Hamid Karzai and
other dignitaries is another salvo in the Taliban's new phase of targeted
missions, rather than direct confrontation with the North Atlantic Treaty
Organization's war machine. In return, NATO, as evidenced by two important
recent successes against the insurgency, is becoming smarter, rather than
relying on "smart" bombs. - Syed Saleem Shahzad (Apr
28, '08)
Syria bristles at US
charges
Washington's accusations that Syria and North Korea cooperated on a nuclear
site that was allegedly destroyed by an Israeli air strike last September, are
being laughed off in Damascus as another "convenient inaccuracy". The charge
would be downright funny if it didn't come with the dangerous potential of
mushrooming into war, as happened when Iraq was accused of developing weapons
of mass destruction. - Sami Moubayed (Apr 28,
'08)
India, China hold
G8 options
European leaders such as British Premier Gordon Brown and President Nikolas
Sarkozy of France are pushing for India and China to sign up for full
membership of the rich nations' club known as the Group of Eight. But their
counterparts in New Delhi and Beijing have good reason to hold back. - Sreeram
Chaulia (Apr 28, '08)
DISPATCHES FROM AMERICA
Selling the president's general
Just as President George W Bush's favorite general, David Petraeus, was given
another promotion by being nominated as head of US Central Command, revelations
broke of the Pentagon's extensive propaganda operation to embed retired
military officers in the mainstream US media. The two events - and the "surge"
in Iraq - are inextricably linked. - Tom Engelhardt (Apr
28, '08)
Taliban bitten by a snake in the
grass
Over the past few months, attacks in Khyber Agency in Pakistan by the Taliban
and their al-Qaeda associates on supplies destined for the Western coalition in
Afghanistan have proved highly successful. Despite operating in unfamiliar and
unfriendly territory, the Taliban managed to obtain a foothold through a tribal
leader, seemingly outwitting US intelligence. Then things went horribly wrong,
and the Khyber operation is in tatters. - Syed Saleem Shahzad
(Apr 25, '08)
CHAN
AKYA
Western excess is
the Earth killer
The problem with people trying to save the world, as intended by this
week's Earth Day, is that everyone has different living standards and
objectives. What will benefit the environment is a reduction in excessive
consumption by Europe and the US, not a reversal of Asian progress.
(Apr 25, '08)
THE
ROVING EYE
Hillary, the war chick
It was
a silly question to begin with, but Democratic hopeful Hillary Clinton jumped
in boots and all, saying if she were US president and Iran attacked Israel with
nuclear weapons, she would "obliterate" Iran. Clinton's positioning spells
Imperial Washington in all its glory - and hubris. - Pepe Escobar
(Apr 25, '08)
SPENGLERRice, death and the
dollar
For developing countries whose currencies track the US dollar and whose
purchasing power declines along with the American unit, catastrophe looms. So
China, for example, is exchanging its depreciating reserves of the greenback
for things of value, notably rice, with frightening consequences for dependent
countries and deadly consequences for American foreign policy.
(Apr 21, '08)
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