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US's dalliance in Beijing is short-lived

In a joint statement, United States President Barack Obama and Chinese President Hu Jintao this week pledged to "strengthen communication, dialogue and cooperation on issues related to South Asia". It took Washington a matter of hours to start backtracking; any enterprise to mount ill-fated Sino-American ventures in this region could seriously disrupt American business interests. - M K Bhadrakumar (Nov 20, '09)

The elephant in India and Iran's room
Try as India and Iran may to halt the downward slide in their relations, cooperation in the all-important energy sector remains stuck in a rut. Negotiations between the two countries during the recent visit of Iran's foreign minister made "good progress", though apprehension over drawing American ire ultimately stands in India's way. - Sudha Ramachandran (Nov 20, '09)


Iraqi elections thrown off track
Vice President Tarek al-Hashemi, by using his veto to block an important election law, has thrown Iraq once again into political crisis. Parliament will have to try to sort out the mess the Sunni politician has made if elections are to go ahead in January. The scheduled draw-down of United States troops is also now in doubt. - Sami Moubayed (Nov 20, '09)

Cheers all round for Obama in Korea
After troublesome stopovers in Japan and China, United States President Barack Obama ended his swing through Asia on a high in South Korea, with US troops jubilant after a rousing speech. The feel-good factor was boosted by a glowing consensus with Seoul's leader over ending Pyongyang's nuclear program. - Donald Kirk (Nov 20, '09)

A town with a tale to tell
The more elderly inhabitants of Tawang, the town plumb in the heart of disputed territory between India and China, have lived under four national flags - British, Tibetan, Chinese and Indian. These indigenous people, the Monpas, have strong views on which country they believe would now best serve their interests. - Saransh Sehgal (Nov 20, '09)

'The devil's pipe ruins the soul of prayer'
Politicians in the days of Saddam Hussein tried to harness the music of Nasiriya. Nowadays, militiamen harass the musicians who live in the southern Iraqi city famed for its singers. Where once they strutted their stuff on the stage, singers are now reduced to humming to themselves while waiting tables. - Wisam Tahir (Nov 20, '09)

BOOK REVIEW
Constructing the
Oriental image

The Sum of All Heresies
by Frederick Quinn
This book provides a broad exploration of the evolution of the Middle East image through European eyes from near antiquity to the present. Viewed as the embodiment of barbarity during Roman times, "Orientals" came to be seen as permanently inferior to Europeans, needing to be controlled and exploited. - Dmitry Shlapentokh (Nov 20, '09)



Nuclear fallout rocks Pakistan
Reports of the United States attempting to take an active role in helping safeguard Pakistan's nuclear arsenal could not have come at a worse time for President Asif Ali Zardari. He is already marginalized by his military, now his political opponents - including revitalized former president Pervez Musharraf - see a weakness. A crucial showdown is due next month, precisely the time the Pakistani Taliban plan their own fireworks. - Syed Saleem Shahzad (Nov 19, '09)

Subtle changes in US's China policy
A closer look at United States President Barack Obama's four-day visit to China reveals subtle but meaningful changes in US policy towards the Middle Kingdom. The Obama administration is likely to continue the cooperative and pragmatic policies of its predecessor, while a heightened emphasis on China shows deeper recognition of Beijing's growing regional and international clout. - Jian Junbo (Nov 19, '09)

Taliban tap into Afghanistan's roots
The insurgency in Afghanistan will continue to gather momentum as long as Afghans believe the insurgents have more compelling answers than Western powers or the government of President Hamid Karzai. The Taliban's fusion of religion, state and army presents a compelling case that foreigners will be expelled, Pashtun pre-eminence will be maintained, and that there will be a return to a golden age under Islamic law. - Brian M Downing (Nov 19, '09)

Leak fuels fears over India's ID project
Fears that India's plans for an identity database for its more than one billion citizens could lead to government snooping, corruption and identity theft have not been helped by the leaking of the project's working paper; nor by statements in the document admitting that the system will be "susceptible to attacks and leaks at various levels". - Raja Murthy (Nov 19, '09)

New York readies for the 'Gitmo Five'
News that the "Gitmo Five" will be tried in New York has raised fears of an increased possibility of terrorist attacks in the city. The Lower Manhattan court, however, apart from having the legal pedigree to handle the cases, is also one of the safest civilian courthouses in the United States. (Nov 19, '09)

Honeymoon over for Yudhoyono
Indonesian President Susilo Bambang Yudhoyono, a month after being inaugurated to his second and final term in office, is hounded by a corruption scandal that puts his often plodding style in unfavorable focus. Yudhoyono's skill at taking the middle road may be what Indonesia needs to ensure the growth of its democracy, but he is unlikely to leave a meaningful policy legacy for his successor. - Gary LaMoshi (Nov 19, '09)

Loss-hit JAL too big to fail
Japan Airlines, or JAL, is on the verge of bankruptcy after huge first-half losses, but the government is only too aware that JAL flights account for 60% of the country's total and play a vital role in serving the economy. United States carriers, meanwhile, are circling the near-corpse with interest, as are local unions and pensioners. - Todd Crowell (Nov 19, '09)

OBAMA ON THE ASIAN HIGHWAY
Hu and Obama seal real deals
The joint statement by Chinese President Hu Jintao and United Sates President Barack Obama appears to embrace a long-term, strategic relationship between the nations. The pledges of cooperation on Iran, South Asia and the Asia-Pacific may appear principled rhetoric, but in private they represent concrete deals being made. - Francesco Sisci (Nov 18, '09)

A new courtship for Southeast Asia
Barack Obama at the weekend became the first US president to share a room with all 10 leaders of the Association of Southeast Asian Nations. The US's new Asian focus is based partly on a belief that the region has been neglected, giving China a pre-eminent position, and that it's time to get down to business. - Brian McCartan (Nov 18, '09)

Obama dodges Chinese missiles
During his visit to China, President Obama avoided the subject of China's military buildup and its deployment of new missiles, as well as "Juniper Cobra", a vast and sophisticated US-Israel missile defense exercise. His failure to broach the issue may spark domestic criticism and concerns among US allies in Asia. - Peter J Brown (Nov 18, '09)

Secrecy shrouds Iran's contingency centers
Evidence produced by the International Atomic Energy Agency suggests that Iran's Qom uranium enrichment plant was constructed on one of many sites earmarked as early as 2002 as a "contingency center" in the event of a United States air attack. The big issue now is at what point the center evolved from a series of tunnels into a nuclear facility, and whether there are others. - Gareth Porter (Nov 18, '09)

US takes aim over Jordan's shoulder
The Jordan International Police Training Center, a quiet and unassuming base on the surface, has become a key part in the regional designs of the United States and its allies in the Middle East. Since 2003, the facility has trained more than 50,000 police officers bound for Iraq and beyond. - Jon Elmer (Nov 18, '09)

Afghanistan runs on well-oiled wheels
Every day, trucks carry diesel from Turkmenistan to the Afghan capital, Kabul, where some of the fuel is used in electricity power stations. Influential people are making a lot of money from the venture, which is financed by American tax dollars and is part of a fine-tuned system of nepotism and corruption that works a treat. It is not about to change. - Pratap Chatterjee (Nov 18, '09)

Dollar doing the right thing
The US dollar's decline has conservative media bewailing the currency's and the country's fate. Yet its 18% recent fall is against the euro, with little change against currencies of leading trade partners China and Japan. And given that the US is in economic distress, and has $30 billion a month trade deficits and zero interest rates, the dollar very much should be falling. - Julian Delasantellis (Nov 18, '09)

CHINA'S REVOLUTION, Part 5
Surplus and capital formation
China's post-revolution challenge was to transform a feudal economy whose surpluses were mostly unproductive into a system that would increase capital formation and hence national income. Land reform, a significant contributor in the pursuit of this goal, remains a key issue in the country's progress and potential. - Henry CK Liu (Nov 18, '09)
This is the fifth article in a multi-part series.
Part 1: In the beginning was Tiananmen
Part 2: Revolutionary lessons
Part 3: Lessons of the Soviet experience
Part 4: Mao's legacy lives on

Militants change tack in Pakistan
After a month-long operation, Pakistan's military is chasing shadows in the South Waziristan tribal area. The militants being sought so desperately by the army - and the United States - are scattered in remote surrounding areas, including in Afghanistan. Previously, the next step would have been to negotiate a ceasefire. Not this time. In a major switch, the militants want a long-term insurgency against the security apparatus across the country. - Syed Saleem Shahzad (Nov 17, '09)

THE BEAR'S LAIR
Waiting for the train wreck
Central banks have lost the opportunity to change policy, indicated by gold's breakout above US$1,100. The huge weight of global stimulus money ensures that the gold and commodities bubble will now run to its full extent, with the world heading towards another train wreck. - Martin Hutchinson (Nov 17, '09)

'Northern Taliban' threatens Central Asia
Taliban counter-moves against United States coalition efforts to forge a supply route from Central Asia to northern Afghanistan have ended the relative calm in that part of Afghanistan and could drag Central Asian states into the conflict. As more foreign fighters from groups like the Islamic Movement of Uzbekistan join the ranks of the emerging "northern Taliban", the issue is rapidly climbing up the coalition's agenda. - Sanobar Shermatova (Nov 17, '09)

Mafias expose China's legal woes
It took a directive from the top echelons of the Chinese Communist Party before officials in China's western Chongqing metropolis would unleash an "anti-triad tornado" on well-connected mafia syndicates, nabbing close to 3,000 big-time criminals. The fiasco has laid bare the full extent of collusion between organized crime and senior officers in the police and judiciary. - Willy Lam (Nov 17, '09)

SPEAKING FREELY
The benefits of a nuclear Iran
The United States should simply give Iran the bomb. A nuclear Iran would restore parity to the balance of power in the Middle East and may end up stabilizing the region far more than the continued tensions over Israeli and American objections to Iran's nuclear ambitions. - Aetius Romulous (Nov 17, '09)

US boosts India's anti-terror efforts
India's decision to increase information-sharing with United States intelligence agencies since last year's Mumbai terrorist attack is paying off, witness the Federal Bureau of Investigation's operation uncovering a plot to attack important sites in India, including the Taj Mahal. - Siddharth Srivastava (Nov 17, '09)

Political impasse takes Nepal to brink
Leaders of Nepal's Maoists are threatening more mass protests and to turn the nation "into another Afghanistan" should their demands for limits to presidential powers not be met. As the political turmoil drags on - not helped by an apparent China-India tussle for influence - some see hope in the formation of a unity government. - Dhruba Adhikary (Nov 17, '09)

THE ROVING EYE
Welcome, comrade Maobama
United States President Barack Obama visits Beijing as China is organizing a new world order based on economic independence and respecting cultural and political differences - a hierarchical change all nations can believe in. Beijing welcomes being classed as the US's "essential partner" and "competitor"; being competitive is second nature when you have been a major economic power for 18 of the past 20 centuries. - Pepe Escobar (Nov 16, '09)

SPENGLER
Europe's tragedy, and
Europe's tragedian

The 250th anniversary of the birth of German poet, philosopher, historian and playwright Friedrich Schiller passed last week with less attention than it deserved. Schiller understood European history not as the shift of power from obscurantist Catholicism to enlightened Protestantism, but rather as the death-tragedy of Catholicism and of Europe itself. (Nov 16, '09)

A Bonapartist in the Indian Ocean
Sri Lankan democracy may never be the same again now that swashbuckling army chief Sarath Fonseka has abruptly discarded his uniform to run for president. Fonseka is entering uncharted waters. But the United States Green Card holder knows that he has the full backing of a Washington seeking a malleable power structure in Colombo. - M K Bhadrakumar (Nov 16, '09)

Test of wills over Iran plan
The fuel-for-fuel plan under which Iran would send the bulk of its low-enriched uranium to Russia and France to be further processed for use in a medical reactor in Tehran is still on the table. It is likely to remain there unless its main backers, including the United States, introduce some compromises. - Kaveh L Afrasiabi (Nov 16, '09)
David P Goldman
(Nov 18, '09)
The crystal-meth monetary policy at the Fed makes everyone feel better, until they don't ...



Capital rules weigh
on Japan stocks

Concern that Japan's megabanks, such as Mizuho Financial and Sumitomo Mitsui Financial, may have to sell shares to meet new international capital-adequacy standards are helping to prevent Japanese stocks from demonstrating the stellar recovery seen in other markets. - Kosuke Takahashi

MARKET RAP
Time for a breather
Shanghai stocks resumed their starring role this week before settling back at the close, along with others around the region, amid a cloud of commentary that pointed to earnings results and commodity prices. Another view is that it was just time for a breather.
R M Cutler runs his eye over the ups and downs in the week's markets.

 <IT WORLD>

Bang, bang, buck, buck
Writers of the latest "Call of Duty" game were too successful in creating something "upsetting, disturbing", earning a ban from the Russian government over scenes of a Moscow airport terrorist attack. That couldn't prevent worldwide sales worth US$550 million within five days of the game being available.
Martin J Young surveys the week's developments in computing, science, gaming and gizmos.

FROM THE BLOG
Loans decline tells the story
A 20% year-on-year decline in commercial and industrial loans does not look like a recovery. In fact, it looks like nothing we have seen since the Great Depression. - David Goldman




CREDIT BUBBLE BULLETIN
Just the facts
New data underlie the scale of China's promise and challenges as US President Barack Obama meets Chinese leaders in Beijing: a doubled trade surplus, a stock market up 74% this year, apartment prices at record levels and passenger car sales up 76% in October. Concern over asset bubbles may weigh more heavily than US hectoring to win the argument for the yuan to strengthen. (Nov 16, '09)
Doug Noland looks at the previous week's events each Monday.





... "[The term 'terrorism'] is reserved for attacks on civilians or military personnel during peace time. ... The Fort Hood incident was not terrorism! It was WAR! Americans are such whiners. You go to war, you lose some people. You don't like it, don't invade other countries." ... - Smilodon

From Our Mailbox
[Re New York readies for the 'Gitmo Five', November 19] Holding the trial of the "Gitmo Five" in New York has little to do with the safety or integrity of the Southern District court; it has very much to do with gaining political points.
Nakamura Junzo
Guam
   Go to Letters to the Editor



1. Hu and Obama seal real deals

2. Obama dodges Chinese missiles

3. Secrecy shrouds Iran's contingency centers

4. Afghanistan runs on well-oiled wheels

5. A new courtship for Southeast Asia

6. Dollar doing the right thing

7. Militants change tack in Pakistan

8. Waiting for the train wreck

9. The benefits of a nuclear Iran

10. US takes aim over Jordan's shoulder

(24 hours to 11:59pm ET, Nov 18, 2009)

Pick of the month Oct 2009
SPENGLER

Obama's permanent depression




ATol Specials


  By Syed Saleem Shahzad
(Jan '09)

  VIDEO
Taliban's new breed of leader
(May '08)

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
By
Mark Perry and
Alastair Crooke
(Oct '06)

Mark Perry and
Alastair Crooke
talk to the 'terrorists'
(Mar '06)

China: The
Impossible
Revolution

By
Francesco Sisci 

The Coming
Trade War


By Henry C K Liu

A series
by Henry C K Liu
 

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



 
 


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