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US digs deeper into Mindanao's mire

United States Secretary of State Hillary Clinton will walk into the middle of a storm when she visits the Philippines this week to press Manila and a separatist Muslim rebel group to resume peace talks. The government of President Gloria Macapagal-Arroyo and the rebels are at serious odds over the kidnapping of an Irish missionary. Clinton's way forward may be to press on with controversial secret meetings with the separatists. - Al Labita (Nov 10, '09)

Hezbollah back in the Lebanon fray
After five months of bickering, Hezbollah got its way in Lebanon on Monday with the formation of a cabinet to its liking. The end of the impasse has a lot to do with Syria and Saudi Arabia, which want peace in Lebanon while they concentrate on hotter areas, such as Iraq, Iran and Afghanistan. - Sami Moubayed (Nov 10, '09)

Dalai Lama calm in the eye of a storm
While the visit by the Dalai Lama to the disputed area of Arunachal Pradesh in India has not helped already frosty relations between India and China - some even talk of war - the exiled Tibetan spiritual leader is possibly closer to the reality when he points out "my visit here is non-political". - Saransh Sehgal (Nov 10, '09)

DESTINATION TERROR
Maldives faces up to extremism
A puritanical version of Islam is taking root in the Maldives, driving the tropical paradise towards a path to religious extremism. Not only are cultural practices changing, but an increasing number of Maldivian youth are being drawn into global jihadi groups, with many now fighting in Pakistan and Afghanistan. - Sudha Ramachandran (Nov 10, '09)

Iran and Saudi Arabia drawn to Yemen
When rebels backed by Iran last week crossed from Yemen into Saudi Arabia and captured some territory, Riyadh reacted swiftly, and with extreme force that included hot pursuit into Yemen. The danger now is that Saudi Arabia and Iran will be pulled further into Yemen, which already has a fight with al-Qaeda on its hands. - Olivier Guitta (Nov 10, '09)

India probes Maoists' foreign links
Indian security forces poised to launch a major offensive against Maoist rebels say there is growing evidence of foreign support for the insurgency. It is emerging that remnants of Sri Lanka's Liberation Tigers of Tamil Eelam are training the Maoists, funds are arriving from Nepal and weapons from Myanmar, Bangladesh and possibly China. - Siddharth Srivastava (Nov 10, '09)

Pentagon starts an Afghan building boom
Salsa and karaoke nights for United States troops have been cut in Kandahar province, but elsewhere in Afghanistan the Pentagon is digging in with massive construction contracts to private companies that will make life all the more comfortable, and safer, for ever more troops. - Nick Turse (Nov 10, '09)



Failure written into 'too big' policy
Even as Washington tries to ensure limited damage from any future collapse of "too big to fail" financial institutions, its own policies are helping the top US banks tighten their market dominance. Nor is Washington addressing the inherent risk from small entities failing in large numbers. - Henry C K Liu (Nov 9, '09)

'Cronies and warlords' wait in the wings
British Prime Minister Gordon Brown has pulled no punches in saying that "cronies and warlords" should have no place in the future of a democratic Afghanistan. But the point is, cabinet and provincial governor appointments are a part of a complex political contract in Kabul and it is extremely doubtful that Karzai is in a position to oblige Britain, or any other country, even if he wanted to. - M K Bhadrakumar (Nov 9, '09)

It's payback time in Kabul
In return for their pledges to guarantee huge majorities for Hamid Karzai in the August 20 election, the Afghan president had to make promises to a number of power brokers and warlords in the provinces of key ministries in the next government. Now Karzai has to deliver. - Gareth Porter (Nov 9, '09)

Dalai Lama at apex of Sino-Indian tensions
Along with the tension created by the Dalai Lama's visit to the disputed Indian state of Arunachal Pradesh, shifts within the Tibetan movement, India's evolving geopolitical stature and the United States' growing economic ties with China are converging to create dangerous instability in Sino-Indian relations. - Peter Lee (Nov 9, '09)

'Undeployables' sent to the Afghan front
As the United States debates whether to send tens of thousands of extra troops to Afghanistan, an already overstretched military is struggling to meet its deployment numbers. One place it is targeting is military personnel who go absent without leave, and who then are caught or turn themselves in. Many of these soldiers are already "damaged or even broken". - Dahr Jamail and Sarah Lazare (Nov 9, '09)

When war comes home
The massive Fort Hood military base in Texas, where a major last week gunned down 13 people, is one of the most heavily deployed facilities for the wars in Iraq and Afghanistan. Fort Hood soldiers have also accounted for more suicides than any other army post since the invasion of Iraq in 2003; this year alone, the base is averaging over 10 suicides a month. - Dahr Jamail (Nov 9, '09)

Cambodia rattles Thailand's chain
Cambodian Prime Minister Hun Sen's appointment of former Thai premier Thaksin Shinawatra as an economic advisor has riled Bangkok. Hun Sen must have known that his cozying up to Thaksin, who lives in exile and has been convicted on corruption charges, would have this effect. But the long-serving Cambodian leader more likely has other reasons in mind. - Craig Guthrie (Nov 9, '09)

UNDER THE AFPAK VOLCANO, Part 2
Breaking up is (not) hard to do
The Pentagon well knows that AfPak is the key land bridge between Iran to the west and China and India to the east; and that Iran has all the energy that both China and India need. The balkanization of AfPak would neutralize China's drive for land access from Xinjiang across Pakistan to the Arabian Sea, via the port of Gwadar in Balochistan province. - Pepe Escobar (Nov 6, '09)
This is the concluding article in a two-part report.

PART 1: Welcome to Pashtunistan

Israel up in arms over weapons seizure
Israel has spared no effort in bringing the world's attention to its seizure of a ship carrying tonnes of apparently Iranian-supplied weapons bound for Hezbollah in Lebanon, via Egypt and Syria. If history is any guide, the incident could be used as a pretext for waging another war on Hezbollah, or even a strike against Iran. - Sami Moubayed (Nov 6, '09)

CHAN AKYA
Leverage not level
The picture is familiar - higher oil prices, a lower US dollar, and rising US stocks. Missing from the picture is the leverage taken in China and related to monetary expansion there - and what happens once that expansion is removed. (Nov 6, '09)

BOOK REVIEW
China according to the Chinese
The Origin, Process, and Outcome of China's Reforms in the Past One Hundred Years
by Enbao Wang
Much of the English-language discourse on China's unpredicted rise is divided between those who are fascinated and those who are frightened. The author makes a useful attempt to bridge a growing gap between what has happened in China in the past 30 years on the one hand, and persistent Western cultural-political solipsism on the other. - Yu Bin (Nov 6, '09)

<IT WORLD>
Apple not so sweet in China
Not quite the end of the world for Apple, but the introduction of the iPhone to China turned sour for the United States-based company and its mainland partner, China Unicom, with initial sales falling well short of forecasts. Doomsday, however, may be closer for the rest of the world, with the restart of Europe's Large Hadron Collider.
Martin J Young surveys the week's developments in computing, science, gaming and gizmos. (Nov 6, '09)

Passing the buck on North Korea
Bilateral talks scheduled between Stephen Bosworth, the United States point man on North Korea, and the leadership in Pyongyang - purportedly over coaxing the North back into six-party talks on its nuclear weapons program - may just be a smokescreen to force China back into action. Even if Bosworth's mission is fruitless, Beijing could no longer accuse the US of not showing its hand. - Donald Kirk (Nov 6, '09)

Tennis diplomacy on the table in Bali
If the Mohammedans won't come to the mountain, then the mountain - or at least a stone from it - can come to the Mohammedans - or their closest neighboring compatriots. The visit of a female Israeli tennis player to Bali, a resort island of Muslim-majority Indonesia, has echoes of the sports diplomacy trail famously blazed by American and Chinese ping-pong players. - Muhammad Cohen (Nov 6, '09)

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)

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)

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)

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)

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)

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 8, '09)
Credit lines for small businesses ... will continue to shrink. [This does not look like] any recovery at all



Oil floats high
on easy money

Conspiracy theorists need only look at the number of tankers berthed over the horizon from Singapore to find support for the notion that speculators are helping to drive up the cost of oil. Media pundits favor the "China demand fits all" approach. Reality seekers in the United States should delve a bit deeper, and look a bit closer to home. - Julian Delasantellis

China keeps its purse
open for Africa

China's policy of no-strings-attached aid to Africa, augmented this week with a pledge of more assistance in agriculture and infrastructure on top of a US$10 billion promise on loans, is welcomed by the continents' leaders, even as critics continue to question Beijing's motives. - Antoaneta Bezlova

Afghan cash starts
going to China

Metallurgical Corp of China has started work on developing the vast Afghan copper deposits at Aynak, south of Kabul. That is good news for the hundreds of Chinese workers at the site, protected by Afghan and US forces. Critics say it is not such good news for the country, despite the millions of dollars that will go to the Afghan treasury. - Syed Fazl-e-Haider

THE BEAR'S LAIR
Which big country
will default first?

No leading economy has defaulted on its debt since the 1930s, yet conceivably that could be the fate of the United States, Britain and Japan, an indication of the wrong-headedness of policies taken to address the downturn. The world should hope that the urge for fiscal responsibility hits London, Washington and Tokyo pretty soon. - Martin Hutchinson

FROM THE BLOG
Evidence lacking
Wal-Mart will make it through a recession; not the tea-cozy shop down the mall corridor, much less the real-estate agency in the half-abandoned exurb. The big issue in the US economy is the massacre of small business. - David Goldman




CREDIT BUBBLE BULLETIN
About a half paradigm
The shift in global financial power is increasingly evident, and when an unchanging US Federal Reserve loses its already waning power over global yields, the risks associated with its present course will manifest themselves in a very problematic financial and economic crisis. (Nov 9, '09)
Doug Noland looks at the previous week's events each Monday.

MARKET RAP
Appearances can be deceiving
A volatile week saw exchanges trimming their losses, but absent an upbeat Shanghai and a downbeat Tokyo the period is best described as nondescript, with no clear engine to drive markets stronger in the immediate future.
R M Cutler runs his eye over the ups and downs in the week's markets. (Nov 6, '09)





"[Re Uyghur activist seeks talks with Beijing, Nov 5] 'Urumqi is now 70% Han, resulting in a lot of resentment among the Uyghurs, especially in the capital city.' Just about every propaganda piece published on NYT and elsewhere tries as hard as they can to make similar lies ... all Uyghur in Urumqi are immigrants from south Xinjiang (500 miles away from Urumqi) or their descendants. Urumqi is a city created by Chinese emperors first as a military post." - quark

From Our Mailbox
[Re Dalai Lama at apex of Sino-Indian tensions, November 9] Peter Lee's analysis is once again excellent and insightful, with a not unwelcome dash of humor. It is indeed sad that elements exist within the Indian elite who wish to bring potential war and strife (with much glee) upon their own doorstep for the sake of pleasing their new potential ally in the American neo-conservatives.
Han
Australia
   Go to Letters to the Editor



1. US puts its faith in Pakistan's military

2. Russia, India and China go their ways

3. Welcome to Pashtunistan

4. Is Obama's Iran policy doomed?

5. Iran looks to Argentina for nuclear fuel

6. How Eurocentric is your day?

7. India on brink of Maoist offensive

8. Empty boasts of glory

9. China's sleepy Hengqin wakes up

10. Uyghur activist seeks talks with Beijing

(24 hours to 11:59pm ET, Nov 5, 2009)

Pick of the month Oct 2009
SPENGLER

Obama's permanent depression




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