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Drugs, guns and war in Myanmar

Insurgent groups in the north of Myanmar have begun flooding the region with cheap narcotics to boost revenues as part of a concerted weapons build-up. An illicit trade that for years benefited the military leadership may now help fund a re-ignited civil conflict that has the potential to spill over and rattle relations with close ally Beijing. - Brian McCartan (Nov 3, '09)

The polling booths are finally closed
The Independent Election Commission in Afghanistan has vigorously defended its decision to hand President Hamid Karzai a second five-year term following the withdrawal of his challenger, Abdullah Abdullah. At the same time, the commission makes it clear the matter is not up for debate - it's time to move on, like it or not. - Derek Henry Flood (Nov 3, '09)

DISPATCHES FROM AMERICA
Afghanistan as a bailout state
In Washington's terms, the disaster unfolding daily in Afghanistan is not the definition of failure. In economic lingo, it now falls into the category of "too big to fail", which means upping the ante; America's leaders always opt for more in counter-insurgency disasters rather than cutting their losses. - Tom Engelhardt (Nov 3, '09)

Fighting the 'good' war
Afghanistan is not Washington's "good war", though it is now characterized in that fashion not only by the Republican right wing but by President Barack Obama and many Democrats who were critical of the "Bush" Iraq war. - Jack A Smith (Nov 3, '09)

China's Three Gorges Dam comes of age
Fifteen years since work began and at a cost of between US$8 billion to $27 billion, the water level in the reservoir behind the Three Gorges Dam on the Yangtze River will soon reach its final height of 175 meters. Officials, though, aren't celebrating too loudly: as China searches for new forms of renewable energy, the dam has become a monument to obsolete ambitions. (Nov 3, '09)

Iraqi shock turns to fury over bombings
As anger intensifies over last week’s double bombing in Baghdad, Iraqis are making it clear they blame Prime Minister Nuri al-Maliki's government. But despite widespread acknowledgement that the latest violence will affect voter turnout at January's polls, Maliki still fancies his re-election chances. - Ali Karim (Nov 3, '09)

Refugees turn their backs on Iraq
Since Iraq descended into a living nightmare in 2003, about 1.4 million refugees have streamed over the border into Syria - particularly in the wake of escalating sectarian attacks. It's tough going in the adopted country, especially for Christians such as Leila Johana, but she is not going back to Iraq. - Stephen Starr (Nov 3, '09)



US goofs the Afghan election
Presidential candidate Abdullah Abdullah's withdrawal from a runoff that he had scant chance of winning ends what had become a mere sideshow to more significant events unfolding in Kabul. President Hamid Karzai can now firmly take center stage. He has turned the tables on Western powers that would have seen him vilified and overthrown, and, if the rift worsens, he could yet blow the lid on an explosive issue: the role of foreign troops in the narcotics trade. - M K Bhadrakumar (Nov 2, '09)

Al-Qaeda has plans for its new recruit
With the recent appointment of Ilyas Kashmiri as head of its military committee, al-Qaeda has recruited a veteran who learned his trade on the battlefields of Afghanistan and during the insurgency against India in disputed Kashmir. Ilyas also took with him his elite 313 Brigade, which al-Qaeda claims it now wants to unleash. A foiled plot in Denmark could be a prelude. - Syed Saleem Shahzad (Nov 2, '09)

SPENGLER
The idiot twins of
American idealism

It is mad to believe, as the George W Bush administration did, that the United States can remake the world in its own image. It is even madder to turn foreign policy into an affirmative action program for disadvantaged or dying cultures. In such lean times, Washington's "realists" do not seem focused on what should be a core interest, fostering viable partners for the future and jettisoning those that are beyond viability. - Spengler (Nov 2, '09)

Why Pakistanis see US as the bigger threat
Most Pakistanis are anti-Taliban, but they are even more anti-United States, as United States Secretary of State Hillary Clinton learned during her visit to the country last week. The view persists that Pakistan is fighting an American war; that before 2002 there was no terrorist threat in Pakistan; and that the threat will vanish once US forces withdraw from the region. - Muhammad Idrees Ahmad (Nov 2, '09)

Now it's a one-horse race
In Kabul's cavernous loya jirga council tent, built to signify the hope and reunification of Afghanistan, Abdullah Abdullah's dramatic withdrawal from the presidential race has set the stage for even more discord and instability; people are in a more vulnerable place than before the start of the election. - Derek Henry Flood (Nov 2, '09)

Sechin divides the Black Sea
Russian Deputy Prime Minister Igor Sechin appears to have overturned the long-term strategic perspective on how the country should use the Black Sea as an energy transit route. Out goes Bulgaria as a terminal and key partner; in comes Turkey with a much-enhanced role - with all waters muddied by claim and counter-claim. - John Helmer (Nov 2, '09)

Chinese general enters US military core
Ahead of United States President Barack Obama's first official visit to Beijing, China's second-highest officer became the first People's Liberation Army member to visit US Strategic Command headquarters. Both sides are sending the right signals in pursuit of strengthening military-to-military ties; beneath the surface, improved relations do not appear an urgent priority. - Peter J Brown (Nov 2, '09)

Sikhs take stock of 1984
In October 1984, the assassination of prime minister Indira Gandhi led to the massacre of thousands of Sikhs. India now has a Sikh premier and ruling Congress party leaders say they have won the hearts of the Sikh community. But not all Sikhs are appeased; they are still waiting for justice. - Sudha Ramachandran (Nov 2, '09)

NATO forces turn to warlords
Afghan warlords are earning millions of dollars from North Atlantic Treaty Organization forces to guard forward operating bases and supply convoys. Their ruthless private armies are reviled by much of the public, and are likely to turn their rifles on NATO forces should the protection money dry up. - Gareth Porter (Oct 30, '09)

Doubles, toil and trouble in Pyongyang
North Korean leader Kim Jong-il's sprightly appearance in a spate of public showings since he reportedly suffered a stroke, including meetings with China's Premier Wen Jiabao and former United States president Bill Clinton, has re-ignited rumors there is a troupe of look-alike Dear Leader actors. - Donald Kirk (Oct 30, '09)

AN ATOL INVESTIGATION
Deep inside Indonesia's kill zone
Indonesia's Detachment 88 counter-terrorism teams are seen by some critics as too willing to kill suspects and so do away with the need for long trials of suspected jihadis. Yet the training of these crisis response teams, and their weaponry, is in many ways inadequate for confronting at close quarters suicidal and well-armed opponents. - John McBeth (Oct 30, '09)

<IT WORLD>
Microsoft reliable as ever
Microsoft has maintained its reputation for delivering fierce headaches along with its new software offerings. Many would-be users of Windows 7 are discovering that the company's new operating system fails to install satisfactorily and their computers then refuse to restore the old system.
Martin J Young surveys the week's developments in computing, science, gaming and gizmos. (Oct 30, '09)

Ill winds over Iran's nuclear draft
The contents of Iran's response to a fuel-for-fuel draft proposal from the International Atomic Energy Agency for Tehran's low-enriched uranium have not been officially disclosed. Already, though, both inside Iran and in the United States, the initiative is under attack. - Kaveh L Afrasiabi (Oct 30, '09)

More missiles across the strait
A recently released report by Taiwan's Defense Ministry stating that China has increased the number of missiles targeted at the island demonstrates that despite unprecedented warming relations, the potential for war between the long-time rivals still very much exists. - Cindy Sui (Oct 30, '09)

China stocks surge on new board debut
High returns and high risks is the name of the game as never before in China's stock markets, with values of companies listed on the world's newest exchange, the small-market ChiNext based in Shenzhen, surging on its opening day on Friday. - Olivia Chung (Oct 30, '09)

CHAN AKYA
Time to go Dutch
The ruling by the European Union Commissioner for Competition that Dutch bank ING Groep should sell its insurance unit and US banking arm demonstrates that the Europeans, unlike their US counterparts, are taking the right route regarding stewardship of the global financial system. (Oct 30, '09)

Europe stoops to conquer the Uzbeks
A controversial decision by Europe to lift an arms embargo on Uzbekistan comes as alarm bells are ringing in Central Asian capitals over a possible spillover of the Afghan war. Tashkent may be the key to a northern supply corridor, but regional leaders - increasingly skeptical of the West's will to win and the prospect of "Afghanization" - are bracing for a Taliban victory. - M K Bhadrakumar (Oct 29, '09)

Strong messages in Pakistan
The primary job of United States Secretary of State Hillary Clinton during her visit to Pakistan is to relay the message to both its civilian and military leadership that it would be wise to join the US in fighting extremists as part of the war in Afghanistan. The massive car bomb that killed 105 people in Peshawar on the day of her arrival is the militants' message. (Oct 29, '09)

A turkey hunt in Iraq
Rather than finding those who struck at Baghdad's Green Zone in August, killing 100 people, Iraqi Prime Minister Nuri al-Maliki searched for political scapegoats to protect his own neck. There has been more of the same in the wake of Sunday's bombings that killed at least 150 people, leaving the terrorists at will to strike again. - Sami Moubayed (Oct 29, '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)

In Cambodia, a threatened tribe of Islam
The distinct practices of the Cambodian Imam San community, which blend Islam and animism, are seen by many Muslims as impure. Adding to the group's estrangement, its members have rejected foreign-funded incentives to convert to more orthodox Islam amid concern over the possible radicalizing influence of foreign teaching. - Brendan B Brady (Oct 29, '09)

Helicopter rumors refuse to die
The United States is battling yet another rumor in Afghanistan, that Western forces are using helicopters to transport Taliban fighters from the volatile south to the north of the country. Officials have dismissed the claims as rubbish, but locals are sticking to their stories. - Ahmad Kawoosh (Oct 28, '09)

Taliban take over Afghan province
Following the withdrawal of United States troops from key bases, the Taliban have taken control of Afghanistan's Nuristan province. It is now under Qari Ziaur Rahman, a Taliban commander with strong ties to Osama bin Laden and al-Qaeda. With this haven, the Taliban's first goal is to disrupt next month's runoff presidential election, then to assist militants in Pakistan. - Syed Saleem Shahzad (Oct 28, '09)

Afghan fury at Koran burning claims
Allegations that American forces burned copies of the Koran during a recent raid in central-eastern Afghanistan have led to a series of protests, including two in the capital, Kabul. The United States military denies the charges, saying Taliban insurgents are behind the burnings. - Abdullah Obaidi (Oct 27, '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 1, '09)
Can we stiggle [in honor of Joseph Stiglitz] our way to prosperity by forcing the banks to lend?



New heights for Singapore property
Singapore's property market, buffeted as the city-state felt the full brunt of the global financial crisis, is rebounding so strongly that home sales are setting records and potential buyers are leaving blank checks with agents to secure new apartments in new projects. - Megawati Wijaya

China electrifies urban transit
Chinese companies such as Zhengzhou Yutong Bus and Anhui Ankai Automobile China, at present little known outside their home country, are seeking to lead the world in making public buses fit for a health-conscious world. In their favor is a vast and growing urban population - and a government determined to clean up China's megacities. - Ryan Rutkowski

Financial reform
next for Obama

No real financial reform proposals are even near enactment in the United States, despite much hot air about somehow reining in "too big to fail" institutions. President Barack Obama, emerging from the battles of healthcare reform, must now steel himself for the fire of financial institutions defending their right to unfettered greed. - Julian Delasantellis

THE BEAR'S LAIR
Bernanke learns from
the wrong crash

United States Federal Reserve chairman Ben Bernanke, noted as a specialist on the 1929 market crash and the Great Depression, would be better off looking at other financial disasters over the centuries for lessons more pertinent to the present crisis. - Martin Hutchinson

FROM THE BLOG
Stiggling to non-prosperity
Nobel Laureate Joseph Stiglitz's suggestions that the United States should have nationalized the banks merits a neologism, "to stiggle", meaning to make uneconomic loans for political reasons. - David Goldman




CREDIT BUBBLE BULLETIN
The newest abnormal
It's as if there's a contest to coin a catchy phrase that will gain popular acceptance - and persuade the public that everything in the garden is rosy, or at least heading that way. Now we have the "new normal" - a misnomer for what is, in fact, the "new abnormal" of unrelenting monetary disorder.
Doug Noland looks at the previous week's events each Monday. (Nov 2, '09)

MARKET RAP
No silver lining
An end-of-week revival in prices put a positive sheen on recent trading that might survive for a few more days. The longer prospect is for more or less generalized declines.
R M Cutler runs his eye over the ups and downs in the week's markets. (Oct 30, '09)





"Chan [Akya], re your latest offering, Time to go Dutch: ... If the Europeans can do it, why can't the Americans?" - MonsoonWind

"[I]t appears that in the case of America, the banks ARE the government ... lacking a backbone or at least specific understanding of the banking system, the US government (represented by Bernanke, Geithner et al) needs the 'approval' of the banks to effect any reforms. ..." - Chan Akya

"[I]n Europe, (1) ideology plays a far smaller role than in US, specifically 'social concerns' and 'regulation' are not dirty words in European business/political worlds; (2) debate/decision making defers to the intellectual elites, whereas in the US, debate/decision defers to infotainment talk shows which [are] really puppet shows run by 'power elites' ..." - ding73ding

From Our Mailbox
[Re The idiot twins of American idealism, November 2] There is an obsession in the West with aggrandizing dictators, appeasing terrorist states, and replacing reality with a dream. The problem is that this dream is becoming a nightmare.
Ysais Martinez
   Go to Letters to the Editor



1. The idiot twins of American idealism

2. US goofs the Afghan election

3. Why Pakistanis see US as the bigger threat

4. Al-Qaeda has plans for its new recruit

5. More missiles across the strait

6. Chinese general enters US military core

7. Sechin divides the Black Sea

8. NATO forces turn to warlords

9. Hair of the dog

10. Now it's a one-horse race

(24 hours to 11:59pm ET, Nov 2, 2009)

Pick of the month Oct 2009
SPENGLER

Obama's permanent depression




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