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Iran launches new phase in nuclear crisis

Tehran's acceptance of a "fuel-for-fuel" deal that would defuse concern over its nuclear program comes as the United States announces plans to encircle Iran and introduce tougher new sanctions on the Islamic Republic. Iran says its gesture is an unclenching of its fist, while skeptics dismiss it as a ploy to buy time and garner international support. - Kaveh L Afrasiabi (Feb 4, '10)

Pawns in a nuclear chess game
The United States has dismissed Iran's offer to exchange three US citizens held by Tehran since July for Iranians imprisoned by the US. The offer comes at a sensitive time, indicating that Tehran sees the prisoners as an important bargaining chip in its dealings with Washington. - Omid Memarian (Feb 4, '10)


US fires off new warning in Pakistan
With its biggest drone attack to date in Pakistan - nine unmanned vehicles firing 19 missiles in one evening - the United States has underscored its invigorated desire to wipe out Taliban and al-Qaeda sanctuaries in the Pakistan and Afghanistan border areas. The efforts are backed by a new intelligence-gathering network tapping into Afghan tribesmen. - Syed Saleem Shahzad (Feb 4, '10)

THE ROVING EYE
Staring at the abyss
On Indonesia's tropical island of Bali, everything is about sekala and niskala, ritual and the occult. In the United States, the Pentagon has its occult as it continues its descent into the ghostly abyss of its "long war". When President Obama visits Indonesia next month, he'd do well to do some soul-searching on Bali if he is to avoid being permanently engulfed by hungry ghosts. - Pepe Escobar (Feb 4, '10)

Dalai Lama firm on Obama meeting
A United States rebuttal of warnings from China against the Dalai Lama meeting Barack Obama adds to the growing list of tensions between Washington and Beijing. The issue has spilled over into talks between Beijing and envoys of the Dalai Lama, who stressed that a meeting between the Tibetan spiritual leader and the US president was a tradition unbroken since 1991, one of the envoys tells Asia Times Online. - Saransh Sehgal (Feb 4, '10)

Anwar trial another black eye for Malaysia
To many, Anwar Ibrahim is not the only defendant in the dock in a sodomy trial that is the talk of Malaysia. Amid explicit language and allegations, everyone from the prime minister and the political establishment to the police and judiciary itself could be dragged through the mud if, as in Anwar's first trial, the courtroom drama turns into a high-stakes soap opera stretching out for months. - Anil Netto (Feb 4, '10)

India's awards lose honorable luster
India's highest civilian awards are increasingly being distributed to those who have friends in positions of power. Adding to a string of questionable choices in recent times, this year's top award-winners include a former militiaman and an alleged crook. - Sudha Ramachandran (Feb 4, '10)



US's strike threat catches China off guard
The United States' plans for a "Prompt Global Strike" system that could launch a conventional weapons attack on anywhere in the world within an hour are unsettling China. The US combat strategy has traditionally relied on nuclear might, and this change is seen by Beijing as a maneuver in America's quest for domination of the world and of space. - Peter J Brown (Feb 3, '10)

Pakistani Taliban has its work cut out
If Hakeemullah Mehsud, the leader of the Tehrik-e-Taliban Pakistan, did indeed die in a United States drone attack last week, there is a ready replacement for him in a young battle-hardened commander with a set agenda: to continue the relationship that Mehsud's group forged with al-Qaeda as a component of its regional plans. - Syed Saleem Shahzad (Feb 3, '10)

US ups the ante in Iran nuclear game
By expanding its missile defense systems in the Persian Gulf, the United States is sending its strongest message yet to Iran over the stalemate in talks over Tehran's nuclear program. The move can also be seen as a sign that neo-conservative voices are being heard in Washington. - Mohammed A Salih (Feb 3, '10)

Taliban raid showcases new battle tactics
With tactics similar to an earlier assault on Kabul, heavily armed Taliban suicide bombers attacked important buildings in Lashkar Gah, Helmand's provincial capital. The Taliban say the focus on urban targets has been forced on them by the increased presence of troops. - Mohammad Ilyas Dayee (Feb 3, '10)

US, Karzai split over Taliban talks
Differences between Afghan President Hamid Karzai and key officials of the administration of United States President Barack Obama over the issue of talks with the Taliban came to a head at last week's London conference. Peace negotiations are embedded in a deeper conflict over US war strategy, which has provoked broad anger and increasing suspicions of US motives among Afghans - and especially with Karzai. - Gareth Porter (Feb 3, '10)

Obama expectations revised in Indonesia
Confirmation that United States President Barack Obama will make a much-awaited visit to his childhood home of Indonesia has had a mixed reception. Fading hopes that Obama will upgrade Jakarta's strategic importance in Washington mirror discontent with Indonesia's own president, raising doubts whether Obama's visit will benefit the Indonesian leader. - Sara Schonhardt (Feb 3, '10)

Brinjal a political hot potato in India
The battlelines are drawn in India's brinjal wars between proponents of the introduction of a variant as the country's first commercial genetically modified vegetable, who say it will cut pesticide use, and those who say it is harmful. The government stumbled late into the debate over the crop, also known as eggplant, and has a tough decision to make. - Neeta Lal (Feb 3, '10)

Bernanke who?
China's efforts to cool its economy are already having an impact elsewhere - notably on export-related stocks in the United States, such as those involved in steel, shipping and natural resources. The most important monetary official in the world may now be based, not in Washington, but in Beijing. - Julian Delasantellis (Feb 3, '10)

The Iraqi oil conundrum
Dreams nurtured in the United States that the overthrow of Saddam Hussein would be quickly followed by oil revenues flowing into the coffers of US-based companies have long turned sour. Now, even the involvement of China has failed to get the black gold flowing. - Michael Schwartz (Feb 3, '10)

Taliban take on the US's surge
The Taliban, rather than demand that all foreign troops be pulled out of Afghanistan before negotiations begin with the United States or any other country, have proposed that if the US stops its surge of 30,000 troops, dialogue can start immediately. In addition, the Taliban say they will take measures to reduce hostilities. The dilemma for the US is how desperate is it to take the Taliban's word. - Syed Saleem Shahzad (Feb 2, '10)

South Korea marks a painful centenary
Northeast China, March 26, 1910. A Korean nationalist is executed for pumping four bullets into Hirobumi Ito, architect of the Meiji Restoration and Japan's colonial administrator for Korea. The shots fired by Ahn Jung-geun ushered in a 35-year Japanese occupation of Korea marked by killings, "comfort women" and a merciless "Japanization". They also rang out across Northeast Asia, raising questions of Pan-Asian unity that remain unanswered to this day. - Ronan Thomas (Feb 2, '10)

Geomancer loses in battle of the wills
A case that has mesmerized money-obsessed Hong Kong ended on Tuesday with a court deciding a charity run by the family of Nina Wang, Asia's richest woman when she died over two years ago, is the rightful heir to her estimated US$4 billion fortune. A rival will produced by her feng shui advisor and self-professed lover was ruled a fake. - Olivia Chung (Feb 2, '10)

Turkey changes course on Armenia
Though there has been much criticism of the Turkish government wanting to initiate a commission to look at the evidence relating to the 1915 killing of more than one million Ottoman-Armenian civilians during World War I, it's an important step as Ankara tries to move away from the country's traditionally dogmatic view of its official history. - Caleb Lauer (Feb 2, '10)

A 'black chapter' closes in Bangladesh
After executing five of the 12 army officers who in 1975 killed Bangladesh's founding father, Sheikh Mujibur Rahman, Dhaka has vowed to bring to justice the six remaining suspects. The bloody events of 35 years ago ushered in an era of bitter upheaval and martial law; many Bangladeshis say that finally their nation has been purged of its stains. - Farid Ahmed (Feb 2, '10)

Tomb warriors battle in China
The battle between ancient warlords Cao Cao and Liu Bei has been renewed in death. As archaeologists seek recognition that they have identified their final resting places - the one in Henan province, the other in Sichuan - truth and authenticity are being overshadowed by officials' hunger for increased tourism revenue. - Kent Ewing (Feb 2, '10)

Temasek and Thaksin lost in space
A corruption case against exiled former Thai premier Thaksin Shinawatra is overshadowing Shin Satellite, which he sold before being ousted from power. Singapore's Temasek Holdings, the present owner, faced with the prospect of a canceled tax holiday, may find it best to get rid of its stake, but attracting a buyer for the debt-burdened, loss-making unit could be tough. - Peter Brown (Feb 2, '10)

Iran caught up in China-US spat
China has reacted to news of the United States' proposed US$6.4 billion arms package for Taiwan by warning that diplomacy involving the US's efforts to get Beijing's backing in the nuclear stand-off with Iran could be damaged. By playing spoiler, though, China risks sending Washington further down a confrontational path with Tehran. - Kaveh L Afrasiabi (Feb 1, '10)

SPENGLER
Profits, not principals,
move the age

What brought United States and other Western banks down was not speculative bets in volatile markets but the necessary pursuit of profit in what appeared to be ultra-safe investments. The sources of the crisis remain unchanged: the industrial world's need to fund the greatest retirement wave in history. (Feb 1, '10)

Dialogue seeks a middle ground
The Taliban, unable to deliver a decisive military blow to oust the government in Kabul, know they will never rule Afghanistan as they once did, while foreign forces up against an intractable foe cannot expect counter-insurgency to succeed anytime soon. Straight talking, however, could give each side in the conflict much of what they seek. - Brian M Downing (Feb 1, '10)

China's US spending passes landmark
Chinese businesses last year invested more in United States entities than was invested in the other direction. Such cash flows can benefit the American economy at large; if politicians mishandle matters, the Chinese funds will go elsewhere. - Benjamin A Shobert (Feb 1, '10)

BOOK REVIEW
The skeleton in the cupboard
China: Fragile Superpower
by Susan L Shirk
While avoiding the stereotypes on which Western pundits base their assumption that China's rise to surpass the power of the United States is inevitable, this important book charts a course of democratization. However, it fails to account for the possibility that China may succeed precisely because of its totalitarian nature. - Dmitry Shlapentokh (Jan 29, '10)

<IT WORLD>
iPad a job half done
"We think we've done it," proclaimed Apple boss Steve Jobs when he unveiled the company's tablet computer. Yet the list of what the iPad does not do will persuade many potential buyers to keep their cash in their wallets until something better comes along - perhaps from Google.
Martin J Young surveys the week's developments in computing, science, gaming and gizmos. (Jan 29, '10)

CHAN AKYA
Vestigial organs
As governments in the United States and Europe figure out how to bail out their struggling states - California and Greece the prime candidates for failure - the rest of the world can consider the body's vestigial organs, such as the appendix, and wonder if such a fate now awaits the US dollar and the euro. (Jan 29, '10)

SINOGRAPH
Silence on Tibetan
talks is golden

The Dalai Lama's decision to keep the reopening of talks with the Chinese government this week out of the spotlight is in line with how Beijing likes to conduct diplomacy. But plenty of opposing forces, from a disagreement between the parties over what constitutes the territory of Tibet to factions within both sides, threaten to derail meaningful progress. - Francesco Sisci (Jan 28, '10)

SUN WUKONG
Xi blows whistle
for the big match

Vice Premier Xi Jinping is thought to have thrown his weight behind a crackdown on football corruption in China. Successful efforts to clean up the game and bring happiness to legions of frustrated fans could put one in the back of the net for Xi's bid to be supreme leader. - Wu Zhong (Jan 26, '10)
David P Goldman
(Jan 28, '10)
The 0.3% rise in US durable goods sales doesn’t quite make it the first robin of spring.



Shanghai wishing on
a fading Disney star

China's financial center, Shanghai, may be losing its warm, fuzzy feelings over getting the third Disneyland theme park in Asia, scheduled to open in 2014. As the city’s politicians look south to the magic kingdom in Hong Kong, where the reality of losses mock the expectations of a bonanza for the economy, they see a warning of what their dreams may bring about. - Olivia Chung

Ukraine poll may
deliver oil to Europe

Europe's need for secure fuel sources could be met in part by an oil pipeline that already runs across Ukraine and serves that country with fuel from Russia. The pipeline could, instead, deliver Caspian oil to Europe while bypassing Russia and Turkey. Sunday's presidential election run-off might hold the key. - Robert M Cutler

Gazprom gives half-nod
to poor outlook

Russian gas monopoly Gazprom, faced with falling revenues and profits, will focus this year on marketing rather than investment into field development. That spells trouble down the road once external and internal demand recovers. - Vladimir Socor

What's next for the dollar?
Tightening credit may push up mortgage costs in the United States, threatening an already questionable housing market recovery. That may encourage Federal Reserve chief Ben Bernanke to print more money, gambling that higher inflation from a weakening dollar may drive home prices back up again. - Axel Merk

FROM THE BLOG
Obama no Clinton
US President Barack Obama can no more conjure up an economic recovery by doing things that look like what Bill Clinton did than the natives of New Guinea could draw cargo from the sky with straw totems. - David Goldman




MARKET RAP
Storm clouds burst
A late recovery was too little to mask the continued decline in Asian stocks - with Taiwan and Shanghai being particularly volatile - and the outlook remains pessimistic. (Jan 29, '10)
R M Cutler runs his eye over the ups and downs in the week's markets.


Re South Korea marks a painful centenary:

"We all appreciate focused historical accounts. But when they are as well-written as this, with considerable style, they are indeed welcome." - Jim the Moron

"... Ahn Jung-geun's purported handprint [with lopped finger] has become a nationally recognized symbol in Korea of the freedom struggle. Yet I think the Ahn photo is either a fake or heavily doctored in darkroom or Photoshop. This is why ..." - aquicke

From Our Mailbox
[Re Taliban take on the US's surge, February 2] The iron will and fierceness that the Taliban show in battle should be used in our favor: give them their country back, work out a deal with them so they keep the region stable ... and have the Taliban do the dirty work for the United States intelligence branches. It is time to start thinking like Cardinal Richelieu rather than Paris Hilton.
Ysais A Martinez
Pennsylvania, USA
   Go to Letters to the Editor



1. US's strike threat catches China off guard

2. Pakistani Taliban has its work cut out

3. US ups the ante in Iran nuclear game

4. The Iraqi oil conundrum

5. Bernanke who?

6. US, Karzai split over Taliban talks

7. Taliban raid showcases new battle tactics

8. Taliban take on the US's surge

9. Obama expectations revised in Indonesia

10. Brinjal a political hot potato in India

(24 hours to 11:59pm ET, Feb 3, 2010)

Pick of the month Jan 2010
Obama's Yemeni odyssey targets China
- M K Bhadrakumar







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