meanwhile, back at the ranch...,

NYTimes | Obama administration officials face the same intractable problems that the Bush administration did in trying to prod Pakistan toward a different course. Pakistan still deploys the overwhelming majority of its troops along the Indian border, not the border with Afghanistan, and its intelligence agencies maintain shadowy links to the Taliban even as they take American funds to fight them.

Under standard policy for covert operations, the C.I.A. strikes inside Pakistan have not been publicly acknowledged either by the Obama administration or the Bush administration. Using Predators and the more heavily armed Reaper drones, the C.I.A. has carried out more than 30 strikes since last September, according to American and Pakistani officials.

The attacks have killed a number of senior Qaeda figures, including Abu Jihad al-Masri and Usama al-Kini, who is believed to have helped plan the 1998 American Embassy bombings in East Africa and last year’s bombing of the Marriott Hotel in Islamabad.

American Special Operations troops based in Afghanistan have also carried out a number of operations into Pakistan’s tribal areas since early September, when a commando raid that killed a number of militants was publicly condemned by Pakistani officials. According to a senior American military official, the commando missions since September have been primarily to gather intelligence.

The meetings hosted by the Obama administration next week will include senior officials from both Pakistan and Afghanistan; Mrs. Clinton is to hold a rare joint meeting on Thursday with foreign ministers from the two countries. Also, Gen. Ashfaq Parvez Kayani, the Pakistani Army chief, will meet with Defense Secretary Robert M. Gates and Adm. Mike Mullen, the chairman of the Joint Chiefs of Staff. Lt. Gen Ahmed Shuja Pasha, the head of Pakistan’s military spy service, will accompany General Kayani.

china investing globally

NYTimes | China is taking advantage of the economic downturn to go on a major shopping spree, investing in energy and other natural resources that could give it an economic advantage it has never had before.

Some economic analysts say they believe that China’s investments pose a threat to competitors like the United States. In the last move, Beijing said on Friday that one of its big state-owned banks, the China Development Bank, would lend the Brazilian oil giant Petrobras $10 billion in exchange for a long-term commitment to send oil to China.

China signed similar deals this week with Russia and Venezuela, bringing Beijing’s total oil investments this month to $41 billion. They represent an important investment. Supplies of commodities like oil are likely to tighten again once global growth picks up, and China will have a toehold it lacked during the recent boom, when it grew phenomenally even with limited access to resources.

China is flush with cash — thanks to trillions of dollars from decades of selling goods to the West — at a time when credit markets are tight and collapsing commodity prices have left energy and natural resource companies desperate for cash. For many of these companies, China has gone from pariah to lender of first resort.

“This is heavy energy diplomacy,” Professor Andrews-Speed said. “If you need money, you go to where the money is, and today, China’s the place.”

President Hu Jintao of China traveled this week on his “Friendship and Cooperation Tour” in Africa, where China has huge interests in resources and mining. The vice president, Xi Jinping, visited South America, met with the leaders of Brazil and Venezuela and signed cooperation agreements on oil and minerals.

Venezuela borrowed $6 billion from China and agreed to increase its oil exports to China, bringing China’s total investment in the country to $12 billion. In Brazil, China signed a $10 billion “loan-for-oil” deal that guarantees the country up to 160,000 barrels a day at market prices.

And in Beijing this week, Prime Minister Wen Jiabao met his Russian counterpart after China agreed to lend Russia’s struggling oil giant Rosneft and Russia’s oil pipeline company, Transneft, $25 billion in exchange for 15 million tons of crude oil a year for 20 years.

clinton assures china on u.s. investments

Joplin Globe | With the export-heavy Chinese economy reeling from the U.S. downturn, Clinton sought in meetings with Premier Wen Jiabao and other top Chinese government leaders to reassure Beijing that its massive holdings of U.S. Treasury notes and other government debt would remain a good investment.

"I appreciate greatly the Chinese government's continuing confidence in United States treasuries. I think that's a well-grounded confidence," Clinton told reporters at a joint news conference with Chinese Foreign Minister Yang Jiechi.

"We have every reason to believe that the United States and China will recover, and together we will help lead the world recovery," she said. Yang said China wants its foreign exchange reserves - the world's largest at $1.95 trillion - invested safely, with good value and liquidity. He said future decisions on using them would be based on those principles, but added that China wanted to continue work with the U.S.

"I want to emphasize here that the facts speak louder than words. The fact is that China and the United States have conducted good cooperation, and we are ready to continue to talk with the U.S. side," Yang said.

Beijing is the last and perhaps most important stop on Clinton's weeklong visit to Japan, Indonesia, South Korea and China on which she wanted to focus on the economy and global warming.

calderon vows to press on...,

Washington Post | Mexican President Felipe Calderón on Thursday defended the deployment of the military in his fight against drug cartels, vowing that the army would continue to patrol cities until the country's weakened and often-corrupt police forces were retrained and able to do the job themselves.

In a speech commemorating the founding of the Mexican army, Calderón suggested that drug bosses had paid marchers who took to the streets this week to protest the army's presence in a dozen cities, where soldiers man roadblocks, search houses and make frequent arrests.

Calderón, who has sent more than 45,000 troops to fight the cartels, said the military would remain on patrol until the government had control of the most violent parts of the country and civil authorities were fully able "to confront this evil." Only then, he said, "will the army have completed its mission."

Turf battles involving the drug traffickers, who are fighting the army, police and one another in order to secure billion-dollar smuggling routes into the United States, took the lives of more than 6,000 people in Mexico last year. The pace of killing has continued in 2009, with more than 650 dead, most in the violent border cities of Ciudad Juarez and Tijuana. In the past few days, a running gun battle between soldiers and gunmen through the streets of the northern city of Reynosa, captured live on television, left five people dead. In Ciudad Juarez, the assistant chief of the city police department was ambushed Tuesday and assassinated with three other officers.

millionaire patriot wants YOU armed and trained

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mexican oil wealth until 2080

El Universal | The man in charge of finding oil and gas in Mexico, Carlos Morales Gil, said that companies Goyler & McNaughton, Netherland Sewell & Ryder Scott and a certified original volume of reserves in the palaeochannels of Chicontepec by 139 billion barrels of crude oil equivalent.

The director of Pemex Exploration and Production (PEP) said in an interview with El Universal volumes of hydrocarbons that are certified, "not a number that I've invented."He clarified that this amount of oil can only be drawn with the available technology, some 18 billion barrels in the next 30 years.

But what will happen to the remaining 118 billion barrels, "he questioned. "We are going to be there, because at the moment there is no technology that allows us to extract that resource," he replied. Probably, he added, over time there is a technologist who will provide the ability to "squeeze" the most Chicontepec.

Although the resources in the 29 certificates that make up the active fields require investments to be acquired and developed the category of economically exploitable reserves, only in terms of volume is equivalent to half the proven reserves of Saudi Arabia, 78% of the reserves Canada and equal to those of Iran, three countries with the largest volume of world oil reserves and 3.8 times higher than Cantarell.

menace spreads in guatemala

Reuters | Guatemala, scarred by years of civil war and rampant street gang crime, is suffering a new scourge as violent Mexican drug traffickers put down deep roots in the country.

A Mexican army crackdown has driven some cartels to seek a haven for their operations across the border in Guatemala, attracted by endemic corruption, weak policing and its position on the overland smuggling route north for Colombian cocaine.

That is a headache for President Alvaro Colom as the cartels employ the same violent tactics that have sown terror in Mexico.

"They are moving in because Guatemala is a paradise for drug traffickers. It's a poor country with a lot of corruption and the judicial system is very weak," Guatemalan Vice President Rafael Espada told Reuters in a recent interview.

Scores of Mexican traffickers are operating in Guatemala, including members of the Sinaloa cartel run by top fugitive Joaquin "Shorty" Guzman and the rival Gulf cartel's armed "Zetas" wing, officials say.

"It's the biggest challenge for Colom's government," said Guatemalan political analyst Manuel Villacorta.

Colom's security forces lack money, recruits, equipment, guns and intelligence to face the Mexicans, he said. "It's impossible for Guatemala, with the resources it has, to be able to address the problem."

As in Mexico, where about 6,000 people were murdered in the drugs war last year, the cartels buy off Guatemalan police and army officers as well as judges and politicians to protect their business, and pose a long-term threat to its democracy.

Guatemala's 1960-96 civil war left more than 200,000 dead, and street gangs that sprang up after the conflict have pushed the murder rate to among the highest in the Americas.

Colom was elected a year ago on a crime-fighting platform but 2008 was one of the most violent years on record with more than 6,000 murders out of a population of just 13 million.

obama, gates at odds over cia whistleblower protections

Washington Post | During an election featuring Democratic allegations that U.S. intelligence was distorted to justify a misbegotten war, Barack Obama endorsed new protections for national security officers who blow the whistle on abusive, corrupt or illegal behavior, by offering them the right to sue for damages and challenge denials of their security clearances.

But by keeping a Republican-appointed secretary of defense strongly opposed to those changes, President Obama is finding the path to a new policy on federal whistleblowing much more complicated.

Defense Secretary Robert M. Gates and other top Bush appointees wrote an unusually tough letter to Congress last year asserting that the bill protecting whistleblowers would threaten national security, violate the Constitution and undermine the government's ability to safeguard legitimate secrets.

The legislation, passed this year by the House, is still being reviewed by the White House, according to the Office of the Director of National Intelligence. "We understand this is an important issue, and we're committed to addressing it in a manner that is consistent with national security," said spokeswoman Wendy Morigi, declining to comment further.
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The bill has evoked strong feelings on both sides because it would extend a series of rights held by most federal workers to dissident employees at the CIA, the National Security Agency, the Defense Intelligence Agency, the FBI and other intelligence agencies. Unlike their counterparts elsewhere, they cannot now appeal adverse administrative decisions outside their agencies, either to a special civil service board or to a federal court. Along with others, they also cannot win compensatory damages for improper job decisions or sue to regain their clearances.

For those on the fence about Obamamandian moral grounding, THIS is the executive decision to watch.....,

phoenix arizona second only to mexico city

Phoenix, Arizona has become the kidnapping capital of America, with more incidents than any other city in the world outside of Mexico City and over 370 cases last year alone. But local authorities say Washington, DC is too obsessed with al Qaeda terrorists to care about what is happening in their own backyard right now.

“We’re in the eye of the storm,” Phoenix Police Chief Andy Anderson told ABC News of the violent crimes and ruthless tactics spurred by Mexico’s drug cartels that have expanded business across the border. “If it doesn’t stop here, if we’re not able to fix it here and get it turned around, it will go across the nation,” he said.

California Attorney General Jerry Brown warned that as the U.S. government focuses so intently on Islamic extremist groups, other types of terrorists — those involved with the same kidnappings, extortion and drug cartels that are sweeping Phoenix — are overlooked.

marchers block US border to protest army presence

Associated Press | Hundreds of people blocked bridges to the United States in three border cities Tuesday, demanding the army leave in another challenge for the Mexican government as it struggles to quell escalating drug violence.

The protests in Ciudad Juarez blocked traffic for about two hours across three bridges connecting the city to El Paso, Texas. Similar protests broke out on bridges in the border cities of Nuevo Laredo and Reynosa. Demonstrators blocked city hall and a main avenue in the northern industrial city of Monterrey and roads in the Gulf state of Veracruz.

It was the largest display of discontent against the army's role in an anti-drug crackdown since President Felipe Calderon began deploying soldiers across the country two years ago to fight cartels. About 45,000 soldiers are now spread out across Mexico.

Government and army officials claimed that drug cartels organized similar protests in Monterrey earlier this month to undermine the crackdown. Federal officials had no immediate comment on Tuesday's protests.

Human rights activists say there are legitimate complaints about abuses by soldiers, including cases in which patrols allegedly opened fire on civilians at military checkpoints. But they say it is unclear who has been behind the demonstrations.

Calderon's offensive was initially widely popular among Mexicans hopeful for an end to relentless shootings, kidnappings and killings. But drug violence has only surged since then, with drug gangs beheading rivals and attacking police nearly every day. More than 6,000 people were killed in drug violence last year.

Border towns have been transformed by the crackdown, with soldiers in ski masks regularly rumbling down the streets in large convoys.

mexico will cause the collapse of america...,

police battle wave of abductions

Arizona Republic | Phoenix police are aggressively trying to reduce the number of near-daily home invasions and kidnappings, which helped earn the city the title of "kidnap-for-ransom capital" of the U.S.

Generally characterized as drug-related violence driven by gangs ripping off competitors, many of the kidnapping cases assigned to the city's robbery detectives involved masked gunmen armed with high-powered assault rifles and bulletproof vests, emulating tactical strike-team maneuvers to force others to forfeit drugs or cash.

But other experts said the crimes are primarily the work of small-time dealers trying to take advantage of the large number of stash houses scattered throughout the Valley, which serve as part of a nationwide distribution center for drug organizations.

Incidents in which gangs of gunmen pose as police are common in Arizona, where the drug business is booming.

In 2005, then-Gov. Janet Napolitano declared a "crisis" after a crime wave and again after another round of violence prompted a surge of border patrol agents in 2007. Drug dealers have waged violent battles over smuggling routes and territory as long as narcotics have been around, said Doug Coleman, a federal drug-enforcement agent in Phoenix, who sees the spike in kidnappings-for-ransom as a new twist on an old tactic.

drought and 2009 global food production

Market Skeptics | Consider the graphic below depicting countries by USD value of their agricultural output, as of 2006.


Now, consider the same graphic with the countries experiencing droughts highlighted.

palin's managerial skills

Houston Chronicle | Alaska Gov. Sarah Palin's first two years in office have been called a time of milk and honey, when the resource-rich state was flush with wealth from record oil prices.

The second half of her term isn't looking so rosy as Palin faces her first major financial challenge as governor.

The rapid decline of oil prices has left the state in a looming budget crisis and a late-entrant in the national recession. And that could have political repercussions for the former Republican vice presidential hopeful, who has signaled an interest in a 2012 presidential run but must stay visible in the Lower 48 to be successful.

"Given these bad times, she's going to have a much more difficult time traveling outside Alaska," said Larry Sabato, director of the University of Virginia's Center for Politics. "When times are good, people will let their governor roam. In bad times, citizens expect their governor to stay home and work on solving the problems."

Oil accounts for as much as 90 percent of state revenues. So the plunge of North Slope crude from an all-time high of $144.59 per barrel last July threatens to give the state an estimated budget shortfall of up to $1.5 billion in the fiscal year that ends June 30.

Palin bills herself as a fiscal conservative, and has called for reducing state spending by $268 million in this budget year, but lawmakers and others say these aren't reductions at all and do nothing to curtail spending. For example, the bulk of that sum — $200 million — is unspent tax credits for companies investing in oil and gas development that are being returned to the treasury.

Palin also is seeking approval from lawmakers to tap budget reserves to fill the deficit. She also has implemented a state hiring freeze that exempts public safety employees, but other departments are lining up to ask for waivers.

It's a long way from Palin's early tenure — particularly last year when the state's treasury was bloated with surplus money from the skyrocketing oil prices.

Iran pins hopes on Russia

RIA Novosti | Iran expects to receive the backing of Russia, which holds the presidency of the Shanghai Cooperation Organization, in its bid for full membership of the organization, Iran's foreign minister said on Monday.

The SCO comprises Russia, China, Kazakhstan, Tajikistan, Kyrgyzstan, and Uzbekistan. Russia took over the presidency of the organization last August. Iran and Pakistan have observer status within the organization.

"Iran has officially addressed SCO members and expects its observer status to be finally upgraded to full membership during Russia's chairmanship period," Manouchehr Mottaki said in an interview with RIA Novosti.

Widely seen as a counterweight to NATO's influence in Eurasia, the group primarily addresses security issues, but has recently moved to embrace economic and energy projects.

Iran and Pakistan, observers since 2005, have said they want to become permanent members of the organization, but their requests have yet to be officially considered.

Russia and China have expressed caution over admitting Iran, which is embroiled in a long-running dispute with the West and Israel over its nuclear program and alleged support for radical groups in Lebanon and other countries.

Both China and Russia have major commercial interests in Iran. China wants Iranian oil and gas, and to sell weapons and other goods to the country, while Moscow hopes to sell more weapons and nuclear energy technology to Tehran.

a 'fraud' bigger than madoff?

Independent | In what could turn out to be the greatest fraud in US history, American authorities have started to investigate the alleged role of senior military officers in the misuse of $125bn (£88bn) in a US -directed effort to reconstruct Iraq after the fall of Saddam Hussein. The exact sum missing may never be clear, but a report by the US Special Inspector General for Iraq Reconstruction (SIGIR) suggests it may exceed $50bn, making it an even bigger theft than Bernard Madoff's notorious Ponzi scheme.

Despite the vast sums expended on rebuilding by the US since 2003, there have been no cranes visible on the Baghdad skyline except those at work building a new US embassy and others rusting beside a half-built giant mosque that Saddam was constructing when he was overthrown. One of the few visible signs of government work on Baghdad's infrastructure is a tireless attention to planting palm trees and flowers in the centre strip between main roads. Those are then dug up and replanted a few months later.

Iraqi leaders are convinced that the theft or waste of huge sums of US and Iraqi government money could have happened only if senior US officials were themselves involved in the corruption. In 2004-05, the entire Iraq military procurement budget of $1.3bn was siphoned off from the Iraqi Defence Ministry in return for 28-year-old Soviet helicopters too obsolete to fly and armoured cars easily penetrated by rifle bullets. Iraqi officials were blamed for the theft, but US military officials were largely in control of the Defence Ministry at the time and must have been either highly negligent or participants in the fraud.

The end of the Bush administration which launched the war may give fresh impetus to investigations into frauds in which tens of billions of dollars were spent on reconstruction with little being built that could be used. In the early days of the occupation, well-connected Republicans were awarded jobs in Iraq, regardless of experience. A 24-year-old from a Republican family was put in charge of the Baghdad stock exchange which had to close down because he allegedly forgot to renew the lease on its building.

an american foreign legion?

Middle East Online | A leaner, meaner, higher tech force -- that was what George W. Bush and his Secretary of Defense Donald Rumsfeld promised to transform the American military into. Instead, they came close to turning it into a foreign legion. Foreign as in being constantly deployed overseas on imperial errands; foreign as in being ever more reliant on private military contractors; foreign as in being increasingly segregated from the elites that profit most from its actions, yet serve the least in its ranks.

Now would be a good time for President Barack Obama and Secretary of Defense Robert Gates to begin to reclaim that military for its proper purpose: to support and defend the Constitution of the United States against all enemies, foreign and domestic. Now would be a good time to ask exactly why, and for whom, our troops are currently fighting and dying in the urban jungles of Iraq and the hostile hills of Afghanistan.

A few fortnights and forever ago, in the Bush years, our "expeditionary" military came remarkably close to resembling an updated version of the French Foreign Legion in the ways it was conceived and used by those in power -- and even, to some extent, in its makeup.

For the metropolitan French elite of an earlier era, the Foreign Legion -- best known to Americans from countless old action films -- was an assemblage of military adventurers and rootless romantics, volunteers willing to man an army fighting colonial wars in far-flung places. Those wars served the narrow interests of people who weren't particularly concerned about the fate of the legion itself.

the politics of economic disaster

Agence Global | Every day, I read another economist, journalist, or government official opining on how best to achieve economic recovery in this country or that. Needless to say, the remedies all contradict each other. But almost all of these pundits seem to me to live in fantasyland. They actually seem to believe their remedies will work in some relatively short period of time.

The fact is that the world is only at the beginning of a depression that will last for quite a while and will get far worse than it is now. The immediate issue for governments is not how to recover but how to survive the growing popular anger they are all, without exception, facing.

Let us start with the economic realities of the present. Just about everybody throughout the world -- governments, enterprises, individuals -- has been living above their income for the last 10-30 years, and doing it by borrowing. The world went giddy with inflated earnings and inflated consumption. Bubbles have to burst. This one has now burst (or actually several bubbles have burst). The impossibility of continuing on this path has sunk into consciousness, and suddenly everyone has gotten scared that they are running out of real money -- governments, enterprises, individuals.

When that fear takes over, people stop spending, or lending. And when spending and lending declines significantly, enterprises stop producing or slow down. They may close down entirely, or at least fire workers. This is a vicious cycle, since closing down or firing workers leads to lower real demand and causes further reluctance to spend or to lend. It's called depression, and deflation.

right america feeling wronged

worth seeing as the sentiments expressed in this documentary will unfortunately figure prominently in our lives over the next few years...,

EU Götterdämmerung

UK Telegraph | Failure to save East Europe will lead to worldwide meltdown. The unfolding debt drama in Russia, Ukraine, and the EU states of Eastern Europe has reached acute danger point. If mishandled by the world policy establishment, this debacle is big enough to shatter the fragile banking systems of Western Europe and set off round two of our financial Götterdämmerung.

Austria's finance minister Josef Pröll made frantic efforts last week to put together a €150bn rescue for the ex-Soviet bloc. Well he might. His banks have lent €230bn to the region, equal to 70pc of Austria's GDP.

"A failure rate of 10pc would lead to the collapse of the Austrian financial sector," reported Der Standard in Vienna. Unfortunately, that is about to happen.

The European Bank for Reconstruction and Development (EBRD) says bad debts will top 10pc and may reach 20pc. The Vienna press said Bank Austria and its Italian owner Unicredit face a "monetary Stalingrad" in the East.

Mr Pröll tried to drum up support for his rescue package from EU finance ministers in Brussels last week. The idea was scotched by Germany's Peer Steinbrück. Not our problem, he said. We'll see about that.

Stephen Jen, currency chief at Morgan Stanley, said Eastern Europe has borrowed $1.7 trillion abroad, much on short-term maturities. It must repay – or roll over – $400bn this year, equal to a third of the region's GDP. Good luck. The credit window has slammed shut.

Not even Russia can easily cover the $500bn dollar debts of its oligarchs while oil remains near $33 a barrel. The budget is based on Urals crude at $95. Russia has bled 36pc of its foreign reserves since August defending the ruble.

"This is the largest run on a currency in history," said Mr Jen.

In Poland, 60pc of mortgages are in Swiss francs. The zloty has just halved against the franc. Hungary, the Balkans, the Baltics, and Ukraine are all suffering variants of this story. As an act of collective folly – by lenders and borrowers – it matches America's sub-prime debacle. There is a crucial difference, however. European banks are on the hook for both. US banks are not.

Almost all East bloc debts are owed to West Europe, especially Austrian, Swedish, Greek, Italian, and Belgian banks. En plus, Europeans account for an astonishing 74pc of the entire $4.9 trillion portfolio of loans to emerging markets.

They are five times more exposed to this latest bust than American or Japanese banks, and they are 50pc more leveraged (IMF data).

Spain is up to its neck in Latin America, which has belatedly joined the slump (Mexico's car output fell 51pc in January, and Brazil lost 650,000 jobs in one month). Britain and Switzerland are up to their necks in Asia.

Whether it takes months, or just weeks, the world is going to discover that Europe's financial system is sunk, and that there is no EU Federal Reserve yet ready to act as a lender of last resort or to flood the markets with emergency stimulus.