February 3, 2012

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Global Warming Engine Unexpectedly Slows

As the world suffers through a mix of weather (warm winter temperatures) in the continental US and climate (cold weather) in Alaska and Europe, some interesting new numbers are starting to trickle in.

Preliminary reports from the Energy Information Administration’s “Annual Energy Outlook” (which will be fully published in April) suggest that any carbon crisis may not be quite as imminent as thought. Not so long ago, the EIA predicted carbon emissions levels would rise by 37 percent between 2005 and 2035. The EIA — get this – now thinks that global CO2 emissions in 2025 will be 6 percent lower than they were in 2005.

Check the report for yourself, but to Via Meadia and others this looks like a serious reduction in the forecast of carbon emissions over the next couple decades. There are likely numerous reasons for the change; easier access to cleaner fuel sources like shale gas, the rising price of oil and cheapening of solar and wind are but several.

And there is one other thing that is clear: the people who put these forecasts together have no idea what they are doing.  This is one of the cases in which the use of the word forecast should be banned; these are guesses, not forecasts, and it’s a big deal.

The Chicken Littles of the green movement throw a lot of statistics, trends and projections together and claim the status of scientific truth for whatever big and scary numbers they can coax out of their statistical black box.  But even if the climate models are infallible or close to it and will need no more revisions as more information comes in (something that would be almost unique in the history of science) the economic models and projections that go into future CO2 level predictions are no better than any other economic models — which is to say they are almost no good at all.

To predict the amount of CO2 that human industry will be emitting in 2050, you need a figure for the world’s GDP by then.  That means you have to have long range forecasts for China, India, South Africa, Russia, Brazil, Germany, the US, Canada and many other countries. Nobody has any forecasts of the 50 year GDP growth of any of these countries that is worth anything at all, because economic forecasting doesn’t work that way.  (It hardly works at all, but certainly not on this long term basis.)

And then you have to forecast how much CO2 will be emitted per unit of GDP.  That involves forecasting the rate and nature of technological change, the state and composition of world energy reserves in thirty years, and many other things which simply cannot be known by anybody living today.

An astrologer would throw up his hands in dismay at this sloppy reasoning and hazy science.

The truth is that forecasts about greenhouse gas emissions are basically worthless.  These recent forecasts certainly were; the difference between 37 percent growth and 6 percent decline is 43 percent.  That is about the level of accuracy you could expect from a blind monkey throwing darts at a wall.

But without those worthless forecasts, climate math falls to the ground.  If we can’t predict the future level of greenhouse gas emissions, we can’t predict the future temperature of the earth — even assuming that our atmospheric models work perfectly and haven’t left anything out.

None of this suggests that we should ignore climate and energy issues, but it confirms my belief that climate activists tend to be bad logicians, and that the way forward has nothing to do with the cumbersome bureaucratic power grabs, crony capitalist porkfests (ethanol, Solyndra, high speed rail) and economic controls that misguided greens hope will save the planet.

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Rare Good News From the Treasury

News from the Treasury Department is rarely good these days. The latest news, however, should be welcomed by all: as the NYT reports, the department is rolling out a new set of rules that should make it easier for Americans to transfer money saved in 401k accounts to annuities that provide some insurance against running out of money in extreme old age.

The new rules make it cheaper and easier to buy annuities that kick in at a certain age — at 85, for example.  As the Times story puts it,

A white paper by the Council of Economic Advisors estimated, for example, that a 65-year-old would have to pay $277,500 for a $20,000-a-year annuity that started immediately, but only $35,200 for one that started at age 85.

Making it easier for retirees to take advantage of ideas like this will allow people to plan more efficiently for the ups and downs of retired life.  One of the biggest worries seniors have is the fear of outliving their money; cheap annuities that kick in late in life take the edge off this fear.

But don’t get too cocky.  Twenty years from now, $20,000 is likely to buy you half or less of what it can buy today.  Even with new help from the government, retirement planning remains a tough job.

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Afghan Forces to Defect to Taliban?

Asia Times is reporting today that, according to “well-placed sources in the Taliban”, large numbers of soldiers in the Afghan National Army and the Afghan National Police plan to defect to the Taliban after international forces pull out of the country.

The Taliban source claimed that leading commanders of both the ANA and the ANP had contacted Taliban leaders through tribal liaisons in southeastern, southwestern and northern Afghanistan and requested to join the Taliban unreservedly once the peace talks bore fruit and paved the way for the draw-down of foreign troops…

A top Tehrik-e-Taliban Pakistan (Pakistan Taliban) commander, Mullah Nazeer Ahmad, independently confirmed the Taliban claims of planned defections from the ANA and the ANP. His militants hold sway in the South Waziristan tribal area and across the border in Afghanistan’s Paktika, Zabul, Ghazni and Kandahar provinces.

These claims are unconfirmed and could easily be just talk. Yet, as Via Meadia has often warned, committing to a withdrawal deadline in the near future might make withdrawal harder and more expensive. The administration telegraphs its moves, and it isn’t helping.

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NY Times Romney Bashing Continues

First he was a robot programmed to accomplish the dark and devious theocratic schemes of the Mormon Church. Now they say Mitt Romney isn’t Mormon enough. The Grey Lady is knocking the former Governor for deviating from the LDS church’s position on immigration:

While Mitt Romney is taking a hard line on immigration even as the Republican primaries head toward the heavily Hispanic states of Nevada, Colorado and Arizona, the Mormon Church to which he belongs has become a decisive player in promoting policies that are decidedly more friendly toward immigrants…

[O]n immigration, the church actively lobbied [Utah] legislators, sent Presiding Bishop H. David Burton to attend the bill signing and issued a series of increasingly explicit statements in favor of allowing some illegal immigrants to stay in the country and work…

Mormons in Utah who back an accommodating approach to immigrants say they have been disturbed to see Mr. Romney align himself with his party’s anti-immigration flank and with Tea Party members.

For Romney, it seems, it’s damned if you do, damned if you don’t, with the Times (naturally) standing in for Divine Justice. Nowhere does the article draw the obvious inference that Romney clearly makes his political decisions — like them or not — independent of church teaching. It would not have been hard to find someone to make this self-evident point.

But instead, the Times cites anonymous “Mormon immigration advocates” who allude to the possibility that Romney is using this issue to fake independence from Mormon teaching. What better way to smuggle his devious theocratic agenda into the White House?

A modicum of self-awareness or fairness in the editing process would have caught and redressed the obvious bias of this piece, but apparently that’s not how the Times approaches political stories these days: any stick will do to beat the man who increasingly looks like the next Republican nominee.

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The Soft Coup Advances

Pakistan’s Supreme Court moved this week to indict Prime Minister Yousuf Raza Gilani on contempt of court charges. Gilani has said he will comply with the court’s final decision in the case. The charge stems from a disagreement over whether President Asif Ali Zardari can be tried for corruption in a case related to kickbacks he and his wife, the late Benazir Bhutto, allegedly received from a Swiss company in the 1990s. Gilani has so far refused to reopen the case against Zardari, citing presidential immunity.

This case against Zardari fits in with the Pakistani military leadership’s soft coup strategy—a tactic we noted recently in connection with the so-called Memogate scandal.

What really makes the civil-military clash dangerous is the fact that serious social problems are going unaddressed while Pakistani elites bicker about who should rule. Thousands, for instance, recently took to the streets in Rawalpindi, carrying banners in support of banned Islamist parties and portraits of Mumtaz Qadri, the killer of former Punjab governor Salmaan Taseer, as well as chanting slogans calling for all Ahmadis, a minority religious group, to leave Pakistan. Meanwhile, militants are launching attacks on the army in the lawless north.

A corrupt civilian government, a distracted judiciary, a misguided and stubborn military—no one seems ready to tackle Pakistan’s real problems and, sadly, that is nothing new.

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The Little Engine That Could

Could Paul Krugman possibly be wrong?  Could the US economy be actually recovering even though the Obama administration hasn’t taken Professor Krugman’s advice?

That is the heretical possibility suggested by the encouraging jobs news this morning; 243,000 new jobs and a further fall in the unemployment rate.

Other heretical thoughts: just possibly, the US economic model still works. In every recession there is talk of the failure of the “Anglo-Saxon” model and “cowboy capitalism.” In every serious recession, the world’s chattering classes amuse themselves by talking about the “challenge of state capitalism.”

Just possibly, recessions don’t last forever any more than booms do.

Many obstacles remain and the recovery is still vulnerable.  The world situation is grim.  There are long term problems and shifts still to be made.  But the US economy wants to grow again; that is this morning’s good news.

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Why Europe Can’t Fix Greece

Even the staunchest Eurocrats have to admit that the Greek intervention has been a disaster. Bailouts, debt write-downs, solemn agreements: nothing works and after two years of concentrated effort, Greece is still on the brink of default.  A strong piece in this morning’s NYT by Rachel Donadio explains a big part of the problem.

Look under the hood of the Greek government, and it’s easy to see why.  For decades — actually, centuries — government power in Greece (and in the Ottoman and Byzantine states that ruled what is now Greece in the past) has been feudal rather than modern.  It is about loyalties, obligations, patron-client relationships.

This nexus reflects the way society works. Political parties work this way; business has to work this system to survive.  Almost everyone in Greece benefits in some way from “connections” with the power machine, and without those connections, not much can get done.

The EU’s understandable and even laudable desire to help Greece reform is about trying to replace this tangled and deeply nested system with something modern: transparent institutions in which people do things by the rules. The technocrats in Brussels and Frankfurt want to rip the old system up by the roots because they know how inefficient and costly the current system is.

But this is a social and cultural revolution, not an economic reform.  Those revolutions must come from within; societies change deeply when they want to, not when foreign bankers put conditions on bailout agreements.  As Donadio’s story puts it:

In Greece, the government of the technocratic prime minister, Lucas Papademos, is proving powerless to transform an inefficient public administration that has long served as a power base for the same political leaders — including most of the current government’s ministers — who are now being asked to dismantle it.

It is a formula for gridlock that virtually guarantees, political and financial experts say, that the Greek government will never carry out the kind of basic changes that are being demanded of it.

Correct. The structures that make Greece work reflect powerful forces and assumptions at work in Greek society, and they can’t be changed quickly.  In some cases, they can’t be changed at all.

Donadio is pointing to a theme I wrote about in God and Gold.  The laws of economics may be true everywhere, but culture shapes the way people respond to these laws.  Culture changes over time — China’s response to capitalism is very different than it was in the nineteenth century — but these changes come in their own way and in their own time.  They cannot be whistled for, or imposed by decree.

It is hard to say whether one culture is more moral or ‘better’ than another in an absolute sense, but nothing is more clear than that some cultures are more effective than others when it comes to capitalism. Greek culture is an ancient and venerable edifice that has seen the Greek people through difficult times; it is, however, not very good at developing the kinds of institutional and market arrangements required for success in an era of competitive liberal capitalism.

The mismatch between the strengths of Greek culture and the requirements for capitalist success isn’t absolute; ask the Greek shipping magnates. But on the whole, countries like Greece don’t thrive under capitalism the way countries like Germany and the Netherlands do.  Other countries — think of Russia, Argentina and Egypt — have similar problems.

Greeks can’t — and shouldn’t — stop being Greek simply to make themselves more effective capitalist competitors.  They need to find new ways of being Greek that work better in a liberal capitalist world, but they need to do that at their own pace, not at one dictated by the ECB and the IMF.

Technocrats everywhere like to ignore the importance of culture in human affairs. Europe today is learning just how painful and expensive it is when culture isn’t given its due.  More lessons are coming.

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Worried India Shifts Defense Focus To China

India is turning away from its long preoccupation with declining Pakistan as rising Chinese power sets alarm bells ringing in Delhi.  That at least is the message of this important Reuters review of India’s changing defense posture.

In Reuters’ words:

Defence chiefs are hurrying to modernise ageing weaponry as China reinforces a 3,500-km (2,200-mile) shared but disputed border through the Himalayas.

It took 11 years to select France’s Rafale as the favoured candidate for a $15 billion splurge on 126 new combat jets to replace a Soviet-era fleet of MiGs dubbed “flying coffins” for their high crash rate.

At the same time, feeling encircled as China projects its fast-growing naval power from Hormuz to Malacca, India is rushing to firm up friendships the length and breadth of the Indian Ocean.

India is the world’s largest arms importer with plans to spend $100 billion on weapons over the next decade.

India’s air force, army and navy all face fundamental changes as the country seeks to cope with the ambitious modernization and rapid growth of China’s military might. The effort is putting an immense strain on the cumbersome bureaucracy (with more than a whiff of corruption) behind the Indian armed forces and there are those who think India can’t manage the complexities of overhauling, modernizing and expanding three service branches at once.

But the fear of China leaves little choice. India lost a 1962 war with China over disputed border territories and fears that a repeat conflict would have a similar or even worse result.  Part of what is happening is a massive attempt to rebuild and strengthen border fortifications in the northeast, where Indian territory borders on China — and where the boundaries are in dispute.

But longer term, the naval contest is likely to get more attention.  China’s interest in protecting its access to the Middle East and projecting power at sea to counter the US threatens India’s sense of security in the Indian Ocean. To address the consequences of China’s growing presence in the region, India is building up forces and developing deeper ties with like minded neighbors.

Again, from Reuters:

The relationship between India and China is complex, involving as much cooperation as competition. But while the generals and admirals rarely say as much publicly, India fears a repeat of a brief, humiliating 1962 border war and wants to be prepared for surprises.

Seafaring officers from 14 countries from New Zealand to the Seychelles have gathered on remote Indian islands in the Bay of Bengal this week for exercises and a “meeting of minds” about maritime security.

It is one of the largest such gatherings of maritime allies that India has organised, but China and Pakistan were conspicuously not on the guest list.

This meeting will not go unnoticed in Beijing and Islamabad. History is unfolding before our eyes.

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February 2, 2012

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Mafia Politics in India

“In Indian politics”, writes Dan Morrison in the NYT‘s Latitude blog, “crime pays.” In Uttar Pradesh at least, that seems to be the case. Politics there is permeated by crime; 139 of 404 legislators in the current state government face criminal charges, including murder.

Thirteen of the ruling party’s legislators are accused of murder. Others have served time for mafia-related crimes as well as rape, murder, and abduction.

Consider the story of Brijesh Singh, currently in jail in Ahmedabad. Mr. Singh allegedly ran a gang of contract killers and is charged with over forty crimes, including the murder of 13 people in 1994. He is running for a seat in the state assembly.

Or this:

The next most dreaded criminal is Om Prakash alias Munna Bajrangi. Lodged in Tihar Jail for alleged involvement in the murder of over 40 people, as well as abduction, he is a candidate of Apna Dal [a political party] from Madiyahun in Jaunpur…

He had allegedly murdered BJP [a rival party] leaders Anil Rai, in 1993, and Ramchandra Singh, in 1996. A sharp-shooter and contract killer, Bajrangi is also accused in the murder of BJP MLA Krishnand Rai and his seven bodyguards.

The worlds of politics and crime are blurred in Uttar Pradesh. Dozens of politicians are described by the Indian press as “dons.” Many have served time or operate in politics despite outstanding criminal charges. At least ten convicted politicians are running for assembly seats from jail. Prison sentences are often short, and even then convicts find a way to stay involved in politics: one of Mr. Singh’s rivals was granted “temporary parole” so he could return home in time for his political campaign. “It’s very tribal,” a veteran politician told the NYT. “People are voting for someone to protect them. Not to lead them — that’s something different. They want protection.”

Uttar Pradesh is India’s most populated state. If it were its own country, it would be the fifth-most populous nation in the world, ahead of Brazil, which has thirty-five times the space. Politics here reverberates nationally. The Samajwadi Party in Uttar Pradesh is the state’s second-biggest party and is aligned to Prime Minister Manmohan Singh’s Congress Party in Delhi. Samajwadi has fielded 28 candidates in state elections who are “tainted” by crimes. It’s worth mentioning that if Samajwadi were to turn the tables on Uttar Pradesh’s ruling Bahujan Samaj Party it would strengthen the PM’s position ahead of national elections in 2014.

This, we may safely say, is not what Gandhi had in mind. India’s democracy is real, but it is also really messed up. As America’s strategic interests become ever more tightly linked up with India’s, we are going to have to get to know our new partner, and some of what we discover will be unsettling.

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Hamas Rises, Fatah Sinks (and Palestinians Still Suffer)

As we’ve reported, Hamas is on the move, ditching its beleaguered Shi’a friends (Iran, Syria and Hezbollah) and getting courted by Sunni powers. But if the sun is rising on Hamas, it is setting on Fatah.

Fatah’s struggles stem from decades of failure. It hasn’t built the institutions necessary for Palestinian statehood, hasn’t won concessions from Israel, hasn’t found a way to end its debilitating infighting, and hasn’t proven anywhere near as adroit as Hamas at seeking new sources of funding from Turkey, the Gulf, and newly empowered Islamists in Egypt and Tunisia.

Yet for all of Hamas’s success and Fatah’s failures, neither have had much success in the leadership role. Fatah (at least for now) remains the key to securing Western assistance. Many donor nations will not deal with Hamas, which is still designated a terrorist organization for its refusal to reject armed struggle against Israel. Popular disillusionment with Hamas may also be setting in: A recent poll put its support at 29 percent, down from 44 percent in 2006. Neither Fatah nor Hamas can agree on a timeline for new elections, and they continue to postpone discussion about who should succeed Mahmoud Abbas. To complicate matters, Hamas Political Bureau Chairman Khaled Meshaal, “widely seen as the Islamist movement’s most powerful political figure” and a leading proponent of Hamas-Fatah reconciliation, announced his resignation this week.

The fruits of these leadership failures were recently captured in a NYT piece on the Palestinians’ economic and political woes:

The more common view in the West Bank is that with Israel fully controlling about 60 percent of West Bank land as well as the borders, Israel or the donor nations should pay for economic failures, and the Palestinian people should not have to shoulder the cost.

“Once we are independent,” said Mr. [Ahmed] Awaida of the [Palestinian] stock exchange, “we will not need a penny from anyone.”

That attitude, justified or not, will never build a state.

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While Declinists Groan, America’s Factories Hum

Predictions of imminent American decline are looking shakier by the day. A new report cited in the Wall Street Journal finds that manufacturing has expanded dramatically over the past month and looks set to continue. Fears that the U.S. could never compete with low-cost competition in Asia or the high-end products of Europe are overblown. For all its problems, there are still plenty of signs of life in American industry.

None of this should come as a surprise. Americans’ deep and abiding attraction to newness, change, and innovation have long been one of this country’s strong suits. The drive to improvise, adapt, and overcome, to borrow a favorite slogan from the U.S. Marine Corps, has allowed America to weather centuries of global strife, emerging stronger and more prosperous after the winds cease to blow. These qualities haven’t gone anywhere, and the world itself isn’t slowing down any to let the laggards catch up. Good.

America’s pains are growing pains, not the pangs of dissolution and decay.

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Brazil Sidelines Chavez, Plans for Post-Castro Cuba

After the Castros, what comes next? Under President Dilma Rousseff, Brazil is taking a special interest in that question, as evidenced by her decision to invest $680 million of Brazil’s money in the rehabilitation of the Cuban port at Mariel. Besides its interest in shoring up its leadership in Latin America and having a friendly, eventually democratic, ally in Cuba, Brazil also hopes by generous aid packages like this one to sideline fringe players like Venezuelan President Hugo Chavez.

Brazil’s last president, Lula, was averse to criticizing the Castros on human rights, but Rousseff, a former Marxist militant who was herself a torture victim under Brazil’s military dictatorship in the 1970s, will likely be a more forceful advocate for these issue behind the scenes. She also has the ability to provide Raul Castro with key backing as he pursues modernizing reforms.

Easing Cuba’s transition into the post-Castro future is a worthy goal for Brazil, and a common interest for the whole region—America included.

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Peace Now From the Pentagon

War appears imminent. At least that’s the impression gleaned from this week’s press blitz on Iran.  In the State of the Union address, Obama said he would “take no options off the table to achieve” the goal of halting Iran’s alleged nuclear weapons program. A congressional testimony on Tuesday concluded that Iran has “crossed a threshold in its adversarial relationship with the US.” Finally, Secretary Panetta let slip the cryptic statement, “If we have to do it, we will do it.”

Although most of the Obama administration appears in lock step, there are hints of opposition. In an interview with the National Journal, the Chairman of the Joint Chiefs said of Iran, “I just think that it’s premature to be deciding that the economic and diplomatic approach is inadequate.”  Martin Dempsey’s remark subtly contradicts the administration, and echoes comments from Admiral Fallon in 2007, when he said of Iran, “”This constant drumbeat of conflict…is not helpful and not useful. I expect that there will be no war, and that is what we ought to be working for.”

Fallon’s utterance caused such a “perception of policy differences” with the executive branch that Fallon retired early. The situation today is somewhat different; few in the Obama administration are itching for another war in the Middle East, but the White House is as worried about Israeli recklessness as about Iranian recalcitrance. Militant war talk from Washington worries Iran and calms Israel: exactly what the White House wants.

Any White House ire at Dempsey will be about appearance, not substance.  Israeli hawks are scanning the news flow for clues about whether Israel can count on the US or whether it must act on its own. They will worry that Dempsey’s remarks could bring about exactly the kind of confrontation he — and they — would like to prevent.

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Camilla Williams Passes Away

ed egli alquanto in pena
chiamerà, chiamerà:
‘Piccina mogliettina,
olezzo di verbena’
i nomi che mi dava al suo venire

In 1946, Camilla Williams sang those words of longing and woe. It was her debut at the New York City Opera, and she delivered the lead in Puccini’s “Madama Butterfly” with what the New York Times described as “a vividness and subtlety unmatched by any other artist who has assayed the part here in many a year.” It was not only her portrayal of Cio-Cio San that proved noteworthy—Williams was the first African-American to sing for a major American opera company, nine years before Marian Anderson’s celebrated performance as the first African-American singer to appear at the Metropolitan Opera.

Four days ago, America lost Williams. Her passing came just before African-American history month 2012 was set to begin. In a society still struggling with trenchant legacies of racism, it is unique to remember a historical step toward equality through what became Williams’ signature role as Cio-Cio San. Puccini turned the typical operatic tragedy on its head by telling the tale of a 15-year-old Japanese girl who is seduced and abandoned by a handsome American naval officer, ultimately committing suicide. Though an opera’s plot is often considered its weakest point, one can hardly ignore the cultural and historical resonance of Williams mastering that role at the time that she did. Before retiring from the stage in 1971, Williams went on to many more performances, and sang for the civil rights movement’s 1963 march on Washington. “Madama Butterfly” is now the most popular opera in the US.

Her memory remains important because of the contribution she made to breaking racial barriers in American performance art. Today, race is largely no longer a barrier in opera or in entertainment generally, and America is a richer and more vibrant society because of it. As we celebrate African-American history month, we should remember the debt owed to pioneers like Camilla Williams.

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Panetta: US Combat Role To End in 2013

The announcement by the US defense secretary that US troops will no longer take a lead role in Afghan combat before the end of 2013 stunned the Afghan government in Kabul but will probably please voters in the US.  It largely cuts the ground out from under the feet of negotiators; the Taliban cannot have much incentive to negotiate vital interests with a power so obviously bent on escape.

The move probably reflects several ideas that seem uppermost in Washington’s mind.  First, that the war cannot be won at a price the US would be well-advised to pay.  The Taliban cannot be destroyed on the battlefield as long as it has ISI backing and Washington cannot force the Taliban’s friends in Islamabad to stop supporting the group.  Second, that the Kabul government is a hopeless mess and will only stir itself when faced with the loss of its military support by the west — and maybe not even then.  Third, that the US has had enough success in breaking up Al Qaeda’s operations, and through drone strikes and other means, of attacking Al Qaeda’s remaining supporters in the region that protecting the homeland from Al Qaeda no longer requires a US war role in Afghanistan.

It will be hard for the US military to fight this assessment, even though many remain more optimistic than the White House. Public opinion has long been cool toward the Afghan war, and the death of bin Laden (rather than the construction of a stable and at least quasi-democratic Afghanistan) was the primary goal in the region that most Americans wanted achieved.  With bin Laden gone and Al Qaeda in disarray, it is hard to make a strong political case for further US involvement in the war.

Washington probably also hopes that others in the region — India, Russia, Iran, China — who do not want the Taliban back in Kabul for various reasons will concentrate on helping the current Kabul government develop a survival strategy. In any case, after concluding that there are no longer any great national interests tying the US to the future of Afghanistan, the Obama administration is moving to liquidate the war.

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