Saturday, December 27, 2008

CIA warns of nuclear war in subcontinent between India and Pakistan.

CIA warns of nuclear war in subcontinent

The Central Intelligence Agency (CIA) has warned the Bush administration of a possible nuclear war between India and Pakistan.

The turmoil in Afghanistan and Pakistan could spill over into Jammu & Kashmir, prompting Indian leaders to take aggressive and retaliatory action, according to the CIA.

In assessing the security situation in the region, a CIA report observed: "Continued turmoil in Afghanistan and Pakistan will spill over into Kashmir and other areas of the subcontinent, prompting Indian leaders to take more aggressive preemptive and retaliatory actions...

"India's conventional military advantage over Pakistan will widen as a result of New Delhi's superior economic position… Changing military capabilities will be prominent among the factors that determine the risk of war."

The report, titled Global Trends 2015, which is now available with Pakistan's interior affairs ministry, further observed: "India most likely will expand the size of its nuclear-capable force. Islamabad has publicly claimed that the number of nuclear weapons/missiles it deploys will be independent of the size of India's arsenal. But a noticeable increase in the size of the Indian arsenal will prompt Pakistan to further increase the size of its arsenal."

On Pakistan's economic woes, the CIA said: "Pakistan will not recover easily from
the devastating PNAC CIA2/MOSSAD/MI6 odious assassination of Benazir Bhutto and decades of political and economic mismanagement...and the subsequent forced resignation of Perwez Musharraf by CIA and the infamous White House Murder Inc, Nascent democratic reforms will produce little change in the face of opposition from an entrenched political elite and Islamic parties...."

Someone on this site recently referred to the BBC documentary shown below. It took a while, but I finally found the links for viewing it. I watched it last night, and (for me) it was well worth the time.

The Power of Nightmares

(**)The Power of Nightmares, subtitled The Rise of the Politics of Fear, is a BBC documentary film series, written and produced by Adam Curtis. Its three one-hour parts consist mostly of a montage of archive footage with Curtis's narration. The series was first broadcast in the United Kingdom in late 2004 and has subsequently been broadcast in multiple countries and shown in several film festivals, including the 2005 Cannes Film Festival.

The films compare the rise of the Neo-Conservative movement in the United States and the radical Islamist movement, making comparisons on their origins and claiming similarities between the two. More controversially, it argues that the threat of radical Islamism as a massive, sinister organized force of destruction, specifically in the form of al-Qaeda, is a myth perpetrated by politicians in many countries (and particularly American Neo-Conservatives) in an attempt to unite and inspire their people following the failure of earlier, more Utopian ideologies.......
IN THREE PARTS (1 hr. each)



I have been referring to THE POWER OF NIGHTMARES for years now, on many sites, including this one, many times.

It really explains a great deal, Terrorizing the People into Losing Their Rights by way of USA-PATRIOT Act, and other means by the Powers that Want to Rule the World.
Israel is waiting for the weather to clear, so they can launch an assault on Gaza, and a possible re-occupation. Whenever the Zionists engage in mass-slaughter, they like to have something happening elsewhere to divert the worlds attention. India vs Pakistan would be a diversion, possibly a nuclear one, which would suit the Zionists state just fine. Could that be what the Mumbai attack was a prelude to?

India awaits "green light":
Part 3: Making It on Its Own


Constrained by its geography since its inception in 1947, Pakistan has found it virtually impossible to develop a strong economy, so it has had to think outside the box. One effective strategy has been to leverage the political and security aspects of its geography, posed by the confluence of countries and cultures in the region. This mix of Iran, India, Afghanistan, Shiite Islam, Sunni Islam and Hinduism has meant that powers beyond Pakistan’s immediate frontiers have had a vested interest in its survival. But this could be changing as the world moves away from Pakistan and as it moves closer to its day of reckoning as a functioning nation-state.


Editor’s Note: This is the third part of a series on Pakistan.

Very few developing states boast strong economies. Even those that do, such as Brazil, suffer from a host of problems, including insufficient infrastructure and technical personnel, high levels of corruption, shallow local capital markets, currency risk and overdependence on commodities. Pakistan suffers from all of these ailments — and more, as we have discussed in earlier installments of this series.

As we look at the economic factors contributing to Pakistan’s problems, we will first evaluate the Pakistani economy on its merits (or lack thereof). Then we will explain how things are just about as good as they can possibly get.

Security, Debt and Deficit

Pakistan historically has been an economically weak, mismanaged and corrupt state. The Pakistani military elite, deeply entrenched in the economy, holds much of the country’s wealth as well as a number of key assets in the corporate and real estate sectors. The agricultural industry remains the country’s economic backbone, employing some 44 percent of the population, yet accounting for only 21 percent of Pakistan’s gross domestic product (GDP). The remainder of the GDP comes from services (53 percent) and industry (27 percent).

Pakistan’s most fundamental economic problem is that it has very few natural resources to tap in the first place. And it is not necessarily a matter of lacking the resources; security issues in the country’s northwest have long constrained even basic exploration in much of the country, going back to times that predate the British colonial experience. In order to industrialize, therefore, Pakistan has been forced to import whatever materials it needs without first being able to establish a source of income. The unavoidable results are high debt and a sustained, massive trade deficit. As of 2008, the country’s national debt was more than 60 percent of GDP, and the trade deficit about 9.3 percent of GDP.

Even agriculture, the cash cow of many developed states, is a bit of a no-go for the Pakistanis. The Indus River Valley might be productive — indeed, Pakistan has leveraged it to become the 11th-largest producer of wheat — but the country remains a net importer of foodstuffs largely due to the a burgeoning population of 168 million. Though Pakistan is the fifth-largest exporter of rice and 14th-largest exporter of cotton, floods and pest pressure over the past year have hit rice and cotton production hard, with the growth rate last reported by the agricultural sector (for fiscal year 2008) at a dismal 1.5 percent.

The bulk of Pakistan’s exports come from low-value-added products such as textiles and chemicals, but the relative income from such sources has been declining for three decades and is somewhat in danger of disappearing altogether. Pakistan used to enjoy access to the broad Commonwealth market, but starting in 1973, when the United Kingdom joined the European Economic Community (EEC, a predecessor to the European Union), that market evaporated, forcing Pakistan to compete internationally on its own merits. And now that textiles are subject to the full/normal trading rules of the World Trade Organization, Pakistan lacks much of a competitive advantage. China, Bangladesh and India can regularly produce textiles at lower cost. In fact, the only true growth industry in Pakistan is its near-monopoly on fuel supply to NATO forces in Afghanistan. Aside from refining, nearly all of Pakistan’s economic sectors face massive challenges at best, and are flirting with collapse at worst.

The net result is not only a low level of development (with the notable exception of Karachi, the center for Pakistan’s international trade, and Lahore, the country’s agricultural capital), but also a chronic lack of capital to invest in the sorts of projects, such as infrastructure, education and finance, that could enable Pakistan to make true economic progress. Pakistan’s only substantial source of capital comes from abroad, and access to that capital is dependent upon factors such as currency rates, the global economic situation and the price of oil — factors that remain firmly beyond Islamabad’s influence.

And the need for new sources of capital is now greater than ever. In recent years, Pakistan has witnessed a collapse of its infrastructure, with power outages of up to six hours a day across the country. The 2008 spikes in energy and food prices almost bankrupted the state. In the year to date, Pakistan’s food bill has jumped by 46 percent over 2007 figures, and its oil bill by 56 percent. Simultaneously, the deteriorating security environment has manifested itself in major cities in the form of suicide bombings — Islamabad, Lahore and Karachi have not proved immune — and has done an excellent job of chasing away foreign and even domestic investors. Foreign direct investment (FDI) per capita in Pakistan has plunged to a barely noticeable US$32 per year. (By comparison, sub-Saharan Africa’s per capita FDI is US$50 per year.)

Pakistan is holding the line only by spending money that it does not have to spare. What social stability that remains can largely be credited to food and energy subsidies, which have contributed to an annual inflation rate of more than 25 percent. The costs of those subsidies, along with ongoing military deployments, have landed the budget in deficit to the tune of 7.4 percent of GDP, among the world’s highest. Recent spending has reduced Pakistan’s foreign currency reserves by 75 percent in the course of one year to US$3.45 billion. This is only enough to cover one month of imports, bringing the country dangerously close to defaulting on its debts. Though it has seen some respite in the form of sharply declining oil prices, Pakistan’s ability to finance the debt through bond issues has effectively ended; during a credit crisis, few investors want to lend to well-managed countries, much less a badly run country like Pakistan.

The Economic Limits of Geography

What truly sets Pakistan apart from other countries in terms of economic performance is a geography that greatly curtails its economic opportunities. Of Pakistan’s cities, only Karachi remains globally competitive by most measures. Karachi is the country’s only real port and has easy access to major trade lanes. Moving north along the Indus Valley, one becomes tightly hemmed in by marshes and deserts to the east and arid highlands to the west. The result is that Karachi functions as a city-state unto itself, with the bulk of Pakistan’s population found much farther upstream, where the Indus Valley widens.

The upper Indus is where the country’s best infrastructure is located and where any deep, integrated development might take place. But such development is impossible for three reasons. First, the region’s high population has required extensive irrigation, which has drawn down the Indus’ water level, making it unnavigable by any but the smallest of ships. The upper Indus region is, in effect, cut off from Karachi except by far more expensive rail or road transport. Second, the upper Indus’ natural market and trading partner is none other than India. Indian-Pakistani hostility denies the region the chance for progress. Finally, what water the Indus does have is not under Pakistan’s control; the headwaters of not just the Indus but nearly all of its major tributaries lie not in Pakistan, but in Indian-controlled territory. India is damming up those rivers, both to generate electricity and to further tilt the balance of power away from Pakistan.

The remainder of Pakistan’s population is split off (or perhaps more accurately, sequestered) into the mountainous region of the North-West Frontier Province and Federally Administered Tribal Areas, a region that is simply too remote to justify developing under normal circumstances. With the notable exception of Karachi, economic development in Pakistan is virtually impossible without the country somehow getting past its conflict with India.

Thus, the question must be asked: How is Pakistan able to survive? Economic development has been nearly impossible since partition from India, and certainly since the United Kingdom joined the EEC. The answer, put simply, is that Islamabad has been very creative. What Pakistan has succeeded in doing is leveraging the political and security aspects of its geography in order to keep its system going. Just as geography has been Pakistan’s curse, to a great degree it also has become its lifeline. Pakistan sits at the intersection of many regions, countries and cultures, including Iran, India, Afghanistan, Shiite Islam, Sunni Islam and Hinduism. This mix makes ruling Pakistan a major headache on the best of days, but it also means that powers beyond Pakistan’s immediate frontiers have a vested interest in seeing Pakistan not fail.

British diplomatic and economic support has maintained the Pakistani-Indian balance of power. All manner of Chinese support, including the sharing of nuclear technology, has strengthened Pakistan against a far superior India. Economic and energy support from Arabs of the Persian Gulf has lent strength to Pakistan when it seemed that India would overwhelm it. And support from the United States, which proved critical in backing the Pakistanis against the Soviet-leaning Indians during the Cold War, continues today in exchange for Pakistan’s support in the war against militant Islamism.

Islamabad’s success in leveraging its geography means that the country has not had to succeed economically on its merits for decades. Put another way, Pakistan has leveraged its geopolitical position not only to push for softer security policies from the United States or India, but also to pay the bills.

This has certainly been replicated in current times. None other than U.S. Central Command chief Gen. David Petraeus was reported to have personally intervened with the International Monetary Fund (IMF) to ensure that Pakistan received a US$7.6 billion loan in November, a loan for which Pakistan certainly did not qualify. Saudi Arabia and the United Arab Emirates chipped in another US$2 billion in credit, while China contributed US$500 million and the Asian Development Bank provided another US$300 million — all in the past few weeks.

While these funds certainly will delay Pakistan’s day of reckoning, they are unlikely to prevent it. Pakistan’s economy is flirting with becoming nonfunctional, and it cannot operate in the black any more. Doing that would at a minimum require slashing military and subsidy expenditures, an impossible move for a socially seething country operating on a war footing (and, incidentally, a move the IMF loan supposedly will require).

But the real danger is that the world is shifting away from Pakistan, and with that shift, Pakistan’s ability to leverage its geography diminishes. The United States views Pakistan to be as much part of the problem of the Afghan insurgency as it is part of the solution. Oil prices have dropped by US$100 a barrel in less than five months, drastically limiting the Gulf Arabs’ ability to dole out cash. China has many concerns, and fighting Islamist extremism that has leaked into its own western provinces is something Beijing is now weighing against its commitment to Pakistan. The result might not prove to be a total cutoff of funds, but a slackening of support certainly seems to be in the offing. And without such outside support, Pakistan will have to make it or break it on its own — something it has never proved capable of doing.