All is Well in Iraq? The Powder Keg in Pakistan

Despite reassurances from the administration that the "War on Terror" is going well, there are numerous reports to the contrary. While the situation maybe improving in Iraq, rest assured that there will be no major US troop withdrawls from the Mid East anytime soon.

The Taliban is emboldened in Afghanistan and now Pakistan appears to be on the verge of disintegrating into if not a full civil war at least a much much more dangerous place. The US friendly president was targeted at the Marriott in Islamabad which killed over 50 people.

http://iht.com/articles/2008/09/22/asia/23pstan-bomb.php

We should remember that despite the Bush administration's constant warnings about Iran, Pakistan is already a nuclear armed state.

We do not envy President Zardari one bit. He is caught between his patron, the US government and his own people. US missiles falling into Pakistan are not making us any friends in the region, rest assured.

http://iht.com/articles/2008/09/22/asia/pakistan.php

Most investors including Wall Street's "high priests" are utterly oblivious to history and geopolitics, as such subjects are not taught in MBA school. Therefore we do not expect analysts, fund managers, and other assorted charlatans that last studied said subjects in History of Western Civ 1 or Poly Sci 101 to have any idea about the implications.

We will draw them for you: higher budget deficits, a never ending war, more destruction of capital, and a front which is destined to draw US ground troops into Pakistan. of course expect that such adventures will paid for in only one way, by higher taxes and more money printing.

This is why we own selected energy and precious metal shares.