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November 29, 2008
Terrorism Meets the Economy
Now that the shooting in Mumbai seems to have stopped and a shocked world begins to ponder both its significance and relationship to 9/11, a few things seem beyond dispute. One is that although separated by an interval of just over seven years and executed very differently, both were consistent with al Qaeda’s long term goals and will probably be seen by future historians as more important for their economic consequences than their body counts.In that connection, an item published in the New York Times on Thanksgiving day during the siege called attention to signs that the troubled US economy may be not be just headed for recession, but into a much more serious deflationary depression, a phenomenon not experienced since the Thirties and thought by many economists to have been banished permanently. By the way, for just a hint of the disarray among economists, just google "inflation vs deflation".
In a similar vein, two recent items looked at the consequences of Mumbai from quite different perspectives: one pointed out that although the Indian economy has been thriving recently, it is still fragile and beset with its own chronic problems. Another focused on cricket, an international sport of little interest to Americans (or Canadians) but cherished in other former colonies including Pakistan and India (both armed with nuclear weapons and already divided by long-standing tensions).
Details now emerging from India confirm that the terrorists were heavily armed, well informed, and had targeted westerners, especially Jews, remorselessly and efficiently . Among the more striking details are that Indian commandos being debriefed today found it prudent to cover their faces, a sign they think the risk of more such operations is real (and al Qaeda’ s strategy is working very well).
Oh, yes; as this was being composed, our prez, just back from his Thanksgiving at Camp David, emerged briefly from his helicopter to deliver his “sincere condolences” to the people of India.
Doctor Tom
Posted by tjeffo at November 29, 2008 06:59 PM