Archive for September, 2009

NATO, Afghan Troops initiates Major Offensive

The U.S. military says more than 1,000 NATO troops, mostly from the United States, have launched a new offensive against a key Taliban stronghold in southern Afghanistan.

Military officials say Afghan forces also are participating in the operation (known as “Cobra’s Anger”) in the Now Zad valley of Helmand province, which is aimed at clearing insurgents, and locating roadside bombs and other explosives.

The provincial governor’s spokesman (Daud Ahmadi) told reporters four Taliban militants were killed in fighting, and hundreds of landmines and explosives were seized Friday.

Now Zad was once the second biggest town in Helmand, but is now nearly empty, after residents fled ongoing violence.  Taliban forces now use the area to transport drugs, weapons and fighters.

In an interview with the Associated Press, U.S. Central Command Chief General David Petraeus said Friday the offensive lays the groundwork for the arrival of some 30,000 additional U.S. troops, many of whom will be deployed in the south.

General Petraeus says the military has been working for months to extend security around key towns in southern Afghanistan, where the Taliban influence is strong.

President Barack Obama announced the additional U.S. forces this week, saying they will help accelerate the transfer of security responsibility to Afghan forces and allow U.S. forces to begin leaving the country by July 2011.

Helmand province produces the largest share of Afghanistan’s opium crop, which supplies 90 percent of the world’s heroin.

The illicit drug trade provides a key source of revenue for Taliban insurgents.

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Inflation 2009

While the recession may be over, the U.S. economy still doesn’t seem to be out of the woods. The stock market continues to be volatile, lender CIT Group recently filed for the nation’s fifth-largest bankruptcy, and unemployment remains stubbornly high.

So could this nascent recovery still be blown off course? We asked five money managers and financial gurus to share their worst-case scenarios for the market and the economy. From runaway inflation to sky-high deficits that force the government to slash Social Security and Medicare, we found five fears that still keep the experts up at night.

Not to suggest that these scary scenarios ought to make you hit the panic button. Just consider it a stress test for your portfolio: Are you diversified enough to provide protection if the market goes south, or are you betting the farm on a best-case scenario? Inflation is a recurring theme in our experts’ nightmares; you can hedge that risk by owning inflation-protected securities and boosting your exposure to international markets. That way, you should be able to get a decent night’s sleep no matter what happens.

1. Runaway Inflation

2. Stagflation

3. Crippling Government Debt

4. A 10-Year Japanese-Style Recession

5. The Dollar Collapses