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...question is whether something could happen in 2007 to drain away this liquidity. For most investors and policymakers, the nightmare scenario remains that of the post-1929 Depression, when a stock-market crash was followed by a spectacular wave of bank failures and a massive monetary meltdown. However, by blaming the Hungry Thirties on blunders by the Federal Reserve, we reassure ourselves that history couldn't repeat itself. Today's central bankers are smarter. But history provides an example of another liquidity crisis that went far beyond what central banks could cope with. Until the last week of July...

Author: /time Magazine | Title: The Next Meltdown | 1/5/2007 | See Source »

...WHETHER YOU ARE AN optimist or a pessimist on the subject of Iraq. Kagan told TIME that U.S. troop force "should be down significantly" from what it is now--"enough to permit economic development, the recruiting and training of the Iraqi army, political development and reconciliation." Under this scenario, U.S. forces can turn to eradicating the insurgents full time once Baghdad is "stabilized." Not everyone buys this happy talk. "Are we assuming the insurgents don't get to vote on this?" asks a veteran of both the Iraqi and Vietnam wars. "I see more arrogance than ever, assuming once again...

Author: /time Magazine | Title: What a Surge Really Means | 1/4/2007 | See Source »

There is one other scenario to consider: it may be that Bush won't pull out of Iraq as long as he is President. Whether it works or not, a surge of 18 to 24 months would carry Bush to the virtual end of his term. After that, Iraq becomes someone else's problem. Bush's real exit strategy in Iraq may just be to exit the presidency first...

Author: /time Magazine | Title: What a Surge Really Means | 1/4/2007 | See Source »

...first scenario could be entitled Poor, Misunderstood, Rational North Korea: This narrative sees virtually everything the North has done since signing the so-called "Agreed Framework" nuclear deal with the Clinton Administration in 1994 as understandable - even predictable. Pyongyang signed away its plutonium reprocessing plant and in return was supposed to get a bunch of things in return, including diplomatic recognition from the United States, and two light water reactors for electric power generation from a U.S.-Japanese-South Korean?led consortium. But not much was delivered: The first of the reactors was supposed to have been finished...

Author: /time Magazine | Title: What North Korea Wants | 12/18/2006 | See Source »

...this scenario, the North will refuse to dismantle its plutonium program until the previously promised light-water reactors are actually constructed. The Bush Administration insists, by contrast, that Pyongyang must begin to dismantle the plutonium facilities "at an early stage...

Author: /time Magazine | Title: What North Korea Wants | 12/18/2006 | See Source »

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