Huge, costly bailout by panicky U.S. of panicky Pakistan in the offing

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Stun Valley: Swat's ski resort, where Pakistanis played -- until the Taliban torched it.

Grimmest news this morning from Pakistan, where the U.S. will very soon launch a giant offensive against the Taliban there and in neighboring Afghanistan that will drain billions of dollars from our recession-fucked economy.

Here's how Agence France Presse describes what's happening in the aptly named Swat Valley:

Pakistan's northwest was on Sunday reeling from a wave of violence as the toll from a car bomb rose and the army hit Taliban hideouts in an offensive that has sent a million civilians fleeing. The number killed in a devastating car bomb that hit the northwestern city of Peshawar on Saturday reached 12 after a teenage boy died overnight, a police official said, while 36 people have been reported wounded in the attack. The blast ripped through a packed street, leaving severed body parts on the road near an ice cream shop and an Internet cafe.

Many of the tide of refugees fleeing a punishing three-week military offensive in swathes of the North West Frontier Province had taken refuge from the bombardment in Peshawar, the provincial capital.

In case you're wondering, the Swat Valley is not some anus mundi place like western Iraq. No, it's a verdant, Colorado-looking area that wealthy Pakistanis used to flock to for vacations and skiing.

Well, they used to go to Malam Jabba to ski. Until the Taliban torched it last June.

For a broader — and scarier — view, check out Ahmed Rashid's "Pakistan on the Brink" in the latest New York Review of Books. Frightening for Americans and probably costly in lives and money in the near future, as Rashid points out:

American officials are in a concealed state of panic, as I observed during a recent visit to Washington at the time when 17,000 additional troops were being dispatched to Afghanistan. The Obama administration unveiled its new Afghan strategy on March 27, only to discover that Pakistan is the much larger security challenge, while US options there are far more limited.

Highly unstable Pakistan, by the way, has between 60 and 100 nuclear weapons, Rashid notes, and a rapidly growing anti-American sentiment among the general populace. Never mind that the Taliban are gobbling chunks of Pakistan as we speak.