Former Fed Chairman Arthur Burns said that, “A subtle understanding of economic change comes from a knowledge of history and large affairs, not from statistics or their processing alone.” So far as large affairs go, the recent events in Afghanistan could hardly be any larger.
On Sunday, 15 August Taliban fighters entered Kabul unopposed and Afghanistan’s president Ashraf Ghani fled the country. Two days later the acting Afghan central bank chief, Ajmal Ahmady did the same. The events took almost everyone by surprise and the foreign policy establishments in the U.S. and UK were extremely vexed about it all. The loss of Afghanistan was not just a small setback: the Empire’s ability to hang onto Afghanistan was the centerpiece of its Eurasia policy and the events we just witnessed will have very far-reaching repercussions. How important was Afghanistan? It was pivotal.