With the Taliban resurgent, reconstruction faltering, and opium poppy cultivation at an all-time high, Afghanistan is at risk of collapsing into chaos. If Washington wants to save the international effort there, it must increase its commitment to the area and rethink its strategy -- especially its approach to Pakistan, which continues to give sanctuary to insurgents on its tribal frontier.

The massive growth of hedge funds has sparked warnings of instability and demands that the industry be regulated. But the fear of hedge funds is overblown, based on a misunderstanding of their role in the international financial system. In reality, hedge funds do not increase risk; they manage it -- and policymakers, rather than clamping down, should make sure hedge funds have the tools to perform this function well.

Accurately assessing the rise of China is a critical task. Yet U.S. policymakers often overestimate China's military might. And if they continue to view China's power in substantially coercive terms when it is actually growing most rapidly in the economic and intellectual domains, they will be playing the wrong game, on the wrong Þeld, with the wrong team.