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Remember that a world leader with nukes does not have to kowtow to American interests. It is clear that Pervez was not exactly towing the line for the Cheney folks. I'm sure if I google Bhutto's recent comments there is a free-market angle to be found. She certainly did not represent the poor and destitute of Pakistan, that is for sure.
I also think that Bhutto's presence has generated a huge amount of instability and she was taken care of to REDUCE that. Ultimately the opposition needed her to rally around, to give it some kind of legitimacy and a tie to the "old days of Democracy" in Pakistan.
From what I've seen and recall from his takeover, Musharaf is really not some Hussein-esque dictator. He took over a corrupt country from a corrupt leader and the nukes probably had a lot to do with it. During his term Pakistan has largely avoided major war and skirmishes with India and other neighbors.
If you can look past the "democracy" red-herring it would appear that he's their most competent leader in a long time. I certainly had no hope that Bhutto's faction would do any better.
Remember that he managed to get over from that corrupt leader after the US ordered that corrupt leader to pull back troops in Kashmir which were provocatively pushed forward -- on Musharraf's rogue orders. *Lunatic*, n. One whose delusions are out of fashion.
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