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"If the U.S. cuts off Pakistan, Musharaff goes and Pakistan becomes fundamentalist and belligerent, don't you think?
Do you think this will be good for the U.S. and India?"
Mush wont go if US cuts off pakistan. Mush wasnt installed by the US. He installed himself through a coup which incidently the US deplored at the time before 9/11 happened. After 9/11 the US made the folly of feeding the snake hoping to fix the problem against Indias better counsel and now the snake that Mush is.. knows that he needs to keep terrorism alive if he wants american money.
Right now the US policy is too carrot heavy. There is no stick. Show him the stick and once he realizes that International isolation aka saddam will follow unless the genuinely cleans up the country , you will see better results.
We know this very well in India. Also remember it was India that had warned the US about Pak's hand in terror all over this part of the world including afghanistan and the US ignored it to its peril before 9/11. US needs to open its eyes and see who its really allies (shared values) are.

Mush is.. knows that he needs to keep terrorism alive if he wants american money.

If the U.S. withdraws its support, Pakistan will likely become more belligerent and openly terrorist, with Mush or without. India will bear the brunt of this, possibly at a terrible cost although India will prevail.

It will be a real test of China's true nature, whether it will try to intercede on Pakistan's behalf.

The end result of an Indian victory would leave Pakistan governedless and chaotic. Only India would be in a position possibly to restore order, and probably through at least a de facto absorption of Pakistan.

There are many parallels in this scenario to the U.S. intervention in Iraq (the Devil you know vs. the devils you don't) and Israel (how do you remain a democracy with an emerging majority of hostile Moslems). It would be a difficult task for any country to handle, no less India. Doesn't India have a lot of internal rifts already?

As an Indophile, I am asking you to elaborate on the train of your thinking. It would be nice if the U.S. and India could be fully on board, but I might not be realistic in espousing that. For example, I'm not aware that India has been particularly supportive of the U.S. in Iraq.

US needs to open its eyes and see who its really allies (shared values) are.

Perhaps it is India too that needs to open its eyes and see who its real allies are, and openly declare its shared fundamental values with the U.S. Howze about it?