Pakistan Elections scheduled for May 11 will badly affect markets in US and India with war a possibility

The Washington Times reports today on how elections in Pakistan scheduled for next month pose a threat to the US drone program. What the article fails to report is that Pakistan analysts predict the centrist former prime minister Nawaz Shariff's PML-N will lead the polls with no party winning a majority of the seats although right wing parties look set to dominate. The resulting coalition government with the help of Pakistan's army generals will most likely take take a hard turn right and increase support for right wing extremists in their quest for greater control in neighboring Afghanistan as well as increase terrorism in Indian Kashmir.

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As reported by the Indian Express, Pakistan Army's SSG group was responsible for incursion into Indian Kashmir and beheading an Indian soldier. All these activities look set to increase exponentially post Pakistan's elections possibly leading to a re-involvement of the US or a war with India. Elections in India are scheduled for 2014 where a weakened national government is desperately seeking ways to boost its sagging popularity and a war with Pakistan may give the current coalition in India a much needed popularity boost in time for the 2014 elections. Unfortunately the victims of this geopolitical nightmare scenario are likely to be the general public and the stock markets in India and to some extent the US markets.