This paper provides a forecast of the likely consequences of ongoing US military activity in Afghanistan, and assesses the implications of a change in the current US policy toward that nation. We use a game theoretic, bounded rationality model, called the Expected Utility model, to analyze the stability of the political and economic systems in Afghanistan, given both the domestic and international context. We undertook two analyses, one in December 2001 and a second in June 2002. Thus far all forecasts appear to be in line with our observations on the current sequence of events. Furthermore, we found that a continued, robust US military presence in Afghanistan is necessary to assure political and economic stability. Without continued, substantial US support for the current regime, it is likely that an Islamic dictatorship, with the potential to support terrorist activities, will replace the current semi-democratic system.