What is the meaning of the phrase "Faustian deal" in the following paragraph: "On the subject of Osama, he (Musharraf) is so slippery you want to lock him in a room with the muscle-bound Armitage," Dowd wrote. " The Pakistanis are at the heart of the Faustian deal the Bush administration has made. The justification for invading Iraq was that they couldn't allow a dictator who might be harbouring terrorists to stay in power. But their great ally in the war on terror is Musharraf, a dictator who appears to be harbouring terrorists, including the one we (Indians) want most."
Re: Faustian deal
The phrase 'Faustian deal' refers to the story of Dr Faustus who made a deal with the devil, whereby he would be rich and powerful in life - but the devil would take his soul when he died. The journalist is using the phrase here in a figurative sense: Bush is trading short-term gains for long-term losses.
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