US begins building treaty-breaching germ war defence centre
..the centre will have to produce and stockpile the world's most lethal bacteria and viruses, which is forbidden by the 1972 Biological and Toxin Weapons Convention. Three years before that treaty was agreed, President Richard Nixon halted the production of US biological weapons at Fort Detrick in Maryland. The same military base is the site for the new $128m (£70m), 160,000 sq ft laboratory.

Quick Overview

• The Chicago Purchasing Managers' Index increased from 56.5 to 57.9 in July, stronger than expected.
  
  
  

• Retail sales in Germany rose 1.9% in June
  
  

• Canada's GDP was up 2.6% YoY.
  

• Japan's June industrial production rose 1.9% MoM, which was stronger than the market consensus of 1.3%
  

• Euro zone confidence rose to a 5-year high in July.
  

• Dow Jones Newswires estimated that China will import one million tons and India will import four million tons of wheat in 2006-2007.
  

• The Chinese Yuan extended its move to post a new 12-1/2 year high at 7.9650 Yuan / dollar.

The Peculiar Disappearance of the War in Iraq
As America fell into the quagmire of Vietnam, the comedian Milton Berle joked that the fastest way to end the war would be to put it on the last-place network, ABC, where it was certain to be canceled. Berle's gallows humor lives on in the quagmire in Iraq. Americans want this war canceled too, and first- and last-place networks alike are more than happy to oblige.

Cheney-Specter bill: a blank check for spying
Cheney-Specter bill: a blank check for spying
The so-called "compromise" legislation makes a mockery of the nation's historic separation of powers

Welcome To My Parlor
by William S. Lind
Operationally, Hezbollah’s rocket attacks on Israel are the matador’s cape. That too is working. What of the strategic level? The Arab street is cheering for Hezbollah, often across the Sunni-Shiite divide, while the governments of states such as Egypt hide under the bed. The goal of Islamic Fourth Generation forces is the destruction of most, if not all, Arab state governments, so Hezbollah is winning strategically as well. One can almost watch the legitimacy drain away from the region’s decrepit states, with incalculable consequences for American interests.
Not that Washington is doing anything to protect those interests. On the contrary, it has rushed more bombs and aviation fuel to Israel, lest there be any unwelcome let-up in the destruction of Lebanon. In no previous Israeli-Arab war has the United States revealed itself so nakedly as a de facto political adjunct of Israel. Perhaps the neo-cons have convinced President Bush that Israeli olive oil can substitute for Arab petroleum as fuel for America’s SUVs.

Bush said Monday the Tea Lady is working "urgently" to achieve a sustainable ceasefire in the Middle East.

''Escalating Conflict in the Middle East Could Spark a Global Recession''
As the war between Israel and Lebanon escalates, growing regional and world outrage may increasingly be channeled toward the United States -- the only country that has influence over Tel Aviv. This may encourage the world's three largest oil producers, Saudi Arabia, Russia and Iran, to significantly reduce oil exports in order to increase pressure on Washington to rein in Israel's military actions. An oil export embargo undertaken by just Russia and Iran, which together account for 20 percent of the world's oil exports, would be much more effective at extracting a major policy change from the Bush administration than Syrian and Iranian missile strikes against Israel.

Millions of children to be fingerprinted
British children, possibly as young as six, will be subjected to compulsory fingerprinting under European Union rules being drawn up in secret. The prints will be stored on a database which could be shared with countries around the world.

On each landing, opposite the lift shaft, the poster with the enormous face gazed from the wall. It was one of those pictures which are so contrived that the eyes follow you about when you move. BIG BROTHER IS WATCHING YOU, the caption beneath it ran. (Orwell 1984)

Mandelson: US greed caused the Doha collapse
..Washington should have been prepared to trade cuts in support for its farmers against gains elsewhere in the talks - such as new markets for US manufacturers and services firms.

Dollar Bear Market Resumes as Outlook for Higher Rates Fades
Most traders surveyed by Bloomberg say the dollar's tumble will continue this week. Seventy-five percent of the 48 traders, investors and analysts polled from Sydney to New York on July 28 advised buying euros, the most in the past year. Eighty-three percent said to buy yen. The poll has accurately forecast the dollar's direction in 27 of the past 52 weeks against the euro and in 29 versus the yen.

The Karamazov Question What Price for Paradise?
by CHRIS FLOYD


"They have put too high a price on harmony; we can't afford to pay so much for admission. And therefore I return my ticket."
Ivan Karamazov, BookFive, Chapter Four: "Rebellion."

..The man nodded. "If tonight you could guarantee the good of the world -- peace and freedom, democracy and prosperity, now and forever; if tonight, you could relieve the suffering of all those who labor under tyranny and persecution, all those who groan in poverty and disease; if tonight, you could redeem the anguish of creation, past and future, now and forever; if tonight, you could guarantee this universal reconciliation, by the simple expedient of taking this" -- here the man suddenly produced a black pistol and held it out to the president -- "and putting a bullet through the brain of this little one here, just her, no one else: would you do it? That is my question, this is your opportunity." ..


(56 people, more than half of them children, were killed Sunday in an Israeli airstrike on Qana, Lebanon)

Cabinet in open revolt over Blair's Israel policy
The Observer can also reveal that at a cabinet meeting before Blair left for last Friday's Washington summit with President George Bush, minister after minister pressed him to break with the Americans and publicly criticise Israel over the scale of death and destruction.



Analysis: A second Qana Massacre?
The southern Lebanese town of Qana is known for two events in history, and there could soon be a third as news comes in of rising civilian casualties from an Israeli air strike there.

For Syria's envoy, no calls from the White House
Syria's ambassador to the United States, Imad Moustapha, has not had a single meeting with any senior Bush administration official in a year and half. Even in the current crisis, his phone does not ring.

Quick Overview

• The U.S. Department of Commerce said the U.S. economy grew at a below forecast 2.5 percent annual rate last quarter, less than half the speed of the preceding three months. YoY real GDP was up 3.5%. YoY the GDP price deflator was up 3.3% in the second quarter, less than expected.
  
  

• The University of Michigan's consumer sentiment index dropped from 84.9 to 84.7.
  

• The Labor Department said the employment cost index increased 0.9% in the second quarter and 3.0% YoY.
  

• Republicans are willing to allow the first minimum wage increase in a decade but only if it's coupled with a cut in future inheritance taxes on multimillion-dollar estates, congressional aides said.
  

• YoY Japans consumer prices were up 1.0% in June. The International Monetary Fund declared that deflation in Japan had ended but also said monetary policy should remain accommodative to allow inflation expectations to drift up.
  

• The unemployment rate in Japan increased from 4.0% to 4.2% in June.
  

Gonzales Worried About War Crime Charges

Tide of Arab Opinion Turns to Support for Hezbollah The Saudi royal family and King Abdullah II of Jordan, who were initially more worried about the rising power of Shiite Iran, Hezbollah’s main sponsor, are scrambling to distance themselves from Washington.

An outpouring of newspaper columns, cartoons, blogs and public poetry readings have showered praise on Hezbollah while attacking the United States and Secretary of State Condoleezza Rice for trumpeting American plans for a “new Middle East” that they say has led only to violence and repression.

Analysis: Bush Foreign Policy Struggling
"This president has a very firm world view that is not about to be changed by facts or realities.

Quick Overview

• France's seasonally adjusted unemployment rate fell to 9.0 pct in June from 9.1 pct in May.
  
  

• U.S. Durable goods were up 3.1% in June, more than expected. Excluding aircraft and defense items, orders were up 0.4%, weaker than expected.
  

• U.S. New home sales were at an annual rate of 1.131 million units in June, down 3% MoM. New home sales are down 12% YoY.
  

• The U.S. Labor Department said that jobless claims were down 7,000 last week to 298,000.
  

• Mexico's economy will grow more than 4 percent in 2006 and create about 900,000 new jobs, surpassing earlier forecasts, the government said.
  

• The U.S. Department of Energy said that underground supplies of natural gas were down 7 billion cubic feet last week. Supplies are up 16% YoY.
  

Iran: The Next War
Even before the bombs fell on Baghdad, a group of senior Pentagon officials were plotting to invade another country. Their covert campaign once again relied on false intelligence and shady allies. But this time, the target was Iran. BY JAMES BAMFORD

Quick Overvview

• A Bank of Japan official suggested the next interest-rate hike might come sooner than some had expected.
  
  
  

• The Federal Reserve's Beige Book said that all twelve districts showed continued economic growth in the past twelve months, but seven of the districts pointed out the rate of growth had slowed.
  

• Australia consumer prices were up 1.6% in the second quarter and up 4.0% YoY
  

• German business confidence (IFO) dropped from 106.8 to 105.6 in July, more than expected.
  

• The dollar extended its losses on Wednesday, hitting session lows across-the-board after a Federal Reserve survey reinforced a view the U.S. economy is slowing and that interest rates may be set to peak.
  
  
  

• The U.S. Department of Energy said that:
  Supplies of crude oil were unchanged last week at 335.5 million barrels.
  Supplies of unleaded gasoline were down 3.2 million barrels
  Supplies of heating oil were up 1.2 million barrels.
  

• Over the past four weeks, gasoline demand was up 1.8% YoY and YoY distillate demand was up 6.2%.
  

The Case for the Barbarous Relic

With this comes a belligerent and blind nationalism that has affected the whole culture in one degree or another. In an empire, the people must become "hollow dummies," said Orwell. They must believe they are superior to others, and have a right to tell other others what to do. Americans seem to go beyond even this. They believe that other countries actually want to be invaded and occupied and shaped into mini-American by the US.

The Lawless State If the Founding Fathers could see us now, they’d surely ask, “How on earth did you get yourselves into this mess?” We’ve managed to do nearly everything the Constitution was designed to prevent us from doing.

Is Beirut Burning? By URI AVNERY
Thousands of e-mail distribution lists have circulated a horrible series of photos of mutilated babies and children. At the end, there is a macabre photo: jolly Israeli children writing "greetings" on the artillery shells that are about to be fired. Then there appears a message: "Thanks to the children of Israel for this nice gift. Thanks to the world that does nothing. Signed: the children of Lebanon and Palestine."