MARKETS TUMBLE ON US STIMULUS PKG

Greenspan backs bank nationalisation By Krishna Guha and Edward Luce in Washington February 18 2009 00:06

The US government may have to nationalise some banks on a temporary basis to fix the financial system and restore the flow of credit, Alan Greenspan, the former Federal Reserve chairman, has told the Financial Times.In an interview, Mr Greenspan, who for decades was regarded as the high priest of laisser-faire capitalism, said nationalisation could be the least bad option left for policymakers.

EDITOR’S CHOICE
In depth: US banks - Feb-10 Bank nationalisation gains ground with Republicans - Feb-18 Greenspan says Tarp needs boost - Feb-18 It may be necessary to temporarily nationalise some banks in order to facilitate a swift and orderly restructuring, he said.I understand that once in a hundred years this is what you do.

Mr Greenspan’s comments capped a frenetic day in which policymakers across the political spectrum appeared to be moving towards accepting some form of bank nationalisation.We should be focusing on what works, Lindsey Graham, a Republican senator from South Carolina, told the FT. We cannot keep pouring good money after bad. He added, If nationalisation is what works, then we should do it.Speaking to the FT ahead of a speech to the Economic Club of New York on Tuesday, Mr Greenspan said that in some cases, the least bad solution is for the government to take temporary control of troubled banks either through the Federal Deposit Insurance Corporation or some other mechanism.The former Fed chairman said temporary government ownership would allow the government to transfer toxic assets to a bad bank without the problem of how to price them.But he cautioned that holders of senior debt – bonds that would be paid off before other claims – might have to be protected even in the event of nationalisation. You would have to be very careful about imposing any loss on senior creditors of any bank taken under government control because it could impact the senior debt of all other banks, he said. This is a credit crisis and it is essential to preserve an anchor for the financing of the system. That anchor is the senior debt.Mr Greenspan’s comments came as President Barack Obama signed into law the $787bn fiscal stimulus in Denver, Colorado. Mr Obama will announce on Wednesday a $50bn programme for home foreclosure relief in Phoenix, Arizona. Meanwhile, the White House was working last night on the latest phase of the bailout for two of the big three US carmakers. In his speech after signing the stimulus, which he called the most sweeping recovery package in our history, Mr Obama set out a vertiginous timetable of federal decisions in the coming weeks that included fixing the US banking system, submission next week of the 2009 budget and a bipartisan White House meeting to address longer-term fiscal discipline.

We need to end a culture where we ignore problems until they become full-blown crises, said Mr Obama. Today does not mark the end of our economic troubles… but it does mark the beginning of the end.The Financial Times Limited 2009.

HIDDEN CAMERA VIDEO STORY
http://www.youtube.com/watch?v=TQ4iIM8Eljc&eurl=http://www.infowars.com/hidden-spy-camera-mic-found-inside-digital-tv-box/&feature=player_embedded
http://www.youtube.com/watch?v=5TiKjjyQqbA&eurl=http://www.infowars.com/hidden-spy-camera-mic-found-inside-digital-tv-box/&feature=player_embedded
http://www.youtube.com/watch?v=-uEfRaUhpv0&eurl=http://www.infowars.com/hidden-spy-camera-mic-found-inside-digital-tv-box/&feature=player_embedded

Hidden Spy Camera & Mic Found Inside Digital TV Box
Paul Joseph Watson Prison Planet.com Wednesday, February 18, 2009

A popular video circulating on You Tube shows the discovery of a spy camera and a microphone hidden inside a digital TV converter box. Such devices are part of a government and industry surveillance program that is undoubtedly connected to the forced digital TV switchover being rolled out in the UK and US.I could not believe my eyes, states the blurb accompanying the video clip, I have a friend who is kind of a conspiracy theorist. He was trying to convince me that many of the digital TV convert boxes that are coming out have microphones and cameras built into them. Knowing a bit about electronics I bought one of these devices opened it up fully intending on proving him wrong. To my surprise he was right. This device has both a miniature camera lens and what looks like a microphone. I was so shocked I took pictures and video. Please send this out to everyone you know who is using one of these devices.The camera and microphone were hidden inside a MAGNAVOX TB110MW9 Digital to Analog Converter box. We are not suggesting that every digital cable box has a spy camera and microphone inside, so ripping open your cable box is not a good way to prove this one way or another - but the fact remains that companies like Google and Comcast have openly announced that they plan to use hidden cameras and microphones inside their products to spy on consumers.The need to mandate a mass roll out of such hidden surveillance devices is undoubtedly one of the reasons that governments in both the UK and the US, as well as eventually the entire planet, are overseeing a forced switchover to digital TV and killing traditional analogue broadcasts. The vast majority of TV’s require a digital decoder box to receive digital TV transmissions.

By installing covert spy devices and hidden microphones inside our all but mandatory digital boxes, the government and whatever corporate entities get a slice of the pie, have direct access to our living rooms. This is the ultimate Big Brother scenario whereby the majority of Americans and Europeans will have Orwellian telescreens watching their every move.Many will dismiss such claims as conspiracy fodder, but the fact is that Americans have been spied on for decades, previously under the Echelon program and more recently as part of the Bush administration’s warrantless wiretapping program.As former National Security Agency analyst Russell Tice recently revealed, The National Security Agency had access to all Americans’ communications — faxes, phone calls, and their computer communications, Tice claimed. It didn’t matter whether you were in Kansas, in the middle of the country, and you never made foreign communications at all. They monitored all communications.

As we highlighted three years ago, private industry and eventually government is planning to use microphones in the computers of an estimated 150 million-plus Internet active Americans, as well as similar devices installed inside digital TV boxes, to spy on their lifestyle choices and build psychological profiles which will be used for surveillance and minority report style invasive advertising and data mining.Digital cable TV boxes, such as Scientific Atlanta, have had secret in-built microphones inside them since their inception in the late 1990’s and these originally dormant devices were planned to be activated when the invasive advertising revolution was being rolled out, a watershed that is quickly becoming a reality.The advent of digital video recording devices such as TiVo (Sky Plus in the UK) introduced the creation of psychological algorithm profiles - databases on what programs you watched, how long you watched them for, and which adverts you liked or didn’t like. This information was retained by TiVo and sold to the highest bidders - an example being Janet Jackson’s wardrobe malfunction during the 2003 Super Bowl half-time show; TiVo were able to compile lists of how many people had rewound the clip and how many times they had replayed it.In 2006, Google announced that they would use in-built computer microphones to listen in on user’s background noise, be it television, music or radio - and then direct advertising at them based on their preferences.In March last year, Comcast announced that they were experimenting with different camera technologies built into devices so it can know who’s in your living room.The cameras would use body-form recognition to confirm who was in the room and then tailor program recommendations, as well as commercials, to target that member of the family.The video below covers the issue of secret cameras installed inside digital TV boxes and their relation to the forced digital switchover. A further video explores other motives behind the digital switchover.

Los Angeles nears water rationing By Steve Gorman FEB 17,09

LOS ANGELES (Reuters) – With a recent flurry of winter storms doing little to dampen California's latest drought, the nation's biggest public utility voted on Tuesday to impose water rationing in Los Angeles for the first time in nearly two decades.Under the plan adopted in principle by the governing board of the L.A. Department of Water and Power, homes and businesses would pay a penalty rate -- nearly double normal prices -- for any water they use in excess of a reduced monthly allowance.The five-member board plans to formally vote on details of the measure next month.The rationing scheme is expected to take effect in May unless the City Council acts before then to reject it -- a move seen as unlikely since Mayor Antonio Villaraigosa called for the measure under a water-shortage plan last week.The only other time such penalty pricing was imposed to force conservation in the nation's second biggest city was a rationing system put into effect for a year starting in March 1991, at the height of California's last statewide drought.That measure cut citywide water use by about 25 percent, DWP spokesman Joseph Ramallo said.

The DWP board also voted unanimously to restrict lawn sprinkler use to two days a week, as urged by the mayor. Outdoor irrigation accounts for 40 percent of residential water use in the city, DWP officials say.The agency is the largest municipal utility in the United States, supplying water and electricity to some 3.8 million households and businesses in Los Angeles.San Diego and other cities throughout California are weighing similar measures to cope with a water shortage that is adding to the woes of a state beset with rising unemployment, high mortgage foreclosure rates and a budget crisis.

DROP IN THE BUCKET

The snowpack in the Sierra Nevada mountain range, one of the state's chief sources of fresh surface water, is far below normal, and reservoirs fed by Sierra runoff are badly depleted as well, due to a statewide drought now in its third year.State water managers have said the current dry spell could prove to be the worst ever in California, owing to rising demands from steady population growth.Recent heavy rains, and mountain snowfall, have provided a welcome respite from California's driest January on record, but this latest set of storms did not get us out of the woods by any means,water manager James McDaniel told the DWP board.Complicating matters are federal court restrictions on water that can be pumped from the Sacramento-San Joaquin Delta in northern California, which furnishes much of the state's irrigation and drinking supplies, in order to protect endangered fish species.As a result, state water managers have cut the amount of delta water they provide to irrigation districts and cities around the state to 15 percent of their usual contracted allotment for the year and may curb those deliveries further.

Another major source of imported water to Southern California, the Colorado River basin, is emerging from an eight-year drought, but its reservoirs remain low.(Editing by Mary Milliken)

FROM WND'S JERUSALEM BUREAU Obama promises Palestinians he'll protect biblical heartland Palestinian officials enthusiastic about new tone in White House
February 16, 2009 8:50 pm Eastern By Aaron Klein 2009 WorldNetDaily

JERUSALEM – The Obama administration has pledged to the Palestinian Authority it will closely monitor Jewish construction in the West Bank and will protest any new housing developments in the biblical territory, a top PA negotiator told WND. They told us the White House will watch for any Jewish construction, said the PA negotiator, speaking on condition of anonymity. Obama knows that if [Likud Chairman Benjamin] Netanyahu is the next prime minister, he will try to expand the settlements. They pledged to us this will be strongly protested, the negotiator said. Although Foreign Minister Tzipi Livni's Kadima party captured one more seat than Likud in last week's elections, Netanyahu is considered most likely to form the next government, since he is reportedly able to forge the most stable coalition with other parties in the 120-seat Knesset.

Earlier this month, WND quoted top PA officials stating they received a guarantee from Obama's administration that understandings reached with Israel during U.S.-backed negotiations while President Bush was in office would be utilized as starting points for current and future talks with the Jewish state. The PA officials said they were enthusiastic about the new tone of the White House and about recent meetings with Obama's Mideast envoy, former Democratic Sen. George Mitchell. They said they believe that under Obama the Palestinians can extract from Israel concessions reaching much further than during talks held under the previous administration. Regarding all understandings achieved between the parties, the Obama administration told us they will give guarantees to carry them out,said a top PA official.With Obama, the number of settlers to be removed from the West Bank will much be more important than 60,000,said the PA official, referring to previous negotiations in which Israel expressed a willingness to withdraw from up to 94 percent of the West Bank and move about 60,000 settlers into central settlement blocks closer to Jerusalem. WND reported exclusively in November that then-Secretary of State Condoleezza Rice collected notes and documents from Israeli and Palestinian negotiating teams to ensure the incoming U.S. administration would not need to start negotiations from scratch. PA sources said Rice's notes are being used by Obama's team as the starting points for new Israeli-Palestinian talks.

Documents noting agreements during previous Israeli-Palestinian negotiations have been used in subsequent talks, sometimes as starting points. According to both Israeli and PA sources, American officials took detailed notes of talks at U.S.-brokered negotiations at Camp David in 2000 and then used points of agreement on key issues, such as borders, during recent rounds of intense Israeli-Palestinian talks.

Israeli and PA sources said Rice's notes document agreements that would seek an eventual major West Bank withdrawal and would grant the PA permission to open official institutions in Jerusalem. A top source said the PA requested that the Obama administration threaten sanctions against Israel for any new Jewish construction in the West Bank. The source told WND that Obama is said to favor Israel withdrawing from nearly the entire West Bank. Israel recaptured the West Bank in the 1967 Six Day War. The territory, in which about 200,000 Jews live, is tied to Judaism throughout the Torah and is often referred to as the biblical heartland of Israel.The book of Genesis says Abraham entered Israel at the West Bank city of Shechem (Nablus) and received God's promise of land for his offspring. He was later buried with the rest of the biblical patriarchs and matriarchs, except for Rachel, in Hebron's Tomb of the Patriarchs. The West Bank's Hebron was site of the first Jewish capital.The nearby West Bank town of Beit El – anciently called Bethel, meaning house of God – is where Scripture says the patriarch Jacob slept on a stone pillow and dreamed of angels ascending and descending a stairway to heaven. In the dream, God spoke directly to Jacob and reaffirmed the promise of territory. Earlier, God had promised the land of Israel to Abraham at Beit El. In Exodus, the holy tabernacle rested just north of Beit El in Shiloh, believed to be the first area the ancient Israelites settled after fleeing Egypt.

PHOTONETDAILY CAIR feted Muslim who beheaded wife TV network founder previously honored by controversial group February 17, 2009 8:42 pm Eastern By Chelsea Schilling 2009 WorldNetDaily

A Muslim TV network founder who has been charged with beheading his wife was the recipient of an award from the controversial Council on American-Islamic Relations, the self-described Muslim civil rights group that boasts of its influence on U.S. government policy.Muzzammil Hassan receives award from CAIR-PA Chairman Iftekhar Hussain and CAIR National Chairman Parvez Ahmed. (photo: CAIR-PA)Muzzammil Hassan, 44, and his wife, Aasiya Hassan, 37, founded Bridges TV in November 2004. They described it as a satellite news and opinion channel aimed at portraying Muslims in a positive light following the Sept. 11 attacks. Hassan is accused of cutting off his wife's head at his Buffalo, N.Y., station Feb. 12. He received an award April 7, 2007, from CAIR-Pennsylvania at its first annual banquet, a fundraiser at the Hilton Philadelphia. CAIR-PA Chairman Iftekhar Hussain and CAIR National Chairman Parvez Ahmed presented the award to Hassan. The organization website does not specify a reason for the honor. Pennsylvania's Democratic Gov. Ed Rendell and Rep. Joseph Sestak of Pennsylvania's 7th District were special guests at the event. Sestak was the keynote speaker. The American-Muslim community is a wonderful community and they have my strong support, Sestak said in a statement. They are among our District's leaders, and among other things, have contributed to the success of businesses, educational institutions, interfaith circles and the health sector. Their participation in civic life is indicative of the great diversity and tolerance of this nation.

According to its core principles, CAIR Pennsylvania's website states, CAIR PA condemns all acts of violence against civilians by any individual, group or state.A message before the event from CAIR-PA's chairman, Iftekhar Hussain, revealed the banquet would give members an opportunity to meet with community, interfaith and civil rights leaders whom the organization would honor for their work in promoting justice, mutual understanding and democratic empowerment.Authorities found Aasiya Hassan's decapitated body lying in a studio hallway. Her lawyer said Aasiya, a Pakistani national, filed for divorce after numerous incidents of domestic violence. She cited cruel and inhuman treatment as reason for the dissolution. The Hassans were married for eight years and had two children together, ages 4 and 6. Aasiya was her husband's third wife, and the couple reportedly met on the Internet. Aasiya had a restraining order against her husband as of Feb. 6 and had kicked him out of their home in Orchard Park, a Buffalo suburb. Her older sister, Asma Firfirey, told the Cape Argus in South Africa that Aasiya often called to talk about marital troubles and said she believes her sister suffered several hours of torture before being murdered. In a statement on its website, Bridges TV said it was deeply shocked and saddened by the murder of Aasiya (Zubair) Hassan and subsequent arrest of Muzzammil Hassan.In 2005, Hassan told the Buffalo News he decided to form the television station after he heard disparaging comments about U.S. Muslims on a radio talk show. It operates under the slogan connecting people through understanding.Every day on television we are barraged by stories of a Muslim extremist, militant, terrorist, or insurgent, Hassan said in a 2004 press release. But the stories that are missing are the countless stories of Muslim tolerance, progress, diversity, service and excellence that Bridges TV hopes to tell.According to a Council on Foreign Relations report, David Powers, a professor of Islamic law and history at Cornell University, explained that the Quran permits men to use physical force against disobedient wives in some circumstances. A woman may ask for divorce, but only a man can grant her request.Classical Shariah lays out very limited conditions under which a woman can divorce a man – he must be infertile at the time of marriage; insane; or have leprosy or another contagious skin disease, the CFR report states. Most Islamic nations, including Egypt and Iran, now allow women to sue for divorce for many other reasons, including the failure to provide financial support.On Feb. 12, Hassan informed police his wife was dead and told them exactly where to find her body. According to CNN reports, Hassan confessed to killing Aasiya. He has been charged with second-degree murder. Authorities are still looking for a murder weapon.

Hassan is incarcerated at the Erie County Holding Center. A court hearing is scheduled for Wednesday afternoon. Beheadings are more common in Hassan's former homeland of Pakistan and throughout the Islamic world: Just a week ago, Taliban terrorists in that country beheaded a Polish geologist abducted in an effort to arrange a prisoner swap. An American U.N. worker, John Solecki, is currently facing a similar fate at the hands of Islamic terrorists in that country. Terrorists in Pakistan video recorded the beheading of American reporter Daniel Pearl. Terrorists in Iraq video recorded the beheading of American Nicholas Berg. Beheading is a common form of execution in Saudi Arabia. Beheading is a common way to conduct a so-called honor killing – the murder of a wife – throughout the Islamic world.
Some of the individuals behind Bridges TV include: Nihad Awad, executive director of the controversial Council on American-Islamic Relations Iman W. Deen Muhammad, president of the American Society of Muslims Muhammad Ali NBA star Hakeem Olajuwon
CAIR's communications director, Ibrahim Hooper, said Bridges TV is just an example of the growing maturity and sophistication of the American Muslim community that people are even at this stage where we can contemplate this kind of network.

DOCTOR DOCTORIAN FROM ANGEL OF GOD
then the angel said, Financial crisis will come to Asia. I will shake the world.

JAMES 5:1-3
1 Go to now, ye rich men, weep and howl for your miseries that shall come upon you.
2 Your riches are corrupted, and your garments are motheaten.
3 Your gold and silver is cankered; and the rust of them shall be a witness against you, and shall eat your flesh as it were fire. Ye have heaped treasure together for the last days.

REVELATION 18:10,17,19
10 Standing afar off for the fear of her torment, saying, Alas, alas that great city Babylon, that mighty city! for in one hour is thy judgment come.
17 For in one hour so great riches is come to nought. And every shipmaster, and all the company in ships, and sailors, and as many as trade by sea, stood afar off,
19 And they cast dust on their heads, and cried, weeping and wailing, saying, Alas, alas that great city, wherein were made rich all that had ships in the sea by reason of her costliness! for in one hour is she made desolate.

EZEKIEL 7:19
19 They shall cast their silver in the streets, and their gold shall be removed: their silver and their gold shall not be able to deliver them in the day of the wrath of the LORD: they shall not satisfy their souls, neither fill their bowels: because it is the stumblingblock of their iniquity.

REVELATION 13:16-18
16 And he(FALSE POPE) causeth all, both small and great, rich and poor, free and bond, to receive a mark in their right hand, or in their foreheads:(CHIP IMPLANT)
17 And that no man might buy or sell, save he that had the mark, or the name of the beast, or the number of his name.
18 Here is wisdom. Let him that hath understanding count the number of the beast: for it is the number of a man; and his number is Six hundred threescore and six.(6-6-6) A NUMBER SYSTEM

WORLD MARKET RESULTS
http://money.cnn.com/data/world_markets/

HALF HOUR DOW RESULTS WED FEB 18,2009

09:30 AM +16.65
10:00 AM -15.69
10:30 AM -32.25
11:00 AM -18.67
11:30 AM +20.08
12:00 PM +37.84
12:30 PM +52.17
01:00 PM +21.99
01:30 PM -2.23
02:00 PM -23.89
02:30 PM -26.52
03:00 PM -30.26
03:30 PM -2.23
04:00 PM +3.03 7555.63

S&P 500 788.42 -0.75

NASDAQ 1467.97 -2.69

GOLD 985.80 +18.30

OIL 34.60 -0.33

TSE 300 8184.32 -194.38

CDNX 915.82 -3.34

S&P/TSX/60 490.00 -11.36

MORNING,NEWS,STATS

YEAR TO DATE PERFORMANCE
Dow -13.95%
S&P -12.63%
Nasdaq -6.74%
TSX Advances 511,declines 1,090,unchanged 254,Volume 2,313,725,886.
TSX Venture Exchange Advances 336,Declines 472,Unchanged 346,Volume 231,693,642.

ITS GETTING UGLY HOARD GOLD
http://www.infowars.com/it%e2%80%99s-getting-ugly-economist-says-hoard-gold-scotch/
OBAMAS BROKEN PROMISES
1. Make Government Open and Transparent
2. Make it Impossible for Congressmen to slip in Pork Barrel Projects
3. Meetings where laws are written will be more open to the public
4. No more secrecy
5. Public will have 5 days to look at a Bill
7. We will put every pork barrel project online
http://www.youtube.com/watch?v=o5t8GdxFYBU&eurl=http://www.infowars.com/obamas-broken-promises/&feature=player_embedded

Dow +13 points at 4 minutes of trading today.
Dow -67 points at low today.
Dow +52 points at high today so far.
Last time the Dow closed below 7552.29 was on MARCH 12,2003.
Last time the S&P closed below 752.44 was on APRIL 14,1997.
Last time the NAS closed below 1316.12 was on MARCH 12,2003.
NOVEMBER intra-day lows:DOW 7449.38,S&P 741.02,NAS 1295.48.
Deere -3% today at start of trading.
Goodyear -8% at start of trading.
Gold at $970.40 at start of trading today.
Oil at $35.42 at start of trading today.

MBIA SPLITS IN 2
MBIA establishes separate public financial bond Insurance Company.
MBIA other Company to focus on Public Finance,such as Muni BONDS.

AFTERNOON,NEWS,STATS
Dow -67 points at low today so far.
Dow +71 points at high today so far.
WHILE MOUTH PIECE OBAMA HAD A SPEECH 12:30PM TODAY FOR 15 MINUTES, THE MARKET DROPPED FROM 52 to 12 POINTS,KEEP TALKIN OBAMANATION.

DAY TODAY PERFORMANCE - 12:30PM STATS
NYSE Advances 1,425,declines 2,206,unchanged 120,New Highs 13,New Lows 332.
Volume 3,041,813,790.
NASDAQ Advances 1,294,declines 1,271,unchanged 130,New highs 7,New Lows 205.
Volume 914,225,227.
TSX Advances 347,declines 968,unchanged 244,Volume 1,295,928,818.
TSX Venture Exchange Advances 237,Declines 350,Unchanged 290,Volume 94,256,147.

WRAPUP,NEWS,STATS
Dow -67 points at low today.
Dow +71 points at high today.
Dow +0.05% today Volume 267,383,200
Nasdaq -0.18% today Volume 1,890,327,127
S&P 500 -0.10% today Volume N/A

MARTIAL LAW ETC COMING ON EARTH
http://www.youtube.com/watch?v=pJpLZt1QfVg
http://www.youtube.com/watch?v=GvZt2kZkwZM
http://www.youtube.com/watch?v=rgGDYJMLDG0
http://www.youtube.com/watch?v=7YFZSd4F-mw
http://www.youtube.com/watch?v=jXVW-rNZ1HA (JEROME CORSI)
http://www.youtube.com/watch?v=x0s5GuKULt0 (JEROME CORSI)
http://www.youtube.com/watch?v=uSvBAw8yYVk (JEROME CORSI)
http://www.youtube.com/watch?v=rDZO-IZGN30 (JEROME CORSI)
http://www.youtube.com/watch?v=Bpsh2CC53zs (JEROME CORSI)
http://www.youtube.com/watch?v=hrbs0tbufl4 (JEROME CORSI)
http://www.youtube.com/watch?v=TXwYYksV1c4 (JEROME CORSI)
http://www.youtube.com/watch?v=wmkHU9lGii0 (JEROME CORSI)

Fears of deeper recession hits TSX By Jennifer Kwan – Tue Feb 17, 6:02 pm ET

TORONTO (Reuters) – Toronto's main stock index sank on Tuesday to its lowest level in seven weeks as resource issues slumped on falling oil and base metal prices, and as concerns grew over the global financial crisis.The financial services sector led the TSX lower, closing down 6.4 percent, its steepest one-day percentage loss since the beginning of December.Heavily weighted stocks on the downside included insurer Manulife Financial, down 10.6 percent to $15.67, and Royal Bank of Canada, which fell 5.5 percent to $28.15.Further concerns about the financial sector were sparked after two leading agencies, including a report from Moody's Investors Service, warned about growing risks to European banks as the recession deepens.That added to an already gloomy tone in the sector, said Francis Campeau, broker at MF Global Canada, in Montreal, adding that there appear to be no buying catalysts.Going forward, we expect banks' income to decrease, he said. Forward earnings per share are getting repriced and current dividends are unsustainable.The energy group also pressured the TSX lower, falling 5 percent as the price of oil dropped 7 percent to below $35 a barrel on demand concerns.EnCana Corp fell 5.2 percent to $51.30, while Suncor Energy dropped 7 percent to $22.82.

The Toronto Stock Exchange's S&P/TSX composite index closed down 299.40 points, or 3.45 percent, at 8,378.70, with nine of its 10 main sectors lower. At one point, the resource-laden index touched its lowest level since December 29. On Monday, the market was closed for a public holiday.The lone sector in positive territory was the resource-laden materials group, up 0.5 percent, as gold prices got a boost as investors sought refuge from economic gloom.Goldcorp climbed 3.4 percent to C$40.45, while Barrick Gold rose 1.1 percent to $47.19. Kinross shot up 4.6 percent to C$24.39.Grim U.S. housing and factory data helped to dampen the mood in North American equity markets, while market sentiment was also hit by data that showed Japan's economy sank deeper into recession in the fourth quarter.The market was also under pressure ahead of the Tuesday deadline for two of Detroit's Big Three automakers to submit restructuring plans.They were historically considered a bellwether for the health of the U.S. economy and the fact that they are repeatedly back to U.S. regulators for a lifeline ... is tremendously disconcerting, said Paul Taylor, chief investment officer at BMO Harris Investment Management Inc.A UBS analyst said Air Canada could be forced to file for bankruptcy protection if it does not secure additional financing and succeed in renegotiating covenants in credit card agreements. Air Canada fell 12.8 percent to $1.29.Elsewhere, copper and zinc producer Teck Cominco fell 9.8 percent to $4.44 after it reporter a quarterly loss and as investors worried about the outlook for the company's coal sales.The blue chip S&P/TSX 60 index closed 19.77 points lower, or 3.79 percent, at 501.36.(Reporting by Jennifer Kwan; editing by Rob Wilson.

Financial crisis tests European Commission authority,The headquarters of the European Commission - the guardian of the EU rulebook (Photo: EUobserver.com)
ANDREW WILLIS 17.02.2009 @ 09:43 CET

EU economy commissioner Joaquin Almunia will this week name the first group of states to receive disciplinary action by Brussels for breaching the rules underpinning the euro. Ahead of Wednesday's (18 January) move, the commissioner insisted that member states adhere to the Stability and Growth Pact, which requires that countries keep their budget deficits below three percent of GDP.The rules were established for everybody and must be respected,he said before a debate in the European Parliament on Monday.What they say as far as budget discipline is concerned is clear: In the case where countries have recorded or plan deficits above the three percent barrier, we must launch procedures established in the [EU] treaty,he added.

Of the countries up for review on Wednesday, France, Spain and Greece are expected to attract excessive deficit action from the commission, according to draft documents seen by Reuters. The Irish deficit for 2009 is also predicted to exceed the three percent ceiling, according to the commission's interim forecast published last month.But the biggest question is whether the commission's actions will have any bite as member states grapple with the effects of the economic crisis at home.

Karel Lannoo, head of the Centre for European Studies, a Brussels-based think-tank, thinks the pact is already on its last legs.Today, it is almost entirely dead, he said of the pact, noting that it went into decline after 2005 when it was reformed to accommodate France's deficit.Speaking about Europe's reaction to the global economic downturn, Mr Lannoo said that the bloc made mistakes from the very start.

The fault was already made in October when there was no willingness to consider this as a European problem but rather as national problems, he said, adding that the European Economic Recovery Plan signed by EU leaders in December seemed more of an afterthought than a genuine attempt at co-ordination. Since then, the EU has witnessed a barrage of unilateral actions to save national banks and prop-up structurally flawed industries, with scant regard paid to potential negative consequences for other member states. French President Nicolas Sarkozy has attracted the most attention by calling on French car companies to relocate back to France, but he is by no means alone is seeking national solutions for his constituents. The same has been happening in the financial sector for four months and who is shouting about it? Almost nobody. But it's enormously distorting,says Mr Lannoo. I'm surprised by the degree to which there is almost no willingness to challenge this.

With new initiatives being announced on an almost daily basis, the commission is struggling to deal with the rising number of protectionist attacks to the internal market.Writing in the Financial Times last week, former Italian Prime Minister Giuliano Amato and former EU commissioner Emma Bonino outlined a credible alternative to the current approach. Both the financial and car sectors should be declared in a state of crisis, they argue. Then, two task forces of national officials should be set up and chaired by the commission. Their mandate would be to co-ordinate state aid, making sure that national measures re-inforce each other to the greater benefit of the sectors concerned and avoid bending competition rules, they said. It is doubtful whether member state governments would agree to such a project, however.

Eurozone problems

The single market is not the only EU pillar currently under threat. While the euro celebrated its 10th anniversary last month and welcomed Slovakia as its newest member, the eurozone itself has been put under great pressure by the unfolding crisis.One of the biggest issues is spread in rates offered on government bonds. Markets have grown increasingly uneasy over ballooning government deficits in recent weeks, prompting investors to demand higher yields when buying sovereign debt from EU states whose finances are perceived as vulnerable. The subsequent rise in borrowing costs increases the threat of a national default, prompting the question of whether such an event could cause a current member to leave the eurozone. The probability of this split is zero. The list of members to join the euro is very long, Mr Almunia told MEPs on Monday in an apparent attempt to quash such speculation. Mr Lannoo has a more nuanced approach. Every country will ask itself: Is it better that I stay inside [the eurozone] or is it better that I go outside? he said, referring to the cheaper financing of public debt enjoyed by euro members versus the option of currency devaluation enjoyed by non-members.

Euro-bond idea

In the meantime, calls for a euro-bond, first suggested by Italian finance minister Giulio Tremonti, are likely to go unanswered, with Germany baulking at the idea of picking up the bill. Yields on a common euro-bond used by all eurozone states would be significantly lower than those currently paid by a number of peripheral countries, as the risk of a eurozone default is highly unlikely. However euro-bond yields would probably exceed those currently paid by Germany. Instead, member states could start by co-ordinating their bond issuance calendars to reduce competition between countries attempting to raise capital. To some, greater co-ordination at the EU level would seem to be a solution for much of the EU's current woes but it is hard to see where this would come from.

Prague courts Obama for April visit
VALENTINA POP 17.02.2009 @ 09:29 CET

With less than two months to go until the new US president's first visit to Europe, Czech officials are pushing for an EU-US meeting to be held in Prague.It's our impression that the new administration doesn't just care about the fat cats - Germany, France and Britain - but they care about the small countries, too, Czech foreign minister, Karel Schwarzenberg, told the International Herald Tribune newspaper.It's important that the United States also do this in a country that 20 years ago belonged to the Soviet pact, he added. Mr Schwarzenberg noted that an Obama visit to Prague would be an important message to Moscow, which continues to view the Czech Republic and Poland as part of an eastern zone.During his trip to Europe, Mr Obama will first go to London on 2 April, where he will attend the Group of 20 large industrialized countries (G20) meeting scheduled to discuss overhauling the global financial system.On 3 to 4 April, he will be in Strasbourg (France) and two towns in Germany - Kehl and Baden-Baden - for a NATO summit marking the alliance's 60th anniversary and France's full re-integration into its military structures.With UK, France and Germany ticked off, the Czechs are hoping that Mr Obama will also head to their country for an informal top-level meeting with EU leaders.After cheering Mr Obama's November victory, European leaders soon found out that the new administration in Washington had other priorities than the old continent. In his first hours in office, Mr Obama telephoned Middle Eastern leaders, breaking the tradition of calling Europe first. It was only three days later that the US president picked up the phone to London, Paris, Berlin and Moscow.Mr Obama's foreign policy choices are also reflected in his secretary of state's visit to Japan, Indonesia, South Korea and China this week, again, ahead of the traditional European visit.US vice-president Joseph Biden, however, did visit Europe on 7 and 8 February, to take part in the annual Munich security conference, where he met German chancellor Merkel, French president Sarkozy and EU commission president Barroso. Mr Schwarzenberg was also present.

World markets tumble on fears about US stimulus package Global markets retreated yesterday on concerns that President Barack Obama's $787bn (£551bn) fiscal stimulus plan will not be as effective as first thought. By James Quinn in New York and Yvette Essen in London 11:10PM GMT 17 Feb 2009

The fears sent the Dow Jones Industrial Average plunging to bear-market lows not seen since last November.The Dow tumbled by 3.79pc to close within half of one point of its November 20 low of 7552.29, which marked the bottom of the current bear-market – closing down 297.81 points at 7552.60. The benchmark index – which was closed on Monday for the Presidents' Day holiday – was pushed lower by General Motors, down 12.8pc on fears about its future viability ahead of filing an interim restructuring report with the US Treasury. Major banks also helped drag the Dow lower, with Citigroup off 12.3pc and Bank of America down 12pc on renewed nationalisation fears and higher-than-expected delinquency rates at credit card providers Capital One and American Express. The broader S&P 500 index closed down 37.67 points to 789.17 – below the 800-point level for the first time since November, as a survey said that manufacturing had contracted at the fastest pace on record.Thomas Lee, a JP Morgan analyst, reflected the markets' fears about the $787bn stimulus plan: The concern that's really emerging now is if it's going to be a large enough programme to jolt the economy back into expansion. We don't think the recession's over until at least the middle of the year, and that's starting to seem very early.

In London, the benchmark FTSE 100 index spent the entire trading session in the red –falling to 3995.4 at one stage – before managing to recoup some of its losses to close down 100.62 points at 4034.13. The FTSE 250, which is seen as more representative of the British economy, retreated 196.16 points to 6265.71. While the FTSE 100 closed above 4,000, Jimmy Yates, a trader at CMC Markets, said failure to hold this level would be critical. If we close below these levels it's going to raise questions about just how much lower the markets can go. Investors instead sought refuge in gold, which hit a seven-month high.

Worst Is Yet to Come:Americans' Standard of Living Permanently Changed Feb 17, 2009 12:53pm EST by Aaron Task in Investing, Recession
http://finance.yahoo.com/tech-ticker/article/176478/%22Worst-Is-Yet-to-Come%3A%22-Americans-Standard-of-Living-Permanently-Changed

There's no question the American consumer is hurting in the face of a burst housing bubble, financial market meltdown and rising unemployment. But the worst is yet to come,according to Howard Davidowitz, chairman of Davidowitz & Associates, who believes American's standard of living is undergoing a permanent change - and not for the better as a result of:

An $8 trillion negative wealth effect from declining home values.
A $10 trillion negative wealth effect from weakened capital markets.
A $14 trillion consumer debt load amid exploding unemployment, leading to exploding bankruptcies.The average American used to be able to borrow to buy a home, send their kids to a good school [and] buy a car, Davidowitz says. A lot of that is gone.

Going forward, the veteran retail industry consultant foresees higher savings rate and people trading down in both the goods and services they buy - as well as their aspirations.The end of rampant consumerism is ultimately a good thing, he says, but the unraveling of an economy built on debt-fueled spending will be painful for years to come.

Eastern European currencies crumble as fears of debt crisis grow Currencies have crumbled across Eastern Europe on mounting fears of a debt crisis as foreign creditors withdraw from the region. By Ambrose Evans-Pritchard 7:23AM GMT 17 Feb 2009

Hungary’s forint fell to an all-time low on Monday, and Poland’s zloty slumped to the lowest in five years on plunging industrial output. Half of all loans to the private sector in Poland are in foreign currencies so borrowers face a severe debt shock after the 40pc fall of the zloty against the euro since August. We’re nearing the level were things could get out of hand, said Hans Redeker, currency chief strategist at BNP Paribas. The mushrooming crisis has already started to spill over into Germany's debt markets, lifting credit default swaps on German five-year bonds to a record 70 basis points. The gap between French and German CDS spreads has narrowed abruptly for the first time since the credit crisis began. Investors are beginning to ask whether Germany is going to have to pay for the rescue of Eastern and Central Europe, he said. A report by Moody’s released on Tuesday said the region’s banks were coming under severe stress as the property bust combines with a rising debt burden. Local currency depreciation is a major risk to East Europe banks,it said. There are contagion worries for Western banks that have lent $1.74 trillion (£1.22bn) to the ex-Soviet bloc -- split between $1 trillion in foreign loans and $700bn in local currency debt through subsidiaries. Austria’s banks are the most exposed with the share of risk-weighted assets tied to the region reaching 54pc for Raffeisen and 38pc for Erste Bank. The exposure of Germany’s Bayern Bank is 48pc, Italy’s UniCredit is 45pc, and Swedbank is 29pc.

The region needs to roll over $400bn in foreign debts this year, equivalent to a third of total GDP, raising concerns that it may need a massive rescue programme from the International Monetary Fund and the European institutions. Dominique Strauss-Kahn, the IMF’s chief, said he expected a second wave of countries to come knocking after earlier bail-outs of Latvia, Hungary, Ukraine, and Belarus -- as well as Iceland and Pakistan. The fund is scrambing to raise more money to cover the possible eruption of major crises in several countries simultaneously. The Japanese have already agreed to supply an extra $200bn. The European Bank for Reconstruction and Development says East Europe may need as much as €400bn (£358bn) in help this year to refinance loans and inject fresh capital into the banking system. Austrian-led efforts to create to a pan-EU fighting fund to tackle the crisis early have garnered little support so far.

GM, Chrysler seek more govt aid, to cut more jobs By TOM KRISHER and KEN THOMAS, Associated Press Writers FEB 17,09

DETROIT – General Motors and Chrysler said Tuesday their request for federal aid ballooned to a staggering $39 billion — only months after receiving billions in loans — in new plans that envision massive job losses and intense restructuring to survive a deepening recession.General Motors Corp. presented a survival plan that calls for cutting a total of 47,000 jobs globally and closing five more U.S. factories, a move that represents the largest work force reduction announced by a U.S. company in the economic meltdown. Chrysler LLC said it will cut 3,000 more jobs and stop producing three vehicle models.The grim reports came as the United Auto Workers union said it had reached a tentative agreement with GM, Chrysler and Ford Motor Co. on contract changes. Concessions with the union and debt-holders were a condition of the government bailout.GM said it could need up to $30 billion from the Treasury Department, up from a previous estimate of $18 billion. That includes $13.4 billion the company has already received. The world's largest automaker said it could run out of money by March without new funds and needs $2 billion next month and another $2.6 billion in April.We have a lot of work to do, GM Chairman and Chief Executive Rick Wagoner said. We're still going at this with a great sense of urgency.

GM's request includes a credit line of $7.5 billion to be used if the downturn is more pronounced than expected. But the automaker claimed it could be profitable in two years and repay its loans by 2017.The requests pale in comparison to what it might cost taxpayers if GM or Chrysler go bankrupt, said Aaron Bragman, auto industry analyst for the consulting firm IHS Global Insight in Troy, Mich.These are not small, insignificant organizations, he said. These are the lifeblood of American manufacturing.The company looked into three bankruptcy scenarios, all of which would cost the government more than $30 billion, GM Chief Operating Officer Fritz Henderson said. The worst scenario would cost $100 billion because GM's revenue would severely drop, he said.Although little is known about whether people would buy cars from a bankrupt automaker, some research suggests that sales fall off a cliff, Henderson said.Chrysler LLC requested $5 billion in new loans on top of the $4 billion it received in December. That's $2 billion more than expected.Both requests were part of restructuring plans the two automakers owed the government in exchange for earlier loans.Treasury Secretary Timothy Geithner, who will lead an Obama administration task force reviewing the plans, said his team would meet later this week to analyze the companies' plans and to solicit the full range of input from across the administration.Dearborn, Mich.-based Ford, which borrowed billions from private sources before credit markets tightened, has said it can make it through 2009without government help.GM and Chrysler plan to reduce the number of models they offer. GM raised the possibility its Saturn brand could be phased out and said its Swedish-based Saab unit could file bankruptcy this month.The restructuring plans must be vetted by the Obama administration's new autos team. President Barack Obama's top spokesman told reporters aboard Air Force One on Tuesday that he wouldn't rule out bankruptcy for the Detroit automakers.The GM job cuts include 10,000 salaried and 37,000 blue-collar positions, amounting to 19 percent of its current global work force of 244,500. Jobs outside the U.S. account for 26,000 of the reductions.

The cuts would take place by the end of this year, and more would follow: The new plan has the U.S. work force declining from about 92,000 hourly and salaried employees at year-end 2008 to 72,000 by 2012. Wagoner said the new plan was significantly more aggressive than the one presented to the government on Dec. 2 because the global economy and auto sales had deteriorated swiftly. Chrysler had 54,007 employees at the end of 2008, so Tuesday's cuts would equal about 6 percent of its work force. Auburn Hills, Mich.-based Chrysler said it now projects that automakers will sell 10.1 million vehicles in the U.S. this year, the lowest level in four decades.We have continued to see an unprecedented decline in the automotive sector, Chrysler Chief Executive Bob Nardelli said. Chrysler will eliminate the Dodge Aspen, Durango and Chrysler PT Cruiser, company president Jim Press said. The Aspen and Durango, both large sport utility vehicles, have sold poorly while the PT Cruiser, released to much fanfare in 2000 due to its retro look, has also slumped in sales.Detroit-based GM said it plans to sell or spin-off its Saturn brand. If those attempts are unsuccessful, GM will phase it out by 2011. GM is discussing the sale of its Hummer division and could complete the talks by March. The automaker has also sought buyers for its Saab unit. Selling or eliminating those brands would leave GM to focus on Chevrolet, Cadillac, GMC and Buick, with Pontiac reduced to one or two models.GM would also reduce the number of vehicle models, dropping the nameplates from 48 in 2008 to 36 by 2012, four fewer models than in the December plan. All of GM's major U.S. vehicle launches from 2009 to 2014 would be high-mileage cars and crossovers.Details were unveiled the same day President Barack Obama signed into law a massive economic recovery plan. Signs that the recession was deepening were more immediate for investors, however, and they dumped stocks and pushed oil prices sharply lower.The UAW said discussions were continuing regarding the union-run trust fund that will take on retiree health care expenses starting next year. Terms of the union deal were not announced, but they were expected to eliminate the jobs bank in which laid-off workers get most of their pay, as well as changes that make the companies' labor costs competitive with their Japanese counterparts that have U.S. factories.The changes will help these companies face the extraordinarily difficult economic climate in which they operate, UAW President Ron Gettelfinger said in a statement.

GM Chief Financial Officer Ray Young said the company hopes to exchange two-thirds of its roughly $28 billion in unsecured bond debt by the end of March. Bondholders, he said, signed a letter saying that they were making progress with the company.
House Speaker Nancy Pelosi, D-Calif., said she was hopeful the plans would help lead to the transformation of our domestic automobile industry into a viable, technologically advanced, and globally competitive manufacturing force.AP Auto Writers Dan Strumpf in New York and Kimberly S. Johnson in Detroit contributed to this story. Associated Press Writer Ken Thomas reported from Washington.

Obama wants to reopen NAFTA but keep trade flowing By Randall Palmer FEB 17,09

OTTAWA (Reuters) – President Barack Obama said on Tuesday he still wants to reopen the North American Free Trade Agreement, despite a warning from Canada that this would be a mistake, but he said he did not want to end up curbing trade.In an interview with the Canadian Broadcasting Corp, shortly before his visit to Ottawa on Thursday, Obama also declined to characterize oil from Canada's vast oil sands region as dirty oil which should somehow be curtailed.Obama had alarmed Canada during the Democratic primaries last year when he advocated renegotiating NAFTA, and he reiterated this goal on Tuesday while recognizing these were sensitive economic times.As I've said before, NAFTA, the basic framework of the agreement, has environmental and labor protections as side agreements. My argument has always been that we might as well incorporate them into the full agreement so that they're fully enforceable, he said in the interview with CBC television.However, he also said: I think there are a lot of sensitivities right now because of the huge decline in world trade.Obama noted there was $1.5 billion in trade between Canada and the United States every day, adding: It is not in anybody's interest to see that trade diminish.When Obama raised the issue of toughening up NAFTA on the campaign trail a year ago, Canadian Prime Minister Stephen Harper said if Washington made the mistake of opening the agreement, Ottawa would bring other issues to the table for renegotiation.Later in the year Harper said Canada's energy exports to the United States would enable it to negotiate from a position of strength.The energy industry and environmentalists are watching Obama carefully for any moves that might damage Canada's oil sands sector, which offers huge reserves of secure crude but produces high emissions of greenhouse gases.

Obama acknowledged that oil sands create a big carbon footprint but he said the United States and Canada should collaborate on ways to sequester carbon, preventing it from being emitted into the atmosphere.Ultimately, I think this can be solved by technology. I think that it is possible for us to create a set of clean energy mechanisms that allow us to use things not just like oil sands, but also coal, he said.The United States is the Saudi Arabia of coal, but we have our own home-grown problems in terms of dealing with a cheap energy source that creates a big carbon footprint.A Canadian official indicated to Reuters that it was possible that an agreement between Harper and Obama to present a common front on pursuing clean energy could emerge from Thursday's meeting.A U.S. environmentalist, reacting on Tuesday to Obama's comparison of coal and the oil sands, said a key difference was that development of the oil sands was growing.It's really that expansion that's of great concern, said Susan Casey-Lefkowitz of Natural Resources Defense Council.

Any kind of special exemption or protection that would be given under greenhouse gas regulations for especially the expanding tar sands industry just seems to be totally at odds with the commitment that both of our countries have made to fight global warming.In his interview, Obama also praised Canada's management of its financial system in contrast to the United States.I think that's important for us to take note of, that it's possible for us to have a vibrant banking sector, for example, without taking some of the wild risks that have resulted in so much trouble on Wall Street, he said. And he said Canadians should not be too concerned by the buy American clause in the stimulus bill he just signed. (Additional reporting by Jeffrey Jones in Calgary; editing by Rob Wilson)

Tuesday, February 17. 2009 Symposium Planned To Discuss Implementation of Nationwide Mileage-Based Taxing System By Harold Gray

LINKS TO STORY
http://tti.tamu.edu/conferences/mbuf09/program.htm
http://tti.tamu.edu/
http://justgetthere.us/blog/archives/States-Consider-Mileage-Tax.html
http://justgetthere.us/blog/archives/Statewide-Poll-NC-Mileage-Tax-Is-Unpopular-Idea.html
http://justgetthere.us/blog/archives/Nevada-Looking-To-Replace-Gas-Tax
-With-Mileage-Tax.html
http://justgetthere.us/blog/archives/Obama-Transition-Team-Examines-Congestion-Tax.html

JustGetThere | Public officials from several states are gathering in Austin, Texas this April for a symposium to discuss the implementation of a nationwide, mileage-based taxing system to replace the gas tax.Spearheaded by the Texas Transportation Institute, this symposium will feature representatives from several state transportation departments such as, Oregon, Minnesota and Texas. Over the course of this two day event, several panel sessions are planned to discuss past, current and upcoming pilot studies for the mileage tax, legislative and policy issues, public acceptance challenges, potential technology applications, and institutional issues.

Several states across the nation, are seeking to implement a mileage tax for drivers to generate more tax revenue, some states are even talking about having gas and mileage taxes. The idea of a tax by the mile GPS system, being monitored and maintained by state or federal governments is about as Orwellian as you can get, and is extremely unpopular according to several polls.The proponents reasoning behind the mileage tax, is that states have lost tax revenue from the transition to higher fuel efficient cars by the public. We have been pushed towards green cars by government and man-made global warming alarmist, in order to reduce our carbon footprint, as well as our dependence on foreign oil. The drivers who have switched to higher fuel efficient cars will be rewarded by a new nationwide taxing and tracking grid that will give birth to another government bureaucracy. This will create the potential for more of the same corruption, privacy concerns and overbearing tax system that Americans are becoming all to familiar with. The technology that will be used is a RFID embedded sticker and GPS satellite boxes installed in all vehicles and gas stations. This type of system will require a total revamp of all fuel stations, along with the auto industry in order to make this happen. The hefty price tag for such a massive change in our transportation system will of course be somewhat funded by the federal government, but with strings attached. The government always has stipulations attached to the funds they relinquish to the states. So, the possibility exists that states who are not actively participating in the move for a nationwide system, will have transportation funding dropped. The Obama administration is seeking to transform the nations transportation system to this tax by mile model and has even sought advice from officials in the UK that are currently using it. The newly appointed Transportation Secretary, Ray LaHood is also a big supporter of this idea as, stated on his blog.

Trials of this system began in Oregon in 2006 and were deemed a success by their Governor, Ted Kulongoski, who is pushing hard for state legislation in the upcoming session. In the 2007 test which lasted 10 months with 300 motorists at two service stations, drivers were taxed 1.2 cents per mile and were refunded the 24 cents a gallon state gas tax. When the motorists got to the pump, their vehicles connected to government computers informing them of the mileage (calculated via GPS tracking) and issuing tax. With the global financial crisis now affecting several states, lawmakers nationwide are promoting new bills to start the transition to a mileage tax. Although the move for a mileage tax has been in process for many years, now they can use the financial crisis as the excuse to push it onto the people. The biggest problem that lies before them is the publics reaction to the idea of being taxed by the mile. Creating an effective PR campaign, paid for by our taxes, will be crucial in order to sell this as a necessary and good move for the people. A tough sell, considering the publics confidence level of government, big brother aspects of the plan, a possibility of increased taxes on a already cash-strapped public and the potential for more mismanagement of funds and corruption by public officials.

Several examples I foresee include an initial increase of tax for every driver just to pay for this system, and a perceived penalty on those who chose to buy gas efficient cars. There could also be instances where an older person on a fixed income, who cannot afford a new car, will be taxed more using their older vehicle. The potential will also arise, with this per mile tax system, that some loopholes could be built in that could be exploited. Thus, enabling public officials to pay lower taxes or none at all, which has already occurred with the EZ Pass toll tag system. What about the potential lost revenue from other equipment that use gas such as, lawn mowers, weed eaters, dirt bikes, 4 wheelers, snowmobiles, generators, power washers, air compressors, forklifts, wood chippers, chain saws, leaf blowers, snow throwers, ice fishing drills, and boat motors to name a few. Although this would be hard to estimate, I'm sure this revenue will also be tacked onto the per mile tax.

The mileage tax will also have the ability to control your movements by creating peak and off peak hours which will yield different tax rates. Even driving on different days and areas within the state will yield different rates. I can also visualize scenarios in which the city or state will designate high congestion days, such as Thanksgiving and July 4th, or even hours of increased celebration such as New Years Eve to reduce the potential for drunk drivers on the road. Remember, it will all be pitched for your safety and the possibilities for continuous changes to the tax rate on a whim will be endless. Raising the gas tax is a common sense answer to the problem, but would eliminate the need for increased federal entanglement with the states, in turn limiting the growth of big government. This would also prevent the emergence of a centralized big brother system with the ability to tax, trace and track all movements by the people. Government always seeks to expand their power through crisis, and cement their control through legislation. Once they gain control, it is never relinquished and when their plan fails, the solution is always more money and control. We cannot afford to take another leap of faith and trust this regressive shift in the way we live our daily lives. If it's all about lost revenue from higher fuel efficient vehicles, why not just raise the gas tax.

Israel engaged in covert war inside Iran: report By Luke Baker Luke Baker – Tue Feb 17, 7:07 pm ET

LONDON (Reuters) – Israel is involved in a covert war of sabotage inside Iran to try to delay Tehran's alleged attempts to develop a nuclear weapon, a British newspaper said on Tuesday, quoting a former CIA agent and intelligence experts.An intelligence source in the Middle East told Reuters last year Israel planned to target Iranian nuclear scientists with letter bombs and poisoned packages and had set off explosions in Iran. Analysts offered similar accounts and said such tactics would be credible, but no confirmation has been available.Some analysts caution that reports of such a dirty war may form part of a psychological warfare campaign to unsettle Iran.The intelligence source told Reuters that Israeli agents were working with Western governments and firms doing business with Tehran, whose Islamist leadership is a sworn enemy of Israel but denies accusations its nuclear program has a military purpose.Israel's government, widely assumed to be the only nuclear power in the Middle East, declines all comment on such reports.Israel has launched a covert war against Iran as an alternative to direct military strikes against Tehran's nuclear program,Britain's Daily Telegraph said on Tuesday. It is using hitmen, sabotage, front companies and double agents to disrupt the regime's illicit weapons project, the experts say.Quoting intelligence experts and an unnamed former CIA agent, the newspaper said Israel's decapitation strategy had targeted members of Iran's atomic program, hoping to set back the country's nuclear ambitions without resorting to war.

SABOTAGE GOING ON

Meir Javendafar, an Iran expert at Meepas, a Middle East analysis group, told Reuters there were also reports Iran was being sold faulty equipment for its nuclear program, and that there were attempts to disrupt the electricity supply to Natanz, a uranium enrichment facility in central Iran.I think there is sabotage going on. It's a logical move and it makes sense in the game that is part of the overall struggle to disrupt Iran's nuclear ambitions, he said.As evidence of Israel's reported strategy, Iran watchers have pointed to events such as the death of Ardeshire Hassanpour, a nuclear scientist at the Isfahan uranium plant who died at home from apparent gas poisoning in 2007.The former CIA agent told the Telegraph: Disruption is designed to slow progress on the program, done in such a way they don't realize what's happening. The goal is delay, delay, delay until you can come up with some other solution.It's a good policy, short of taking them out militarily, which probably carries unacceptable risks.Asked about the newspaper report, Mark Regev, a spokesman for Israeli Prime Minister Ehud Olmert, told Reuters: It is not our practice to comment publicly about these sorts of allegations, not in this situation, not in any situation.New U.S. President Barack Obama has taken a more diplomatic line with Tehran, quietening former Bush administration talk of a possible military strike against Iranian nuclear assets.Israeli leaders have been careful not to rule out their military options, though analysts question how far a new Israeli government, still to be formed after last week's parliamentary election, will be prepared to act without Washington's backing.Javendafar said there were indications several states were attempting to infiltrate Iran to disrupt nuclear development but also suggested much of the reported clandestine activity was more part of a psychological war than an actual one of sabotage.Numerous intelligence agencies are trying their best to do this. Not just Israel, but the Americans and many European spy agencies, he said. If it's true, then it's putting pressure on the Iranian program technically. Even if there's no truth to it, it's part of what is a massive psychological war against Iran's nuclear program ... It's ... much more affordable than sabotaging equipment.(Editing by Janet McBride)

EU citizenship concept to be fleshed out
VALENTINA POP 17.02.2009 @ 09:12 CET

EUOBSERVER/BRUSSELS – EU citizenship should mean freedom of movement, consular protection abroad and trans-national voting, but its enforcement depends on member states, European justice commissioner Jacques Barrot told a parliamentary committee on Monday (16 February).Although enshrined in the current treaties, EU citizenship still looks more like an imaginary concept, Mr Barrot said during a hearing in the parliament's civil liberties, justice and home affairs committee. He said the concept of EU citizenship would be fleshed out in the upcoming review of justice and home affairs policies nicknamed the 'Stockholm programme' in the second half of this year.Polish conservative MEP Urszula Gacek, the parliament's rapporteur on EU citizenship, highlighted that during the recent Mumbai bombings, several MEPs were literally standing in their pyjamas out on the streets, but were not able to receive help from the closest embassy of an EU country. If a European member of parliament does not manage to get consular protection, what about ordinary citizens? she asked.

But Ms Gacek admitted that some member countries with large diplomatic services, such as France, might feel reluctant to offer aid to EU nationals from smaller countries, fearing such provision could be abused.Additionally, consular protection differs from member state to member state, Ernesto Bianchi, a commission official for citizenship and fundamental rights, explained.Consular protection is mandatory for instance in Denmark, but it is provided only by courtesy in the United Kingdom, he pointed out.

Danger of reverse discrimination

Problems appeared also in the effects of freedom of movement for EU nationals, Mr Bianchi added.Sometimes it is difficult for national politicians to explain to their public why other nationals who travelled to a different EU country had more rights than the rest - a situation he called reverse discrimination.A Dane, for instance, when living and working in his home country, must follow Danish immigration law if he wants to marry a non-EU national and possibly face restrictions if the spouse has a suspicious record or has previously stayed in Denmark illegally.But if the Dane is living in Italy and marries the same non-EU national under Italian law, he is entitled to return to Denmark together with his spouse, due to the principle of freedom of movement, Mr Bianchi explained.Ms Gacek's draft report also criticises discrimination against EU citizens from other countries and urges the commission to take appropriate actions when inter-EU migrants are not able to enjoy their full rights as EU citizens.Member states and local authorities should facilitate transfer of vehicle registrations, recognition of insurance policies issued in another EU country, the transfer of medical records and maintain clear rules on the re-imbursement of medical expenses, the document reads.