"The U.S. might really have to look at a default on the bankruptcy reorganization of the present financial system" AND THE BANKRUPTCY OF THE GOVERNMENT IS NOT OUT OF THE REALM OF POSSIBILITY, Hennecke said. "In the United States there is already a funding crisis, and they will have to sell a lot more bonds next year to fund the bailout packages that have already been signed off," Hennecke told CNBC.

In order to solve or stem the economic slowdown, Hennecke suggested THE US WOULD HAVE TO RADICALLY REDUCE SPENDING ACROSS ALL SECTORS AND RECALL ALL ITS TROOPS FROM AROUND THE WORLD. As for a stimulus package, THERE IS NOT MUCH OF AN INDUSTRY LEFT TO STIMULATE BACK INTO LIFE, Hennecke said.

The pound fell below $1.50 to its lowest level for more than six years against the greenback, reaching $1.489 at one point. The rout continued against the euro as the pound breached the 1.20 level to hit a record low of 1.188. The currency's tumble is bad news for holidaymakers but could eventually give some respite to UK exporters facing a sharp slowdown in demand. IN NOVEMBER LAST YEAR - WHEN UK RATES WERE STILL AT 5.75 PER CENT - ONE POUND BOUGHT $2.11. STERLING WAS ALSO TRADING AT 1.40 AGAINST THE EURO.

CMC Markets analyst James Hughes said: 'Anything that points towards yet more cuts at the start of next month will have the potential to heap yet more pressure on the pound.' The BoE's quarterly report showed UK inflation falling to just below 1 per cent in two years, marking a sharp contrast with current consumer prices of 5.2 per cent.

In addition, BoE Governor Mervyn King said THE BANK WOULD BE PREPARED TO CUT RATES AGAIN IF NEEDED after last week's 1.5 per cent interest rate cut that took benchmark rates to three per cent. 'IF YOU ARE A UK POLICYMAKER RIGHT NOW IT'S HARD TO FIND ANYTHING POSITIVE TO TALK ABOUT,' said Audrey-Childe Freeman, senior FX strategist at Brown Brothers Harriman in London.

He warned Britain's economy could shrink by at least 2 per cent during 2009, pushing inflation into negative territory for the first time in almost half a century. A worst-case scenario could see a slump of more than 3 per cent in gross. Former Tory Chancellor Ken Clarke, who led Britain's recovery from Black Wednesday, warned the economy was heading for a 'CATASTROPHIC CRISIS' far worse than 'anything that has occurred in my lifetime'.

The Bank of England yesterday warned there is a 20 per cent chance THE UK COULD SPIRAL INTO DEFLATION in 2010. Deflation is the inverse of inflation, and is seen as one of the worst economic diseases a country can catch. It involves a massive squeeze on lending, which leads to sustained falls in prices on the High Street.

For those with large debts, the consequences are disastrous. During inflation, debts become easier to service over time as the value of money is eroded. But with deflation the opposite happens, resulting in rocketing debt defaults and more trouble for the banking sector. THIS LAST STRUCK THE U.S. AND EUROPEAN ECONOMIES DURING THE GREAT DEPRESSION OF THE 1930S.

According to CreditSights, a research firm in New York and London, THE U.S. GOVERNMENT HAS PUT ITSELF ON THE HOOK FOR SOME $5 TRILLION, SO FAR, in an attempt to arrest a collapse of the financial system. The estimate includes many of the various solutions cooked up by Paulson and his counterparts Ben Bernanke at the Federal Reserve and Sheila Bair at the Federal Deposit Insurance Corp., as the credit crisis continues to plague banks and the broader markets.

The Fed has taken on much of that total, including lending a cumulative $1 trillion in overnight or short-term loans since March to primary dealers through its emergency discount window and making a cumulative $1.8 trillion available through its term auction facility, a series of short-term transactions it began making available twice a month in January. It should be noted that a portion of the funds lent in these programs has been repaid and that the totals represent what has been made available.

David Hendler, an analyst at CreditSights, says it looks as if government is left holding the bag, and of course that translates into everyone. "THE LOSSES HAVE TO BE TAKEN, BUT NO ONE WANTS TO TAKE THEM," Hendler said at a conference Wednesday, speaking about the banks and their handling of troubled assets. "IT SEEMS LIKE THE TAXPAYERS ARE GOING TO BE TAKING A GOOD PORTION OF THAT."

The price of insuring Russian debt soared as credit market sentiment turned dramatically against Russia and some of its leading companies. RUSSIA'S RTS STOCK EXCHANGE INDEX FELL 12.5 PER CENT IN THE FIRST THREE HOURS OF THE SESSION BEFORE TRADING WAS SUSPENDED FOR THE REST OF THE DAY. Trading was halted on the more liquid Micex stock exchange on Tuesday following a steep slide and it remained closed on Wednesday. Both exchanges are scheduled to reopen on Thursday.

Finance Minister Alexei Kudrin told Russia's upper house of parliament that the government would be announcing more measures to support the economy, on top of a $200bn bail-out plan already announced. "You will see more support measures for the economy this week. I think we will need to work hard for at least another year," he said. The Russian economy has been badly hit by the falling price of oil, Russia's chief export, which has caused a loss of confidence in the rouble.

The Dow Jones industrials dropped more than 410 points, and all the major indexes lost more than 4 percent. THE STOCK MARKET HAS LOST ABOUT $1 TRILLION OVER THE PAST THREE DAYS, according to the Dow Jones Wilshire 5000 index, which reflects the value of nearly all U.S. stocks.

"THERE JUST DOESN'T APPEAR TO BE AN END IN SIGHT TO THE BAD NEWS," said Anton Schutz, portfolio manager of the Burnham Financial Industries Fund and the Burnham Financial Services Fund. "THE SELLING IS RELENTLESS."

Overseas, Japan's Nikkei closed down 1.29 percent and Hong Kong Hang Seng fell 0.73 percent. In Europe, London's FTSE 100 fell 1.52 percent, Germany's DAX fell 2.96 percent, and France's CAC-40 dropped 3.07 percent.

A "tall black man" commanding "the strongest army on earth" will take power "in the west." He will carry "a clear sign" from the third imam, Hussein. Ali says of the tall black man: "Shiites should have no doubt that he is with us." Barack Hussein in Arabic means "the blessing of Hussein." In Persian, Obama translates as "He [is] with us." Thus does the name of the presumptive American president-elect, when combined with his physical attributes and geography, SUGGEST THAT THE END OF TIMES IS NIGH – precisely what Iranian president Mahmoud Ahmadinejad has been predicting.

Back down on earth, the Muslim reaction to Obama's victory is more mixed than one might expect. American Islamists are delighted; an umbrella group, the American Muslim Taskforce on Civil Rights and Election, opined that, with Obama's election, "Our nation has … risen to new majestic heights."

Hamas, and Islamist movements in Egypt, Jordan, Iraq, India, Indonesia and the Philippines delighted in Obama's election. Robert Spencer of Jihad Watch generalizes that jihadists and Islamic supremacists worldwide showed "unalloyed joy." The New York Times finds public reaction in the Middle East mostly "EUPHORIC." John Esposito of Georgetown University emphasizes the Muslim world's welcome to Obama as an "INTERNATIONALIST PRESIDENT."

Iran's hardliners also favored a McCain victory (according to Iran's former Vice President Mohammad Ali Abtahi) "BECAUSE THEY BENEFIT MORE FROM ENMITY WITH THE U.S., which allows them to rally the Islamic world behind their policies and at the same time suppress dissent at home."

After last week's informal EU summit, European leaders stated that the EU would like to be a trail-blazer in overcoming the world's financial crisis. Concrete proposals have been elaborated for next weekend's World Financial Summit, WHICH COULD PROVOKE A POWER STRUGGLE WITH THE UNITED STATES, because they are diametrically opposed to US priorities and are seeking to weaken the US position in the global financial system.

THE DAYS OF THE DOLLAR'S UNCONTESTED PREDOMINANCE ARE OVER, and it is about time that the Euro's growing importance is reflected in the rules of the world's financial exchanges, French President Sarkozy declared in the name of the EU. German government advisors see a certain risk: if the EU surges ahead, it would likely end in failure. The German government is attempting to camouflage its German-European offensive for gaining influence as a transatlantic alliance "renewal" proposal, supplemented with proclamations of sympathy for President-elect Barack Obama.

The EU's insisting tone is being attentively registered in the United States, particularly since the EU's proposals are diametrically in contradiction with Washington's interests. Berlin and Brussels are demanding that "NO FINANCIAL INSTITUTION, NO MARKET SEGMENT AND NO JURISDICTION MUST ESCAPE PROPORTIONATE AND ADEQUATE REGULATION OR AT LEAST OVERSIGHT," Over the past few years, the USA - not least because of cooperation with numerous EU countries including Germany - increased its fortune, thanks to the deregulation of financial markets and is refusing to comply with extensive international rules and regulations. SERIOUS CONFLICTS CAN BE EXPECTED.

Ads proclaiming, "WHY BELIEVE IN A GOD? Just be good for goodness' sake," will appear on Washington, D.C., buses starting next week and running through December. The American Humanist Association unveiled the provocative $40,000 holiday ad campaign Tuesday. In lifting lyrics from "Santa Claus is Coming to Town," the Washington-based group is wading into what has become a perennial debate over commercialism, religion in the public square and the meaning of Christmas.

"We are trying to reach our audience, and sometimes in order to reach an audience, everybody has to hear you," said Fred Edwords, spokesman for the humanist group. "Our reason for doing it during the holidays is there are an awful lot of agnostics, atheists and other types of non-theists who feel a little alone during the holidays because of its association with traditional religion."

The humanists' entry into the marketplace of ideas did not impress AFA president Tim Wildmon. "It's a stupid ad," he said. "HOW DO WE DEFINE 'GOOD' IF WE DON'T BELIEVE IN GOD? God in his word, the Bible, tells us what's good and bad and right and wrong. IF WE ARE EACH OURSELVES DEFINING WHAT'S GOOD, IT'S GOING TO BE A CRAZY WORLD."

Stock markets and commodity prices fell as gloomy data from major economies and an ever-worsening corporate outlook convinced investors the world was heading into a long, painful downturn. U.S. President-elect Barack Obama on Tuesday urged the Bush administration to back a second stimulus package for the world's biggest economy and aid to the stricken car industry.

Corporate profit warnings mounted and General Motors shares fell to levels not seen since World War Two. "Whether it's economic indicators or company news, it's just too awful," said Takashi Ushio, head of the investment strategy division at Marusan Securities in Tokyo.

World Bank President Robert Zoellick warned global trade may drop next year for the first time in more than a quarter of a century as the world-wide credit crisis cuts into trade financing. "IT IS OUR ESTIMATE THAT TRADE COULD ACTUALLY FALL, not grow more slowly or have growth fall, but actually fall next year, FOR THE FIRST TIME SINCE 1982," Zoellick said in an interview with Reuters ahead of a meeting of world leaders.

But, it warned, there was a "major gap" in research and it would not recommend clothes with nanoscale silver. It is thought around 600 products - such as cosmetics, sunscreen and clothing - contain the particles. AT ISSUE IS THE FACT THAT AT SUCH TINY SCALES, MATERIALS BEHAVE DIFFERENTLY THAN THEY DO WHEN THEY COMPRISE LARGER OBJECTS. Professor Sir John Lawton, the commission's chairman, cited fibres made from carbon nanotubes as an example. "Carbon nanofibres are fundamentally different from graphite," he said.

Another potential concern is NANOPARTICULATE SILVER, which has made its name recently as a highly effective bacteria killer. It has been incorporated into fabrics to prevent the bacterial build-up that causes odours. But as it is worn away during washing, nanosilver's bacteria-killing properties could wreak havoc on delicate ecosystems, or municipal waste water systems that depend on bacteria. "We are concerned about nanosilver in clothing getting into the environment because it could be potentially very damaging," Sir John said.

"I wouldn't recommend nanosilver clothes and I wouldn't wear them myself. At the moment the concentrations are way below anything likely to do damage, but if it became common, it could lead to problems."

He promised the "most open and transparent" ever handover of power. Both Mr Obama, who takes office on 20 January, and Sen McCain railed against lobbyists during the election campaign, ACCUSING THEM OF PEDDLING FAVOURS AND INFLUENCE TO SWAY CAPITOL HILL LAWMAKERS IN A CULTURE OF CORRUPTION.

At a briefing in Washington, Mr Podesta told reporters Mr Obama had "pledged to change the way Washington works and curb the influence of lobbyists". Under the new measures, Mr Obama will not allow lobbyists actively petitioning the federal government to work with the transition, said Mr Podesta. The guidelines will also prevent anyone who has acted as a lobbyist over the last 12 months from working on any policy area in the transition in which they had been active.

He added that anyone who works on the transition and then becomes a lobbyist will be barred from approaching the administration for 12 months in the area in which they worked.

As world leaders try to deal with the biggest financial crisis since the Great Depression, President Dmitry Medvedev is echoing his French and British counterparts in calling for far reaching changes to the world financial system.

"We will need a new international agreement. The financial system must have common sources, which implies a multiplicity of world financial centres and reserve currencies. We need to form a new risk-management system, which would be based on new techniques, not the principles that the Bretton Woods agreement was based on," Medvedev said. NOW MEDVEDEV IS ESSENTIALLY CALLING FOR A LOWERED DEPENDENCE ON THE DOLLAR, according to experts. They say it would reduce U.S. influence on the world economy.

The world will be watching the G-20 meeting in Washington in mid-November, which will be the first to bring together the developed and the developing nations, for the answers.

Some manufacturers believe the technology can deliver the benefits of products in a more effective way. But critics say the size of THE PARTICLES MAY ALLOW THEM TO PERMEATE PROTECTIVE BARRIERS IN THE BODY, SUCH AS THOSE SURROUNDING THE BRAIN OR A DEVELOPING BABY IN THE WOMB. Their scale also changes the way they interact with other cells, WHICH MIGHT LEAD TO UNFORESEEN TOXIC EFFECTS.

Following a report which raised concerns that some firms are not declaring their use of nanoparticles, 'Which? Magazine' Has called for the so-called 'grey goo' technology to be banned unless it is proved to be safe. Its concerns have been backed by Professor Dame Ann Dowling, of the Royal Society, the UK's independent science academy. She has condemned the beauty industry for failing to provide information on safety testing and use of the controversial ingredients.

Research by 'Which?' Found that 87 per cent of customers are unaware that the technology is in use. The consumer group wrote to 67 cosmetics companies asking them about their use of nanotechnology, the benefits they thought it brought and how they ensured product safety. Only 17 responded - and only eight were willing to provide information about their use of nanotechnology or particles.

The two most common ingredients are Ultrafine titanium dioxide and Zinc oxide

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The plan aims to merge the Common Market for Eastern and Southern Africa (Comesa), the East African Community (EAC) and the Southern African Development Community (Sadc) into one regional economic market. LOCAL REPORTS SAID THE MERGER WOULD CREATE A FREE TRADE AREA COMPRISING OVER 527 MILLION PEOPLE AND A COMBINED GDP OF $624 BILLION. Leaders said they asked a tripartite task force to work on a 'roadmap' to implement the merger within six months.

They also said they work towards setting up a single customs union. But local reports said the merger may have to overcome several hurdles to become a reality including some countries' multiple memberships to various trade blocs. Some also fear weaker economies of being flooded by goods from stronger counterparts like South Africa and Egypt. Uganda's President Yoweri Museveni welcomed the agreement, stating that regional integration is a strategic tool that can ensure the future prosperity of Africa.