By Dennis Cauchon
The federal government recorded a $1.3 trillion loss last year — far more than the official $248 billion deficit — when corporate-style accounting standards are used, a USA TODAY analysis shows.
The loss reflects a continued deterioration in the finances of Social Security and government retirement programs for civil servants and military personnel. The loss — equal to $11,434 per household — is more than Americans paid in income taxes in 2006.
"We're on an unsustainable path and doing a great disservice to future generations," says Chris Chocola, a former Republican member of Congress from Indiana and corporate chief executive who is pushing for more accurate federal accounting.
Modern accounting requires that corporations, state governments and local governments count expenses immediately when a transaction occurs, even if the payment will be made later.
The federal government does not follow the rule, so promises for Social Security and Medicare don't show up when the government reports its financial condition.
Bottom line: Taxpayers are now on the hook for a record $59.1 trillion in liabilities, a 2.3% increase from 2006. That amount is equal to $516,348 for every U.S. household. By comparison, U.S. households owe an average of $112,043 ...   more »

In promising strategy to fight pandemic, vaccine made from survivors' blood shown to treat disease
Joseph Hall
health reporter
An international team of researchers has used antibodies derived from Vietnamese survivors of the avian flu to successfully treat and prevent the disease in mice.
And the promising and unique strategy for fighting a pandemic could be fast-tracked into human trials and provide a new tool in public health efforts to control any outbreak, according to a scientific paper published today in the Public Library of Science's online journal PloS Medicine.
After inoculating 60 mice with one of the monoclonal antibodies, 58 survived. All the mice in the control group died within 10 days. The other three antibodies made from the human blood provided "robust" protection, even 24 hours after the mice were infected.
"That was really quite remarkable because the virus actually replicates ... very rapidly in the mice," said study author Dr. Kanta Subbarao, a senior investigator with the U.S. National Institute of Allergy and Infectious Diseases in Bethesda, Md. "So we were very intrigued to see how effective treatment was after the virus was administered."
The research marks the first time human antibodies have been used to fight ...   more »

CAIRO, Egypt  —
An American member of Al Qaeda warned President Bush on Tuesday to end U.S. involvement in all Muslim lands or face an attack worse than the Sept. 11 attacks, according to a new videotape.
Wearing a white robe and a turban, Adam Yehiye Gadahn, who also goes by the name Azzam al-Amriki, said Al Qaeda would not negotiate on its demands.
"Your failure to heed our demands ... means that you and your people will ... experience things which will make you forget all about the horrors of September 11th, Afghanistan and Iraq and Virginia Tech," he said in the seven-minute video.
Gadahn, who has been charged in a U.S. treason indictment with aiding Al Qaeda, spoke in English and the video carried Arabic subtitles. The video appeared on a Web site often used by Islamic militants and carried the logo of Al Qaeda's media wing, as-Sahab.
Gadahn, who appeared in an Al Qaeda video last September in which he called on Americans to convert to Islam, demanded that Bush remove all U.S. military and spies from Islamic countries, free all Muslims from U.S. prisons and end support for Israel. He said a withdrawal of U.S. troops ...   more »