The Federal Reserve's rescue has failed

By Ambrose Evans-Pritchard, International Business Editor
The verdict is in. The Fed's emergency rate cuts in January have failed
to halt the downward spiral towards a full-blown debt deflation. Much
more drastic action will be needed.   
The Federal Reserve building in Washington
Evans-Pritchard: Defending scaremongers
'Ninja' loans explode on sub-prime frontline
The latest news and views on the credit crisis
Yields on two-year US Treasuries plummeted to 1.63pc on Friday in a
flight to safety, foretelling financial winter.
The debt markets are freezing ever deeper, a full eight months into the
crunch. Contagion is spreading into the safest pockets of the US credit
It is hard to imagine a more plain-vanilla outfit than the Port
Authority of New York and New Jersey, which manages bridges, bus
terminals, and airports.
The authority is a public body, backed by the two states. Yet it had to
pay 20pc rates in February after the near closure of the $330bn (£166m)
“term-auction” market. It had originally expected to pay 4.3pc, but
that was aeons ago in financial time.
“I never thought I would see anything like this in my life,” said James
Steele, an HSBC economist in New York.
No sane mortal …

In a massive disaster, care will be scarce

State guidelines lay framework for deliberately letting some people die.
By Dorsey Griffith
Older, sicker patients could be allowed to die in order to save the
lives of patients more likely to survive a massive disaster, bioterror
attack or influenza pandemic in California.
It's not how nurses and doctors are accustomed to doing things, nor how
Californians expect to be treated. But it is part of a sweeping
statewide plan being praised for its breadth, even as it rankles
providers who will have to carry it out.
The new “surge capacity guidelines” released by the state Department of
Public Health, depict a post-disaster health care environment that
looks and feels nothing like the system most Californians depend on.
It provides for scenarios in which patients could be herded into school
gymnasiums for life-saving care or animal doctors could stitch up the
human wounded and set their broken bones.
The 1,900-page document lays the practical – and ethical – groundwork
for local and county health departments, hospitals, emergency
responders and any able-bodied health care worker likely to be called
upon in a catastrophe.
Striking in its specificity and its frank focus on the need to suspend
or flex established laws and …

Obama's truthiness about Farrakhan

By Diana West | Transfixed by the two-candidate
“horse race,” maybe we didn't focus precisely on what happened in the
homestretch of the last Democratic debate when Barack Obama tried to
pick and nuance his way through a straight-ahead question from MSNBC's
Tim Russert.
Q: Do you accept the support of Louis Farrakhan?
The question arose because the longtime racist and anti-Semitic leader
of the racist and anti-Semitic Nation of Islam had delivered a two-hour
speech devoted mainly to praising Obama's candidacy.
Here is Obama's answer: “You know, I have been very clear in my
denunciation of Minister Farrakhan's anti-Semitic comments. I think
they are unacceptable and reprehensible. I did not solicit this
support. He expressed pride in an African-American who seems to be
bringing the country together. I obviously can't censor him, but it is
not support that I sought. And we're not doing anything, I assure you,
formally or informally, with Minister Farrakhan.”
“Minister” Farrakhan? The honorific seems unduly deferential applied to
a demagogue who, just to recall a few pearls of his noxiousness, has
labeled Judaism a “gutter religion,” said “the white man” is “the
anti-Christ,” and suggested the post-Katrina failure of the New Orleans
levees …

Donkey spotted transporting Hamas missile

The Palestinian Arabs regularly accuse Israel of intentionally targeting their civilian population in a cruel attempt to ethnically cleanse all non-Jews from the region.
That accusation, especially during times of escalating violence, is more often than not echoed by the international community.
Israel, meanwhile, maintains that it has no desire to harm Palestinian civilians, but finds itself forced to put them in harms way because Palestinian terrorists insist on violating international law by operating out of civilian population centers and disguising themselves as civilians.
Case in point: During the heavy weekend fighting in and around the Gaza Strip, Israeli aerial surveillance spotted a donkey-drawn cart transporting a concealed Katyusha missile through an agricultural grove outside Gaza city.
Had Israeli forces attacked the cart and killed its driver, they certainly would have been accused by both the Arabs and the world of murdering a “Palestinian civilian,” a simple farmer at work in his fields.
However, the fact that farmer was transporting a missile to be used in an attack against Israeli civilians made him a legitimate military target, under international law.
In light of this and many similar incidents, not to mention the terrorists' cynical use of the civilian population as …

Jewish public officials nearly lynched in Jerusalem

Two Jerusalem public officials on Monday recounted for Israel National News and Mayor Uri Lupolianski their near lynch at the hand of an Arab mob earlier in the day in the Israeli capital.
The victims, both municipal inspectors, said that after turning down a main road in an Arab-dominated area of downtown Jerusalem, they were suddenly forced to stop their car after coming upon burning dumpster pushed into the middle of the street.
As soon as their car had stopped, dozens of Arab men hurling glass bottles and wielding large metal bars attacked the vehicle. The two Jewish men managed to escape by driving their car onto the sidewalk, but said that the mob most certainly intended to do them physical harm.
Israeli security officials cited by Israel National News said the eruption of violence among Jerusalem Arabs over the past few days has been anything but a spontaneous response to the escalating fighting in and around Gaza, as Arab officials have tried to portray it.
The sources said ongoing riots and violent demonstrations by the capital's Arab residents is being planned and incited by elements that want to ignite bloodshed in the city and even spark a third intifada, …

IDF prepares to unleash the 'Tiger'

Rebecca Anna Stoil
The IDF officially unveiled a new vehicle on Sunday designed to get infantry to and from the battlefield more efficiently.
The Tiger, a heavy infantry fighting vehicle built on the chassis of the Merkava 1 battle tank, “will be a significant aspect of operations in infantry brigades and will allow us to better perform ground maneuvers in order to achieve decision on the battlefield,” said OC Ground Forces Command Maj.-Gen. Avi Mizrahi.
A number of the vehicles would be deployed by the end of the year, Mizrahi said.
The Tiger is expected to be much more secure against anti-tank weapons, such as those used by Hamas in the Gaza Strip and by Hizbullah in Lebanon, than its predecessors.
The Tiger prototype was first displayed in March 2005 at a Low Intensity Conflict exhibition in Tel Aviv, and since then, the Merkava Tank Directorate has been working on production.
To make the Tigers, the turret, top and driver station hatch have been removed from old Merkava 1 tanks, and replaced with increased armor, including a new armored rear door that doubles as a ramp. The Merkava 1 is more than 20 years old.
The underbelly of the Tiger …