Forget the Fed. Watch China instead
By Chris Isidore
NEW YORK (CNNMoney.com) -- The central bank of greatest concern to investors and U.S. businesses right now isn't the Federal Reserve. It's the People's Bank of China. The Chinese central bank tightened credit Friday by requiring banks in China to increase their reserves for the second time this year. The move once again rattled markets around the globe. By contrast, the exit strategy that Federal Reserve chairman Ben Bernanke laid out Wednesday detailing how he expected the Fed to start tightening credit in the U.S. caused barely a ripple.

Greece use of derivatives puts more pressure on euro
Gráinne Gilmore - Times Online
The euro slid close to a nine-month low against the dollar yesterday as investors became increasingly nervous over reports that Greece used derivatives to disguise the size of its debts before joining the single currency. As eurozone ministers met in Brussels last night for talks over the Greek debt crisis, ahead of the Eurogroup meeting of finance ministers from across the European Union today, the EU asked Greek authorities to explain suggestions that they had used derivatives trades with American investment banks to allow them to meet the stringent criteria for joining the euro in 2001.

Greek drama playing out on Wall Street
Some traders comparing nation's debt crisis to Lehman Brothers bankruptcy NEW YORK Reuters - Stocks could struggle to make headway this week if a meeting of European finance ministers fails to reassure markets that they can contain Greece's debt problems. Greece's financing problems have focused investors' attention on the growing mountain of public debt as cash-strapped governments around the world spend their way out of recession. The fear is Greece's problems could spread, hurting financial markets.

EU orders Greece to cut deeper
By Ambrose-Evans-Pritchard - Telegraph UK
Brussels has given Greece two weeks to answer allegations that it used complex derivatives earlier this decade to mask its public debt, and called for even tougher austerity measures to bring its budget deficit under control. The escalating demands came as Greek finance minister George Papaconstantinou bared his soul in Brussels, confessing that public finances were out of control. "We are trying to change the course of the Titanic, it cannot be done in a day," he said. Ollie Rehn, the EU's economics commissioner, said Greece must brace itself for yet more retrenchment, despite the risk of pushing Greek society to snapping point. "There is a clear case for additional measures," he said.

Greek Bailout Increasingly Unpopular in Germany
By NICHOLAS KULISH - NY Times
BERLIN — As European finance ministers refused Monday to name specific measures to rescue Greece and the Continent’s common currency, opposition grew among Germans to bailing out what they call spendthrifts to the south after years of belt-tightening by workers at home. The fiscal crisis, shaking the Greek government while driving down the value of the euro, is forcing taxpayers and voters across Europe to confront the fact that their fortunes are tied together more closely than their politicians confessed in the late 1990s, in the rush to create the common currency over public objections.

Europe's Four Little PIGS: A Greek Tragedy
Just as the world seemed to be unshackling itself from the bonds of the Great Financial Crisis, the markets are now confronted with the potential for yet another one – this time Europe is ground zero. Specifically, it is a group of countries known as the PIGS (Portugal, Ireland, Greece and Spain). The magnitude of the crisis has left the euro damaged. Recall, only a few months ago investors were seemingly unanimous in expressing their disdain for the US dollar.

Greece, Dubai and the Threat of Sovereign Collapse
By Joel Bowman - Daily Reckoning
The Day of Reckoning is postponed, but not canceled. Markets in the US are closed today. Americans celebrate President’s Day, on which Bill offers some musings below. Trading across much of Asia is closed, too. Investors in China, Taiwan, Hong Kong, Singapore and Malaysia look to the heavens for guidance, wondering what the Lunar New Year will bring. Elsewhere in Asia, investors took stock of more earthly goings on…and hit the “sell” button. Indexes fell in Bombay, Tokyo, Sydney and across the Middle East. People are worried about the Greeks and the Dubai Emiratis. Both sovereigns are deep in debt. Both suffer crises of solvency…and both seek to delay their own Day of Reckoning, when debts must be repaid and promises met.

Kiss That V-Shaped Recovery Good-Bye:
The U.S. "Worse Than Greece," Says Economistby Peter Gorenstein - Tech Ticker -- There's been many letters and symbols used over the last year to describe the shape of the U.S. economic recovery. There's the strong V-shaped recovery; the square root shaped recovery to connote a strong recovery followed by a period of flat to no growth; and the W-shaped recovery favored by those believing in a double dip recession. Tech Ticker guest Michael Pento has a new twist on the discussion. Pento, senior market strategist with Delta Global Advisors believes this is a tee-pee shaped recovery with the top of that tee-pee having already formed in the fourth quarter.



How the U.S. can avoid the Greek problem
By Jeanne Sahadi
NEW YORK (CNNMoney.com) -- Call it the Case of the Missing Commission. The bipartisan panel that President Obama has promised would tackle the nation's long-term debt problems is nowhere in sight yet. The delay in getting the commission up and running is due in great part to partisan jockeying from both sides of the aisle and continued uncertainty about whether current Republican lawmakers will agree to take part.

Gold extends gains in Asia
SINGAPORE (Commodity Online) : Gold prices extended gains in Asian trade Tuesday as investors await EU measures to rescue debt-laden Greece. Spot gold was seen trading at $1105. 31 an ounce at 11.30 a.m while April delivery was at $1107.32 an ounce at the same time in electronic trading in New York’s Comex.

Gold May Rebound, Advance Toward $1,161: Technical Analysis
By Nicholas Larkin
Feb. 15 (Bloomberg) -- Gold’s drop from its December record may precede a rebound toward $1,161 an ounce, according to technical analysis by Citigroup Inc. The attached chart shows gold is nearing trend resistance at $1,104 an ounce. Gains above that level would constitute a “bullish break” and might signal a further climb toward the January high of $1,161, according to Citigroup. “The price action down from the high in December looks corrective, and we believe the market is at risk of turning back up again over the coming days and weeks,” Citigroup technical analysts led by Tom Fitzpatrick in New York wrote today in a report.

Gold outperforms during market meltdown
By Kishori Krishnan - Commodity Online
The Emperor is naked. The debt of the US government is turning out to be in fact irredeemable. And gold is poised to break out. Remember, gold outperforms in a crisis. The inconspicuous beginnings of irredeemable debt have blossomed into a colossal edifice in the United States, a fantastic debt tower that is soon set to keel over. And to top it all President Barack Obama on Saturday further raised the debt ceiling.

A Retrospective Look at U.S. 'Gold Reserves'
Jeff Nielson - Silver Bear Cafe
In discussing the "gold reserves" of the U.S. government, the first point to make is that the only way in which this topic can be discussed is from a retrospective viewpoint. The reason for this is that while the U.S. government claims to have the largest reserves of gold in the world (supposedly over 8,000 tons) it has not allowed anyone to see this 'gold' in over 50 years.

Gold History Repeats Itself
By Hubert Moolman - Gold Seek
The gold price reached an all time high of $1226 on 3 December 2009. It has since retreated to $1044 on 5 Feb 2010. I believe this to be the bottom of this retreat, and you will understand why after reading the rest of this article. Since the high of $1226, gold has actually formed a familiar pattern (fractal). Fractals are best explained visually and therefore I include the pattern gold has formed since 3 December 2009 below:

Parade asks, "Should the U.S. sell its gold?"
It is fascinating just to see a story like this in a publication like Parade Magazine, asking what should be done with the nation's stash of seemingly useless gold bars, but, the fact that an overwhelming majority of readers think the metal is still relevant is a surprising bonus. The U.S. has the world’s largest gold reserve—more than 8000 metric tons. That’s far more than Germany’s, which comes in second with 3400. At current prices, our reserve is worth an estimated $288 billion. Since the U.S. government could certainly use the funds, why not sell this valuable commodity? Does our country need to keep all of that gold?

Digging for opportunities in gold
By Katie Benner
(Fortune Magazine) -- Having lived through bubbles in technology stocks and real estate, many investors have grown nervous lately about gold. Its price quadrupled in the past decade to a record $1,227 an ounce in December, before falling back near $1,100. Hedge fund legend George Soros, for example, recently warned that "the ultimate asset bubble is gold." Others, by contrast, cling to it as the ultimate safe haven in a period of wrenching economic uncertainty.

Brace Yourself For A Big Gold Shortage
The Mad Hedge Fund Trader - Business Insider
Brace yourself for the impending gold shortage. Gold shortage? Yup. With the launch of a flurry of dedicated gold ETF's last year, total ETF holdings of the barbaric relic, now exceed total world production. South Africa suffered its steepest decline in gold production since 1901, falling 14%, to a mere 232tons. It now ranks only third in global production of the yellow metal, after China and the US. Severe electricity rationing, a shortage of skilled workers,and more stringent mine safety regulations have been blamed.

Good for Stocks, Better for Gold:
Bernanke's "Stuck at Zero," Michael Pento Saysby Peter Gorenstein - Tech Ticker -- Once again, Beijing's efforts to cool their red hot economy are causing a sell-off on Wall Street. For the second time in a month, China said it would require banks to increase reserve levels thereby curtailing lending. The news quickly killed Thursday's one-day rally and once again raised concerns the recent market sell-off is in its early stages. "The global economy is slowing," says Michael Pento, chief market strategist with Delta Global Advisors, pointing to stagnant commodity prices. "That's why I think, we're having a double-dip recession here in the United States and a slowdown, unlike what the IMF predicts, a slowdown in global GDP."



Gold Nanoparticles Stop Cancer from Reproducing
Taking gold nanoparticles to the cancer cell and hitting them with a laser has been shown to be a promising tool in fighting cancer, but what about cancers that occur in places where a laser light can't reach? Scientists at the Georgia Institute of Technology have shown that by directing gold nanoparticles into the nuclei of cancer cells, they can not only prevent them from multiplying, but can kill them where they lurk. The research appeared as a communication in the February 10 edition of the Journal of the American Chemical Society.

Saudi Central Banker Confirms U.S. Dollar Is on Its Deathbed
J.S. Kim - Seeking Alpha
In Hong Kong, Mohammed al-Jasser, the head of the Saudi Arabian Monetary Authority, affirmed that the US dollar’s role as the world’s reserve currency is coming to an end when he stated: “The dollar is still preeminent in its role as a reserve currency.” We should recall former US Federal Reserve Chairman Alan Blinder’s statement, “The last duty of a central banker is to tell the public the truth” (PBS Nightly Business Report, 1994) and thus be astute enough to realize that the often hollow words of Central Bankers serve as a contrary indicator of the truth.

Monetary Inflation and the Fed’s Exit Strategy
By: Steve Saville - Gold Seek
Inflation Update
The following monthly chart compares the year-over-year (YOY) growth rates of True Money Supply (TMS - the blue line) and M2 (the red line). As at the end of January the TMS yearly rate of change was down a few percent from its high, but was still well into double digits and in the top quartile of its 10-year range. The M2 rate of change, however, was at a 10-year low. As explained in previous commentaries, the large divergence over the past year between these two monetary aggregates is primarily due to declines in the NON-monetary components of M2 (the main non-monetary components of M2 being money-market funds and time deposits).

The Expanding Industry of US Government
By Bill Bonner - Daily Reckoning
No lobbyist left behind!
That’s the new motto of the whole Washington establishment. Every spending bill has something in it for everybody. Today is a holiday in America. It’s “Presidents Day,” a day set aside for Americans to honor those who rule over them. Most Americans think of Washington, Lincoln and Roosevelt…but here at The Daily Reckoning we honor America’s truly great presidents – William Henry Harrison, Chester Arthur and Warren Harding – those who didn’t make things worse.

Is the Bond Market Screaming Inflation
Uh oh...
Did anyone catch the 30 year bond auction yesterday? If not, take a look (warning, this is not for the faint of heart): [see chart] Folks this is ugly. A bid to cover of 2.36 is god awful. Anything below a 2.0 BTC is considered to be a failed auction. We came real damn close to seeing one yesterday. The 28% participation by the indirect bidders (FCB's) was also not a good sign. The world's appetite for our debt continues to deteriorate. CNBC's Rick Santelli gave this auction a big fat "F". So what does this tell us?

EU Finance Ministers to Resist Obama Plans for Banking Overhaul By Meera Louis and Jurjen van de Pol -- Feb. 15 (Bloomberg) -- European Union finance ministers are uniting to oppose President Barack Obama’s proposal to limit banks’ size and risk-taking, saying his plan may run counter to EU policy, according to a draft document. Their position, which they will ratify at a two-day meeting starting today, comes after Obama last month urged the adoption of the so-called “Volcker rule,” named for former Federal Reserve Chairman Paul Volcker. The plan would bar commercial banks from owning hedge funds and limit how much they can trade for their own account.

Secession as a Solution to the Washington Debt Threat
By Ron Holland - Whiskey & Gunpowder
Frédéric Bastiat must have been looking toward the future of the United States today when he said, “When plunder has become a way of life for a group of people living together in society, they create for themselves in the course of time a legal system that authorizes it, and a moral code that glorifies it.” I fear the federal government will plunder much of our private wealth, retirement plans and personal savings through hyperinflation, financial controls and confiscatory tax rates all in the name of protecting the public from a future debt crisis unless the states can secede from the Union and the crushing Washington debt load.

No Easy Way Back For U.S. Economy
By: Rick Ackerman - Gold Seek
We'll need to find our way back by producing services and goods that yield a comparative advantage for U.S. labor globally. That advantage would exist today if, since World War II, we had saved and invested most of our capital rather than consumed it and borrowed heavily to live beyond our means. With Japanese levels of savings and investment, U.S. manufacture of steel, cars, clothing and such would be competitive with the most efficient producers in Asia and Latin America, much as our ability to grow and process corn -- a business that has received huge investment -- has remained competitive with the lowest-cost producers in the world.

Billions for Bankers - Debts for the People
Sheldon Emry - Silver Bear Cafe
"If the American people ever allow private banks to control the issue of their money, first by inflation and then by deflation, the banks and corporations that will grow up around them, will deprive the people of their property until their children will wake up homeless on the continent their fathers conquered." - Thomas Jefferson
This compilation provides a overview of central banking, the Federal Reserve and the specific steps that the Globalists have used to thwart the United States Constitution for the purpose of redistributing the wealth of our country. Introduction, Prologue and 19 chapters

Investors are anxious as economic fixes unwind
By Adam Shell, USA TODAY
NEW YORK — In a perverse financial twist of fate, many of the tailwinds that powered the stock market to a 70% gain from the March low have morphed into headwinds that have stalled the rally. When the economy and financial markets were in free fall, global central banks and governments took drastic steps to fix the problem, using record-low interest rates and trillions in stimulus money. The goal of stabilizing the financial situation worked wonders, bringing markets back from the brink of collapse.

Individual insurance rates soar 15% or more in at least 3 states
By Linda A. Johnson, Associated Press
TRENTON, N.J. — Consumers in at least three states who buy their own health insurance are getting hit with premium increases of 15% or more. Anthem Blue Cross, a subsidiary of WellPoint, has been under fire for a week from regulators and politicians for notifying some of its 800,000 individual policyholders in California that it plans to raise rates by up to 39% March 1. The Anthem Blue Cross plan in Maine is asking for increases of about 24% this year. Last year, they raised rates 32%.

Commercial mortgage failures threaten system
By Ronald D. Orol, MarketWatch
Losses may range between $200 billion and $300 billion
WASHINGTON (MarketWatch) -- Over the next few years, a wave of commercial real-estate loan failures could threaten America's financial system, and in the worst case scenario, hundreds of additional community and midsize banks could face insolvency, a congressional watchdog group said Thursday. According to a report by the Congressional Oversight Panel, a watchdog group for a $700 billion bank-bailout package, about $1.4 trillion in commercial real-estate loans will reach the end of their terms between 2010 and 2014, of which nearly half are now under water (that is, the borrower owes more than the underlying property is currently worth).

Mortgage rates poised to jump as Fed cuts funds
Carolyn Said, SF Chronicle
The Federal Reserve is poised to turn off a major money spigot that has helped sustain the ailing real estate sector, as an extraordinary program under which the Fed has pumped $1.25 trillion into the mortgage market is slated to end March 31. "Housing has been on government life support, and without it the crash would have been much more severe," said Mark Zandi, chief economist with Moody's Economy.com in Pennsylvania. "This spring and summer as those policy efforts unwind, we most likely will see mortgage rates move higher and more house-price declines."

Temp hiring no longer seen as sign of recovery
Economic uncertainty helping foster corporate culture of part-time workers WASHINGTON AP - It's not the signal it used to be. When employers hire temporary staff after a recession, it's long been seen as a sign they'll soon hire permanent workers. Not these days. Companies have hired more temps for four straight months. Yet they remain reluctant to make permanent hires because of doubts about the recovery's durability.

Big California deficit looms despite revenue boost
Silicon Valley / San Jose Business Journal
January revenue came in about $1.2 billion higher than projected in California but the state still faces difficult decisions to balance the budget. The uptick marked the third time in the past four months that the revenue number has come in higher than projected. This has some projecting that between $2 billion and $5 billion may be lopped off of the expected $20 billion deficit through June 2011.

Denver-area commercial real estate sales down in 2009, except in retail segment Denver Business Journal - by Paula Moore -- Of all major commercial real estate property types — office, industrial, retail and apartment — only metro Denver’s retail segment had higher investment sales in 2009 than 2008, according to data from LoopNet Inc. Some $555 million of shopping centers, strip centers and malls sold last year, led by the sale of a majority interest in one of metro Denver’s largest malls — FlatIrons Crossing mall in Broomfield — for $347.3 million in August. Private equity firm GI Partners LLP acquired 75 percent interest in the 1.4-million-square-foot property from Macerich Co.

More stories of the Bend real estate bubble
by Tim Iacono
An article by Andrew Moore in the local paper - The Bend Bulletin - details what sure looks like a Ponzi Scheme to forensic accountants who are now poring over the records of the defunct Summit 1031 Exchange trying to figure out how a company that was supposed to be investing 1031 exchange money in safe, liquid investments could have lost $14 million. There's lots of background material at the Bulletin, including introductions of all the principles, accusations, red flags, and general confusion that appeared in the bankruptcy trustee's report, where the story is picked up below.

Six Banks Sued by Federal Home Loan Bank of Seattle
By Brittany Dunn - DSNews
In an effort to recoup more than $2 billion paid for certificates backed by faulty mortgages, Federal Home Loan Bank of Seattle, one of 12 Federal Home Loan Banks in the United States, has sued six banks, according to a recent article on Nypost.com. Bank of America, the Countrywide unit of Bank of America, Barclays, Deutsche Bank, Morgan Stanley, and UBS are being sued by Federal Home Loan for allegedly making misleading statements about their asset-backed securities and the credit quality of the mortgage loans that backed these securities. Six complaints detailing these claims were filed in state courts in Seattle in December and were transferred to federal court starting January 22, 2010, the article said.

Home Loan Bank Sues Wall Street Firms
By NICK TIMIRAOS - WSJ
The Federal Home Loan Bank of Seattle has launched a series of lawsuits against Wall Street banks, seeking to force them to buy back souring mortgage-backed securities. In 11 separate lawsuits filed in late December in King County Superior Court in Washington, the Seattle bank alleges that it was misled by underwriters about the quality of $4 billion of securities it purchased as investments at the height of the housing boom.

The Year in Foreclosures
Last week offered some sobering news on the housing market: Even with broad government support for housing, data from the National Association of Realtors showed that the median price of single-family homes continued to decline in 2009. RealtyTrac, an online marketer of foreclosed properties, said foreclosure filings rose by 15 percent in January compared with a year ago.

An Insiders View of the Real Estate Train Wreck
David Galland - Silver Bear Cafe
The first time I spoke with real estate entrepreneur Andy Miller was in late 2007, when I asked him to serve on the faculty of a Casey Research Summit. And there was no one in the nation I wanted more than Andy to address the critical topic of real estate. My interest in Andy was due to the fact that he has been singularly successful in pretty much all aspects of the real estate market, including financing and developing large projects - such as shopping centers, apartment communities, office buildings, and warehouses - from one end of the country to the other. His expertise has also allowed him to build an impressive business providing assistance to large financial institutions that need help in dealing with problem commercial real estate loans. As you might suspect, business is booming.

Lennar’s Sweet Land Deal:
By Michael Corkery -WSJ

Is the FDIC Bullish On Commercial Real Estate?
For all you vulture investors expecting a repeat of the RTC fire sales of commercial real estate of the early ‘90s don’t get your hopes up. Home builder Lennar’s recent purchase of $3.05 billion of land and unfinished housing developments from troubled banks with government financing shows that the Federal Deposit Insurance Corp. isn’t selling at rock-bottom prices.

High Lumber Prices Threaten Housing Market
By LIAM PLEVEN, LESTER ALDRICH - WSJ
The long-ailing U.S. housing market is facing a new headwind—a jump in the cost of lumber. Lumber prices have climbed 32% on the futures market this year, a sudden and unexpected surge that could raise construction costs or force builders to swallow an added expense. "That's the last thing we need right now," Stephen Melman, director of economic services at the National Association of Home Builders, said of the recent price hike.

The $555,000 Student-Loan Burden
By MARY PILON - WSJ
As Default Rates on Borrowing for Higher Education Rise, Some Borrowers See No Way Out; 'This Is Just Outrageous Now' When Michelle Bisutti, a 41-year-old family practitioner in Columbus, Ohio, finished medical school in 2003, her student-loan debt amounted to roughly $250,000. Since then, it has ballooned to $555,000. It is the result of her deferring loan payments while she completed her residency, default charges and relentlessly compounding interest rates. Among the charges: a single $53,870 fee for when her loan was turned over to a collection agency. "Maybe half of it was my fault because I didn't look at the fine print," Dr. Bisutti says. "But this is just outrageous now."

Dumped! Brand names fight to stay in stores
By Parija Kavilanz
NEW YORK (CNNMoney.com) -- Don't be shocked if you can't find your favorite salad dressing or mouthwash on your next trip to Wal-Mart. Large retailers -- including Wal-Mart, the world's biggest -- are wrestling with having too many types of brand-name products. At the same time, shoppers are buying less and looking for bargains. So unless a particular brand is a top seller in its category, it's getting knocked off the shelf -- and sometimes getting replaced by a cheaper store brand.

Investors Recruit Terminally Ill to Outwit Insurers on Annuities By MARK MAREMONT And LESLIE SCISM -- PROVIDENCE, R.I.—"Terminal Illness? $2,000 in CASH, Immediately Available." That was the promise of an advertisement that appeared regularly in 2007 and 2008 in the Rhode Island Catholic, the official newspaper of the local diocese. The money, the ad said, was coming from a "compassionate organization" that wanted to provide "financial assistance" for those near death. In reality, the ad was a recruiting pitch for a plan hatched by a prominent Rhode Island estate-planning lawyer, who believed he had discovered a way to use an investment product sold by insurance companies to make no-risk bets on the stock market. He recruited dozens of terminally ill people to, in effect, serve as paid fronts for purchases of the product, variable annuities. The lawyer and other investors put tens of millions of dollars into the policies, hoping to reap a profit when the recruits died.

Bayh Decides Against Re-election Bid
By BERNIE BECKER, JEFF ZELENY - NY Times
Senator Evan Bayh, the Indiana Democrat, said today that he would not seek a third term in Congress, a move that gives Republicans yet another opportunity to pick up a Senate seat and gives Democrats some fresh anxiety about whether they are losing the party’s center. The decision, which he announced at an afternoon press conference, came as a surprise to Democrats in his state who had already started working on his campaign. Mr. Bayh, 54, made his decision even after entreaties by President Obama and White House aides, including the chief of staff, Rahm Emanuel, who urged him to run.

Gary Shilling: Higher Government Pay Will "Likely Lead to a Tax Revolt"
by Peter Gorenstein - Tech Ticker -- 14.8 million Americans are currently out of work and looking for a job, according to a report released today by the Bureaus of Labor Statistics. Even if you do have a job, wages have not increased substantially over the last ten years, with one exception: government workers. Thanks to generous health-care benefits and pensions, it pays - more than ever - to work in the public sector. Economist Gary Shilling fears dubious consequences if state and local workers continue to make more money and at the same time governments raise taxes and cut services.



Tea Party Movement Lights Fuse for Rebellion on Right

By DAVID BARSTOW - NY Times

SANDPOINT, Idaho — Pam Stout has not always lived in fear of her government. She remembers her years working in federal housing programs, watching government lift struggling families with job training and education. She beams at the memory of helping a Vietnamese woman get into junior college. But all that was before the Great Recession and the bank bailouts, before Barack Obama took the White House by promising sweeping change on multiple fronts, before her son lost his job and his house. Mrs. Stout said she awoke to see Washington as a threat, a place where crisis is manipulated — even manufactured — by both parties to grab power.

The Forgotten Miracle on Ice
By ALLEN BARRA - WSJ
Team USA faces off with Switzerland today in the first round of the men's hockey competition at the Vancouver Winter Olympics. And as sports fans settle in to watch, they'll undoubtedly recall the "Miracle on Ice" in the 1980 Lake Placid games, when a group of young Americans surprised the world and brought home the gold. Far fewer will remember the first miracle on ice 20 years earlier. At the 1960 Squaw Valley Games, a group of unknown Americans went undefeated, beating the highly favored Russians and then the Canadians and Czechs to win the gold.

India Worries as China Builds Ports in South Asia
By VIKAS BAJAJ - NY Times
HAMBANTOTA, Sri Lanka — For years, ships from other countries, laden with oil, machinery, clothes and cargo, sped past this small town near India as part of the world’s brisk trade with China. Now, China is investing millions to turn this fishing hamlet into a booming new port, furthering an ambitious trading strategy in South Asia that is reshaping the region and forcing India to rethink relations with its neighbors.

Clinton Raises U.S. Concerns of Military Power in Iran
By MARK LANDLER - NY Times
DOHA, Qatar — Secretary of State Hillary Rodham Clinton said on Monday that the United States feared Iran was drifting toward a military dictatorship, with the Islamic Revolutionary Guards Corps seizing control of large swaths of Iran’s political, military, and economic establishment. “That is how we see it,” Mrs. Clinton said in a televised town hall meeting of students at the Doha campus of Carnegie Mellon University. “We see that the government in Iran, the supreme leader, the president, the Parliament, is being supplanted and that Iran is moving towards a military dictatorship.”

Clinton: Iran becoming military dictatorship
By Robert Burns ASSOCIATED PRESS
DOHA, Qatar -- U.S. Secretary of State Hillary Rodham Clinton said Monday that Iran is becoming a military dictatorship, a new U.S. accusation in the midst of rising tensions with Iran over its nuclear ambitions and crackdown on anti-government protesters. Speaking to Arab students at Carnegie Mellon University's Doha campus, Mrs. Clinton said Iran's Revolutionary Guard Corps appears to have gained so much power that it effectively is supplanting the government.