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The Dow Jones average suffered its latest calamitous decline on Thursday, plunging 419 points and erasing much of the progress that had been made after the last series of wild swings two weeks ago. There were many factors at work in Thursday's carnage, which came after markets in Asia and Europe experienced similar turmoil, but the overriding one seems to be this: Just about everyone now believes the U.S. economy is getting worse -- and no one thinks our leaders in Washington are about to do anything meaningful about it. So we thought it might be a good time to take a step back and consider the fundamental absurdity of the paralysis in Washington, where spending cuts and deficit reduction -- and not job creation -- have come to define and dominate the discussion. And who better to illustrate this than ... Robert Reich, playing the roles of both Professor Donald Right and Dr. Hugo Wrong in a one-man show that everyone on Capitol Hill really ought to check out:

Christina Romer, former member of President Obama's Council of Economic Advisors, accuses the administration of "shamefully ignoring" the unemployed. Paul Krugman echoes her concerns, observing that Washington has lost interest in "the forgotten millions." America's unemployed have been ignored and forgotten, but they are far from superfluous. Over the last two years, out-of-work Americans have played a critical role in helping the richest one percent recover trillions in financial wealth.

For decades, Turkey was one of the United States' most pliable allies, a strategic border state on the edge of the Middle East that reliably followed American policy. But recently, it has asserted a new approach in the region, its words and methods as likely to provoke Washington as to advance its own interests.

As President Luiz Inácio Lula da Silva heads to Tehran this weekend to make what many Western diplomats consider a last-ditch attempt at persuading Iran to temper its nuclear ambitions, officials in Washington have expressed concern that the effort could backfire, helping the Islamic republic to block - or at least delay - the United States and its allies from imposing sanctions.

No fundamental, os termos do acordo são os mesmos da proposta oferecida por Estados Unidos, Rússia e França há oito meses, pela qual o Irã deveria entregar ao redor de 70% do seu urânio enriquecido a mais de 5%. A própria Agência Internacional de Energia Atômica já calculara que a neutralização de 1,2 toneladas do minério seria o suficiente para anular qualquer projeto atômico de caráter militar. A formação de alianças fora da órbita imperial, porém, é tudo o que não interessa a Washington e seus subservientes associados europeus. O artigo é de Breno Altman.

Beyond the usual anti-American rhetoric, some analysts say that Iran is trying to avoid sanctions and resolve tensions with Washington over its nuclear program.

Europeans have grown accustomed to seeing government workers shut down their countries when provoked. At this time of huge deficits from Washington to the smallest towns, government workers in the U.S. also face significant cutbacks.

Washington - President Obama, who is proposing his third annual budget on Monday, will say that it can reduce projected deficits by $1.1 trillion over the next decade, enough to stabilize the nation's fiscal health and buy time to address its longer-term problems, according to a senior administration official.

By John B. Taylor This review is from a syndication service of The Washington Post. In "Reckless Endangerment," Gretchen Morgenson and Joshua Rosner argue that cozy connections between government and the financial industry were the primary cause of the financial crisis. While many economists-including this reviewer-have argued that government actions caused the crisis, Morgenson and Rosner use their investigative skills to dig down and explain why those actions were taken. The book focuses on two government agencies, Fannie Mae and the Federal Reserve. The mutual support system is better explained and documented in the case of Fannie, the government-sponsored enterprise that supported the home mortgage market by buying mortgages and packaging them into marketable securities, which it then guaranteed and sold to investors.

AS Election Day approaches, serious discussion about economic policies is hamstrung by the devotion of both parties to reducing taxes. The big reason, of course, is that President Bush emphasizes tax cuts, including elimination of the estate tax, to the exclusion of almost everything else. The Democrats, in turn, hesitate to propose an economic plan that does not include long-term reductions for middle-income workers, and most refuse to talk about rescinding the Bush tax cuts for the wealthy. But the degree of misleading information emanating from both Washington and the media about how taxes affect the economy is disturbing. As I listen to the radio, watch TV news and read a variety of newspapers, it seems that quite a few Americans, including economics writers and media hosts, think that low-tax countries unquestionably grow faster than high-tax economies. Right and left, they seem to attribute more rapid growth in America to lower taxes. What may surprise them is that there is no evidence for that. ''You can make a theoretical case that high taxes impede economic growth, but it is just not supported by the evidence in the U.S. or across countries,'' said William Easterly, a former World Bank economist soon to join the faculty of New York University.

America and Oil. It's like bacon and eggs, Batman and Robin. As the old song lyric went, you can't have one without the other. Once upon a time, it was also a surefire formula for national greatness and global preeminence. Now, it's a guarantee of a trip to hell in a hand basket. The Chinese know it. Does Washington?

A deep look at the economic policies we did and didn't choose.

BEIJING - The United States is spending too much on its military in light of its recent economic troubles, China's top general said Monday while playing down his country's own military capabilities.

STOCKHOLM - Almost every developed nation in the world was walloped by the financial crisis, their economies paralyzed, their prospects for the future muddied. And then there's Sweden, the rock star of the recovery.

Now Minnesota joins the list of states being gutted by the Republican Party. The government in the state famous for being nice has shut down, because Democratic Governor Mark Dayton wanted to impose a higher income tax on Minnesotans earning $1 million or more a year-a whopping 7,700 people in a state of 5.3 million. There are additional matters-a GOP insistence on a 15 percent reduction in state workers over the next four years, for example. And so the evidence mounts: In Saint Paul and Columbus and Tallahassee and Madison, as in Washington D.C., we are watching something that is no longer a political party in the normal sense, but a group of cynical highwaymen perpetuating a national crisis and then exploiting that very crisis to try to destroy the public sphere.

The United States officials began talking to their counterparts about an American concept: overwhelming force. "It's all about psychology," said the senior official. "You have to convince people that the government will get its act together."

The country's largest banks and trade groups have hired more than 240 former government officials and legislative staffers to lobby on their behalf in Congress, part of a broader campaign by Wall Street firms to limit the impact of proposed reforms on their industry, according to a report issued Tuesday by liberal groups.

All this signals a clear shift in the development agenda. Traditionally, this was an agenda generated in the developed world that was implemented in - and, indeed, often imposed on - the developing world. The United States, Europe, and Japan will continue to be significant sources of economic resources and ideas, but the emerging markets are now entering this arena and will become significant players. Countries such as Brazil, China, India, and South Africa will be both donors and recipients of resources for development and of best practices for how to use them. A large portion of the world's poor live within their borders, yet they have achieved new respect on the global scene in economic, political, and intellectual terms. In fact, development has never been something that the rich bestowed on the poor but rather something the poor achieved for themselves. It appears that the Western powers are finally waking up to this truth in light of a financial crisis that, for them, is by no means over.