While that day seems distant now, some economists and market analysts have even begun pondering the unthinkable: could the vaunted Fed, the world's most powerful central bank, become insolvent? Almost by definition, the answer is no.

As the monetary authority, the central bank is the master of the printing press. It can literally conjure up money at will, and arguably did exactly that when it bought about $2 trillion of mortgage-backed securities and US Treasuries to push down borrowing costs and boost the economy.

The Fed's unorthodox steps helped it generate record profits in 2010, allowing it to send $78.4 billion to the US Treasury Department. But its swollen balance sheet leaves the central bank unusually exposed to possible credit losses that could create a major headache at a time of increasing political encroachment on the Fed's independence.

As events in Egypt gathered pace, human rights activists in Bahrain called for a day of rage on 14 February. The result on Monday was sporadic protests in Shia villages across the island and attempts to create a "Tahrir Square movement" in central Manama, the capital. Footage shot by protesters and posted on the internet shows riot police attacking peaceful demonstrators with tear gas and rubber bullets.

Thus far, the government is continuing to respond with harsh tactics. Dozens of protesters have been wounded and two killed. A 21-year-old man died on Monday after being hit by a rubber bullet. On Tuesday, at a funeral march to protest against his killing, a second man was hit by a shotgun blast and died. The demonstrators, many waving the Bahraini flag, are calling for a new constitution, the release of hundreds of Shia men and boys who have been rounded up since August 2010 and an end to civil rights abuses.

Journalist Reem Khalifa, a senior editor with the Bahraini newspaper Al Wasat, says this time the protests are different. "Young Sunni and Shia are marching together and they are shouting 'neither Sunni nor Shia but Bahraini'. We have not seen this before,'" she says. She adds that women are much more involved in the protests. One reason is that they are less likely to be manhandled by the security forces. Even so, Ms Khalifa says she saw one woman who had approached a security line with a Bahraini flag being roughed up.

The security police are largely non-Bahraini. They are Sunni Muslims recruited from Pakistan, Yemen, Syria and Jordan. Fast-tracked to citizenship and given preferential treatment, they are infuriating protesters. One protester told me: "Some of [the security police] don't even speak Arabic. They have no respect for the people."

Meanwhile, American president Barack Obama may have another headache on his Middle East plate. The Fifth Fleet is seen as a bulwark against the rising threat of Iran. As in Egypt, US policy has been to ignore the often legitimate grievances of Bahrainis in favour of stability and support for a repressive regime.

But if these protests transcend the sectarian divide and the Bahraini government responds with ever more brutal tactics, Washington will be put in a very difficult place - to support the government will be to deny the democratic aspirations of yet another Arab nation. And Saudi Arabia is even more nervous - a causeway links the kingdom to Bahrain. Gala Riani of Jane's Weekly concurs, saying the Saudis would not be loath to lend support - and in a worst-case scenario to intervene directly - should the Bahraini authorities not be able to control the demonstrations.

That would add a nightmarish twist to Barack Obama's growing Middle East dilemma at a time when instability is rapidly outpacing American strategy in the region.

However, critics pointed out that India is a nuclear power, has its own space programme and is rich enough to donate money to poor African nations each year. Andrew Mitchell, the International Development Secretary, says Britain will channel its aid to the three poorest states in India.

Sceptics believe much of Britain's aid is as much about strengthening British trade ties as helping the poor. In his visit last year, David Cameron lobbied hard on behalf of British business. The trip led to a 686 million pounds aircraft deal for defence contractor BAE Systems and engine makers Rolls-Royce. No one disputes that, despite its phenomenal growth, India still has countless millions of poor people, though many fewer than it used to have. Its population, after all, is many times greater than ours. But despite its challenges with poverty, it spends some 20 billion pounds a year on defence, not much less than Britain, and is a nuclear power.

It also splashes out about 1.5 billion pounds a year on its space programme, a luxury which this country cannot afford. Arguably India should be spending less on defence, and nothing on its space programme, and be diverting more funds to the alleviation of poverty. But the country is a democracy, and its government will be held to account for the decisions it makes. It is hardly our business if India wants to spend so much money on a space programme. But surely it is madness for us to be channelling precious funds to a country which chooses to have prestige projects that are beyond our own means.

The breakfast for conservative ministers prior to Chancellor Angela Merkel's weekly cabinet meeting is considered the most secretive and concentrated gathering in the day-to-day business of political Berlin. There are no leaks, no mobile phones ringing and no one leaves the room.

Last Wednesday, however, the morning discussion was abruptly interrupted. The ministers belonging to Merkel's center-right Christian Democratic Union (CDU) and its Bavarian sister party, the Christian Social Union (CSU), were just perusing the first items on the agenda when a Chancellery employee told Merkel that she had an urgent call. Jens Weidmann, Merkel's economic advisor, was on the line to tell her that Axel Weber, president of the German Central Bank, the Bundesbank, intended to announce his resignation that day.

When Merkel returned, the cabinet members could tell by the expression on her face that something very unpleasant had happened - so unpleasant, in fact, that close associates would later call it a "catastrophe." Merkel conferred briefly with Finance Minister Wolfgang Schauble before calling Weber. It quickly became clear that there was nothing that could be done.

He had given careful thought to his decision, the banker told Merkel. He said that he felt isolated as a result of his strict, anti-inflation policies, and that he was practically alone in his views within the European Central Bank (ECB). Under these circumstances, Weber explained, he could not continue in office, and certainly could not become ECB president.

Weber now threatens to become a symbol of those among Merkel's conservatives - and within her junior coalition partners, the business-friendly Free Democrats (FDP) - who are skeptical of the euro and have long been uncomfortable with measures to rescue the common currency.

A subsidiary of China Communications Construction Company will build a runway long enough to handle giant Airbus A380s, a passenger terminal, hanger, control tower and other facilities, China's state-owned companies administrator said in a statement on its website (www.sasac.gov.cn) on Tuesday. "After this project is completed, it will greatly enhance the degree of internationalisation of Sudan's capital Khartoum, and also increase the impact China Communications Construction Company will have in Sudan's market," the statement said.

The airlines are constrained because of local laws that prevent selling tickets to Sudanese nationals in foreign currency. Credit card transactions are also not possible due to US sanctions imposed since 1997. Only about a dozen foreign airlines fly to Sudan because of the US embargo. Sudan also has a poor safety record, with the European Union banning all Sudanese airlines from flying to the bloc.

But Beijing has long been an ally of the government in Khartoum, providing much needed infrastructure development for the country that conceded to a January referendum outcome which will see its oil-rich south split as soon as July 9. China relied on Sudan as its sixth largest source of oil imports in 2010, and has been keen to build a relationship with leaders in the south.

Zhang Jun, the Chinese Commercial Consul to south Sudan, said oil remained the backbone of the economy in both the north and south, and hoped the agreement between the two sides would not affect oil production, China Business News reported on Tuesday.

In the last year, home prices in Seattle had a bigger decline than in Las Vegas. Minneapolis dropped more than Miami, and Atlanta fared worse than Phoenix. The bubble markets, where builders, buyers and banks ran wild, began falling first, economists say, so they are close to the end of the cycle and in some cases on their way back up. Nearly everyone else still has another season of pain.

"When I go out and talk to people around town, they say, 'Wow, I thought we were going to have a 12 percent correction and call it a day,'" said Stan Humphries, chief economist for the housing site Zillow, which is based in Seattle. "But this thing just keeps on going." Seattle is down about 31 percent from its mid-2007 peak and, according to Zillow's calculations, still has as much as 10 percent to fall.

Mr Humphries estimates the rest of the country will drop a further 5 and 7 percent as last year's tax credits for home buyers continue to wear off. "We went into 2010 feeling gangbusters, thanks to Uncle Sam," Mr. Humphries said. "We ended it feeling penniless, with home values tanking." The fact that even a fairly prosperous area like Seattle was ensnared in the downturn shows just how much of a national phenomenon the crash has been.

The worst weather has been in Gangwon province. Weather experts say there will be more snowfall in the area in the coming hours. "I am 83 years old. It's the heaviest snow in my life. I am really grateful for the soldiers' help," said Park Chae-ran. The BBC's Nick Ravenscroft in Seoul says that although winters are colder than anywhere else at its latitude, with frequent frost and snow, this year has been different.

January was the coldest since the 1960s. In Gangwon on the eastern coast, one city recorded 80cm (2.6 feet) of snow in a single day - the heaviest fall in 24 hours since records began there back in 1911. The cost of the damage is expected to run into several million dollars.

"An earthquake is shaking the whole Arab world and a large part of the Muslim world and we don't yet know how these things will turn out," the premier said at a swearing-in ceremony for new army chief Major General Benny Gantz. "We are ready for all eventualities because we know that the foundation of our existence, and our capacity to convince our neighbours to live in peace with us, is based on the Israeli army," he said during a ceremony at his Jerusalem office.

Gantz takes over the post as Israel's strategic stance in the Middle East undergoes a shakeup in the wake of a popular revolt in Egypt which ousted president Hosni Mubarak after three decades in power. Israel has reacted cautiously to the overthrow of Mubarak, an ally who was involved in years of Middle East peace negotiations. But it welcomed a statement by Egypt's new military ruling council that Cairo remains committed to all its treaties, including its landmark 1979 peace deal with Israel.

Mr Obama's budget projects that 2011 will see the biggest one-year debt jump in history, or nearly $2 trillion, to reach $15.476 trillion by September 30, the end of the fiscal year. That would be 102.6 percent of GDP - the first time since World War II that dubious figure has been reached.

And the budget projects the government will run a deficit of $1.645 trillion this year, topping 2009's previous record by more than $230 billion. By contrast, 2007's deficit was just $160 billion altogether. Still, amid the other staggering numbers in the budget Mr Obama sent to Congress on Monday, the debt stands out because Congress will need to vote to raise the debt limit later this year, and because the numbers are so large.

In one often-cited study, economists Carmen Reinhart and Ken Rogoff have argued that when a nation's gross debt passes 90 percent it hinders overall economic growth. Republicans argued Monday that the Obama administration's new budget fails to appreciate the depth of the country's fiscal plight.

"I still don't see a sense of urgency from the president about the massive federal debt," said Senator Lamar Alexander, Tennessee Republican. "His budget calls for too much government borrowing - even though the debt is already at a level that makes it harder to create private-sector jobs."

Earlier, Cairo's Tahrir Square was cleared of protesters but hundreds soon returned, joined by disgruntled police. Hundreds of uniformed and plain-clothes police marched to Tahrir Square, shouting: "We and the people are one" and vowing to "honour the martyrs of the revolution". They said they had been forced to act against their wishes in using force on protesters early in the anti-government demonstrations.

But they are detested by many ordinary Egyptians, says the BBC's Jon Leyne in Cairo, and repairing relations will take time and hard work. Most of the thousands of protesters in the square had left on Sunday after welcoming the announcement by the new ruling military council that it would dissolve parliament and suspend the constitution.

Earlier, the police placed opposition leader Mir Hossein Mousavi under house arrest, according to his website. It said the move was intended to prevent the former prime minister attending the march in Tehran, which the authorities had prohibited. The road leading to Mr Mousavi's house was also blocked by police vans. Fellow opposition leader Mehdi Karroubi, a former speaker of parliament and a senior cleric, is also reportedly under de facto house arrest.

Both men disputed the re-election of President Mahmoud Ahmadinejad in June 2009, which triggered mass protests that drew the largest crowds in Iran since the Islamic Revolution in 1979. The demonstrations eventually led to a brutal crackdown. The opposition says more than 80 of its supporters were killed over the following six months, a figure the government disputes. Several have been sentenced to death, and dozens jailed.

Turkish President Abdullah Gul, who is on a visit to Iran, earlier warned that "when leaders and heads of countries do not pay attention to the demands of their nations, the people themselves take action to achieve their demands".

The UK Parliament has before it a motion supporting the Government's position that the UK should stay out of the European Stability Mechanism; some of us have been quite exercised about the matter. The tendency is clearly toward further centralization in Europe. Commentators fear an explicit transfer union, within which fiscally-reckless states are rewarded by transfers from the fiscally sound. Unfortunately, these worries come somewhat late.

One of the great merits of Philipp Bagus' enlightening new book The Tragedy of the Euro is to show that the Eurozone is already a transfer union. The very monetary system of Europe redistributes wealth from one country toanother. The monetary transfer union of the Eurozone caused the sovereign debt crisis that is now bringing us ever closer to a more explicit transfer union. A POTENTIAL EUROPEAN ECONOMIC GOVERNMENT or transfers through Eurobonds are the inevitable consequences of an underlying and dangerous monetary transfer union implicit in the institutional design of the Euro.

The Governor of the Bank of England has said, "Of all the many ways of organising banking, the worst is the one we have today." He is certainly correct: across the UK and Europe, the system of central banking which enabled our particular social system has now turned on itself. THE CONSEQUENCES WILL BE PROFOUND.

Well, here is a dirty little secret. Black women abort their children at 3 times the rate of white women. Over 50% of black pregnancies end in abortion. Thus, according to the numbers, abortion in America is racist. This black genocide is so severe, black babies could be classified as an endangered species due to abortion.

And yet, abortion obsessed liberal democrats are lorded as champions of black America. Meanwhile, Martin Luther King's niece, Dr Alveda King who has committed her life to ending the genocide of black babies is vilified, called a 'traitor to her race" and a "sellout" because she is a black republican.

Case in point. Planned Parenthood was founded by Margaret Sanger, a white hardcore racist who believed black births were destructive to society. Thus, Planned Parenthood Abortion Centers are disproportionately located in black neighborhoods. Referring to blacks, Sanger proclaimed, "There is no doubt that procreation of this group should be stopped." In 1939 Sanger launched the "Negro Project" to kill blacks before they were born.

So while the liberal democrats support an organization whose mission is to kill as many black babies as possible, most black Americans have been duped by the liberal media into believing conservative republicans are their enemies. Taxpayer funded abortion is one of many hidden "far left progressive" agenda items buried in Obama's Health Care law which a federal judge ruled to be Unconstitutional.

Regardless of your political view of abortion, forcing taxpayers who morally oppose abortion to fund them is beyond arrogant, evil and down right tyrannical.

The company's immense holding, an area a third the size of Wales, easily outstrips that of El Tejar, the Argentine conglomerate which is the largest farm in the Western hemisphere, with 1.1 million hectares under cultivation. Analysts estimate that a sale could value the farm at 500 million-1 billion pounds.

Ivolga last year asked a team of investment banks from Europe and Russia to try and find a buyer for a stake in the company, after deciding it needed a strategic partner to fund further development.

Vasily Rozinov, the company's owner, is thought to be keen not to lose ultimate control of the company. Dr Angus Selby, the principal in charge of agricultural investment at Altima Partners, the London-based hedge fund, said: "We considered taking a stake, but our view over all was that the risk of political risk and weather exposure in Kazakhstan was too much."

Ivolga now controls 800,000 hectares of land in Kazakhstan, and 700,000 in Russia, most of it wheat-growing land developed as part of the Soviet Union's 1950s Virgin Lands campaign, when vast areas of previously barren steppe were brought into production. "They are the largest single entity in the world, but they have very low productivity," said Dr Selby. "They got caught by that perfect storm in 2008 and 2009. They bought all their fertilisers at the top of the market and then sold all that crop into a very deflated market and made massive losses."

The Customs and Border Protection Department tried to dampen speculation over his remarks, but doubts remained over whether he had inadvertently revealed a dirty bomb plot to attack the US mainland. Concern over a secret WMD bust came after US cables made public by the Wikileaks whistleblower website revealed terror groups were plotting a 'nuclear 911.'

In the interview screened by San Diego's 10News, Al Hallor, assistant San Diego port director, said 'weapons of mass effect' had been found, although he did not specify exactly where or what they were. Reporter Mitch Blacher asked Mr Hallor: 'Do you ever find things that are dangerous like a chemical agent or a weaponised device?' 'At the airport, seaport, at our port of entry we have not this past fiscal year, but our partner agencies have found those things,' the customs official replied.

'So, specifically, you're looking for the dirty bomb? You're looking for the nuclear device?' asked Mr Blacher.

'Correct. Weapons of mass effect,' said Mr Hallor.

'You ever found one?' asked Mr Blacher.

'Not at this location,' Mr Hallor said.

'But they have found them?' asked Mr Blacher.

'Yes,' said Mr Hallor.

'You never found one in San Diego though?' Mr Blacher asked.

'I would say at the port of San Diego we have not,' Mr Hallor said.

'Have you found one in San Diego?' Mr Blacher asked.

The interview was then interrupted and cut short by a public relations official before Mr Hallor was able to answer the question.

San Diego's Customs and Border Protection agency was unavailable for comment today.