The enormous bill for the 13-year conflict, which has never been detailed by the government, will add to the pervasive scepticism about the war in the US, where opinion polls show a majority of Americans believe it was a bad idea. With the Iraq war having already cost the US $1.7 trillion, according to one study, the bill from the Afghanistan conflict is an important factor in the broader reluctance among the American public and the Obama administration to intervene militarily in other parts of the world — including sending troops back to Iraq.

John Sopko, the government’s special inspector-general for Afghanistan, whose organisation monitors the more than $100 billion that has been spent on reconstruction projects in the country, said that “billions of dollars” of those funds had been wasted or stolen on projects that often made little sense for the conditions in Afghanistan. “We simply cannot lose this amount of money again,” he said. “The American people will not put up with it.”

Adjusted for inflation, Mr Sopko said the amount the US had spent on reconstruction in Afghanistan was more than the cost of the Marshall Plan to rebuild western Europe.

As well as further interest payments, the health bills will start to rise dramatically, especially once veterans from the war reach their 60s and begin to use more medical services. Professor Bilmes forecasts future medical and disability costs for veterans from both Iraq and Afghanistan will reach $836 billion over the coming decades. The two wars have also added to the Pentagon’s fast-growing pension bill: the military pension system has an unfunded liability of $1.27 trillion, which is expected to rise to $2.72 trillion by 2034. “The dirty secret about this war is that the Pentagon or anyone else in the government cannot tell you how much it has actually cost us,” says an administration official.

The official's comments made to Bloomberg News at a conference in Dubai could add to further downward pressure on prices, which have already fallen more than 45 percent since June. Brent crude - a global benchmark comprised of high-quality oil from 15 North Sea fields - closed last week at a new five-and-a-half-year low under $62 per barrel.

A slump in prices to levels around $40 per barrel would be a boost for parts of the UK economy and could see petrol prices drop close to £1 per litre providing relief to motorists. However, the slump will also threaten thousands of jobs in Britain's petroleum industry and according to Wood Mackenzie place around £55 billion worth of oil projects in the North Sea and Europe at risk of cancellation.

The Organisation of Petroleum Exporting Countries (Opec) - which is comprised of 12 members mainly drawn from the Middle East - agreed at its last meeting in late November to keep its production quota unchanged at 30 million barrels per day (bpd), a move that has led to a rout on global oil markets. Many analysts believe that Opec has effectively launched a price war aimed at producers outside the cartel such as the US and Russia.

“It is entirely possible that the Yen decline becomes disorderly and swift,” said the bank, in one of the starkest criticisms so far of Japan’s radical stimulus policies. The warning came as Mr Abe won a sweeping victory in Japan’s snap elections over the weekend, consolidating his power in the Diet and giving him a further mandate for deep reforms."I promise to make Japan a country that can shine again at the centre of the world," said Mr Abe.

The Abenomics experiment still depends largely on the BoJ's asset purchases, running at 1.4 percent of GDP each month, the most extreme monetary blitz ever attempted in a modern economy. Economists are deeply divided over whether this alone can overwhelm the fiscal shock, and lift the economy out of a 20-year stagnation trap. The worry is that this could set off a beggar-thy-neighbour devaluation process across Asia, eventually sucking in China. "The tentacle of the currency war would spread," said the report.

"There are grounds to argue that China would join the currency war and devalue the yuan if currency moves elsewhere became disorderly," it said. The warnings have raised eyebrows since HSBC has close policy ties with the Chinese authorities. The report sketched an unsettling scenario in which capital flight from Japan flows to the US, setting off an "explosive" rise in the dollar. This may combine with "reignited European break-up fears" as political risk spreads, most immediately in Greece.

Such a combination would put immense strain on those emerging markets that have borrowed heavily in dollars. The Bank for International Settlements says cross-border loans to developing economies have soared from $3 trillion to $9 trillion in a decade, creating systemic risk. HSBC warns that the potential trifecta of a yen crash, a euro slide, and an emerging market crisis could lead to a dollar spike that the US authorities "would be powerless to prevent". This would "destroy the world" as we know it. The report stressed that this is not a forecast but a tail-risk that cannot be ignored.

Post-crisis, they are conforming to strict standards on capital, lending standards and loss-absorbing debt. But, says the Bank, this is not enough. “Just using the capital ratio and hoping for the best, that’s what we did prior to 2008,” says Paul Sharma, the former deputy head of the Bank’s Prudential Regulation Authority who now works at Alvarez & Marsal, the consultancy. “We want our major banks to be able to withstand a crash.”

The European Banking Authority, the EU’s banking supervisor, conducted its own stress tests in October. The four British banks involved passed, although some narrowly, and the UK test is seen as significantly more difficult. The eight banks will be measured on their response to 10 factors – GDP, inflation, unemployment, interest rates, sterling, house prices, commercial property prices, stock markets, wages and bond yields – all going the wrong way. Of the eight banks under the microscope, most are not seen as being at risk of failing. Most of HSBC and Standard Chartered’s business occurs outside of the UK, Barclays would not be as affected by a housing collapse as its peers, and Nationwide and Santander are believed to be well-capitalised enough.

RBS, out of the four banks to be subject to the EBA’s stress tests in October, came closest to failing: The bank embarrassingly admitted that it overstated its EU stress test results last month, meaning it scraped through by just 0.2 percentage points. It is expected to have fared better in the Bank of England tests, which unlike the European ones take into account expected profits and asset sales.

The two banks under most pressure on Tuesday are Lloyds and the Co-op Bank. The former, as the UK’s biggest mortgage lender, is most exposed to the interest rate spike, and subsequent plunge in house prices, envisaged by the stress test.

Lagarde said the IMF is disappointed with the US inaction to ratify the governance and quota reforms and will now move forward without Washington. “I have now been informed by the US Administration that the reforms are not included in the budget legislation currently before the US Congress. I have expressed my disappointment to the US authorities and hope that they continue to work toward speedy ratification,” she said.

“As requested by our membership, we will now proceed to discuss alternative options for advancing quota and governance reforms and ensuring that the Fund has adequate resources, starting with an Executive Board meeting in January 2015,” she added. Earlier in September this year, in her opening address at the United Nations General Assembly, Brazilian President Dilma Rousseff warned that international financial institutions are in danger of losing legitimacy if developing countries like BRICS are not given proper representation.The IMF reforms will hand more IMF voting powers to BRICS, a long-standing demand of the group and will also reduce the concentration of representative power of Western Europe at the IMF board.

China and other emerging economies, including BRICS, have long protested against their limited voice at global financial platforms, including the World Bank, International Monetary Fund and Asian Development Bank. The IMF quota reform calls for a 6 per cent shift in quota share to emerging economies. It will lift China, which still has less voting power than the Benelux countries ( Belgium, Holland and Luxemburg), to the third largest shareholder. Shares for Russia, India and Brazil will also see hefty rises.

The reforms, however, have been delayed for four years owing to a block by the US Congress as the US retains a veto. IMF chief Lagarde hinted at a “Plan B” in April if the US fails to endorse the reforms by year-end.

Setting aside the day for coffee and cake with family and friends has been ingrained in German society for a century. The country’s ban on stores being open, which stretches back to 1919 during the Weimar Republic, was enshrined in the West German constitution after World War II and is still protected. Labor unions and churches oppose any effort to relax rules.

“As few employees as possible should have to work on a Sunday,” Hans Ulrich Anke, the head of the Evangelical Church in Germany, said in a statement. “Pure economic and competition interests must take second place to that.”

O'Donnell reported the brutal attack by two Palestinian boys in a Jerusalem synagogue, killing four rabbis and injuring seven. In fact, it was a massacre, with blood everywhere, including on the Torah – but she called the synagogue a "contested religious site." Contested? Neither the Har Nof synagogue nor the Har Nof neighborhood of Jerusalem is contested.

Jerusalem is the eternal capital of the Jewish people, has been the capital of the Jewish people through most of history, and was declared the capital when Israel became a state; therefore, the neighborhood and the synagogue are indisputably legal. If it is contested, it is only a war tactic by jihadists, who will use any method to garner supporters when they fear the possibility of loss by modern warfare.

Does O'Donnell also contest the Christian churches or Bahi'a, Buddhist, or Hindu temples in Israel? Does she contest the Al Aqsa mosque, over which dominion was ceded by General Moshe Dayan, whether out of generosity or naïveté and his hope for peace with barbarians. How could he have known that the courtyard would someday be a soccer field for boys… Perhaps he should have been more aware of Islam's bloody 1400-year history!

It is the latest in a string of admissions by BBC figures that it has been guilty of left-wing bias, and comes weeks after the Government accused the Today programme of misrepresenting its spending cuts. Mr Humphrys, 71, told the Sunday Times magazine that the corporation is now facing an ‘existential crisis greater than it’s ever seen’ because ‘people, serious, thoughtful people, talk seriously and thoughtfully about the future of the BBC in a way that they haven’t before.’

The veteran presenter said the last Labour government’s controversial immigration policy was not sufficiently ‘interrogated’ by the BBC, adding: ‘The Labour government underestimated by a factor of 10 the number of people who were going to move from Poland.’ He said the BBC was ‘frightened of appearing racist’, adding: ‘We were too institutionally nervous of saying, isn’t immigration getting a little bit out of hand? And can we be critical of multiculturalism?’

Germany has been marking two anniversaries this year — one a celebration, the other a painful duty. The 25th anniversary of the Mauerfall (as Germans call the fall of the Berlin Wall) is one of those rare events in German history about which they can feel unequivocally happy. The centenary of the First World War is, naturally, a lot more awkward. There’s scant affection here in Germany for the monocled militarists who led the Second Reich to destruction, but a hundred years after Kaiser Wilhelm invaded Belgium the jackboot is on the other foot.

Now the Germans are the good guys, the financial saviours of a debt-ridden continent — and Europe’s shared security looks increasingly uncertain in the face of Russian militarism. Its former foes are now wondering if she might be persuaded to flex her muscles once more.

Anders Fogh Rasmussen, the former Nato secretary general, has been among the considered voices calling for Germany to start punching its diplomatic weight. ‘Germany is a normal country today, with the kinds of rights and duties other countries have,’ he said earlier this year. With Putin pushing westwards, and possibly menacing Nato states, Europe needs Germany like never before — not just as an economic power-house, but as a military presence too. Europeans no longer fear Germany. But do the Germans still fear themselves?

The allegations are especially serious because Barclays and Deutsche Bank, among other banks, are being investigated by the DFS over the foreign exchange market. Using algorithms in trading systems is common practice at banks, but employing them as part of an effort to profit from manipulating forex rates could suggest the problem was more widespread than a select few traders.

Neither Barclays nor Deutsche Bank were among the six banks that so far paid £2.7 billion to settle claims with UK, US and Swiss regulators last month.

The French statistics agency INSEE said core inflation fell to -0.2 percent in November from a year earlier, the first time it has turned negative since modern data began. The measure strips out energy costs and is designed to “observe deeper trends” in the economy. The price goes far beyond falling oil costs and is the clearest evidence to date that the eurozone’s second biggest economy is succumbing to powerful deflationary forces.

“Eurozone deflation is now inevitable. There is no way around it,” said Andrew Roberts, at RBS. “We think yields on German 10-year Bunds will fall to 0.42 percent next year.” “The ECB is presiding over a deflationary disaster. They need to act fast and aggressively or else markets will start to attack Italian debt. Italy’s nominal GDP is falling faster than their borrowing costs and that is pushing them towards a debt spiral,” he added.

The Bank of Italy’s governor, Ignazio Visco, said any further falls in prices at this stage could have “extremely grave consequences for economies with very high public debt levels, such as Italy”.

Indeed, the number of Americans relying on government assistance to obtain basic food may be higher now than during the Great Depression. The only reason we don’t see “soup lines” like we did in the 30s is because of the massive food stamp program. And while apologists for government and bank policy point to unemployment as being better than during the 1930s, even that claim is debatable.

Quantitative easing won’t help … it will only make things worse. This isn’t an issue of left versus right … it’s corruption and bad policies which help the super-elite but are causing a depression for the vast majority of the American people. If a patient is bleeding out, doctors have to suture the wounds before they decide whether to give more blood or to taper off the amount of transfusions. But Europe has never treated the wounds … As we noted in 2011, failing to prosecute financial fraud – on either side of the Atlantic – is extending the economic crisis.

In 2012, we pointed out that European (and American) governments were encouraging bank manipulation and fraud to cover up insolvency … trying to put lipstick on a pig.

China would need to satisfy the Washington-based lender’s economic benchmarks and get the support of most of the other 187 member countries. The Asian nation is likely to pass both tests, said Eswar Prasad, who until 2006 worked at the IMF, including spells as heads of its financial studies and China divisions.

“It will certainly help China’s objective of making the renminbi a more widely-used currency,” said Prasad, a professor of trade policy at Cornell University in Ithaca, New York, and senior fellow at the Brookings Institution in Washington. Renminbi is China’s official name for the yuan. Approval hinges partly on whether the IMF reverses its 2010 decision that the yuan wasn’t “freely usable.” There’s growing evidence that the currency may now pass this test, after already qualifying on the IMF’s other condition of being a large exporter.