The unexpected breakdown in talks between Greece and its private-sector creditors has taken the country a step closer to bankruptcy after a failure to sign up lenders to a voluntary and "orderly" 50 per cent haircut to their holdings. Greece's finance minister Evangelos Venizelos said talks would resume on Wednesday to "bridge differences" but insiders remained sceptical that a deal could be stitched at such a late stage.

The clock is ticking for Greece, as a deal must be reached before March 20, when the country is due to receive a further 130 billion euros (107 billion pounds) bail-out tranche from the International Monetary Fund and must make a key 14.5 billion euros bond payment. The problem centres on the difference between lenders agreeing to a "voluntary" and orderly default - which would mean swapping into bonds with a lower value - and lenders refusing terms, which would cause a default.

This type of "credit event" would trigger billions of insurance claims through credit default swaps (CDS), insurance policies taken out to protect investors in the event of a default.

The problem is that, of the 315 billion euros of Greek debt outstanding, only 7.8 billion euros is covered by Greek CDS. The vast majority of Greek debt is held by European banks, which have little insurance on their exposure. Most Greek CDS are held by hedge fund managers - accused by Germany and France of financially benefiting from sovereign woes. Some claim that hedge fund managers would benefit from a default, with Europe's banks being the losers.

Use of the European Central Bank's three-year funding programme is expected to exceed 500 billion euros in February when lenders are offered their second chance to access its new long-term refinancing operation (LTRO), according to Credit Suisse. Last month, banks borrowed a total of 489 billion euros using the LTRO, which has effectively seen the ECB take on the role of providing a large part of the funding required by several eurozone banks. Analysts at Credit Suisse point out the ECB's willingness to provide an increasing proportion of the short and longer-term funding required by eurozone banks has led to a widening gap in the size of its balance sheet versus those of the Bank of England and the US Federal Reserve.

The willingness of the ECB to provide more funding to eurozone banks is in stark contrast to the Bank of England's much tougher approach to major UK lenders. For instance, while eurozone banks can easily put up covered bonds as collateral against ECB loans, the Bank specifies what collateral is acceptable for each of its funding programmes and applies tighter criteria against their use. While eurozone banks are allowed to issue covered bonds specifically for use as collateral to access ECB funding the Bank prohibits such behaviour. The disparity has led to what Credit Suisse describes as an "uneven playing field" between UK and eurozone banks.

Bank officials have been clear they do not think UK lenders require any new assistance and should not have access to cheaper funds.

And yet both events are important because they show us the mechanism behind this year's likely unfolding of events. The eurozone has fallen into a spiral of downgrades, falling economic output, rising debt and further downgrades. A recession has just started. Greece is now likely to default on most of its debts and may even have to leave the eurozone. When that happens, the spotlight will fall immediately on Portugal, and the next contagious round of downgrades will begin.

Europe's insufficient rescue fund, the European Financial Stability Facility, now also faces a downgrade because it had borrowed its ratings from its members. The way the EFSF is constructed means that its effective lending capacity will thus be reduced. Even though the French downgrade did not come as a surprise, the eurozone member states have no plan B for this, just a few stopgap emergency scenarios. They may decide to run the EFSF and its permanent successor concurrently. They may also provide the latter with a full immediate allotment of its capital. But this will create gaps in national budgets in a bad year.

By downgrading France and Austria but not Germany and the Netherlands, Standard & Poor's also managed to shape expectations of the economic geography of an eventual break-up. A downgrading of all triple A rated members would have been much easier to deal with politically. Germany is now the only large country left with a triple A rating. The decision will make it harder for Germany to accept eurozone bonds. The ratings wedge between France and Germany will make the relationship even more unbalanced.

Even economic reforms, necessary as they may be for other reasons, cannot solve this problem. This is another European illusion. We are now at a point where effective crisis resolution would require a strong central fiscal authority, with the power to tax and allocate resources across the eurozone. Of course, it will not happen.

This is the ultimate implication of last week's ratings downgrades. We have moved beyond the point where a technical fix would work. The toolkit is exhausted.

"Sarkozy has built his whole strategy on being the most credible candidate on the economy, on being the surest leader in a crisis," Riviere said. "That line is getting harder and harder to hold. It's getting harder to say that he's an equal in the Franco-German couple, that he's a power at European summits."

Trailing Socialist challenger Francois Hollande in the polls, Sarkozy called on French voters yesterday to back his "economic reforms" in his first comments since the downgrade, saying "the crisis can be overcome on condition that we have the collective will to do so." Although Hollande stepped up attacks on the president, he too may have to water down campaign promises in response to the rating change.

Sarkozy's government tried to play down the importance of the downgrade or deflected blame by pointing to decades of state excesses. "It's not a catastrophe," Finance Minister Francois Baroin said. "It's like a pupil who had 20 out of 20 for a very long time and now has a 19. It's still an excellent grade."

Bolton was on "Aaron Klein Investigative Radio" on New York's WABC Radio. The former ambassador was asked about a statement from a former head of UN nuclear inspections claiming Iran is now just a year or so away from having enough enriched uranium to assemble a nuclear bomb. Olli Heinonen wrote in an article published earlier this week that Iran made this advancement after switching production of its higher-grade enriched uranium to a new, underground site.

Reacting to the one-year timeline, Bolton stated, "I think it can be even less than that." Continued Bolton: "They've got, by publicly available information from the International Atomic Energy Agency, enough low-enriched uranium that if enriched up to weapons grade would be enough for four weapons. So they've got more work to do, but they are already well on their way," he said. Bolton told Klein that 2012 will be a key year to stop Iran's nuclear program.

Rating agency Standard & Poor's downgraded nine of the euro zone's 17 countries on Friday, with France and Austria losing their top-notch status, and said it would decide shortly whether to cut the euro zone's bailout fund from triple-A. Adding to jitters, talks have stalled over a Greek bailout, putting Athens under strong pressure to complete a deal with private creditors to cut debt to more sustainable levels or risk default in March when 14.5 billion euros in repayments fall due.

"I see very little upside for the euro in the coming weeks. There are still too many negatives and too many uncertainties," said Niels Christensen, currency strategist at Nordea in Copenhagen. "All the signals from S&P were that the crisis will get worse before it gets better and I struggle to find an argument for not being short of euro/dollar at the moment."

Investors will be on alert for European Central Bank forays into the secondary market, with the perception of its commitment to keep borrowing costs for Italy and Spain affordable seen as key to prevent a fast escalation of the crisis. Italy takes a break from supply this week, but France will attempt to sell up to 8 billion euros of debt on Thursday and Spain comes to the market with sales of 2016, 2019 and 2022 bonds. Worries that European financial troubles would drag down global growth and sap appetite for commodities weighed on industrial metals such as copper, while a shift to perceived safe haven assets also boosted Japanese government bonds.

South Carolina is in a standoff with Democratic President Barack Obama's administration over a new state law that would require residents to produce a photo ID before they could vote. Federal officials say it could disproportionately keep black voters away from the polls. For South Carolina's Republican leaders - and Republican presidential candidates seeking support in the state's primary on January 21 - the Justice Department's move is the latest in a series of intrusions into state business by Washington.

Republican candidates are waving the banner of states' rights as they tout their small-government credentials. "Each of our states are under assault right now by this administration," Texas Governor Rick Perry said Saturday at a candidates' forum in Charleston. "We may be under assault - South Carolina, they're actually at war with you." Such declarations might make for smart politics in a state that has a suspicion of Washington woven into its DNA, but they risk stirring up the race-baiting that has been an ugly feature of South Carolina politics in the past.

The rallying cry of states' rights was used to defend slavery before the Civil War and racial segregation during the post-World War Two battles over civil rights. And the old attitudes haven't disappeared entirely. "I hate to say it, but ever since the schools integrated (in the 1960s), it went downhill," unemployed paralegal Vicki Cotterman said at a campaign stop for Perry in Walterboro on Thursday. "The white boys try to be like some of the black thugs - they go around with their pants down to their knees. It's disrespectful."

Insurance agent Patti McBride said she believed Obama, a practicing Christian, actually is a Muslim because he has an unusual first name. "Our country was founded on Christianity, and now we have a Muslim with a Muslim name as the president..." McBride said.

McGee says he will publish critical commentaries alongside the excerpts from Mein Kampf, which will go on sale in Germany the week after next. He plans to print three 15-page editions, with a print run of 100,000 each. The British publisher caused controversy back in 2009 when he published Zeitungszeugen ("Newspaper Witness"), which included annotated facsimiles of Nazi newspapers like Der Angriff and the Volkische Beobachter.

The authorities in the state of Bavaria, which owns the copyright to Nazi publications, including Mein Kampf, confiscated more than 3,000 copies of Zeitungszeugen and pressed charges against McGee for publishing the texts. However, a Munich court ruled in 2009 that although the publication of Nazi propaganda is illegal, McGee was not breaking the law because his intention was not to whip up racial hatred. The judges also ruled that printing Nazi swastikas from the original mastheads, which are generally outlawed in Germany, was legal in an educational context.

McGee is, therefore, unlikely to face any legal hurdles over the publication of the extracts from Hitler's book, which the future dictator wrote while serving time in prison in Munich for attempting to seize power in the 1923 Beer Hall Putsch. Dieter Graumann, president of the Central Council of Jews in Germany, greeted McGee's plans, saying he hoped that it would "go some way to demystifying" the book.

"It's been in the background for quite some time," said Edward Yardeni, a leading investment strategist. "I've characterized it as one of the four horsemen of the apocalypse for 2012. Now it's come from behind to be at the head of the pack." The push for tighter sanctions on Iranian oil exports comes at a time when oil prices are already high. Last year was a record-shattering year for oil prices, which averaged $107 a barrel, about 14 percent more than in the previous record year of 2008, according to figures from the Organization of Petroleum Exporting Countries. The US oil import bill - for crude and refined products - jumped about $125 billion from 2010 to 2011.

Rising oil prices could hurt the fragile global economy, which includes economists' other big worry: Europe. Barclays Capital analysts noted on Friday that in terms of the euro currency, oil prices "have now almost matched their previous peak of July 2008," draining money from economies already struggling with the sovereign debt crisis. Three of Europe's most troubled economies - Greece, Spain and Italy - are also the EU's biggest importers of Iranian crude and would be most affected by a new ban (the United States already bars imports of Iranian crude oil).

"At current prices, the world economy is going to grow at 3 percent to 3.5 percent this year," said Adam Sieminski, chief energy economist at Deutsche Bank. "That's not great, but okay. At $125 a barrel, it is only going to grow 2.5 percent, and that's not very good. And at $150, we might only grow 1 percent, and that's a disaster."

Meanwhile, US and European efforts to put a crimp in Iran's exports appear to be having an effect already. US restrictions on doing business with Iran's central bank have been felt in India, the second-largest buyer of Iranian oil. Refiners there are seeking new suppliers after India's government threatened not to sign a waiver to protect them from US sanctions, according to Lloyd's List. In addition, Lloyd's List said, since Iran's threat to close the Strait of Hormuz, Turkish banks used by Indian refiners to pay for Iranian crude are refusing to transfer those funds.

But he insisted all options were open in relation to Tehran's "increasingly dangerous" development of nuclear weapons. "We have never ruled anything out. We have not ruled out any option, or supporting any option. We believe all options should be on the table, that is part of the pressure on Iran," he said. Mr Hague added: "We are clearly not calling for or advocating military action. We are advocating meaningful negotiations, if Iran will enter into them, and the increasing pressure of sanctions to try to get some flexibility from Iran.''

Western governments, including Britain, have moved to step up sanctions over Iran's nuclear programme, threatening an embargo on its vital oil exports. In response, Tehran has talked of blocking the Straits of Hormuz oil shipment route. PM David Cameron, visiting Saudi Arabia on Friday, warned Iran President Ahmadinejad the world would "come together" to ensure the straits remained open. Mr Hague said governments must "not be put off further sanctions by bluster or statements from Iran". He was confident the EU would adopt "very significant" extra measures next week covering the oil and possible other sectors, to put "additional peaceful, legitimate pressure on Iran".

"Blaming the other is an abdication of responsibility and a failure of leadership, a leadership that the people so desperately need," the bishops declared. "We have heard and we make this conviction our own: to be pro-Israeli has to mean being pro-Palestinian. This means being pro-justice for all, whose certain fruit is lasting peace."

The bishops, who come from England, the United States, Canada, Spain, Germany, France and other nations, affirmed the importance of resumed dialogue between the Palestinian Authority and Israel. "A negotiated agreement is urgently required," they stated, lamenting that dialogue is "threatened and undermined by extremism and intolerance of the other, the signs of which are only too apparent in the attitudes, judgments and actions of far too many in the world today."

"This is a concern for both sides," the bishops continued, "and we appeal for tolerance and courageous leadership, able to show forgiveness and humility, to promote peaceful co-existence." The bishops' statement concluded with a call to political leaders of both sides and from the bishops' own countries to "show courage, resolve and creativity so the simple hopes of the majority for peaceful co-existence are realized. The fidelity to their way of life of Jews, Christians and Muslims should always be such that there is deep-seated openness to all others."

Specifically, the DHS announced the NCO and its Office of Operations Coordination and Planning (OPS) CAN COLLECT PERSONAL INFORMATION FROM NEWS ANCHORS, JOURNALISTS, REPORTERS OR ANYONE WHO MAY USE "TRADITIONAL AND/OR SOCIAL MEDIA IN REAL TIME TO KEEP THEIR AUDIENCE SITUATIONALLY AWARE AND INFORMED."

According to the Department of Homeland Security's own definition of personal identifiable information, or PII, such data could consist of any intellect "that permits the identity of an individual to be directly or indirectly inferred, including any information which is linked or linkable to that individual." Previously established guidelines within the administration say that data could only be collected under authorization set forth by written code, but the new provisions in the NOC's write-up means that ANY REPORTER, whether someone along the lines of Walter Cronkite or a budding blogger, CAN BE VICTIMIZED BY THE AGENCY.

The department says that they will only scour publically-made info available while retaining data, but it doesn't help but raise suspicion AS TO WHY THE GOVERNMENT IS GOING OUT OF THEIR WAY TO SPEND TIME, MONEY AND RESOURCES ON WATCHING OVER THOSE THAT HELPED BRING NEWS TO THE MASSES.

The website Fast Company reports that the intel collected by the Department of Homeland Security under the NOC Monitoring Initiative has been happening since as early as 2010 and the data is being shared with both private sector businesses and international third parties.

The launch was part of an expert conference on the impact of Sunday work on the health, safety and social integration of workers. The conference was opened by Luca Jahier, president of Group III (Civil Society) of the EESC and brought to a conclusion by George Dassis, president of Group II (Employees). Jahier emphasized that Europe needs a social model based not only on production and consumption, but also on shared free time for social interaction and societal engagement: "WE NEED TIME FOR THE COLLECTIVE RITUALS OF SOCIETY, not only mass occupations like shopping."

Among the expert speakers were the psychologist Professor Friedhelm Nachreiner, who recently testified in the German Constitutional Court proceedings on Sunday work that resulted in a ban on shop openings on Sundays in that country. He presented the results of numerous studies, proving: "Whatever set of data you look at, whatever aspects you factor in or leave aside, the result is always the same: ANY PERSON WORKING ON SUNDAYS IS NEGATIVELY AFFECTED BOTH IN TERMS OF HEALTH AND SAFETY." The social scientist Dr Jill Ebrey, who undertakes research on the social value of synchronised free time at weekends for workers, helped in finding explanations for these findings.

The members of the Alliance demand that both European and national legislation needs to be more protective of workers' private lives, including the right to shared free time for family, social and civic engagement, and culture. They stress that societies need a collective rhythm, because people are embedded in social structures that are necessary for their well-being and for social cohesion: "Apart from our scientific findings, the political decision comes down to what sort of society we want to live in: a participative society, or a society where more and more people withdraw from interaction - with the negative impacts on democracy this would have," concludes Professor Nachreiner.

(Upcoming conference - "Time Conference" of the German Sunday alliance - to be held on the 15 February 2012)

"The 4th national Time Conference of the German Sunday Alliance will gather on the topic "SUNDAY IS OUR RIGHT". The Conference will unveil NEW LEGAL TOOLS FOR SUNDAY PROTECTION, new action possibilities and will offer an occasion to exchange with crucial supporters and partner organisations.

This, they said, has become one of the treaty objectives of the European Union (EU) since the entry into force of the Lisbon Treaty. In looking at how best to react to the current economic and financial crisis affecting Europe the bishops recommend that the EU become "a viable 'Community of Solidarity and Responsibility.'"

"From the start, the project of European unification has been more than purely economic," the statement concluded. "It has been, and is, a political and moral project: it should serve justice and peace in Europe and worldwide."

Here are some extracts from the Bishops' Statement:

"The application of the fundamental principle from Catholic social teaching which states that the goods of this world are to be shared by all the task of government to provide guaranteed market-free times..."

"It is right that market activity is restricted on ...Sundays, because on those days, for national, cultural or religious reasons, peace and quiet and time to collect one's thoughts take precedence over economic activities. For the same reason, economic activity is restricted or ceases entirely in certain public spaces and media, eg the prohibition on advertising during the broadcasting of Church services ... it is not just the job of the State to impose restrictions on the market. Opting for a market economy goes together with opting for freedom of the people. This is why we need individuals to assume responsibility freely and based on the principle of solidarity."

"In the coming decades, too, Europe will be have to rely on workers from other parts of the world in order to ensure that the level of economic performance is sufficient to cover the financing of social security benefits. Countries of origin and host countries should work together in the interests of well-ordered handling of the flows of migrants, in order to reduce to a minimum suffering and deprivation for the new arrivals and unavoidable burdens for those accepting them."

"At all events, the value of the human beings who come to Europe from other countries must be respected by all. Their inalienable fundamental rights must be respected."

That represents a symbolic step closer to doomsday, a change from the clock's previous mark of six minutes to midnight, set in January 2010. The clock is a symbol of the threat of humanity's imminent destruction from nuclear or biological weapons, climate change and other human-caused disasters. In making their deliberations about how to update the clock's time, the Bulletin of the Atomic Scientists focused on the current state of nuclear arsenals around the globe, disastrous events such as the Fukushima nuclear meltdown, and biosecurity issues such as the creation of an airborne H5N1 flu strain.

The Doomsday Clock came into being in 1947 as a way for atomic scientists to warn the world of the dangers of nuclear weapons. That year, the Bulletin set the time at seven minutes to midnight, with midnight symbolizing humanity's destruction. By 1949, it was at three minutes to midnight as the relationship between the United States and the Soviet Union deteriorated. In 1953, after the first test of the hydrogen bomb, the doomsday clock ticked to two minutes until midnight.

The Bulletin - and the clock - were at their most optimistic in 1991, when the Cold War thawed and the United States and Russia began cutting their arsenals. That year, the Bulletin set the clock at 17 minutes to midnight. From then until 2010, however, it was a gradual creep back toward destruction, as hopes of total nuclear disarmament vanished and threats of nuclear terrorism and climate change reared their heads. In 2010, the Bulletin found some hope in arms reduction treaties and international climate talks and nudged the minute hand of the Doomsday Clock back to six minutes from midnight from its previous post at five to midnight.

With today's decision, the Bulletin repudiated that optimism. Other factors that played into the decision included the growing interest in nuclear power from countries such as Turkey, Indonesia and the United Arab Emirates, Benedict said. "The world still has approximately over 20,000 deployed nuclear weapons with enough power to destroy the world's inhabitants many times over," said Lawrence Krauss, an Arizona State University professor and the co-chair of the BAS Board of Sponsors. "We also have the prospect of nuclear weapons being used by terrorist non-state actors."