The experts called on the G8 industrial nations and leaders of major developing countries, who will gather in Italy in July to discuss the crisis, to boost lending by the International Monetary Fund and remove its tough conditions on government deficits which have worsened economic crises in the past. They called for global coordination to avoid competition to cut taxes, and for a worldwide increase in tax on high earners. The group, which has dubbed itself the "Shadow GN," urged governments to opt for bank nationalizations rather than bailouts in order to drive the pace of fresh lending.

"While the worst consequences of the freezing of credit markets as a result of the failure of Lehman Brothers is now easing it would be wrong to think that the global economic downturn is over," Stiglitz told a news conference, dismissing those who saw "signs of spring" in the world economy. "There is every reason to be concerned and in particular (a need) for a continuation of governments' efforts to stimulate their economies and to resuscitate the financial system."

Aggressive cost-cutting through layoffs and capital expenditure reductions has, it's true, helped many companies report profits that surpassed analysts' estimates. But beneath what can be perceived as "green shoots" of recovery, experts say, lie THE GERMINATING SEEDS OF WHAT COULD BE A MUCH DEEPER, MORE PROLONGED RECESSION. "I think the clear and present danger is the negative feedback loop for the economy," said Greg Peters, head of global-fixed income and economic research at Morgan Stanley in New York.

"If people are getting laid off and if capital expenditures are being pulled back, then that has a cascading effect that is much more long-lasting on the economy." Analysts and investors argue that while job, capex and R&D cuts may shore up individual profits temporarily, they are bad news in the aggregate. They swell the ranks of the unemployed, reduce the wages of those who keep their jobs, and hurt an already struggling economy by further crimping consumer and corporate spending.

And that will only ricochet back on the companies themselves, reducing demand for their products and services and putting additional pressure on their sales and margins.

The document, also known as the Red House Report, is a detailed account of a secret meeting at the Maison Rouge Hotel in Strasbourg on August 10, 1944. There, Nazi officials ordered an elite group of German industrialists to plan for Germany's post-war recovery, prepare for the Nazis' return to power and work for a 'STRONG GERMAN EMPIRE'. In other words: the Fourth Reich.

The industrialists included representatives of Volkswagen, Krupp and Messerschmitt. Officials from the Navy and Ministry of Armaments were also at the meeting and, with incredible foresight, they decided together that the Fourth German Reich, unlike its predecessor, WOULD BE AN ECONOMIC RATHER THAN A MILITARY EMPIRE - BUT NOT JUST GERMAN.

The Third Reich was defeated militarily, but powerful Nazi-era bankers, industrialists and civil servants, reborn as democrats, soon prospered in the new West Germany. There they worked for a new cause: EUROPEAN ECONOMIC AND POLITICAL INTEGRATION.

Is it possible that the Fourth Reich those Nazi industrialists foresaw has, in some part at least, come to pass?

At its most extreme, neglect can turn catastrophic: Experts had long expressed concern that New Orleans' aging levees could fail in the face of a major hurricane and they did dramatically in the wake of Hurricane Katrina in 2005. By contrast, the condition of the nation's water infrastructure is often hidden from view. Drinking water and efficient sewage disposal is taken for granted along with the safety of the buried pipes, but was much on the minds of several guests at this week's Reuters Infrastructure Summit.

Out of sight, water infrastructure remained largely out of mind for U.S. policymakers in the federal economic stimulus effort. The $787 billion program allotted less than $10 billion for drinking and wastewater projects. State and local officials will not turn the cash away but they say much more is needed to fix and add capacity to the nation's water systems.

"It's something that concerns me, because we pay so much attention to things we see and this is something we don't see - until it's too late," Maryland State Treasurer Nancy Kopp told Reuters in a recent interview. "In Maryland and other eastern states there have been repeated episodes in which pipes carrying clean water or sewage have collapsed," Kopp said.

The Sunday Telegraph has published more details, largely of Labour ministers' claims for their second homes. Energy Secretary Ed Miliband said MPs faced "a challenge and wake-up call" and the system needed to change. Sir Stuart said an independent audit body - separate from the Commons fees office which agrees the claims - would be set up to analyse "every claim that is made".

"We will create a new body, a different body that will be separate," Sir Stuart - a member of the Commons Estimates Committee, told the BBC. "I would hope that once this body is created and is up and running it will then be hived off to the private sector to another firm, so there is an entire arm's length between members of Parliament and those who are dispersing amounts under allowances." He said MPs HAD "LOST THE CONFIDENCE OF THE PUBLIC AND WE NEED TO GET THAT BACK".

Northern Ireland Secretary Shaun Woodward, one of the richest men in the cabinet who does not take his full ministerial salary, reportedly claimed £100,000 in mortgage interest over four years. He told the BBC: "I think the public look at us right now, think WE HAVE ALL GOT OUR NOSES IN THE TROUGH - OUR PROFESSION LOOKS SHAMEFUL - IT'S EMBARRASSING. Right now if I try to make almost any defence of our collective position - or my position - it looks terrible." He said MPs' expenses had to be looked at - but other public bodies, like the BBC, should also release their expenses details.

Louis Caldera, the director of the White House Military Office, handed in his resignation Friday. The news comes as Defense Secretary Robert Gates says the Air Force flyover that sparked a panic was not adequately reviewed and approved by senior service and department officials. The flyover was arranged as part of a photo opportunity for White House records. The official photo was released along with Caldera's resignation and the official report on the flyover.

Caldera said the controversy had made it impossible for him to effectively lead the White House Military Office. "Moreover, it has become a distraction in the important work you are doing as president," Caldera said in his resignation letter to President Barack Obama. THE SIGHT OF THE HUGE PASSENGER JET AND AN F-16 FIGHTER PLANE FLYING PAST THE STATUE OF LIBERTY AND THE LOWER MANHATTAN FINANCIAL DISTRICT SENT PANICKED OFFICE WORKERS STREAMING INTO THE STREETS ON APRIL 27. Obama said it would not happen again.

Caldera's office approved the photo-op, which cost $35,000 in fuel alone for the plane and two jet fighter escorts. The Air Force estimated the photo shoot cost taxpayers $328,835.

The sum was greater than the $2.8 billion of imports and exports to the US and represented the second consecutive month that China had topped the trade table. "It is a historic moment," he said, adding that he expected China to remain in pole position for the rest of the year because its economy is still growing healthily. "China is now a platinum account [for Brazil]," said Douglas Smith, a Latin American economist for Standard Chartered bank.

The US has been Brazil's principal trading partner for nearly 80 years, but a sudden surge in Chinese demand for Brazilian iron ore in the first quarter of this year dislodged the Americans. The news is the latest sign of China's increasing challenge to US hegemony in Latin America. China has been steadily increasing its sphere of influence and has become particularly close to the four "Red" South American countries: Venezuela, Bolivia, Ecuador and Peru. China is already Chile's primary trading partner.

The board of Roche, a Swiss-based company which has globalised the name it inherited from its founder, Fritz Hoffmann-La Roche in 1896, must be laughing. It has a drug which has become a household name and been stockpiled by the millions of boxes all over the world, against a potential pandemic that the World Health Organisation (WHO) warns is almost upon us. Roche has supplied governments with 220m courses worldwide. The UK has stored enough to treat half the population. AND YET TAMIFLU IS OF LIMITED USE.

Dr Tom Jefferson, of the Cochrane Collaboration in Rome, HEADED THE MOST AUTHORITATIVE, NON DRUG-COMPANY CONDUCTED (AND THEREFORE WITHOUT THE VESTED INTERESTS) REVIEW YET DONE ON THE FLU DRUGS. He is appalled that such drugs (neuraminidase inhibitors) could be widely used and relied on as the solution to a flu pandemic at the expense of things that really work - like washing your hands dozens of times a day.

The Cochrane review, carried out in 2006 but regularly updated, most recently this year, says the neuraminidase inhibitors do not stop people becoming infected, although they do decrease the amount of virus sprayed from people's noses when they sneeze all over you in the bus or office. They can also reduce the complications of flu, such as bronchitis and pneumonia. The review concluded that THEY MIGHT BE OF SOME HELP IN A PANDEMIC, but strongly recommended they should not be handed out routinely or used for normal winter flu outbreaks.

OF COURSE, GOVERNMENTS AND THE PUBLIC WANT MAGIC BULLETS. There is a belief that where there is an illness, there must be a cure. HANDING OUT DRUGS REDUCES PANIC. People are more likely to stay put at home where they cannot infect too many people if they feel they are being treated.
And there is a role for Tamiflu in severe and complicated cases caught early. But Jefferson balks at the idea of drug hand-outs at schools. "THE SPREAD WILL STOP, BUT ONLY BECAUSE THE CHILDREN HAVE BEEN SENT HOME," he says.

The most important trial in disease prevention of the last 50 years was carried out in 2005 by a US doctor called Stephen Luby. "For that he should receive a Nobel prize," says Jefferson. Luby carried out a randomised trial in squatter settlements in Karachi, promoting hand-washing in half the families. CHILDREN UNDER FIVE WHO REGULARLY WASHED THEIR HANDS had half as many episodes of diarrhoea, impetigo and acute respiratory infection. IT SAVED LIVES. IF THE BIG PANDEMIC HITS, WASHING HANDS WILL SAVE MORE LIVES THAN TAMIFLU, HE PREDICTS.

Meanwhile Tamiflu is sought everywhere. In 2005, Roche asked for help in manufacturing enough of the stuff to satisfy world demand and it got 300 offers from other manufacturers. It has now established 19 partners to produce the drug in 10 locations on three continents. It has also given licences to Indian and Chinese generic companies to make it for the developing world. IF ONLY IT REALLY WAS A MIRACLE CURE.

The sandy beaches north of Chittagong in Bangladesh look like giant steel graveyards. Ships line the banks ready for dismantling. Others are so far disassembled that their hulls are all that is left protruding morosely from the water, according to shipping industry journal Lloyd's List. All kinds of vessels get broken down here: bulk carriers, container ships, vehicle transporters and oil tankers. THE WRECKS ARE REMNANTS OF A DISAPPEARING WORLD. Once they sailed the oceans as flagships of globalization. Now they're symbols of an order that threatens to sink with them.

The global economic and trade crisis is so severe that a growing number of ships, some larger than the Titanic, are being pulled from their routes and sent to scrap yards to be sold for parts. Freight and charter rates have fallen and regularly scheduled passenger lines are being cancelled. Those container ships that are still sailing can barely cover their costs. Over-capacity created in recent boom times has accelerated the trend toward scrapping ships.

It's a "non-stop boom," the Hindustan Times writes. Blowtorches hiss, steel windlasses screech, and sledgehammers pound along the 11 kilometer beach. Cranes remove the superstructures from the deck. A bulk freighter that until recently might have carried bauxite or grain disappears within 40 days. A worker at Pakistan's Gadani beach earns 280 rupees - less than three euros - a day.

The worms are packed up to 3,000 per square meter and chew through the grasslands like lawnmowers, leaving only brown soil in their wake, Xinhua said. The agency described it as the worst plague in three decades in Usu, about 280 km (175 miles) west of the Xinjiang capital Urumqi.

Local experts could not identify the 2-cm (1 inch) long, thorny green worm with black stripes and samples had been sent to Xinjiang Agricultural University, Xinhua said. "The pasture was green a week ago. But now the worms are creeping around, and they even come into my house. I have to sweep them out several times an hour," Xinhua quoted one herdsman as saying.

Xinjiang has in the past used chickens, ducks and other birds to fight locusts, which are also a menace on the grasslands, but so far they have shown little interest in the pesky worms.

Officials at the agency's headquarters in Geneva said they were discussing changes to the six-point scale TO MAKE CLEAR IN THE FUTURE THE GRAVITY OF THE THREAT POSED by a new virus. The move comes against a backdrop of intensifying attacks on the WHO, which has been accused of "crying wolf" over its decisions to raise its pandemic alert from level three to an unprecedented five. This comes amid indications it may even go to the maximum level six.

Media organisations initially seized on the raising of the alerts in front page headlines around the world, but as it has emerged that the death toll has stayed relatively low, so the criticism has mounted. As of Thursday morning the WHO had confirmed 2,099 cases in 23 countries, including 44 deaths. While designed to identify and classify the spread of a new flu virus between humans around the world, the WHO's system of pandemic alerts provides no indication of the danger of the virus.

Even if the A (H1N1) virus in Mexico proves no more lethal than a typical seasonal flu, it could still soon trigger the highest level six WHO pandemic alert once it has been identified as spreading widely between humans in different parts of the world. Margaret Chan, WHO director general, has stressed that an increase to level six is a technical change which does not mean that people around the world are at serious threat. BUT HER REASSURANCES CLASH WITH A WIDELY-HELD PUBLIC UNDERSTANDING OF A PANDEMIC AS A SERIOUS INFECTIOUS DISEASE.

The trend has triggered warnings that a growing culture of entertaining children with TVs and computer games and a lack of boundaries at home or family troubles are increasingly manifesting themselves in class as disruptive behaviour. However, sceptics said the increase was fuelled by a growing tendency to label anti-social traits as medical conditions to excuse poor behaviour or academic underachievement.

Schools and doctors are said to be under increasing pressure from parents to diagnose conditions such as attention deficit hyperactivity disorder (ADHD) and dyslexia, whereas cynics claim in many cases these children are simply naughty or slower to learn. There have also been claims that the surge is partly down to parents 'playing the system' of granting extra time in exams to 'special needs pupils' over recent years. Some experts even claim there is anecdotal evidence that schools identify pupils as having special needs as a means of securing extra funding.

A spokesman for the Department for Children, Schools and Families said: 'These rises are expected as schools and local authorities are now identifying the needs of children more quickly to enable every child to realise their potential and play a full part in the life of their school and their community.

Besides determining whether a vaccine would be effective and safe, government officials and private laboratories will need to answer practical and financial questions: Does it make sense to order hundreds of millions of doses and organize a mass vaccination campaign for a virus that, so far, isn't widespread and doesn't seem particularly lethal? The Centers for Disease Control and Prevention said Wednesday that there are 642 confirmed U.S. cases and an additional 850 probable cases of the new virus, officially designated influenza A (H1N1). The CDC has confirmed two U.S. deaths.

PRESIDENT BARACK OBAMA LAST WEEK REQUESTED A $1.5 BILLION EMERGENCY APPROPRIATION TO DEAL WITH SWINE FLU, INCLUDING DEVELOPMENT OF A VACCINE. Jesse Goodman, chief medical officer at the Food and Drug Administration, said the basic preparations for a vaccine are being carried out with heightened urgency. He said in an interview that production could begin quickly if the government decides to move forward.

If seed stock for the new virus is available before manufacturers are finished with the seasonal-flu vaccine, the U.S. government will have to decide whether to push those manufacturers to drop regular production early and switch over to making the swine-flu vaccine. THE SEASONAL FLU IS ESTIMATED TO KILL AS MANY AS 500,000 PEOPLE WORLD-WIDE EACH YEAR.

Within minutes of release of the bank "stress test" results, which showed smaller capital needs than once feared, several of the 10 firms needing capital immediately issued statements detailing how they planned to raise it. Bank of America Inc, which accounted for almost half of the total capital shortfall with $33.9 billion to be raised, said it planned to sell assets, issue $17 billion in common stock, and take other steps to fill the hole.

"We're going to be watching carefully to make sure they give us credible plans for raising capital and becoming privately owned again," Federal Reserve Chairman Ben Bernanke said at a news briefing, referring to the entire group and not just Bank of America. The examinations, which involved more than 150 regulatory officials poring over the books of the 19 largest firms, effectively drew a line between healthy and weak, and quantified exactly how much those institutions struggling under the weight of souring loans must raise.

"I'M A SKEPTIC. I DON'T SEE THIS AS A GENUINE AUDIT. They have been playing the marketing game strongly lately," said Robert Andres, president of Andres Capital Management in Philadelphia. "The President, (Treasury Secretary Timothy) GEITHNER AND BERNANKE, THEY ARE TRYING TO BUILD THE MOMENTUM OF CONFIDENCE. They are kicking the can down the road to stall for time."

The budget plan seeks $12.1 billion for the Internal Revenue Service, responsible for collecting and enforcing individual and corporate tax laws, for fiscal 2010, which begins October 1. That amounts to a roughly 5.2 percent increase over the IRS budget for 2009, which was $11.5 billion. The budget proposal, which must be approved by Congress, includes a $890 million request to boost tax enforcement, including in the international arena, an increase of $400 million from 2009.

Underreporting of income by individuals and businesses led to a "tax gap" of $345 billion in 2001, the most recent year available, according to the government. Of that, corporate income tax and employment tax underreporting made up about $84 billion, according to a report by the Government Accountability Office. The Obama administration said it would use the funds to further expand its efforts to boost compliance outside the U.S., "placing greater scrutiny on cross-border transactions and tax issues."