In an essay to be published this week, the Prime Minister is scathing of the neo-liberals who began refashioning the market system in the 1970s, and ultimately brought about the global financial crisis. "The time has come, off the back of the current crisis, to proclaim that the great neo-liberal experiment of the past 30 years has failed, that the emperor has no clothes," he writes of those who placed their faith in the corrective powers of the market.

"Neo-liberalism and the free-market fundamentalism it has produced has been revealed as LITTLE MORE THAN PERSONAL GREED DRESSED UP AS AN ECONOMIC PHILOSOPHY. And, ironically, it now falls to social democracy to prevent liberal capitalism from cannibalising itself."

Mr Rudd writes in The Monthly that just as Franklin Roosevelt rebuilt US capitalism after the Great Depression, modern-day "social democrats" such as himself and the US President, Barack Obama, must do the same again. But he argues that "minor tweakings of long-established orthodoxies will not do" and advocates a new system that reaches beyond the 70-year-old interventionist principles of John Maynard Keynes.

He mocks neo-liberals "who now find themselves tied in ideological knots in being forced to rely on the state they fundamentally despise to save financial markets from collapse".

The biggest demonstration took place in the eastern city of Vladivostok, where protesters demanded the resignation of Prime Minister Vladimir Putin. In the capital Moscow, police arrested a number of people at an unauthorised gathering by a radical party.

ANTI-GOVERNMENT PROTESTS WERE UNTHINKABLE JUST A FEW MONTHS AGO as the economy boomed with record high oil prices and as the Kremlin tightened its grip over almost all aspects of society, the BBC's Richard Galpin in Moscow says. But now with the economy in deep trouble, THERE IS REAL FEAR AMONGST ORDINARY PEOPLE ABOUT WHAT THE FUTURE WILL HOLD, he says. He adds that unemployment is rising rapidly, as are the prices of basic food and utilities.

Party leader Gennady Zyuganov said the economic crisis had exposed the bankruptcy of Mr Putin's policies.

The S&P 500-stock index lost 2.28% Friday to end at 825.88, for cumulative losses in January of 8.57%. Until Friday, its worst January from 1929 onward occurred in 1970, when it lost 7.65%. Both stock-market indexes are off by more than 40% from their 2007 highs. Back in May 2008, the Dow hit the 13,000 mark. A slew of layoff announcements, skepticism of the Obama stimulus plan, and a series of bleak earnings reports all crunched U.S. stock markets over the course of the week. Those developments left investors who exited stocks last year with little desire to put their money to work in the markets, limiting any stock rallies.

"We're at month-end, the Dow is down, and there's no ray of sunshine," said Mr. Cheslock, managing director at Cohen Capital Group LLC. "We need to get expectations down - it's good for the market over the long term. Last quarter was horrible, this quarter will probably be horrible."

Gold and the U.S. dollar were among Friday's few silver linings. The dollar rose 1.23% against the euro. February gold gained 2.5%, ending at $927.30.

The plan will involve an overhaul of the troubled asset relief programme – the $700bn bail-out fund – including strict curbs on compensation at banks receiving public aid. The Tarp overhaul is intended to restore public confidence in what is a deeply unpopular programme and ensure THAT TAXPAYER MONEY IS NOT USED TO FUND EXCESSIVE PAY, BONUSES AND DIVIDENDS TO SHAREHOLDERS. "There will definitely be a cap of some sort on bonuses," said a Wall Street executive who has taken part in talks with the authorities. "THE POLITICAL CLIMATE IS SUCH THAT THERE IS A NEED TO PUNISH WALL STREET."

The announcement will follow Friday's news that the US economy contracted at an annualised rate of 3.8 per cent in last year's final quarter – less than analysts were expecting, but still the worst quarter since 1982. The fall was cushioned by ballooning inventories, which suggest the economy could shrink faster than expected in the first quarter.

The "big bang" approach reflects the belief of Tim Geithner, Treasury secretary, and Lawrence Summers, National Economic Council director, that the Bush administration was wrong to dribble out policy initiatives. Mr Geithner intends to present a "comprehensive" plan that policymakers hope will command market confidence. Details of the financial overhaul are being finalised and have yet to be approved by President Barack Obama, but it may include both the purchase of toxic assets by a "bad bank" and insurance-style guarantees for problem assets remaining on bank balance sheets.

Most of them were elderly people who had been struggling in the heat. The heatwave has also caused power outages in Melbourne, Australia's second biggest city. Extreme temperatures of more than 40C (104F) have hit the south-eastern states of Victoria and South Australia in the past three days. If the high temperatures continue into Sunday, it will equal the worst heatwave that south-eastern Australia has witnessed in 100 years. ALREADY, IT HAS CAUSED DISRUPTION, DESTRUCTION AND DEATH.

In Adelaide, the capital of South Australia, health officials reported more than 20 sudden deaths, most of them elderly people overcome by the baking temperatures of over 40C who had suffered strokes and heart attacks. Raging wildfires have ripped through the Gippsland region of neighbouring Victoria, and at least 10 homes have been destroyed near the rural town of Boolarra.

In Melbourne, the state capital, the heatwave has meant disruption to transportation services and power outages. Trains have been cancelled because the RAIL LINES HAVE BUCKLED in the heat. An explosion at an electrical substation left over 300,000 homes without power.

President Barack Obama's advisers spent days puzzling over the question of who to send to represent America's new administration at the three-day MUNICH CONFERENCE ON SECURITY POLICY, which begins on Friday of next week. The closely watched and prestigious conference is a place where the Americans could, for example, enjoy an informal chat with the Iranians - the kind of dialogue which Obama recently, and perhaps not entirely coincidentally, said he was willing to have.

And a lot is in fact possible in Munich. When it goes well, the conference is a no-nonsense event where decision-makers can talk frankly about current international hot spots. This year 73 big-name delegates have been announced, including prime ministers and presidents, foreign and defense ministers, ambassadors and members of parliament. A summit in its own right, which resembles the G-20 more than the G-8, this year's Munich security conference is overshadowing its competitor in Davos, which is focusing on the global economic crisis.

Our current, terribly interesting, times ensure that this year's Munich conference will attract unprecedented international attention. It will provide pointers as to what will be possible during Obama's first year in office - and what won't.

Now chiefs at the £334million NHS site are to summon a local priest to see off the "spirit". Petrified staff were briefed on the spooky goings-on in an email from bosses. Senior manager Debbie Butler wrote: "I'm not sure how many of you are aware that some members of staff have reported seeing a ghost. I'm taking it seriously as the last thing I want is staff feeling uneasy at work."

Ms Butler sent the message after workers at the new £334million Royal Derby Hospital claimed they had seen a cloaked figure dressed in black roaming wards and corridors. She added: "I don't want to scare anyone any more than necessary, but felt it was best I made you all aware of the situation and what we are doing about it. I've spoken to the Trust's chaplain and she is going to arrange for someone from the cathedral to exorcise the department."

Derby was recently named the most haunted place in Britain, with more reports of ghosts, poltergeists, werewolves and other supernatural phenomena than anywhere else in the UK. The Supernatural Britain Report, conducted by Lionel Fanthorpe an expert on the paranormal, examined ghostly goings-on in 40 cities across the UK and compiled a list of the ten most spooky places in the country.

Monitoring earthquakes underneath the 10,200-foot Redoubt Volcano about 100 miles southwest of Anchorage, scientists from the Alaska Volcano Observatory warned that an eruption was imminent, sending experienced Alaskans shopping for protection against a dusty shower of volcanic ash that could descend on south-central Alaska. Unlike earthquakes, volcanoes often give off warning signs that usually give people time to prepare.

On November 5, geologists noted changed emissions and minor melting near the Redoubt summit and raised the threat level from green to yellow. It jumped to orange - the stage just before eruption - on Sunday in response to a sharp increase in earthquake activity below the volcano. Alaska's volcanoes are not like Hawaii's. "Most of them don't put out the red river of lava," said the observatory's John Power. Instead, they typically explode and shoot ash 30,000 to 50,000 feet high - more than nine miles - into the jet stream.

According to reports, Siemens seeks to end its cooperation with the French nuclear company, AREVA, because it is being refused participation in the operative leadership of the joint venture. At the Siemens headquarters in Munich, one hears that Siemens could, instead, upgrade its nuclear activities with the Russian state-owned holding company Atomenergoprom. Moscow consolidated the entire chain of production of the Russian civilian nuclear industry within Atomenergoprom and is prepared to involve Siemens in the leadership of a German-Russian nuclear alliance.

This offer is very important for the economic expansion of the Munich-based corporation and of great political significance for German-Russian cooperation. US-THINK TANKS ARE WARNING BERLIN against trying to take a middle-of-the-road position between Washington and Moscow: such a traditional seesaw policy COULD "LEAD TO DANGEROUS FRICTIONS."

Immediately following the announcement of plans for a German-Russian nuclear alliance, a prominent US policy advisor - the executive director of the Transatlantic Academy in Washington, a think tank sponsored by German and US American institutions - published a signed article in the highly influential Frankfurter Allgemeine Zeitung, warning Berlin against getting too close to Moscow, and attempting to take a middle-of-the-road position between Moscow and Washington.

In relationship to Russia, he writes, making allusion to Germany's old seesaw policy, "there are real differences between Berlin and Washington in interests, political cultures and methods. These differences could lead to dangerous frictions, if they are not handled adroitly." The author warned therefore that both capitals should be aware that "THE RUSSIAN THING COULD BECOME UNPLEASANT."

People worldwide are "depressed and traumatized" to see their life savings, including homes and pension funds, disappearing, Murdoch said at a press briefing in Davos, Switzerland. "It would be very foolish if we said here we are, we had a crisis, and how do we get out of it quickly," he said. "THE CRISIS IS GETTING WORSE. WHEN YOU GET TO THE REAL ECONOMY, VALUES ARE STILL GOING DOWN."

New York-based media company News Corporation in November reduced its fiscal 2009 profit forecast because of reduced ad sales at its newspapers and Fox television. "You have world financial markets, it doesn't really matter where you're talking about in the world," Murdoch said. "THERE'S NO HIDING PLACE, THE WORLD FINANCIAL MARKETS ARE IN A GREAT STATE OF DISARRAY."

Guy Ryder, the general secretary of the International Trade Union Confederation (ITUC), said that the current financial turmoil had triggered A SOCIAL TIMEBOMB THAT WOULD LEAD TO DEEPENING CIVIL UNREST AND SOARING CRIME. The comments from the confederation, which represents 168 million workers in 157 countries, are the most ferocious example yet of a backlash that has persuaded many who attend frequently to stay away from Davos this year. Alistair Darling, the Chancellor, became the latest political figure to stay away from the meeting, after a similar move by David Miliband, the Foreign Secretary.

Mr Ryder, speaking as strikes involving hundreds of thousands of workers erupted across France and Germany, told The Times: "WE ARE ON THE ROAD TO SERIOUS SOCIAL INSTABILITY, WHICH COULD BE EXTREMELY DANGEROUS IN SOME COUNTRIES TO DEMOCRACY ITSELF." He said: "Davos does not make me at all confident. I don't see any of the leadership here that is needed to get us out of this crisis... There is very little contrition here."

Sharan Burrow, the president of the Australian Council of Trade Unions, said, "Why shouldn't working people be angry? THEIR MONEY IS BEING USED TO STABILISE THE FINANCIAL SYSTEM, BUT IT IS THEIR WEALTH, THEIR JOBS AND THE WELFARE OF THEIR CHILDREN THAT IS BEING STRIPPED AWAY."

The EU trade commissioner vowed to fight back after the bill passed in the House of Representatives late on Wednesday included a ban on most purchases of foreign steel and iron used in infrastructure projects. The Senate's version of the legislation, which will be debated early next week, goes even further, requiring that any projects related to the stimulus use only American-made equipment and goods. THE INCLUSION OF PROTECTIONIST MEASURES HAS QUICKLY RAISED HACKLES IN EUROPE.

Catherine Ashton, the EU trade commissioner, said: "We are looking at the situation. The one thing we can be absolutely certain about is IF A BILL IS PASSED WHICH PROHIBITS THE SALE OR PURCHASE OF EUROPEAN GOODS ON AMERICAN TERRITORY, THAT IS SOMETHING WE WILL NOT STAND IDLY BY AND IGNORE." Despite the parlous state of the US economy, some major American firms, including General Electric, are also opposed to the Buy American stipulations, fearing reprisals from overseas and further damage to the global economy.

Mr Obama has sent mixed signals on free trade throughout his campaign and the early days of his presidency. He has argued that the North American Free Trade should be recalibrated in favour of American workers, but has stressed the need for a co-operative international approach to the economic crisis.

CRISIS-HIT BANKERS ARE THIN ON THE GROUND AT THE MEETING, leaving policymakers to work behind the scenes on ways to fix the financial system, ahead of a summit of the G20 group of big and emerging countries in April and a G8 summit in July. Dimon acknowledged bankers had done "some really stupid things" in the crisis, which many analysts link to bad high-risk loans made by U.S. banks which led to a credit freeze, but also criticized policymakers and regulators.

INVESTORS ARE INCREASINGLY FEARFUL OF PROTECTIONIST POLICIES AS A RESPONSE TO THE WORST GLOBAL ECONOMIC CRISIS IN 80 YEARS. "In some places there are sounds of protectionism, in some places it is real," Indian trade minister Kamal Nath told Reuters. "We are seeing greater use in the western world of anti-dumping measures, non-tariff barriers being used in Europe."

"If there are protectionist measures India will be compelled to also take commensurate measures against those countries which will be good for no one," he said. The deepening crisis, and the failure to complete the World Trade Organization's long-running Doha round to free up global commerce, have raised fears that countries would block their partners' exports to protect jobs at home.

Khazali, son of Ayatollah Abu Al-Kassam Khazali, says that AHMADINEJAD CHANGED HIS JEWISH NAME on his ID card in order to hide his roots. Khazali the son says that the president hides his Jewish roots by attacking Israel and the Jews, and by expressing strong Muslim religious beliefs.

A record of the name change still appears on the president's ID card, however, says Khazali. His old name was Saburjian, and he hails from the Aradan region of Iran. The accusations appear in an article Khazali wrote entitled, "The Jews in Iran." He says the time has come to "reveal the truth" about the Jews' role in Iran.

Ahmadinejad's relatives once told the British paper "The Guardian" that the family had changed its name for "a mixture of religious and economic reasons." Ahmadinejad will be running for re-election five months from now.

Netanyahu told the audience, "SOME POLITICIANS ARE TRYING TO BLUR THE IMPORTANCE OF THE TEMPLE MOUNT to the Jewish People by referring to it as the 'Holy Basin.' We, as Jews, know who built the Temple Mount." The term 'Holy Basin' refers to the area of the Temple Mount, the Mount of Olives, Mount Zion and a variety of Christian holy sites which the administration of former US President Bill Clinton recommended be administered under a "special regime."

This raises the issue of who would administer the Temple Mount, since at present the Wakf Islamic Authority controls the site, albeit under Israeli sovereignty. Moreover, the Arab neighborhoods surrounding the Temple Mount, home to tens of thousands of Israeli Arab residents, are also a part of greater Jerusalem, and thereby fall into the same discussion.

Former prime minister Netanyahu, who will likely return to his old leadership role after the February 10 Israel elections, repeatedly emphasized the Likud's loyalty to the concept of a united Jerusalem. "We have demonstrated in the past, and will continue to demonstrate OUR COMMITMENT TO A COMPLETE, UNDIVIDED JERUSALEM," Netanyahu assured a packed hall at the Jerusalem Regency Hotel, where he opened the final day of the Jerusalem Conference.

"Dividing the capital, or resurrecting the specter of internationalizing the 'Holy Basin', this time at the recommendation of the US Secretary of State Hillary Clinton, would cause more problems even for the international community than it would solve," he added. THE THREE MAJOR RELIGIONS OF THE WORLD EXIST IN PEACE, HAVE ACCESS TO ALL THEIR SITES, ONLY BECAUSE JERUSALEM IS UNITED AND UNDER ISRAELI RULE, Netanyahu contended, adding in deliberately Hebrew-accented English, "If it ain't broke, don't fix it!"