"WE'RE GOING TO HAVE RIOTS. There are already people rioting because they're losing their jobs when everybody else is being bailed out. The fairness of it becomes more and more evident as we go along. The auto companies may be hurting," he said, but "there are very few companies that aren't hurting and they're going to hurt. WE DON'T HAVE ENOUGH MONEY TO BAIL EVERYONE OUT." DeMint blamed the unions for pushing this issue as far as it has gotten.

The senator said the notion that reorganization under bankruptcy would not work was GENERATED BY THE UNIONS FOR FEAR OF LOSING THEIR POWER. "The primary driver behind this is the unions, because bankruptcy allows the auto companies to basically restructure all their contracts in a way that a bankruptcy judge says will make them sustainable," DeMint said. "And if they do that, then essentially the unions lose all their leverage. It's the unions that have brought them to the brink. So definitely, I think the reason they want a political solution and A CAR CZAR IS BECAUSE A CAR CZAR CAN PROTECT THE UNIONS THROUGH THIS WHOLE PROCESS AT THE EXPENSE OF THE TAXPAYER."

UPDATE:- A $14bn (£9.4bn) bail-out package for the beleaguered US car industry has died in the Senate after failing to get enough support in a procedural vote. The failure came after bipartisan talks on the rescue plan COLLAPSED OVER REPUBLICAN DEMANDS THAT THE UNITED AUTO WORKERS UNION AGREE TO SWIFT WAGE CUTS.

Demonstrations against the killing were seen in cities across the continent with left-wing radicals and other sympathisers taking to the streets. In SPAIN, 11 protesters were arrested and several police officers injured when clashes took place in MADRID AND BARCELONA. In COPENHAGEN, 32 people were arrested when their protest in support of the Greek protests turned violent.

In neighbouring TURKEY, about a dozen left-wing protesters daubed red paint over the front of the Greek consulate in Istanbul. Around 150 people belonging to a DANISH UNDERGROUND MOVEMENT took to the streets, throwing bottles and paint bombs at buildings, police cars and officers. In MOSCOW AND ROME, protesters threw petrol bombs at Greece's embassies.

The scale of this week's violence has left the country in deep shock as Greeks count the cost of the destruction. The Athens Chamber of Commerce said 435 businesses had been hit during the violence, with 37 completely gutted, estimating the damage at GBP 44 million (50 million euros). Under the headline "GREECE IN SELF-DESTRUCT MODE" the conservative daily newspaper Kathimerini said in an editorial: "This is a country with a state that is in a shambles, a police force in disarray, mediocre universities that serve as hotbeds of rage instead of knowledge and a shattered health care system. IT IS ALSO ON THE BRINK OF FINANCIAL RUIN."

Mubarak accused the Islamic Republic of trying to subsume its Muslim neighbors, telling the forum that "THE PERSIANS ARE TRYING TO DEVOUR THE ARAB STATES." Mubarak's comments came after the Egyptian leader recalled the country's diplomatic envoy from the Iranian capital earlier this week following an increase in tension between the two countries.

Recent strain between Cairo and Teheran has grown as several demonstrations in Iran called for the hanging of the Egyptian leader. The Iranian FARS news service reported that participants in recent student demonstrations outside the Egyptian diplomatic mission in Teheran also chanted "Death to Israel" and "Death to America" and burned an Israeli flag.

On Wednesday the Egyptian ministry was quoted as criticizing some Iranian newspapers that have repeatedly insulted Egyptian policies and leadership recently. Teheran media, for example, broadcast incitement against Cairo's policy allegedly preventing aid from reaching Palestinians in the Gaza Strip.

The source, who is close to the new administration, said the U.S. will declare that an ATTACK ON ISRAEL BY TEHRAN WOULD RESULT IN A DEVASTATING U.S. NUCLEAR RESPONSE against Iran. But America's nuclear guarantee to Israel could also be interpreted as a sign the U.S. believes Iran will eventually acquire nuclear arms.

Secretary of state-designate Hillary Clinton had raised the idea of a nuclear guarantee to Israel during her campaign for the Democratic Party's nomination for the presidency. During a debate with Obama in April, Clinton said that Israel and Arab countries must be given "deterrent backing." She added, "IRAN MUST KNOW THAT AN ATTACK ON ISRAEL WILL DRAW A MASSIVE RESPONSE."

Clinton also proposed that the American nuclear umbrella be extended to other countries in the region, like Saudi Arabia and the Gulf States, if they agree to relinquish their own nuclear ambitions. According to the same source, the nuclear guarantee would be backed by a new and improved Israeli anti-ballistic missile system. The Bush administration took the first step by deploying an early-warning radar system in the Negev, which hones the ability to detect Iranian ballistic missiles.

Greece is already battling a current account deficit of about $53bn - or 15% of GDP - easily the highest in the eurozone. And that is with a population of only 11 million people. Meanwhile, its public debt is almost equal to its national output - in part as it feels the burden of the 2004 Athens Olympics.

The Games delivered improved infrastructure but carried a hefty bill, which the government puts at about 6bn euros, but which other estimates suggest cost upwards of 10bn euros. MANY ARGUE THAT GREECE WAS NOT READY TO ENTER THE EUROZONE WHEN IT DID. And indeed, in 2004 it admitted it had JOINED THE EURO ON THE BASIS OF FIGURES THAT SHOWED ITS BUDGET DEFICIT TO BE MUCH LOWER THAN IT REALLY WAS.

And a string of revenue-raising tax measures passed by government have not gone down well. Removing a tax exemption for some of the poorest self-employed, more expensive vehicle licences and a capital gains tax on shares have done little to please. And with youth unemployment at about 19% and overall joblessness at 7.2%, THERE IS PLENTY OF ANGER ON THE STREETS.

Parents and governments are taking a "high-stakes gamble" with the long-term wellbeing of children by subjecting them to long hours of formal childcare from a very young age, according to a Unicef report. The study, which has prompted Beverley Hughes, the Children's Minister, to complain to the UN agency, recommends that ALL CHILDREN SHOULD WHERE POSSIBLE BE CARED FOR BY PARENTS AT HOME DURING THE FIRST 12 MONTHS OF LIFE. Children from the poorest homes face the double disadvantage of being born into material deprivation and receiving sub-standard childcare, Unicef says.

The research, which draws on a wealth of scientific and psychological studies, as well as government data, is bound TO REIGNITE THE FRAUGHT DEBATE ON WHETHER OVEREXPOSURE TO FORMAL CHILDCARE IS BAD FOR VERY YOUNG CHILDREN. It is also likely to provoke concerns over whether growing political, social and economic pressure on parents, particularly those on low incomes, to return to work soon after their child is born is at odds WITH EMERGING RESEARCH INTO CHILDREN'S BRAINS SHOWING THE IMPORTANCE OF STABLE ONE-TO-ONE CARE IN THE FIRST YEAR OF LIFE.

David Bull, the executive director of Unicef UK, said that despite spending on preschool education in England having quadrupled in the past ten years, "high-quality childcare is not yet available to all, and parental leave provisions remain inadequate". He added: "The report is also clear that rich nations have often been guilty of making policies based on economic considerations, not the best interests of the child."

The class of seven-year-olds at Blackshaw Lane Primary School, Royton, near Oldham, Greater Manchester burst into tears and told their parents when they got home. The parents then complained about the incident and were sent a letter by the school saying the teacher has been disciplined over the gaffe.

One father said: "My son came home and said that his substitute teacher had told the class that Santa doesn't exist and it's your mum and dad that put out presents for them. My lad was nearly in tears and so was everyone else in the class - especially as it was so close to Christmas. I THOUGHT IT WAS WRONG. He was distraught about it. He's only seven-years-old and it's part of the magic of Christmas to him. We told him that SHE DID NOT BELIEVE IN FATHER CHRISTMAS BECAUSE OF HER RELIGION and he's fine now. I FOUND IT SHOCKING. SHE HAS DONE IT MALICIOUSLY. A lot of parents were disgusted and complained to the school."

INDICATING THAT THE RATE OF OUTPUT DECLINE IS "ACCELERATING", the NIESR now expects a fall of more than 1% in the last three months of the year. Official data showed that the economy shrank 0.5% from July to September. But it will not be until January that the Office for National Statistics reports on the final quarter's GDP. If it reports a decline for the three months to December, then the UK will officially be in recession under the generally accepted definition of two consecutive quarters of decline.

The Organisation for Economic Co-operation and Development (OECD) also warned last week that the UK FACES A "SEVERE" ECONOMIC DOWNTURN IN 2009. The Paris-based body predicted that economic output in the UK will fall by 1.1% next year, more than any other major G7 country. It added that UNEMPLOYMENT IN THE UK WILL LIKELY RISE SIGNIFICANTLY TO OVER 8% BY END OF 2009 from 5.5% in 2008.

PHONE BUYERS WOULD HAVE TO PRESENT A PASSPORT OR OTHER OFFICIAL FORM OF IDENTIFICATION AT THE POINT OF PURCHASE. Privacy campaigners fear it marks the latest government move to create a surveillance society. A compulsory national register for the owners of all 72m mobile phones in Britain would be part of a much bigger database to combat terrorism and crime. Whitehall officials have raised the idea of a register containing the names and addresses of everyone who buys a phone in recent talks with Vodafone and other telephone companies, insiders say.

THE MOVE IS TARGETED AT MONITORING THE OWNERS OF BRITAIN'S ESTIMATED 40M PREPAID MOBILE PHONES. They can be purchased with cash by customers who do not wish to give their names, addresses or credit card details. The pay-as-you-go phones are popular with criminals and terrorists because their anonymity shields their activities from the authorities. But they are also used by thousands of law-abiding citizens who wish to communicate in private.

The move aims to close a loophole in plans being drawn up by GCHQ, the government's eavesdropping centre in Cheltenham, to create a huge database to monitor and store the internet browsing habits, e-mail and telephone records of everyone in Britain. The "Big Brother" database would have limited value to police and MI5 if it did not store details of the ownership of more than half the mobile phones in the country.

The proposals have sparked a fierce backlash inside Whitehall. Senior officials in the HOME OFFICE HAVE PRIVATELY WARNED THAT THE DATABASE SCHEME IS IMPRACTICAL, DISPROPORTIONATE AND POTENTIALLY UNLAWFUL. The revolt last week forced Jacqui Smith, the home secretary, to delay announcing plans for the database until next year.

Pioneer hedge fund manager Michael Steinhardt is angry that the bailout of America is eroding the nation's capitalist ethos while those whose deeds crippled the U.S. economy suffer scant opprobrium, their names still untarnished. "Something really went wrong here. WE'RE ABOUT TO ENTER A PERIOD WHERE OUR BUDGET DEFICIT WILL DWARF ANYTHING WE'VE SEEN BEFORE," Steinhardt told the Reuters Investment Outlook Summit in New York.

"What we really needed a long time ago was a recognition that there were villains apace. THE EVILS OF THE FINANCIAL SYSTEM SHOULD HAVE BEEN RECOGNIZED LONG BEFORE THIS," said Steinhardt. While scornful of the financial executives who should have known better, he also belittled Washington for its lack of leadership and for not spelling out what the future beholds.

Steinhardt, however, said Americans themselves must share the blame for running away from the debacle and for not questioning the enormous public debt the U.S. government is about to assume. "If you cannot accept short-term pain, then YOU DO ALL SORTS OF THINGS TO COAT REALITY, TO PRETEND, TO FABRICATE, TO LIE. That is what has happened in American business in the last 10 years," he said.

There is obviously a problem for countries like Greece that were let into EMU for political reasons before their economies had been reformed enough to cope with the rigours of euro life - over the long run. Year after year of high inflation has eroded the competitive base of the economy. This is an insidious and slow effect, and very hard to reverse. Tourists are slipping away to Turkey, or Croatia. It will take a long time to lure them back. The underlying rot was disguised by the global credit bubble, and by the Greek property boom. It is now being laid bare. GREECE HAS A PUBLIC DEBT OF 93 PER CENT OF GDP, WELL ABOVE THE MAASTRICHT LIMIT.

I am a little surprised that the riot phase of this long politico-economic drama known as EMU has kicked off so soon, and that it has done so first in Greece, where the post-bubble hangover has barely begun. THE CRISIS IS MUCH FURTHER ADVANCED IN SPAIN, which is a year or two ahead of Greece in the crisis cycle. The picture is going to get very ugly as Europe slides deeper into recession next year. The IMF expects Spain's unemployment to reach 15pc. Immigrants are already being paid to leave the country. THERE WILL BE RIOTS IN SPAIN TOO.

I am certain that the British people still feel that the authorities who set economic policy are ultimately answerable to Parliament and to the democratic system. WILL THE GREEKS, THE SPANISH, THE FRENCH FEEL THAT WAY ABOUT THE EUROPEAN CENTRAL BANK AND THE STABILITY PACT WHEN THE CHIPS ARE REALLY DOWN?

The UN global warming conference currently underway in Poland is about to face a serious challenge from over 650 dissenting scientists from around the globe who are criticizing the climate claims made by the UN IPCC and former Vice President Al Gore.

Set for release this week, a newly updated U.S. Senate Minority Report features the dissenting voices of over 650 international scientists, many current and former UN IPCC scientists, who have now turned against the UN. The report has added about 250 scientists (and growing) in 2008 to the over 400 scientists who spoke out in 2007. THE OVER 650 DISSENTING SCIENTISTS ARE MORE THAN 12 TIMES THE NUMBER OF UN SCIENTISTS (52) WHO AUTHORED THE MEDIA HYPED IPCC 2007 SUMMARY FOR POLICYMAKERS.

The U.S. Senate report is the latest evidence of the growing groundswell of scientific opposition rising to challenge the UN and Gore. Scientific meetings are now being dominated by a growing number of skeptical scientists. The prestigious International Geological Congress, dubbed the geologists' equivalent of the Olympic Games, was held in Norway in August 2008 and prominently featured the voices and views of scientists skeptical of man-made global warming fears.

"It is critical for us to get a much better understanding of the impact of climate change in some parts of the world," Rajendra Pachauri, chairman of the U.N.'s Intergovernmental Panel on Climate Change, told The Associated Press in an interview Tuesday.

Scientific warnings of potential catastrophe have been the backdrop for talks among more than 10,000 delegates and environmentalists negotiating a treaty to control the emission of greenhouse gases, which have grown by 70 percent since 1970. The treaty, due to be completed in one year, would replace the Kyoto Protocol, which expires in 2012. Last year, Pachauri's IPCC, which collected the work of more than 2,000 scientists, said CLIMATE CHANGE IS "UNEQUIVOCAL, IS ALREADY HAPPENING, AND IS CAUSED BY HUMAN ACTIVITY."

Mr Steinbruck said the UK's switch from financial prudence to heavy borrowing was both "crass" and "breathtaking". Criticising the UK government's decision to cut VAT from 17.5% to 15%, Mr Steinbruck questioned how effective this will be. "Are you really going to buy a DVD player because it now costs £39.10 instead of £39.90?" he said. "ALL THIS WILL DO IS RAISE BRITAIN'S DEBT TO A LEVEL THAT WILL TAKE A WHOLE GENERATION TO WORK OFF."

Saying the UK government was now "tossing around billions", Mr Steinbruck questioned why Britain was now closely following the high public spending model put forward by 20th Century economist John Maynard Keynes. "The switch from decades of supply-side politics all the way to a crass Keynesianism is breathtaking," he said. "When I ask about the origins of the [financial] crisis, economists I respect tell me it is the credit-financed growth of recent years and decades. Isn't this the same mistake everyone is suddenly making again, under all the public pressure?"

While Mr Steinbruck has accused the UK of over-spending on the economic recovery, the German government has put 480bn euros (£370.4bn; $645bn) into a rescue package for its banks.

UPDATE:- Downing Street has hit back at an outspoken attack by Germany's finance minister on the government's plans to combat the economic downturn. Sources close to the government said Berlin was "out of step" with most nations on how to handle the crisis.

Interest rates have been cut both in the UK and in the eurozone, but they remain higher in the 15-member euro currency area. The pound was also hit by new data suggesting the UK economy had shrunk by 1% in the three months to November.

The pound stood at $1.4827 and at 1.1363 euros by later afternoon in London. The National Institute of Economic and Social Research indicated that the rate of output decline was "accelerating", and the institute now expects a fall of more than 1% in the last three months of the year.