Israel said it was responding to rocket fire by Gaza militants, which killed one Israeli in the southern border town of Sderot on Wednesday, and it threatened to launch a larger-scale offensive unless the barrage stopped.
"The more Qassam (rocket) fire intensifies and the rockets reach a longer range, they (the Palestinians) will bring upon themselves a bigger holocaust because we will use all our might to defend ourselves," Vilnai told Army Radio.

Israeli Prime Minister Ehud Olmert has so far been wary of launching a major ground offensive, which could incur heavy casualties and derail U.S.-backed peace talks with Palestinian President Mahmoud Abbas. But domestic pressure is growing.

Defence Minister Ehud Barak sought to prepare the way for an offensive by sending confidential messages to world leaders, including Secretary of State Condoleezza Rice, who plans to visit the region next week.

He pledged to help those who had been displaced, lost their property or lost their jobs during the violence in which some 1,500 people died. Many Kenyans have been celebrating the power-sharing deal between Mr Odinga and President Mwai Kibaki. But some of those displaced question whether ethnic hatreds can be healed.

"It's become a habit of saying 'peace, peace, peace' every now and then and after peace we see flames of fire," a woman living in a displacement camp in the western town of Eldoret told the BBC. Mr Odinga said the agreement was "just a piece of paper" - the most important thing was the will behind it. "It means we recognise Mr Kibaki as president and he recognises that there were some flaws in the elections," he told the BBC.

POWER-SHARING DEAL
- New two-party coalition government to be set up
- Cabinet posts to be divided equally between parties
- Raila Odinga to take new post of prime minister, can only be dismissed by National Assembly
- Two new deputy PMs to be appointed, one from each member of coalition

"There has to be trust and confidence developed on both sides. It is important for us to forge a firm foundation for a united country," he said. He hoped for a new constitution within a year and fresh elections within two as Mr Annan had given the coalition a maximum life of two years, after which it should be reviewed.

The Israelis say their attacks are a response to the firing of Palestinian rockets into southern Israel. There are no signs of either the Israeli army or the Palestinian militants backing down, and the people in Israeli border towns and across the Gaza Strip are bracing themselves for more violence, he adds. Palestinian rocket fire killed one man in the Israeli town of Sderot on Wednesday, and has since injured others.

Israeli Prime Minister Ehud Olmert said his country could not make peace with people who were murdering its citizens. "The only requirement we have from the Palestinians is stop killing innocent Israelis, stop shooting Qassam rockets at the civilian centres of Israel so that we'll be able to do business together," he said.

The report, released Thursday by the Pew Center on the States, said the 50 states spent more than $49 billion on corrections last year, up from less than $11 billion 20 years earlier. The rate of increase for prison costs was six times greater than for higher education spending, the report said. Using updated state-by-state data, the report said 2,319,258 adults were held in U.S. prisons or jails at the start of 2008 - one out of every 99.1 adults, and more than any other country in the world.

The steadily growing inmate population "is saddling cash-strapped states with soaring costs they can ill afford and failing to have a clear impact either on recidivism or overall crime," said the report. Susan Urahn, managing director of the Pew Center on the States, said budget woes are prompting officials in many states to consider new, cost-saving corrections policies that might have been shunned in the recent past for fear of appearing soft on crime.

"We're seeing more and more states being creative because of tight budgets," she said in an interview. "They want to be tough on crime, they want to be a law-and-order state - but they also want to save money, and they want to be effective. For some groups, the incarceration numbers are especially startling," the report said. "While one in 30 men between the ages of 20 and 34 is behind bars, for black males in that age group the figure is one in nine."

The nationwide figures, as of Jan. 1, include 1,596,127 people in state and federal prisons and 723,131 in local jails - a total 2,319,258 out of almost 230 million American adults. The report said the United States is the world's incarceration leader, far ahead of more populous China with 1.5 million people behind bars. It said the U.S. also is the leader in inmates per capita (750 per 100,000 people), ahead of Russia (628 per 100,000) and other former Soviet bloc nations which make up the rest of the Top 10.

Paul held Bernanke to task over his refusal to address the decline of the dollar and its clear link to inflation. "INFLATION COMES FROM THE UNWISE INCREASE IN THE SUPPLY OF MONEY CREDIT....to argue that we can continue to debase the currency, which is really the policy of that you're following, purposely debasing value of currency - which to me seems so destructive....it just puts more pressure on the federal reserve to create capital out of thin air in order to stimulate the economy and usually that just goes into mal-investment," said Paul. He highlighted the fact that the M3 money supply was rising at a rate of 16 PER CENT AND THAT THIS WAS THE REAL RATE OF INFLATION.

"History is against you," Paul told Bernanke, "History is on the side of hard money - if you look at stable prices you have to look at the only historic sound money that's lasted more than a few years - fiat money always ends, gold is the only thing where you get stable prices," he added, pointing out that despite the price of oil's rapid ascent, it had remained flat when compared to the price of gold.

"I cannot see how we can continue to accept the policy of deliberately destroying the value of money as an economic value," said Paul, adding that the policy was "immoral," and would lead to a reduction in American's living standards and "the middle class being wiped out." Asked how he could defend a policy of deliberately depreciating the dollar, Bernanke stumbled through his response and was basically forced to agree with Paul's point.
Paul's comments come on the day that the dollar hit its all time low against the Euro.

EARLIER THIS WEEK, FORMER FED CHAIRMAN ALAN GREENSPAN LAID THE GROUNDWORK FOR THE FURTHER COLLAPSE OF THE GREENBACK BY ENCOURAGING GULF STATES TO ABANDON THEIR DOLLAR PEG.

Over the past year, anecdotal evidence for a cooling planet has exploded. China has its coldest winter in 100 years. Baghdad sees its first snow in all recorded history. North America has the most snowcover in 50 years, with places like Wisconsin the highest since record-keeping began. Record levels of Antarctic sea ice, record cold in Minnesota, Texas, Florida, Mexico, Australia, Iran, Greece, South Africa, Greenland, Argentina, Chile -- the list goes on and on.

No more than anecdotal evidence, to be sure. But now, that evidence has been supplanted by hard scientific fact. ALL FOUR MAJOR GLOBAL TEMPERATURE TRACKING OUTLETS (Hadley, NASA's GISS, UAH, RSS) have released updated data. All show that over the past year, GLOBAL TEMPERATURES HAVE DROPPED PRECIPITOUSLY.

The total amount of cooling ranges from 0.65C to 0.75C -- A VALUE LARGE ENOUGH TO WIPE OUT MOST OF THE WARMING RECORDED OVER THE PAST 100 YEARS. All in one year's time. For all four sources, IT'S THE SINGLE FASTEST TEMPERATURE CHANGE EVER RECORDED, EITHER UP OR DOWN.

Finance minister of the group, which supplies 40 percent of the global crude demand, will meet to study the proposal, the organization's President Chakib Khelil said. Khelil, however, did not say when the ministers are scheduled to discuss the proposal amid the ongoing depreciation of the dollar. The idea was floated by Tehran and Caracas since the dwindling dollar has fallen 16.2 percent against a basket of major currencies since two years ago. Iran, the OPEC's second largest exporter, has already cut all of its ties with the greenback with respect to oil transactions.

Qatari Prime Minister Sheikh Hamad bin Jassim Al Thani had also said earlier that amid concerns about the weakness of the US dollar in recent months, the oil-rich Persian Gulf littoral state would shift Qatari riyal from the US currency over the next six months. "The dollar lost a lot of value and energy worldwide is priced in the dollar, so all the producers are affected by the development on the dollar. This is a cycle so we have to live with it," Abdullah Bin Hamad Al-Attiyah said.

The UAE is also likely to follow the lead, as Kuwait did last May.

French and German officials sought yesterday to play down the significance of the abrupt postponement - both by Paris - of two meetings between the countries' most senior politicians. Privately, and not so privately, the talk in both capitals is of a serious rift in the single most important national partnership in Europe. Officials blame an increasingly difficult relationship between President Nicolas Sarkozy and Chancellor Angela Merkel.

With France scheduled to take the presidency of the European Union in July, the Franco-German tiff could not be timed worse. There have also been tensions over the management of the euro and on foreign and defence policy. France has repeatedly criticised the monetary policy of the European Central Bank while ignoring its European commitments to restrain its budget deficit. Germany has refused to join a French-sponsored EU military mission to Darfur.

At the heart of the quarrel - not yet an overt crisis - is the strained relationship between the two leaders. German officials say that the hyperactive and boastful behaviour of the French President - and his over-familiar personal style - has irritated Ms Merkel. French officials suggest M. Sarkozy finds Ms Merkel too cautious and too ponderous. French diplomats also complain that M. Sarkozy - in his determination to shake up all aspects of French government - wants to play down the Paris-Berlin relationship that has been the bedrock of France's domestic and European policy for half a century. "For Sarkozy, the West very much means UK and the US," one French source said.

Known as ADIA (pronounced ah-DEE-ah), the fund recently formed a small team that is now buying big stakes in Western companies. This unit masterminded ADIA's $7.5 billion investment in Citigroup, the nation's largest bank, in November. It has also taken a large position in Toll Brothers, one of the country's biggest home builders. ADIA is the largest of the world's sovereign wealth funds, giant pools of money controlled by cash-rich governments, particularly in Asia and Middle East. But Abu Dhabi, the wealthiest of the seven Arab emirates, says little about its fund. Few outsiders know for sure where ADIA invests - or even how much money it controls. And secrecy breeds hyperbole; some estimates of the fund's size surpass $1 trillion.

The United States is not a big buyer of Abu Dhabi's oil, most of which goes to Asia, but the surplus is a vivid reminder of the American economy's own fiscal imbalance, to say nothing of its diminishing global stature, a theme that underpins much of the political worry surrounding sovereign fund investments. "In the short run, that they are investing here is good," Senator Bayh said. "But in the long run it is unsustainable. Our power and authority is eroding because of the amounts we are sending abroad for energy and consumer goods."

Between 2005 and 2006 the number of death certificates which mentioned the infection rose by 72% to 6,480, most of which were elderly people. In over half of cases, it was listed as the underlying cause of death.

C. difficile usually affects the elderly, and can prove fatal if antibiotic treatment fails to kill all the spores in the gut, and they take hold again before the patient's own gut bacteria have had chance to mount a resistance. It is also very difficult to eradicate from the ward environment, which means it is easy for other patients to become infected.

It wasn't hurricane season, either, when tropical storms regularly knock out power lines. It was a tranquil, balmy afternoon by the beach - the sort of "paradise" so many thousands of people migrate here for each winter.

But it was shattered by what should have been a small, isolated fire in an electrical substation on Miami's western fringe. A breaker shut down the facility, as it's programmed to do; but it failed to contain the problem, as it also should have, and so in response more than a dozen other substations in South Florida's electrical grid shut down as well. THAT CAUSED A CASCADING REGIONAL GRID COLLAPSE - INCLUDING THE TURKEY POINT NUCLEAR POWER PLANT SOUTH OF MIAMI - AS ELECTRICITY DEMAND SUDDENLY OUTSTRIPPED WHAT WAS BEING PRODUCED. Some 3 million people from South Beach to Tampa to Daytona Beach lost power. No one was hurt; but Miami's already dysfunctional traffic was rendered hopelessly snarled for rush hour.

Aside from the transit nightmare, the Florida blackout also revived the awful memory of August, 2003, when an even larger grid failure in the Northeast left 15 million people in the dark. Improvements to America's electrical reliability system have been put in place the past five years; but Tuesday was a reminder that THE COUNTRY'S POWER INFRASTRUCTURE IS STILL MORE VULNERABLE THAN MANY FEEL IT OUGHT TO BE.

President Mwai Kibaki's disputed re-election in a Dec. 27 vote sparked ethnic violence that killed 1,000 people and displaced 300,000, wrecking Kenya's reputation as one of Africa's most stable countries. Talks to end the crisis reached standstill earlier this week. But there were signs of progress on Wednesday when the opposition called off street protests and former U.N. chief Kofi Annan, who is mediating, said he believed Kibaki and opposition leader Raila Odinga could still strike a deal.

John Githongo, who quit as Kenya's first anti-corruption adviser in 2005, said he was afraid there could be a new outbreak of violence if the stalemate persisted. Failure to end the crisis could also have serious economic consequences for Kenya, east Africa's fastest-growing economy, which Githongo said depended on its people's skills rather than gold, diamonds or oil. "If confidence goes, the most devastating thing that could happen to Kenya is for there to be not capital flight, but Kenyans leaving," he said.

The post-election violence has left Kenya increasingly divided along tribal lines. Asked if failure to end the crisis could eventually lead to the breakup of Kenya, Githongo said: "It is a horrific thought but for the first time I think everything is on the table. We are in completely uncharted water.

Latest - time.com - NAIROBI, - Kenya's rival politicians reached an agreement Thursday on a coalition government after weeks of bitter negotiations on how to end the country's deadly postelection crisis, mediator Kofi Annan said. "We have come to an understanding on the coalition government." He added: "All I can say is that we do have an agreement."

The University of Southern California found a lack of zinc, iron, vitamin B and protein in the first three years caused bad behaviour later on. At eight years old, children fed poorly were more likely to be irritable and pick fights than those fed healthily. Aged 11, they swore, cheated and got into fights, and at 17, they stole, bullied others and took drugs.

The researchers analysed the development of more than 1,000 children on Mauritius, an island in the Indian Ocean off the coast of Africa, over 14 years. They found the more malnurished the children were, the greater the anti-social behaviour later on. Report co-author Adrian Raine said parents could prevent their children developing bad behaviour by ensuring they get better diets.

"Poor nutrition leads to low IQ, which leads to later anti-social behaviour." At a societal level, should parents be thinking more about what kids are eating? "There's more to anti-social behaviour than nutrition, but we argue that it is an important missing link." Fellow researcher Jianghong Liu, of the university's Social Science Research Institute, agreed. "Identifying the early risk factors for this behaviour in childhood and adolescence is an important first step for developing successful prevention programmes for adult violence."

But Dr Ann Hagell, research development adviser at the Nuffield Foundation, a charitable trust which funds social and education research, raised doubts about the findings. "I would not dismiss the study out-of-hand but I would be surprised if diet plays a big role. In my experience diet is not part of the explanation. It can cause hyper activity disorders, but anti-social behaviour is more influenced by parenting and genetics and teen peer pressure in teenage groups."

Insurance experts said claims for structural damage and broken belongings were set to run into tens of millions of pounds. People across the UK reported feeling the tremor just before 0100 GMT. The epicentre of the 5.2 magnitude quake was near Market Rasen in Lincolnshire. The British Geological Survey (BGS) said it had received reports of people having felt the tremor from as far as Bangor in Northern Ireland, Haarlem in Holland, Plymouth and Edinburgh.

Scientists said while the tremor was small on a global scale, they described the earthquake as a "rare beast" and "significant" for the UK. They said they believed the earthquake could have been caused by an old fault line in the East Midlands rupturing.

The pharmaceutical industry came under assault from senior figures in medical research yesterday over its practice of withholding information to protect profits, exposing patients to drugs which could be useless or harmful. Experts criticised the stranglehold exerted by multinational companies over clinical trials, which has led to biased results, under-reporting of negative findings and selective publication driven by the market, which was worth £10.1bn in the UK in 2006, amounting to 11 per cent of total NHS costs.

The latest attack was triggered yesterday by an analysis of published and unpublished trials of modern antidepressants, including Prozac and Seroxat, showing they offer no clinically significant improvement over placebos (dummy pills) in most patients.

It was the first time researchers - from the UK, Canada and the US - had successfully used freedom of information legislation to obtain all the data presented to regulators when the companies applied to license their drugs. In some cases it had not been made public for 20 years. Over the past two decades the drugs, known as selective serotonin re-uptake inhibitors (SSRIs), have been among the biggest selling of all time, earning billions of pounds for their makers.

Yesterday's finding suggests that the money may have been misspent.