A weekly summary of news and events concerning Israel and the Jewish people.
OLMERT OFFERS UP JUDEA, SAMARIA, AND TEMPLE MOUNT?
According to Dr. Guy Bechor, a leading expert on Arab affairs, Israel has agreed, in writing, to hand over 6,250 square kilometres [2,413 square miles] of land -- the equivalent of all of Judea, Samaria and Gaza - to create an Arab terror state. This is based on "leaks from the Palestinian [sic] side". Most of the Jewish communities built in Judea and Samaria over the past 40 years are to be demolished and their inhabitants expelled, according to the plan.
The remaining communities are to be concentrated in small salients for which the Arab state will be compensated with additional territory elsewhere in present-day Israel. A passage of some sort will connect Gaza and Judea and Samaria. It will be under Jewish sovereignty and Arab administration. ISRAEL AGREES TO RE-DIVIDE JERUSALEM. Arab neighbourhoods will be under Arab sovereignty and Jewish ones under Jewish sovereignty.
THIS PLAN IS SAID TO CEDE FULL AUTHORITY OVER THE TEMPLE MOUNT TO THE MUSLIM ARAB WORLD WHILE ISRAEL WOULD RETAIN CONTROL OVER THE WESTERN WALL AND ITS PLAZA BELOW THE MOUNT. (Muslims do not serve the G-d of Israel; they worship the ancient moon-god of Arabia, Allah. Jerusalem is not mentioned once in their "sacred" writings.) Prime Minister Ehud Olmert has previously said he believes an Arab [terrorist] state will become a reality sooner than anyone thinks. [Arutz Sheva, JNW]
DESTRUCTION OF THE TEMPLE MOUNT CONTINUES
Unprecedented wholesale destruction of precious remnants of the Holy Temple is occurring on a daily basis. The Moslem Waqf, the "caretakers" of the Temple Mount, has been overseeing the digging of meter and a half [five feet] deep trenches running the length and breadth of the Mount.
What is difficult to understand and impossible to forgive is the Israeli government's total indifference to the wholesale destruction of Jewish heritage taking place under the protective watch of the Israeli police in total disregard of Israeli law, international law, the respect due the holy site and the most basic survival necessities of a sovereign nation.
Also guilty is the so-called Israeli Antiquities Authority whose very reason for existing is to prevent this kind of irreversible damage to the nation's archaeological treasures. WHERE ARE THE G-D FEARING JEWS AND GENTILES WHO YEARN AND PRAY FOR THE REBUILDING OF THE HOLY TEMPLE? WILL THEY MAKE THEIR VOICES HEARD? Are people even aware of the extent of the destruction taking place, or has the virtual media blackout kept most people ignorant of the crime being perpetrated?
The coming days are crucial and will provide the answer. It is incumbent upon each and every one who reads these words to spread the news and to raise their voices in protest. Ignorance and apathy are the allies to all of the above mentioned parties who are accomplices to the crime. Photos of the destruction can be seen on the Temple Institute's Web site: http://emetnews.org/cgi-bin/r/x7
HALF OF IDF'S NEW COMBAT OFFICERS ARE RELIGIOUS
Half of the IDF's [Israel Defense Force] young combat officers are religious Jews, according to statistics published as the lead story Sunday in MAARIV, Israel's second largest daily newspaper. The report also says that about 40% of the cadets of the most recent Officer Course in Bahad-1, the IDF's officer training school, were religious; this number refers to all officers, as opposed to just combat officers. These statistics are significant is that many religious soldiers have been refusing orders to evict Jews from their homes in Judea, Samaria and Gaza. If half of the IDF's new officers are religious, this means that the refusal movement could indeed have a deep deterrent impact on the IDF and government when and if it decides to attempt additional pullouts from territory. [Arutz Sheva]
For years an INSTITUTIONAL DISHONESTY WITHIN ALL THINGS FINANCIAL in the United States has been ingrained, spreading, and become integrated with high levels of the US Government.
THE US FINANCIAL SYSTEM IS TEETERING. Its US Dollar currency is losing global support, with some outright revolts in crucial territories. The chief private sector export from the US financial sector has been FRAUD-RIDDEN ASSET-BACKED BONDS AND THEIR TOXIC CREDIT DERIVATIVES. What should anyone expect?
The Wall Street hucksters exported fraud. The backlash might be more severe than the soft soap gurus anticipate. LOOK FOR AN INTERNATIONAL BOYCOTT. THE SHOCK WAVES IN THE US FINANCIAL MARKETS ARE PRELIMINARY SYMPTOMS OF BIGGER EVENTS SOON TO COME. STABILITY IDENTIFIED IS NOTHING BUT QUIET BETWEEN TREMORS.
The layers of denial are being stripped, with big names losing credibility. The icon institutions are being irreparably tarnished. Wall Street firms in all likelihood have negative book value here and now! My expectation is for an eventual global boycott of US $-based bonds, gradually gathering like a storm, widening eventually to include even the US Treasurys.
If (WHEN) they lower interest rates, they will set off a global US$ sell off, and trigger the very threat they publicly acknowledge, price inflation. The Europeans are not finished hiking interest rates. The bond yield differential which has supported the US Dollar is soon to do a total vanishing act.
My conclusion has been all along, that the next US Fed action will unleash huge volatile downdrafts in the US$ exchange rates. If they hike rates, the resulting US Economic downturn will be a nightmare, again with dire US Dollar consequences also.
THE US$ IS TEETERING AT THE EDGE OF AN HISTORIC EDGE OF A CHASM. THE US FINANCIAL SYSTEM IS BROKEN, YET ITS GUIDING MAESTROS REMAIN COCKY AND BOASTFUL. MY DEEP SEATED CONCERN IS THAT A POLITICAL TRANSFORMATION IS JUST OVER THE HORIZON, SINCE REMEDY IS IMPOSSIBLE.
The US Defence industry and Wall Street bankers have accomplished the destruction of the US financial and economic system, one more devastating than any enemy could have designed with deep insight and careful planning.
THE US FED WALKS A NARROW PATH, ONE GROWING NARROWER WITH EACH WEEK. THE PATH HAS BECOME A RAZOR BLADE. NO ACTION MEANS DEEP BLOOD LOSS FROM NASTY CUTS. THEY ARE LOSING THEIR INTEGRITY. ON EACH SIDE OF THE PATHWAY LIES A STEP DOWN ON THE USDOLLAR EXCHANGE RATE. THE ONLY CHOICE LEFT IS ANOTHER PRESS OF THE MONEY SUPPLY ACCELERATOR.
THE PEDAL ITSELF HAS A BRAND NAME OF WEIMAR. (Pre WW2 Germany)
The Bush administration is set to embark on a final, foolish military adventure, says Matthew Carr
In May 2003 a senior Bush official succinctly expressed the administration's neanderthal conception of world politics, declaring: "Real men don't go to Baghdad, they go to Tehran."
Until recently the Iraq catastrophe appeared to have rendered the second option inconceivable. Conventional wisdom assumed that Bush was too discredited and the US military too vulnerable in Iraq to attempt another reckless adventure. Last week, however, the respected analysts Dan Plesch and Mark Butcher from London University challenged this consensus in a chilling 80-page discussion paper considering a war with Iran.
According to the authors, the US military's 'Global Strike' capability makes it possible to "destroy 10,000 targets in Iran in a few hours" using conventional weapons and the option of nuclear weaponry, without
committing significant numbers of troops. Though this attack would be supported by Special Forces, it would not require an invasion. Instead, its ultimate aim would be to turn Iran into an 'oil-rich failed state' by destabilising the regime and annihilating its military infrastructure.
In itself, this report proves nothing. But there are other indications that the Bush administration may not have exhausted its capacity for mayhem. There was last month's designation of the Iranian Revolutionary Guard corps as a global terrorist organisation, making it easier to use real or invented Iranian involvement in terrorist attacks as a pretext for war. Already US and British Special Forces are believed to be operating in southern Iran and last week Bush delivered one of his most bellicose anti-Iranian speeches, warning of "the shadow of a nuclear holocaust" hovering over the Middle East.
Politicians and diplomats are drifting into the same slipstream. Nicolas Sarkozy has added his voice to the anti-Iranian chorus. The Brown government has distanced itself from military action, but the faithful lieutenant will almost certainly fall into line if a war unfolds.
Such an attack would not only devastate Iran, it would lead to renewed conflict in Lebanon, to intensified attacks on British and American troops in Iraq and Afghanistan, and to more atrocities carried out against British and American civilians.
To avoid this outcome, the Western world needs to wake up from its torpor. Otherwise the Bush administration may yet deliver one final act of high-tech slaughter and propel what passes for international order into a new dark age of lawless gangsterism.
JERUSALEM - Islamic authorities using heavy machinery to dig on the Temple Mount - Judaism's holiest site - have been caught red-handed destroying Temple-era antiquities and what's believed to be a section of an outer wall of the Second Jewish Temple.
WND today obtained a photograph of a massive trench the Waqf, the Muslim custodians of the Temple Mount, have been blasting around the periphery of the holy site purportedly to replace 40-year-old electrical cables for mosques on the Mount. The Waqf has steadfastly denied they found or destroyed any Jewish antiquities during their dig.
In view in the picture, which was obtained in conjunction with Israel's Temple Institute, are concrete slabs broken by Waqf bulldozers and what appears to be a chopped up carved stone from Jewish Temple-era antiquity.
Eilat Mazar, considered one of the most prominent Temple Mount archaeologists, analyzed the photo and told WND the damaged stone displays elements of the second Temple era and might be part of a Jewish Temple wall Israeli archaeologists charge the Waqf found and has been attempting to destroy. If authenticated, the wall would be one of the most important Temple Mount archaeological discoveries in recent history. "It certainly looks like Second Temple antiquity and could very well be part of a Second Temple courtyard wall," Mazer said. She said in order to certify the stone in the photo, she would need to personally inspect it.
But Israel is blocking leading archaeologists from surveying massive damage Islamic authorities are accused of causing to what may be the outer wall of the Second Jewish Temple.
Mazar also is the discoverer and lead archaeologist of Israel's City of David, believed to be the palace of the biblical King David, the second leader of a united Kingdom of Israel, who ruled from around 1005 to 965 B.C.
"It's crucial this wall is inspected. The Temple Mount ground level is only slightly above the original Temple Mount platform, meaning anything found is likely from the Temple itself," the archaeologist said.
"If Israel was building a shopping mall and they found what may be an ancient Buddhist structure, the government would stop the construction and have archaeologists go over the area with a fine tooth comb. Here, the holiest site in Judaism is being damaged, a Temple wall was found, and Israel is actively blocking experts from inspecting the site while allowing the destruction to continue," Richman said.
Richman charged the Waqf was "trying to erase Jewish vestiges from the Temple Mount."
In the Baltic home state of German Chancellor Angela Merkel, Germany's far Right National Democratic Party - often associated with skinheads and steel-toed boots - is pursuing a softer, path to power.
In the municipal park of the pretty German port of Stralsund this weekend, 27-year-old Doreen Geisler watched her three children play at a town fair. Amid all the tents and games and shrieking of delighted toddlers however, dozens of red and white flags fluttered in the wind, emblazoned with the letters: NPD. It was their party. "There are not many fun opportunities for children here," said Mrs Geisler, cradling her one year baby, Robin. "It doesn't matter that this is run by the NPD. What matters is that the children have fun."
The NPD is flourishing in former East Germany and in this region, where unemployment hovers at about 20 per cent, old industry has yet to find a successor, and young women are leaving in droves. In state elections last September, it won more than seven per cent of the vote to put six members in the regional parliament.
At the fair on Sunday, Michael Andrejewski -one of the NPD members elected last autumn - EXPLAINED THE PARTY'S AGENDA. "We want Germany to be inhabited first of all by the German people," he said. "We want Germany to be mono-cultural, not multi-cultural. We want to stop immigration and reduce the number of foreigners." He also outlined the NPD's suspicion of "the power of big banks and big business". In the past, such aims have frequently seen the NPD accused of racism and anti-Semitism.
An EU study shows that hate crimes by the far Right in Germany rose by 15 per cent last year in Germany to 17,597 incidents. But while far Right sympathisers deal out the beatings, the NPD is building its base with a subtler programme of social outreach that critics describe as insidious and highly successful.
"THE NPD IS TRYING TO CREATE THIS IMAGE THAT IT IS DOING SOMETHING FOR PEOPLE WHO FEEL THEY HAVE BEEN ISOLATED FROM GOVERNMENT," said Günter Hoffmann, an expert in extremism at the Berlin Centre for Democratic Culture. "IT IS THE SAME STRATEGY AS HAMAS AMONG PALESTINIANS."
Among the services the NPD provides there are consultation sessions with lawyers to help people understand and claim their full entitlement from Germany's fiendishly complex benefit system. Mr Hoffmann said the NPD was already reaping dividends from its change in tactics. "In some towns the NPD is now getting 15-20 per cent support," he said. "Two years ago voting for the NPD was socially disgusting. Now it's seen as OK. That's a big success for the NPD. Its social outreach is working."
But he warned: "While the NPD has changed its face, there is still a clear link to militant neo-Nazis". At the fair in Stralsund, one respectable middle-aged woman pushed children on plastic cars around the fair. AS SHE DID SO, A BLACK SUN INSIGNIA STOOD OUT ON HER RING -- A MYSTIC SIGN NOTABLY USED BY THE TOP RANKS OF THE NAZI SS.
A lengthy review of Condoleezza Rice's government career and near-future prospects in the New York Times will add to Israeli paranoia. It describes her as trying to salvage a damaged reputation (principally on account of Iraq) by pushing Israeli and Palestinian leaders together in the hope that something positive will emerge.
What it describes as a "possible source of redemption" for Ms Rice could be costly for us. It is hard to be encouraged by what some distinguished commentators, quoted in the article, say about her efforts. HER STRATEGY IS TO JUST KEEP KNOCKING ON THIS DOOR, WITHOUT A STRATEGY, MAKING IT UP AS SHE GOES ALONG IN AN EFFORT TO PUT SOMETHING TOGETHER . . . This determination is now tied to not just the perception of the national interest, but her own personal interest too.
It is possible, though unlikely, that Ms. Rice could change the historical record in her remaining time in office. If she pulls a rabbit out of her hat on the Israeli-Palestinian question, and some kind of political compromise in Iraq, it could partially salvage her legacy.
One of Ms Rice's partners in her effort is our prime minister. And he, too, seems inclined to salvage something from a damaged reputation. Hanging over him is an official recommendation to open police investigations about one charge of corruption, several other charges working their way through the bureaucracies, and the prospects of a damning report by an official commission investigating last year's war in Lebanon.
A METAPHOR FOR BOTH RICE AND OLMERT COMES FROM AMERICAN FOOTBALL. BOTH ARE THROWING A "HAIL MARY" PASS. IT IS LATE IN THE GAME; THEY ARE BEHIND; AND A LONG PASS MIGHT SALVAGE THINGS. MY RECOLLECTION FROM WATCHING AMERICAN FOOTBALL IS THAT LONG PASSES USUALLY GO ASTRAY.
The football is in the air. We do not know where it will land by November. We have not yet concluded the worst and left the stadium, but the Rice-Olmert team may have to chock up a loss on this game
For decades, only the gardens of the South Coast were warm enough for them. But after years of mild winters, one of Britain's most colourful and striking spiders is on the march. The population of the wasp spider has exploded and is spreading rapidly north. This year, females have been spotted in Surrey and Hertfordshire.
Stuart Hine, of the National History Museum, said: "We are getting a lot of reports of people finding them in their gardens. Last year we had unprecedented numbers.
"We are about to start the spider season - when females are at their largest and when the males look for mates - so we could see more." Female wasp spiders are around the size of a 2p piece, with body marking resembling those of wasps and bees.
But while they can bite, the creatures are not poisonous. The males, which are far smaller and brown, are often eaten by the females after mating. Because of this danger, males lurk on the edge of the female's web until she sheds her skin. For a while after this process her jaws are soft so he can mate in relative safety. Despite such precautions, many males are still devoured by their partners.
Climate has been linked to the spread of a number alien species across Britain in recent years.
Among them are scorpions which are reported to have migrated from colonies in London's docks.
Parents will be alerted this week to ensure children avoid artificial additives in drinks, sweets and processed foods because of explosive evidence about the effects on behaviour.
A plausible connection to tantrums, poor concentration and slow progress at school is understood to have been found in a study to be published by the Government's Food Standards Agency. Food industry leaders have been summoned to a meeting with the FSA today for a briefing on the research and its implications.
THE FINDINGS, FROM SOUTHAMPTON UNIVERSITY, RAISE THE POSSIBILITY OF PARENTS SUING FOOD MANUFACTURERS IN THE SAME WAY TOBACCO FIRMS HAVE BEEN PURSUED BY CANCER VICTIMS IN THE U.S. The study could also mean the industry will have to reformulate a vast array of children's products. Some supermarkets and manufacturers have pre- empted the study by announcing bans on suspect additives in sweets, cakes and soft drinks.
THE FSA HAS CLOAKED THE FINDINGS IN SECRECY but its experts are expected to tell parents the only way to avoid any risk is to cut the additives from their children's diet. Health campaigners, however, believe a more stringent legal ban is necessary. The risk of allergic reactions, such as breathing problems and asthma, from certain additives was established more than 20 years ago.
The Southampton research is expected to support the fears of Sally Bunday of the Hyperactive Children's Support Group. She said the reaction to the artificial chemicals could be "horrendous in terms of mood swings with crying, screaming, inability to sleep". She added: "There can also be physical reactions such as difficulty in breathing and skin rashes".
The additives may help explain the rise in Attention Deficit Hyperactivity Disorder in children. Some 359,000 prescriptions for ADHD prevention drugs are issued each year, up 90-fold since the early 1990s. Critics of food additives believe this disruptive behaviour can be cured by a return to natural food, rather than drugs.
Vyvyan Howard, professor of bioimaging at Ulster University and an adviser to the FSA, called for the additives to be removed on a precautionary basis. HE SAID: "THEY HAVE NO NUTRITIONAL VALUE, SO WHY PUT THEM IN? "There are very tight restrictions banning these additives from foods designed for children under the age of one. But why stop there? "Children's brains and nervous systems are developing beyond the age of one."
THE COLOURS, TESTED ON GROUPS OF THREE-YEAR-OLDS AND EIGHT-TO-NINE YEAR OLDS BY THE SOUTHAMPTON RESEARCHERS, WERE TARTRAZINE (E102), PONCEAU 4R (E124), SUNSET YELLOW (E110), CARMOISINE (E122), QUINOLINE YELLOW (E104) AND ALLURA RED AC (E129). THE TEAM ALSO LOOKED AT THE EFFECT OF THE PRESERVATIVE SODIUM BENZOATE (E211), WHICH IS COMMONLY USED IN SOFT DRINKS.
The first detailed map of a man's genes shows the genetic code is even more complex than anyone thought.
For instance, science still cannot pinpoint what makes a person's eyes blue. Initial study of genome entrepreneur Craig Venter's own DNA map shows 4.1 million places where his genetic code is different from the basic "reference" human genome. This is many more than had been expected, including big differences that extend far beyond the single-letter changes that account for much of the variation seen so far.
"I think the biggest surprise is we are lot more different from one another than we thought," Venter said in a telephone interview. But there are still some mysteries. "I found out that I have a high probability of having blue eyes," the blue-eyed Venter said in a telephone interview. "You can't even tell with 100 percent accuracy if I would have blue eyes, looking at my genetic code," he laughed. "We all thought that would be simple."
The researchers at the J. Craig Venter Institute in Maryland, along with teams at The Hospital for Sick Children in Toronto and the University of California San Diego, analyzed Venter's genetic code to compare it with the rival human genome maps published in 2001 by Venter's private company and the publicly funded Human Genome Project.
The study is available freely to the public at http://biology.plosjournals.org/perlserv/?request=get-
AL-ASAD AIR BASE, Iraq (AP) - President Bush, briefed by U.S. military commanders and Iraqi leaders, said Monday some American forces could be sent home if security across Iraq improves as it has in Anbar province, a former hotbed of Sunni insurgency.
But the president, flanked by Defense Secretary Robert Gates and Secretary of State Condoleezza Rice, did not say how many troops could be withdrawn or how soon. Despite intense pressure at home for cutbacks, Bush said decisions about troop levels "will be based on a calm assessment by our military commanders on the conditions on the ground - not a nervous reaction by Washington politicians to poll results in the media.
"In other words," the president told cheering troops, "when we begin to draw down troops from Iraq it will be from a position of strength and success - not from a position of fear and failure."
Critics of the war argue that while the troop buildup may have tamped down violence, the Iraqis are making almost no headway toward political reconciliation. They cite a handful of gloomy progress reports trickling out of Washington that show some success in curbing violence, but little progress toward political power-sharing agreements.
There are now 162,000 U.S. troops in Iraq, including 30,000 that arrived since February as part of Bush's revised strategy to provide security so Iraqi leaders could build a unity government.
Nearly two-thirds of the public believe ministers are using environmental fears as an excuse to raise tax revenue, according to a poll.
And research suggests their cynicism is justified - with green taxes raking in £10 billion more for the Treasury than it would cost to offset the entire UK's carbon footprint. The figures are contained in a dossier compiled by pressure group the TaxPayers' Alliance (TPA).
The document is likely to provide grim reading for politicians of all colours - including Prime Minister Gordon Brown and Tory leader David Cameron - who are committed to making individuals pay for habits which damage the environment.
Using previous international research into climate change, the report estimated that covering the social cost of carbon emissions would have cost £11.7 billion in 2005. But receipts from green taxes such as fuel duty, road tax and the Climate Change Levy totalled £21.9 billion. On average every household in the UK paid £400 more in levies than it cost to cover their own footprint, the TPA claimed.
Lieutenant General Robert Elder, senior Air Force officer for cyberspace issues, recently joked that North Korea "must only have one laptop" to make the more serious point that every potential adversary "except Pyongyang" routinely scans US computer networks.
North Korea may be impotent in cyberspace, but its neighbour is not. The Chinese military sent a shiver down the Pentagon's spine in June by successfully hacking into an unclassified network used by the top policy advisers to Robert Gates, the defence secretary.
Sami Saydjari, chief executive of Cyber Defense Agency and a former Pentagon cyber expert, warns of the potential for terrorist groups, such as al-Qaeda, to attack the financial, telecoms, and power sectors.
TO UNDERSCORE THE THREAT, HE NOTES THAT NO CYBER RED TEAM - HACKERS ENLISTED TO ATTACK SYSTEMS TO HELP IDENTIFY WEAKNESSES - HAS EVER FAILED TO MEET ITS OBJECTIVE.
Gregory Garcia, the assistant secretary for cyber security at the department of Homeland Security, says the number of cyber incidents reported to the department's computer readiness team so far this year is 35,000. That compares to 4,100 for the whole of 2005.
The Chinese military hacked into a Pentagon computer network in June in the most successful cyber attack on the US defence department, say American officials. Computer hacking seems to have become yet another Chinese growth industry.
The Pentagon acknowledged shutting down part of a computer system serving the office of Robert Gates, defence secretary, but declined to say who it believed was behind the attack. Current and former officials have told the Financial Times an internal investigation has revealed that the incursion came from the People's Liberation Army.
Angela Merkel, Germany's chancellor, raised reports of Chinese infiltration of German government computers with Wen Jiabao, China's premier, in a visit to Beijing, after which the Chinese foreign ministry said the government opposed and forbade "any criminal acts undermining computer systems, including hacking".
"We have explicit laws and regulations in this regard," said Jiang Yu, from the ministry. "Hacking is a global issue and China is frequently a victim."
The PLA regularly probes US military networks - and the Pentagon is widely assumed to scan Chinese networks - but US officials said the penetration in June raised concerns to a new level because of fears that China had shown it could disrupt systems at critical times.
"The PLA has demonstrated the ability to conduct attacks that disable our system - and the ability in a conflict situation to re-enter and disrupt on a very large scale," said a former official, who said the PLA had penetrated the networks of US defence companies and think-tanks. Hackers from numerous locations in China spent several months probing the Pentagon system before overcoming its defences, according to people familiar with the matter.
The Pentagon took down the network for more than a week while the attacks continued, and is to conduct a comprehensive diagnosis. "These are multiple wake-up calls stirring us to levels of more aggressive vigilance," said Richard Lawless, the Pentagon's top Asia official at the time of the attacks.
How the 'real' economy will pay for a month of mayhem in the markets
DO BANK share prices matter? And to the extent that they do, are they now signalling a recession ahead?
The crisis that has gripped the financial sector in recent weeks has centred on a collapse of confidence in financial products, starting with US subprime mortgage loans and spreading out across the much larger market in asset backed commercial paper. While dealings in this market tend to be undertaken at one remove from the retail banks, giants such as HBOS, Barclays and Royal Bank of Scotland are seen as the most exposed to this flight of confidence and for the debt as it ultimately falls due.
This is why the banking sector of the London stock market has been so badly affected by the turbulence of the past few weeks. There are now signs of some recovery but few are convinced that we have seen the end of this crisis. These concerns are of particular interest to the financial sector in Scotland as it has come to be dominated by two large banks - Royal Bank of Scotland and HBOS. Shares in these companies are down by 20 per cent and 24 per cent respectively from their high points just a few months ago.
There are three ways in which the liquidity crisis in the banking sector could transmit a slowdown in the wider economy.
The first and most immediate is through a sharp fall in corporate mergers and acquisitions. The second conduit is through the adoption by the banks of tighter lending criteria, both for business borrowers and for households. And the third transmission mechanism is the effect on business and household confidence.
Financial sector retrenchment is likely to come in banking and corporate advisory work and to a lesser extent in fund management. And as this has been the fastest sector of the economy in Scotland, the repercussions could soon be felt. Markets will continue to be watched with apprehension.
British withdrawal from the EU is coming into sharper focus, with all the grave consequences that will ensue for the Atlantic order and the cause of market liberalism.
For this we can thank those who recklessly - or mischievously - chose to revive the European Constitution after rejection by the French and Dutch people, when common sense urged Brussels to lie low, lick its wounds, and rediscover patience.
By reopening this can of worms, they have already let France's Nicolas Sarkozy excise the clause "free and undistorted competition" from the core objectives of the Union. Adieu to the single market, the one incontrovertible benefit of EU membership.
It would never have been easy to win a British referendum on the original (better) text, which furnishes the EU with the apparatus of a thrusting state - president, foreign minister, justice department, supreme court, energy tsar, and treaty-making powers. It will be much harder now.
Gordon Brown's plan to slip it through Parliament is becoming untenable in the face of a backbench revolt by Labour MPs, a united Tory opposition, and likely calls for a vote by the Liberal Democrats. As David Blunkett said last week, Downing Street has failed to justify why Labour is violating its manifesto pledge to hold a referendum. "It is critical for the Government to demonstrate the difference between the original constitutional treaty and the current treaty," he said.
Well, yes, and how is this to be done when Valery Giscard d'Estaing, the author, himself says the changes are "more cosmetic than real", that "the substance is similar or even the same," and that the label constitution has been dropped to "make a few people happy"?
Should Gordon Brown persist with this charade, he will be chased out of Downing Street within two years.
Where all this might end is anybody's guess, but it is a fair assumption that Mr Sarkozy will quickly press for a core-Europe, one more willing to entertain his plans for "Community Preference" (a semi-closed trade bloc), a managed exchange rate, and perhaps capital controls - as allowed by majority vote under Article 59. By then, the French, Spanish, Greek, and Italian housing booms will have popped, so the mood will be receptive.
What we take for granted as the permanent post-War order is more fragile than it looks. Tug too hard on the British thread, and the European system quickly starts to unravel. Jean Monnet would have seen the dangers of this. Germany's Angela Merkel does not. The provincial and ill-advised Kanzlerin has over-played a tactical hand, heedless of strategic risk. The die is caste.
Today we find the Church of God in a “wilderness of religious confusion!”
The confusion is not merely around the Church – within the religions of the world outside – but WITHIN the very heart of The True Church itself!
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