In a videoconference with Hong Kong investors, former Federal Reserve chairman Alan Greenspan said that America might sink into recession by year’s end; a frenzied worldwide sell-off ensued. The Shanghai Composite lost 8.8 percent of its value in a day, and the Dow Jones Industrial Average lost 3.3 percent, its worst drop since September 17, 2001. “Alan Greenspan really needs to sit down,” said one economist, “and be quiet.” Others marveled at the ability of “the Maestro” to cause upheavals even in retirement; Greenspan later held another videoconference, for which he charges fees of $150,000, and said that a recession …

Two suicide car bombs blew up in central Baghdad, killing fifteen and injuring thirty.BBC NewsA bomb in Kirkuk killed twelve Iraqi guards,Al Jazeeraan American contractor was kidnapped north of Baghdad,BBC Newsand Marla Ruzicka, an activist from California who made it her mission to count the number of civilian casualties in Iraq, was killed in Baghdad by a suicide bomber.GuardianThe Iraqi army intervened to end a widely publicized hostage crisis in al-Madain, south of Baghdad, but found no hostages.ReutersIn the United States, Eric Rudolph, a Christianterrorist, pleaded guilty to several bombings, including those at the Atlanta Olympics in 1996, an abortion-clinic …

Caught in the Web. Evidence continued to emerge that high-level officials in the Bush Administration approved the torture of prisoners in Iraq and elsewhere; althoughThe HillAttorney General John Ashcroft denied that the president authorized the use of torture on suspected terrorists, he refused to give Congress several memorandums by Justice Department lawyers laying out ways that interrogators could evade anti-torture laws.New York TimesSuch documents were being leaked, however; in one report on interrogation methods, administration lawyers argued last year that President Bush is not bound by laws and treaties that ban torture; the report concluded that “in order to respect …

Babylonian Lion, March 1875. Six American soldiers, including a general, were facing court martial over the torture and sexual humiliation of Iraqi prisoners at the Abu Ghraib prison, which was famous for its torture chambers under Saddam Hussein. Photographs of the abuse were broadcast on U.S. television; one image depicted a hooded prisoner standing on a box with wires attached to his genitals.BBCOther photos showed prisoners masturbating; several showed U.S. soldiers smiling and posing next to their victims.New York TimesSome of the soldiers blamed mercenaries for the abuses;Guardianothers said that military intelligence was in control of that cellblock.New York TimesPhotographs …

President George W. Bush signed a $400 billion Medicare bill that will provide a prescription-drug benefit to elderly Americans; the bill permits private insurance companies to compete with Medicare, which many think will destroy the program, but bans policies that would cover gaps in the drug benefit on the theory that people with good prescription coverage take too many pills and drive up medical costs.Associated Press, New York TimesThomas Scully, the federal official who runs Medicare, was preparing to take a job in the private sector, probably with a company that will directly benefit from the new bill, which he …

President George W. Bush traveled to Great Britain, along with 650 companions, including five personal chefs, but was unable to move freely in the country because of massive protests. At Buckingham Palace the president dined on roasted halibut with herbs, free-range chicken, potatoes cocotte, salad, and a sorbet bombe but presumably skipped the Puligny-Montrachet and the Veuve Clicquot, Gold Label, 1995. Truck bombs blew up the British Consulate and a British bank in Istanbul, killing at least 27 and wounding hundreds. Bloody victims ran screaming through the streets. Two hotels in Baghdad used by Westerners were bombed as was the …

The Bush Administration, worried about the political cost of the Iraq war and increasingly plagued by comparisons with Vietnam, decided to speed up its “Iraqification” plan by transferring sovereignty to a provisional native government by June 30.New York Times, USA Today“They are, we believe, ready for it,” said Condoleezza Rice. “And they have very strong ideas about how it might be done.” President Bush said that he believes the Iraqis “have the capacity to run their own country.”ReutersThe American-appointed mayor of Sadr City, a suburb of Baghdad, was killed after he drove into a forbidden area and got into a …

Attorney General John Ashcroft mocked librarians for their opposition to provisions of the USA Patriot Act that permit federal agents to seize citizens’ library records; Ashcroft said that the librarians were indulging in “baseless hysteria” and wondered why the FBI would care “how far you have gotten on the latest Tom Clancy novel.” He did not make clear why the government needs access to library records, however,New York Timesand later said that no requests for such records had yet been made.New York TimesMembers of the House and Senate appropriations committees agreed to kill funding for the Pentagon’s Terrorist Information Awareness …

Senator Robert Torricelli of New Jersey withdrew from the November election after new evidence emerged that he had accepted “improper gifts” from a contributor; Torricelli said that he did not want to jeopardize Democratic control of the Senate. A new poll found that most Americans are opposed to invading Iraq if it means significant Iraqi civilian casualties; a majority of those polled also said that they were more concerned about the economy than about Saddam Hussein’s putative weapons of mass destruction and that Congress should be more critical of President Bush’s war plans. Senate majority leader Tom Daschle said that …

President George W. Bush said that he would not support the creation of a Palestinian state until the Palestinian people get rid of Yasir Arafat. Bush sketched his vision of a Palestinian state, a vision that included an independent legislature and judiciary and other democratic institutions; Bush also said he wanted Palestine to be a land of free markets without corruption. “I am willing to take my chances and say that this speech will not result in anything,” said Schlomo Ben Ami, a former Israeli foreign minister. “At times I think he is talking about Switzerland and not about the …

White House officials admitted that senior members of the Bush Administration met with the Venezuelan coup plotters in the weeks before they attempted to overthrow President Hugo Ch�vez. Some officials claimed that they had discouraged the plotters, others that they had encouraged them. One, asked if the Administration recognized Ch�vez as the legitimate president of Venezuela, replied that “legitimacy is something that is conferred not just by a majority of the voters.” Ari Fleischer, the White House spokesman, said: “I think you have to be very careful about advance knowledge of a specific act and general talk of unease in …

The Pentagon said it was planning a new propaganda office called the Office of Strategic Information, which will seek to feed news items to the foreign media in an effort to manipulate public opinion. Such items will not necessarily be true. The plan also calls for computer network attacks on media outlets whose news coverage is deemed counterproductive. Secretary of Defense Donald Rumsfeld claimed that the new office will not lie to the public but might “do things,” which he characterized as “tactical deception,” to confuse the enemy. Rumsfeld subsequently tried to distance himself from the office and muttered that …

Advanced Cell Technology Inc. of Worcester, Massachusetts, announced that it had cloned a human embryo in order to mine it for stem cells; the company said that it had taken “extreme measures” to prevent the embryo from being placed in a womb. Independent experts dismissed the cloning experiment as a failure. Mad cow disease continued to spread in Japan. Scientists at Oxford University said up to 1,500 Britishsheep could have been infected with the disease. A new study confirmed that abuse of stimulants used to treat attention-deficit disorder, such as Ritalin, was rampant among children and teens. “People don’t realize …

President George W. Bush, who turned 55 this week, played golf for the first time since he was inaugurated. The president wasasked what the Fourth of July meant to him. “It means what thesewords say, for starters,” he replied. “The great inalienablerights of our country. We’re blessed with such values in America. AndI �?? it’s �?? I’m a proud man to be the nation based uponsuch wonderful values.” A new study of 300,000 Nissan car loans found that blacks paid an average $800 more than whites. Supreme Court Justice Sandra Day O’Connor told the Minnesota Women Lawyers Association that innocent …

American newspapers and other content providers were still ignoring growing evidence, reported in the British press, of George W. Bush’s electoral coup, including new evidence that thousands of black Floridians were improperly removed from the list of approved voters. Bill Clinton’s corrupt pardons continued to dominate the news; Senator Hillary Clinton chastised her portly brother for exercising “terrible misjudgment” when he accepted $400,000 to help a coke dealer and another felon obtain pardons from his brother-in-law. Federal authorities in New York were investigating whether the pardon of four Hasidic Jews convicted of fraud was granted in exchange for votes. Roger …

Members of the Congressional Black Caucus tried unsuccessfully to block the acceptance of Florida’s electoral votes during a joint session of Congress. Federal law requires at least one senator and one member of the House to sign a formal objection questioning a state’s electoral votes; no senator was willing to sign. Black congressmen repeatedly interrupted the proceedings and were repeatedly “gaveled down” by Vice President Al Gore, who presided cheerfully over his own electoral demise.Hillary Rodham Clinton was sworn in as the junior senator from New York; Strom Thurmond, the oldest senator in history, rose up and asked, “Can I …

Israelassassinated a Palestinian paramilitary commander by blowing up his vehicle with missiles fired from helicopter gunships; two women who were standing nearby were also killed. One witness described seeing the women’s bodies with “their intestines and livers hanging out.” An Israeli general said that he hoped the assassination would “reduce the violence and bring reason back to this area.” Heavier fighting followed; two Israeli soldiers and more Palestinians, including a twelve-year-old boy, were shot dead.Yasir Arafat, the Palestinian leader, asked the United Nations Security Council to send a multinational peacekeeping force to the Occupied Territories.The U.N. General Assembly for the …

A Dutch archaeologist claimed to have identified a papyrus containing the signature of Cleopatra; the document, which dates from 33 B.C., was written by a secretary, except for one word, “genestho,” Greek for “make it so.”Saddam Hussein sent senior spies to Serbia to help Slobodan Milosevic, who lost last week’s presidential election and was facing daily protests demanding that he leave office; Milosevic’s wife, Mira, was said to favor fleeing the country.A New York jury ordered Radovan Karadzic, the Bosnian Serb war criminal, to pay $4.5 million in damages for presiding over a policy of rape, torture, and genocide in …