President George W. Bush called for $145 billion in tax cuts, describing the measures as a “shot in the arm” for the U.S. economy, which caused stock values to plunge in Australia, Tokyo, Hong Kong, China, and across Europe. “There’s something approaching panic in the market,” said an analyst with Bank of America. “The short-term risks,” explained Treasury Secretary Henry Paulson, “are to the downside.”BBC NewsNew York TimesBBC NewsResearchers found that foreigners invested $414 billion in American companies in 2007, up 90 percent from 2006. “This is a vote of confidence in the American economy,” said Deputy Treasury Secretary Robert …

In Iraq, the sixth suicide chlorine attack in two months killed 20 people in the Anbar province, New York Timesthe resurgent Mahdi army clashed with U.S. soldiers in Sadr City,Washington PostAmerican fighter jets bombed Shiite militiamen in Diwaniya,New York Timesand in Baghdad, a U.S. congressional delegation outfitted with bulletproof vests, flanked by 100 soldiers in armored Humvees, and watched over by attack helicopters, visited a local bazaar to demonstrate the success of the current security plan. It was, said Representative Mike Pence (R., Ind.), just like an “outdoor market in Indiana in the summertime.”New York TimesVice President Dick Cheney attacked …

The Cloaca Maxima, 1872 The 110th Congress convened on Capitol Hill, and Representative Nancy Pelosi of California kicked off her tenure as America’s first female speaker of the House with four days of parties dubbed “Pelosi-Palooza.” The festivities included a performance by singer Tony Bennett and an honorary street-naming in Pelosi’s hometown of Baltimore. Senator Robert Byrd of West Virginia disrupted the Congress’s opening prayer with shouts of “Yes, Lord!” and “Mmmhmmm!” and Senator Ted Kennedy of Massachusetts mimed tipping a bottle to his mouth. Congress’s first Muslim member took his oath on a Koran once owned by Thomas Jefferson, …

Killing Ground. Iranian president Mahmoud Ahmadinejad, speaking at the United Nations in New York, proclaimed his love for all the world’s peoples, and suggested that the United States halt domestic fuel production and buy its energy from him “at a fifty percent discount.”BBC NewsVenezuelan president Hugo Chavez objected to the smell of sulfur in the U.N.’s General Assembly hall, and offered to relocate the U.N.’s headquarters to Caracas. New York timesFox NewsTed Turner called the Iraq war one of the “dumbest moves of all time,”CNNand a spokesman for the Iraq Study Group, a think tank created to analyze events in …

Runaway Raft on the Tigris. Thousands of U.S. Marine reserves were involuntarily recalled to active duty to offset a lack of volunteers for the fighting in Iraq and Afghanistan.CNNPresident George W. Bush admitted that the Iraq war was “straining the psyche of our country,”Washington Postand Secretary of State Condoleezza Rice refused to categorize the fighting in Iraq as a civil war, citing instead “sectarian differences.”Washington PostThree Kurdish women testified against Saddam Hussein in his chemical-weapons genocide trial, describing a “sweet, mysterious smell” that blinded them, killed their relatives, and forced them to hide in caves.New York TimesA senior U.S. general …

Israeli Prime Minister Ehud Olmert insisted that the war with Lebanon would continue, and the Lebanese government rejected an internationally-brokered peace plan, claiming it favored Israel.Washington PostHezbollah leader Sheik Hassan Nasrallah boasted that his forces were inflicting “maximum casualties” and warned Israel that if it “bombed our capital Beirut, we will bomb the capital of your usurping entity”; he also called on his fellow Arab leaders to “be men for just one day.”NY TimesCNNLebanon’sstock exchange reopened,NY TimesNY TimesBBCand the mayor of Beirut said war with Israel was bad for the environment.Globe and MailEnglish Prime Minister Tony Blair said there was …

The U.S. State Department issued a report criticizing human rights abuses in China, North Korea, Iran, and Cuba. It also criticized the rights records of Jordan and Egypt, two countries where the United States has sent detainees to be interrogated. The report noted that the United States’ “own journey towards liberty and justice for all has been long and difficult,” and is “far from complete.”The New York TimesThe IndependentA bombing at a Shiite market in Sadr City, Iraq, killed at least 50 people; Shiite vigilantes responded by abducting four men, beating and executing them, and hanging them from lampposts.The New …

White House photo. At least 162 people were killed in violence in Iraq,The New York Timeswhere 173 malnourished Sunni Arab prisoners, many of whom had been severely tortured, were found in the basement of an Iraqi Interior Ministry compound. “You know what happens in prison,” explained the Interior Ministry’s undersecretary for security. “Their skins,” said one witness, “got stuck to the floor.”Democracy Now!Common DreamsTwo Iraqi businessmen accused U.S. troops of caging them with lions in 2003. The men were also severely beaten after they were not able to tell Army interrogators where to find Saddam Hussein or weapons of mass …

Hurricane Rita, the third-most intense hurricane ever recorded in the Atlantic basin, struck Florida, Texas, Arkansas, Mississippi, and Louisiana, killing 36 people and causing flooding, tornadoes, and storm surges, and re-flooding parts of New Orleans. Hurricane evacuations caused miles of traffic jams in Texas, and a bus filled with elderly people exploded when an oxygen tank caught fire, incinerating at least 24 passengers.WikipediaHouston ChronicleIn the wake of Hurricane Rita, which damaged a number of oil refineries, President George W. Bush called on Americans to conserve gas. “I mean,” he said, “people just need to recognize that the storms have caused …

Lost Souls in Hell, 1875. Emergency officials in Louisiana requested 25,000 body bags for victims of Hurricane Katrina, and a total evacuation of New Orleans was ordered. Much of the city was still underwater, though several people who lived on high ground objected to the evacuation. “I haven’t even run out of weed yet,” said one woman.The GuardianThe New York TimesHouston, Texas, the headquarters of contractors Halliburton and Baker Hughes, was preparing for a boom; one real-estate firm was offering special financing deals “for hurricane survivors only.”IHTWealthy residents of New Orleans were devising ways to rebuild the city with a …

Lost Souls in Hell, 1875. In the aftermath of Hurricane Katrina the United States declared disasters in Alabama, Florida, Louisiana, and Mississippi. Taken together, the 90,000-square-mile disaster area would be the twelfth largest state. Emergencies were declared in Colorado, Georgia, North Carolina, Oklahoma, Tennessee, Utah, and West Virginia.U.S. Department of DefenseEighty percent of New Orleans was flooded after levees were breached by rising water. LA Times“I don’t think,” said President George W. Bush, “anyone anticipated the breach of the levees.” Homeland Security Secretary Michael Chertoff said the disaster “exceeded the foresight of the planners, and maybe anybody’s foresight.” The flooding …

Lost Souls in Hell, 1875. Pat Robertson called for the United States to assassinate Venezuelan President Hugo Chavez; Robertson then lied about calling for the assassination (“‘take him out’,” he said, “can be a number of things”), and finally apologized. Chavez said that Venezuela would take legal action against Robertson.The New York TimesBBC NewsA man was arrested in Tallahassee, Florida, after threatening to blow up Governor Jeb Bush.The Tampa TribuneA New York man was recognized as having the world’s longest eyebrow hair at 3.78 inches,MyWayand a judge in Missouri decided a new statewide ban on semi-nude lap dances was unconstitutional.APScientists …

Lost Souls in Hell, 1875. North Korea needed food.BBC NewsWal-Mart announced that it would export $18 billion worth of Chinese goods,Forbesand researchers in Singapore developed a system that allows people to pet chickens over the Internet.Wired NewsPakistan was working to stop bearbaiting,BBC NewsChina put a halt to the practice of using naked women for plates in sushi restaurants,BBC Newsand Warren Beatty was wondering whether he should run for governor of California.ABC NewsNew York was reviewing a law that allows convicted rapists to obtain Viagra through Medicaid,APand a parachutist died in a fall from the Eiffel Tower.News.telegraphKylie Minogue announced that she …

A papyrologist at Oxford University announced that new techniques in spectral imaging, which make it possible to decipher previously illegible ink on papyrus fragments, have yielded parts of a lost tragedy by Sophocles, a novel by Lucian, and an epic poem by Archilochos; researchers also applied the technique to third- and fourth-century manuscripts of the Revelation of Saint John and discovered that the number of the beast, contrary to popular belief, is 616, the area code of Grand Rapids, Michigan.National PostA Washington woman found a snake with legs,Tri-City Heraldlocusts plagued Bangladesh,NZHeraldand Zimbabwe was at risk of famine.ABC News OnlineMore than …

A Christian martyr. Time Magazine named President George W. Bush “Person of the Year” and praised him for “reframing reality to match his design.”CBS NewsTommy Franks, George Tenet, and Paul Bremer III were awarded the Presidential Medal of Freedom, the nation’s highest civilian honor,New York Timesand Donald Rumsfeld announced that from now on he would personally sign condolence letters sent to the families of soldiers killed in action, instead of using a machine.CNNFox News hired Zell Miller.New York TimesUnited States military officials couldn’t explain the failure of the most recent missile shield test, but maintained that it was “a very …

Ukraine’s Supreme Court ordered a second presidential run-off to be held by December 26 after it ruled last month’s fraud-plagued election invalid.New York TimesSupporters of Prime Minister Viktor Yanukovich, the winner in the November 21 run-off, threatened to form a separate nation in the country’s east; theNew York Timesopposition candidate, Viktor Yushchenko, who promises to increase Ukraine’s ties to the West, celebrated the court’s decision with thousands of protesters in Kiev’s Independence Square. Stricken by a mysterious illness that has left his face a mask of puffy, red cysts and lesions, Yushchenko said to the crowd, “This is the face …

The Bush Administration reversed itself and declared that non-Iraqis captured fighting in Iraq are not protected by the Geneva Conventions; such prisoners, it was reported, have already been transferred out of Iraq in recent months and could be taken to Egypt or Saudi Arabia where torture is more common than it is in the United States.ScotsmanFour British citizens who were held without charges in Guant�namo Bay, Cuba, filed suit against Donald Rumsfeld and other senior administration officials, and claimed that they were tortured while in custody. The Pentagon responded that the men were “enemy combatants” and thus had no right …

United States military personnel who worked at Camp Delta, the largest prison camp at Guant�namo Bay, Cuba, revealed that many prisoners there were tortured by being forced to endure strobe lights and cold temperatures and extremely loud recordings of Limp Bizkit.New York TimesMembers of an Army Reserve unit in Baghdad refused to deliver a fuel shipment because they said that it was a “suicide mission.”New York TimesA study found that Gulf War Syndrome was caused by toxic chemicals.New York TimesThe U.S. was bombing Falluja again, and twoNew York Timessuicide bombers penetrated the Green Zone in Baghdad and killed five people.Washington …

Chechen militants took more than 1,000 children and adults hostage at a school in southern Russia, though the Russian government lied at first and claimed that there were only 354 hostages; at least 338 died, half of whom were children, when security forces stormed the school.Washington Post, ReutersA suicide bomber blew herself up in a Moscow subway station, killing at least 10 people.Associated PressPalestinian suicide bombers blew up two buses in Beersheba, killing 16 and wounding at least 80.Associated PressIraqi insurgents blew up another oil pipeline, and aAssociated Presscar bomb killed seven American marines and three Iraqi soldiers near Falluja.ReutersTwelve …

The 9/11 commission released its report and catalogued the many failures of intelligence and law enforcement that permitted Al Qaeda to carry out the attacks on the World Trade Center and the Pentagon; the commission concluded that “we are not safe.”New York TimesRepublicans were trying to blame it all on Bill Clinton.New York TimesFrench authorities evacuated the Eiffel Tower but failed to find a bomb.New York TimesLinda Ronstadt was booed off the stage at the Aladdin casino in Las Vegas after she dedicated “Desperado” to Michael Moore; the casino’s management removed Ronstadt from the building and refused to let her …