The world economy continued its collapse. The Dow Jones Industrial Average declined 22 percent over eight days, Wall Street lost $2.4 trillion in market value, and Iceland went bankrupt.CNNBusiness WeekThe head of the International Monetary Fund warned that the world was on the “brink of systemic meltdown,”BBCand Democrats in Congress called for a $150 billion economic stimulus plan to rebuild America’s crumbling infrastructure.Yahoo! NewsBarack Obama called for firms that create jobs to be rewarded with tax credits and for a moratorium on foreclosures;AFPJohn McCain refused to answer questions about his economic plan, but was reportedly considering a cut in the …

At least 150 Iraqis were killed by a truck bomb in northern Iraq in possibly the deadliest bombing since the United States invaded in 2003, and it was reported that, despite a police security drive, the number of unidentified bodies found in Baghdad had increased sharply in June. New York TimesBBCnews.comAustralia’s defense minister, Brendan Nelson, admitted that securing oil is one of the reasons Australian troops stay in Iraq. “This government,” said Labor leader Kevin Rudd, “simply makes it up as it goes along.”BBCnews.comThe White House rejected demands to hand over documents related to the firings of eight U.S. attorneys …

In Iraq, armed men believed to be working for the Ministry of Defense kidnapped an Iranian diplomat, a car bomb killed at least 33 policemen, a political officer affiliated with the Mahdi Army was assassinated, and in Sadr City, Baghdad’s largest Shiite slum, conditions were much improved following the input of $41 million in reconstruction funds.NY TimesCNNNY TimesNY TimesA mistrial was declared in the court-martial of Lieutenant Ehren K. Watada, the first American military officer to refuse to deploy to Iraq,.NY Times and Vivelacanadaand Secretary of Defense Robert Gates dismissed Vladimir Putin’s criticisms of U.S. foreign policy as the “blunt …

Hillary Rodham Clinton announced that she will run for President in 2008, and Barack Hussein Obama released a video on the Internet announcing that he has formed a presidential exploratory committee. It was reported that Obama had concealed that he was raised as a Muslim and had attended a madrassah as a child.BBCWashington PostSeventy Iraqis died and 170 were injured when two bombs exploded at a university in Baghdad.CNNThe United Nations announced that 34,452 civilians were killed in Iraq last year, a number nearly three times higher than previous estimates by the Iraqi interior ministry.BBC“I think,” said President George W. …

An American cattleman. Robert Gates was approved by the Senate to replace Donald Rumsfeld as the new secretary of defense; senators described themselves as “very pleased,” “very impressed,” “very enthusiastic,” “very grateful,” and “very happy” with the confirmation. Rumsfeld gave an emotional farewell speech to Pentagon employees, and had to wipe his nose.Washington PostWashington PostNew York TimesPresident George W. Bush blamed John Bolton’s departure from the U.N. on the “shallow politics” of the Senate, and Kofi Annan, who will leave the U.N. on December 31 after completing his second five-year term as secretary general, said that he and Bolton were …

Midterm elections were held in the United States; the Republican Party lost its majority in the House of Representatives and the Senate. Six incumbent Republican senators, including Rick Santorum of Pennsylvania, were defeated, and Santorum’s daughter cried. Nancy Pelosi of California, who is expected to become the first female Speaker of the House, had lunch with President George W. Bush.Reuters via Yahoo!MSNBCBoston.comIn Iraq the parliament extended the nationwide state of emergency by 30 days, and eight soccer players and fans were killed by mortar rounds. “We are the Shiite nation,” yelled a man from his hospital bed.MSNBCThree U.S. soldiers, four …

A kinkajou, 1886. The Pentagon announced that civilian casualties in Iraq had increased recently by more than fifty percent, and death squads were said to be torturing and killing as many as 1,800 people per month.New York TimesAt least 200 Iraqis were killed in bombings, rocket attacks, and shootings, as were 19 American and British soldiers.CNNNPRU.S. Attorney General Alberto Gonzales visited Iraq to encourage “the rule of law,” andicasualties.orgNPRReutersReutersReutersSapa-AP via Independent OnlineReutersReutersAP via Houston ChronicleU.S. Secretary of DefenseDonald Rumsfeld quoted Georges Clemenceau, who said, “War is a series of catastrophes that results in a victory.”Washington PostIran ignored a U.N. Security …

After an Israeli bombing raid killed 54 people, including 37 children, in the Lebanese village of Qana, Beirut residents set fire to a U.N. headquarters.Daily Star (Lebanon)Israel agreed to suspend some bombing operations for 48 hours in order to investigate the deaths, though Israeli Prime Minister Ehud Olmert ruled out a ceasefire.BBCIsraeli bombs struck a U.N. post in southern Lebanon, killing four peacekeepers. U.N. Secretary General Kofi Annan said the targeting was “apparently deliberate,” and Olmert called Annan’s comments “premature and erroneous.”BBCAl JazeeraThe United Nations began relief operations.ReutersHezbollah guerillas fired several hundred rockets into towns in northern Israel, hitting a …

Killing Ground. Israel insisted it had no immediate plans for a large-scale ground invasion of Lebanon, although it seized two Lebanese towns, called up 10,000 troops to the border, and called thousands of reservists to active duty. Almost 400 people (362 Lebanese, 37 Israelis) have been killed so far in the conflict. European governments debated the proportionality of these deaths, and Syrian president Bashar Assad told the international community to stop procrastinating and broker a ceasefire.NY Times and The AustralianPresident Mahmoud Ahmadinejad of Iran predicted that Israel had “pushed the button of its own destruction.”The AustralianNY TimesThe AustralianThe AustralianNY TimesNational …

North Korea launched six rockets over the Sea of Japan, including a Taepodong-2 intercontinental ballistic missile, which apparently was aborted after just 40 seconds. One thing we have learned, said President George W. Bush, who strongly dislikes North Korea’s Dear Leader Kim Jong Il, “is that the rocket didn’t stay up very long.” The president, who expressed annoyance when a reporter pointed out that Kim Jong Il had on all accounts increased his nuclear potency since Bush took office, claimed that his antimissile system, which has failed repeated tests, had a “reasonable chance” of intercepting the Taepodong.New York TimesIndia tested …

Runaway Raft on the Tigris. Palestinian militants conducted a raid in Israel and abducted an Israeli soldier, whom they carried to Gaza via a secret tunnel. Israel retaliated by bombing Gaza’s main power plant, two bridges, the offices of Palestine’s prime minister and interior minister, and a soccer field, and by arresting as many as 64 Palestinian officials. Palestinian militants demanded that Israel release all Palestinian prisoners who are women or under the age of 18. A number of Israeli and Palestinian officials speculated that Israel’s actions were intended to weaken or topple Palestine’s Hamas government.VOA NewsIn Iraq, where 14 …

In Iraq, a car bomb in Basra killed at least 33 people, CNNa mortar attack in southern Baghdad killed 9 people,Yahoo! Newsand 8 U.S. soldiers died.icasualties.orgPolice found 22 bodies with bullet wounds and signs of torture in Baghdad;Reutersnorthwest of the city, at an improvised checkpoint, 19 civilians were dragged from their cars and shot.Kuwait News AgencyTwenty-one Kurds and Shiites, many of them high school students, were ordered off a bus and executed in Ain Laila.Belleville News DemocratIn Baquba 7 policemen were killed,BBCand the heads of 8 Sunni men were found in Dole banana boxes.Indian ExpressReutersSix more policemen were killed in …

In Iraq car bombs killed 24 people,BBC Newsand a British helicopter was shot down over Basra, killing all five crew members.The GuardianIn Anbar, at a ceremony for new Iraqi soldiers, the graduates were told that they would be sent outside of their home province to serve, leading several soldiers to tear off their clothes in protest.The Washington PostIraqipoliceshot a 14-year-old boy named Ahmed Khalil in the head for being a gayprostitute.Gay.comIn Afghanistan the power of the Taliban was growing.The New York TimesAnalysts found that President George W. Bush had claimed exemption from 750 laws,The Boston Globeand Bush said that the …

Runaway Raft on the Tigris. Peter Schoomaker, the Army’s top general, revealed that the United States was developing a plan to keep at least 100,000 soldiers in Iraq through 2009. Senator Chuck Hagel (R., Nebr.) called the plan “complete folly.” “It would further destabilize the Middle East,” he said. “It would give Iran more influence, it would hurt Israel, it would put our allies over there in Saudi Arabia and Jordan in a terrible position.”APAPPresident George W. Bush had yet to meet Iraq war protester Cindy Sheehan, even though Bush is on vacation and presumably has the time. “I think …

The United Nations warned that 2.5 million people will die of hunger in Niger if the country does not receive foreign food aid immediately. President Mamadou Tandja responded that “the people of Niger look well-fed.”AlertNetBBC NewsMauritania, Burkina Faso, and Mali were also facing major food shortages.BBC NewsA study found that the worldwide percentage of land stricken by drought has doubled within the last 30 years.Vail DailyThe Space Shuttle Discovery landed safely in California.BBC NewsIran decided to start producing enriched uranium,Reutersand the Environmental Protection Agency was working on ways to limit the radioactivity of the planned Yucca Mountain, Nevada, nuclear-waste dump …

Lost Souls in Hell, 1875. As the culmination of its $1.4 billion “Return to Flight” effort, NASA launched the Space Shuttle Discovery into orbit. Almost immediately, the shuttle shed pieces of insulation and hit a bird. President George W. Bush watched the launch on a small television and clapped his hands, and NASA grounded all future shuttle flights.NewsdayBoston.comThe Washington PostThe Washington PostRussia offered to send a rich person to orbit the moon in exchange for $100 million.The GuardianNew Mexico announced its first case of bubonic plague in two years. “Plague,” said a New Mexico man who contracted the illness in …

Lost Souls in Hell, 1875. It was hot in most of the United States. Many U.S. cities set records for high temperatures, and huge wildfires burned in the Southwest. At least twenty people, many of them homeless, died from the heat in Phoenix, Arizona.The New York TimesWashington PostConcern over storms in the Gulf of Mexico led to an increase in oil prices,Reutersand the directors of Enron gave themselves large raises.KLTVInvestigations into the expenses of former Tyco executive Dennis Kozlowski revealed that Kozlowski had once held an extravagantbachelor party for his son-in-law. “It wasn’t like a three-ring circus,” said the son-in-law’s …

President George W. Bush said that allegations made by Amnesty International, claiming that the prison at Guant�namo Bay is a “gulag,” were absurd. Bush accused Amnesty of listening to “people that have been trained in some instances to disassemble–that means not tell the truth.” Whitehouse.govU.N. Secretary General Kofi Annan said that HIV and AIDS were spreading at an accelerating rate around the world,ReutersNew Jersey was planning to try six animal-rights activists on “animal enterprise terrorism” charges,Reutersand an Australian woman was arrested for attempting to bring fifty-one tropical fish into the country hidden in her skirt.APSeveral prisoners at Guant�namo Bay said …

In Iraq at least one hundred Iraqis and eleven U.S. troops were killed in a span of four days. More than twenty car bombs were detonated, and in one case, a suicide bomber drove a car bomb into a Kurdish funeral tent, killing at least twenty-five people. Los Angeles TimesAccording to General Richard Myers, the Chairman of the Joint Chiefs of Staff, the strength of the Iraqi militant movement has not diminished during the past year.The GuardianArab newspapers reported that Donald Rumsfeld had a secret visit with Saddam Hussein and offered to free him if Hussein called for a ceasefire …