Moscow is not selling the powerful MIG-29 fighter-bombers (which usually go for $30 million a piece) to Lebanon, they are giving it to them for free. The bombers, built to challenge the American F-16 fighter jets, are precisely the caliber of weapons Lebanon has been asking for and the U.S. has been reluctant to give to Israel's politically unstable neighbor.

So the current financial crisis is less likely to cause a global recession than a radical realignment of the global economy, with a relative decline of the US and the rise of China and other developing countries. The danger is that the resulting political tensions, including US protectionism, may disrupt the global economy and plunge the world into recession or worse.

The current conditions can′t go on. It is time for the new government, under Obama, to really tell people: “Look, this is wartime, this is about the survival of our nation. It′s not about our supremacy in the world. Let′s not even talk about that any more. Let′s get down to the very basics of our livelihood.”

People, especially Americans, started believing that they can live on other people’s money. And more and more so. First other people’s money in your own country. And then the savings rate comes down, and you start living on other people’s money from outside.

To be sure, Pakistan is nearly broke, and U.S. policy makers seem to be aware of that; but a worldwide demand crisis could lead to social unrest in countries like Indonesia and Malaysia, Singapore, the Ukraine, Japan, Turkey or Egypt (which is facing an internal political crisis of epic proportions already).

(3), Germany regards friendly relations with Russia as a vital national interest. Whatever Russia does, Germany is generally unwilling to criticise it. This makes it hard for the EU to forge effective policies on Russia. (4), Germany, together with Britain and France, leads the EU diplomacy on Iran′s nuclear programme. But Germany is reluctant to impose economic sanctions on Iran. This annoys London, Paris and Washington. (5), Germany shows scant enthusiasm for French president Nicolas Sarkozy′s efforts to strengthen EU defence.

Nationally, home prices have fallen 23 per cent since the July 2006 peak, according to the Case-Schiller index, bringing them back to 2004 levels. Returning to 2001 prices, when the housing boom began, requires a further 25-30 per cent drop. At the current rate of decline, that will take just over two years, meaning housing is only halfway through its slump

Barack Obama chooses his words very carefully. What the US president-elect has not promised is the “creation” of 2.5m new jobs. Nor will millions of jobs be “saved”. So what does 2.5m “more” jobs actually mean?

A leading Russian political analyst has said the economic turmoil in the United States has confirmed his long-held view that the country is heading for collapse, and will divide into separate parts.

Flight attendants hate passengers because they behave like beasts, and the beasts hate the crew because they’ve become wardens rather than waiters. What’s more, the rudest and dumbest are in charge of keeping the skies secure. I dread to think what’s going on in some control towers.