Li, head of the Asia department at the Chinese Academy of Social Sciences, a top government think tank, said continued intervention in currency markets by developed economies would deal a blow to global economic recovery. Chinese leaders have warned before that loose monetary policies in the United States pose a serious challenge for emerging markets, but rarely in such strident language, a window onto the rising anger in Beijing.

"The dollar's depreciation may appear to be market-driven. In reality, it is a depreciation colored by very strong, deliberate actions," Li said in the paper, which serves as the chief mouthpiece of China's ruling Communist Party. Li said the Federal Reserve's announcement that it might soon launch another round of quantitative easing by buying bonds and other financial assets had been the key factor pulling down the dollar.

The motives were plain enough, he said. Without a weaker dollar, the United States would have no hope of meeting President Barack Obama's goal to double exports in five years, Li said. Dollar depreciation will also serve longer-term interests by generating inflation and easing the debt burden that the financial crisis dumped on the US government. "If the global financial crisis was about nationalizing private debt, then in the post-crisis period the urgent need of the United States is to internationalize its national debt," he said.

Germany recently marked the 20th anniversary of its unification. The anniversary recalls a time of heady optimism about European integration when far-sighted leaders like then-German Chancellor Helmut Kohl and then-French President Francois Mitterand spearheaded the creation of the European Union on the heels of German unity.

Today, the outlook for Europe's future is decidedly pessimistic. The crisis in the euro zone has laid bare a few disquieting facts: European leaders lack the ambitious vision that once propelled continental integration, states no longer see European interests as parallel to national interests and the EU's political and economic institutions are inadequate to the challenges of economic and monetary union. There is a paradox at the heart of Europe's conundrum: Even as the European appetite for integration reaches its nadir, the best solution to the crisis may be greater unity.

With the EU mired in crisis - from demonstrations in French streets to Irish bank bailouts - strong leadership from European capitals is more important than ever. Unfortunately, the EU suffers from a leadership void. Rather than stepping up to the plate on behalf of the union, however, national leaders are focused on appeasing domestic constituencies.

It has been over a decade since NATO, the Western military alliance, presented its last mission statement. Back in 1999 the Cold War was still a raw memory and the September 11 terror attacks had not yet led to NATO's embroilment in Afghanistan. Now, facing a host of new potential enemies and challenges, the alliance is working on a brand new strategic concept.

On Thursday the defense and foreign ministers of the 28 member states gathered in Brussels to discuss the draft of the mission statement to be adopted at the next NATO summit in November. NATO Secretary General Anders Fogh Rassmussen said that the alliance was moving toward approving an anti-missile system that would protect Europe and that he hoped that Russia would cooperate on creating the shield, designed to protect Europe from possible missile attacks from the likes of North Korea or Iran. The system replaces an American plan, conjured up by the former Bush administration, to station missile defense systems in Eastern Europe, a project that drew the ire of Moscow and annoyed many of Washington's allies.

On Thursday, however, US Secretary of State Hillary Clinton came out against removing the US's remaining 200 nuclear weapons from Europe and she insisted that as long as nuclear weapons existed, NATO must remain a nuclear alliance. Clinton also called for closer cooperation with Russia and said she hoped President Dmitry Medvedev would attend the November summit in Portugal.

The portrait is rather pretentious - oil on canvas, and a whopping 156x120 centimeters (5 feet 1 inch by 3 feet 11 inches). It shows Adolf Hitler the way his Nazis and favorite artists most liked to see him - posing as the visionary ruler against a backdrop of an imagined German landscape.

"We likely could have had it," says Hans-Ulrich Thamer. The US Army, which has held the painting since 1939, would certainly have been open to loaning out the painting. But Thamer, a curator for the German Historical Museum (DHM), didn't want it. The rationale, it appears, was that German eyes shouldn't be dazzled a second time by this sort of monumental state-sponsored art from the Third Reich. Thamer prefers, instead, to display smaller reproductions of the Fuhrer. "That detracts from his impact," the curator says.

An extensive exhibition about the dictator opens this Friday at the German History Museum in Berlin, the first in Germany's post-war history to focus exclusively on Hitler's life. The exhibition is not without risks: Organizers fear that the show could be showered with unwanted praise from right-wing extremists - and with bitter protest from the rest of the country. Indeed, out of a lack of trust in those who will visit the exhibition, the show will omit anything that might glorify Hitler as a hero. "We cannot provide any opportunity to identify with him," has been the watchword for Thamer, who developed the show.

To be sure, there have been countless exhibitions in Germany addressing the Third Reich, covering topics including the Holocaust, crimes committed by the German military, the Nazi justice system, medicine in the Third Reich, forced labor, concentration camps and other horrors. Until now, though, museum directors and politicians responsible for cultural affairs have shied away from dealing directly with the man who presided over those horrors.

Last month the church council of St Peter's in Folkestone voted to take the first formal steps towards converting. It comes as traditionalists performed well at the CofE synod elections. Last October, Pope Benedict made his controversial offer of a place in the Roman Catholic Church for Anglicans that would let them retain some of their practices and traditions.

The BBC's religious affairs correspondent Robert Piggott said the invitation was expected to be of most interest to traditionalist clergy who were unwilling to serve under women bishops. However, the initiative at St Peter's was taken by lay people, with the intention of converting as a group, our correspondent added. It is thought unlikely they would be allowed to take their church with them however.

France's airport operator played down worries of fuel shortages, but strikes at all of the country's 12 refineries and fuel depot blockades prompted motorists to stock up on petrol. Truck drivers also were set to join the fray as momentum built for a day of street rallies on Saturday.

The widening protests have become the biggest challenge facing President Nicolas Sarkozy, who is struggling with low popularity ratings as he tries to appease financial markets by stemming a ballooning pension shortfall.

The US currency dropped this week to a 15-year low against the yen and fell to parity with the Australian and Canadian dollars before next week's Fed report on regional economies. Asian currencies rallied against the dollar as Singapore sought faster currency appreciation, pulling back from efforts to stem gains.

"There's a bit of push and pull in dollar weakness: the push has been revolving around quantitative easing, and the pull has been the attractiveness of emerging-market currencies," said Alan Ruskin, global head of Group of 10 foreign-exchange strategy at Deutsche Bank AG in New York. The US currency's five weeks of decline against the euro tied a stretch of losses during a period that ended December 26, 2008. The central bank cut its fed funds target that month to a range of zero to 0.25 percent.

The central bank will release on October 20 its Beige Book survey of regional Fed banks. Last month, the report found the economic rebound showed signs of slowing. Minutes of the Fed's September meeting released on October 12 indicated that policy makers were poised to take more easing steps "before long."

Most analysts expect the Fed will embark on a fresh round of Treasury purchases, over and above the $1.7 trillion in longer-term assets it has already bought. "In my opinion, much more policy accommodation is appropriate today," Chicago Federal Reserve Bank President Charles Evans told a conference hosted by the Boston Fed, repeating an argument he made earlier this month.

Boston Fed President Eric Rosengren, speaking at the same event, said Japan's drawn-out battle with deflation shows prevention may be easier than the cure, and policymakers should respond aggressively before "pernicious" deflation takes hold. "Insuring against the risk of deflation may be much cheaper than waiting until it has occurred and then trying to address it," said Rosengren, who has a darker view of the economic outlook than some of his colleagues at the central bank.

It was the most explicit signal yet from Bernanke that the US central bank is likely to ease as soon as its next meeting in November. He also suggested the Fed could indicate a willingness to hold interest rates low for longer than currently expected. "There would appear - all else being equal - to be a case for further action," Bernanke said at a conference sponsored by the Boston Federal Reserve Bank.

However, he said policymakers were still weighing how aggressive they should be if they decide to pursue a further round of asset buying, or quantitative easing, to push borrowing costs lower. "The only question left is the size and scope of QE," said Boris Schlossberg of GFT Forex in New York.

The Congressional Budget Office is projecting that the deficit for the 2010 budget year that ended September 30 will total $1.29 trillion. That's down by $125 billion from the $1.4 trillion in 2009 - the highest deficit on record. Soaring deficits have become a problem for Democrats in an election year focused on the weak economy.

Republicans have tapped into voter angst over the deficits, using the $814 billion economic stimulus and $700 billion Wall Street bailout to paint President Barack Obama and his party as big spenders. Democrats say the recession would have been worse if the government didn't step in with those programs to prop up the economy. They also note that most of the bailout, which began during the Bush administration and was supported by many Republicans in Congress, has been repaid.

Both parties have acknowledged that rising deficits will present headaches for policymakers regardless of which party controls Congress after November. The Obama administration is projecting that the deficit for the 2011 budget year, which began on October 1, will climb to $1.4 trillion. Over the next decade, it will total $8.47 trillion. Deficits of that size will constrain the administration's agenda over the next two years and will certainly be an issue in the 2012 presidential race.

'I actually am one of those who believes, with a grave danger of financial collapse, we're not out of the woods in the Western world yet,' he said in the extraordinary address. 'There is an extremely serious financial crisis.' His remarks appeared to contradict the Prime Minister, who insisted days ago that the Coalition's early decisions have put Britain 'out of the danger zone'.

Mr Clarke said the UK had 'rescued ourselves at the moment', but added: 'If we fail to deliver with the [cuts] programme we're going to set out, we'll be back there all too soon.' Speaking ahead of next week's comprehensive spending review, which will see most Government departments' budgets cut by 25 per cent over four years, the Justice Secretary said: 'These are difficult circumstances.'

In unscripted remarks to a conference of prison governors, Mr Clarke said the review would be 'quite the most dramatic in living memory'.

So far, so familiar: the classic action/reaction cycle in the development of weapons and military doctrine, while the central idea of warfare remains constant. But in the past decade cyberspace has been seen as a battlefield in its own right and as the venue for a new type of warfare. What is cyber warfare and what are governments doing about it? In spring 2007, during a dispute over a Russian war memorial, Estonian government and banking websites were the targets of sustained computer attacks. It was not clear who was responsible - a "flash mob" of Russian computer users, or the Russian government itself?

The "Clickskrieg" was especially disabling for a country that was a pioneer of electronic government and prompted the creation of NATO's cyber defence centre in Tallinn. During the Russo-Georgian conflict over South Ossetia in 2008 it again became clear that private computing power had been coordinated for strategic effect.

Other cyber-warfare events have involved Belarus, Canada, Israel, South Korea, Syria and the United States. China's intentions and capabilities feature more prominently than most in discussions concerning cyber warfare. A growing number of electronic "intrusions" are reported to originate in China, although it is unclear how far this activity is officially approved. China is believed to allocate large resources to computer network operations to enable the People's Liberation Army to dominate the electromagnetic spectrum from the start of any conflict.

According to a US Congress policy review panel in November 2008 : "China is aggressively developing its power to wage cyber warfare and is now in a position to delay or disrupt the deployment of America's military forces around the world, potentially giving it the upper hand in any conflict."

Mr Fox said the Government had a "global vision of Britain's place in the world". He also reinforced his personal stance on the cuts, describing himself as "a hawk on defence", and criticised Labour for "writing cheques it knew could not be cashed". Writing in the Times, he said: "We will continue to be a big contributor to NATO and our interests will be more secure."

His comments came after US politicians suggested an over-enthusiastic reduction in defence spending could affect international security and strain the Special Relationship. Hillary Clinton, the US secretary of state, and Robert Gates, made their unusual public intervention as talks on the defence budget went down to the wire, with the chiefs of the Armed Forces making 11th-hour personal appeals to David Cameron last night.

The Daily Telegraph disclosed last month that US officials were privately concerned that British defence spending was about to fall below 2 per cent of gross domestic product, the minimum standard expected of NATO members. Mrs Clinton and Mr Gates, America's two most senior figures on international relations and security, made those fears public in separate remarks.

Mr Gates attended a meeting of NATO defence ministers in Brussels yesterday, where he delivered his own warning. "My worry is that the more our allies cut their capabilities, the more people will look to the US to cover whatever gaps are created," he told reporters on his flight to Belgium. "At a time when we are facing stringencies of our own, that's a concern for me." Later, he told the NATO meeting: "As nations deal with their economic problems, we must guard against the hollowing out of alliance military capability by spending reductions that cut too far into muscle." The American intervention will increase tensions within Whitehall over the scale of the defence cuts to be announced next week.

Banks foreclosed on 102,134 properties in September, the first single month above the century mark, RealtyTrac said. There were 347,420 total foreclosure filings in September, 3 percent higher than August and 1 percent higher than a year earlier.

"We expect to see a dip in those bank repossessions - and possibly earlier stages of the foreclosure process - in the fourth quarter as several major lenders have halted foreclosure sales in some states while they review irregularities in foreclosure-processing documentation that has been called into question in recent weeks," said James J Saccacio, chief executive officer of RealtyTrac.

On Wednesday, all 50 states launched a joint investigation of the mortgage industry after widespread reports of mortgage industry officials signing foreclosure documents without knowing their contents. For the quarter, there were 930,437 foreclosure filings, an increase of 4 percent over the prior three months and 1 percent lower than a year ago. One in every 139 homes received a foreclosure filing in the third quarter.

Increasing expectations the Federal Reserve will pump more money into the US economy next month under a policy known as quantitative easing sent the dollar to new lows against the Chinese renminbi, Swiss franc and Australian dollar. It dropped to a 15-year low against the yen and an eight-month low against the euro.

The dollar index, which tracks a basket of currencies, reached its lowest level this year. A senior European policy-maker, who asked not to be named, said a further aggressive round of monetary easing by the US Federal Reserve would be "irresponsible" as it made US exports more competitive at the expense of its rivals. Simon Derrick, chief currency strategist for BNY Mellon, said: "In narrow terms, the US is winning the currency wars as a weaker dollar will help its economy, but it could damage the other big economic blocs of China, Japan and Europe."

However, turbulence was contained in the currency markets, as equities are benefiting from expectations of more QE. Investors hope that the fresh flood of money will find its way into stocks. The QE factor and the strong start to the US earnings season propelled the FTSE All World Index to highs last seen around the time of the collapse of Lehman Brothers in September 2008. This index has risen 20 per cent since the start of July.