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European leaders are drawing up a solution to the EU's fiscal crisis that would hand sovereignty over the budgets and fiscal policies of eurozone states to Germany in return for the pooling of national debt and banking liabilities. Brussels, France, Spain and Germany all support a federalized eurozone.

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Erik Prince, founder of Blackwater (now Xe Services), the world’s most notorious private military contractor, is discreetly training an 800-man army capable of defending infrastructure, suppressing rebellions and battling regional state enemies for the UAE. (more)

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The House committee votes 62-2 to block the White House from allowing the UAE to acquire six major US ports At the same time, however, Senate Republicans handed the president a victory by approving a plan to allow Bush to spy without warrants The New York Times says "rebellion" is in the air, but that's mostly because of the ports The spying program, although under some Senate control, is basically a win for Bush.

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