1. The Washington Post reports Unemployment Filings Reach 26-Year High.

   The number of people filing for unemployment benefits hit a 26-year high last week, as the deepening recession forced more employers to cut jobs.

   First-time claims for unemployment rose 5.4 percent, to 586,000 for the week ending Dec. 20, the Labor Department reported this morning. The last time claims were that high was Nov. 27, 1982. The four-week moving average, which is a less volatile indicator, rose to 558,000 from 544,250, also a 26-year high.

   Orders for durable goods, such as appliances and televisions, dropped 1 percent to $186.9 billion, the U.S. Census Bureau said today. It was the fourth consecutive monthly drop but a much smaller decline than the 8.4 percent drop in October, thanks largely to orders for defense-related goods.

   I sure am glad to see the Military-Industrial-Complex is still trundling along.

2. The LA Times reports the Obama economic team tries to allay worries about stimulus plan. Vice President-elect Joe Biden met with seven economic advisors in Washington in an effort to “refine plans for a massive stimulus proposal, promising the money would not go toward dubious pork-barrel projects.” The Obama administration’s stimulus plan would cost as much as $775 billion over two years.

   Transition team advisors described plans to shore up decaying bridges, roads and schools that have long been neglected — part of an effort to build a broad public consensus and win a swift victory in Congress. Obama’s team hopes the president-elect signs a stimulus bill soon after he is sworn in Jan. 20.

   “It’s important for the American taxpayer to know that . . . this is not going to be politics as usual,” Biden told reporters. “And we will not tolerate business as usual in Washington.”

   Biden singled out special-interest projects. “There will be — I will say it again — there will be no earmarks in this economic recovery plan,” he said.

Four at Four continues with an update on Afghanistan and Iraq, and an uptick in tourism on the West Bank.

1. The NY Times reports Arrests for shoplifting soar as the economy dips.

   Police departments across the country say that shoplifting arrests are 10 percent to 20 percent higher this year than last. The problem is probably even greater than arrest records indicate since shoplifters are often banned from stores rather than arrested.

   Much of the increase has come from first-time offenders… making rash decisions in a pinch, the authorities say. But the ease with which stolen goods can be sold on the Internet has meant a bigger role for organized crime rings, which also engage in receipt fraud, fake price tagging and gift card schemes, the police and security experts say.

   Meanwhile, the Washington Post reports November sales of existing and new Homes fall.

   Sales of existing homes fell 8.6 percent to a seasonally adjusted 4.49 million units in November compared with October. Sales were down 10.6 percent compared with the same period a year ago, according to the data from the National Association of Realtors.

   Median home prices fell 13.2 percent, to $208,800.

   The drop in existing-home prices is the largest since the Realtors began collecting data in 1968 and likely the largest decline since the Great Depression.

Four at Four continues with news of Afghanistan and Obama, Iraq and the British withdrawal, and IRS audits (and income) are down.

1. McClatchy Newspapers report War crimes trials are unlikely for Bush officials.

   Emboldened by a Democratic win of the White House, civil libertarians and human rights groups want the incoming Obama administration to investigate whether the Bush administration committed war crimes. They don’t just want low-level CIA interrogators, either. They want President George W. Bush on down.

   In the past eight years, administration critics have demanded that top officials be held accountable for a host of expansive assertions of executive powers from eavesdropping without warrants to detaining suspected enemy combatants indefinitely at the Guantanamo Bay military prison. A recent bipartisan Senate report on how Bush policies led to the abuse of detainees has fueled calls for a criminal investigation.

   But even some who believe top officials broke the law don’t favor criminal prosecutions. The charges would be too difficult legally and politically to succeed.

   Without wider support, the campaign to haul top administration officials before an American court is likely to stall.

   In the end, Bush administration critics might have more success by digging out the truth about what happened and who was responsible, rather than assigning criminal liability, and letting the court of public opinion issue the verdicts, many say.

   Our job is to change that outcome. The court of public opinion is not punishment, it is not getting invited to speaking engagements. By leaving their judgement to public opinion, we do nothing to stop the disease.

Four at Four continues an update on the shoe-thrower, drone attacks in Pakistan, and the EPA breaking the law.

1. The Washington Post reports Advocates for action on global warming chosen as Obama’s top science advisers. “The appointments of Harvard University physicist John Holdren as presidential science adviser and Oregon State University marine biologist Jane Lubchenco as head of the National Oceanic and Atmospheric Administration, which will be announced tomorrow, dismayed conservatives but heartened environmentalists and researchers.”

   “Holdren and Lubchenco have argued repeatedly for a mandatory limit on greenhouse gas emissions to avert catastrophic climate change.”

2. The Guardian reports Bush shoe protester has been beaten, Iraqi judge says. “The Iraqi journalist who threw his shoes at George Bush was beaten afterwards and had bruises on his face, the investigating judge in the case said today… The reporter, Muntazer al-Zaidi, had bruises on his face and around his eyes, said the judge, Dhia al-Kinani said.”

   “Kinani said a complaint about Zaidi’s treatment had been filed on his behalf and court officials ‘will watch the footage to identify those who have beaten him … He was beaten and we filed a case for that. Zaidi did not raise a complaint and he can drop this case if he wants to.'”

3. The NY Times reports NATO takes further step to renew relations with Russia. “The secretary general of NATO had lunch on Friday with the Russian ambassador to the organization, beginning the ‘conditional and graduated re-engagement’ with Moscow that NATO foreign ministers approved earlier this month.” This is a “step toward more normal relations after the brief Georgian-Russian war in August.”

4. The Oregonian reports the Downturn brings an upturn for Portland-area libraries.

   While the book-selling business might be struggling, book lending is thriving from Portland to Vancouver.

   Multnomah County Library, the busiest library system in the nation, saw a 7.3 percent jump in circulation from January — when some experts say the recession started — through November. During that same time last year, circulation rose just a half-percent. The library’s card registrations also have soared 12.8 percent this year after dipping 5.6 percent in 2007.

   Libraries across the metro area are reporting similar circulation and membership gains. It’s the same nationwide.

   This is one reason why we pay taxes to create institutions for the public good. Sharing the burden is more cost-effective than private ownership. Public libraries are one of the best things about the United States. Libraries are paid for by taxes — no taxes, no libraries.

1. The Guardian reports Iraqi journalist says sorry for throwing his shoes at Bush. It would seem the Iraqis have beat an apology out of Muntazer al-Zaidi.

   According to Yasin Majeed, Prime Minister Nouri al-Maliki’s media adviser, Zaidi wrote in a letter that his “big ugly act cannot be excused,” but begged for forgiveness. “”I remember in the summer of 2005, I interviewed your excellency and you told me, ‘Come in, this is your house.’ And so I appeal to your fatherly feelings to forgive me.”

   Zaidi’s family says he suffered a broken arm and other severe injuries after he was dragged away struggling and screaming by Iraqi security officers and US secret service agents. They say he is in hospital in the heavily fortified Green Zone in Baghdad. Zaidi was brought before a judge on Tuesday and admitted “aggression against a president,” a crime that could carry a 15-year sentence, officials said.

Four at Four continues Wall Street bonuses, late boomers going to Washington, hard times facing the solar power industry, and the space shuttle is for sale.

1. The Guardian reports the British military is to withdraw from Iraq by July. “Britain’s six-year occupation of southern Iraq will end by the summer, Gordon Brown announced today on a surprise visit to Baghdad.” The British will begin to redeploy in March. “Around 300 troops will remain to help with the training of Iraqi forces.”

   Meanwhile, The Guardian reports the Shoe-thrower is ‘too severely beaten’ for court appearance.

   Dargham al-Zaidi said he was told a judge had been to see his younger brother, Muntazer, at the jail where he has been held since throwing his shoes at the US president during a press conference in Baghdad on Sunday…

   The family went to Baghdad’s central criminal court expecting a hearing, Dhargham said, but were told the investigative judge had been to the prison and they should return in eight days. “That means my brother was severely beaten and they fear that his appearance could trigger anger at the court,” he said.

   And McClatchy Newspapers report U.S. troops confront Iraqis rallying in favor of shoe-thrower.

   University students rallied for Zaidi in Fallujah on Wednesday, drawing the attention of U.S. forces.

   Students raised their shoes and threw rocks at American soldiers, who reportedly opened fire above the crowd. Protesters said that indirect fire wounded one student, Zaid Salih. U.S. forces haven’t confirmed the account.

   “We demonstrated to express our support for Muntathar al Zaidi, but we were surprised with the entrance of the U.S. military,” said Ahmed Ismail, one of the protesters. “Unconsciously, we raised our shoes expressing our support for al Zaidi, but they attacked us.”

Four at Four continues with OPEC production cuts, Somali pirates, military preparations for the Obama inauguration, and killer asteroids.

1. Not much joy for the U.S. economy today:

   • The Washington Post reports the Federal Reserve slashes interest rate to historic low. “The Federal Reserve slashed a key short-term interest rate to effectively zero today… The move cuts the rate to the lowest it has been in the 54 years that records go back, and stunned market watchers who expected a more modest cut.”

   • Bloomberg News reports U.S. industrial production falls on autos. “Industrial production fell 0.6 percent, the third drop in four months,” according to the Federal Reserve. “Automakers slashed their assembly rate to the lowest level in more than 18 years.” Vehicle assembly is still one of the few things made in the U.S.A.

   • The NY Times reports Retail prices fell at record rate in November. “The Labor Department reported Tuesday morning that consumer prices fell for the second consecutive month, and at the fastest rate since the government began keeping track in 1947.”

   • Business Week reminds readers that the unemployment rate is Worse Than it Looks. “The official unemployment number captures only a slice of the total joblessness in the U.S. To be counted as unemployed in this statistic, a worker must not have a job, be currently available for work, and have actively sought employment within the last four weeks. In other words, a lot of the jobless are left out of the government’s tally.”

   • Blogger London Banker wrote last Friday that Deflation has become inevitable. “I’m now coming down on the side of deflation for a very simple reason: there is no longer any incentive to save or invest, and so debt and investment cannot increase much beyond current bloated levels.”

Four at Four continues an update on the shoe tossing Iraqi journalist, Afghanistan, and the shift to mass transit.

1. The hard times are just begining and 2009 is looking to be worse. States are running out of money to pay unemployment claims. The New York Times reports —

   30 States’ Unemployment Funds Running Out

   Thirty states are at risk of having the funds that pay out unemployment benefits become insolvent over the next few months, according to the National Association of State Workforce Agencies. Funds in two states, Indiana and Michigan, have already dried up, and both states are borrowing from the federal government to make payments to the unemployed…

   It is recommended that states keep at least one year of peak-level benefits in their trusts, but many have not, and already some states are far worse off than others.

   The situation puts states, many of them facing huge deficits, in an even tighter vise. As more people lose their jobs, the revenue base that the benefits are drawn from shrinks, making it harder to pay claims. Adding to that burden is that states will eventually have to pay back what they borrow…

   States that come up short have the option of borrowing from the federal government, but if the loan is not paid back within the federal fiscal year, 4.7 percent interest is accrued, which cuts into states’ general funds…

   As such, they are then forced to raise taxes or cut services, or both.

   We’ve created this mess by having low taxes in good times and not saving for bad times.

Four at Four continues with an update from Iraq, Obama and the left, and All aboard Obama.

1. The LA Times reports Bush considering use of Wall Street bailout funds to aid auto industry. George W. “Bush was considering using money from the Wall Street bailout fund to help prevent the collapse of U.S. automakers after White House-backed legislation to provide $14 billion in emergency loans died in the Senate, administration officials said today.”

   McClatchy Newspapers add “The White House reluctantly said Friday morning that it would consider using money from the controversial financial-rescue fund to help ailing automakers, just hours after late-night talks to rescue U.S. automakers from potential bankruptcy collapsed on Capitol Hill.”

   For weeks, lawmakers and the White House have battled over the use of money from the Troubled Asset Relief Program. That $700 billion Wall Street rescue fund, which Congress approved in October, was designed to help stabilize the banking sector, but congressional Democrats have wanted to tap it for a $14 billion bridge loan to Detroit’s Big Three automakers.

   The administration has insisted instead on using an energy-efficiency loan approved for carmakers, but the failure of Senate negotiations over a bailout for the automakers late Thursday night left the administration in a bind.

   Although it’s opposed using TARP funds, it now must choose between the lesser of two evils. Does it use money designated for the banking system to save automakers, setting a precedent for other industries to seek these funds? Or does it risk allowing carmakers to go bankrupt amid a deepening recession?

   And the NY Times reports Senate Republican blame the U.A.W. over bailout failure. “Senator Bob Corker, a Republican of Tennessee, suggested the fault lay with the U.A.W.’s president, Ron Gettelfinger, whose union declined to agree to allow wage concessions in 2009 as part of a deal.”

2. The NY Times reports North Korea nuclear talks collapse.

   A final push by President Bush to complete an agreement to dismantle North Korea’s nuclear weapons program collapsed Thursday, leaving the confrontation with one of the world’s most isolated and intractable nations to the administration of President-elect Barack Obama.

   Four days of negotiations in Beijing ended in an impasse after North Korea refused to agree to a system of verifying that it had ended all nuclear activity, which it had pledged to do. Among other things, the North Koreans have objected to allowing soil and air samples to be taken near nuclear facilities and sent overseas for testing.

   Another failure of the Bush administration. As I wrote back in September in North Korea restarts nuclear program — so much for Bush’s one foreign policy “triumph”.

Four at Four continues with the gutting of the Endangered Species Act, Bettie Page, and bonus video of a working model of the Antikythera machine.

1. I’m just going to sit back for a moment and savor this headline from the Washington Post —

   Nobel Physicist Chosen To Be Energy Secretary

   President-elect Barack Obama has chosen Steven Chu, a Nobel Prize-winning physicist who heads the Lawrence Berkeley National Laboratory, to be the next energy secretary…

   How cool is that? Could you even imagine a scientist being appointed to anything in the Bush administration?

   The appointments suggest that Obama plans to make a strong push for measures to combat global warming and programs to support energy innovation.

   What a hopeful change for our country’s future and I think it gets better.

   “Obama plans to name Carol M. Browner, Environmental Protection Agency administrator for eight years under President Bill Clinton, to fill a new White House post overseeing energy, environmental and climate policies” and he also has chosen “Lisa P. Jackson, recently appointed chief of staff to New Jersey Gov. Jon S. Corzine (D) and former head of the New Jersey Department of Environmental Protection, to head the EPA. Nancy Sutley, a deputy mayor of Los Angeles for energy and environment, will chair the White House Council on Environmental Quality.”

   The NY Times notes that Browner is “an acolyte of former Vice President Al Gore”. And Grist writes of the future EPA head, “Jackson went on to earn a master’s degree in chemical engineering from Princeton University in 1986, where she became inspired to use her engineering skills to prevent pollution… If confirmed, Jackson would be the first African American to head the EPA.”

   The Dot Earth blog at NY Times reports Chu thinks greater technological advances are needed to move the world away from fossil fuels. “I think political will is absolutely necessary. But we need new technologies,” Chu said.

   So far the reaction from Europe seems positive. The Guardian reports Obama’s new team raises hope for U.S. environment. Obama “has raised expectations of a strong drive to roll back George Bush’s policies on climate change and environmental protection. The choice of those with strong science and regulatory backgrounds was broadly welcomed in the environmental community.”

   While Spiegel laments that now Europe puts hurdles in Obama’s climate path. “Just as the US gets a new president who promises to reverse years of climate change neglect, American environmental experts worry that Europe’s resolve on climate change is weakening. [Germany’s Angela] Merkel’s recent about-face is especially alarming.”

   While European leaders are backing away from their climate commitments, The Guardian reports “Mexico has become one of the first developing countries to set a specific carbon reduction target, with a pledge to halve greenhouse gas emissions by 2050.” Go team North America!

   Maybe Obama’s choices are a portent of positive changes to come. Even the Bush administration’s Effort to relax pollution limits is dropped, according to the NY Times. “The Bush administration said Wednesday that it was abandoning its pursuit of two proposed regulations relaxing air-pollution standards for power plants, surprising both industry and environmentalists by ending its pursuit of one of the last remaining goals set out by Vice President Dick Cheney’s Energy Task Force in 2001.”

   I’ll believe it for real when Obama is sworn-in, but for now — yay!

Four at Four continues with Rumsfeld is responsible for abuse, oil demand down, and sabotaging a coal-burning power plant in the UK.