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In an essay posted on the People’s Bank of China’s website, Zhou Xiaochuan, the central bank’s governor, said the goal would be to create a reserve currency “that is disconnected from individual nations and is able to remain stable in the long run, thus removing the inherent deficiencies caused by using credit-based national currencies”.

Analysts said the proposal was an indication of Beijing’s fears that actions being taken to save the domestic US economy would have a negative impact on China.

“This is a clear sign that China, as the largest holder of US dollar financial assets, is concerned about the potential inflationary risk of the US Federal Reserve printing money,” said Qu Hongbin, chief China economist for HSBC.

Although Mr Zhou did not mention the US dollar, the essay gave a pointed critique of the current dollar-dominated monetary system.

“The outbreak of the [current] crisis and its spillover to the entire world reflected the inherent vulnerabilities and systemic risks in the existing international monetary system,” Mr Zhou wrote.

China has little choice but to hold the bulk of its $2,000bn of foreign exchange reserves in US dollars, and this is unlikely to change in the near future.

To replace the current system, Mr Zhou suggested expanding the role of special drawing rights, which were introduced by the IMF in 1969 to support the Bretton Woods fixed exchange rate regime but became less relevant once that collapsed in the 1970s.

Today, the value of SDRs is based on a basket of four currencies – the US dollar, yen, euro and sterling – and they are used largely as a unit of account by the IMF and some other international organisations.

China’s proposal would expand the basket of currencies forming the basis of SDR valuation to all major economies and set up a settlement system between SDRs and other currencies so they could be used in international trade and financial transactions.

Countries would entrust a portion of their SDR reserves to the IMF to manage collectively on their behalf and SDRs would gradually replace existing reserve currencies.

The claim that from 1992 until the end of the decade, Jovica Stanisic, head of Serbia’s murderous DB Secret Police, was regularly informing his CIA handlers of the thinking in Milosevic’s inner circle has shocked the region.

Stanisic is said to have loyally served his two masters for eight years. He is facing war crimes charges at the International Criminal Court at The Hague.

In the terrifying years of Yugoslavia’s internecine wars, he acted as the willing “muscle” behind Milosevic’s genocidal campaigns in Croatia, Kosovo and Bosnia, including Sebrenica.

According to the charges he faces, Stanisic was “part of a joint criminal enterprise that included former Serbian president Slobodan Milosevic and other Serbian politicians”.

Dermot Groome, The Hague’s chief prosecutor, has specifically accused him of sending in the Serb Scorpion and Red Beret death squads into the states seeking independence from Belgrade. Stanisic has pleaded not guilty.

Like in a Cold War spy thriller, Serbia’s secret police chief met his CIA handlers in safe houses, parks and boats on the river Sava to betray his master’s action plans. He provided, it is claimed, information on the whereabouts of Nato hostages, aided CIA operatives in their search for Muslim mass graves and helped the US set up secret bases in Bosnia to monitor the implementation of the 1995 Dayton peace accord.

This has raised awkward questions for Washington. With Stanisic providing chapter and verse of the genocidal slaughter of Croats, Bosnians and Albanians from the early 1990s, should President Clinton have cut a deal with Milosevic at Dayton, Ohio, ending the Bosnian war on such equitable terms for the Serbs? Or, using Stanisic’s evidence, should the Americans not have unmasked Milosevic and Radovan Karadzic, the then head of Republika Srpska, as genocidal war criminals and demanded their surrender?

From his prison cell at The Hague, Stanisic countered the charges facing him with an aide memoir portraying himself as “a person who had sought to moderate Milosevic and had done a great deal to moderate the crisis”.

In an unusual move, the CIA has submitted classified documents to the court that confirm Stanisic’s “undercover operative role in helping to bring peace to the region and aiding the agency’s work. He helped defuse some of the most explosive actions of the Bosnian war.”

In an interview with the Los Angeles Times, William Lofgren, his original CIA recruiter and handler, now retired, said: “Stanisic provided valuable information from Milosevic’s inner circle. But he never took money from the CIA, worked with the agency on operations or took steps that he would have considered a blatant betrayal of his boss.”

IOActive researchers have spent the past year testing Smart Grid devices for security vulnerabilities and have discovered a number of flaws that could allow hackers to access the network and cut power, according to Joshua Pennell, IOActive’s CEO. Smart Grid devices are small computers that are connected to the power grid, giving customers and power companies better control over the electricity they use. There are about 2 million of these devices currently deployed, but many more are expected to be added in coming years.

The researchers created a computer worm that could quickly spread among Smart Grid devices, many of which use wireless technology to communicate, according to Travis Goodspeed, an independent security consultant who worked with the team. “It spread from one meter to another and then it changed the text in the LCD screen to say ‘pwned’,” he said. Pwned is hacker-speak meaning “taken over.”

In the hands of a malicious hacker, this code could be used to cut power to Smart Grid devices that use a feature called “remote disconnect,” which allows power companies to cut a customer’s power via the network.

IOActive briefed the U.S. Department of Homeland Security on its findings Monday and is advising the utilities industry to better test the systems before deploying them in the real world.

News of IOActive’s research was first reported by CNN, ensuring that the security of the Smart Grid will get a lot of public attention as the U.S. moves forward with plans to add another 17 million of these devices over the next few years.

There are also concerns that some larger calibers, or those used by military-type weapons, could be banned, restricted or taxed more heavily.

One northern Warren County resident found out recently the government is paying attention to such ammunition sales.

West said a customer of his recently stocked up on .223-caliber rounds, a caliber often used in assault-style weapons. The customer bought 1,000 rounds a few months ago through a mail order company.

Shortly after the purchase, he received a visit from the U.S. Department of Homeland Security, whose interest was apparently piqued by a large-scale purchase of that caliber.

The latest bailout came as AIG admitted to having just posted the largest quarterly loss in American corporate history — some $61.7 billion. In the final three months of last year, the company lost more than $27 million every hour. That’s $465,000 a minute, a yearly income for a median American household every six seconds, roughly $7,750 a second. And all this happened at the end of eight straight years that America devoted to frantically chasing the shadow of a terrorist threat to no avail, eight years spent stopping every citizen at every airport to search every purse, bag, crotch and briefcase for juice boxes and explosive tubes of toothpaste. Yet in the end, our government had no mechanism for searching the balance sheets of companies that held life-or-death power over our society and was unable to spot holes in the national economy the size of Libya (whose entire GDP last year was smaller than AIG’s 2008 losses).

So it’s time to admit it: We’re fools, protagonists in a kind of gruesome comedy about the marriage of greed and stupidity. And the worst part about it is that we’re still in denial — we still think this is some kind of unfortunate accident, not something that was created by the group of psychopaths on Wall Street whom we allowed to gang-rape the American Dream. When Geithner announced the new $30 billion bailout, the party line was that poor AIG was just a victim of a lot of shitty luck — bad year for business, you know, what with the financial crisis and all. Edward Liddy, the company’s CEO, actually compared it to catching a cold: “The marketplace is a pretty crummy place to be right now,” he said. “When the world catches pneumonia, we get it too.” In a pathetic attempt at name-dropping, he even whined that AIG was being “consumed by the same issues that are driving house prices down and 401K statements down and Warren Buffet’s investment portfolio down.”

Liddy made AIG sound like an orphan begging in a soup line, hungry and sick from being left out in someone else’s financial weather. He conveniently forgot to mention that AIG had spent more than a decade systematically scheming to evade U.S. and international regulators, or that one of the causes of its “pneumonia” was making colossal, world-sinking $500 billion bets with money it didn’t have, in a toxic and completely unregulated derivatives market.

Nor did anyone mention that when AIG finally got up from its seat at the Wall Street casino, broke and busted in the afterdawn light, it owed money all over town — and that a huge chunk of your taxpayer dollars in this particular bailout scam will be going to pay off the other high rollers at its table. Or that this was a casino unique among all casinos, one where middle-class taxpayers cover the bets of billionaires.

People are pissed off about this financial crisis, and about this bailout, but they’re not pissed off enough. The reality is that the worldwide economic meltdown and the bailout that followed were together a kind of revolution, a coup d’état. They cemented and formalized a political trend that has been snowballing for decades: the gradual takeover of the government by a small class of connected insiders, who used money to control elections, buy influence and systematically weaken financial regulations.

The crisis was the coup de grâce: Given virtually free rein over the economy, these same insiders first wrecked the financial world, then cunningly granted themselves nearly unlimited emergency powers to clean up their own mess. And so the gambling-addict leaders of companies like AIG end up not penniless and in jail, but with an Alien-style death grip on the Treasury and the Federal Reserve — “our partners in the government,” as Liddy put it with a shockingly casual matter-of-factness after the most recent bailout.

When officers tracked down the suspect, a fourth officer was shot and was in critical condition Saturday night.

The three veteran officers killed were sergeants: Mark Dunakin, 40, of Tracy, a traffic officer with the department since 1991; Erv Romans, 43, of Danville, a 13-year veteran with the force; and Dan Sakai, 35, a nine-year veteran, police said.

Romans and Sakai were SWAT team members. It was the first time any sergeant in the department had been slain.

Officer John Hege, 41, of Concord, was on life support at Highland Hospital. A bullet grazed a fifth, unidentified officer. He was treated and released from the hospital.

“What it introduces is the problem of the currency to the extent that the Fed is buying what isn’t desired by foreign holders,” said Bill Gross, co-chief investment officer of Pacific Investment Management Co., in an interview on Bloomberg Television on March 19. “The Fed can keep interest rates where they want to keep them, at least for a 6- to 12- to 18-month period of time, but it will have consequences down the road.”

The U.S. currency weakened beyond $1.37 per euro this week for the first time since January as the central bank’s decision to increase its balance sheet by $1.15 trillion lowered yields, making American assets less attractive. The Norwegian krone and the New Zealand dollar rallied as the Fed’s move spurred advances in commodities.

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Treasury Yield

The yield on the benchmark 10-year Treasury note dropped the most since January 1962 on the day of the Fed’s announcement and fell 0.26 percentage point this week in its biggest decrease since December. At 2.63 percent, the yield was 0.34 percentage point lower than that of the comparable-maturity German bund. The gap widened 0.16 percentage point from a week earlier, making U.S. assets less attractive.

“We would by no means assume that the reaction to the Fed’s quantitative-easing announcement has run its course,” Credit Suisse Group AG currency strategists led by London-based Ray Farris wrote in a research note yesterday. “Fed purchases of Treasuries are likely to be quite problematic for the U.S. dollar, particularly given large foreign holdings of Treasuries and the loss of yield support for the dollar that Fed purchases have caused.”

When the power lines run east-west, that’s the way grazing cattle tend to line up, researchers led by Hynek Burda and Sabine Begall of the faculty of biology at the University of Duisburg-Essen in Germany report in Tuesday’s edition of Proceedings of the National Academy of Sciences.

They also found that cows and deer grazing under northeast-southwest or northwest-southeast power lines faced in random directions.

The research team studied cows and deer using satellite and aerial images.

In their report last August, Burda and colleagues suggested the north-south orientation was in response to the Earth’s magnetic field.

The new study adds weight to the animals responding to magnetic effects, since power lines also produce a magnetic field. And the effect was most noticeable close to the power lines, declining as the magnetic field of the electric lines was reduced by distance.

Wind and weather can also affect which ways cows choose to face, but without such factors about two-thirds of them tended to align north-south when away from power lines.

The Earth’s magnetic field is thought to be a factor in how birds navigate, and other animals also are believed to respond to it.

In addition to Burda and Begall, the research team included Julia Neef of the University of Duisburg-Essen, Jaroslav Cerveny of the Czech University of Life Sciences and Pavel Nemec of Charles University in Prague, Czech Republic.