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Initial claims for jobless benefits rose by 19,000 to 373,000 in the week that ended Feb. 23, the Labor Department said Thursday in its weekly report. Economists were only expecting an increase of 4,000.

“That move back up to 373,000 in claims keeps the uptrending claims intact, and suggests the labor market is deteriorating and the risk of recession continues to rise as we get further signs of market deterioration,” said Adam Boyton, currency strategist for Deutsche Bank in New York.

After the data, the euro climbed to $1.5155, an all-time high against the dollar, while the dollar fell against the Swiss franc to 1.0565 francs, also a record.

The dollar remains under serious pressure heading into the second day of testimony on Capitol Hill Thursday by Federal Reserve Chairman Ben Bernanke.

Gold for April delivery gained $2.30 at $963.30 an ounce on the New York Mercantile Exchange.

“The recent string of U.S. data has been appalling and this is putting significant pressure on the dollar and supporting gold,” said Mark O’Byrne, executive director at Gold and Silver Investments Ltd., in a note.

On Wednesday, gold rose $12.10, or 1.3%, to end at $961.0 an ounce. Earlier in that session, the contract hit a record $967.70 an ounce.

Weakness in the U.S. dollar boosted gold’s investment appeal. Gold, like many commodities, is denominated in dollars, and a lower U.S. currency makes it more affordable in other currencies.

At the heart of the record-setting bid is the Suntory Mermaid II, a three-ton catamaran made of recycled aluminum alloy that turns wave energy into thrust. Two fins mounted side by side beneath the bow move up and down with the incoming waves and generate dolphin-like kicks that propel the boat forward. “Waves are a negative factor for a ship—they slow it down,” says Yutaka Terao, an engineering professor at Tokai University in Japan who designed the boat’s propulsion system. “But the Suntory can transform wave energy into propulsive power regardless of where the wave comes from.”

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QuantumSphere Inc. says it has perfected the manufacture of highly reactive catalytic nanoparticle coatings that could up the efficiency of electrolysis, the technique that generates hydrogen from water. Moreover, the coatings could also eliminate the need for expensive metals like platinum in hydrogen fuel cells.

Boasting 1,000 times the surface area of traditional materials, the coatings can be used to retrofit existing electrolysers to increase their efficiency to 85 percent–exceeding the Department of Energy’s goal for 2010 by 10 percent. The scheme holds the promise of 96 percent efficiency by the time cars powered by hydrogen fuel cells hit automobile showrooms, according to the Santa Ana, Calif., company.

“Instead of switching 170,000 gas stations over to hydrogen, using our electrodes could enable consumers to make their own hydrogen, either in the garage or right on the vehicle,” said Kevin Maloney, president, chief executive officer and co-founder of QuantumSphere. “Our nanoparticle-coated electrodes make electrolysers efficient enough to provide hydrogen on demand from a tank of distilled water in your car.”

Electric Reliability Council of Texas (ERCOT) said a decline in wind energy production in west Texas occurred at the same time evening electric demand was building as colder temperatures moved into the state.

The grid operator went directly to the second stage of an emergency plan at 6:41 PM CST (0041 GMT), ERCOT said in a statement.

System operators curtailed power to interruptible customers to shave 1,100 megawatts of demand within 10 minutes, ERCOT said. Interruptible customers are generally large industrial customers who are paid to reduce power use when emergencies occur.

No other customers lost power during the emergency, ERCOT said. Interruptible customers were restored in about 90 minutes and the emergency was over in three hours.

ERCOT said the grid’s frequency dropped suddenly when wind production fell from more than 1,700 megawatts, before the event, to 300 MW when the emergency was declared.

In addition, ERCOT said multiple power suppliers fell below the amount of power they were scheduled to produce on Tuesday. That, coupled with the loss of wind generated in West Texas, created problems moving power to the west from North Texas.

ERCOT declares a stage 1 emergency when power reserves fall below 2,300 MW. A stage 2 emergency is called when reserves fall below 1,750 MW.

At the time of the emergency, ERCOT demand increased from 31,200 MW to a peak of 35,612 MW, about half the total generating capacity in the region, according to the agency’s Web site.

Texas produces the most wind power of any state and the number of wind farms is expected to increase dramatically as new transmission lines are built to transfer power from the western half of the state to more populated areas in the north.

Commenting on reports that the United States military transport aviation is used for shipping narcotics out of Afghanistan, the Russian envoy said there was no smoke without fire.

“If such actions do take place they cannot be undertaken without contact with Afghans, and if one Afghan man knows this, at least a half of Afghanistan will know about this sooner or later,” Kabulov told Vesti, Russia’s 24-hour news channel. “That is why I think this is possible, but cannot prove it.”

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When Russia backed the U.S.-led invasion of Afghanistan to crush the Taliban and Al Qaeda in the post-9/11 scenario, the last thing it expected to happen was that drug trafficking from Afghanistan would assume gargantuan proportions under the U.S. military. Since 2001, poppy fields, once banned by the Taliban, have mushroomed again. According to the United Nations Office on Drugs and Crime, Afghanistan produced 8,200 tonnes of opium last year, enough to make 93 per cent of the world’s heroin supply.

The U.S.-led North Atlantic Treaty Organisation [NATO] forces in the country have not only failed to eliminate the terrorist threat from the Taliban, but also presided over a spectacular rise in opium production. Russia’s Foreign Minister Sergei Lavrov said Afghanistan was on the brink of becoming a “narco state”.

Narco business has emerged as virtually the only economy of Afghanistan and is valued at some $10 billion a year. Opium trade is estimated by the U.N. to be equivalent to 53 per cent of the country’s official economy and is helping to finance the Taliban.

“Unfortunately, they [NATO] are doing nothing to reduce the narcotic threat from Afghanistan even a tiny bit,” Putin angrily remarked three years ago. He accused the coalition forces of “sitting back and watching caravans haul drugs across Afghanistan to the former Soviet Union and Europe.” As time went by, Russian suspicions regarding the U.S. role in the rise of a narco state in Afghanistan grew deeper, especially after reports from Iraq said that the cultivation of opium poppies was spreading rapidly there too.

“The Americans are working hard to keep narco business flourishing in both countries,” says Mikhail Khazin, president of the consultancy firm Niakon. “They consistently destroy the local infrastructure, pushing the local population to look for illegal means of subsistence. And the CIA [Central Intelligence Agency] provides protection to drug trafficking.”

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Now Russia has joined the fray accusing the U.S. military of involvement in the heroin trafficking from Afghanistan to Europe. The Vesti channel’s report from Afghanistan said that drugs from Afghanistan were hauled by American transport aircraft to the U.S. airbases Ganci in Kyrgyzstan and Incirlik in Turkey.

The Ganci Air Force base at the Manas international airport in Kyrgyzstan was set up in late 2001 as a staging post for military operations inside Afghanistan. The Kyrgyz government threatened to close the base after neighbouring Uzbekistan shut down a similar U.S. airbase on its territory in 2005, but relented after Washington agreed to make a one-off payment of $150 million in the form of an assistance package and to pay $15 million a year for the use of the base.

One of the best-informed Russian journalists on Central Asia, Arkady Dubnov, recently quoted anonymous Afghan sources as saying that “85 per cent of all drugs produced in southern and southeastern provinces are shipped abroad by U.S. aviation.”

A well-informed source in Afghanistan’s security services told the Russian journalist that the American military acquired drugs through local Afghan officials who dealt with field commanders in charge of drug production.

Writing in the Vremya Novostei daily, Dubnov claimed that the pro-Western administration of President Hamid Karzai, including his two brothers, Kajum Karzai and Akhmed Vali Karzai, are head-to-heels involved in the narcotics trade.

The article quoted a leading U.S. expert on Afghanistan, Barnett Rubin, as telling an anti-narcotics conference in Kabul last October that “drug dealers had infiltrated Afghani state structures to the extent where they could easily paralyse the work of the government if decision to arrest one of them was ever made.”

Former U.S. Ambassador to the U.N. Richard Holbrooke said in January that “government officials, including some with close ties to the presidency, are protecting the drug trade and profiting from it.”

In an article carried by Washington Post, the diplomat described the $1-billion-a-year U.S. counter-narcotics effort in Afghanistan as “the single most ineffective programme in the history of American foreign policy.”

The unprecedented concession was filed on November 9, and sealed to protect the plaintiff’s identify. It was obtained through individuals unrelated to the case.

The claim, one of 4,900 autism cases currently pending in Federal “Vaccine Court,” was conceded by US Assistant Attorney General Peter Keisler and other Justice Department officials, on behalf of the Department of Health and Human Services, the “defendant” in all Vaccine Court cases.

The child’s claim against the government — that mercury-containing vaccines were the cause of her autism — was supposed to be one of three “test cases” for the thimerosal-autism theory currently under consideration by a three-member panel of Special Masters, the presiding justices in Federal Claims Court.

Keisler wrote that medical personnel at the HHS Division of Vaccine Injury Compensation (DVIC) had reviewed the case and “concluded that compensation is appropriate.”

The doctors conceded that the child was healthy and developing normally until her 18-month well-baby visit, when she received vaccinations against nine different diseases all at once (two contained thimerosal).

Days later, the girl began spiraling downward into a cascade of illnesses and setbacks that, within months, presented as symptoms of autism, including: No response to verbal direction; loss of language skills; no eye contact; loss of “relatedness;” insomnia; incessant screaming; arching; and “watching the florescent lights repeatedly during examination.”

Seven months after vaccination, the patient was diagnosed by Dr. Andrew Zimmerman, a leading neurologist at the Kennedy Krieger Children’s Hospital Neurology Clinic, with “regressive encephalopathy (brain disease) with features consistent with autistic spectrum disorder, following normal development.” The girl also met the Diagnostic and Statistical Manual for Mental Disorders (DSM-IV) official criteria for autism.

In its written concession, the government said the child had a pre-existing mitochondrial disorder that was “aggravated” by her shots, and which ultimately resulted in an ASD diagnosis.

“The vaccinations received on July 19, 2000, significantly aggravated an underlying mitochondrial disorder,” the concession says, “which predisposed her to deficits in cellular energy metabolism, and manifested as a regressive encephalopathy with features of ASD.”

And you haven’t seen anything yet, some experts say.

Gasoline now costs an average of $3.15 a gallon, seven cents shy of the record set last May, according to AAA.

But with crude oil prices setting a new trading high of $102.08 a barrel on Wednesday, it’s only a matter of time before drivers see it hit another record at the pump.

Within a few weeks, gas could cost $3.50 a gallon and, by spring, the price could hit $4 in some locations, said Peter Beutel, an oil analyst at the consultancy Cameron Hanover.

The high cost of gas is helping fuel a surge in food prices. Higher transportation expenses, along with growing demand for agricultural exports from the United States and increasing need for corn-based ethanol for gas supplies, has sent commodity costs soaring.

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Though prices have been climbing for the last few years, consumers didn’t feel it as much in the past because their home values were soaring.

“But now, with housing prices having gone down, credit becoming tighter and prices of necessities like food and energy going up sharply, it’s created quite a squeeze on consumers’ disposable income,” said Maria Fiorini Ramirez, head of economic consulting firm MFR Inc.

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