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The agency pays Mr. Karzai for a variety of services, including helping to recruit an Afghan paramilitary force that operates at the C.I.A.’s direction in and around the southern city of Kandahar, Mr. Karzai’s home.

The financial ties and close working relationship between the intelligence agency and Mr. Karzai raise significant questions about America’s war strategy, which is currently under review at the White House.

The ties to Mr. Karzai have created deep divisions within the Obama administration. The critics say the ties complicate America’s increasingly tense relationship with President Hamid Karzai, who has struggled to build sustained popularity among Afghans and has long been portrayed by the Taliban as an American puppet. The C.I.A.’s practices also suggest that the United States is not doing everything in its power to stamp out the lucrative Afghan drug trade, a major source of revenue for the Taliban.

More broadly, some American officials argue that the reliance on Ahmed Wali Karzai, the most powerful figure in a large area of southern Afghanistan where the Taliban insurgency is strongest, undermines the American push to develop an effective central government that can maintain law and order and eventually allow the United States to withdraw.

“If we are going to conduct a population-centric strategy in Afghanistan, and we are perceived as backing thugs, then we are just undermining ourselves,” said Maj. Gen. Michael T. Flynn, the senior American military intelligence official in Afghanistan.

Ahmed Wali Karzai said in an interview that he cooperated with American civilian and military officials, but did not engage in the drug trade and did not receive payments from the C.I.A.

The relationship between Mr. Karzai and the C.I.A. is wide ranging, several American officials said. He helps the C.I.A. operate a paramilitary group, the Kandahar Strike Force, that is used for raids against suspected insurgents and terrorists. On at least one occasion, the strike force has been accused of mounting an unauthorized operation against an official of the Afghan government, the officials said.

Mr. Karzai is also paid for allowing the C.I.A. and American Special Operations troops to rent a large compound outside the city — the former home of Mullah Mohammed Omar, the Taliban’s founder. The same compound is also the base of the Kandahar Strike Force. “He’s our landlord,” a senior American official said, speaking on the condition of anonymity.

Mr. Karzai also helps the C.I.A. communicate with and sometimes meet with Afghans loyal to the Taliban. Mr. Karzai’s role as a go-between between the Americans and the Taliban is now regarded as valuable by those who support working with Mr. Karzai, as the Obama administration is placing a greater focus on encouraging Taliban leaders to change sides.

A C.I.A. spokesman declined to comment for this article.

“No intelligence organization worth the name would ever entertain these kind of allegations,” said Paul Gimigliano, the spokesman.

Some American officials said that the allegations of Mr. Karzai’s role in the drug trade were not conclusive.

“There’s no proof of Ahmed Wali Karzai’s involvement in drug trafficking, certainly nothing that would stand up in court,” said one American official familiar with the intelligence. “And you can’t ignore what the Afghan government has done for American counterterrorism efforts.”

At the start of the Afghan war, just after the 9/11 terrorist attacks in the United States, American officials paid warlords with questionable backgrounds to help topple the Taliban and maintain order with relatively few American troops committed to fight in the country. But as the Taliban has become resurgent and the war has intensified, Americans have increasingly viewed a strong and credible central government as crucial to turning back the Taliban’s advances.

Now, with more American lives on the line, the relationship with Mr. Karzai is setting off anger and frustration among American military officers and other officials in the Obama administration. They say that Mr. Karzai’s suspected role in the drug trade, as well as what they describe as the mafialike way that he lords over southern Afghanistan, makes him a malevolent force.

These military and political officials say the evidence, though largely circumstantial, suggests strongly that Mr. Karzai has enriched himself by helping the illegal trade in poppy and opium to flourish. The assessment of these military and senior officials in the Obama administration dovetails with that of senior officials in the Bush administration.

“Hundreds of millions of dollars in drug money are flowing through the southern region, and nothing happens in southern Afghanistan without the regional leadership knowing about it,” a senior American military officer in Kabul said. Like most of the officials in this article, he spoke on the condition of anonymity because of the secrecy of the information.

“If it looks like a duck, and it quacks like a duck, it’s probably a duck,” the American officer said of Mr. Karzai. “Our assumption is that he’s benefiting from the drug trade.”

American officials say that Afghanistan’s opium trade, the largest in the world, directly threatens the stability of the Afghan state, by providing a large percentage of the money the Taliban needs for its operations, and also by corrupting Afghan public officials to help the trade flourish.

The Obama administration has repeatedly vowed to crack down on the drug lords who are believed to permeate the highest levels of President Karzai’s administration. They have pressed him to move his brother out of southern Afghanistan, but he has so far refused to do so.

Other Western officials pointed to evidence that Ahmed Wali Karzai orchestrated the manufacture of hundreds of thousands of phony ballots for his brother’s re-election effort in August. He is also believed to have been responsible for setting up dozens of so-called ghost polling stations — existing only on paper — that were used to manufacture tens of thousands of phony ballots.

“The only way to clean up Chicago is to get rid of Capone,” General Flynn said.

In the interview in which he denied a role in the drug trade or taking money from the C.I.A., Ahmed Wali Karzai said he received regular payments from his brother, the president, for “expenses,” but said he did not know where the money came from. He has, among other things, introduced Americans to insurgents considering changing sides. And he has given the Americans intelligence, he said. But he said he was not compensated for that assistance.

“I don’t know anyone under the name of the C.I.A.,” Mr. Karzai said. “I have never received any money from any organization. I help, definitely. I help other Americans wherever I can. This is my duty as an Afghan.”

Mr. Karzai acknowledged that the C.I.A. and Special Operations troops stayed at Mullah Omar’s old compound. And he acknowledged that the Kandahar Strike Force was based there. But he said he had no involvement with them.

A former C.I.A. officer with experience in Afghanistan said the agency relied heavily on Ahmed Wali Karzai, and often based covert operatives at compounds he owned. Any connections Mr. Karzai might have had to the drug trade mattered little to C.I.A. officers focused on counterterrorism missions, the officer said.

“Virtually every significant Afghan figure has had brushes with the drug trade,” he said. “If you are looking for Mother Teresa, she doesn’t live in Afghanistan.”

The debate over Ahmed Wali Karzai, which began when President Obama took office in January, intensified in June, when the C.I.A.’s local paramilitary group, the Kandahar Strike Force, shot and killed Kandahar’s provincial police chief, Matiullah Qati, in a still-unexplained shootout at the office of a local prosecutor.

The circumstances surrounding Mr. Qati’s death remain shrouded in mystery. It is unclear, for instance, if any agency operatives were present — but officials say the firefight broke out when Mr. Qati tried to block the strike force from freeing the brother of a task force member who was being held in custody.

“Matiullah was in the wrong place at the wrong time,” Mr. Karzai said in the interview.

Counternarcotics officials have repeatedly expressed frustration over the unwillingness of senior policy makers in Washington to take action against Mr. Karzai — or even begin a serious investigation of the allegations against him. In fact, they say that while other Afghans accused of drug involvement are investigated and singled out for raids or even rendition to the United States, Mr. Karzai has seemed immune from similar scrutiny.

For years, first the Bush administration and then the Obama administration have said that the Taliban benefits from the drug trade, and the United States military has recently expanded its target list to include drug traffickers with ties to the insurgency. The military has generated a list of 50 top drug traffickers tied to the Taliban who can now be killed or captured.

Senior Afghan investigators say they know plenty about Mr. Karzai’s involvement in the drug business. In an interview in Kabul this year, a top former Afghan Interior Ministry official familiar with Afghan counternarcotics operations said that a major source of Mr. Karzai’s influence over the drug trade was his control over key bridges crossing the Helmand River on the route between the opium growing regions of Helmand Province and Kandahar.

The former Interior Ministry official said that Mr. Karzai was able to charge huge fees to drug traffickers to allow their drug-laden trucks to cross the bridges.

But the former officials said it was impossible for Afghan counternarcotics officials to investigate Mr. Karzai. “This government has become a factory for the production of Talibs because of corruption and injustice,” the former official said.

Some American counternarcotics officials have said they believe that Mr. Karzai has expanded his influence over the drug trade, thanks in part to American efforts to single out other drug lords.

In debriefing notes from Drug Enforcement Administration interviews in 2006 of Afghan informants obtained by The New York Times, one key informant said that Ahmed Wali Karzai had benefited from the American operation that lured Hajji Bashir Noorzai, a major Afghan drug lord during the time that the Taliban ruled Afghanistan, to New York in 2005. Mr. Noorzai was convicted on drug and conspiracy charges in New York in 2008, and was sentenced to life in prison this year.

Matthew Hoh, 36, a senior foreign service officer, wrote a four-page letter to Ambassador Nancy Powell, director general of the foreign service at the State Department, to express his “doubts and reservations about our current strategy and planned future strategy,” as first reported by the Washington Post today.

“To put simply, I fail to see the value or the worth in the continued U.S. casualties or expenditures of resources in support of the Afghan government in what is, truly, a 35-year-old civil war,” the former Marine wrote in the emotional letter.

Hoh spent six years in Iraq, where he served as a Marine Corps captain and then as a civilian for the Department of Defense.

Hoh told the Washington Post he decided to speak out publicly because “I want people in Iowa, people in Arkansas, people in Arizona, to call their congressman and say, ‘Listen, I don’t think this is right.'”

In a report, the human rights group says Israeli water restrictions discriminate against Palestinians in the occupied West Bank.

It says that in Gaza, Israel’s blockade has pushed the already ailing water and sewage system to “crisis point”.

Israel says the report is flawed and the Palestinians get more water than was agreed under the 1990s peace deal.

‘Basic need’

In the 112-page report, Amnesty says that on average Palestinian daily water consumption reaches 70 litres a day, compared with 300 litres for the Israelis.

It says that some Palestinians barely get 20 litres a day – the minimum recommended even in humanitarian emergencies.

While Israeli settlers in the West Bank enjoy lush gardens and swimming pools, Amnesty describes a series of Israeli measures it says are discriminating against Palestinians:

* Israel has “entirely appropriated the Palestinians’ share of the Jordan river” and uses 80% of a key shared aquifer

* West Bank Palestinians are not allowed to drill wells without Israeli permits, which are “often impossible” to obtain

* Rainwater harvesting cisterns are “often destroyed by the Israeli army”

* Israeli soldiers confiscated a water tanker from villagers who were trying to remain in land Israel had declared a “closed military area”

* An unnamed Israeli soldier says rooftop Palestinian household water tanks are “good for target practice”

* Much of the land cut off by the West Bank barrier is land with good access to a major aquifer

* Israeli military operations have damaged Palestinian water infrastructure, including $6m worth during the Cast Lead operation in Gaza last winter

* The Israeli-Egyptian blockade of Gaza has “exacerbated what was already a dire situation” by denying many building materials needed for water and sewage projects.

The report also noted that the Palestinian water authorities have been criticised for bad management, quoting one audit that described the sector as in “total chaos”.

“Water is a basic need and a right, but for many Palestinians obtaining even poor-quality, subsistence-level quantities of water has become a luxury that they can barely afford,” Amnesty’s Donatella Rovera said.

“The international exchange hall of crude, oil products and petrochemical goods of Iran was inaugurated. Our aim is to shift oil market trade focus in the region to the Kish Island,” said Economy Minister Shamseddin Hosseini at the inauguration ceremony, ISNA reported.

The bourse, based on the Gulf economic free zone island of Kish, has been planned for years but had faced repeated delays. The first phase of the exchange for trading oil products was inaugurated in February.

When plans were first mooted, some analysts speculated Iran might use it to undermine the importance of the U.S. dollar by pricing crude in euros or other currencies.

Betty said she had run away from home a week earlier after a violent argument with her mother. Shivering and sullen-faced, she vowed that she was not going to sleep by herself again behind the hedges downtown, where older homeless men and methamphetamine addicts might find her.

The boys were also runaways. But unlike them, Betty said, she had been reported missing to the police. That meant that if the boys let her stay overnight in their hidden tent encampment by the freeway, they risked being arrested for harboring a fugitive.

“We keep running into this,” said one of the boys, Clinton Anchors, 18. Over the past year, he said, he and five other teenagers living together on the streets had taken under their wings no fewer than 20 children — some as young as 12 — and taught them how to avoid predators and the police, survive the cold and find food.

…

Members of the group said they sometimes made money by picking parking meters or sitting in front of parking lots, pretending to be the attendant after the real one leaves. When things get really desperate, they said, they climb into public fountains to fish out coins late at night. On cold nights, they hide in public libraries or schools after closing time to sleep.

Many of the runaways said they had fled family conflicts or the strain of their parents’ alcohol or drug abuse. Others said they left simply because they did not want to go to school or live by their parents’ rules.

“I can survive fine out here,” Betty said as she brandished a switchblade she pulled from her dirty sweatshirt pocket. At a nearby picnic table was part of the world she and the others were trying to avoid: a man with swastikas tattooed on his neck and an older homeless woman with rotted teeth, holding a pit bull named Diablo.

And yet to his amazement and those following his story, Bernard continues living in the home with his ailing mother without any sign of an eviction notice or word from his lender, in this case JP Morgan Chase and then US Bank.

“I haven’t paid a dime,” Bernard told me, sounding gleeful over the phone.

…

There’s even a chance Bernard could get to stay in his home a lot longer. That’s because like hundreds of thousands of other homeowners in America these days, Bernard falls into what real estate experts call a shadow market, the growing backlog of foreclosures and bank-owned properties yet to reach real estate markets.

For various reasons, banks have slowed down the foreclosure process causing a reprieve for homeowners like Bernard while at the same time building a swell of foreclosed homes delayed from hitting the market. If they were to flood real estate markets at once, banks would suffer under a glut of inventory drawing down overall prices. So the banks have held back, in effect drawing out the nation’s recovery.

The shadow market today – those in distress or in some stage of foreclosure — represents roughly 14 percent of existing mortgages, says Rick Sharga, senior vice president of RealtyTrac, which compiles nationwide data on foreclosures.

A report due out Monday from the Government Accountability Office also shows that the FDA has never pulled a drug off the market due to a lack of required follow-up about its actual benefits — even when such information is more than a decade overdue.

When pressed about that policy, agency officials said they have no plans to get more aggressive.

The GAO says the FDA should do more to track whether drugs approved based on preliminary results actually have lived up to their promise.

The FDA responded that the report paints an overly negative picture of its so-called “accelerated approval” program, which is only used to approve drugs for the most serious diseases.

“Millions of patients with serious or life-threatening illnesses have had earlier access to new safe and effective treatments,” thanks to the program, the FDA said in its response to the report.

In 1992, the FDA began speeding up the approval of novel drugs based on so-called surrogate endpoints, or laboratory measures that suggest the drug will make real improvements in patient health. HIV drugs, for example, are cleared based on their virus-lowering power, a predictor of increased survival.

Drugmakers favor the program because it helps them get products to market sooner, without conducting long-term patient studies that can take years and cost hundreds of millions of dollars. A condition of quicker approvals is that drugmakers conduct follow-up studies to show the drug’s benefits actually panned out.

But the GAO report, a copy of which was obtained by The Associated Press, identified several drugs still on the market that never lived up to their initial promise. And in the 16 years that the FDA has used accelerated approval, it has never once pulled a drug off the market due to missing or unimpressive follow-up data.

“FDA has fallen far short of where it should be for patient safety,” said Sen. Charles Grassley, R-Iowa, who requested the investigation.

Of the 144 studies the FDA has required under the program since 1992, 64 percent have been completed and more than one-third are still pending, according to the GAO. Investigators said the FDA does not rigorously track whether companies are making progress on their required studies, although the agency is improving.