World:
Chalabi back in action in Iraq
Ahmad Chalabi, the controversial, ubiquitous Iraqi politician and one-time Bush administration favorite, has re-emerged as a central figure in the latest U.S. strategy for Iraq. His latest job: To press Iraq's central government to use early security gains from the surge to deliver better electricity, health, education and local security services to Baghdad neighborhoods.

Anti-Iran rhetoric raises concerns at U.N.
The head of the U.N. nuclear watchdog said Sunday he had no evidence Iran was working actively to build nuclear weapons and expressed concern that escalating rhetoric from the U.S. could bring disaster.

"We have information that there has been maybe some studies about possible weaponization," said Mohamed ElBaradei, who leads the International Atomic Energy Agency. "That's why we have said that we cannot give Iran a pass right now, because there is still a lot of question marks."

Al-Qaida angry at Al-Jazeera on bin Laden tape
Al-Qaida sympathizers have unleashed a torrent of anger against Al-Jazeera television, accusing it of misrepresenting Osama bin Laden's latest audiotape by airing excerpts in which he criticizes mistakes by insurgents in Iraq.

Users of a leading Islamic militant Web forum posted thousands of insults against the pan-Arab station for focusing on excerpts in which bin Laden criticizes insurgents, including his followers. Analysts said the reaction highlighted militants' surprise at bin Laden's words, and their dismay at the deep divisions among al-Qaida and other Iraqi militants that he appeared to be trying to heal.

"It's not about Al-Jazeera, it's about their shock from bin Laden," said Diaa Rashwan, an Egyptian expert on Islamic militant groups. "For the first time, bin Laden, who used to be the spiritual leader who gives guidance, became a critic of al-Qaida and is confessing mistakes. This is unusual." Read the details here...

Dollar Hits New Low on Fed Speculation
The dollar skidded to fresh record lows on speculation that U.S. will cut interest rates again as the post G-7 dollar sell-off came into full swing.

The greenback fell to a record low against the euro Friday at $1.4393, according to Interbank foreign-exchange rates from Dow Jones almost half a cent below its last record low of $1.4348, set Monday.

Oil Rises to Record Above $91 on Supply Drop, Iran Sanctions
Crude oil rose to a record above $91 a barrel in New York on an unexpected drop in U.S. stockpiles and concern that supply from the Middle East may be disrupted.

Inventories last week fell 5.29 million barrels to 316.6 million, the lowest since January, the U.S. Energy Department said. New U.S. sanctions against Iran, warnings of a Turkish assault on Kurdish militants in Iraq and a falling dollar helped push prices higher. Brent futures in London reached a record. Get depressed by clicking here...

US, Russia at impasse on missile defense
The United States and Russia hit an impasse on missile defense in Europe Thursday with the US defense secretary saying Washington has gone as far as it can to placate Moscow.

US Defense Secretary Robert Gates' comments came after Moscow rejected US concessions on its plans for missile interceptors in Poland and a radar in the Czech Republic, which included a delay in making them operational until an Iranian missile threat is proven.

"I guess my view is I think we've leaned about as far forward as we can. We've offered a lot. And my view is, now I want to see some movement on their part," Gates told reporters as he flew back from Europe.

He said the US proposals "represent a very forward-leaning posture in terms of partnering with the Russians."

"And I think the question is whether the Russians are serious about partnering with us, or whether this is merely a pose to try and stop us from going forward with the Czech Republic and Poland," he said. Read on...

National:
FBI Warns Again Of Shoe Bomb Danger (again)
The joint FBI-Homeland Security bulletin, obtained by CBS News today, bluntly warns that terrorists are still working to use "modified footwear as a concealment method for explosive devices,"

CBS News correspondent Bob Orr reports. The alert follows the discovery of bomb detonators - expertly hidden in the hollowed-out soles of this pair of shoes - found aboard a European bus last month. Intelligence officials say the shoes were not being worn at the time, but instead were being used, as the document says, "to smuggle electric blasting caps across international borders for use in a terrorist attack." Details

Obama fundraiser defects to Clinton
A longtime Democratic fundraiser has abandoned Barack Obama's campaign to help rival Hillary Rodham Clinton win the party's presidential nomination.

Bob Farmer, who was a top fundraiser for several past Democratic presidential candidates, had served on Obama's national finance committee. Get more info here...

Thousands call for swift end to Iraq war
Thousands of people called for a swift end to the war in Iraq as they marched through downtown on Saturday, chanting and carrying signs that read: "Wall Street Gets Rich, Iraqis and GIs Die" or "Drop Tuition Not Bombs."

In Other News...
CAUTION — Cheney going hunting this weekend. The Poughkeepsie Journal in New York reports that “Vice President Dick Cheney is coming to Dutchess County again to go hunting.” On Monday, Cheney is “expected to leave Poughkeepsie and head to the Clove Valley Rod & Gun Club.” [No word on whether the Vice President will be drinking beforehand this time.]

The White House has agreed to let Senate Judiciary Committee leaders Patrick Leahy (D-VT) and Arlen Specter (R-PA) "view the legal memos underpinning the administration's warrantless surveillance program" so they can consider legislation that would give telecommunications companies immunity from privacy lawsuits.

French president walks out of 60 MINUTES interview...

Former Sen. Fred Thompson (R-TN) said he doesn't share Dick Cheney's views of executive power. "No, I think the constitution in times of war, especially, is very definitive about that," he said. "[I]t's divided power in the constitution. Our founding fathers divided that up. ... So no one branch of the government can misuse power."

"House Democratic leaders" are "privately surveying their members" to determine "support for a criminal contempt resolution against White House Chief of Staff Joshua Bolten and former White House Counsel Harriet Miers for shunning congressional subpoenas in the U.S. attorney investigation," which could happen "as ealy as next week."

International human rights groups have filed a lawsuit in France against former Defense Secretary Donald Rumsfeld for allowing torture at detention centers in Iraq and Guantanamo Bay. The groups say that Rumsfeld should be detained when he visits France on Friday for authorizing human rights abuses.

During a tour of the California disaster area Thursday, President Bush couldn't resist taking a shot at Louisiana Gov. Kathleen Blanco, blaming her for Katrina. "It makes a significant difference when you have somebody in the statehouse willing to take the lead," Bush said of California Gov. Arnold Schwarzenegger.

The House last week voted 265 to 142 to pass a revised SCHIP bill that sought to address concerns of conservative lawmakers. But two fewer Republicans voted for the new version. The vote tally "fell seven votes shy of the 272 needed for a veto-proof two-thirds majority."

From The Right: William F. Buckley: Impeach Bush If ours were a form of government patterned after that of the Europeans, Bush would probably have been replaced as leader of his party. But the majority of the American people still think of him as a man of good will and very stout heart who is pursuing his duties as he sees them...

From The Left: Matthew Lee: US Ordering Reluctant Diplomats to Iraq Matthew Lee, reporting for the Associated Press, writes that "The State Department will begin ordering diplomats to serve in Iraq because of a lack of volunteers to work at the US Embassy in Baghdad, the first such large-scale call-up since the Vietnam War."

Quote Of The Day: "A poll released yesterday by the Associated Press made it official: Americans are more likely to believe in ghosts (34 percent) than to believe that President Bush is doing a good job with the war in Iraq (29 percent)." -USA Today

(Sources: AP, Bloomberg, CBSNews, Breitbart, PoughkeepsieJournal, CNBC, BostonHerald, WashingtonPost, ABCNews, Politico, Reuters, Times-Picayune, McClatchy, USAToday, TownHall, TruthOut)