Inadequate

Yesterday, the Office of Management Budget projected a $296 billion federal deficit for fiscal year 2006. President Bush held a press conference arguing that this announcement is a vindication of his economic policies: "The projected budget deficit over -- of over $420 billion is now assumed to be $296 billion. See, what happens is when you grow the economy by cutting taxes, more tax revenues come into the Treasury, and that's what we're seeing here." But in reality, the projected 2006 deficit would be the fourth largest in American history. In fact, the top four largest deficits have all been under Bush's tenure; the highest was $413 billion in 2004. When Bush came into office, he inherited a surplus of $284 billion. At that time, the administration predicted a $516 billion surplus for 2006. The fact that Bush now considers a $296 billion deficit an occasion to celebrate shows how far we've fallen.

Putin fires at Cheney. During an interview with NBC, Russian President Vladimir Putin called Vice President Cheney’s recent criticisms of Russia “an unsuccessful hunting shot."

Israelis Attack Just 10 Miles From Beirut The Associated Press
Israeli warplanes and gunboats struck a Palestinian guerrilla base 10 miles south of Beirut late Wednesday, Lebanese security officials said, in the closest raid to the Lebanese capital since fighting erupted in southern Lebanon after guerrillas captured two Israeli soldiers.

Warplanes flew over the Naameh base in the hills overlooking the Mediterranean, about 10 miles (16 kilometers) south of Beirut. Gunboats sailed facing the position, and explosions rang out across the area. The base is run by the Syrian-backed Popular Front for the Liberation of Palestine-General Command and was a frequent target of Israeli attacks in the past. The latest attack comes after Israeli warplanes pounded more than 30 targets in southern Lebanon and Israeli leaders promised Lebanon a painful response for the capture of the soldiers. There was no immediate word on casualties at Naameh. Hezbollah said its guerrillas destroyed two Israeli tanks that attempted to cross the border into Lebanon on two different occasions Wednesday.

Israeli ground troops entered southern Lebanon on Wednesday to search for two soldiers captured earlier in the day by Hezbollah guerrillas, Israeli government officials said.
http://www.foxnews.com/story/0,2933,203237,00.html "Mid East Explodes"

Breaking as of midnight...Wed. http://www.msnbc.msn.com/id/13823680/

Meanwhile In Iraq...
Saleh al-Mutlak, a leading Sunni legislator, said sectarian rivalries are tearing apart the seven-week-old Maliki government. "This is a hopeless government. It has not done one good thing since it started, and things are getting worse, not better," he said. "The parliament cannot reach practical solutions because their minds are concerned only with their sect and not the interests of the nation. It looks like this government is going to collapse very soon." The country’s largest Sunni Arab bloc only recently ended its 10-day boycott of parliament. Sunni legislators had suspended their participation on July 2 after a colleague, Tayseer Najah al-Mashhadani, was kidnapped. The Iraqi police force is marked by rampant brutality and corruption, undermining public confidence in the government. The inability of the Iraqi forces to "stand up" poses major problems to the Bush strategy. A Government Accountability Office (GAO) report released yesterday asserts that the Bush administration's National Strategy for Victory In Iraq "is inadequate and was poorly planned, backing up some politicians' charges that a prolonged stay in the country is only fueling sectarian violence." The GAO report recommends that the National Security Council outline a comprehensive strategy for Iraq with "milestones" and "metrics" so Congress can assess the progress and the problems on the ground. "We still don't know how long we're going to be there," GAO chief David Walker said. While in Baghdad, Rumsfeld refused to entertain a possible drawdown. "We haven't gotten to that point," he said.

(sources, Washington Post, NY Times, American Progress.org, WhiteHouse Website, FoxNews and more)