International:
France's Sarkozy raises prospect of Iran airstrikes
In his first major foreign policy speech, French president says diplomatic push by world's powers to rein in Tehran's nuclear program is only alternative to 'Iranian bomb or bombing of Iran' . Details

Bush Applauds Iraq Officials on Benchmark Progress
President Bush congratulated key Iraqi government officials on their reaching an agreement this weekend on political issues seen as crucial to ending sectarian violence there.

China Roars in Latin America; U.S. Not Listening China may be the powerhouse of Asia. But it now wants to become a power in Latin America, a region over which it has been steadily expanding its economic and political influence.

The Asian economic tiger is aggressively making inroads in South America, Central America, and the Caribbean as it seeks the resources to feed its super-heated economy. Some critics wonder if China's involvement will supplant the United States' near-hegemonic role in terms of trade and finance.

China's economy continues to grow at a dizzying speed - at rates of about 10 percent per annum over the past several years. With that enormous growth - typically three times U.S. GDP rates - the Chinese economy is in a global frenzy seeking raw materials to keep the juggernaut moving. Read the details here.

National: Bush: Gonzales' resignation: 'good name dragged through the mud' President Bush on Monday said he reluctantly accepted the resignation of Attorney General Alberto Gonzales, whose "good name was dragged through the mud for political reasons."

Alberto Gonzales and his wife, Rebecca, have lunch with President and Laura Bush at the Bush ranch Sunday.

After months of standing by his top prosecutor and "close friend," Bush spoke briefly in Texas to praise Gonzales, saying the attorney general endured "unfair treatment that has created harmful distraction at the Justice Department."

Bush said it's "sad that we live in a time when a talented and honorable person" is impeded "from doing important work." More here.

US could be heading for recession Former US Treasury Secretary Larry Summers warned that the United States may be heading into recession as the biggest victim to date of the sub-prime mortgage debacle was humiliatingly sold for a token sum in Germany.

Traders are braced for another week of turmoil after the near breakdown of America's $2,200bn (£1,100bn) market for commercial paper.

"It would be far too premature to judge this crisis over," Mr Summers said. "I would say the risks of recession are now greater than they've been any time since the period in the aftermath of 9/11." More

Reid: "This Resignation Is Not The End Of The Story" "Alberto Gonzales was never the right man for this job. He lacked independence, he lacked judgment, and he lacked the spine to say no to Karl Rove," said Sen. Majority Leader Harry Reid (D-Nev.), referring to the belief among many Democrats that political strategist Rove engineered the ouster of the U.S. attorneys to make room for appointees more loyal to Bush.

"This resignation is not the end of the story. Congress must get to the bottom of this mess and follow the facts where they lead, into the White House." Read the entire article here.

In Other News… “Child fighters, once a rare presence on Iraq’s battlefields, are playing a significant and growing role in kidnappings, killings and roadside bombings in the country, U.S. military officials say. Boys, some as young as 11, now outnumber foreign fighters at U.S. detention camps in Iraq.”

In his first major foreign policy address, French President Nicholas Sarkozy called for a timetable to withdraw foreign troops from Iraq. “The Iraq tragedy cannot leave us indifferent. France was, thanks to Jacques Chirac, and remains hostile to this war,” said Sarkozy.

After first claiming he did not want Congress to set a timetable, Sen. John Warner (R-VA) suggested on Sunday that he may support Democratic legislation ordering a withdrawal. “I’m going to have to evaluate it,” Warner said. “I’m going to have to evaluate it,” Warner said. “I don’t say that as a threat, but I say that is an option we all have to consider.”

From The Right: Armstrong Williams: Economic Tsunami "At the beginning of the year there were concerns about the fallout from the debacle in the sub prime real estate market. This was first evidenced with the collapse of New Century Financial, which was at that time the nation?s second largest sub prime lender. At first blush, people felt that the sub prime issue was contained to the sub prime arena. How wrong we have been."

From The Left: William Rivers Pitt: Burning the Law in a Riot of Treason "The departure of Alberto Gonzales from the Attorney General's Office brings America to a place of definitions, and hanging in the balance is the very idea of the nation itself.

Quote Of The Day: “Gonzales’ legacy is so resoundingly awful that one can’t imagine which of his failures and transgressions his eventual obituary writers and future historians will highlight.” ~Michael Tomasky writes in “Sinking ship leaves rat”

(Sources: AP, Reuters, DrudgeReport, CNN, FOXNews, ThinkProgress, NYT, TownHall, YNetNews, Guardian, NewsMax, TruthOut, LATimes, Forbes, thecarpetbaggerreport, Telegraph, Breitbart, WashingtonPost)