The decline in U.S. manufacturing deepened in December as demand for such products as cars, appliances and furniture reached the lowest level since at least 1948, signaling further cutbacks in factory jobs and production this year.

The Institute for Supply Management’s factory index fell to 32.4, below economists’ forecasts and the lowest level since 1980, from 36.2 the prior month. Readings less than 50 signal contraction. The group’s new-orders measure reached the lowest level on record and prices slid the most since 1949.

Deepening economic strife in the US could lead to civil unrest and violence that would require military intervention, warns a new report from the US Army War College.

“Widespread civil violence inside the United States would force the defense establishment to reorient priorities in extremis to defend basic domestic order and human security,” writes Nathan Freier, a 20-year Army veteran and visiting professor at the college.

What would happen if terrorists attacked the United States at the start of Barack Obama’s presidency?

The Bush administration doesn’t want to wait to find out. It’s planning to test the incoming government’s readiness next month in a series of tabletop exercises involving top Bush and Obama officials.

Concerned about the first handoff of presidential power since Sept. 11, 2001, the White House also is preparing briefing books and office manuals designed to bring the incoming Obama administration up to speed in a hurry.

As the holiday season commences, it’s worth taking stock of the last gift that President George W. Bush and the 110th Congress have left for U.S. taxpayers.

It’s a package of about $8.7 trillion dollars’ worth of potential taxpayer commitments for loans, guarantees and other bailout goodies for businesses and distressed homeowners.

The unrest that has gripped Greece this week is spilling into the rest of Europe, raising concerns that it could be a trigger for opponents of globalisation, disaffected youth and others outraged by economic turmoil.

Protesters in Spain, Denmark and Italy smashed shop windows, pelted police with bottles and attacked banks this week, while in France cars were set ablaze on Thursday outside the Greek consulate in Bordeaux, where protesters warned about a looming “insurrection”.

At least some of the protests were organised over the internet. One website Greek protesters use to update each other on the locations of clashes asserted there have been sympathy protests in nearly 20 countries.