The World

1 | Iran Nuclear Negotiations The Obama Administration is trying a new tack in its discussions with Tehran, calling on other nations to exert their influence to compel Iran to give up its suspected pursuit of nuclear weapons. In a letter to Russian President Dmitry Medvedev, Obama asked for Moscow’s help in dealing with Tehran, although the White House denied offering to curtail U.S. plans for a missile-defense shield in Eastern Europe as a quid pro quo. The Administration has also asked Syria and China to pressure Iran, but the diplomatic focus remains on Russia, which is helping Iran complete its first nuclear reactor in the southern port city of Bushehr, scheduled to go on line this summer. Iran claims its nuclear program is solely for peaceful electricity generation.

2 | Phoenix U.S. Guns On Trial? Jury selection began March 3 in the trial of George Iknadosian, an Arizona gun-shop owner accused of knowingly selling weapons to buyers working for Mexican drug cartels. Federal authorities estimate that nearly 9 out of every 10 guns recovered at Mexican crime scenes can be traced to U.S. gun shops. Iknadosian faces a sentence of up to 250 years if convicted. Last year alone, more than 6,000 people were killed in Mexican drug violence.

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U.S. guns traced to Mexico

2,100 2006

3,300 2007

7,700 2008

SOURCE: WALL STREET JOURNAL

3 | New York City Still Too Big to Fail Insurer AIG, reeling from the collapse of mortgage-backed securities it underwrote, received a fourth massive infusion of federal funds, bringing total taxpayer liability to $180 billion. The same day, it posted a $61.7 billion quarterly loss–the largest in U.S. corporate history.

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Federal funds to AIG (in billions)

SEPT. 2008

$85 Sept. 16, 2008 A loan in exchange for giving the government a 79.9% stake in the company

$38 Oct. 8, 2008 A second loan provided after AIG used ¾ of the cash from the first loan in just two weeks

$27 Oct. 31–Nov. 10, 2008 Additional infusions, bringing total to $150 billion

$30 March 2, 2009 Loan and purchase of company shares

MARCH 2009

4 | Havana Cuban Shuffle In what analysts called the nation’s biggest shake-up in decades, President Raúl Castro dismissed several top officials with ties to his ailing brother. The move, which some say indicates Castro is placing his imprimatur on the Cuban government, comes after his first year in office. Among those affected were Foreign Minister Felipe Pérez Roque and Vice President Carlos Lage, both of whom had been considered potential presidential candidates. Fidel Castro backed the moves, blasting some of his former cohort for being corrupted by ‘the honey of power.’

5 | The Netherlands Sudan Leader Charged The International Criminal Court issued an arrest warrant for Sudanese President Omar Hassan al-Bashir, accusing him of war crimes and crimes against humanity in Sudan’s Darfur region, where about 300,000 people have been killed since 2003. The charges are the first for a sitting head of state since the court opened in 2002. While many hailed the milestone, others believe al-Bashir is unlikely to face justice.

6 | Pakistan TERROR STRIKES A NATIONAL SPORT In a daring, highly organized raid, a dozen gunmen attacked the visiting Sri Lankan cricket team in Lahore on March 3, firing assault rifles and rockets at the team’s bus and police escort. Eight people were killed, including six police officers (one of whom is shown above), and six cricket players were injured. The attack, which recalled November’s rampage in the Indian city of Mumbai, underscored continuing security problems in Pakistan and threw its status as co-host of the 2011 Cricket World Cup into doubt. Several suspects have been detained.

7 | Washington Endangered-Species Reversal Blocking a change made during his predecessor’s final days in office, President Obama called for a review of that Interior Department order, which wildlife experts say could weaken protections for endangered species. The rule had waived a requirement that federal agencies consult ecologists before approving building projects.

8 | Guinea-Bissau Assassination Tit for Tat João Bernardo Vieira, the longtime President of this volatile West African nation, was assassinated by army troops on March 2 in apparent retaliation for the killing of a general hours before. The speaker of parliament, Raimundo Pereira, was sworn in as the state’s interim President and is required to call elections within 60 days. Since winning independence from Portugal in 1974, Guinea-Bissau has been racked by poverty and upheaval, becoming in recent years a key transit point for cartels smuggling drugs from South America to Europe.

9 | Brussels Bailout Denied The European Union dismissed a Hungarian-led request from nine hard-hit East European countries for a $240 billion economic bailout, saying that blanket spending would be ill-advised owing to each nation’s unique financial outlook. Hungarian Prime Minister Ferenc Gyurcsany insisted that without funds, a ‘new Iron Curtain’ would divide Europe.

10 | Washington A Budget for Change Spending plans in the $3.6 trillion 2010 budget President Obama sent to Congress signal fundamental priority shifts in several key government departments. Some of the biggest new proposals:

ENVIRONMENTAL PROTECTION AGENCY $10.5 billion, a 35% budget increase. Calls for the creation of a cap-and-trade system for greenhouse-gas emissions, funding for Great Lakes cleanup and investments in water-infrastructure projects.

VETERANS AFFAIRS $55.9 billion, an 11% increase. Calls for increases in overall veterans’ health-care spending, mental-health services and programs for homeless vets.

HEALTH AND HUMAN SERVICES $76.8 billion in discretionary spending, plus $630 billion (over 10 years) in a new reserve fund for health-care reform and expanded health-insurance coverage.

HOUSING AND URBAN DEVELOPMENT $47.5 billion, an 18% increase. Calls for more funding for affordable-housing development, rental assistance and community-development block grants.

EDUCATION $46.7 billion, a 1% increase. Calls for cuts in subsidies to banks that provide student loans and an increase in government Pell grants for college students.

AGRICULTURE $26 billion, a 6% increase. Calls for cuts in subsidies to larger farms and increases in nutrition-program funding.

SOURCE: DEPARTMENTAL BUDGET TOTALS (ACTUAL AND PROJECTIONS), PRESIDENT’S OFFICE OF MANAGEMENT AND BUDGET

RECESSION

WATCH

More families are switching schools to save money on their children’s tuition, according to a New York City–based firm that processes payments for nearly 2,000 private schools nationwide. Smart Tuition found that by the middle of the current school year, 7% of students had transferred–twice the number of students who left private schools in 2008.