The State Update

NY Times - Economic Fears Slice Oil Prices for Second Day
Concerns about a slowing economy and rising inflation pushed oil prices down sharply for a second day on Wednesday, an unusual dip in the oil price rally that began more than six years ago. The two-day decline totaled more than $10.50 a barrel, but analysts cautioned that it was still unclear how far prices would fall and that the respite may be temporary.

NY Times - Interior Dept. Opens 2.6 Million Alaskan Acres for Oil Exploration
The Interior Department on Wednesday made 2.6 million acres of potentially oil-rich territory in northern Alaska available for energy exploration. At the same time, it deferred for a decade any decision to open 600,000 acres of land north of Teshekpuk Lake that is the summer home of thousands of migrating caribou and millions of waterfowl.

Wall Street Journal - Fed Confronts Spike in Inflation
Consumer inflation spiked to its highest level in 17 years, even as tentative signs emerged that an anemic economy may be starting to take the edge off oil prices.

Washington Post - White House Blocks Release of FBI Files
The White House yesterday blocked a House committee's attempt to obtain internal FBI reports about the leak of a CIA officer's identity, asserting that notes from interviews of Vice President Cheney and other administration officials are protected by executive privilege.

Washington Post - Guard's Status Rising With Leader's Rank
Defense Secretary Robert M. Gates yesterday made the first nomination for a four-star general to lead the National Guard, a move that should give the reserve force a significant boost in influence inside the Pentagon during an era when the Guard has played a critical role in the nation's wars abroad.

LA Times - Republicans not sold on this mortgage rescue plan

Several lawmakers see the bailout of Fannie Mae and Freddie Mac as too much government. The White House is working to turn them around.

CQ - Senate to Take Up Energy Futures Speculation Bill
A bill planned for Thursday consideration on the Senate floor would increase staffing at the Commodity Futures Trading Commission (CFTC) and place more regulations on energy futures trading.

CQ - As Administration Line Changes on Iran, Senate Prepares New Sanction Bill

The Senate Banking Committee will mark up a new Iran sanctions bill Thursday, putting Congress on the record in favor of more unilateral action even as a senior State Department official heads to Geneva for nuclear talks with Tehran.

NY Times - Prisoners’ Homecoming a Triumph for Hezbollah
Tens of thousands of people waving flags, lighting fireworks, smiling, laughing, and jostling for a view of Hezbollah’s leader, Sheik Hassan Nasrallah, packed into an open square in this city’s southern suburb on Wednesday night to celebrate the release of five prisoners from Israel.

Washington Post - Slowing Economy Gives Way to Global Role Reversals
The global slowdown stemming in part from the deepening U.S. financial crisis is hitting the world's richest nations the hardest even as emerging nations, some with once-fragile economies, are proving relatively resilient.

Washington Post - Court Orders U.S. to Halt Execution of 5 Mexicans
CULIACAN, Mexico, July 16 -- A U.N. court ruled Wednesday that the United States should halt the executions of five Mexican nationals -- including a convicted killer sentenced to die in three weeks -- until their cases can be reviewed.

LA Times - Nations with vast oil wealth gaining clout
Some autocratic governments are challenging U.S. policies and silencing domestic dissent. But their increased spending raises the risk of inflation, which could erode popular support.

LA Times - U.S. prepares to boost its forces in Afghanistan
The effort, in the wake of an attack that killed nine GIs at a remote base, may include redirecting a brigade scheduled to deploy to Iraq.

San Diego Union Tribune - Powerlink delay has mayor fuming at PUC
Flanked by Sunrise Powerlink supporters, Chula Vista Mayor Cheryl Cox yesterday denounced the most recent delay of the 150-mile power line as a move that would further pollute the air and cost the public more money.

North County Times - All Tribes charter voluntarily closes
Pauma Unified School District trustees were surprised with the news Wednesday night that a small, reservation-based charter school that they were set to close had already "voluntarily" shut its doors.

North County Times - Complex opens for homeless veterans
For Army veteran Michael McDaniel, Interfaith Community Services' new transitional housing complex in Oceanside is a place he can call home.

LA Times - 1 in 4 California high school students drop out, state says
Using a new system for tracking dropouts, California discloses a rate considerably higher than previously reported. About 1 in 3 students in Los Angeles Unified left school.

San Diego Union Tribune - Coalition to announce support of water bond
Local politicians, business and labor leaders, environmentalists and others will hold a news conference today in San Diego to support putting a comprehensive water bond on the November statewide ballot.