As California’s recession steadily worsens with no end in sight, the state’s economy may descend into a full-blown depression, according to a new statewide forecast released Wednesday.

The state’s budget meltdown weighs heavily on California’s economy, according to the respected UCSB Economic Forecast, fueled by the political ineptitude of the Capitol’s leaders, who show that “even when faced with extraordinary crises, California is unable to make hard decisions.”

“California’s economy continues its descent into the depth of its most serious recession since World War II,” economist and Calbuzz contributor Bill Watkins writes in the forecast.“…It is possible that when this is over this recession will meet the technical definition of a depression in California.”

Passing President Obama’s “cap and trade” energy program would cost the average Oklahoma family $3,200 a year, Sen. Jim Inhofe said Friday, but he’s confident the measure will be killed in the Senate no matter what happens in the House of Representatives.

The Tulsa Republican, a longtime critic of what he considers “this hoax called global warming,” made his latest statements during a morning stop in Shawnee while House members in Washington were preparing to vote on the controversial issue.

“Between the years of 1998 and 2005, I was the only member of the United States Senate who would take on what I call ‘the Hollywood elitists’ and the United Nations on this hoax called global warming and I went through seven years of purgatory on that issue.

A local couple arrested on domestic assault charges Sunday had an unusual choice of alleged weaponry — Cheetos.

Warrants filed by Cpl. Kevin Roddy, of the Bedford County Sheriff's Department, stated he responded to a call at a home on Pass Road, where 40-year-old James Earl Taylor and Mary S. Childers, 44, were allegedly involved in an argument.

According to Roddy's report, the pair became "involved in a verbal altercation" with each other "at which time Cheetos potato chips were used in the assault."

"There was evidence of the assault," the report read, "however no physical marks on either party and the primary aggressor was unable to be determined."

Both Taylor and Childers were charged by Roddy with domestic assault. Both posted a bond of $2,500 and will appear in Bedford County General Sessions Court on July 15.

Detroit City Council President Pro Tem Monica Conyers pleaded guilty this morning to conspiring to commit bribery and is free on personal bond.

U.S. District Judge Avern Cohn said, "The defendant now stands convicted."

The one count of conspiring to commit bribery is punishable by up to five years in prison.

No sentencing date has been set.

In court, Conyers’ combative demeanor was gone, replaced by soft-spoken resignation as the judge and his staff several times asked her to speak up.

Conyers, the wife of powerful Democratic congressman U.S. Rep. John Conyers, appeared before Cohn to answer charges in connection with the wide-ranging probe of wrongdoing at Detroit city hall.

The U.S. Senate proposal to impose taxes for the first time on “gold-plated” health plans may bypass generous employee benefits negotiated by unions.

Senate Finance Committee Chairman Max Baucus, the chief congressional advocate of taxing some employer-provided benefits to help pay for an overhaul of the U.S. health system, says any change should exempt perks secured in existing collective- bargaining agreements, which can be in place for as long as five years.

The exception, which could make the proposal more politically palatable to Democrats from heavily unionized states such as Michigan, is adding controversy to an already contentious debate. It would shield the 12.4 percent of American workers who belong to unions from being taxed while exposing some other middle-income workers to the levy.

The South Korean military plans to speed up efforts to deploy ground, air and naval weapons systems for use in strikes against key facilities in North Korea in the event of war, the Ministry of National Defense said Friday.

The plan is part of a revised version of a military modernization package. The ministry unveiled the revision of the Defense Reform 2020 initiative drawn up in 2005.

The updated plan is focused on securing independent capabilities to remove North Korea's asymmetrical military threat of nuclear and missile programs by deploying sophisticated surveillance, reconnaissance and striking assets.

Gov. Arnold Schwarzenegger plans to furlough state workers an additional day each month starting in July if lawmakers do not send him a solution for the entire $24 billion budget deficit, he said today.

Schwarzenegger's move would force state workers to take three unpaid days of leave each month, the equivalent of roughly a 14 percent pay cut in all. The governor framed the additional furlough day as an effort to save cash as the state faces the prospect of issuing IOUs starting Thursday.

The House of Representatives passed a sweeping climate-change bill Friday – a major victory for President Barack Obama and House Speaker Nancy Pelosi that left Republicans fuming about a “national energy tax” they said would exacerbate the nation’s economic woes.

The vote was extremely close – 219-212, with eight Republicans voting yes and 44 Democrats voting no. And the debate leading up to it was intense.

In the hours before passage, Rep. Geoff Davis, a Republican from Kentucky, said the cap-and-trade bill represented the “economic colonization of the heartland” by New York and California. Rep. Devin Nunes (R-Calif.) called the bill a “scam” that would do nothing but satisfy “the twisted desires of radical environmentalists.” Rep. James Sensenbrenner (R-Wisc.) called it a “massive transfer of wealth” from the United States to foreign countries.

The United States will not use force to inspect a North Korean ship suspected of carrying banned goods, an American official was quoted as saying Friday.

An American destroyer has been shadowing the North Korean freighter sailing off China's coast, possibly on its way to Myanmar.

Defense Undersecretary Michele Flournoy met with South Korean officials in Seoul on Friday as the U.S. sought international support for aggressively enforcing a U.N. sanctions resolution aimed at punishing Pyongyang for its second nuclear test last month. The North Korean-flagged ship, Kang Nam 1, is the first to be tracked under the U.N. resolution.

It is clear that cap-and-trade is very expensive and amounts to nothing more than an energy tax in disguise. After all, when you sweep aside all the complexities of how cap and trade operates–and make no mistake, this is the most convoluted attempt at economic central planning this nation has ever attempted–the bottom line is that cap and trade works by raising the cost of energy high enough so that individuals and businesses are forced to use less of it. Inflicting economic pain is what this is all about. That is how the ever-tightening emissions targets will be met.

America’s biggest oil companies will probably cope with U.S. carbon legislation by closing fuel plants, cutting capital spending and increasing imports.

Under the Waxman-Markey climate bill that may be voted on today by the U.S. House, refiners would have to buy allowances for carbon dioxide spewed from their plants and from vehicles when motorists burn their fuel. Imports would need permits only for the latter, which ConocoPhillips Chief Executive Officer Jim Mulva said would create a competitive imbalance.

“It will lead to the opportunity for foreign sources to bring in transportation fuels at a lower cost, which will have an adverse impact to our industry, potential shutdown of refineries and investment and, ultimately, employment,” Mulva said in a June 16 interview in Detroit. Houston-based ConocoPhillips has the second-largest U.S. refining capacity.

Gov. Haley Barbour, fresh off a trip to New Hampshire yesterday – the same day he unexpectedly grabbed the reins of the Republican Governors Association following the sudden and unexpected resignation of Gov. Mark Sanford – has embraced with ease the “coyness” factor in answering whether he wants to run for president.

Politicians visiting Iowa before him have had to dance the same waltz. Barbour masters the steps.

In an exclusive Bean Walker Interview Series installment, Barbour answered the question point blank: “You never say never.”

Barbour continued, “I would be very surprised if I decided to run for president after 2010. But I can tell ya, I’m not going to give it any thought until after 2010 because my focus is on the election of 2009 and 2010.”

Wading into a contentious debate being waged within the Republican Party of Iowa, Mississippi Gov. Haley Barbour told a crowd of GOP activists and elected officials Thursday night that the only way back into the majority is to resist demands for ideological purity.

Punching their fists into the air and shouting "Let's crush them!" some 100,000 North Koreans packed Pyongyang's main square Thursday for an anti-U.S. rally as the communist regime promised a "fire shower of nuclear retaliation" for any American-led attack.

Several demonstrators held up a placard depicting a pair of hands smashing a missile with "U.S." written on it, according to footage taken by APTN in Pyongyang on the anniversary of the day North Korean troops charged southward, sparking the three-year Korean War in 1950.

House Democrats narrowly won a key test vote Friday on sweeping legislation to combat global warming and usher in a new era of cleaner energy. Republicans said the bill included "the largest tax increase in American history."

The vote was 217-205 to advance the White House-backed legislation to the floor, and 30 Democrats defected, a reflection of the controversy the bill sparked.