COVER

WORLD

Grounded By Terror

How real is the threat? Canceled flights, F-16s and the fine line between precaution and panic

Giving Aid To The Enemy

After a calamitous earthquake in Iran, U.S. relief workers receive a (mostly) warm reception

Can This Man Survive?

Two narrow escapes by the President of Pakistan underscore the danger of taking on extremists

BRIEFING

ALSO IN THIS ISSUE

A Beast of an Idea

Can big deficits starve the governm ent down to size? Not in this universe

BUSINESS

How Now, Mad Cow?

Big Beef was doing fine until disease felled a heifer. Will consumer anxiety cripple the industry?

Detroit's Hot Pursuit

After years of focusing on SUVs, the Big Three are launching a fleet of new cars. We offer a preview

Enron, Italian Style

Parmalat, a $9.6 billion dairy giant, implodes in Europe's biggest corporate-accounting scandal

EDUCATION

Urban Preppies

Kids are learning and living at an inner-city public school. Is boarding the answer to education's woes?

ARTS & ENTERTAINMENT

Books: The Spy In Winter (Books)

At 72, John le Carre is still the grand master of the modern literary thriller. He's also mad as hell

Books: A Question Of Faith (Books)

A mysterious 16th century woman heals the sick and sees the future. Is she a saint or a swindler?

YOUR TIME

Health: Beyond Ephedra (Paging Dr. Gupta)

Why the FDA's ban may lead users to look for other weight-loss stimulants

SPECIAL SECTION

...Meanwhile, Back At The Ranch (Photo Essay / Nation)

At the Western White House in Crawford, Texas, for the holidays, President Bush spent his days relaxing, working and tending to his sprawling homestead. Exclusive pictures for TIME by Brooks Kraft

Made In The U.S.A.: What Can America Make? (Time Bonus Section February 2004: Inside Business / Made In The U.S.A.)

The manufacturing sector isn't dead, but it's different. For the survivors, it's all about new ideas

PEOPLE

Beyond The Sixth Sense (Innovators / Sensors: Forging The Future)

How can you tell what's in the air? In a suitcase? In your blood? Meet science's detection pioneers

LETTERS