I am busy cleaning up some of my beads so that I can find things, but I ran across the work of a Dutch artist named Greetje van Tiem who spins newspapers into yarn.
Here is one of her knitting projects made from the newspaper yarn.
Here is another.
To see more newspaper yarn objects, visit http://greetjevantiem.nl. For instructions on how to make newspaper yarn check out Doug Gunzelmann's June 17, 2008 article at http://greenupgrader.com/2138/handspun-recycled-newspaper-yarn/