December 2011

Huffington Post…

A decade ago, customers flocked to the store in the converted fire station on the east side of Toledo, Ohio, in pursuit of Old Glory. Howard Pinkley established Flags Sales & Repair in 1960, and runs it with his daughter, Wendy Beallas. In days after Sept. 11, 2001, customers lined up outside the door. Americans wanted to show their pride, their determination, their Americanism. It’s all a fading memory now. These days, folks are focused on paying bills. A new flag is a luxury, and the unvarnished patriotism of 10 years ago has been replaced by disgust with government. A recent Wednesday saw just two walk-in customers. Father and daughter have cut their payroll, but talk openly about whether they should give up. They’re no less dispirited than their neighbors. “I go home and I refuse to listen to the news because it’s frustrating,” Beallas says. “To me, it’s not coming together and getting things done.” When Ronald Reagan ran for re-election, his advertisements boasted that it was morning in America. Nearly three decades later, as another presidential campaign begins, it feels like twilight – or, if it is morning, it is the kind of gray winter daybreak when the sun is only a rumor and only an optimist clings to hope that the clouds will break. Listen to Americans in three closely contested states and you’ll hear the same plaintive echoes, not just about politics or the upcoming election, but about the unsettling predicament that is America in 2011. Republicans or Democrats, liberal or conservative, young or old, they lack confidence – in the country’s potential to be great again, in their elected leaders’ ability to do the right thing, in the economy and in themselves. It’s not that they feel incapable of doing what needs to be done, as much as they are uncertain about what that right thing is and whether anything they can do will have any real impact. In Mount Airy, N.C., where a quaint Main Street is merely a reminder of better days: “We need to get back to the `60s and the `50s, and we need to get ourselves back to where we used to be – standing on our own two feet,” says long-haul trucker Harry J. Moore, 57, punching a beefy fist into his open left hand to punctuate each syllable. “We’re losing our pride. Our pride’s gone away.” In North Las Vegas,, Nev., where the bursting of the housing bubble has forced hard choices: “People have lost a lot of spirit,” says Elmer Chowning, 70, who had hoped to slow down in his golden years, but is instead still working in real estate while raising his 8-year-old granddaughter. In Lima, Ohio, where people have seen America’s industrial might falter: “I’m just waiting for China or somebody to take us over. That’s the way it seems,” says Becky Jamison, 36, who has watched her 18-year-old son look unsuccessfully for work for months. “Because we’re just falling apart.” ___ If you look, you can find optimism in Ohio. The Armstrong Air & Space Museum is in Wapakoneta, hometown of Neil Armstrong, the first man to walk on the moon. It stands as a monument to an earlier, more hopeful time, and there are visitors who are convinced that those times can come again. To Stephen Andrasik, a foam salesman from Indianapolis who has stopped in to the museum on his way back home from a business trip, the U.S. remains resilient, facing problems that can be solved by new leaders in Washington who will allow Americans to live up to their potential. “I think we’re still the same people we were back then,” says Andrasik. He studies a display case filled with inventions that were spinoffs of the space program, everything from fireproof clothing to battery-powered hand tools. “I’m assuming it’s going to get better as long as the American people have the ability to do what they want, to invent things, to start new businesses, we’ll be as great as we’ve always been.” But standing before a model of the Apollo 11 command module at the edge of the museum’s parking lot, Jake Retter, a chimney cleaner from Blissfield, Mich., notes the irony of a country that once raced a communist rival to put a man on the moon and now relies on China to buy its debt. Rather than pursuing national goals, politicians chase their own divisive agendas, he says. A nation built on hard work and thrift has lost sight of what really matters. “This country’s been falling apart for the last 50 years. It’s taken time,” Retter says. “It’s not that capitalism is failing us. It’s that we’re failing capitalism.” For many years, this region provided the muscle of American capitalism. Its pride in its talent for making things is evident in Toledo place names such as Jeep Parkway and the Veteran’s Glass City Bridge. The long, slow decline of factory work has been a source of constant sorrow in the Rust Belt. Recent stirrings such as announcements by Chrysler and General Motors that they will add 1,400 new jobs at their plants in Toledo, and Ford’s plans to ramp up engine production in Lima have offered some reason to hope. “I can definitely feel like the forward momentum is there” – jobs at the union hall are picking up, says Kurt Kaufman, 31. A union electrician, he worked steadily until 2006. He has since spent as much as nine months between jobs. Still, he says, “I don’t think it’s ever going to be as good as it was around here.” But a bad economy, some say, is not at the core of what ails northwestern Ohio, and America. There have been hard times before, and there will be again. The real problem, they say, is in Americans and their leaders. “What’s different from this and the Great Depression is that the moral fiber has changed,” says Russ Terry, a retired postal carrier who lives outside Lima and has stopped in for a morning break at The Meeting Place on Market, a coffee and sandwich shop downtown. “The reason we can’t handle this is we don’t have the moral backbone, the stick-to-it-tiveness, the collective people working together.” Terry, who describes his politics as very conservative, blames the federal government for printing too much money in an attempt to stimulate the economy. But at its heart, the country’s failings reflect the will of individuals, he says. “The government is just a reflection of the people, is it not?” Just down the road from Toledo’s GM plant, Martin Ridener says his worries are based on more than 20 years of running a 16-unit apartment building he once thought would pay for his retirement. Instead, a building that used to generate a steady income is now barely covering its expenses, as many tenants lose jobs, fall behind on rent and move out. Ridener, who is 75 and votes Republican, can’t imagine voting for President Barack Obama given the state of the economy, but he can’t see how Republicans taking over the White House will make things any better. “I don’t consider either side wrong in what they’re doing. What I resent is that every Democrat thinks completely one way and every Republican thinks another way. They’re afraid to talk over it and do what’s best for the country.” Across town, most of the red-checked tables are full at the Hungarian hot dog purveyor Tony Packo’s. But between bites, Pat Shupe, a 72-year-old homemaker, says she worries about the world her 3-year-old granddaughter will inherit with seemingly limited opportunities. “I absolutely see no light at the end of the tunnel until something is done in this country to equalize opportunity for people to get a job,” Shupe says. While the 2008 election gave her hope that the country could work through its problems, the gridlock in Washington has robbed her of that brief optimism. “I think we’re just ruining ourselves,” Shupe says, “destroying ourselves.” Not everyone shares that bleak outlook. Terri Leary’s employer eliminated her job as a senior housing manager in 2009, six months after her husband lost work in construction management. Leary, 44, was convinced that her lack of a college degree had made her expendable, so she enrolled at Owens Community College’s campus in Perrysburg. Days before her graduation ceremony in early December, she sat in the commons area of College Hall and described the tough times of the past few years as an opportunity, an outlook entirely decoupled from politics. The job losses and belt-tightening, she is convinced, were “a good thing. It teaches the kids very valuable life lessons, you know, make good with what you have. … We learned we can do more with less and be just as happy.” There are lessons to be learned, agrees 29-year-old Erin Tupper. She and her husband, Marc, have much to be thankful for. They have been married just a week, they have a home of their own (albeit modest and worth less than it used to be), and Marc prizes his job as a police officer. But they look around, and see evidence of an America that has lost its way. Erin, recalling her father’s pride in his work as a truck driver hauling new Jeeps off the Toledo assembly line, says she and her friends talk now of employers who pile on hours while treating workers as expendable. When she drives near her childhood home, she is dismayed by the big homes on what was once farmland, a sign of misplaced values centered on instant gratification and overspending. People seem to be more concerned with themselves and their own narrow interests than in working together for the common good. “We’re learning a lesson,” she says. And if we don’t, “we’ll be right back to where we were.” ___ “Your Community of Choice,” reads the motto on signs spread around the city of North Las Vegas, and for a while it was. Once among the fastest-growing places in the country, the city saw thousands of stucco and tile-roof homes sprout up to accommodate retirees and a middle-class workforce coming for jobs in the booming casino and construction industries. The city added workers, increased revenue and embarked on ambitious plans for redevelopment projects to keep pace with the growth. Today the community is deeply in debt, cutting programs, laying off employees, fending off a possible state takeover and weighing still more difficult decisions that will directly affect the 220,000 people who live here. Talk to people on the street, in the library, at the recreation center, and seemingly everyone knows someone who is out of work. If they own a home, its value has decreased substantially and their neighborhoods are filled with forsaken properties. You can’t watch TV without seeing local commercials for help with loan modifications or from lawyers pledging to keep the banks from your assets. The Neighborhood Recreation Center sits in the old part of town, a lifeline for senior citizens in need and young people whose parents can’t afford fancy gyms. Over the summer, struggling to plug an overall $30 million budget deficit for the fiscal year and unable to reach a deal with police unions over cuts, the North Las Vegas City Council voted to close the center. People who consider it a second home revolted, descending on council meetings with signs and petitions in hand. The facility was saved only after the local police union agreed to defer for six months a cost-of-living increase and distribution of accumulated holiday pay. That was enough to keep the center open through next summer. Recreation supervisor Neil Gallant sits at a desk littered with spreadsheets as he works to find grant money or other ways to subsidize the center’s costs. He talks of his seniors feeling “abandoned” when the City Council voted to close the center and of a sense of disconnection between elected leaders and those they serve. The politicians don’t know the people, Gallant says. “They don’t see them.” That sentiment was echoed by so many in North Las Vegas, but especially Gallant’s struggling older clientele. They are women like Nita Hargis and Maxine Delisle, who live on meager Social Security checks and depend on the center’s $1.50 hot lunch (rising to $3 come January) and the companionship they find in ceramics class. One Thursday, instead of molding candy dishes, they vented about the state of their community and the country, and the overarching theme was one of neglect – a feeling that every level of government is ignoring their needs and has failed them, despite so many promises to do otherwise. For Hargis, a 65-year-old who has lived almost her entire life in North Las Vegas and worked a variety of jobs – painter, gift shop clerk, remodeler – recent efforts to attempt to modify her home loan left her exasperated and in worse shape than she started. “They ran me around for nine months. They ruined my credit. I even got one of these government guys that was supposed to help me, and all he did was say, `Well, call `em back, call `em back.’ He never did anything to help me,” she says. For Delisle, it’s the glaring imbalance between people like her and those in government that leaves her feeling alienated. She notes that there hasn’t been a cost-of-living increase in Social Security for three years, yet it took months of difficult negotiations to get the local police union to agree to forgo its adjustment for just six months. Nineteen-year-old Oscar Corral works the front desk at the recreation center. He’s a philosophical young man with an optimistic smile and outlook. Neither of his parents graduated from high school, and yet his mom is an accounting manager at a local cab company while his father works construction. His dad was laid off not long ago but soon found another job and is “hanging on a thread.” “There’s this thing about humans. When they’re pushed, I guess they go into survival mode and they really work hard,” says Corral, who studies audio production at The Art Institute of Las Vegas. He likens the many problems facing Americans right now to climbing a mountain. “From far away,” he says, “it looks impossible. But when you start getting close up, you see there’s cracks here that I can climb up and you just attack it little by little. … Sometimes we just get caught up in the big problem.” It’s true that in North Las Vegas, as is the case nationally, the problems are so big it’s hard not to get caught up in them. Short-term fixes and eventual union concessions kept the city afloat this fiscal year, but already officials are predicting a $15.5 million deficit for the next budget cycle. Says Elmer Chowning, the real estate agent: “We’re a fast society. We want things to happen. And this is a thing that is lingering, lingering, lingering.” It’s no wonder, he adds, that people have taken to streets and parks in the Occupy Wall Street protests. “There is a tremendous feeling of camaraderie,” he says, but also “hurt and madness.” A couple of weeks ago, North Las Vegas and its residents did their best to put all of that aside for a time. Hundreds gathered on an unusually blustery evening to celebrate the grand opening of a nine-story City Hall – a project launched when the city was flush – and watch as the town Christmas tree was lit. It was a night meant to represent a fresh start, the promise of tomorrow. Nita Hargis was there with some of her friends from the recreation center, wondering aloud why the city felt the need to hand out commemorative tiles and paperweights and what was the cost to taxpayers. The Chownings brought their granddaughter, and stood in the back as a children’s choir sang Christmas carols and ballerinas danced on the shiny new granite floor. Soon they, and everyone, were joining in the carols, applauding the entertainers, sipping hot chocolate. Soon, their worries seemed to fade. At least for one night, anyway. ___ By comparison, Mount Airy is a bit of fantasy in the foothills of the Blue Ridge mountains. The hometown of Andy Griffith, it is Mayberry – America as it used to be, or as we would like to believe it used to be, when the nation’s industrial and military might was unquestioned and seemed unbounded; when a man, even one without a high school diploma, could earn enough to own a house, buy a new car every couple of years and send his kids to college for a better life than even he’d enjoyed. Stroll down Main Street, and you expect to meet characters like Aunt Bea, Goober and Floyd the barber. They’re not here. Instead, you’ll find businessmen and women struggling to survive the recession by selling nostalgia, and real people eager to buy. “They’re looking for what we wish that times could be again,” says Debbie Miles, who moved here with her husband from southern Indiana five years ago and opened Mayberry on Main, where the walls and shelves are lined with items like Aunt Bea’s Kerosene Cucumbers and Otis’s Moonshine Jelly. “That’s the main thing that we hear. `We wish that it could be like that again – like it was on the show.’” Business is down about 10 percent from a couple of years ago. But Miles can’t afford that kind of pessimism. “You know, if you’re an optimistic person, you think there’s nowhere to go but up,” she says with a laugh. “It probably does try everyone, but I think you still have to be optimistic, you know? That’s what Americans are supposed to do – think for the future.” Darrel Miles – who, like his wife, is a registered Democrat but did not vote for Obama – finds it a bit harder to be hopeful. “I think they need to turn the whole upside down in Washington and shake it real good,” says Miles, who worked 32 years for a company that made soda and ice dispensers. “I think we might have the wrong government, the wrong people trying to fix certain things. There’s too many hands in the fire, as you would say. I mean they can’t even come to agreement even within their own parties to fix certain things, you know?” Across the street, at Snappy Lunch, business is down 20 percent or 30 percent over a couple of years ago, says Mary Dowell, whose husband, Charles, has owned the restaurant since 1960. “We still have tourists who come in, but the bus groups have dropped a little bit,” Dowell says over the sizzle of meat for the diner’s “famous pork chop sandwich.” “Last year, I did have to give everybody a day a week off, because we were so slow. And we’ll probably do that this year.” On this sunny afternoon, Jennifer Brown stands outside Snappy Lunch and peers through the window. Her parents, Steve and Diane, both have good jobs in manufacturing. But the 27-year-old Cleveland-area woman, who has an associate’s degree in office management, can’t find permanent employment. “I did telemarketing. I worked at a park. I even worked at a county fair for a week,” she says. “I’m doing side jobs, some retail. But nothing that I wound up being able to keep.” Her mother, whose company was recently bought out by a European firm, can’t help feeling that the U.S. is in decline. “Because the average person can’t graduate from high school and find a job,” she says. “It’s easier for somebody to come from another country and get started than it is for us who grew up here.” “Mmmm,” her daughter nods in agreement. Jennifer Brown motions to the street scene around her. “This is where it needs to go back to,” she says. “Like the American dream. America, not the socialist stuff that’s going on. And where you could just, you can get a job.” Around the corner from the bustle of Main Street, in front of the Andy Griffith Playhouse and Museum, Sheriff Andy Taylor and son Opie stride in bronze, hand in hand, rods over their shoulders, toward an imaginary fishing hole. A plaque at their feet reads, “a simpler time.” Inside the museum, the gauges on two vintage “ethyl” gas pumps are frozen at 17.9 cents a gallon. Oil worker Jeff Zwicker of Vacaville, Calif., poses for a photo with museum founder (and Griffith childhood friend) Emmett Forrest. Zwicker, 55, a 20-year Air Force veteran who served on cargo planes in Operation Desert Storm, is worried about the deficit and American indebtedness to foreign creditors such as China. But if Washington can get those things under control – and he’s confident it can – “I think the future’s great for our country.” “We’re a great nation,” he says. “We have a lot of smart people here, and if we put all the smart people on this and get it going. But you’ve gotta get serious about it, you know? You’ve gotta really do it. You’ve gotta WANT to do it.” Forrest isn’t so sure. The 84-year-old former electric company vice president says Obama has “taken us down the path to absolute ruin” and, if he’s re-elected, “there’ll be no recovery from it.” “Ten or 20 years ago, I think we were the shining star of the world, and our star has dimmed quite a bit,” he says. “I guess I’m just cornpone patriotic. I love this country and hate to see it go down.” But to Pablo Hernandez, these are good times. Hernandez, 45, came here from Mexico in 1987. He traveled the country, picking apples, oranges, tomatoes – “everything” – before landing a job at a chicken-processing plant in nearby Dobson. For the past five years, he and his wife, Salustria, 33, have operated La Sierrita Tienda Mexicana in a strip mall on a bypass outside downtown. They sell everything from black beans and dried chilies to CDs from groups like Los Rancheros and Fortunato y sus Cometas. Sure, Hernandez is concerned about the recent wave of anti-immigrant sentiment in places like Alabama and South Carolina. The couple’s two daughters – Lesley, 13, and Nadia, 6 – were born here, but the parents have their green cards. But he is not a pessimist. The American Dream “is still alive for me,” he says, as Nadia reads a picture book beneath a ceiling dangling with colorful pinatas. “Because I’m still here, you know.” ___ Pauline Arrillaga reported from North Las Vegas, Nev., Allen G. Breed reported from Mount Airy, N.C., and Adam Geller reported from Toledo and Lima, Ohio. They can be reached at features(at)ap.org.

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‘We’re Just Ruining Ourselves.. Destroying Ourselves’

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Office Cleaners, Building Owners Get To Yes

by Janell Ross on December 31, 2011

Huffington Post…

New York office cleaners and building owners reached a tentative four-year labor agreement late Friday, averting a potential New Year’s Day strike. The agreement, which covers more than 22,000 New York City office cleaners represented by the Service Employees International Union Local 32BJ, will give the cleaners a nearly 6 percent wage increase over the life of the contract. Each worker will also receive cash bonuses totally $1,100. The contract, which union members must ratify, maintains employer-paid family health care coverage. “The new contract is not just an important victory for office cleaners and their families, but for our economy and our city,” said Hector Figueroa, secretary-treasurer of SEIU Local 32BJ, in a statement. “In these tough times the workers who keep New York City’s corporate offices and landmark buildings clean and well maintained have stood up for the good middle class jobs our economy and our city needs.” Building owners had sought to create a two-tier wage system under which new hires would never earn as much as current union members. They also wanted to eliminate a system of automatic employee contributions to the union’s political fund. Neither proposal is part of the union’s final agreement with building owners, said Kwame Patterson, a spokesman with SEIU Local 32BJ. Unionized building workers clean and maintain about 1,500 buildings in New York, including landmarks such as Rockefeller Center, the MetLife Building, the Empire State Building, the Chrysler Building, Grand Central Station, the Port Authority and the Time Warner Center, along with educational institutions such as New York University and The New School. New York building cleaners had threatened to establish picket lines in major cities around the country and had collected pledges from unionized cleaners elsewhere and other organized labor not to cross those picket lines. Such tactics would have expanded the effects of a potential strike beyond New York City, left thousands of buildings without needed staff and involved at least 100,000 workers. “We are pleased to have reached a tentative agreement with the union that protects workers’ wages and benefits, and provides crucial cost-savings to building owners, who have been battered in this deep recession,” said Howard Rothschild, president of the Realty Advisory Board on Labor Relations, the group negotiating on behalf of building owners with the union. In the last three months, Local 32BJ has reached new, multi-year contracts for more than 50,000 workers in Connecticut, New Jersey and Virginia. In 2012, SEIU is set to renegotiate contracts for another 155,000 cleaners across the United States. With more than 120,000 members, including 70,000 in New York state, SEIU Local 32BJ is the largest property-service workers union in the country and the largest private-sector union in the state.

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Office Cleaners, Building Owners Get To Yes

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The Lost Year: Washington’s 365 ‘Do-Nothing’ Days

December 31, 2011

WASHINGTON — With yet another high-profile fight between Congress and the White House coming down to the wire, 2011 ended with a sense of deja vu. This time, President Barack Obama survived the cable news carnage with a two-month extension of the payroll tax cut and unemployment benefits — a victory in political terms, but little more than a stopgap as a matter of actual policy. This has been the story on jobs legislation all year: small-bore, short-term or substantively irrelevant. On economic policy, 2011 was a lost year. Just one year ago, Obama sparked a tremendous outcry from progressives for offering up a one-year payroll tax cut and unemployment benefits extension in exchange for two years of the Bush tax cuts for the wealthy. As 2010 drew to a close, the payroll tax cut — which provides an average of $1,000 a year to 160 million Americans — was viewed as woefully insufficient compared to the potential job-creating revenue from new taxes on the wealthy. Those meager provisions likely prevented the economy from falling back into recession, but in the year since Obama cut that deal with congressional Republicans, economic growth has averaged a pathetic 1.2 percent. The unemployment rate has fallen from a horrific 9.8 percent to a merely terrible 8.6 percent . But much of that progress is illusory — millions of out-of-work Americans have simply given up all hope of finding a job, a situation that isn’t captured by the unemployment statistics. “At this pace it will take us almost 15 years to get back to the pre-recesson employment rates,” notes economist Dean Baker, co-director of the Center for Economic and Policy Research. Today there are nearly 1 million homes scheduled for a foreclosure auction, down from about 1.5 million at this time last year, but again, there’s less to the improvement than meets the eye. Widespread legal challenges to fraudulent foreclosures have forced banks to slow down the eviction process. The same Wall Street firms that sent the economy into a tailspin remain broadly unaccountable. The robo-signing of foreclosure documents, in which banks process foreclosures at lightening speed without proper review, is still taking place . Most of the major new bank regulations required by 2010′s Wall Street reform legislation have been delayed. The new Consumer Financial Protection Bureau, perhaps the signature achievement of last year’s bill, has no director . The Federal Reserve Board of Governors is short two members. With so little progress in so many areas, dozens of experts and pundits have deployed Harry Truman’s famous “do-nothing” epithet against the current Congress. Some statistics support the charge. According to The Washington Post , the Senate approved fewer measures in 2011 than in any year since 1995. But lawmakers have not, in fact, been idle. As it turns out, it takes a lot of work to accomplish so little. On two separate occasions, first in April and again in July, the government almost shut down and nearly defaulted on its debt, thanks to legislative circuses organized by the House GOP. Obama sacrificed loads of discretionary government spending (i.e. the social safety net) to keep congressional Republicans from making good on their promises to torpedo the global economy. To avert a shutdown in April, the president cut funding to emergency first responders , the Children’s Health Insurance Program and local abortion services in the District of Columbia, alongside infrastructure programs like high-speed rail . Such cuts might have been acceptable had the federal budget deficit been a big, pressing problem akin to the jobs catastrophe, and had discretionary spending been driving the deficit. Neither of these, however, were the case. Kevin Smith, a spokesman for Speaker John Boehner, defended the inaction on jobs by insisting that the House GOP has passed 28 jobs bills this year which have not been taken up by the Senate. But the legislation generally refers to roll-backs of important regulations that have minimal employment implications, if any, and steep cuts to key programs, including the budget proposal from Rep. Paul Ryan (R-Wis.) to end Medicare. With the GOP and many conservative-to-moderate Democrats demanding budget cuts, the prospect of the government actually spending money to create jobs was off the table for most of the year. Instead, lawmakers spent their time dividing America’s economic spoils between politically entrenched corporate titans. For six months, the Senate argued over how to carve up $16 billion a year in debit card swipe fees between Wall Street banks and the American retail industry. In the end, the banks lost. But the American people were no better — or worse — off, as a result . The swipe fee mess was followed by an intense push to pass a patent reform bill , an issue that has been kicking around Capitol Hill for the better part of a decade. Tech companies have been plagued by the over-issuance of broad, vague patents that lead to a glut of frivolous lawsuits. But pharmaceutical companies have a tremendous interest in securing patent rights, enabling them to maintain long-term monopolies on life-saving medicine. In the end, Pharma’s lobbyists defanged the bill. It does nothing to curb the issuance of silly patents, nor does it provide relief to the tech companies currently besieged by lawsuits over them. None of this, of course had anything to do with jobs. Like most of what passed for economic policy in 2011, it essentially served to reinforce the status quo. But with patent reform out of the way, Congress moved on to trade policy, which presented a legitimate, albeit difficult, arena for job-creation. When any nation’s economy is in the dumps, its leaders generally try to convince foreigners to buy their country’s products. Money from abroad creates jobs at home. It’s a difficult maneuver during a global recession in which every major economy is reeling — when everyone is trying to export, nobody is trying to import. But it’s a theoretically plausible forum for job-creation, and so both congressional Republicans and Obama himself were eager to tout three trade pacts with South Korea , Colombia and Panama — originally negotiated by President George W. Bush in 2007 — as good news for American workers. The trade deals, Obama said in an April speech before the U.S. Chamber of Commerce, marked a break from the free-trade pacts of the last two decades, which encouraged outsourcing. “These agreements will support tens of thousands of jobs across the country for workers making products stamped with three proud words: Made in America,” Obama said. “American job creators will have new opportunities to expand and hire as they access new markets abroad,” House Speaker John Boehner (R-Ohio) declared upon Congressional approval of the trade pacts. “By boosting American exports, these agreements — part of the Republican jobs plan — help the private sector put Americans back to work.” But the three trade deals Congress approved this fall are actually expected to increase the American trade deficit, according to official government estimates from the U.S. International Trade Commission. Obama and other advocates for the trade deals repeatedly claimed that the largest of the three, with Korea, would “support” 70,000 American jobs. But that statement ignores the number of jobs lost due to competition from foreign imports. Include imports in the equation, and the Korea deal alone is expected to cost the U.S. about 159,000 jobs . That’s the lion’s share of Congress’ work this year on anything that could be described as creating jobs. Republican senators also made threats about the National Labor Relations Board, bemoaned just about everything the Environmental Protection Agency did, and blocked several of Obama’s nominees to the Federal Reserve and the Consumer Financial Protection Agency. But in other areas, the administration and various executive-branch agencies have engaged in self-imposed economic impotence. On foreclosures, in particular, the Obama administration has steadfastly refused to promote policies that would reduce principal balances on troubled mortgages — which many view as the only viable option for curbing the foreclosure crisis. If homeowners owe more than their house is worth and can’t make their payments, foreclosure is all but inevitable. Instead, the administration has focused on programs to lower monthly payments, rather than reduce principal balances. The most high-profile effort in this department, the Home Affordable Modification Program, has been a disaster — and a hotbed for bank abuse of homeowners. In October, the Obama team rolled out a more aggressive refinancing initiative targeting borrowers whose loans are owned by government-controlled Fannie Mae and Freddie Mac. But again, the plan didn’t relieve borrowers who owed more on their mortgages than their homes were worth. Instead, it focused on lowering interest rates for them. For many, foreclosure would still be a preferable option to the relief the Obama administration provided . “The basic needs of the American homeowner have not been met,” law Professor Alan White of Valparaiso University says. White is one of the nation’s foremost foreclosure experts, who analyzes key data on the costs of foreclosures compared to loan modifications. “We still have foreclosure inventories at four times the level of non-crisis times.” Foreclosures are not simply a problem for troubled borrowers. They push home values down and reduce tax revenues, resulting in more foreclosures and job losses. A June International Monetary Fund report estimated that the foreclosure problem alone is adding 1.25 percent to the unemployment rate. A broad settlement of robo-signing activities has also been stalled, largely because a handful of state attorneys general view the deal in the making as far too lenient on banks, providing insufficient relief to borrowers and investors . The administration emphasizes that it put forward a $450 billion, fully-paid-for package of job-creation efforts in September, which Obama dubbed, “The American Jobs Act.” Key provisions include a one-year extension of the payroll tax cut and unemployment benefits, plus $150 billion in infrastructure spending. Congressional Republicans blocked the plan. “You had a serious measure on the table and those Republicans in Congress who opposed things like teacher jobs and infrastructure investment had to explain why they opposed this medicine for the economy,” Brian Deese, Deputy Director of the White House National Economic Council, told HuffPost. “We’ve only got part of that Act implemented so far, but I actually think that the reason why we spent the second half of this year talking about jobs in Washington was that it really did change the debate.” A payroll tax cut of $1,000 a year per worker helps keep money moving through the economy (provided Congress can ultimately reach a deal to extend the cut for the full year). It ensures that consumers have money to spend, so that producers have customers and can afford to employ workers. But it’s remarkably similar to a tactic deployed by the Bush administration in early 2008 before the demise of Lehman Brothers and Bear Stearns. At the behest of Treasury Secretary Henry Paulson, Bush cut a $600 check for every taxpayer in the country, hoping to boost demand. It helped, but not nearly enough. And the same is likely to be the case with the $1,000 a year that the White House hopes to secure from Congressional Republicans over the next two months. Big ideas — major research and development programs, a formal federal jobs program — all require money. And even though the government can borrow money today at lower rates than at any time in modern history, nobody in Washington is interested in actually spending it to create jobs. That suggests that 2012 is likely to be another lost year, marked by corporate infighting on Capitol Hill and meager administrative efforts to address massive problems. In an election year, in particular, lawmakers will likely be even less willing to pass legislation of substance. Unless Europe collapses — in which case, the world will have still more frightening problems .

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Bill George: Five Resolutions for Aspiring Leaders

December 31, 2011

As the New Year approaches, people will be making resolutions to eat better, exercise more, get that promotion at work or spend more time with their families. While these are worthwhile goals, we have a more important challenge for young people: Think seriously about your development as a leader. These are tough times. Many leaders of the baby boomer generation have failed in their responsibilities by placing their self-interest ahead of their organizations. In so doing, they have failed to serve society’s best interests. As a result, more young leaders from Gen X and the Millennials are being asked to take on major leadership responsibilities. To be prepared for the challenges you will face, we propose the following resolutions this New Year’s: Find a trustworthy mentor: Mentorship is a critical component of your development as a leader. A 2004 study showed that young leaders with mentors were more likely succeed professionally and experience career satisfaction. The essence of effective mentoring is developing a trusting relationship between the mentor and mentee. Identify someone with whom you have a genuine chemistry and who is committed to your development. Although many mentees do not realize it, a sound relationship is a two-way street that benefits both parties — not just the mentee. We suggest looking for mentors whom you admire for their values and character more than their success. Form a leadership development group : Most of us have little time to reflect on the values and characteristics we want to define us as leaders, the difficulties we’re facing, or the long-term impact we hope to have. Forming a leadership development group can give you the space you need to think deeply about these subjects. Leadership development groups are groups of six to eight people who meet to share their personal challenges and discuss the most important questions in their lives. Find people you can trust, and make a commitment to be one another’s confidential counselors. Meet regularly, and share openly your life stories, crucibles, passions and fears, while offering each other honest feedback. Volunteer in a civic or service organization: Have you served your community this year? In the Facebook era it’s easy to lose touch with our real-world neighbors. Long hours often cause us to avoid volunteer opportunities. Participating in local organizations — from religious organizations to civic groups — can give you early leadership experiences, provide real connection to your neighbors, and offer opportunities to serve others. It adds a dimension to your life that work can’t, and helps you develop and solidify your character while giving back to the community. You will find your time serving a community organization is highly rewarding while broadening your outlook on people and life. Work in or travel to one new country: “The world is flat,” as Tom Friedman puts it, so it has never been more important to get global experience. In the future cultural sensitivity will be a more important characteristic for leaders than pure intellectual ability. John’s survey of more than 500 top MBAs found that on average they had worked in four countries prior to entering graduate school and expect to work in five more in the next 10 years. Having a global mindset and the ability to collaborate effectively across cultures are essential qualities for aspiring leaders of global organizations. Finally, ask more questions than you answer: With the high velocity of change in the world, it is impossible to have answers to all the important questions. Much more important is a deep curiosity about the world and the ability to frame the right questions in profound ways. The world’s toughest problems cannot be solved by you or any one organization. Your role will be to bring the right people together to address the challenging issues you raise. Our research demonstrates that the biggest mistakes result from decisions made by people without deep consideration of thoughtful questions. Young leaders will soon be asked to take on major leadership responsibilities in their organizations and their communities. We believe it is essential that they take steps like these in order to be prepared for the difficult leadership challenges they will face. There’s no better time to get started than the coming year. Co-written by Bill George and John Coleman.

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Court Puts ‘Disappointing’ Hold On Power Plant Pollution Regulation

December 31, 2011

WASHINGTON (AP) — A federal court Friday put on hold a controversial Obama administration regulation aimed at reducing power plant pollution in 27 states that contributes to unhealthy air downwind. More than a dozen electric power companies, municipal power plant operators and states had sought to delay the rules until the litigation plays out. A federal appeals court in Washington approved their request Friday. The EPA, in a statement, said it was confident that the rule would ultimately be upheld on its merits. But the agency said it was “disappointing” the regulation’s health benefits would be delayed, even if temporarily. Republicans in Congress have attempted to block the rule using legislation, saying it would shutter some older, coal-fired power plants and kill jobs. While those efforts succeeded in the Republican-controlled House, the Senate — with the help of six Republicans — in November rejected an attempt to stay the regulation. And the White House had threatened to veto it. The rule, finalized by the Environmental Protection Agency in July, replaces a 2005 Bush administration proposal that was rejected by a federal court. The Bush-era rule, which is expected to cost the industry $1.6 billion annually to comply, will remain in effect. The new rule would have added $800 million a year to that price tag. But those investments would be far outweighed by the hundreds of billions of dollars in health care savings from cleaner air, according to the EPA. In the first two years, the EPA estimates that the regulation and some other steps would have slashed sulfur dioxide emissions by 73 percent from 2005 levels, and nitrogen oxides will be cut by more than half. Sulfur dioxide and nitrogen oxide pollution from power plant smokestacks can be carried long distances by the wind and weather. As they drift, the pollutants react with other substances in the atmosphere to form smog and soot, which have been linked to various illnesses, including asthma, and have prevented many states and cities from complying with health-based standards set by law. Environmentalists on Friday said they would continue to defend the regulations, which are essential for some states to be able to meet air quality standards for soot and smog and are far more protective than the ones proposed under the Bush administration. “The pollution reductions at stake are some of the single most important clean air protections for children, families and communities, across the eastern half of the United States,” said Vickie Patton, the general counsel for the Environmental Defense Fund. But Scott Segal, director of the Electric Reliability Coordinating Council, a coalition of power companies, said in a statement Friday that the ruling was the “first step to setting it right.” “The underlying rule was the subject of hasty process, poor technical support, unequal application and substantial threat to jobs, power bills and reliability,” he said. Six states— Texas, Nebraska, Florida, Kansas, Louisiana, and Ohio — had asked the court for the delay. All would have had to reduce pollution from their power plants under the regulation. They were joined by Ames, Iowa, local power plant operators and power generating companies, including Entergy Corp., Luminant Generation Co. and GenOn Energy. “For the time being, this stay means Nebraskans will not have to foot the bill for unnecessary modifications mandated by the EPA,” said Nebraska Attorney General Jon Bruning. “We will continue to fight these job-killing regulations by an overreaching federal government run amok.” The court is asking that oral arguments take place by April 2012. ___ EPA fact sheet — http://www.epa.gov/crossstaterule/pdfs/CSAPRFactsheet.pdf

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What Ended The Year As One Of The Country’s Best Investments?

December 31, 2011

NEW YORK — Investors clamored for Treasurys in 2011, giving the market its best return since 2008, even after the US government lost its sterling AAA credit rating. The turmoil in global markets only seemed to increase demand for Treasurys, which are still seen as the lowest-risk investments anywhere. Compared to the U.S. stock market, which is ending the year flat, Treasurys soared 9.6 percent for the year, according to a broad market index from Bank of America/Merrill Lynch. That’s the best return since 2008. Investors flocked to the safety of U.S. Treasurys after being alarmed by worries that the euro, Europe’s shared currency, would collapse because of the enormous debt loads of countries like Greece. There are still worries that Greece could default on its debt, which will cause massive losses for large French and German banks that hold Greek bonds. Investors fear that could cause a financial panic to spread around the world. As the euro zone debt crisis intensified during the year, U.S. debt became the safest place to park cash for large investors. “The U.S. downgrade was well overshadowed by concerns over euro zone risk,” said Kim Rupert, managing director of global fixed income analysis at Action Economics. “After huge fluctuations in gold and other commodities, there aren’t any other areas besides Treasurys to put your money and be assured you’ll get it back.” Recent debt auctions by the U.S. government were met with record demand. That demand increased even more after the value of European government bonds fell, crushing the balance sheets of European banks. Those were lining up with other investors to buy U.S. debt to shore up their balance sheets. The intense buying sent the yield on the benchmark 10-year Treasury note down to 1.67 percent in September, the lowest on record. On Friday, the 10-year note fell 15 cents for every $100 traded and closed out the year at 1.88 percent. Rupert said that the demand for U.S. Treasurys will likely remain high until Europe makes progress toward resolving its debt problems. “There’s a real risk that a country defaults in the first half, which will have a domino effect and Treasury yields will hit fresh all-time lows. But once that catharsis is over, expect large-scale selling,” said Rupert. Both Spain and Italy are scheduled to hold debt auctions in the coming weeks, which will be closely monitored. Both countries have had to pay high yields on new debt they’ve sold. Earlier this week, Italy paid 6.98 percent on a 10-year bond auction, dangerously close to the 7 percent threshold at which Greece and Portugal had to seek bailouts from their creditors. The 30-year bond yield finished 2011 at 2.89 percent, after starting the year at 4.5 percent. The yield on the two-year note fell to 0.24 percent from 0.27 percent. The yield on the three-month T-bill was 0.01 percent. Its discount wasn’t available. Trading was quiet on the last trading day of 2011. Markets will be closed Monday in observance of New Year’s Day, which falls on Sunday.

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The Global Economy Depends On China’s Rural Population

December 31, 2011

Two weeks ago peasants in Wukan, a fishing village in the prosperous southern Chinese province of Guangdong, took over their village, throwing out local leaders. Because of long unanswered grievances, they risked their lives, barricading roads into the village and facing down the police. Their central concern was the sale of collectively owned village land to property developers, which has impoverished most residents while enriching their leaders.

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For First Time, Top U.S. Exports Are Gas And Other Fuels

December 31, 2011

NEW YORK — For the first time, the top export of the United States, the world’s biggest gas guzzler, is – wait for it – fuel. Measured in dollars, the nation is on pace this year to ship more gasoline, diesel, and jet fuel than any other single export, according to U.S. Census data going back to 1990. It will also be the first year in more than 60 that America has been a net exporter of these fuels. Just how big of a shift is this? A decade ago, fuel wasn’t even among the top 25 exports. And for the last five years, America’s top export was aircraft. The trend is significant because for decades the U.S. has relied on huge imports of fuel from Europe in order to meet demand. It only reinforced the image of America as an energy hog. And up until a few years ago, whenever gasoline prices climbed, there were complaints in Congress that U.S. refiners were not growing quickly enough to satisfy domestic demand; that controversy would appear to be over. Still, the U.S. is nowhere close to energy independence. America is still the world’s largest importer of crude oil. From January to October, the country imported 2.7 billion barrels of oil worth roughly $280 billion. Fuel exports, worth an estimated $88 billion in 2011, have surged for two reasons: _ Crude oil, the raw material from which gasoline and other refined products are made, is a lot more expensive. Oil prices averaged $95 a barrel in 2011, while gasoline averaged $3.52 a gallon – a record. A decade ago oil averaged $26 a barrel, while gasoline averaged $1.44 a gallon. _ The volume of fuel exports is rising. The U.S. is using less fuel because of a weak economy and more efficient cars and trucks. That allows refiners to sell more fuel to rapidly growing economies in Latin America, for example. In 2011, U.S. refiners exported 117 million gallons per day of gasoline, diesel, jet fuel and other petroleum products, up from 40 million gallons per day a decade earlier. There’s at least one domestic downside to America’s growing role as a fuel exporter. Experts say the trend helps explain why U.S. motorists are paying more for gasoline. The more fuel that’s sent overseas, the less of a supply cushion there is at home. Gasoline supplies are being exported to the highest bidder, says Tom Kloza, chief oil analyst at Oil Price Information Service. “It’s a world market,” he says. Refining companies won’t say how much they make by selling fuel overseas. But analysts say those sales are likely generating higher profits per gallon than they would have generated in the U.S. Otherwise, they wouldn’t occur. The value of U.S. fuel exports has grown steadily over the past decade, coinciding with rising oil prices and increased demand around the globe. Developing countries in Latin America and Asia have been burning more gasoline and diesel as their people buy more cars and build more roads and factories. Europe also has been buying more U.S. fuel to make up for its lack of refineries. And there’s a simple reason why America’s refiners have been eager to export to these markets: gasoline demand in the U.S. has been falling every year since 2007. It dropped by another 2.5 percent in 2011. With the economy struggling, motorists cut back. Also, cars and trucks have become more fuel-efficient and the government mandates the use of more corn-based ethanol fuel. The last time the U.S. was a net exporter of fuels was 1949, when Harry Truman was president. That year, the U.S. exported 86 million barrels and imported 82 million barrels. In the first ten months of 2011, the nation exported 848 million barrels (worth $73.4 billion) and imported 750 million barrels.

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IDB, Pakistan Ink $60m Power Deal

December 31, 2011

(MENAFN – Saudi Press Agency) The Islamic Development Bank (IDB) has signed a $60 million lease finance deal with Pakistan for the development of the Patrind Hydropower Project. The agreement was …

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IMF: Greece will miss financial targets

December 31, 2011

(MENAFN – Saudi Press Agency) The International Monetary Fund in an official report said Greece’s financial situation is worse than previously thought, UPI reported. With a new estimate on the …

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South Korea Parliament approves 2012 budget bill

December 31, 2011

(MENAFN – Saudi Press Agency) South Korea’s parliament approved a 2012 government budget bill late on Saturday, just half an hour before the new year began and after a near month-long delay due to …

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Greece must stick to reforms in 2012 to stay in euro

December 31, 2011

(MENAFN – Saudi Press Agency) Greece faces another tough year in 2012 but must stick to its programme of austerity and reform to stay in the euro, Reuters cited Prime Minister Lucas Papademos as …

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Energy pundits divided on market moves

December 31, 2011

(MENAFN – Arab News) As a New Year begins, too many ifs and buts continue to cloud the energy horizon. While the overall market fundamentals are weak and the euro zone crisis still far from …

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World rings in 2012 and bids adieu to a tough year

December 31, 2011

(MENAFN – Arab News) Fireworks glittered and boomed Sunday as revelers in Australia and Asia welcomed 2012 and others around the world looked forward to bidding adieu to a year marred by …

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Iran’s carpet exports hit USD326.5m in 8 months

December 31, 2011

(MENAFN) Iran’s National Carpet Center’s director, Feysal Merdasi, said that during the first 8 months of the current Iranian calendar year, Iran’s exports of hand-made carpets reached USD326.5 …

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Singapore’s 2011 GDP up to 4.8%

December 31, 2011

(MENAFN) Singapore’s Prime Minister, Lee Hsien Loong, said that due to a decline in the city-state’s exports, in 2011, economic growth slowed to 4.8 percent, from 15 percent in 2010, reported …

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Iran to sign USD15b in oil contracts by Mar 2013

December 31, 2011

(MENAFN) The Iranian Offshore Oil Company’s (IOOC) managing director, Mahmoud Zirakchainzadeh, said that by March 2013, the country would ink USD15 billion in oil contracts, reported Tehran …

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Ford’s Jan-Nov US sales up 18%

December 31, 2011

(MENAFN) Ford Motor Co. said that the company’s sales in the US during 2011′s first eleven months jumped 18 percent from 2010′s same period to reach 1.94 million vehicles, reported AP. The …

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South Africa’s Nov credit growth up 6.22%

December 31, 2011

(MENAFN) South Africa’s Reserve Bank said that in November, credit growth rose 6.22 percent, from 5.5 percent recorded in the previous month, reported Bloomberg. The bank added that the increase …

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Apple’s Design Chief Receives Major Honor

December 31, 2011

iPhone. iPad. iKnight. Jonathan Ive, Apple’s head of design, has been honored with a knighthood in the United Kingdom. Per BBC News , Ive, a native of Chingford, was awarded with the title Knight Commander of the British Empire (KBE). The design guru worked closely with the late Steve Jobs and played a key role in the creation of such iconic Apple products as the iMac, the iPod, the iPhone and the iPad. As the San Jose Mercury News reports, Ive released a statement responding to the knighthood announcement: “I am keenly aware that I benefit from a wonderful tradition in the UK of designing and making,” Ive, 44, said in a statement. “To be recognized with this honour is absolutely thrilling and I am both humbled and sincerely grateful. I discovered at an early age that all I’ve ever wanted to do is design. I feel enormously fortunate that I continue to be able to design and make products with a truly remarkable group of people here at Apple.” Earlier this year, the Associated Press reported on Ive’s background : Ive started out far from Apple Inc.’s Cupertino headquarters. He grew up outside London and studied design at Newcastle Polytechnic (now Northumbria University) in Newcastle, England. After finishing school, he co-founded a London-based design company called Tangerine. There, he designed a range of products including combs and power tools. It was through Tangerine that he first got to work with Apple. In 1992, while Jobs was still in the midst of a 12-year exile from Apple, the company’s design chief at the time, Robert Brunner, hired Ive as a senior designer. Thomas Meyerhoffer, who worked under Ive at Apple in the `90s, believes Ive came because he understood Apple was different from other computer companies. Bloomberg Businessweek , profiling Ive in 2006, explained that he became head of Apple’s design team in 1996 . Upon Steve Jobs’ 1997 return to Apple, the late CEO recognized Ive’s incredible talents. Jobs, quoted by biographer Walter Isaacson , explained that he set up a structure at Apple in which “There’s no one who can tell him [Ive] what to do.” As AppleInsider reports, Jobs viewed Ive as his “spiritual partner” at Apple . Ive’s designs can be found on the desks and in the pockets of millions of people. In addition, the Museum of Modern Art in New York houses six classic products designed by Ive: the G4 Cube Computer, the G4 Cube Speakers, the Harman Kardon iSub, the iBook, the iMac G4 Desktop and the original iPod. His massive impact on the design of technology was recognized by FORTUNE magazine in 2010 when the publication named Ive the Smartest Designer in Tech .

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US Express profit hikes 24% in Q3

December 31, 2011

(MENAFN) Express’ Inc. CEO, Michael Weiss, said that due to an increase in sales, profit in the third quarter surged 24 percent to USD32.7 million, compared with USD26.3 million in 2010′s same …

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US Semtech’s profit up in Q3

December 31, 2011

(MENAFN) US Semtech Corp. said that due to a drop in expenses, profit in the third quarter soared 67 percent to USD27 million, compared with USD16.1 million in 2010′s same period, reported …

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China’s factory activity shrinks again in December

December 31, 2011

(MENAFN – Gulf Times) China’s vast factory sector likely shrank again December as demand at home and abroad slackened, a purchasing managers’ survey showed yesterday, reinforcing the case for …

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European shares edge higher at end of dismal year

December 31, 2011

(MENAFN – Saudi Press Agency) European shares rose on Friday on the last trading day of a dismal year, with recent positive U.S. economic data continuing to act as support, according to …

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No New Year bounce for Australian stocks

December 31, 2011

(MENAFN – Saudi Press Agency) Australian stocks closed lower on the last trading day of 2011 to post a 14-per-cent loss for the whole year, according to dpa. The ASX 200 gave up 14 points on …

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Spain gears up for austerity under new government

December 31, 2011

(MENAFN – Saudi Press Agency) Spain’s new conservative government is set to unveil its first austerity measures later Friday as it tries to reassure markets that it has a plan to get a grip on its …

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Americans to travel farther, spend more in 2012

December 31, 2011

(MENAFN – Saudi Press Agency) Shaky economy notwithstanding, Americans intend to travel farther and spend more in 2012, according to a nationwide poll, Reuters reported. Long-haul bookings to …

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Saab receivers express hope of "continued activity" at plant

December 31, 2011

(MENAFN – Saudi Press Agency) Court-appointed receivers handling Swedish carmaker Saab’s bankruptcy estate said Friday they were hopeful that ‘some activity’ could continue at the carmaker’s main …

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USD6.22b aid proposed for Air India

December 31, 2011

(MENAFN) India’s aviation ministry asked USD6.22 billion aid for Air India by 2017 as part of the government’s 12th five-year plan, Reuters reported. The proposed aid includes injecting USD3.7 …

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India’s fiscal deficit widens 49%

December 31, 2011

(MENAFN) India’s fiscal deficit for the first eight months of the financial year widened 49 percent to USD66.3 billion, fueling expectations that the government will be have to resort to the bond …

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Turkey- Erdogan regrets deadly strike

December 31, 2011

(MENAFN – Arab News) Turkish Prime Minister Recep Tayyip Erdogan expressed regret Friday for the killing of 35 Kurdish civilians in an airstrike as mourners vented their fury and rebels called for …

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Pamela Powers Hannley: Occupy The Post Office?

December 31, 2011

Snail mail, as it is derisively called, has been losing ground to e-mail, texting and social media for years. And the financial troubles of the United States Postal Service (USPS), in part due to the coming of the Internet age, are impacting what used to be one of the most stable jobs in the nation: that of the postal worker. Between 2006 and 2010, first class mail declined 20 percent, according to Brian McCoy, a USPS representative who addressed a capacity crowd at the Tucson Convention Center on Tuesday, Dec. 28, 2011. Although “business mail” (AKA “junk mail”) volume held steady, and USPS package deliveries increased during the same time period, the first class mail decline is ominous because first class “pays the bills,” McCoy reported. McCoy has the unenviable job of holding public hearings across the country in towns and cities — like Tucson — that are slated to lose their mail processing facilities and the accompanying good-paying postal jobs. As more than 500 Tucsonans listened to McCoy’s presentation and waited to voice their opinions at the open mike, protesters from Jobs with Justice, Occupy Tucson, and the local postal workers’ union chanted, waived signs and signed petitions outside. According to McCoy, the postal service is in such dire financial straits that it needs a “$10 billion solution” to keep going. Baring an unforeseen miracle, plant closures, lay-offs and service changes in cities such as Tucson are inevitable. The postal service currently has nearly 500 mail processing centers across the country; this level of capacity has been necessary to keep the gold standard of 24-hour delivery for local first class mail — the financial mainstay of the postal service. USPS proposes to cut the number of facilities from 487 to 252 and reduce the workforce through lay-offs and attrition; the Tucson mail processing plant is one that could be closed. This dramatic reduction in capacity would result in trucking local mail to regional processing centers and trucking it back for distribution. Of course, transporting mail between cities for processing will mean the ” disappearance of 24-hour local mail delivery for most Americans, including Tucsonans, whose mail would be shipped to Phoenix for processing and back to Tucson for delivery. Under the USPS plan for “radical network realignment” the new standard for first class local mail delivery will be two to three days. McCoy told skeptical Tucsonans that reducing the number of underutilized processing plants and, thus, allowing the remaining facilities to operate 20 hours per day, will make the postal service more competitive. Snail mail is already losing ground to its electronic competition because of its relative “speed”; it is not clear how doubling or tripling the turnaround time for first class mail will make the USPS more competitive in the Internet age. The future cost of fuel to transport thousands of pieces of mail from cities of origin to regional processing centers and back again is a huge unknown. Several local Democratic Party politicians attended the public hearing in support of Tucson’s postal workers, including Congressman Raul Grijalva and newly elected Mayor Jonathan Rothschild, who received enthusiastic applause from attendees. It is unclear exactly how many jobs would be lost in Tucson if the mail processing center closes. According to the Arizona Daily Star, 147 postal jobs would be eliminated , but the direct impact to the local economy would be in the neighborhood of 288 jobs; in the pre-event publicity, protest organizers — including union leaders — estimated the local job loss to be closer to 400. Nationwide, the plant closures would result in loss of 35,000 postal worker jobs. During the two-hour public comment period, Grijalva said that there are other strategies that the USPS could use to improve its financial state, instead of resorting to plant closures, lay-offs and reductions in service. Grijalva suggested that the 2006 Congressional mandate requiring the USPS to prepay retirement funds be changed and that the postal service seek more competitive practices. Thanks to the Postal Accountability and Enhancement Act of 2006, the USPS is required to pre-pay billions of dollars per year into its employee retirement fund. In June 2011, the postal service temporarily stopped those payments, but this had no impact on employees’ retirement because the postal service had a $6.9 billion surplus in the Federal Employee Retirement System. That’s right. According to the Washington Post, the postal service lost $5.1 billion in the same time period that it a $6.9 billion surplus in its retirement fund. Where does the postal service go from here? For the next few months, McCoy and his colleagues will continue to make their case from city to city –extolling the virtues of plant consolidations and bearing the insults of angry residents who will lose their jobs and/or see reductions in services. The stated goal is to reduce mail processing payroll by 20 percent , according to Postmaster General Patrick Donahoe. Pamela Powers Hannley is a Tucson-based writer and political activist. If you would like to contribute as a citizen journalist to The Huffington Post’s coverage of American political life, please contact us at www.offthebus.org .

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75 Years Later: Remembering The Flint Sit-Down Strike

December 30, 2011

Autoworkers occupied a factory in Flint, Mich., 75 years ago Friday, launching a struggle that would involve tens of thousands of workers and bring the United Auto Workers into the national spotlight. The Flint Sit-Down Strike, as it is now known, lasted 44 days. The strike marked the first victory of the UAW, which had formed just a year before in 1935. Although there had been prior strikes at other auto plants, Flint represented a new milestone for the union movement. The strike targeted two critical plants, Fisher 1 and 2. Both belonged to General Motors, the biggest of the big three auto manufacturers in the United States. UAW activists realized the strike had the potential to paralyze the auto manufacturer and give them a platform to organize on a national level. Mike Kerwin is a labor activist and a retired member of UAW Local 174. He joined the union in 1950 and remembers hearing about the Flint strike as a child. He told HuffPost that the Flint strike holds an immensely significant place in labor history. “It broke open the whole question of whether the big shots in the auto industry would recognize industrial unions,” he said. “That was big in those days because until then all of the efforts had been to establish craft unions and most of them had been defeated.” The strike led to the union’s formal recognition by General Motors as the sole collective bargaining agent for its employees, an arrangement that would eventually lead to better wages and working conditions. Before the strike, Kerwin said, prospects for the average autoworker were pretty bleak. “There was the uncertainty of the Depression. There was the uncertainty of the threat of management firing you if they knew you were going to be a union activist. There was the speed-up — that was horrendous, that you had to do more and more work for the same amount of pay.” Flint’s strikers were building on a tradition of labor activism in the auto plants. A sit-down strike at the Kelsey-Hayes wheel parts plant in Detroit foreshadowed the events in Flint, explained Jim Rehberg, another member of Local 174 and a volunteer with the Wobbly Solidarity Kitchen , a local group that provides meals in support of labor struggles and other causes. “Although Flint was the first major sit-down, it was preceded by a sit-down in the Detroit area UAW Local 174,” said Rehberg. “But they had to hurry up and finish that one so they could get to Flint for the major sit-down that had been planned.” Flint changed things. Within less than a month, 135,000 workers in 35 cities across the country struck at General Motors . According to Rehberg, the sit-down tactic caught the imagination of working people across the nation. “It wasn’t just the UAW, but it seemed for working people in general it was like a snowball going down a hill,” he said. “All kinds of groups of people were trying to imitate what the auto workers were doing to get a union, to get some rights, to get a voice on the job.” According to William LeFevre, archivist at Wayne State’s Walter Reuther Labor Library, the Flint strike involved less bloodshed then similar strikes had in the past. LeFevre said President Franklin D. Roosevelt and Michigan Gov. Frank Murphy (D) sympathized with the strikers’ demand for union recognition and added that the union had prepared well for the struggle. “They had stockpiled food and they had stockpiled, for the lack of a better term, weapons — door hinges you could throw down on the police,” he said. “They were up on higher floors of the plant, and they had the support of a lot of people in the community in Flint.” Although much has changed since the 1930s, LeFevre sees similarities between the Flint strikers and today’s Occupy Wall Street movement. He said that then, just as now, the public felt anxiety about a rough economic climate. “The fact that there’s a good number of the citizens in the United States that see the inequality in wages and benefits and the ability to simply get work — I think that the fact that our citizens see that inequality now kind of harkens back to why they fought in 1937 during the sit-down strike,” LeFevre said. Kerwin agrees that there are parallels between the two struggles, but differences as well. “This was a job action,” he said. “This was an organized movement. It had leadership in the plants and outside the plant. It had definite goals, as contrasted to the Occupy movement.” Although Kerwin cautions against drawing too close a comparison, he is quick not to write off the Occupy protesters. Flint has its own chapter , which is training local activists and coordinating with efforts of Occupy Detroit and other Michigan groups. The new activists are dealing with a changed world, Kerwin said, and their actions offer lessons to for everyone, even those who came before them.

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Could Housing Market Rejoin The Living In 2012?

December 30, 2011

Just as housing was the first bubble to burst, sinking the American economy into crisis, a revived housing market could force some life back into the listless economy. The only questions are if and when the market will improve. Because it certainly didn’t this year. Housing prices hit a low in 2011 not seen since 2002, losing an average of nearly one-third of their 2006 peak value and creating a “double dip” decline, according to the S&P/Case-Shiller National Price Index. As a result, nearly one-quarter of all homeowners are underwater, owing an average of $75,000 more on their mortgage than the home is worth, according to research firm CoreLogic. But one leading real estate analyst thinks 2012 will be better. Tom Lawler, an independent consultant who retired from Fannie Mae in 2006 after 22 years at the mortgage giant — and after predicting the impending end of the housing bubble at the height of the boom — sees potential in the continued dearth of newly built homes, a slowly rebounding job market and a population in need of housing. Lawler is not alone in his optimism. Stocks of homebuilders are trading 30 percent higher since the end of the third quarter and large hedge funds like Blackstone Group are making housing-related investments, reports the Wall Street Journal . Earlier this month, Goldman Sachs stated that “the housing-price bottom is probably in sight,” adding that although home prices could decline in 2012, there should be a 30 percent gain over the next decade. The newly bullish real estate market and analysts like Lawler anticipate increased housing demand in 2012. Specifically, Lawler predicts a rebound in headship rates, defined as the number of people who qualify as the head of a household — which matters to housing economists because each head of household represents a home. In the first half of the decade, roughly 1.3 million new households formed each year , according to Harvard University’s Joint Center for Housing Studies. Since 2005, that number has dropped to less than a million per year. Some of the decrease is due to declining immigration. Another chunk can be blamed on the hesitance of 20- and 30-something Americans to become heads of household. While economists like Freddie Mac’s Frank Northcut have argued that the downward trend in household growth will stifle the housing market in 2012, Lawler believes it represents an opportunity. “The job market has been terrible, and it hit younger people very hard,” he said. “As a result, we’ve seen more young people staying in school, or moving home with their parents, or sharing a place with roommates. But those aren’t permanent situations. Instead, it suggests an emerging, pent-up demand because they are going to ultimately form their own households.” The Joint Center for Housing Studies seems to agree, as the group projects total household growth at about 12.5 to 14.8 million over the decade. When Americans do go looking for housing, the market will be helped by the fact that relatively few new homes are currently under construction, Lawler notes. For 16 consecutive years — 1992 to 2007 — at least a million new single-family homes were built every year , according to the National Association of Home Builders. By 2010, that number had dropped to almost 471,000, and early estimates predict that it fell even further this year. As long as new construction remains low, people will turn to the stock of existing homes, purchasing those now sitting empty and thereby helping to clear the market. In other good news for the housing market, the number of job layoffs has been steadily declining, as reported earlier this week by the Labor Department, while the unemployment rate dropped from 9 percent in October to 8.6 percent in November. Most analysts agree that the job and housing markets are linked. As more people find work, they are better able to qualify for a mortgage and more likely to buy a home. Lawler cautions that there is one large unknown complicating predictions: the “shadow inventory.” That is, homes that are not yet for sale but likely will come up for sale because the current homeowner is seriously behind on the mortgage payments. “In a normal world, which we haven’t been in for so long, those loans would have been dealt with one way or another,” Lawler said. “But in our abnormal world, it’s all unknown.” He added, “If you didn’t know about that shadow inventory, you’d say, ‘My god, it’s a slam dunk that 2012 looks better.’”

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Tribune Bankruptcy Case Like To Extend

December 30, 2011

WILMINGTON, Del. (AP) — Media company Tribune Co. likely won’t emerge from bankruptcy protection until at least this summer. Tribune, which has been under Chapter 11 protection for three years, had hoped to end the case this year. But in October, U.S. Bankruptcy Judge Kevin Carey in Wilmington, Del., rejected the company’s plan to reorganize its finances, along with a rival plan from dissident creditors. Tribune has since submitted a revised plan. Approval of the plan is the key step in ending the case. Carey said Thursday that a confirmation hearing on that likely won’t take place until May. It could take weeks or months longer to get a ruling. Tribune owns the Chicago Tribune, the Los Angeles Times, other major newspapers and more than 20 television and radio stations, including WGN in Chicago. Tribune Co. declined comment Friday.

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Chris DeVito: Taking the Global Economy Hostage

December 30, 2011

If there is one thing that the Iranian regime is adept at it is hostage taking. Since the seizure of the U.S. embassy in 1979, Iran has used the tactic as a staple of its diplomatic toolkit. We all remember the ordeal faced by the American hikers Sarah Shourd, Shane Bauer, and Josh Fattal, whose detention and trial were based on little other than their U.S. citizenship. At this very moment Amir Mirzaei Hekmati, an Arizona native, is being put on trial in Iran for basically the same reason. These are simply two recent examples among dozens, and while each of these situations are disturbing, they pale in comparison to Iran’s latest hostage target: the global economy. No, I am not being hyperbolic. It is clear that by threatening to close the Strait of Hormuz Iran is attempting to force the United States and the European Union to step back from implementing new sanctions on the regime. Yet it is important to realize that any effort to close the Strait wouldn’t just impact America and our allies; it would have truly global implications. This is because nearly a fifth of the global oil supply, approximately 17 million barrels of oil, travels through the Strait of Hormuz every single day. This is oil coming from the world’s most important producing nations: Iraq, Kuwait, Saudi Arabia, the United Arab Emirates, and Iran itself. Much of this oil is bound for Asian markets, with major consumers in Japan, South Korea, China, and the rest of the Pacific Rim. By cutting off, or more likely impeding, traffic through the Strait, Iran would singlehandedly impose prolonged shipping times, and costs, for oil delivery. The inevitable result? Skyrocketing oil prices at a moment when the global economy can ill afford it. Iran might be bluffing, but the tension between Washington and Tehran is as high as it has been in decades, and an unwanted escalation is a distinct possibility. With Iran war-gaming a simulated Strait closing, and the U.S. Navy’s Fifth Fleet offering stark warnings, the current situation is reminiscent of the last time that Iran attempted to impede transit through the narrow Strait; the so-called “Tanker War” of the mid 1980s. While the “Tanker War” was initially an offshoot of the Iran-Iraq war, with both countries targeting each others shipping vessels, tankers from other countries were attacked as well. In all, Iran struck 190 vessels from 31 different countries, in what amounted to a broad based assault on international commerce that provoked U.S. intervention, and led to several violent exchanges between the two countries. This experience offers insight into how the current situation could play out. The scary thing is that tensions between the U.S. and Iran are even higher today, and the costs of confrontation could be greater. Any effort by Iran to close the Strait now would also affect countries around the world. With economies across Asia consuming more petroleum than ever, even a minor supply shock could send oil markets reeling. While it is impossible to predict a precise price increase per barrel, it is important to understand that in a tight oil market even slight supply disruptions can have enormous impact. An American response to an attempted blockade would be inevitable. With the U.S. Fifth Fleet being located near by in Manama, Bahrain, the U.S. would be able to intercede and ensure the continued passage of tankers through the Strait. The potential silver lining is that such an affront by Iran would draw the ire of China, which has protected the Iranians diplomatically in a range of international institutions. In the end China’s real interest is in “energy security” — something that in this instance translates to the unimpeded passage of commerce through the Strait. Could this become the event that opens China’s eyes to the threat that Iran’s erratic behavior poses to its own interests? When it comes to Iran’s other major international backer, Russia, things don’t look as hopeful. Moscow would reap a windfall profit from such an event with higher prices and uninhibited exports. But in the long run it is important that Russia realize that a healthy global economy is crucial to its own commodity export based growth strategy. Surging global oil prices could well tip a teetering European Union over the edge, and ultimately weaken demand in the E.U., the final destination for 80 percent of Russian oil exports . The bottom line is this; even if this situation settles down, Iran has once again revealed itself as a uniquely reckless, confrontational, and unpredictable threat. Tehran already consistently violates international norms and its legal obligations (just look at their human rights record and continued pursuit of nuclear weapons), so perhaps we shouldn’t be surprised that it might be willing to attack the lifeblood of the global economy. In a situation where every nation is a hostage, we need a unified international front to counter Iran’s efforts at economic blackmail.

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Getting A Job Not Always The Last Hurdle For Long-Term Jobless

December 30, 2011

For the long-term unemployed, getting a job isn’t always the end of the story. Randy Howland spent most of this past year working at a $10-an-hour customer service job. He used to make six figures. With this job, he was settling, just so he could have the satisfaction of working. It was essentially a call-center job.

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Unhappy New Year For Workers Facing Job Loss

December 30, 2011

Around 800 nursing home workers in Connecticut could be out of a job when the New Year’s ball drops this weekend, as nursing home company HealthBridge Management and the workers’ union have stalled in their contract negotiations. Around 90 workers at a HealthBridge location in Milford, Conn., have been locked out since Dec. 13, when the company brought in replacement workers after failed contract talks. According to officials with the Service Employees International Union (SEIU), HealthBridge has indicated that union workers could be locked out at five other facilities at the end of 2011, since the company set a Jan. 1 deadline for the negotiations. Several of the sticking points aren’t surprising. As is often the case these days, the workers are being asked to pay significantly more for their health care coverage. According to SEIU local 1199 vice president Suzanne Clark, the certified nursing assistants, dieticians and other nursing home workers would have to chip in as much as $600 a month for family coverage under the company’s proposals. But workers are just as concerned with another, seemingly minor stipulation. According to Clark, HealthBridge has asked that workers give up their paid half-hour lunch. Though it may not sound like much, if workers don’t also get more hours to make up for that loss, it would effectively translate into a drop of more than six percent in pay, Clark notes. Furthermore, workers are worried the loss of a half-hour each day could push some of them below the full-time threshold, reducing their available benefits like health care and vacation time. “It’s a significant change from what our current contract is,” Clark says. “Everyone is in disbelief that they would do that at this time of year.” A HealthBridge spokesperson did not respond to a request for comment. The negotiations have been contentious enough to draw the attention of Democratic Gov. Dannel P. Malloy. A few days before Christmas, Malloy urged the two sides to “redouble their efforts” and reach a fair settlement before more workers are locked out. The governor appeared to pressure HealthBridge in his statement , noting that the SEIU local has “reached agreements with owners representing more than 40 nursing homes, so it seems that a fair, reasonable contract pattern has been established that works for management and labor.” The Westport News of Connecticut has reported that management offered the workers a 12 percent raise over the course of three years. But according to Clark, the workers are asking merely for a six percent raise over four years, coupled with more modest health care premiums than the ones on the table. Clark also says the company’s proposals would allow it to use more temporary nursing home workers, potentially cutting into the hours of full-timers. Michelle Baricko is a certified nursing assistant who’s been locked out at HealthBridge’s West River Health Care Center for more than two weeks. Supporting three sons as she goes through a divorce, Baricko says the new health care costs would amount to about half of her mortgage — “a big deal to a lot of us,” she says. The 42-year-old has been working at the same nursing home for 19 years, the last 12 in the rehabilitation department. Now out of a job, Baricko and her co-workers have been picketing outside the nursing home, and this morning they headed to a state hearing on their application for unemployment insurance. “We got our last check last Thursday, a few days before Christmas, and it wasn’t a full check,” Baricko says. “Compared to other Christmases, it was very lean.”

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Jeanne Kelly: It’s the Start of Your Journey Toward Better Credit

December 30, 2011

I love the new year because I love new beginnings: The slate is clean, the path is untouched, the opportunities seem endless! The new year is the start of a year long journey and you’re at the part of the trip where you decide where you want to go, how you’ll get there, and what you’ll take with you. A little planning before any trip will ensure that you arrive at your destination as quickly as possible. If part of your journey this year includes traveling toward better credit, take a moment now to decide how to make it a successful trip for you. Where do you want to go? Deciding to achieve “better credit” is vague. You need to know exactly what your credit score is right now and what you want it to be. Make sure your goal is achievable this year. If your goal seems too daunting, break it up into smaller quarterly goals. It also helps to remember why you’re doing it — perhaps so you can qualify for a mortgage or renegotiate a loan at a lower rate or be able to get your spending under control or allow you to save for the future. How will you get there? There are a number of paths you can take on your journey toward better credit. Some steps will be easier to do on your own — like cutting up your credit cards, setting up a budget, subscribing to http://MYFICO.com to monitor your credit, and working with a credit consultant. Some of the steps will be harder to do — like cutting back on impulse spending or admitting to a friend or relative that you’d like them to hold you accountable as you manage your debt. The longer your journey from your current score to your preferred score, the harder and more drastic the route will be. (But as you already know, anything worth doing is worth the hard work!) What will you take with you? This is probably most overlooked part of “better credit trip planning.” When you decide what to take with you on your trip this year, you need to consider two things: What habits do you want to adopt or preserve to help you achieve better credit? (Here are my suggestions: Check your credit score regularly; dispute errors on your credit report; set a budget and stick to it). What habits do you want to leave behind? (Here are my suggestions: Stop paying your bills late; avoid impulse buying; don’t use your credit cards to make certain purchases). You’re just about ready to start your journey toward better credit … But here is one last piece of trip-planning encouragement I’d like to share: It’s so easy to be weighed down by the burden of anxiety and (even guilt) when reflecting on how you got to where you are today. Maybe it was bad habits or maybe it was events beyond your control that led to a bad credit score. Your past doesn’t have to define your future! Don’t let those burdens weigh you down! You’re at the beginning of a journey toward better credit and your journey will be far more successful when you leave behind the unnecessary baggage. The year is still fresh and clean and ready for you to make your mark! Take those first few exciting steps toward better credit in 2012. I’ll be with you in the journey. Feel free to email me your credit goals for 2012 Jeanne.Kelly@TheCreditOwl.com

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Hackers Publish 75,000 Credit Card Numbers

December 30, 2011

By Jim Finkle Boston (Reuters) – Hackers affiliated with the Anonymous group published hundreds of thousands of email addresses belonging to subscribers of private intelligence analysis firm Strategic Forecasting Inc along with thousands of customer credit card numbers. The lists, which were published on the Internet late on Thursday, included information on people including former U.S. Vice President Dan Quayle, former Secretary of State Henry Kissinger and former CIA Director Jim Woolsey. They could not be reached for comment. The lists included information on large numbers of people working for big corporations, the U.S. military and major defense contractors – which attackers could potentially use to target them with virus-tainted emails in an approach known as “spear phishing.” The Antisec faction of Anonymous disclosed last weekend that it had hacked into the firm, which is widely known as Stratfor and is dubbed a “shadow CIA” because it gathers non-classified intelligence on international crises. The hackers had promised that the release of the stolen data would cause “mayhem.” A spokesperson for the group said via Twitter that yet-to-be-published emails from the firm would show “Stratfor is not the ‘harmless company’ it tries to paint itself as.” Antisec has not disclosed when it will release those emails, but security analysts said they could contain information that could be embarrassing for the U.S. government. “Those emails are going to be dynamite and may provide a lot of useful information to adversaries of the U.S. government,” said Jeffrey Carr, chief executive of Taia Global Inc and author of the book “Inside Cyber Warfare: Mapping the Cyber Underworld.” Stratfor issued a statement on Friday confirming that the published email addresses had been stolen from the company’s database, saying it was helping law enforcement probe the matter and conducting its own investigation. “At Stratfor, we try to foster a culture of scrutiny and analysis, and we want to assure our customers and friends that we will apply the same rigorous standards in carrying out our internal review,” the statement said. “There are thousands of email addresses here that could be used for very targeted spear phishing attacks that could compromise national security,” said John Bumgarner, chief technology officer of the U.S. Cyber Consequences Unit, a non-profit group that studies cyber threats. NO THREAT SO FAR – PENTAGON The Pentagon said it saw no threat so far. “We are not aware of any compromise to the DOD information grid,” said Lieutenant Colonel Jim Gregory, a spokesman for the Department of Defense. In a posting on the data-sharing website pastebin.com, the hackers said the list included information from about 75,000 customers of Stratfor and about 860,000 people who had registered to use its site. It said that included some 50,000 email addresses belonging to the U.S. government’s .gov and .mil domains. The list also included addresses at contractors including BAE Systems Plc, Boeing Co, Lockheed Martin Corp and several U.S. government-funded labs that conduct classified research in Oak Ridge, Tennessee; Idaho Falls, Idaho; and Sandia and Los Alamos, New Mexico. Corporations on the list included Bank of America, Exxon Mobil Corp, Goldman Sachs & Co and Thomson Reuters. The entries included scrambled versions of passwords. Some of them can be unscrambled using databases known as rainbow tables that are available for download over the Internet, according to Bumgarner. He said he randomly picked six people on the list affiliated with U.S. military and intelligence agencies to see if he could crack their passwords. He said he was able to break four of them, each in about a second, using one rainbow table. (Additional reporting by Tabassum Zakaria and Mark Hosenball in Washington; Editing by Vicki Allen and Peter Cooney)

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Don McNay: The Anthem Robo Call: The First Place Health Care Needs Reforming

December 30, 2011

-I hope this letter finds it way to you. -R. Dean Taylor (Indiana Wants Me ) I had a health scare over the past several weeks, which included a couple of trips to the emergency room and finally winding up in the hospital for surgery. I’m starting to feel better but the biggest impediment is Anthem, my health insurance company. I don’t know if they are going to jerk me around on payments as the bills have not come in yet. What I can’t handle is the non-stop robo calls from their office. You would think someone is running for Sheriff or Congress. The calls come non-stop. And I can’t figure out how to stop them. I’ve been home ill, sleeping at odd hours, and the calls manage to find me the second I fall asleep. I’ve tried several times to respond but there is never a human on the other end. They give me a number to call but when you get there, it continues with a series of questions and prompts about my hospital stay. I try like crazy to talk to a human but have never figured out a way to make that happen. When I go to an alternative number, all I get is more prompts. If I ever speak to a human, my first request is LEAVE ME ALONE. I am trying to get well and talking to a health insurance company is not going to help. Secondly, I signed up every “do not call” list that my state and the United States have to offer. I don’t want human beings to call me, let alone a robot. I thought it was illegal for companies to harass me day and night but Anthem either found a loophole or is just ignoring the law. I suspect if you are huge, billion-dollar health insurance carrier, no one is going to rap your knuckles if you are out doing data mining. This brings me to a central problem with the entire health insurance system. Human beings, who may possibly care about other human beings, are in no part of the process. Since Anthem didn’t make it possible for its supposedly ill clients to talk to another person, it is counting on its computers and data gatherers to “let them know what people think.” If I ever speak to an actual human being, they are definitely going to hear what I think. And probably not like what I am hearing. If Anthem had bothered to send me an old-fashioned letter, or better yet, a get well card, I might have told them what they wanted to know. Instead I wonder if they are trying to drum up more business, by waking me up so much that I wind up back in the hospital. I can’t be the only person they are robo calling. I just can’t figure out how it is legal for them to do so. Even more so, I can’t figure out how it makes good business sense. If these are the “great minds” running our health insurance companies I can see why so many people favor a single payor system.

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Our Favorite Entrepreneurs Of 2011 (PHOTOS)

December 30, 2011

We’re all familiar with the epic success stories behind some of the world’s fastest growing startups like Groupon, but once upon a time, every successful entrepreneur was simply an average Joe or Jane with a budding idea. Young or old, the entrepreneurial bug is alive and well inside some of our favorite entrepreneurs of the year. From bootstrappers to billionaires, this list of business owners won’t cease to inspire you with their innovative ideas and unwavering determination to make their business dreams a reality.

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John Fox: 2012: Your Marketing Department’s New Look

December 30, 2011

No doubt, 2011 was the tipping point for the marketing department. Marketing automation, content marketing and analytics entered boardroom conversations. Even at the smallest of companies (for which I consult), marketing directors and channel managers find themselves in the spotlight for the very first time. So how should the CMO, marketing director and CEO respond? I think that’s the real question McKinsey & Co. attempted to answer in their July 2011 report, ” We’re all marketers now .” (FYI: this report was the #3 most read in 2011, falling in just behind articles on strategy and brainstorming. And in typical McKinsey fashion, their research involved more than 20,000 customers… talk about comprehensive research!) Here are the highlights (you may also grab my personal, marked-up version of the report here ): “Customers no longer separate marketing from the product — it is the product.” “In the era of engagement, marketing is the company.” Customers are on the hunt for a solution waaaay before you can even think about reaching out to them in traditional direct/push marketing fashion. Translation: the conversation has morphed from “a monologue to a dialogue.” “Customers thirst for objective advice” and in response, “some have built publishing divisions to feed the ever-increasing demand for content required by company.” (aka, content marketing) “The marketing organization itself needs to become the customer-engagement engine, responsible for establishing priorities and stimulating dialogue throughout the enterprise.” The firm will “require a new kind of marketing organization… that orchestrates the delivery of the end-to-end customer experience.” What’s more, “‘Marketing is going to become a much more science-driven activity,’ says Duncan Watts of Yahoo! Research.” “A premium will be placed on problem-solving and strategic-marketing skills.” How will you respond? What are your plans for your marketing department in 2012? © 2011 John M. Fox. All Rights Reserved. John Fox is the Founder and President of Venture Marketing, a B2B consulting firm that helps business owners get their sales and marketing un-stuck. For more, follow John on LinkedIn .

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Verizon Scraps Fee After Customer Uproar

December 30, 2011

Well, isn’t that convenient! After public outcry, Verizon has decided that it will not instate a $2 “convenience fee” for customers paying monthly bills with a credit or debit card via the Internet or telephone. A press release on the Verizon website announced the carrier’s change of heart and credited “customer feedback about the plan” for its decision: Verizon Wireless has decided it will not institute the fee for online or telephone single payments that was announced earlier this week. The company made the decision in response to customer feedback about the plan, which was designed to improve the efficiency of those transactions. The company continues to encourage customers to take advantage of the numerous simple and convenient payment methods it provides. It’s a quick turnaround for Verizon, which just announced the $2 “convenience fee” on its website on December 29; within 24 hours, online petitions had begun to circulate , commenters condemning Verizon’s corporate greed had made their voice heard on websites and message boards across the Internet, and even the FCC announced plans to investigate the charge. A day after introducing the so-called convenience fee, Verizon caved to public and governmental pressure and scrapped the charge. The $2 fee, which was scheduled to go into effect in the middle of January 2012, would have applied to all customers paying by credit or debit card on a per-statement basis, and would have helped to defray the cost that credit card companies charged Verizon to process its customers’ payments. Though the carrier offered seven payment alternatives to avoid the fee , including enrolling in an AutoPay program or paying via check or gift card or in person at Verizon stores, consumer outrage and mockery was so swift and vocal that Verizon appears to have been left no choice but to change its plans. “At Verizon,” said Verizon President and CEO Dan Mead as part of the press release announcing the fee cancellation, “we take great care to listen to our customers. Based on their input, we believe the best path forward is to encourage customers to take advantage of the best and most efficient options, eliminating the need to institute the fee at this time.” Can’t get enough of these embarrassing tech fails? Check out our slideshow of the 13 biggest technology oopsies of the year.

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Rev. G. Jude Geiger: Occupy Heaven

December 30, 2011

From Black Friday to Christmas we’ve heard news stories of shopping that have ranged from violent to charitable. From bad to worse, the notorious pepper-spraying officer gave way to the pepper-spraying Walmart shopper. The season of consumer coverage culminated with warm stories of anonymous donors paying off lay-away bills at K-Mart. As good as the story ends, I’m left disappointed that one of the holiest seasons of the Christian calendar can be so overwhelmed by American consumerism. A now secular habit of gift-giving, rooted in the narrative tradition of the three magi, seems to subsume the message of the season: that a child was born and the world will never be the same. In my Christian Universalist tradition, that child, Jesus, reminds us that God is centered in love. That God’s love is unconditional. And all are saved. That last precept has caused controversy throughout Christian circles for at least the past 200 years. It would be heard as either a joyous message or a dangerous heretical teaching. This teaching continues to remain alive, if not thriving, because many of us simply can’t imagine our all-loving God condemning anyone to ever-lasting misery. We can imagine humans doing that to each other, but we just can’t lay that sin upon God. I do believe in Hell. I just believe that it’s in our lived experience and crafted by human hands. The news story of a Walmart shopper who was desperate enough to pepper spray fellow shoppers is a clear illustration of one kind of Hell. Pain and misery, both physical and emotional, is suffered because of a perceived lack. Life isn’t full enough without the plastic-wrapped widget. It’s almost as if the latest item on sale has become the biblical Golden Calf, the idol we build when we think God is absent. “If only we can obtain it, all will be well.” Whether you believe in an afterlife or not though, religious values can still be of help. If Hell is caused with the belief that we are fundamentally lacking something, then Heaven is found when we recognize the abundance before us that we have been given regardless of our own merit. (If you maintain a view that you’ve earned all that you have then consider your birth — the gift of life was freely given through no action of your own.) If it doesn’t take too much imagination to conceive of a Hell of our own making, then maybe we can imagine a Heaven that’s crafted by human hands as well. What if we focus on the belief that there is an abundance in life, that there is enough of the pie to go around so that all can have a slice? If it’s too hard or too fanciful for you to imagine this to be true for the whole world, then try to imagine it for just the country you live in, or just your home town. We know that the clutch and grab of the desperate shopper, the icon of consumerism, isn’t really working for any of us. We can choose to put that same energy into helping those around us. The gift-giving tradition was rooted in a sense of generosity, and it has shifted into a competing sense of woeful obligation and a child-like desire for more. Let’s move away from giving random widgets and generic gift cards, and move toward gifts that build the foundations of a Heaven in this life. If the gifts are ostensibly in the name of the Christian tradition, then gifts of service, of compassion, of relationship-building would certainly be more in line with the teachings of the man who was born in this season. If we were to occupy Heaven in our own lifetimes, the practices would reflect some of the calls for justice we hear in the broader Occupy Wall Street movement. Some of the theology is the same. There is enough to go around. We are first citizens of this world, not consumers. We can choose to use our power or privilege or spirit to care for our neighbor. In the coming year, let’s all seek to don the mantle of citizen rather than consumer and build a heaven on earth. We can allow cynicism to crush our efforts before we start, or we can choose to live a more gracious life.

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S&P Flat For The Year

December 30, 2011

The broad S&P 500 endured wild daily swings, but a year of drama left the index on Friday pretty much where it started. Not since 1970 has the index ended a year as close to unchanged as it did this year. For Friday, the Dow Jones industrial average .DJI was down 70.99 points, or 0.58 percent, at 12,216.05, based on the latest available data. The Standard & Poor’s 500 Index .SPX was down 5.49 points, or 0.43 percent, at 1,257.53. The Nasdaq Composite Index .IXIC was down 8.59 points, or 0.33 percent, at 2,605.15. (Reporting By Caroline Valetkevitch; Editing by Kenneth Barry)

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David Miles: Europe’s Dance of Death

December 30, 2011

“It’s a Ponzi scheme, it’s a fraud, it’s a sham,” observed Jim Rogers this week when interviewed on the BBC World Service. One of the world’s most successful investors was, however, not giving his verdict on the dastardly deeds which have confined Bernard Madoff to prison for 150 years, but rather the current strategy of the European Central Bank (ECB) and European leaders in trying to solve the euro zone sovereign debt crisis. For Rogers, their approach is based more on Peter Pan than sound monetary policy. Ever since euro zone banks snapped up almost half a trillion euros in very low interest three-year loans offered by the ECB last week, the question was to what extent these banks would do the sovereigns a favour, as Nicholas Sarkozy hoped, by buying the bonds of euro zone governments. The answer, based on the results of Italy’s latest bond auction on Thursday, is not encouraging. Investors are simply not prepared to lend money to Italy on a long-term basis without a cripplingly high premium, which at 6.98% is barely below the 7% level that forced Ireland, Greece and Portugal to request international bailouts. If investors in government bonds seem a little nervous at the prospect of buying what until recently were seen as virtually risk-free financial assets, the reason for this reticence, as Jim Rogers observed, is not hard to discern. Money, as Harvard historian Niall Ferguson notes, is about trust and over the last two years the euro zone’s political leaders have been extraordinarily successful at blowing every opportunity to solve the debt crisis and restore trust in the single currency project. When ordinary citizens can borrow money at less interest than the Italian state, then it’s clear just how serious this crisis has become. For Anthony Crescenzi, executive vice president at Pimco, the largest bond fund in the world, European sovereign debt is “toxic” with about the same status that subprime mortgage assets have had ever since the financial crisis of 2008. What got rather less attention than the ECB handing out money last week was the news that a large number of euro zone banks actually deposited €452 billion ($589 billion) with the Frankfurt=based central bank at a paltry rate of interest, and for far less than they could earn making loans to other financial institutions. The reason? These banks are simply too nervous to lend at more profitable rates because they fear not being repaid. Across the euro zone there are zombie banks that have effectively failed and are only being kept alive with funds from the ECB. In this environment even healthy banks would sooner make next to nothing depositing their cash at the ECB, rather than risk lending to a competitor that might run into trouble as the Franco-Belgian bank Dexia did recently. Things wouldn’t be so bad if the banks and bond investors had confidence that euro zone governments would step in to support their banking systems the way the UK did in 2008. But given the parlous state of government finances in most euro zone countries, underlined by the recent credit downgrade warnings , the capacity of sovereign states to ride to the rescue of their wounded banks is now heavily circumscribed. If the markets were convinced that a credible government treasury like that of Germany was standing full square behind Europe’s monetary union project, confidence could be restored, but every botched EU summit and failed rescue plan shows just how rickety the euro edifice has become. Resolving a systemic banking crisis requires that the politicians involved in finding a solution recognise that the markets do not move at the glacial pace of government. Investors in sovereign bonds will render judgements swiftly and ruthlessly if the measures taken are not seen as credible. Even as the ECB continues to inject money into the crippled banking system, the hope of its policymakers is that some of this liquidity will either find its way into the real economy or at least bring down the borrowing costs for the euro zone’s governments. To paraphrase Jim Rogers , ‘Welcome to Never Never Land’! Far more likely is that this suffocating embrace between indebted euro zone governments and their living dead banks will simply ensure that when the day of reckoning comes, when the bond markets finally say “No more money,” the pain will be that much greater.

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10 Most Embarrassing Quotes From The Letter That Led To A Huge CEO’s Resignation

December 30, 2011

For Mark Hurd , the former CEO of Hewlett-Packard, life surely just got a lot more embarrassing. The Supreme Court of Delaware ruled Wednesday that a letter from celebrity attorney Gloria Allred detailing Hurd’s alleged sexual advances towards her client, Jodie Fisher, a former HP contract employee, could be made public. The letter spawned an internal investigation at HP last year, ultimately leading to Hurd’s resignation in August 2010. The letter alleges that Hurd made a number of unwanted sexual advances towards Fisher. In addition, it features some bizarre anecdotes including an incident where Hurd allegedly took Fisher to an ATM and attempted to impress her by showing his $1 million balance. He also allegedly told Fisher that the singer Sheryl Crow was crazy about him. Hurd, now the CEO of Oracle, had tried to keep the letter private, saying that he was protected by California privacy laws. But the court ultimately found that though the letter contained “mildly embarrassing” information , it isn’t protected in the same way as financial information or trade secrets. The internal investigation that the letter sparked didn’t find evidence of sexual harassment, but it did uncover inaccurate expense reports , according to Reuters. The question of whether the letter should be released has been the subject of much controversy, particularly because Alldred’s client, Jodie Fisher, has said some of it is untrue. The week that he resigned, Hurd settled with Fisher , according to Bloomberg. Here are some of the most embarrassing alleged moments from the letter:

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Mahendra Ramsinghani: 2011 A Year Of Recovery For Venture Capital, But Still A Ways To Go

December 30, 2011

For venture capital, 2011 was a year of recovery. Investors in venture funds (called Limited Partners) wryly pointed out in 2010 that venture capital had not produced returns in the past decade. 2011 may have corrected that, but investors still continue to shy away from VC. But let’s start with the good news first. A Year of IPOs and returns: For most VCs, the big payday is when a company gets acquired or goes public. Of course, going public has its own cachet, not to mention returns. On an average, IPOs generate at least 5X the rate of return as compared to an acquisition. Some worthy tech IPOs of note in 2011 were LinkedIn, Groupon and Zynga. Others included ZipCar (Short term car rentals), RenRen (China’s Facebook), Yandex (Russia’s search engine) Fusion I-O, (Hardware) to name a few. Venture funds that had at least two IPOs include Accel, Andresseen-Horowitz, Benchmark, Greylock, Kleiner Perkins, Sequoia, Technology Crossover Ventures and New Enterprise Associates. Others of note include Foundry Group and Union Square Ventures (Zynga) and Battery (Angie’s List). Indeed, the National Venture Capital Association (NVCA) US VC Index showed one year returns of 26.3% as of Q2 2011. This number will continue to beat other indexes, including S & P 500 in 2012, but will that help VCs? VC asset class gains respect (but no money): Even as venture capital as an asset class recovers from its depths and the ten-year average return moves into the black, investors continue to shun the VCs. The NVCA Cambridge Associates VC Index shows 1.25% return over the past ten years while S & P 500 generated 2.72% for the same period. But on the whole, VC is no more than 4% of any institutional portfolio. The entire asset class attracts merely $20 billion or so each year. In comparison, hedge funds attract trillions, as do treasury bonds. The rationale provided is that it’s a risky asset class, and being tied in the relationship for 10 years is not fun. But risk, as we know it, is not restricted to VC — every asset class in the past 3 years has encountered the black swan and taken a hit. So while the definition of risk has changed, the asset allocation formulas have not changed. In fact, it continues to get worse: CalPERS, the largest investor in venture capital, plans to reduce its allocation down to 1% . In fact, it will be skipping on its commitment to Khosla Ventures, one of the largest venture funds in the valley. The entire industry is down by orders of magnitude. In 2011, 147 venture funds raised $12.2 billion in the first 3 quarters. Ten years ago, at the height of the bubble, over 1100 firms raised $100 billion. And for those raising funds, according to Preqin, a Private Equity research firm, partners spend at least 16 months, if not longer, raising their funds. Done Deals (What’s a few Solyndra’s here and there?) : Some of the largest investments in 2011 were in pharma, social media and energy: Reata Pharmaceuticals raised $300 million – the largest amount as of Q3 2011. Social Media / Local Commerce companies that raised larger rounds include discounted luxury brand e-tail provider, Gilt Groupe ($136 million), event management software company, Cvent ($135 million), short term accommodation rentals facilitator Airbnb ($112 million), Coupons.com ($100 million), Blog hosting platform Tumblr ($84.9 million). Even as the sun may be setting on the energy sector with Solyndra’s debacle, energy was one of the larger sectors that attracted mucho VC dinero. BrightSource ($201 million) HelioVolt ($84.9 million) SoloPower ($78.5 million) and Fulcrum BioEnergy ($75 million) were a few big ones of note in 2011. On the other end of the spectrum, Y Combinator attracted as many as 3,000 applicants – where an average class size is 40 to 60 start-ups – which means a lot of work for Paul Graham. VCs get actively involved on Capitol Hill; No Occupy Tactics yet: For any VC to get involved in legislation is a royal pain in the rear. Most do not know how the elected officials make decisions, why the process is so archaic and how to inject the voice of reason to ensure the outcomes are balanced. Despite this, VCs across the board joined hands to have their say in legislation. The recording industry and movie industry have pushed for Stop Online Piracy Act (SOPA), which targets online traffickers of copyrighted materials. VCs say it is over reaching and will cripple the Internet and is tantamount to censorship. (You can spot an overzealous legislation when the law wants to chase the connectivity providers and not those infringing the copyright,) Similarly, Protect Intellectual Property Act (PIPA) aims to curb IP infringement, VCs and Tech entrepreneurs protest that it will inhibit innovation as the law would go after search engines and web advertising firms. VCs have also voiced their opinions on start-up visa to help restore innovation and entrepreneurship by attracting immigrants. CNET predicts that in 2012, SOPA opponents will go nuclear . Of course, all of these will keep VCs distracted for most part of 2012. A wag of a VC told me over beers that if Donald Trump is elected President in 2012, all of this would go away as he could fire everyone on Capitol Hill. Finally, it seems VCs have lightened up a bit and found a way to express themselves in more entrepreneur-friendly ways. In 2011, Foundry Group debuted “I’m a VC” video . As the story goes, Jason Mendelson was inspired to create the video when a 8 year old and his co-founder (a dog) were expecting $20 million pre-money valuation for their start-up!

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Obama Delays Vital Request

December 30, 2011

HONOLULU — President Barack Obama is delaying his request for another $1.2 trillion increase in the nation’s debt limit at the request of congressional leaders. It’s basically because of a technicality. The White House had been ready to ask for the increase Friday because the government is within $100 billion of exhausting its current borrowing authority. Congress would then have 15 days to reject the request, though Obama would veto any objections in order to ensure that the government does not default on its obligations. But with Congress not due to return to Washington until mid-January, a bipartisan group of lawmakers asked Obama to delay his request so they would be in session during the 15-day period allowed for objections. “The administration is in discussions with leaders in both houses to determine the best timing for submission of certification and any subsequent votes in the two houses,” White House spokesman Josh Earnest said Friday. Kevin Smith, a spokesman for Speaker John Boehner, said the House leadership preferred not having to call members back to Washington early to vote on the increase request, but would have done so if necessary. A senior White House official said Obama will make his request within days. The Treasury Department will use accounting measures to ensure that the nation does not reach its debt limit before the $1.2 trillion increase is finalized, said the official, who requested anonymity because the person lacked authority to speak publically. The debt limit is the amount the government can borrow to finance its operations. It has soared because the government has run record deficits over the past decade. The borrowed money has helped pay for two wars, stimulate the nation’s economy after the worst recession since the Great Depression and keep intact broad tax cuts initiated during the Bush administration. Obama’s request to increase the nation’s borrowing authority would boost the debt limit to a record $16.4 trillion. The president and Congress agreed to raise it to that level in three steps as part of the August deal that was struck hours before a threatened government default. Officials say the $1.2 trillion increase should be enough to allow the government to keep borrowing until the end of 2012, or just after the presidential election. Congress agreed to raise the debt limit by $400 billion in August and by another $500 billion in September. House Republicans voted against the second increase, but failed to block it because the Senate approved it. The increases are scheduled to take effect unless both chambers vote against them. The White House announced the delay in the debt limit request from Hawaii, where the president is on vacation.

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